Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 251

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 251
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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.

Termination of Revolving Line of Credit

Stran Loyalty Solutions, LLC, a Nevada limited
liability company (“Stran Loyalty Solutions”), a wholly-owned subsidiary of the Company, entered into a factoring arrangement
with a third party to provide accounts receivable financing to Stran Loyalty Solutions. In connection with the factoring arrangement,
the Company provided a secured guarantee of Stran Loyalty Solutions’ obligations under the factoring arrangement. Prior to this
arrangement, the Company had been a party to the Revolving Demand Line of Credit Loan Agreement, dated as of November 22, 2021 (the “Initial
Loan Agreement”), between the Company and Salem Five Cents Savings Bank, a Massachusetts savings bank (“Salem Five Cents”),
as amended by the Commercial Loan Modification Agreement, dated as of February 12, 2024, between the Company and Salem Five Cents (as
amended, the “Loan Agreement”), and the Revolving Demand Line of Credit Note, dated November 22, 2021, by the Company in
favor of Salem Five Cents (the “Demand Note”). The Loan Agreement and the Demand Note provided for a secured revolving loan
facility in an aggregate principal amount of up to $7.0 million (the “Revolving Line of Credit”). In discussions with
Salem Five Cents prior to the establishment of the factoring arrangement, Salem Five Cents indicated that it would terminate the Revolving
Line of Credit because of a policy which prohibited it from agreeing to subordination of its security interest in the Company’s
assets.

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Accordingly, on September 9, 2024, Salem Five
Cents delivered a letter (the “Termination Letter”) to the Company that stated that, effective August 26, 2024