Company: SWAGW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001213900-25-074995
Chunk: 26

Company: Stran & Company, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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849 thousand and lease liability of $834 thousand. The associated right-of-use
asset and lease liability is $516 thousand and $511 thousand, respectively, as of June 30, 2025, based on the present value of payments
and an incremental borrowing rate of 4.0%. 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.

18

STRAN & COMPANY, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except
share and per share amounts)

On March 9, 2021, Bangarang Enterprises,
the former owner of the Gander Group, entered into a lease for a 9,000 square foot office space in Irvine, CA. The lease commenced on
April 1, 2021 with a term of 48 months from the commencement date. The lease terminated on October 31, 2024.

On November 26, 2024, the Company entered
into a lease for a 6,500 square foot office space in Irvine, CA. 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 Company
recorded an initial right-of-use asset and lease liability of $548 thousand. The associated right-of-use asset and lease liability is
$465 thousand and $497 thousand, respectively, as of June 30, 2025, based on the present value of payments and an incremental borrowing
rate of 6.7%. 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 January 10, 2025, the Company entered
into a seven-year lease agreement for new office space in North Quincy, Massachusetts. The new lease term commenced 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