Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 167

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 167
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 are uncollectable and then writes them
off.

Refunds

The
Company pays or credits refunds within 45 days of a student’s cancellation or withdrawal for students who have completed 60% or
less of the period of attendance based on a pro rata calculation. Once the student has completed more than 60% of a period of attendance,
all Title IV funds are considered earned and no refunds are due to ED.

Advertising

The
Company expenses advertising cost as incurred. Advertising costs amounted to $4,749,214 and $4,124,485 for the years ended June 30, 2025,
and 2024, respectively. Advertising costs are included in general and administrative expenses on the consolidated income statements.

    F-10

Legacy
Education Inc.

Notes to Consolidated Financial Statements

For Fiscal Years ended June 30, 2025 and 2024

Share-Based
Compensation

The
Company utilizes FASB ASC 718, Stock Compensation, related to accounting for share-based payments and, accordingly, records compensation
expense for share-based awards based upon an assessment of the grant date fair value for stock options and restricted stock awards. The
Company estimates the fair value of stock-based compensation awards on the date of grant using an option-pricing model. The value of
the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company’s
consolidated statements of operations. The Company estimates the fair value of stock-based compensation awards using the Black-Scholes
model. This model requires the Company to estimate the expected volatility and value of its common stock and the expected term of the
stock options, all of which are highly complex and subjective variables. The expected life was calculated based on the simplified method
as described by the SEC Staff Accounting Bulletin No. 110, Share-Based Payment. The Company’s estimate of expected volatility was
based on the volatility of peers. The Company has selected a risk-free rate based on the implied yield available on U.S. Treasury securities
with a maturity equivalent to the expected term of the options. The Company accounts for forfeitures upon occurrence.

Fair
Value of Financial Instruments

The
Company’s financial instruments primarily consist of cash and cash equivalents, accounts receivable, accounts payable and accrued
liabilities, deferred, unearned tuition, debt and finance lease obligations. The carrying values of the Company’s financial instruments
approximate fair value.

FASB
ASC 820, Fair Value