Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 582

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1C
Chunk 582
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 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 June 30, 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 7.58 years.

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

Schedule
of Future Minimum Operating Lease Payments

    2026 
    $3,304,306 
  
    2027 
     2,591,045 
  
    2028 
     2,525,777 
  
    2029 
     2,414,604 
  
    2030 
     2,475,882 
  
    After 2030 
     7,336,011 
  
    Total future minimum operating lease payments 
     20,647,625 
  
    Less: imputed interest 
     (4,593,403)
  
    Total 
     16,054,222 
  
    Current portion of operating lease 
     2,306,061 
  
    Long term portion of operating lease 
    $13,748,161 

Total
rent expense and related taxes and operating expenses under operating leases for the years ended June 30, 2025 and 2024 were $4,483,574
and $3,368,780, respectively.

    F-18

 Legacy
Education Inc.

Notes to Consolidated Financial Statements

For Fiscal Years ended June 30, 2025 and 2024

Supplemental
balance sheet information related to leases was as follows:

Schedule
of Balance Sheet Information Related to Leases

    June 30, 2025  
    June 30, 2024 

    Operating lease right-of-use assets 
    $15,781,177  
    $3,575,369 

    Operating lease liability - current 
    $2,306,061  
    $1,868,560 
  
    Operating lease liability – non-current 
     13,748,161  
     1,947,620 
  
    Total