The Company leases its retail stores, distribution center and corporate and administrative office facilities under operating lease agreements which expire through September 2031. 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 ten 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 Fiscal 2022 and Fiscal 2021 was $4,878,000 and $4,547,000, respectively. Cash paid for lease liabilities for Fiscal 2022 and Fiscal 2021 was $3,320,000 and $3,790,000, respectively. There were no variable lease costs during any of the reporting periods, but the Company received $250,000 in rent abatement credits related to COVID-19 during Fiscal 2021.

Supplemental lease information as of January 29, 2022 is as follows ($ in thousands):

Operating right of use assets	$	10,778
Current operating lease liabilities	$	2,536
Long-term operating lease liabilities	$	9,699
Weighted-average remaining lease term in years		4.40
Weighted-average discount rate		12	%

As of January 29, 2022, maturities of lease liabilities are as follows (in thousands):

Fiscal Years Ending January,
2023	$	3,836
2024		3,818
2025		3,093
2026		2,549
2027		1,480
Thereafter		1,058
Total lease payments		15,834
Less: interest		(3,599	)
Total		12,235
Less: current portion		(2,536	)
Long-term portion	$	9,699

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 January 29, 2022, the Company’s outstanding payable with this vendor amounted to $5,784,000.

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 annual report, the Company did not have any significant litigation outstanding.

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.