Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 501

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1B
Chunk 501
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Company amortizes intangible assets with definite lives on a straight-line basis.

Long-Lived
Assets

The
Company evaluates the recoverability of its long-lived assets for impairment, other than goodwill, whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by
a comparison of the carrying amount of an asset to undiscounted future net cash flows expected to be generated by the assets. If such
assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets
exceeds the fair value of the assets. Fair value estimates are based on assumptions concerning the amount and timing of estimated future
cash flows. The Company had no long-lived asset impairments as of June 30, 2025 and June 30, 2024.

Revenue
Recognition

Revenue
is recognized when control of promised goods or services is transferred to the Company’s customers in an amount of consideration
to which the Company expects to be entitled to in exchange for those goods or services. The Company follows the five steps approach for
revenue recognition under FASB ASC 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the
contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract,
and (v) recognize revenue when (or as) the Company satisfies a performance obligation.

The
Company identifies a contract for revenue recognition when there is approval and commitment from both parties, the rights of the parties
and payment terms are identified, the contract has commercial substance and the collectability of consideration is probable. The Company
evaluates each contract to determine the number of distinct performance obligations in the contract, which requires the use of judgment.
The Company’s contracts include promises for educational services and course materials which are distinct performance obligations.

Tuition
revenue is primarily derived from postsecondary education services provided to students. Generally, tuition and other fees are paid upfront
and recorded in contract liabilities in advance of the date when education services are provided to the student. A tuition receivable
is recorded for the portion of tuition not paid in advance. In some instances, installment billing is available to students which reduces
the amount of cash consideration received in advance of performing the service. The contractual terms and conditions associated with
installment billing indicate that the student is liable