Company: SWAGW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001213900-25-074995
Chunk: 120

Company: Stran & Company, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 2
Chunk 120
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 2024, the Company entered into
a lease for a 6,500-square foot office space in Irvine, California. The lease commenced on January 1, 2025 and is for a term of 36 months
from the commencement date. The lease included an escalation clause with annual increases of approximately 4% increase per year.

The following is a schedule by years of future
minimum lease payments (in thousands):

    Remainder of 2025 
    $375 
  
    2026 
     702 
  
    2027 
     679 
  
    2028 
     335 
  
    2029 
     276 
  
    Thereafter 
     693 
  
    Total future non-cancelable minimum lease payments 
    $3,060 

Lease costs for the three months ended June 30,
2025 and 2024 totaled approximately $0.2 million and $0.2 million, respectively. Lease costs for the six months ended June 30, 2025 and
2024 totaled approximately $0.4 million and $0.3 million, respectively. We anticipate no deficiencies in our ability to make these payments.

Other Cash Obligations

The Company manages reward card programs for clients.
Under these programs, the Company receives cash and simultaneously records a liability for the total amount received. These accounts are
adjusted on a periodic basis as reward cards are funded or reduced at the direction of the customers. As of June 30, 2025 and December
31, 2024, the Company had net deposits totaling approximately $0.4 million and $0.4 million, respectively.

Critical Accounting Estimates 

We prepare our financial statements in accordance
with U.S. GAAP. The preparation of financial statements requires us to make estimates and assumptions that affect the reported amounts
of assets, liabilities, revenue, costs and expenses, and related disclosures. We evaluate our estimates and assumptions on an ongoing
basis. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances.
Actual results could differ significantly from the estimates made by our management. To the extent that there are differences between
our estimates and actual results, our future financial statements presentation, financial condition, results of operations, and cash flows
will be affected.

We believe that the assumptions and estimates
associated with the valuation of goodwill and intangible assets, have the greatest potential impact on our financial statements. Therefore,
we consider these to