Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 1349

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 6
Chunk 1349
---
 deferred revenue which represent prepayments from customers. The Company had unearned revenue as follows:

    December 31, 2024  
    December 31, 2023 
  
    Balance at January 1, 
    $1,116  
    $633 
  
    Revenue recognized 
     (3,121) 
     (633)
  
    Amounts collected or invoiced 
     6,428  
     1,116 
  
    Unearned revenue 
    $4,423  
    $1,116 

M.COMMITMENTS AND CONTINGENCIES:

Legal Proceedings

The Company may from time to time become
involved in various legal actions incidental to our business. As of the date of this report, the Company is not involved in any legal
proceedings that it believes could have a material adverse effect on its financial position or results of operations. However, the outcome
of any current or future legal proceeding is inherently difficult to predict and any dispute resolved unfavorably could have a material
adverse effect on the Company’s business, financial position, and operating results.

Lease Agreements - Operating
Leases

On May 31, 2020, the Company renewed
a lease for a 10,500 square foot office space in Quincy, MA. The lease renewed on June 1, 2020 and is for a term of 60 months from the
renewal date. The lease included an escalation clause with annual increases of approximately 2.5% increase per year. The associated lease
right-of-use asset and lease liability is $135 as of December 31, 2024, based on the present value of payments and an incremental
borrowing rate of 2%. As the Company’s lease did not provide an implicit rate, the Company estimated the incremental borrowing
rate based on the credit quality of the Company and by comparing interest rates available in the market for similar borrowings.

On February 1, 2023, the Company entered
into a lease for a 5,600 square foot office space in Tomball, TX. The lease commenced on February 1, 2023 and is for a term of 36 months
from the commencement date. The lease included an escalation clause with annual increases of approximately 2.3% increase per year. The
associated lease right-of-use asset and lease liability is $71 as of December 31, 2024, based on the present value of payments