The Company leases its retail stores, distribution center and corporate and administrative office facilities under operating lease agreements which expire through June 2027. Stores range in size from small stores of only 1,000 sq.ft. to larger stores of up to 5,200 sq.ft. Store leases typically provide for an initial lease term of three to five years, while certain leases have terms of up to seven years. Certain leases have provisions calling for percentage rent, in addition to base rent, once sales exceed a minimum threshold. However, the Company believes that the minimum thresholds in such leases exceed the level of sales expected to be generated by the stores during the term of the lease. Certain leases also contain renewal options, but such options are not recognized by the Company as part of its right-of-use assets or lease liabilities because the Company does not believe it is reasonably certain it will exercise such options, due to the uncertainty of future store financial performance or the ability of the property to generate sufficient customer traffic. Operating lease expense for the 13 and 39 weeks ended October 31, 2020 was $1,169,000 and $3,608,000, respectively. Operating lease expense for the transition period from January 1, 2020 to February 1, 2020 was $418,000. Operating leases expense for the three and nine months ended September 30, 2019 was $349,000 and $942,000, respectively.

Supplemental lease information as of October 31, 2020 is as follows ($ in thousands):

Operating right of use assets	$	9,149
Current operating lease liabilities	$	2,818
Long-term operating lease liabilities	$	6,643
Weighted-average remaining lease term in years		3.90
Weighted-average discount rate		12	%

As of October 31, 2020, maturities of lease liabilities are as follows (in thousands):

Years Ending Fiscal January
2021 (remaining three months)	$	893
2022		3,723
2023		2,574
2024		1,992
2025		1,302
Thereafter		1,400
Total lease payments		11,884
Less: interest		(2,423	)
Total		9,461
Less: current portion		2,818
Long-term portion	$	6,643

On October 2, 2020, the Company entered into a security agreement with its primary inventory supplier of Apple products that are sold in the Company’s Simply Mac retail electronics stores and on the Simply Mac eCommerce site. Under the agreement, the Company granted the supplier a security interest in collateral comprised of substantially all of the Company’s assets including inventory, accounts receivable, fixed assets and other items. In exchange for entering into the agreement, the supplier increased the Company’s line of credit from $3 million to $6.6 million. At October 31, 2020, the Company’s outstanding payable with this vendor amounted to $2,453,000.

The Company has in the past and may in the future 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.