Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 254

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 8
Chunk 254
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 period presentation. These reclassifications
had no effect on reported consolidated net income.

Cash
and Cash Equivalents

The
Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. As of June
30, 2025 and 2024 approximately $10.38 million and $2.15 million, respectively, of cash equivalents was held in instruments
considered level 1 securities as defined in the “Fair Value of Financial Instruments” note below.

Property
and Equipment

Property
and equipment are recorded at cost less accumulated depreciation. Depreciation is computed using the straight-line method. Normal repairs
and maintenance are expensed as incurred. Expenditures that materially extend the useful life of an asset are capitalized. Depreciation
is provided using the straight-line method over the estimated useful lives of the assets. Furniture and fixtures, machinery, computer
equipment, and vehicles generally have estimated useful lives of ten, seven, four, and five years, respectively. Leasehold improvements
are depreciated over the shorter of their lease term or their useful life.

Leases

The
Company accounts for leases in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification
(“ASC”) Topic 842 Leases, which requires the recognition of assets and liabilities by lessees for those leases classified
as operating leases under GAAP. The Company determines if an arrangement is a lease at inception and evaluates the lease agreement to
determine whether the lease is a finance or operating lease. The guidance requires that a lessee should recognize on the balance sheet
a liability to make lease payments and a right-to-use asset representing the Company’s right to use the underlying assets for the
term of the lease. The guidance allows a lessee who enters into a lease with a term of 12 months or less to make an accounting policy
election by class of underlying assets not to recognize assets and liabilities. Right-of-use (“ROU”) assets and lease liabilities
are recognized at commencement date based on the present value of lease payment over the lease term. The Company uses its incremental
borrowing rate based on the information available at the commencement to determine the present value of lease payments over the lease
term. See Note 12 for more information about the Company’s lease-related obligations.

Goodwill
and Intangibles

The
Company has implemented the Business Combinations Topic FASB ASC 350, Intangibles - Goodwill and Other. Goodwill