Company: LGCY
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010844
Chunk: 83

Company: Legacy Education Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 83
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 2025 and 2024

(Unaudited)

During
the three months ended December 31, 2024, 10,044 stock options were exercised at $3.74 per share of common stock.

During
the three months ended December 31, 2024, the Company issued 375,000 common shares in respect to the underwriters’ option to purchase
up to an additional 375,000 shares of common stock to cover allotments.

On
December 18, 2024, the Company issued 118,906 common shares pursuant to the terms of the APA.

A
total of 7,445 stock options were exercised in February 2025 at $3.74 per share.

No
shares were issued during the nine months ended March 31, 2024.

As
of March 31, 2025 and June 30, 2024 the Company had 12,380,557 and 9,291,149 shares of common stock outstanding, respectively, and no
shares of preferred stock issued and outstanding.

Note
14 - Warrants

Equity
Classified Warrants

September
2024 Common Stock Warrants

In
September 2024, the Company issued warrants to certain underwriters to purchase 143,750 shares of the Company’s common stock in
exchange for services provided in obtaining financing upon IPO. The warrant was immediately exercisable at a price of $4.60 per share
and has an expiration date of September 2029. At issuance, the fair value of the warrant was determined to be $227,700 using the Black-Scholes
model. As the warrant is accounted for as an equity issuance cost, the fair value of the warrant was recorded within additional paid-in
capital on the Company’s consolidated balance sheets. The warrant is not remeasured in future periods as it meets the conditions
for equity classification.

The
Company valued the warrants, based on a Black-Scholes Option Pricing Method, which included the following inputs:

Schedule
of inputs for Warrant Fair Value measurement

    Expected
    term 
    5
    years 
  
    Expected
    volatility 
     45%
  
    Risk-free
    interest rate 
     3.50%
  
    Expected
    dividend yield 
     0.00%

Note
15 - Share-Based Compensation Plans

Stock
Options

The
Company utilizes ASC 718, Stock Compensation, related to accounting for share-based payments and,