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

Company: Stran & Company, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 ended June 30, 2025
and 2024, the Company recognized $428 thousand and $1,044 thousand associated with unearned revenue balances outstanding at December 31,
2024 and 2023, respectively.

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. This lease terminated on May 31, 2025.

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 recorded an initial right-of-use asset and lease liability of $184 thousand. The associated lease right-of-use asset and lease
liability is $38 thousand as of June 30, 2025, 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 lease for a 25,000 square foot office space and warehouse in Walpole, MA. The lease commenced on June 1, 2023 and is for a term
of 60 months from the commencement date. The lease included an escalation clause with annual increases of approximately 2% increase per
year. The Company recorded an initial right-of-use asset of $