Company: SWAGW
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044222
Chunk: 24

Company: Stran & Company, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 a term of 36 months
from the commencement date. The lease included an escalation clause with annual increases of approximately 4% increase per year. The associated
lease right-of-use asset and lease liability is $541 as of March 31, 2025, based on the present value of payments and an incremental borrowing
rate of 6.7%. 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.

18

STRAN & COMPANY, INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

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

The company rents other office space
on terms of 12 months or less or on a month-to-month basis which are not included in the analysis above.

The following schedule represents the
components of lease expense: 

    March 31,  2025  
    March 31,  2024 
  
    Lease cost 

    Operating lease cost 
    $201  
    $172 
  
    Total 
    $201  
    $172 

The following schedule represents maturities of operating
lease liabilities as of March 31, 2025: 

    Operating Minimum Lease Payments 
  
    Remainder of 2025 
    $398 
  
    2026 
     440 
  
    2027 
     407 
  
    2028 
     65 
  
    Less amount representing interest 
     (81)
  
    Present value of payments 
    $1,229 

The following schedule sets forth supplemental
cash flow information related to operating leases for the three months