Company: SWAGW
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001213900-25-021742
Chunk: 129

Company: Stran & Company, Inc.
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 1
Chunk 129
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 36 months
from the commencement date. The lease included an escalation clause with annual increases of approximately 2.3% increase per year. The
associated lease right-of-use asset and lease liability is $86 as of September 30, 2024, based on the present value of payments and
an incremental borrowing rate of 4%. 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 May 31, 2023, the Company entered
into a lease for a 25,000 square foot office space and warehouse in Walpole, MA. The lease commenced on June 1, 2023 and is for a term
of 60 months from the commencement date. The lease included an escalation clause with annual increases of approximately 2% increase per
year. The associated lease right-of-use asset and lease liability is $632 as of September 30, 2024, based on the present value of
payments and an incremental borrowing rate of 4%. 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 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 September 30, 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: 

    Three Months Ended
 September 30,  
    Nine Months Ended
 September 30,