Company: LGCY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022296
Chunk: 84

Company: Legacy Education Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 84
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, 2024, in connection with the initial public offering, the Company issued 375,000 common shares in
respect to the underwriters’ option to purchase up to an additional 375,000 shares of common stock to cover allotments.

On
December 18, 2024, the Company issued 118,906 common shares pursuant to the terms of the APA.

A
total of 89,602 stock options were exercised during the year ended June 30, 2025 at $3.74 per share.

As
of September 30, 2025 and June 30, 2025 the Company had 12,497,027 and 12,452,670 shares of common stock outstanding, respectively, and
no shares of preferred stock issued and outstanding.

Note
14 - Warrants

Equity
Classified Warrants

September
2024 Common Stock Warrants

In
September 2024, the Company issued warrants to certain underwriters to purchase 143,750 shares of the Company’s common stock in
connection with the Company’s initial public offering for services provided. The warrants were immediately exercisable at a price
of $4.60 per share and have an expiration date of September 27, 2029. At issuance, the fair value of the warrants was determined to be
$227,700 using the Black-Scholes model. As the warrants are accounted for as an equity issuance cost, the fair value of the warrants
was recorded within additional paid-in capital on the Company’s consolidated balance sheets. The warrants are not remeasured in
future periods as they meets the conditions for equity classification.

The
Company valued the warrants, based on a Black-Scholes Option Pricing Method, which included the following inputs:

Schedule
of inputs for Warrant Fair Value measurement

    Expected term 
     5
                                            years 
  
    Expected volatility 
     45%
  
    Risk-free interest rate 
     3.50%
  
    Expected dividend yield 
     0.00%

    F-19

Legacy
Education Inc.

Notes
to Condensed Consolidated Financial Statements

For
the three months ended September 30, 2025 and 2024

Note
15 - Share-Based Compensation Plans

Stock
Options

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