Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 214

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 7A
Chunk 214
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 carrying values of the Company’s financial instruments
approximate fair value.

FASB
ASC 820, Fair Value Measurements (“ASC 820”) establishes a framework for all fair value measurements and expands disclosures
related to fair value measurement and developments. ASC 820 defines fair value as the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement date.

ASC
820 requires that assets and liabilities measured at fair value are classified and disclosed in one of the following three categories:

Level
1—Quoted market prices for identical assets or liabilities in active markets or observable inputs;

Level
2—Significant other observable inputs that can be corroborated by observable market data; and

Level
3—Significant unobservable inputs that cannot be corroborated by observable market data.

Concentration
of Credit Risk

A
substantial portion of revenues and ending accounts receivable at June 30, 2025 and June 30, 2024 are a direct result of the Company’s
participation in Financial Student Aid (“FSA”) programs, which represents a primary source of student tuition. The FSA programs
are subject to political budgetary considerations. There is no assurance that funding will be maintained at current levels. The FSA programs
are subject to significant regulatory requirements. Any regulatory violation could have a material effect on the Company.

The
Company maintains its cash and cash equivalents in various financial institutions. Accounts at these institutions are insured by the
Federal Deposit Insurance Corporation up to $250,000. The Company performs ongoing evaluations of these institutions to limit concentration
risk exposure. The Company maintains cash balances in excess of these limits from time to time.

As
of June 30, 2025 and June 30, 2024, $10.38 million and $2.15 million, respectively, was maintained in a redeemable money market account
bearing interest at approximately 4.5% per annum.

Commitments
and Contingencies

The
Company accrues for a contingent obligation when it is probable that a liability has been incurred and the amount is reasonably estimable.
When the Company becomes aware of a claim or potential claim, the likelihood of any loss exposure is assessed. If it is probable that
a loss will result and the amount of the loss is estimable, the Company records a liability for the estimated loss. If the loss is not
probable or the amount of the potential loss is not estimable, the Company