Company: LGCY
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010844
Chunk: 62

Company: Legacy Education Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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 the lease agreement to determine whether the lease is a finance or operating lease. The guidance requires that a lessee
should recognize on the balance sheet a liability to make lease payments and a right-to-use asset representing the Company’s right
to use the underlying assets for the term of the lease. The guidance allows a lessee who enters into a lease with a term of 12 months
or less to make an accounting policy election by class of underlying assets not to recognize assets and liabilities. Right-of-use (“ROU”)
assets and lease liabilities are recognized at commencement date based on the present value of lease payment over the lease term. The
Company uses its incremental borrowing rate based on the information available at the commencement to determine the present value of
lease payments over the lease term. See Note 12 for more information about the Company’s lease-related obligations.

    F-7

Legacy
Education Inc.

Notes
to Condensed Consolidated Financial Statements

For
The Three and Nine Months ended March 31, 2025 and 2024

(Unaudited)

Goodwill
and Intangibles

Goodwill
represents the excess of the purchase price over the fair market value of the net assets (including intangibles) acquired on December
31, 2019, January 15, 2019 and on December 18, 2024. The Company has implemented the Business Combinations Topic of the Financial Accounting
Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and
Other.

Goodwill,
tradename, and accreditation are deemed to have an indefinite life, and course curriculum has a definite life of approximately 18 years.
Goodwill and indefinite life intangible assets are not amortized but are subject to, at a minimum, annual impairment tests. The Company
expenses costs to maintain or extend intangible assets as incurred.

The
Company reviews intangible assets (with a definite life), excluding goodwill, accreditation and tradenames, for impairment when events
or changes in circumstances indicate the carrying amount may not be recoverable. We measure the recoverability of these assets by comparing
the carrying amounts to the future undiscounted cash flows that the assets are expected to generate. If the carrying value of the assets
are not recoverable, the impairment recognized is measured as the amount by which the carrying value of the asset exceeds its fair value.
There were no impairments for the periods presented.

The
Company tests goodwill, accreditation and trade