Company: LGCY
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010844
Chunk: 20

Company: Legacy Education Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 in an escrow account for
a period of one year. The working capital adjustment is 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 $7,265,944, 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 
    $682,689 
  
    Property
    and equipment 
     483,036 
  
    Total
    assets acquired 
     1,165,725 
  
    Liabilities
    assumed (excluding debt - see Note 9) 
     (898,589)
  
    Net
    assets acquired 
    $267,136 

    Purchase price 
    $7,533,080 

    Trade
    name 
    $1,900,000 
  
    Accreditation 
     200,000 
  
    Course
    Curriculum 
     500,000 
  
    Goodwill 
     4,665,944 
  
    Total
    excess purchase price 
    $7,265,944 

The
amounts recorded above related to the acquisition are subject to adjustment as the Company has not yet completed the final allocation
of the purchase price. The Company has one year from the date of acquisition to complete its valuation of assets and liabilities assumed.

Following
are the supplemental consolidated financial results of the Company and CCMCC on an unaudited pro forma basis, as if the acquisitions
had been consummated as of the beginning of the fiscal year 2024 (i.e., July 1, 2023).

 Schedule of Revenue and Net Income from Subsidiary 

    2024  
    2023  
    2024  
    2023 

    For