14. Leases

The Company leases office space in Duluth, Georgia. The Duluth, Georgia lease expires in 2025. For leases with a term of 12 months or less, we made an accounting policy election not to recognize lease assets and lease liabilities. During the three months ended December 31, 2020, the Company terminated its lease in New York New York, and forfeited its $46,000 security deposit related to that lease. The following information represents the amounts included in the financial statements related to leases (amounts in thousands):


	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2020		2019		2020		2019

Operating lease cost	$	(25)	$	54	$	34	$	109

Gross sublease income		—		48		4		100
Operating cash flows from operating leases		(19)		(6)		(74)		(9)

Operating lease cost is reported as part of selling, general, and administrative expenses on the consolidated statements of operations. Sublease income is reported as a reduction of selling, general, and administrative expenses on the consolidated statements of operations. Operating cash flows from leases are reported as part of net income (loss) on the consolidated statements 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 sheets. The short-term portions of the operating lease liabilities are reported as part of accounts payable and accrued expenses on the consolidated balance sheets. The long-term portions of the operating lease liabilities are reported as part of other long-term liabilities on the consolidated balance sheets. The weighted-average remaining lease term for operating leases as of December 31, 2020 is 54 months. The weighted-average annual discount rate used for operating leases as of December 31, 2020 is 6.5%.

As of December 31, 2020, lease payments for operating leases for the next five years are as follows (amounts in thousands):


Fiscal Year Ending June 30	Amount

2021	$	37
2022		75
2023		77
2024		79
2025		81

The total lease liability on the consolidated balance sheets as of December 31, 2020 is $367,000. Total unrecognized expected interest expense related to leases is $46,000.