Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

12. Commitments and Contingencies

Operating Leases

The Company leases its corporate office, warehouse, kiosks and tasting room space under operating lease agreements which expire at various dates through December 2023. Monthly lease payments range from $1,857 to $25,175 over the terms of the leases. For operating leases which contain fixed escalations in rental payments, the Company records the total rent expense on a straight-line basis over the lease term. The difference between the expense computed on a straight-line basis and actual payments for rent represents deferred rent which is included within accrued liabilities on the accompanying consolidated balance sheets. Retail spaces under lease are subject to monthly percentage rent adjustments when gross sales exceed certain minimums.

At December 31, 2018, future minimum lease payments required under the operating leases are approximately as follows:

For year ending December 31st:

2019	$	547,411
2020		435,958
2021		117,683
2022		37,153
2023		38,267
Total	$	1,176,472

Total rent expense was approximately $459,147 and $362,000 for the years ended December 31, 2018 and 2017, respectively.

Legal Matters

We are not currently subject to any material legal proceedings, however, we could be subject to legal proceedings and claims from time to time in the ordinary course of our business. Regardless of the outcome, litigation can, among other things, be time consuming and expensive to resolve, and divert management resources.