Company: LGCY
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006418
Chunk: 71

Company: Legacy Education Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 8
Chunk 71
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, 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 year. The working capital adjustment is required to equal zero on the transaction date and includes certain acquired
assets and assumed liabilities. As of the date of this report, the net working capital adjustment has been determined to be $466,920
for a total purchase price of $7,533,080.

The
acquisition was accounted for in accordance with the acquisition method of accounting. Under this method, the cost of the target is
allocated to the identifiable assets acquired and liabilities assumed based on their estimated fair values at the date of
acquisition. The excess estimated fair values of the identifiable net assets over the amount paid was $7,296,057,
which has been allocated between goodwill and other intangible assets and is included on the accompanying consolidated balance
sheet.

The
following is a summary of the estimated fair values of the assets acquired and liabilities assumed at the date of the acquisition:

 Schedule of Assets and Liabilities Acquisition