LEASES

We lease most of our retail store locations. We recognize lease expense for these leases on a straight-line basis over the lease term; leases with an initial term of

months or less are

not

recorded on the balance sheet. We account for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from the non-lease components (e.g., common-area maintenance costs).

None

of our store location lease agreements contain variable rental payments, although certain leases require us to pay real estate taxes, insurance, maintenance and other operating expenses associated with the leased premises. Some of our leases include options to renew, with renewal terms that can extend the lease term from

one

ten

years (the exercise of lease renewal options is at our sole discretion). Our lease agreements do

not

contain any material residual value guarantees or material restrictive covenants. We do

not

have any rent or sublease agreements with

third

parties, nor do we have any capital/finance lease assets.

Our operating lease costs, recorded as part of operating expenses, was

$1,041,294

and

$1,037,652

for the

three

months ended

March 31, 2019

and

2018,

respectively.

Future minimum lease payments, including leases than

one

year and fixed executory costs (e.g. real estate taxes, insurance and maintenance) under noncancelable operating leases at

March 31, 2019

were as follows:

Year ending December 31:
2019	$	3,419,357
2020		4,020,144
2021		3,374,409
2022		2,286,366
2023		1,436,404
2024		798,046
2025		624,970
2026		420,549
2027		296,974
2028		61,350
Total minimum lease payments	$	16,738,569

March 31, 2019,

the weighted average remaining lease term is

4.8

years, and the weighted average discount rate used to measure our operating leases was

4.3%.