Company: LGN
Filing Date: 2025-08-25
Form Type: S-1/A
Source: 0001193125-25-186788
Chunk: 338

Company: Legence Corp.
Filing Date: 2025-08-25
Form: S-1/A
Chunk 338
---
 consolidates a VIE when it is the primary beneficiary. For unconsolidated joint ventures, the Company accounts for its investment using the equity method. Consolidated Variable Interest Entities The Company has various contractual relationships with two professional corporations (“PCs”) that provide engineering and design services in New York and California. The Company does not own any equity interest in the PCs but provides most of the administrative functions, personnel and other resources required for the PCs to fulfill contracts with their customers. The Company receives fees from the PCs for these services. The Company is the primary beneficiary of the PCs. As such, the Company consolidates the PCs within the Condensed Consolidated Financial Statements. The table below shows the carrying amounts and classification of the PCs’ assets and liabilities included on the Company’s Condensed Consolidated Balance Sheets, excluding intercompany balances (in thousands):

|                                       |     |   | June 30, 
     2025 |     |   | December 31, 
         2024 |
|:--------------------------------------|:----|:--|---------:|:----|:--|-------------:|
| Cash                                  |     | $ |    1,253 |     | $ |       11,391 |
| Accounts receivable, net              |     |   |   12,007 |     |   |       25,744 |
| Contract assets, net                  |     |   |    2,966 |     |   |        2,475 |
| Total current assets                  |     |   |   16,226 |     |   |       39,610 |
| Other assets                          |     |   |      507 |     |   |          467 |
| Total assets                          |     | $ |   16,733 |     | $ |       40,077 |
| Accrued and other current liabilities |     | $ |    3,301 |     | $ |        1,448 |
| Contract liabilities                  |     |   |    5,363 |     |   |        4,471 |
| Total liabilities                     |     | $ |    8,664 |     | $ |        5,919 |

The assets of the PCs can only be used to settle their own obligations. The Company and the PCs have a promissory note agreement that allows each PC to borrow up to $1.0 million from the Company; however, no amounts have been borrowed. The Company’s Condensed