Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 459

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1A
Chunk 459
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5 and 2024

Note
14 - Warrants

Equity
Classified Warrants

September
2024 Common Stock Warrants

In
September 2024, the Company issued warrants to certain underwriters to purchase 143,750 shares of the Company’s common stock in
connection with the Company’s initial public offering for services provided. The warrants were immediately exercisable at a price
of $4.60 per share and have an expiration date of September 27, 2029. At issuance, the fair value of the warrants was determined to be
$227,700 using the Black-Scholes model. As the warrants are accounted for as an equity issuance cost, the fair value of the warrants
was recorded within additional paid-in capital on the Company’s consolidated balance sheets. The warrants are not remeasured in
future periods as they meets the conditions for equity classification.

The
Company valued the warrants, based on a Black-Scholes Option Pricing Method, which included the following inputs:

Schedule
of inputs for Warrant Fair Value measurement

    Expected term 
    5 years 
  
    Expected volatility 
     45%
  
    Risk-free interest rate 
     3.50%
  
    Expected dividend yield 
     0.00%

Note
15 - Share-Based Compensation Plans

Stock
Options

The
Company utilizes ASC 718, Stock Compensation, related to accounting for share-based payments and, accordingly, records compensation
expense for share-based awards based upon an assessment of the grant date fair value for stock options and restricted stock awards. The
Black Scholes option pricing model was used to estimate the fair value of the options granted. This option pricing model requires a number
of assumptions, of which the most significant are: expected stock price volatility, the expected pre-vesting forfeiture rate, and the
expected option term (the amount of time from the grant date until the options are exercised or expire). The Company estimated a volatility
factor utilizing a weighted average of comparable published volatilities of its peers. The Company applied the simplified method to determine
the expected term of stock-based compensation grants.

In
prior years, the Company had granted time vested options to purchase shares of common stock with exercise prices ranging from $0.52 -
$1.80 on the date of grant by the Board. These options vest ratably over a period of three years and expire ten years from the date of
grant and the fair value of these options were calculated using the Black-S