Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 984

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 8
Chunk 984
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 additional information becomes
available during the administrative and litigation process. The Company expenses legal fees as incurred.

    F-11

 Legacy
Education Inc.

Notes to Consolidated Financial Statements

For Fiscal Years ended June 30, 2025 and 2024

Income
Taxes

GAAP
requires management to evaluate tax positions taken by the Company and recognize a tax liability if the Company has taken an uncertain
position that is more likely than not would be sustained upon examination by the Internal Revenue Service. Management has analyzed the
Company’s tax positions and believes there are no uncertain positions taken or expected to be taken that would require recognition
of a liability or disclosure in the financial statement.

The
Company accounts for income taxes payable or refundable for the current year and deferred tax assets and liabilities for future tax consequences
of events that have been recognized in the Company’s financial statements or tax returns. Deferred tax assets and liabilities are
measured using enacted tax rates in effect for the year in which the temporary differences are expected to be realized.

The
Company expenses penalties and interest related to federal and state income taxes as incurred. Penalties, if any, are included in general
and administrative expenses on the income statement. The estimated federal and state effective tax rates are 21% and 8.84%, respectively.

Emerging
Growth Company

The
Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the
“Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. As such, the Company
is eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public
companies that are not “emerging growth companies” including, but not limited to, not being required to comply with the
auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended, reduced disclosure obligations
regarding executive compensation in the Company’s periodic reports and proxy statements, and exemptions from the requirements
of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not
previously approved. If some investors find the securities less attractive as a result, there may be a less active trading market
for securities and the prices of securities may be more volatile.

In
addition, Section 107 of the JOBS Act also provides that an “emerging