Company: SWAGW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109289
Chunk: 114

Company: Stran & Company, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 114
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    $25,981  
    $20,144  
    $87,252  
    $55,664 

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

    September 30, 
2025  
    September 30, 
2024 
  
    Balance at January 1, 
    $4,423  
    $1,116 
  
    Revenue recognized 
     (7,915) 
     (1,361)
  
    Amounts collected or invoiced 
     7,651  
     3,247 
  
    Balance at September 30, 
    $4,159  
    $3,002 

For the nine months ended September
30, 2025 and 2024, the Company recognized $3,430 thousand and $1,072 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.

20

STRAN & COMPANY, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

Lease Agreements - Operating
Leases

On May 31, 2020, the Company renewed
a lease for a 10,500 square foot office space in North 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