Company: LGCY
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010844
Chunk: 80

Company: Legacy Education Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 80
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% per annum and matures on the earlier of the nine-month anniversary of the loan or the completion of
an initial public offering. The balance of this note was $50,000 as of March 31, 2025 and June 30, 2024.

Note
12 – Lease Commitments

Finance
Leases

In
July 2023, the Company entered into an equipment lease for $340,048. The related finance liability has an implied interest rate of 11.16%
per annum and requires 5 equal annual payments due on September 1 of each year. As of March 31, 2025 and June 30, 2024, the balance of
the finance liability was $209,524 and $272,669, respectively.

The
present value of future minimum lease payments due at March 31, 2025, was as follows:

 Schedule
of Future Minimum Capital Lease Payments

    2025 
    $
    - 
  
    2026 
     
    81,459 
  
    2027 
     
    81,459 
  
    2028 
     
    81,458 
  
    Thereafter 
     
    - 
  
    Total
    minimum payments 
     
    244,376 
  
    Less:
    amount representing interest 
     
    (34,852)
  
    Present value of
    minimum payments 
    $
    209,524 
  
    Less:
    current portion 
     
    (62,241)
  
    Long
    term portion 
    $
    147,283 

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 $8,501 and $19,836 in the three and nine months ended March 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