Company: LGCY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022296
Chunk: 66

Company: Legacy Education Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 66
---
 associated with lab services is recognized over the period of time when the service is performed.

The
Company’s refund policy may permit students who do not complete a course to be eligible for a refund for the portion of the course
they did not attend. Refunds generally result in a reduction of deferred revenue during the period that the student drops or withdraws
from a class.

The
transaction price is stated in the contract and known at the time of contract inception, as such there is variable consideration for
situations when a student drops from a program based on the Company’s refund policy and additional charges if a student requires
additional hours to complete the program beyond the contracted end date. The Company believes that its experience with these situations
is of little predictive value because the future performance of students is dependent on each individual and the amount of variable consideration
is highly susceptible to factors outside of the Company’s influence. Accordingly, no variable consideration has been included in
the transaction price or recognized as income until the constraint has been eliminated. Revenue is allocated to each performance obligation
based on its standalone selling price. Any discounts within the contract are allocated across all performance obligations unless observable
evidence exists that the discount relates to a specific performance obligation or obligations in the contract. The Company generally
determines standalone selling prices based on prices charged to students.

The
Company excludes from revenue taxes assessed by a governmental authority as these are agency transactions collected on their behalf from
the customer. Significant judgments include the allocation of the contract price across performance obligations, the methodology for
earning tuition ratably over the instruction period, estimates for the amount of variable consideration included in the transaction price
as well as the determination of the impact of the constraints preventing the variable consideration from being recognized in revenue.

Disaggregation
of Revenue

The
tuition and related revenue consist of the following during the three months ended September 30, 2025 and 2024:

Schedule of Disaggregation
of Revenue

    2025  
    2024 
  
    Tuition and lab fees (recognized
    over time) 
    $16,921,803  
    $12,120,857 
  
    Books, registration and other fees (recognized
    at a point in time) 
     2,479,220  
     1,884,234 
  
    Total revenue 
    $19,401,023  
    $14,005,091 

Segment
Reporting

The
Company operates