Company: LGCY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022296
Chunk: 120

Company: Legacy Education Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 120
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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
(“CODM”) 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. There are aspects of ASU 2023-07 that apply to entities with one reportable segment. The Company adopted this
guidance in the fiscal fourth quarter of 2025. The adoption of ASU 2023-07 is reflected in Note 2, “Summary of Significant Accounting
Policies - Segment Reporting.”.

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
(“APA”), Antioch acquired certain assets and assumed certain liabilities of CCMCC. Under the terms of the APA as consideration
for the sale, Antioch paid Sellers $6,600,000 subject to a working capital adjustment, entered into a $400,000 promissory note, described
in Note 10, and issued 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 was 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