Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 143

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 143
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 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, share-based compensation, legal and professional fees, insurance, accreditation
fees, and travel of employees engaged in corporate management, finance, human resources, compliance and other corporate functions. This
expense also includes marketing and advertising costs, which are expensed in the fiscal year incurred.

Depreciation
and amortization. This expense reflects depreciation and amortization of property and equipment, amortization of assets under capital
leases and amortization of intangible assets.

Interest
expense

This
expense reflects interest paid under notes issued to our investors, Internal Revenue Service interest, non-cash interest related to unit
option grants, interest related to notes associated with CCC, and other debt related interest.

Interest
income

This
income relates to interest received from investments.

Factors
Affecting Comparability

We
believe the following factors have had, or can be expected to have, a significant effect on the comparability of recent or future results
of operations:

Seasonality

Our
operations are generally subject to seasonal trends. We generally experience a seasonal increase in new enrollments during the first
quarter of our fiscal year, as well as during the third quarter each year, when most other colleges and universities begin their fall
semesters and subsequent to holiday break. While we enroll students throughout the year, our second quarter revenue generally is lower
than other quarters due to the holiday season.

84

Critical
Accounting Policies and Use of Estimates

The
discussion of our financial condition and results of operations is based upon our annual consolidated financial statements, which have
been prepared in accordance with GAAP. Critical accounting policies are those policies that, in management’s view, are most important
in the portrayal of our financial condition and results of operations. The footnotes to our annual consolidated financial statements
included elsewhere in this Annual Report on Form