Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments And Contingencies Disclosure [Abstract]

NOTE 12—COMMITMENTS AND CONTINGENCIES

Leases

The Company leases its retail stores, distribution center and corporate and administrative office facilities under operating lease agreements which expire through June 2027. Rent expense was $2,033,000, and $1,300,000 for the years ended December 31, 2018 and 2017, respectively. The following is a schedule of aggregate future minimum payments required by the above obligations (in thousands):

Payments due by period

Contractual Obligations

Total

Less than

1 year

1-3 years

4-5 years

More than

5 years

Operating Lease Obligations

7,322

1,611

2,453

1,664

1,594

Litigation

The Company has historically and may become involved in certain legal proceedings and claims which arise in the normal course of business. As of the filing date of this report, the Company did not have any significant litigation outstanding.

Employee Agreements and Compensation

The Company provides a 401(k) retirement savings plan for certain full-time employees in the U.S. Those employees are eligible to participate after 90 days of service with the Company. The Company does not currently provide matching contributions. The Company has entered into employment agreements with its officers which could subject the Company to the payment of severance compensation in the event the employees are terminated without cause.