Company: LGCY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022296
Chunk: 27

Company: Legacy Education Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 8
Chunk 27
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 September 30, 2024, each director received $4,500 $4,500.

In
December 2019, the Company received $50,000 of proceeds from a promissory note, entered into with an executive of the Company, which
bears interest at the rate of 12% per annum and matures on the earlier of the nine-month anniversary of the loan or the completion of
an initial public offering. The Company completed an initial public offering in September 2024, and the parties agreed to carry the note
as due on demand. The balance of this note was $50,000 and $50,000 as of September 30, 2025 and June 30, 2025, respectively.

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 September 30, 2025 and June 30, 2025, the balance
of the finance liability was $139,346 and $215,409, respectively.

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

Schedule
of Future Minimum Capital Lease Payments

    2026 
    $- 
  
    2027 
     81,459 
  
    2028 
     81,458 
  
    Total minimum payments 
     162,917 
  
    Less: amount representing interest 
     (23,572)
  
    Present value of minimum payments 
    $139,345 
  
    Less: current portion 
     (65,806)
  
    Long term portion 
    $73,539 

    F-17

Legacy
Education Inc.

Notes
to Condensed Consolidated Financial Statements

For
the three months ended September 30, 2025 and 2024

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 $8,501 and $0 in the three months ended September 30, 2025 and 2024, respectively.

Operating
Leases

The
Company leases its instructional facilities under non-cancelable operating leases expiring at