Company: LGCY
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006418
Chunk: 27

Company: Legacy Education Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 note was $50,000 as of December 31, 2024 and June 30, 2024.

    F-16

Legacy
Education Inc.

Notes
to Consolidated Financial Statements

For
The Three and Six Months ended December 31, 2024 and 2023

(Unaudited)

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 December 31, 2024 and June 30, 2024, the balance
of the finance liability was $203,862 and $272,669, respectively.

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