Company: LGCY
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006418
Chunk: 18

Company: Legacy Education Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 Accounting for Convertible Instruments and Contracts
in an Entity’s Own Equity. This ASU amends the guidance on convertible instruments and the derivatives scope exception for contracts
in an entity’s own equity, and also improves and amends the related earnings per share guidance for both Subtopics. The Company
adopted ASU 2020-06 on July 1, 2024 and it did not have a material impact on our consolidated financial statements and related disclosures.

In November 2023, the FASB issued Accounting Standards Update 2023-07, Segment
Reporting—Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires incremental disclosures
related to a public entity’s reportable segments. Required disclosures include, on an annual and interim basis, significant segment
expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit
or loss, an amount for other segment items (which is the difference between segment revenue less segment expenses and less segment profit
or loss) and a description of its composition, the title and position of the CODM, and an explanation of how the CODM uses the reported
measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The standard also permits
disclosure of more than one measure of segment profit. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and
interim periods within fiscal years beginning after December 15, 2024. We expect to adopt this policy effective for the fiscal year ended
June 30, 2025 and are currently evaluating the impact of adopting ASU 2023-07 on our financial statements.

Note
3: Acquisition

On
December 18, 2024, Antioch completed its acquisition of CCMCC for a base purchase price of $8,000,000. Under the asset purchase agreement,
Antioch acquired certain assets and assumed certain liabilities of CCMCC. Under the terms of the APA as consideration for the sale, Antioch
is to pay Sellers $6,600,000 subject to a working capital adjustment, enter into a $400,000 promissory note, described in Note 10, and
issuance of 118,906 shares of HDMC’s common stock with a combined value equivalent to $1,000,000 held in an escrow account for
a period of one