Debts and Other Liabilities

6 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

Debts and Other Liabilities

Note 10 - Debts and Other Liabilities

(1) Promissory Notes and Related Parties Debt

The Company received $750,000 in proceeds from several creditors, including $150,000 from related parties. Under the unsecured promissory notes, the principal shall be due and payable on the earlier to occur (i) the 9-month anniversary of the first advance under each promissory note; or (ii) the completion of an initial public offering by payee (“Maturity Date”), and the promissory note shall bear interest at a monthly rate of 1% based upon the amount outstanding as of any calculation date. Interest shall be payable monthly commencing on the 15th day of each calendar month following the date funds are first advanced. The maturity dates on these promissory notes were extended to March 31, 2021. The noteholders agreed to defer the repayment of the principal balance until the completion of a future Initial Public Offering.

	December 31, 2024		June 30, 2024
Promissory note issued on November 12, 2019	$	500,000	$	500,000
Promissory note issued on December 30, 2019, related party		50,000		50,000
Total other debt	$	550,000	$	550,000

A further note issued on February 6, 2020 in the amount of $100,000 was repaid in cash in September 2023.

(2) Equipment Loan

In January 2023, the Company entered into an equipment loan for $30,744. The note accrues interest at a rate of 6.0% per annum and requires 48 equal monthly payments. As of December 31, 2024 and June 30, 2024, the principal balance of the promissory note was $17,044 and $20,929, respectively.

In August 2023, the Company entered into an equipment loan for $35,580. The note accrues interest at a rate of 10.14% per annum and requires 48 equal monthly payments. As of December 31, 2024 and June 30, 2024, the principal balance of the promissory note was $23,804 and $27,723, respectively.

In November 2023, the Company entered into an equipment loan for $14,610. The note accrues interest at a rate of 10.72% per annum and requires 48 equal monthly payments. As of December 31 2024 and June 30, 2024, the principal balance of the promissory note was $10,973 and $12,582, respectively.

In December 2023, the Company entered into an equipment loan for $11,920. The note accrues interest at a rate of 13.53% per annum and requires 36 equal monthly payments. As of December 31, 2024 and June 30, 2024, the principal balance of the promissory note was $8,070 and $9,853, respectively.

In February 2024, the Company entered into an equipment loan for $35,612. The note accrues interest at a rate of 8% per annum and requires 36 equal monthly payments. The first payment will be on April 1, 2024. As of December 31, 2024 and June 30, 2024, the principal balance of the promissory note was $27,493 and $32,950, respectively.

Legacy Education Inc.

Notes to Consolidated Financial Statements

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

(Unaudited)

In June 2024, the Company entered into an equipment loan for $48,966. The note accrues interest at a rate of 11.16% per annum and requires 48 equal monthly payments. The first payment will be on June 1, 2024. As of December 31, 2024 and June 30, 2024, the principal balance of the promissory note was $43,103 and $48,125, respectively.

In July 2024, the Company entered into an equipment loan for $39,189. The note accrues interest at a rate of 11.15% per annum and requires 48 equal monthly payments. The first payment will be on July 1, 2024. As of December 31, 2024 and June 30, 2024, the principal balance of the promissory note was $35,191 and $0, respectively.

(3) CCMCC acquisition Seller Loan

As part of the acquisition described in Note 3, the Company entered into a $400,000 promissory note with the seller of CCMCC. Under the terms of the note, interest shall accrue at 6% and shall be repaid in twelve equal monthly payments of principal and interest. As of December 31, 2024, the full amount outstanding is presented as current on the accompanying consolidated balance sheet.

(4) Bank Loan

On December 31, 2019, the Company acquired Integrity, assuming its two bank loans, which are secured by all business assets of the Company.

	December 31, 2024		June 30, 2024
Bank loan #1, monthly payment $803.69, due in 110 months, effective interest rate 6.44%	$	21,188	$	24,447
Bank loan #2, monthly payment $5,672.86 start on November 23, 2020, due in 48 months		1,884		21,495
Total bank loans	$	23,072	$	45,942

Future maturities over the remaining term of total debt for (1) to (3) are as follows:

2025 (1)	$	983,943
2026		67,118
2027		60,664
2028		27,024
		1,138,749
Less: current portion (1)		(1,015,546	)
Long-term portion of debt	$	123,203

⁽¹⁾ Includes $50,000 related party debt