---
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"
generated_at: "2026-06-17T18:15:11.477893+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.8
calibrated_materiality_score: 0.8
confidence: "high"
source: SEC EDGAR
---

# Legacy Education Alliance borrows $325,000 via 10% convertible debentures from affiliate of CEO

## Summary
- 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.

## SEC filing metadata
- accession: 0001493152-23-008726
- form_type: 8-K
- cik: 0001561880
- company_name: Legacy Education Alliance, Inc.
- filed_at: 2023-03-23T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.8
- calibrated_materiality_score: 0.8
- confidence: high
- sec_items: 1.01, 2.03, 8.01, 9.01
- 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

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-23-008726
- JSON: https://secwatch.observer/filing/0001493152-23-008726.json
- Plain text: https://secwatch.observer/filing/0001493152-23-008726.txt

## Key facts
- Debt Financings
  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.
  - Instrument: convertible notes
  - Principal: $325,000
  - Counterparty: ABCImpact I, LLC
  - Rate: 10% per annum
  - Maturity: the earlier of 12 months from the issue date and the date of a Liquidity Event
  - Event: incurrence
  source text: 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_url: https://www.sec.gov/Archives/edgar/data/1561880/000149315223008726/0001493152-23-008726-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.