Company: SWAGW
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001213900-25-021742
Chunk: 29

Company: Stran & Company, Inc.
Filing Date: 2025-03-07
Form: 10-Q
Item: Part II, Item 8
Chunk 29
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848  
     935 
  
    Additional services 
     117  
     70  
     390  
     255 

    $20,144  
    $19,674  
    $55,664  
    $53,060 

Unearned revenue includes customer
deposits and deferred revenue which represent prepayments from customers. The Company had unearned revenue as follows:

    September 30,
 2024  
    September 30,
 2023 

    (Restated) 
  
    Balance at January 1, 
    $1,116  
    $633 
  
    Revenue recognized 
     (1,361) 
     (1,251)
  
    Amounts collected or invoiced 
     3,247  
     4,046 
  
    Unearned revenue 
    $3,002  
    $3,428 

24

STRAN & COMPANY,
INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except share and per share amounts)

K.COMMITMENTS AND CONTINGENCIES:

Legal Proceedings

The Company may from time to time become
involved in various legal actions incidental to our business. As of the date of this report, the Company is not involved in any legal
proceedings that it believes could have a material adverse effect on its financial position or results of operations. However, the outcome
of any current or future legal proceeding is inherently difficult to predict and any dispute resolved unfavorably could have a material
adverse effect on the Company’s business, financial position, and operating results.

Lease Agreements - Operating
Leases

On May 31, 2020, the Company renewed
a lease for a 10,500 square foot office space in Quincy, MA. The lease renewed on June 1, 2020 and is for a term of 60 months from the
renewal date. The lease included an escalation clause with annual increases of approximately 2.5% increase per year. The associated lease
right-of-use asset and lease liability is $215 as of September 30, 2024, based on the present value of payments and an incremental
borrowing rate of 12%. As the Company’s lease did not provide an implicit rate, the Company estimated the incremental borrowing
rate based on the credit quality of the Company and by comparing interest rates