Company: SWAGW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001213900-25-074995
Chunk: 350

Company: Stran & Company, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 350
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 borrowings.

On January 10, 2025, the Company entered
into a seven-year lease agreement for new office space in North Quincy, Massachusetts. The new lease term commenced 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 approximately
$21 thousand 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. The Company recorded an initial right-of-use asset of $1.3 million and lease
liability of $1.5 million. The associated right-of-use asset and lease liability is $1,264 thousand and $1,516 thousand, respectively,
as of June 30, 2025, based on the present value of payments and an incremental borrowing rate of 6.5%.

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.

Operating lease expenses were approximately
$194 thousand and $154 thousand for the three months ended June 30, 2025 and 2024, respectively, and $395 thousand and $326 thousand
for the six months ended June 30, 2025 and 2024, respectively, and were included in general and administrative expenses in the unaudited
condensed consolidated statements of operations.

The following schedule represents maturities of operating
lease liabilities as of June 30, 2025: 

    Operating 
Minimum 
Lease 
Payments 
  
    Remainder of 2025 
    $375 
  
    2026 
     702 
  
    2027 
     679 
  
    2028 
     335 
  
    2029 
     276 
  
    Thereafter 
     693 
  
    Total 
     3,060 
  
    Less amount representing interest 
     (519)
  
    Present value of payments 
    $2,541 

The following schedule sets forth supplemental
cash flow information related to operating leases for the three and six months ended June 30, 2025 and 2024 : 

    Three Months Ended 
June 30,  
    Six Months Ended
 June 30, 

    2025