Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 53

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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 assets. After the date of the Loan Modification
Agreement, any future contingent earn-out obligations were required to be subordinated to the Loan Documents.

In connection with the
Initial Loan Agreement, on November 22, 2021, the Company, Salem Five Cents and Harte Hanks Response Management/ Boston, Inc. (the “Warehouse
Provider”), the lessor of certain warehouse facilities to the Company, executed a Warehouseman’s Waiver in favor of Salem
Five Cents (the “Warehouseman’s Waiver”). Under the Warehouseman’s Waiver, the Warehouse Provider disclaimed
any interest in the property of the Company stored on the premises (the “Collateral”), and agreed not to interfere with Salem
Five Cents’ enforcement of its rights in the Collateral. The Warehouse Provider further agreed to provide notice to Salem Five
Cents of any default by the Company of its obligations as to the Warehouse Provider, and to give Salem Five Cents at least 30 days to
exercise its rights, which period could be extended by Salem Five Cents up to 60 days upon its payment of the per-diem rental amount.
After that period, unless the default had been cured by Salem Five Cents, the Warehouse Provider could dispose of such Collateral as
it deemed fit. Upon the receipt of written notice from Salem Five Cents and until such notice was rescinded, the Warehouse Provider was
required to honor only instructions from Salem Five Cents with respect to 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 March 31, 2024, 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 
    $444 
  
    2025 
     388 
  
    2026 
     189 
  
    2027 
     193 
  
    2028 
     67 
  
    Total future non-cancelable minimum lease payments 
    $1,281 

Lease costs for the three months ended March
31, 2024 and 2023 totaled approximately $0.2 million and $0.1 million