Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 1350

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 6
Chunk 1350
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 and
an incremental borrowing rate of 4%. 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.

F-24

STRAN & COMPANY, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

On May 31, 2023, the Company entered
into a lease for a 25,000 square foot office space and warehouse in Walpole, MA. The lease commenced on June 1, 2023 and is for a term
of 60 months from the commencement date. The lease included an escalation clause with annual increases of approximately 2% increase per
year. The associated lease right-of-use asset and lease liability is $592 as of December 31, 2024, based on the present value of
payments and an incremental borrowing rate of 4%. 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 March 9, 2021, the Company entered
into a lease for a 9,000 square foot office space in Irvine, CA. The lease commenced on April 1, 2021 and is for a term of 48 months from
the commencement date. The lease was amended to terminate October 31, 2024. The lease included an escalation clause with annual increases
of approximately 3% increase per year. The associated lease right-of-use asset and lease liability is $0 as of December 31, 2024,
based on the present value of payments and an incremental borrowing rate of 8%. 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.

The company rents other office space
on terms of 12 months or less or on a month-to-month basis which are not included in the analysis above.

The following schedule represents the
components of lease expense: 

    December 31, 2024  
    December 31, 2023 
  
    Lease cost 

    Operating lease cost 
    $743  
    $537 
  
    Total 
    $743