Company: LGCY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022296
Chunk: 86

Company: Legacy Education Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 86
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 – September 30, 2025, unvested 
     785,183  
    $5.58  
    $3.42  
     9.12 

The
Company valued options issued in April 2024 using the Black Scholes model utilizing volatility 45%, and a risk-free rate of 4.18%. The
fair value of the options was $1.84 per option.

The
Company valued options issued in September 2024 using the Black Scholes model utilizing volatility 45%, and a risk-free rate of 3.75%.
The fair value of the options was $1.94 per option.

The
Company valued options issued in April 2025 using the Black Scholes model utilizing volatility 55%, and a risk-free rate of 4.01%. The
fair value of the options was $4.05 per option.

The
Company recorded share-based compensation expense of $269,246 and $67,031 during the three months ended September 30, 2025 and 2024,
respectively, which is included in educational services in the consolidated income statements. Unamortized compensation expense associated
with unvested options was $562,959 and $832,205 as of September 30, 2025 and June 30, 2025, respectively. The weighted average period
over which these costs are expected to be recognized is approximately 1.75 and 2.00 years.

Note
16 - Other Commitments and Contingency

Regulatory

In
order for students to participate in Title IV federal financial aid programs, the Company is required to maintain certain standards of
financial responsibility and administrative capability. In addition, the Company’s institutions are accredited by ACCET or ABHES
and approved by other agencies and must comply with the applicable rules and regulations of the accrediting body and other agencies.
As a result, the Company may be subject from time to time to audits, investigations, claims of noncompliance or lawsuits by governmental
agencies, regulatory bodies, or third parties. While there can be no assurance that such matters will not occur and if they do occur
will not have a material adverse effect on these financial statements, management believes that the Company has complied in all material
respects with all applicable regulatory requirements as of the date of the financial statements.

The
Company is subject to extensive regulation by federal and state governmental agencies and accrediting bodies. In particular, the Higher
Education