Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011877
Chunk: 320

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 320
---
 Inc.,
or T R Miller, in June 2023.

As of June 30, 2024,
we had approximately $46.6 million of total assets with approximately $34.3 million of total stockholders’ equity.

Restatement of Previously Issued Consolidated
Financial Statements

This Quarterly Report on Form 10-Q includes financial
statements that restate the Company’s financial statements as of and for the three and six months ended June 30, 2023. This Item
2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” includes restated financial
information as of and for the three and six months ended June 30, 2023. Refer to Note B to the financial statements included in this Quarterly
Report on Form 10-Q for a discussion of the restatement and the impact on the specific accounts in such financial statements.

Recent Developments

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 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.

29

Termination of Revolving Line of Credit

Stran Loyalty Solutions, LLC, a Nevada limited
liability company (“Stran Loyalty Solutions”), a wholly-owned subsidiary of the Company, entered into a factoring arrangement
with a third party to provide accounts receivable financing to Stran Loyalty Solutions. In connection with the factoring arrangement,
the Company provided a secured guarantee of Stran Loyalty Solutions’ obligations under the factoring arrangement. Prior to this
arrangement, the Company had been a party to the Revolving Demand Line of Credit Loan Agreement, dated as of November 22, 2021 (the “Initial
Loan Agreement”), between the Company and Salem Five Cents Savings Bank, a Massachusetts savings bank (“Salem Five Cents”),
as amended by the Commercial Loan Modification Agreement, dated as of February 12, 2024, between the Company and Salem Five C