Company: LGCY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022296
Chunk: 65

Company: Legacy Education Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 65
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s the fair value of the assets. Fair value estimates are based on assumptions concerning the amount and timing of estimated future
cash flows. The Company had no long-lived asset impairments as of September 30, 2025 and June 30, 2025.

Revenue
Recognition

Revenue
is recognized when control of promised goods or services is transferred to the Company’s customers in an amount of consideration
to which the Company expects to be entitled to in exchange for those goods or services. The Company follows the five steps approach for
revenue recognition under FASB ASC 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the
contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract,
and (v) recognize revenue when (or as) the Company satisfies a performance obligation.

The
Company identifies a contract for revenue recognition when there is approval and commitment from both parties, the rights of the parties
and payment terms are identified, the contract has commercial substance and the collectability of consideration is probable. The Company
evaluates each contract to determine the number of distinct performance obligations in the contract, which requires the use of judgment.
The Company’s contracts include promises for educational services and course materials which are distinct performance obligations.

    F-8

Legacy
Education Inc.

Notes
to Condensed Consolidated Financial Statements

For
the three months ended September 30, 2025 and 2024
 
Tuition
revenue is primarily derived from postsecondary education services provided to students. Generally, tuition and other fees are paid upfront
and recorded in contract liabilities in advance of the date when education services are provided to the student. A tuition receivable
is recorded for the portion of tuition not paid in advance. In some instances, installment billing is available to students which reduces
the amount of cash consideration received in advance of performing the service. The contractual terms and conditions associated with
installment billing indicate that the student is liable for the total contract price, therefore mitigating the Company’s exposure
to losses associated with nonpayment. Tuition revenue is recognized ratably over the instruction period. The Company generally uses the
time elapsed method, an input measure, as it best depicts the simultaneous consumption and delivery of tuition services. Revenue associated
with distinct course materials is recognized at the point of time when control transfers to the student, generally when the materials
are delivered to the student. Revenue