Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 279

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 8
Chunk 279
---
 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 $552,800 and $1,882,076 during the years ended June 30, 2025 and 2024, respectively,
which is included in educational services in the consolidated income statements. Unamortized compensation expense associated with unvested
options was $832,205 and $737,333 as of June 30, 2025 and June 30, 2024, respectively. The weighted average period over which these costs
are expected to be recognized is approximately 2.00 and 2.75 years.

    F-21

 Legacy
Education Inc.

Notes to Consolidated Financial Statements

For Fiscal Years ended June 30, 2025 and 2024

Note
16 - Income Tax

The
Company has deferred tax assets and liabilities that reflect the net tax effects of temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets are subject
to periodic recoverability assessments. Realization of the deferred tax assets, net of deferred tax liabilities is principally dependent
upon achievement of projected future taxable income.

Based
upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets
are deductible, management believes it is more likely than not that the Company will realize the benefits of these deductible differences.
The Company has no valuation allowance as of June 30, 2025.

On
December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was signed into law. For businesses, the Act reduces the corporate
federal tax rate from a maximum of 35% to a flat 21% rate. The rate reduction took effect on January 1, 2018.