Company: LGCY
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006418
Chunk: 118

Company: Legacy Education Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part II, Item 8
Chunk 118
---
 contract price across performance obligations, the methodology for
earning tuition ratably over the instruction period, estimates for the amount of variable consideration included in the transaction price
as well as the determination of the impact of the constraints preventing the variable consideration from being recognized in revenue.

Disaggregation
of Revenue

The
tuition and related revenue consist of the following during the three and six months ended December 31, 2024 and 2023:

Schedule of Disaggregation of Revenue 

    2024  
    2023  
    2024  
    2023 

    For
                                            the Three Months Ended December
                                            31,  
    For
                                            the Six Months Ended December
                                            31, 

    2024  
    2023  
    2024  
    2023 
  
    Tuition and lab fees (recognized
    over time) 
    $12,477,378  
    $8,980,760  
    $24,598,235  
    $17,454,675 
  
    Books, registration and other fees (recognized
    at a point in time) 
     1,157,756  
     1,570,537  
     3,041,990  
     3,463,556 
  
    Total revenue 
    $13,635,134  
    $10,551,297  
    $27,640,225  
    $20,918,231 

Allowance
for Credit Losses

The
Company records an allowance for credit losses for estimated losses resulting from the inability, failure or refusal of its students
to make required payments, which includes the recovery of financial aid funds advanced to a student for amounts in excess of the student’s
cost of tuition and related fees. The Company determines the adequacy of its allowance for doubtful accounts based on an analysis of
its historical bad debt experience, current economic trends, and the aging of the accounts receivable and student status. The Company
applies reserves to its receivables based upon an estimate of the risk presented by the age of the receivables and student status. The
Company writes off account receivable balances of inactive students at the earlier of the time the balances were deemed uncollectible,
or one year after the revenue is generated. Bad debt expense is recorded as a general and administrative expense in the accompanying
statements of