Company: LGCY
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010844
Chunk: 96

Company: Legacy Education Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 96
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 Revenue associated with lab services is recognized over the period of time when the service is performed.

Enrollments

Enrollments
are a function of the number of continuing students at the beginning of each period and new enrollments during the period, offset by
students who either graduated or withdrew during the period.

Costs
and expenses

Educational
service. This expense consists primarily of costs related to the administration and delivery of educational programs by our academic
institutions. This expense category includes salaries, benefits, share-based compensation, student books, student supplies and occupancy
costs.

4

General
and administrative. This expense includes bad debt expense, share-based compensation, legal and professional fees, insurance, accreditation
fees, and travel of employees engaged in corporate management, finance, human resources, compliance and other corporate functions. This
expense also includes marketing and advertising costs, which are expensed in the fiscal year incurred.

Depreciation
and amortization. This expense reflects depreciation and amortization of property and equipment, amortization of assets under capital
leases and amortization of intangible assets.

Interest
expense

This
expense reflects interest paid under notes issued to our investors, IRS interest, non-cash interest related to unit option grants, interest
related to notes associated with CCC, and other debt related interest.

Interest
income

This
income relates to interest received from investments.

Factors
Affecting Comparability

We
believe the following factors have had, or can be expected to have, a significant effect on the comparability of recent or future results
of operations:

Seasonality

Our
operations are generally subject to seasonal trends. We generally experience a seasonal increase in new enrollments during the first
quarter of our fiscal year, as well as during the third quarter each year, when most other colleges and universities begin their fall
semesters and subsequent to holiday break. While we enroll students throughout the year, our second quarter revenue generally is lower
than other quarters due to the holiday season.

Critical
Accounting Policies and Use of Estimates

The
preparation of the financial statements included elsewhere in this Quarterly Report on Form 10-Q requires us to make estimates and assumptions
that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosures. We evaluate our estimates and assumptions
on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable
under the circumstances. Our actual results could differ from these estimates.

The
preparation