Company: LGN
Filing Date: 2025-08-15
Form Type: S-1
Source: 0001193125-25-181698
Chunk: 318

Company: Legence Corp.
Filing Date: 2025-08-15
Form: S-1
Chunk 318
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31, 2023 and 2022, the Company had revenue
of $3.0 million and $6.0 million, respectively, related to contracts with entities associated with the Company and Sponsor.

As discussed in
“” and “”, in connection with certain business acquisitions, a portion of the contingent consideration was transferred to certain sellers who became
members of management of the Company.

As discussed in “”, the Company has various lease agreements with entities
owned by members of its management team and/or Parent interests holders.

As discussed in “”, a portion of the
Company’s term loan is held by entities associated with the Company and Sponsor. As discussed in “” and “”, the Company issued certain related party promissory
notes in connection with certain acquisitions.

Note 18—Commitments and Contingencies

Legal Proceedings

The Company is involved in various
claims and legal proceedings incidental to its normal business activities. When a potential loss from a proceeding or claim is considered probable and the amount can be reasonably estimated or a range of loss can be determined, a loss contingency is
recorded. The Company also provides disclosure when it is reasonably possible that a material loss will be incurred. Although the outcome of such claims and proceedings cannot be predicted with certainty, the Company vigorously defends its position
in all such matters. During the year ended December 31, 2023, the Company reached a $3.1 million settlement agreement, inclusive of administrative, legal and other fees, for a class action suit related to certain employee matters. Upon
court approval and other required administration activities, the settlement payment was made in March 2024. Liabilities of $3.1 million are included in Accrued compensation and benefits on the Consolidated Balance Sheet as of December 31,
2023. The Company is not aware of any known contingencies, claims or lawsuits that will have a material effect on its financial position, results of operations or cash flows other than those described herein.

Insurance

The Company carries various insurance policies
to address identified risks of loss including general liability, worker’s compensation, automobile liability and professional liability risks. As of December 31, 2024 and 2023, a liability for known and expected but not yet reported
claims of $2.6 million and $1.6 million, respectively, is reflected in Accrued and other current liabilities in the Consolidated Balance Sheets. The determination of such claims and expenses and the appropriateness of the related liability
is continually reviewed and updated