Company: SWAGW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044222
Chunk: 22

Company: Stran & Company, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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    Additional services 
     95  
     92 

    $28,694  
    $18,827 

17

STRAN & COMPANY, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

Unearned revenue includes customer
deposits and deferred revenue which represent prepayments from customers. The Company had unearned revenue as follows:

    March 31,  2025  
    March 31,  2024 
  
    Balance at January 1, 
    $4,423  
    $1,116 
  
    Revenue recognized 
     (1,098) 
     (1,014)
  
    Amounts collected or invoiced 
     3,085  
     490 
  
    Unearned revenue 
    $6,410  
    $592 

K.COMMITMENTS AND CONTINGENCIES:

Legal Proceedings

The Company may from time to time become
involved in various legal actions incidental to our business. As of the date of this report, the Company is not involved in any legal
proceedings that it believes could have a material adverse effect on its financial position or results of operations. However, the outcome
of any current or future legal proceeding is inherently difficult to predict and any dispute resolved unfavorably could have a material
adverse effect on the Company’s business, financial position, and operating results.

Lease Agreements - Operating
Leases

On May 31, 2020, the Company renewed
a lease for a 10,500 square foot office space in Quincy, MA. The 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 $54 as of March 31, 2025, based on the present value of payments and an incremental borrowing
rate of 2%. 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,