Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 1100

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 5
Chunk 1100
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 or indirectly from us within the last two years, and include organizations that have bought from other organizations
for which Stran acts as an established sub-contractor. We define transactional customers as customers that place an order with us and
do not have an agreement with us covering ongoing branding requirements. We define program clients as clients that have a contractual
obligation for specific ongoing branding needs. Program offerings include ongoing inventory, use of technology platform, warehousing,
creative services, and additional client support. Those program customers are geared towards longer-lasting relationships that helps secure
recurring revenue well into the future.

Our sales
increased 8.8% year-over year in 2024 compared
to 2023, which we believe was primarily due to higher spending from existing clients
as well as business from new customers. Additionally, we benefited from the acquisition of the assets of T
R Miller in June 2023, and the Gander Group Assets in August 2024, respectively.

As of December 31, 2024,
we had approximately $55.1 million of total assets with approximately $31.6 million of total stockholders’ equity.

Recent Developments

Lease Agreement

On January 10, 2025, the Company entered into
a seven-year lease agreement for new office space in North Quincy, Massachusetts. The Company’s existing lease agreement for its office
space expires May 31, 2025. The new lease term begins on June 1, 2025 and expires on May 31, 2032 with an option to extend the lease an
additional five years. The lease contains an initial base rent of approximately $21 thousand per month with 2.2% - 2.5% annual escalations,
plus a percentage of taxes and operating expenses incurred by the lessor in connection with the ownership and management of the property.

43

Emerging Growth Company and Smaller Reporting
Company

We qualify as an “emerging growth company”
under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). As a result, we are permitted to, and intend to, rely
on exemptions from certain disclosure requirements. For so long as we are an emerging growth company, we will not be required to:

●have an auditor report on our internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;

●present three years, and may instead present only two years, of audited