Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 687

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 3
Chunk 687
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and (v) recognize revenue when (or as) the Company satisfies a performance obligation.

The
Company identifies a contract for revenue recognition when there is approval and commitment from both parties, the rights of the parties
and payment terms are identified, the contract has commercial substance and the collectability of consideration is probable. The Company
evaluates each contract to determine the number of distinct performance obligations in the contract, which requires the use of judgment.
The Company’s contracts include promises for educational services and course materials which are distinct performance obligations.

Tuition
revenue is primarily derived from postsecondary education services provided to students. Generally, tuition and other fees are paid upfront
and recorded in contract liabilities in advance of the date when education services are provided to the student. A tuition receivable
is recorded for the portion of tuition not paid in advance. In some instances, installment billing is available to students which reduces
the amount of cash consideration received in advance of performing the service. The contractual terms and conditions associated with
installment billing indicate that the student is liable for the total contract price, therefore mitigating the Company’s exposure
to losses associated with nonpayment. Tuition revenue is recognized ratably over the instruction period. The Company generally uses the
time elapsed method, an input measure, as it best depicts the simultaneous consumption and delivery of tuition services. Revenue associated
with distinct course materials is recognized at the point of time when control transfers to the student, generally when the materials
are delivered to the student. Revenue associated with lab services is recognized over the period of time when the service is performed.

The
Company’s refund policy may permit students who do not complete a course to be eligible for a refund for the portion of the course
they did not attend. Refunds generally result in a reduction of deferred revenue during the period that the student drops or withdraws
from a class.

    F-9

Legacy
Education Inc.

Notes to Consolidated Financial Statements

For Fiscal Years ended June 30, 2025 and 2024

The
transaction price is stated in the contract and known at the time of contract inception, as such there is variable consideration for
situations when a student drops from a program based on the Company’s refund policy and additional charges if a student requires
additional hours to complete the program beyond the contracted end date. The Company believes that its experience with these situations
is of little predictive value because the future performance of students is dependent on each individual and the amount of variable consideration
is