Company: LGCY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022296
Chunk: 40

Company: Legacy Education Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 8
Chunk 40
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 10-K “Education Regulations –
Congressional Action.” We cannot predict whether ED will modify the gainful employment and financial value transparency rules as
a result of the negotiated rulemaking, nor can we predict the timing, scope, and final content of any regulations ED may issue on these
or other topics. The implementation of recent or amended financial value transparency and gainful employment regulations and new laws
and regulations related to other accountability measures could require us to modify or eliminate certain programs to comply with the new
laws and regulations and could result in the loss of eligibility for some or all Title IV Programs for programs that fail to comply with
the regulations which could have a material adverse effect on our student population and our revenues.

4

Key
Financial Metrics

Revenue

Tuition
revenue is primarily derived from postsecondary education services provided to students. Generally, tuition and other fees are paid upfront
and recorded in contract liabilities in advance of the date when education services are provided to the student. A tuition receivable
is recorded for the portion of tuition not paid in advance. In some instances, instalment billing is available to students which reduces
the amount of cash consideration received in advance of performing the service. The contractual terms and conditions associated with
instalment billing indicate that the student is liable for the total contract price, therefore mitigating the Company’s exposure
to losses associated with nonpayment. Tuition revenue is recognized ratably over the instruction period. The Company generally uses the
time elapsed method, an input measure, as it best depicts the simultaneous consumption and delivery of tuition services. Revenue associated
with distinct course materials is recognized at the point of time when control transfers to the student, generally when the materials
are delivered to the student. Revenue associated with lab services is recognized over the period of time when the service is performed.

Enrollments

Enrollments
are a function of the number of continuing students at the beginning of each period and new enrollments during the period, offset by
students who either graduated or withdrew during the period.

Costs
and expenses

Educational
service. This expense consists primarily of costs related to the administration and delivery of educational programs by our academic
institutions. This expense category includes salaries, benefits, share-based compensation, student books, student supplies and occupancy
costs.

General
and administrative. This expense includes bad debt expense, legal and professional fees, insurance, accreditation
fees, and travel of employees engaged in corporate management, finance, human resources,