Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 239

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 239
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 recognized 
     (1,014) 
     (303)
  
    Amounts collected or invoiced 
     490  
     1,542 
  
    Unearned revenue 
    $592  
    $1,872 

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 $358 as of March 31, 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 available in the market for similar borrowings.

On February 1, 2023, the Company entered
into a lease for a 5,600 square foot office space in Tomball, TX. The lease commenced on February 1, 2023 and is for a term of 36 months
from the commencement date. The lease included an escalation clause with annual increases of approximately 2.3% increase per year. The
Company associated lease right-of-use asset and lease liability is $115 as of March 31, 2024, based on the present value of payments
and an incremental borrowing rate of 4%. 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 available in the market for similar borrowings.

On May 31, 2023, the Company entered
into a