Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 308

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 308
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 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 $358 as of June 30, 2024, based on the present value of payments and an incremental borrowing
rate of 12%. 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
Company associated lease right-of-use asset and lease liability is $115 as of June 30, 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 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 Company associated lease right-of-use asset and lease liability is $720 as of June 30, 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. 

22

STRAN & COMPANY, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

The following schedule represents the
components of lease expense: 

    Three months ended
 June