Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 397

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1A
Chunk 397
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Our
future financial condition and results of operations could be materially adversely affected if we are required to write down the carrying
value of non-financial assets and non-financial liabilities, including long-lived assets, deferred tax assets and goodwill and intangible
assets, such as our trade names.

In
accordance with GAAP, we review our non-financial assets, including goodwill and indefinite-lived intangible assets, such as our trade
names, for impairment on at least an annual basis. We test goodwill for impairment at the reporting unit level on an annual basis on
June 30 for each fiscal year or more frequently if events or changes in circumstances indicate that the carrying amount of goodwill may
not be recoverable. If it is determined that the fair value is less than its carrying amount, the excess of the goodwill carrying amount
over the implied fair value is recognized as an impairment loss. We evaluate long-lived assets for impairment whenever events or changes
in circumstances indicate that their net book value may not be recoverable. When such factors and circumstances exist, we compare the
projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against
their respective carrying amount. Impairment, if any, is based on the excess of the carrying amount over the fair value, based on market
value when available, or discounted expected cash flows, of those assets and is recorded in the period in which the determination is
made. On an interim basis, we review our assets and liabilities to determine if a triggering event had occurred that would result in
it being more likely than not that the fair value would be less than the carrying amount for any of our reporting units or indefinite-lived
intangible assets. Our estimates of fair value for these are based primarily on projected future results and expected cash flows consistent
with our plans to manage the underlying businesses. However, should we encounter unexpected economic conditions or operational results
or need to take additional actions not currently foreseen to comply with current and future regulations, the assumptions used to calculate
the fair value of our assets, estimate of future cash flows, revenue growth, and discount rates, could be negatively impacted and could
result in an impairment of goodwill or other long-lived assets which could materially adversely affect our financial condition and results
of operations.

The
loss of our key personnel could harm us.

Our
future success depends largely on the skills, efforts and motivation of our executive officers and other key personnel, including LeeAnn
Rohmann