Company: LGCY
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010844
Chunk: 29

Company: Legacy Education Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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. 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 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 March 31, 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 7.83 years.

    F-17

Legacy
Education Inc.

Notes
to Condensed Consolidated Financial Statements

For
The Three and Nine Months ended March 31, 2025 and 2024

(Unaudited)

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

Schedule
of Future Minimum Operating Lease Payments

    2025 
    $825,974 
  
    2026 
     3,304,306 
  
    2027 
     2,591,045 
  
    2028 
     2,525,777 
  
    2029 
     2,414,604 
  
    After 2029 
     9,811,893 
  
    Total
    future minimum operating lease payments 
     21,473,599 
  
    Less:
    imputed interest 
     (4,804,752)
  
    Total 
     16,668,847 
  
    Current
    portion of operating lease 
     2,424,490 
  
    Long
    term portion of operating lease 
    $14,244,357 

Total
rent expense and related taxes and operating expenses under operating leases for the three and nine months ended March 31, 2025 were
$1,372,