Company: LGCY
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010844
Chunk: 13

Company: Legacy Education Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 13
---
 in
the transaction price or recognized as income until the constraint has been eliminated. Revenue is allocated to each performance obligation
based on its standalone selling price. Any discounts within the contract are allocated across all performance obligations unless observable
evidence exists that the discount relates to a specific performance obligation or obligations in the contract. The Company generally
determines standalone selling prices based on prices charged to students.

The
Company excludes from revenue taxes assessed by a governmental authority as these are agency transactions collected on their behalf from
the customer. Significant judgments include the allocation of the 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 nine months ended March 31, 2025 and 2024:

Schedule of Disaggregation of Revenue 

    2025  
    2024  
    2025  
    2024 

    For
                                            the Three Months Ended March
                                            31,  
    For
                                            the Nine Months Ended March
                                            31, 

    2025  
    2024  
    2025  
    2024 
  
    Tuition
    and lab fees (recognized over time) 
    $15,750,313  
    $10,099,834  
    $40,348,548  
    $27,554,512 
  
    Books,
    registration and other fees (recognized at a point in time) 
     2,827,252  
     2,229,831  
    5,869,242  
     5,693,384 
  
    Total
    revenue 
    $18,577,565  
    $12,329,665  
    $46,217,790  
    $33,247,896 

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