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LEASES | 12 Months Ended
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Dec. 31, 2019
LEASES [Abstract] |
LEASES | 6. LEASES The Company leases certain real estate for its retail store locations under long-term lease agreements. For leases effective on or after January 1, 2019, the Company determines if an arrangement is a lease at inception and recognizes operating lease assets and lease liabilities at commencement date based on the present value of lease payments over the lease term. The present value of the Company’s lease payments may include: (1) rental payments adjusted for inflation or market rates, and (2) lease terms with options to renew the lease when it is reasonably certain the Company will exercise such an option. The exercise of lease renewal options is generally at the Company’s discretion. Payments based on a change in an index or market rates are not considered in the determination of lease payments for purposes of measuring the related lease liability. The Company discounts lease payments using its incremental borrowing rate based on information available as of the measurement date. Subsequent to the recognition of its operating lease assets and lease liabilities, the Company recognizes lease expense related to its operating leases on a straight-line basis over the lease term. None of the Company’s lease agreements contain contingent rental payments, material residual value guarantees or material restrictive covenants. The depreciable life of related leasehold improvements is based on the shorter of the useful life or the lease term. The Company has no finance leases, no sublease agreements, and no lease agreements in which it is named as a lessor. The Company performs interim reviews of its long-lived assets for impairment when evidence exists that the carrying value of an asset group, including a lease asset, may not be recoverable. Excluding the January 1, 2019 impairment charge to retained earnings upon the adoption of Topic 842, the Company recognized an impairment expense of less than $0.01 million associated with operating lease assets during 2019. Additional information regarding the Company’s operating leases is as follows:
Leases |  | Balance Sheet Classification |  | December 31, 2019 |
Assets: |  |  |  |  |
Non-current |  | Operating lease assets |  | $ | 13,897,422 |
Liabilities: |  |  |  |  |  |
Current |  | Operating lease liabilities |  | $ | 3,822,748 |
Non-current |  | Operating lease liabilities, noncurrent |  |  | 10,654,631 |
Total lease liabilities |  |  |  | $ | 14,477,379 |
Lease Cost |  | Income Statement Classification |  | December 31, 2019 |
Operating lease cost |  | Operating expenses |  | $ | 4,151,220 |
Variable lease cost (1) |  | Operating expenses |  |  | 895,373 |
Total lease cost |  |  |  | $ | 5,046,593 |
(1) Variable lease cost includes payment for certain real estate taxes, insurance, common area maintenance, and other charges related to lease agreements, which are not included in the measurement of the operating lease liabilities.
Maturity of Lease Liabilities |  | December 31, 2019 |
2020 |  | $ | 3,891,153 |
2021 |  |  | 3,282,122 |
2022 |  |  | 2,411,124 |
2023 |  |  | 1,722,991 |
2024 |  |  | 1,309,459 |
Thereafter |  |  | 3,697,717 |
Total lease payments (2) |  | $ | 16,314,566 |
Less: Interest |  |  | (1,837,187 | )
Present value of lease liabilities |  | $ | 14,477,379 |
(2) Operating lease payments exclude $0.3 million of legally binding minimum lease payments for leases signed, but not yet commenced as of December 31, 2019.
At December 31, 2019, the weighted average remaining lease term for our operating leases was 6.0 years, and the weighted average discount rate used to measure our operating leases was 4.1%.
Other Information |  | December 31, 2019 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows used in operating leases |  | $ | 4,078,695 |
Operating lease assets obtained in exchange for lease obligations |  |  | 18,076,962 |
Prior Disclosures under ASC 840 The Company incurred rent expenses of $5.0 million and $4.6 million related to its operating leases during the years ended December 31, 2018 and 2017, respectively. Future minimum lease payments under noncancelable operating leases as of December 31, 2018 were as follows:
|  | December 31, 2018 |
2019 |  | $ | 4,417,806 |
2020 |  |  | 3,750,324 |
2021 |  |  | 3,042,779 |
2022 |  |  | 2,102,463 |
2023 |  |  | 1,289,874 |
Thereafter |  |  | 2,139,218 |
Total minimum lease payments |  | $ | 16,742,464 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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