Company: LGCY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022296
Chunk: 125

Company: Legacy Education Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 125
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 payroll taxes 
     693,644  
     1,081,600 
  
    Accrued vacation 
     621,878  
     611,136 
  
    Accrued bonuses 
     2,122,704  
     1,710,204 
  
    Accrued other expenses 
     142,136  
     134,970 
  
    Total 
    $5,294,676  
    $4,929,530 

    F-15

Legacy
Education Inc.

Notes
to Condensed Consolidated Financial Statements

For
the three months ended September 30, 2025 and 2024

Note
10 - Debts and Other Liabilities

    (1)
    Promissory
    Notes and Related Parties Debt

The
Company received $750,000 in proceeds from several creditors, including $150,000 from related parties in the form of unsecured promissory
notes. Under the terms of the unsecured promissory notes, the principal shall be due and payable on the earlier to occur (i) the 9-month
anniversary of the first advance under each promissory note; or (ii) the completion of an initial public offering by payee (“Maturity
Date”), and the promissory note shall bear interest at a monthly rate of 1% based upon the amount outstanding as of any calculation
date. Interest shall be payable monthly commencing on the 15th day of each calendar month following the date funds are first advanced.
The maturity dates on these promissory notes were extended to March 31, 2021. The noteholders agreed to defer the repayment of the principal
balance until the completion of an initial public offering and subsequently agreed to defer the repayment until demanded or paid.

Schedule
of Carrying Amount of Promissory Note

    September 30,
                                                                               2025  
    June 30,
                                                                               2025 
  
    Promissory note issued on November
    12, 2019 
    $500,000  
    $500,000 
  
    Promissory note issued on December 30, 2019,
    related party 
     50,000  
     50,000 
  
    Total other debt 
    $550,000  
    $550,000 

A
further note issued on February 6, 2020 in the amount of