Company: LGCY
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006418
Chunk: 80

Company: Legacy Education Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 8
Chunk 80
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 as follows:

 Schedule
of Future Minimum Capital Lease Payments

    2025 
    - 
  
    2026 
     81,459 
  
    2027 
     81,459 
  
    Thereafter 
     81,458 
  
    Total minimum payments 
     244,376 
  
    Less: amount representing
    interest 
     (40,514)
  
    Present value of minimum payments 
    $203,862 
  
    Less: current portion 
     (60,559)
  
    Long term portion 
    $143,303 

The Company has determined to amortize the
lease over the useful life of the equipment or ten (10)
years and put the equipment into service in September 2024. The Company recorded amortization of $11,335
in the three and six months ended December 31, 2024.

Operating
Leases

The
Company leases its instructional facilities under non-cancelable operating leases expiring at various dates through 2034. In most cases,
the facility leases require the Company to pay various operating expenses of the facilities in addition to base monthly lease payments.
In certain cases, the Company has options available under its leases to renew, and certain leases contain ordinary rental escalations
on the space. Rent expense for the certain leases described above is recorded evenly over each lease term. The difference between rent
expense recorded and the amount paid is reflected as deferred rent on the accompanying balance sheets for those leases with rent escalation
clauses.

The
Company uses its incremental borrowing rate based on the information available at the commencement to determine the present value of
lease payments over the lease term. As of December 31, 2024, the weighted average incremental borrowing rate used by the Company
was approximately 6.7%, and the weighted average remaining years left on outstanding leases was 7.83 years.

The
present value of future minimum lease payments due at December 31, 2024 was as follows:

 Schedule
of Future Minimum Operating Lease Payments

    2025 
    $1,745,795 
  
    2026 
     3,026,432 
  
    2027 
     2,126,398 
  
    2028 
     1,954,026 
  
    2029 
     1,876,893 
  
    After 2029 
     8,956,056 
  
    Total future minimum