Company: LGCY
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010844
Chunk: 14

Company: Legacy Education Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 for doubtful accounts based on an analysis of
its historical bad debt experience, current economic trends, and the aging of the accounts receivable and student status. The Company
applies reserves to its receivables based upon an estimate of the risk presented by the age of the receivables and student status. The
Company writes off account receivable balances of inactive students at the earlier of the time the balances were deemed uncollectible,
or one year after the revenue is generated. Bad debt expense is recorded as a general and administrative expense in the accompanying
statements of operations. The Company performs an analysis annually to determine which accounts are uncollectable and then writes them
off.

    F-9

Legacy
Education Inc.

Notes
to Condensed Consolidated Financial Statements

For
The Three and Nine Months ended March 31, 2025 and 2024

(Unaudited)

Refunds

The
Company pays or credits refunds within 45 days of a student’s cancellation or withdrawal for students who have completed 60% or
less of the period of attendance based on a pro rata calculation. Once the student has completed more than 60% of a period of attendance,
all Title IV funds are considered earned and no refunds are due to ED.

Advertising

The
Company expenses advertising cost as incurred. Advertising costs amounted to $3,480,968 and $3,028,944 during the nine months ended March
31, 2025, and 2024, respectively. Advertising costs amounted to $1,153,593 and $937,440 during the three months ended March 31, 2025,
and 2024, respectively. Advertising costs are included in the general and administrative on the consolidated income statements.

Share-Based
Compensation

The
Company utilizes ASC 718, Stock Compensation, related to accounting for share-based payments and, accordingly, records compensation
expense for share-based awards based upon an assessment of the grant date fair value for stock options and restricted stock awards. The
Company estimates the fair value of stock-based compensation awards on the date of grant using an option-pricing model. The value of
the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company’s
consolidated statements of operations. The Company estimates the fair value of stock-based compensation awards using the Black-Scholes
model. This model requires the Company to estimate the expected volatility and value of its common stock and the expected term of the