Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 889

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 6
Chunk 889
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 value of minimum payments 
    $215,409 
  
    Less: current portion 
     (63,989)
  
    Long term portion 
    $151,420 

The
Company has determined to amortize the lease over the useful life of the equipment or ten years and put the equipment into service in
September 2024. The Company recorded amortization of $28,337 and $0 in the years ended June 30, 2025 and 2024, respectively.

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 June 30, 2025, 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 7.58 years.

The
present value of future minimum lease payments due at June 30, 2025 was as follows:

Schedule
of Future Minimum Operating Lease Payments

    2026 
    $3,304,306 
  
    2027 
     2,591,045 
  
    2028 
     2,525,777 
  
    2029 
     2,414,604 
  
    2030 
     2,475,882 
  
    After 2030 
     7,336,011 
  
    Total future minimum operating lease payments 
     20,647,625 
  
    Less: imputed interest 
     (4,593,403)
  
    Total 
     16,054,222 
  
    Current portion of operating lease 
     2,306,061 
  
    Long term portion of operating lease 
    $13,748,161 

Total
rent expense and related taxes and operating expenses under operating