15. Leases

The Company leases office space in two locations: (i) Duluth, Georgia, and (ii) New York City, New York. The Duluth, Georgia lease is a one-year lease that expires on December 31, 2019 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:


	Fiscal Year Ended June 30,
	2019			2018
	(Amounts in thousands)

Operating lease cost	$	56		$	28
Total lease cost	$	56		$	28

Gross sublease income		33			—
Operating cash flows from operating leases		(23)			(28)
Right-of-use assets obtained in exchange for new operating lease liabilities		549			—
Weighted-average remaining lease term - operating leases		41 months			N/A
Weighted-average discount rate - operating leases		6.50	%		N/A

Operating lease cost is reported as part of general and administrative expenses on the consolidated statement of operations. Sublease income is reported as a reduction of general and administrative expenses on the consolidated statement of operations. Operating cash flows from leases are reported as part of net income 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.

Lease payments for operating leases for the next five years are as follows:


Fiscal Year Ending June 30	Amount

2020	$	201,000
2021		183,000
2022		183,000
2023		46,000

The total lease liability on the balance sheet as of June 30, 2019 is $537,000. Total expected interest expense related to the lease is $58,000.