Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 62

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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 the Collateral, including, any direction from Salem Five Cents to dispose
of all or any portion of the Collateral at any time, without any further consent or instruction from Company.

As of June 30, 2024 and December 31, 2023,
we had not drawn any funds from the Revolving Line of Credit.

See “—Recent Developments –
Termination of Revolving Line of Credit”.

Contractual Obligations

Property Leases

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

    Remainder of 2024 
    $287 
  
    2025 
     361 
  
    2026 
     189 
  
    2027 
     185 
  
    2028 
     65 
  
    Total future non-cancelable minimum lease payments 
    $1,087 

Lease costs for the three months ended June 30,
2024 and 2023 totaled approximately $0.2 million and $0.1 million, respectively. Lease costs for the six months ended June 30, 2024 and
2023 totaled approximately $0.3 million and $0.3 million, respectively. We anticipate no deficiencies in our ability to make these payments.

39

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, 2024 and December
31, 2023, the Company had net deposits totaling approximately $3.4 million and $0.9 million, respectively.

Our other principal cash payment obligations have
consisted principally of obligations under the Revolving Line of Credit. As stated above, as of June 30, 2024 and December 31, 2023, we
had not drawn any funds from the Revolving Line of Credit under the Loan Documents.

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