16. Leases

The Company leases office space in two locations: (i) Duluth, Georgia, and (ii) New York City, New York. The Duluth, Georgia lease expires in 2025, and the New York City, New York lease expires in 2023. We prospectively adopted ASU 2016-02 effective for the fiscal year ended June 30, 2019. For leases with a term of 12 months or less, we made an accounting policy election not to recognize lease assets and lease liabilities. The following information represents the amounts included in the financial statements related to leases (amounts in thousands):


	Fiscal Year Ended June 30,
	2020		2019
Operating lease cost	$	236	$	56

Gross sublease income		143		33
Operating cash flows from operating leases		(93)		(23)

Operating lease cost is reported as part of selling, general, and administrative expenses on the consolidated statement of operations. Sublease income is reported as a reduction of selling, general, and administrative expenses on the consolidated statement of operations. Operating cash flows from leases are reported as part of net income (loss) on the consolidated statement of cash flows. Right-of-use assets obtained in exchange for new operating lease liabilities are reported as part of other long-term assets on the consolidated balance sheet. The short-term portions of the operating lease liabilities are reported as part of accounts payable and accrued expenses on the consolidated balance sheet. The long-term portions of the operating lease liabilities are reported as part of other long-term liabilities on the consolidated balance sheet.

The weighted-average remaining lease term for operating leases as of June 30, 2020 is 44 months. The weighted-average annual discount rate used for operating leases as of June 30, 2020 is 7.4%.

At June 30, 2020, lease payments for operating leases for the next five years are as follows (amounts in thousands):


Fiscal Year Ending June 30	Amount

2021		250
2022		258
2023		123
2024		79
2025		81

The total lease liability on the balance sheet as of June 30, 2020 is $777,000. Total unrecognized expected interest expense related to leases is $84,000. During the fourth quarter of our fiscal year 2020, we determined that the right of use asset attributable to our LMCS business unit was impaired. As such, we recorded a $53,000 non-cash impairment charge to impairment of goodwill and long-lived assets on the accompanying statements of operations. See Note 6.