{"schema_version":"secwatch.filing_event.v1","accession":"0001493152-23-008726","form_type":"8-K","ticker":null,"cik":"0001561880","company_name":"Legacy Education Alliance, Inc.","filed_at":"2023-03-23T23:59:59+00:00","discovered_at":"2026-05-14T18:03:45.582387+00:00","generated_at":"2026-06-17T18:15:11.477893+00:00","sec_items":["1.01","2.03","8.01","9.01"],"event_type":"debt","sentiment":"negative","materiality_score":0.8,"calibrated_materiality_score":0.8,"confidence":"high","headline":"Legacy Education Alliance borrows $325,000 via 10% convertible debentures from affiliate of CEO","bullets":["Borrowed $325,000 from ABCImpact I, LLC, with option for additional $2,684,500 under convertible debentures.","Debentures bear 10% annual interest, convertible at $0.05 per share, with 4.99% beneficial ownership limit.","Granted warrants to 27 employees and consultants for 31.25% of shares upon uplisting, including 19.90% to the lender.","CEO Barry Kostiner holds non-controlling interest in the lender, making it a related-party transaction.","Proceeds used for general corporate purposes and working capital; debentures mature 12 months from issuance or at liquidity event."],"urls":{"canonical":"https://secwatch.observer/filing/0001493152-23-008726","json":"https://secwatch.observer/filing/0001493152-23-008726.json","markdown":"https://secwatch.observer/filing/0001493152-23-008726.md","text":"https://secwatch.observer/filing/0001493152-23-008726.txt","edgar_index":"https://www.sec.gov/Archives/edgar/data/1561880/000149315223008726/0001493152-23-008726-index.htm","edgar_primary_document":"https://www.sec.gov/Archives/edgar/data/1561880/000149315223008726/form8-k.htm"},"model":{"generated_by":"deepseek-v4-flash:cloud@v2","generated_at":"2026-06-17T18:15:11.477893+00:00"},"review":{"review_status":"machine_generated","human_reviewed":false,"corrected":false,"correction_note":null,"correction_timestamp":null,"superseded_by":null,"related_filings":[]},"source_grounded_claims":[{"claim_id":"9f4e96998fab742ebba6f3ef4cfdb3a54959287d","claim":"Legacy Education Alliance, Inc. incurred convertible notes of $325,000 with ABCImpact I, LLC at 10% per annum maturing the earlier of 12 months from the issue date and the date of a Liquidity Event.","evidence_excerpt":"Between March 6, 2023 and March 17, 2023, Legacy Education Alliance, Inc. (the “Company”) borrowed an aggregate of $325,000 (collectively, the “Loan”) from ABCImpact I, LLC, a Delaware limited liability company (the “Lender”), evidenced by one or more 10% Convertible Debentures (the “Debentures”).","evidence_source":"SEC 8-K Item 2.03/2.04","evidence_url":"https://www.sec.gov/Archives/edgar/data/1561880/000149315223008726/0001493152-23-008726-index.htm","confidence":0.9,"family_label":"Debt Financings","details":[{"label":"Instrument","value":"convertible notes"},{"label":"Principal","value":"$325,000"},{"label":"Counterparty","value":"ABCImpact I, LLC"},{"label":"Rate","value":"10% per annum"},{"label":"Maturity","value":"the earlier of 12 months from the issue date and the date of a Liquidity Event"},{"label":"Event","value":"incurrence"}],"fact_type":"debt_financing"}],"license":"Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer"}