Company: LGCY
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006418
Chunk: 10

Company: Legacy Education Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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ards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and
Other.

Goodwill,
tradename, and accreditation are deemed to have an indefinite life, and course curriculum has a definite life of approximately 18 years.
Goodwill and indefinite life intangible assets are not amortized but are subject to, at a minimum, annual impairment tests. The Company
expenses costs to maintain or extend intangible assets as incurred.

The
Company reviews intangible assets (with a definite life), excluding goodwill, accreditation and tradenames, for impairment when events
or changes in circumstances indicate the carrying amount may not be recoverable. We measure the recoverability of these assets by comparing
the carrying amounts to the future undiscounted cash flows that the assets are expected to generate. If the carrying value of the assets
are not recoverable, the impairment recognized is measured as the amount by which the carrying value of the asset exceeds its fair value.
There were no impairments for the periods presented.

The
Company tests goodwill, accreditation and trade names for impairment at least annually, or more frequently if events or changes in circumstances
indicate that the asset may be impaired. There were no goodwill, accreditation or trade names impairments for the periods presented.

The
Company amortizes intangible assets with definite lives on a straight-line basis.

Long-Lived
Assets

The
Company evaluates the recoverability of its long-lived assets for impairment, other than goodwill, whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by
a comparison of the carrying amount of an asset to undiscounted future net cash flows expected to be generated by the assets. If such
assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets
exceeds the fair value of the assets. Fair value estimates are based on assumptions concerning the amount and timing of estimated future
cash flows. The Company had no long-lived asset impairments as of December 31, 2024 and June 30, 2024, respectively.

Revenue
Recognition

Revenue
is recognized when control of promised goods or services is transferred to the Company’s customers in an amount of consideration
to which the Company expects to be entitled to in exchange for those goods or services. The Company follows the five steps approach for
revenue recognition under ASC 606