Company: LGCY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022296
Chunk: 28

Company: Legacy Education Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 8
Chunk 28
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 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 September 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 7.33 years.

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

Schedule
of Future Minimum Operating Lease Payments

    2026 
    $2,423,874 
  
    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 
     19,767,193 
  
    Less: imputed interest 
     (4,291,581)
  
    Total 
     15,475,612 
  
    Current portion of operating lease 
     2,159,041 
  
    Long term portion of operating lease 
    $13,316,571 

Total
rent expense and related taxes and operating expenses under operating leases for the three months ended September 30, 2025 and 2024 were
$1,335,350 and $999,115, respectively.

Supplemental
balance sheet information related to leases was as follows:

Schedule
of Balance Sheet Information Related to Leases

    September 30,
                                                                               2025  
    June 30,
                                                                               2025 

    Operating lease right-of-use assets 
    $15,147,699  
    $15,781,177 

    Operating lease liability - current 
    $2,159,041