Operating Leases

The Company leases approximately 6,000 to 10,535 square feet of office space for its San Antonio, TX executive offices and operations. Rental expense under the operating lease was $199,702 and $121,809 for the years ended December 31, 2019 and 2018, respectively. The lease expires on July 31, 2024.

Previously, the Company leased approximately 7,200 square feet of office space for its San Antonio, TX executive offices and operations. Rental expense under the operating lease was $88,096 for the year ended December 31, 2018. The lease expired on April 30, 2018.

The Company leases approximately 3,794 square feet of office space for its Nashville, Tennessee sales offices and operations. Rental expense under the operating lease was $112,108 and $93,424 for the years ended December 31, 2019 and 2018, respectively. The lease expires on April 30, 2023.

Previously, the Company assumed ongoing obligations of the Singular Payments' leased space in Nashville, TN and St. Augustine, FL to house their sales offices and operations. Rental expense under the operating leases was $15,018 for the year ended December 31, 2018.

The Company also leased select computer equipment for a period of 36 months beginning in May, 2016. The lease expired in April, 2019. Rental expense under the operating lease was $25,000 and $72,000 for the years ended December 31, 2019 and 2018, respectively.

The weighted average remaining lease term is 8.04 years. The weighted average discount rate is 4.53%

The Company recognized total operating lease expense of approximately $450,000 and $350,000 for the years ended December 31, 2019 and 2018, respectively. In 2019, the operating lease expense of $450,000 consisted of $325,000 of fixed operating expense and $125,000 of interest expense.

The maturities of lease liabilities are as follows at December 31, 2019:



Year ended December 31,
2020	$	356,184
2021	343,423
2022	351,334
2023	357,695
2024	356,250
Thereafter	1,469,679
Total minimum lease payments	3,234,565
Less imputed interest	(598,768		)
Total lease liabilities	$	2,635,797