Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 189

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 189
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components of the Company’s deferred income tax assets included in deferred income taxes, non-current on the balance sheets are
as follows:

Schedule of Deferred Income Tax Assets and Liabilities

    June 30, 2025  
    June 30, 2024 
  
    Deferred tax assets: 

    Lease liability and deferred rent 
    $4,492,549  
    $72,000 
  
    Allowance for doubtful accounts 
     503,900  
     206,000 
  
    Accrued bonuses and vacation 
     582,994  
     492,000 
  
    Non-cash compensation 
     109,633  
     562,000 
  
    Deferred tax assets gross 
     5,689,076  
     1,332,000 
  
    Valuation allowance 
     -  
     - 
  
    Deferred tax assets 
     5,689,076  
     1,332,000 

    Deferred tax liability: 

    Right of use asset 
     (4,503,369) 

    Property and equipment and intangible assets 
     (790,161) 
     (434,000)
  
    Deferred tax liability 
     (5,293,530) 
     (434,000)

    Net deferred tax asset 
    $395,546  
    $898,000 

The
Company is subject to taxation in the United States and the state of California. As of June 30, 2024, the earliest tax year still subject
to examination for federal purposes is the fiscal year ended June 30, 2022 and state purposes is the fiscal year ended June 30, 2021.

    F-22

 Legacy
Education Inc.

Notes to Consolidated Financial Statements

For Fiscal Years ended June 30, 2025 and 2024

Note
17 - Other Commitments and Contingency

Regulatory

In
order for students to participate in Title IV federal financial aid programs, the Company is required to maintain certain standards of
financial responsibility and administrative capability. In addition, the Company’s institutions are accredited by ACCET or ABHES
and approved by other agencies and must comply with the applicable rules and regulations of the accrediting body and other agencies.
As a result, the Company may be subject from time to time to audits, investigations, claims of noncom