Company: LGCY
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006418
Chunk: 9

Company: Legacy Education Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 Cash Equivalents

The
Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. These investments
are stated at cost, which approximates fair value.

Property
and Equipment

Property
and equipment are recorded at cost less accumulated depreciation. Depreciation is computed using the straight-line method. Normal repairs
and maintenance are expensed as incurred. Expenditures that materially extend the useful life of an asset are capitalized. Depreciation
is provided using the straight-line method over the estimated useful lives of the assets. Furniture and fixtures, machinery, computer
equipment, and vehicles generally have estimated useful lives of ten, seven, four, and five years, respectively. Leasehold improvements
are depreciated over the shorter of their lease term or their useful life.

Leases

The
Company accounts for leases in accordance with ASC Topic 842 Leases, which requires the recognition of assets and liabilities
by lessees for those leases classified as operating leases under GAAP. The Company determines if an arrangement is a lease at inception
and evaluates the lease agreement to determine whether the lease is a finance or operating lease. The guidance requires that a lessee
should recognize on the balance sheet a liability to make lease payments and a right-to-use asset representing the Company’s right
to use the underlying assets for the term of the lease. The guidance allows a lessee who enters into a lease with a term of 12 months
or less to make an accounting policy election by class of underlying assets not to recognize assets and liabilities. Rightof-use (“ROU”)
assets and lease liabilities are recognized at commencement date based on the present value of lease payment over the lease term. The
Company uses its incremental borrowing rate based on the information available at the commencement to determine the present value of
lease payments over the lease term. See Note 12 for more information about the Company’s lease-related obligations.

    F-7

Legacy
Education Inc.

Notes
to Consolidated Financial Statements

For
The Three and Six Months ended December 31, 2024 and 2023

(Unaudited)

Goodwill
and Intangibles

Goodwill
represents the excess of the purchase price over the fair market value of the net assets (including intangibles) acquired on December
31, 2019, January 15, 2019 and on December 18, 2024. The Company has implemented the Business Combinations Topic of the Financial Accounting
Stand