Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 188

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 188
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ederal tax rate from a maximum of 35% to a flat 21% rate. The rate reduction took effect on January 1, 2018. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences
are expected to be recovered or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted
though income tax expense.

The
components of income tax expense (benefit) are as follows:

Schedule of Components of Income Tax Expense (Benefit)

    June 30, 2025  
    June 30, 2024 
  
    Current: 

    Federal 
    $1,935,372  
    $1,779,079 
  
    State 
     1,050,770  
     821,531 
  
    Current income tax expense 
     2,986,142  
     2,600,610 
  
    Deferred: 

    Federal 
     403,941  
     (513,740)
  
    State 
     98,514  
     (216,260)
  
    Deferred income tax expense 
     502,455  
     (730,000)
  
    Total income tax expense 
    $3,488,597  
    $1,870,610 

Income
tax expense differed from the amount computed using the U.S. federal income tax rate of 21% for June 30, 2025 and 2024 as follows:

Schedule of Federal Income Tax Expense

    June 30, 2025  
    June 30, 2024 
  
    Statutory U.S. federal income tax 
    $2,314,794  
    $1,466,947 
  
    Non-deductible items 
     (123,961) 
     57,841 
  
    Change in deferred items 
     417,037  
     (303,187)
  
    Provision to return 
     -  
     (151,584)
  
    State income taxes, net of federal benefit 
     769,790  
     821,531 
  
    Other 
     110,937  
     (20,938)
  
    Income tax expense 
    $3,488,597  
    $1,870,610 

Significant