Company: LGN
Filing Date: 2025-12-09
Form Type: S-1
Source: 0001193125-25-312729
Chunk: 28

Company: Legence Corp.
Filing Date: 2025-12-09
Form: S-1
Chunk 28
---
 and Ceridian Dayforce.                                     |

| (5) | Represents (i) consulting costs associated with rebranding efforts in connection with our name change to                                                                                                                                         
 Legence that we do not expect to recur in the future, (ii) upfront consulting and out-of-pocket costs related to developing and launching the cross-selling                                                                                      
 framework amongst our brands, many of which were more recently acquired and integrated into the Legence brand, (iii) consulting and legal fees associated with education and marketing efforts for our clients with respect to utilizing certain 
 government incentive programs and (iv) consulting, legal, accounting, and other expenses in connection with non-recurring extraordinary company transactions, including fees related to our IPO that did not                                     
 meet the requirements to be deferred issuance costs.                                                                                                                                                                                             |

| (6) | Black Bear Energy, Inc., our subsidiary (“Black Bear”), helps businesses and real estate owners                                                                                                                                                         
 procure on-site generation and storage systems for their buildings. Black Bear receives compensation for its services from project developers who pay Black Bear a fee if they are selected to provide the system                                       
 for the client. The fee is typically earned and paid when the client enters into a binding contract with the project developer and permits to begin construction have been issued. If a contract is not signed or permits are not issued, Black Bear is 
 typically not owed a fee from the project developer. In the fourth quarter of 2023, a project developer who had been selected for a large number of projects by Black Bear’s clients offered to immediately pay Black Bear all of the fees that         
 Black Bear would earn in the future if all of the projects received permits, provided that Black Bear would agree to discount the fee amounts. Black Bear agreed to discount the fee amounts and recorded significantly higher revenues than would be   
 typical in a quarter. Given the unique nature of the transaction, we consider it to be non-recurring in nature. This adjustment is to eliminate the approximately $7.4 million profit we recorded from the                                              
 transaction.                                                                                                                                                                                                                                            |

| (7) | Refer to “Note 18—Commitments and Contingencies” in the Notes to Consolidated Financial 
 Statements, for details on the nature of the settlement.                                |

17

RISK FACTORS

Investing in our Class A Common Stock involves risks. The information in this prospectus should be considered carefully, including the matters addressed under “Cautionary Note Regarding Forward-Looking Statements,” and the following risks, before making an investment decision. The risks and uncertainties described