Company: LGCY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022296
Chunk: 73

Company: Legacy Education Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 73
---
 in the fiscal fourth quarter of 2025. The adoption of ASU 2023-07 is reflected in Note 2, “Summary of Significant Accounting
Policies - Segment Reporting.”.

Note
3 – Acquisition

On
December 18, 2024, Antioch completed its acquisition of CCMCC for a base purchase price of $8,000,000. Under the asset purchase agreement
(“APA”), Antioch acquired certain assets and assumed certain liabilities of CCMCC. Under the terms of the APA as consideration
for the sale, Antioch paid Sellers $6,600,000 subject to a working capital adjustment, entered into a $400,000 promissory note, described
in Note 10, and issued 118,906 shares of HDMC’s common stock with a combined value equivalent to $1,000,000 held in an escrow account
for a period of one year. The working capital adjustment was required to equal zero on the transaction date and includes certain acquired
assets and assumed liabilities. As of the date of this report, the net working capital adjustment has been determined to be $466,920
for a total purchase price of $7,533,080.

The
acquisition was accounted for in accordance with the acquisition method of accounting. Under this method, the cost of the target is allocated
to the identifiable assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The excess
estimated fair values of the identifiable net assets over the amount paid was $7,738,750 which has been allocated between goodwill and
other intangible assets and is included on the accompanying consolidated balance sheet.

The
following is a summary of the estimated fair values of the assets acquired and liabilities assumed at the date of the acquisition:

 Schedule of Assets and Liabilities Acquisition

    Current and other assets 
    $2,157,783 
  
    Property and equipment 
     483,036 
  
    Total assets acquired 
     2,640,819 
  
    Liabilities assumed (excluding debt - see Note
    9) 
     (2,846,489)
  
    Net assets acquired 
    $(205,670)

    Purchase price 
    $7,533,080 

    Trade name 
    $940,000 
  
    Accreditation 
     1,730,000 
  
    Course Curriculum 
     146,000 
  
    Goodwill 
     4