Company: LGCY
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010844
Chunk: 173

Company: Legacy Education Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 173
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 population and our institutions, including the need to cease offering a number
of programs.

Key
Financial Metrics

Revenue

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, instalment 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
instalment 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 associated with lab services is recognized over the period of time when the service is performed.

Enrollments

Enrollments
are a function of the number of continuing students at the beginning of each period and new enrollments during the period, offset by
students who either graduated or withdrew during the period.

Costs
and expenses

Educational
service. This expense consists primarily of costs related to the administration and delivery of educational programs by our academic
institutions. This expense category includes salaries, benefits, share-based compensation, student books, student supplies and occupancy
costs.

4

General
and administrative. This expense includes bad debt expense, share-based compensation, legal and professional fees, insurance, accreditation
fees, and travel of employees engaged in corporate management, finance, human resources, compliance and other corporate functions. This
expense also includes marketing and advertising costs, which are expensed in the fiscal year incurred.

Depreciation
and amortization. This expense reflects depreciation and amortization of property and equipment, amortization of assets under capital
leases and amortization of intangible assets.

Interest
expense

This
expense reflects interest paid under notes issued to our investors, IRS interest, non-cash interest related to unit option grants, interest
related to notes associated with CCC, and other debt related interest.

Interest
income

This
income relates to interest received from investments.

Factors
Affect