Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 569

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1C
Chunk 569
---
 market account
bearing interest at approximately 4.5% per annum.

Commitments
and Contingencies

The
Company accrues for a contingent obligation when it is probable that a liability has been incurred and the amount is reasonably estimable.
When the Company becomes aware of a claim or potential claim, the likelihood of any loss exposure is assessed. If it is probable that
a loss will result and the amount of the loss is estimable, the Company records a liability for the estimated loss. If the loss is not
probable or the amount of the potential loss is not estimable, the Company will disclose the claim if the likelihood of a potential loss
is reasonably possible and the amount of the potential loss could be material. Estimates that are particularly sensitive to future changes
include tax, legal, and other regulatory matters, which are subject to change as events evolve, and as additional information becomes
available during the administrative and litigation process. The Company expenses legal fees as incurred.

    F-11

 Legacy
Education Inc.

Notes to Consolidated Financial Statements

For Fiscal Years ended June 30, 2025 and 2024

Income
Taxes

GAAP
requires management to evaluate tax positions taken by the Company and recognize a tax liability if the Company has taken an uncertain
position that is more likely than not would be sustained upon examination by the Internal Revenue Service. Management has analyzed the
Company’s tax positions and believes there are no uncertain positions taken or expected to be taken that would require recognition
of a liability or disclosure in the financial statement.

The
Company accounts for income taxes payable or refundable for the current year and deferred tax assets and liabilities for future tax consequences
of events that have been recognized in the Company’s financial statements or tax returns. Deferred tax assets and liabilities are
measured using enacted tax rates in effect for the year in which the temporary differences are expected to be realized.

The
Company expenses penalties and interest related to federal and state income taxes as incurred. Penalties, if any, are included in general
and administrative expenses on the income statement. The estimated federal and state effective tax rates are 21% and 8.84%, respectively.

Emerging
Growth Company

The
Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the
“Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012, or the JOBS Act