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Lease Commitments

3 Months Ended

Sep. 30, 2025

Commitments and Contingencies Disclosure [Abstract]

Lease Commitments

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

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 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 September 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 7.33 years.

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

Schedule of Future Minimum Operating Lease Payments

2026		$	2,423,874
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			19,767,193
Less: imputed interest			(4,291,581	)
Total			15,475,612
Current portion of operating lease			2,159,041
Long term portion of operating lease		$	13,316,571

Total rent expense and related taxes and operating expenses under operating leases for the three months ended September 30, 2025 and 2024 were $1,335,350 and $999,115, respectively.

Supplemental balance sheet information related to leases was as follows:

Schedule of Balance Sheet Information Related to Leases

		September 30, 2025				June 30, 2025
Operating lease right-of-use assets		$	15,147,699			$	15,781,177
Operating lease liability - current		$	2,159,041			$	2,306,061
Operating lease liability – non-current			13,316,571				13,748,161
Total operating lease liability		$	15,475,612			$	16,054,222

Other supplemental information:

Schedule of Other supplemental Information

		For the three months ended September 30,
		2025				2024
Cash paid for operating lease		$	832,580			$	782,273

Legacy Education Inc.

Notes to Condensed Consolidated Financial Statements

For the three months ended September 30, 2025 and 2024

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- References

No definition available.

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- Definition

The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 440
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/440/tableOfContent

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