Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 787

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 2
Chunk 787
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 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  
    $537 

The following schedule represents maturities of operating
lease liabilities as of December 31, 2024: 

    Operating Minimum Lease Payments 
  
    2025 
    $361 
  
    2026 
     189 
  
    2027 
     185 
  
    2028 
     65 
  
    Less amount representing interest 
     (2)
  
    Present value of payments 
    $798 

The following schedule sets forth supplemental
cash flow information related to operating leases for the years ended December 31, 2024 and 2023 :

    December 31, 2024  
    December 31, 2023 
  
    Other information 

    Operating cash flows from operating lease 
    $12  
    $8 

The aggregate weighted average remaining lease term was 2.7 years as of December 31, 2024. The aggregate weighted average discount
rate was 3.7% as of December 31, 2024.

F-25

STRAN & COMPANY, INC.

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and