NOTE 6. LEASES

The Company has leases for office equipment that expire between fiscal years 2020 and 2024 and for office facilities and other real estate in Canada that expire between fiscal years 2021 and 2023. Lease expense totaled $69,000 and $77,000 for the three months ended September 30, 2019, and 2018, respectively.

The components of lease expense included in general and administrative expense on the Consolidated Statements of Operations and qualitative information concerning the company’s operating leases were as follows:

	Three Months Ended
	September 30,
(dollars in thousands)	2019
Operating lease cost	$	44
Short-term lease cost		25
Total lease cost	$	69

Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	33

Right-of-use assets obtained in exchanged for:
Net operating lease liabilities	$	375

Weighted-average remaining lease term (in years)		3.38
Weighted-average discount rate		4.11	%

Maturities of lease liabilities as of September 30, 2019, are as follows:

(dollars in thousands)
Fiscal Year	Operating Leases
2020 (excluding the three months ended September 30, 2019)	$	85
2021		115
2022		106
2023		64
2024		5
Total lease payments		375
Less imputed interest		(26	)
Total	$	349

The Company is the lessor of certain areas of its owned office building under operating leases expiring in various years through 2022. At the commencement of an operation lease, no income is recognized; subsequently, lease payments received are recognized on a straight-line basis. Lease income included in other income on the Consolidated Statements of Operations for the three months ending September 30, 2019, was $17,000.

A summary analysis of annual undiscounted cash flows to be received on leases as of September 30, 2019, is as follows:

(dollars in thousands)
Fiscal Year	Operating Leases
2020 (excluding the three months ended September 30, 2019)	$	37
2021		49
2022		32
Total lease payments	$	118

The Company may terminate the building leases with one hundred eighty days written notice if it sells the property. If the Company terminates the lease, the Company will pay the tenant a termination fee of the lesser of six months of the base monthly rent or the base monthly rent times the number of months remaining in the initial term.