Company: SWAGW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001213900-25-074995
Chunk: 349

Company: Stran & Company, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 8
Chunk 349
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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 $849 thousand and lease liability of $834 thousand. The associated right-of-use
asset and lease liability is $516 thousand and $511 thousand, respectively, as of June 30, 2025, based on the present value of payments
and an incremental borrowing rate of 4.0%. 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 March 9, 2021, Bangarang Enterprises,
the former owner of the Gander Group, entered into a lease for a 9,000 square foot office space in Irvine, CA. The lease commenced on
April 1, 2021 with a term of 48 months from the commencement date. The lease terminated on October 31, 2024.

On November 26, 2024, the Company entered
into a lease for a 6,500 square foot office space in Irvine, CA. The lease commenced on January 1, 2025 and is for 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 Company
recorded an initial right-of-use asset and lease liability of $548 thousand. The associated right-of-use asset and lease liability is
$465 thousand and $497 thousand, respectively, as of June 30, 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