Company: LGCY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022296
Chunk: 67

Company: Legacy Education Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 67
---
 one reportable business segment offering career-focused, post-secondary education services to students at all stages
of adult life, from recent high school graduates to working parents, through its accredited academic institutions. The Company’s
primary revenue source is derived from educational programs and services provided at its colleges through tuition and lab fees as well
as fees for supporting educational programs such as books and registration costs.

Operating
as a cohesive educational services company, the Company offers its products and services in the State of California at a series of institutions,
using a centralized management approach for all educational services and support functions.

    F-9

Legacy
Education Inc.

Notes
to Condensed Consolidated Financial Statements

For
the three months ended September 30, 2025 and 2024
 
The
Chief Executive Officer (“CEO”) serves as the Chief Operating Decision Maker (“CODM”). The CODM evaluates the
Company’s performance based on consolidated net income. This measure aligns with the Company’s consolidated financial statements
and serves as the basis for resource allocation and performance assessment. The measure of segment assets is reported on the balance
sheet as total consolidated assets. The CODM monitors profitability and strategic growth initiatives on a consolidated basis, without
disaggregating profit or loss into separate operating segments. The Company determined there are no significant segment expenses that
require a separate disclosure. The consolidated net income is used to assess overall company performance, benchmark against industry
standards, and identify profitability trends, which guides resource allocation and investment in expansion and program upgrades. The
CODM also evaluates company performance using operating income. Operating income provides the CODM with a focused view of the Company’s
profitability excluding the effects of financing activities, tax strategies, and other non-operating items. This measure enables the
CODM to assess operational efficiency, monitor performance trends, and evaluate the effectiveness of strategies aimed at revenue generation
and cost management.

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 for doubtful accounts based on an analysis of
its historical bad debt experience, current economic trends, and the aging of the accounts receivable and student status. The Company
applies reserves to its receivables based upon an estimate of the risk presented