Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 40

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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”). In discussions with Salem Five Cents prior
to the establishment of the factoring arrangement, Salem Five Cents indicated that it would terminate the Revolving Line of Credit because
of a policy which prohibited it from agreeing to subordination of its security interest in the Company’s assets.

Accordingly, on September 9, 2024,
Salem Five Cents delivered a letter (the “Termination Letter”) to the Company that stated that, effective August 26, 2024
(the “Termination Date”), Salem Five Cents terminated all obligations under the Loan Agreement and the Demand Note. The Termination
Letter further stated that the Loan Agreement and the Demand Note and any related loan documents shall be considered no longer in force
or effect. The Company had no funds drawn on the Revolving Line of Credit on the Termination Date.

Operating Lease Agreement

On January 10, 2025, the Company entered
into a seven-year lease agreement for new office space in North Quincy, Massachusetts. The Company’s existing lease agreement for its
office space expires May 31, 2025. The new lease term begins 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 $21 per month with 2.2% - 2.5% annual escalations, plus a percentage
of taxes and operating expenses incurred by the lessor in connection with the ownership and management of the property.

27

 ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. 

The following management’s discussion
and analysis of financial condition and results of operations provides information that management believes is relevant to an assessment
and understanding of our plans and financial condition. The following financial information is derived from our financial statements and
should be read in conjunction with such financial statements and notes thereto set forth elsewhere herein.

Use of Terms

Except as otherwise indicated by the context and
for the purposes of this report only, references in this report to “we,” “us,” “our,” “Stran,”
and the “Company” are to Stran & Company, Inc., a Nevada corporation.

Special Note Regarding Forward-Looking Statements

This report contains forward-looking statements
that are based on our management’s beliefs and assumptions and on information currently available to us. All statements other than
statements of historical facts are forward-looking statements.