Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 731

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 4
Chunk 731
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 tax of 8.84% or AMT of 6.65%, depending on whether they claim net taxable income.

85

We
account 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 our 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.

Share
Based Compensation

The
Company utilizes ASC 718, Stock Compensation, related to accounting for share-based payments and, accordingly, records compensation
expense for share-based awards based upon an assessment of the grant date fair value for stock options and restricted stock awards. The
Company estimates the fair value of stock-based compensation awards on the date of grant using an option-pricing model. The value of
the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company’s
consolidated statements of operations. The Company estimates the fair value of stock-based compensation awards using the Black-Scholes
model. This model requires the Company to estimate the expected volatility and value of its common stock and the expected term of the
stock options, all of which are highly complex and subjective variables. The expected life was calculated based on the simplified method
as described by the SEC Staff Accounting Bulletin No. 110, Share-Based Payment. The Company’s estimate of expected volatility was
based on the volatility of peers. The Company has selected a risk-free rate based on the implied yield available on U.S. Treasury securities
with a maturity equivalent to the expected term of the options. The Company accounts for forfeitures upon occurrence.

Goodwill
and Other Indefinite-lived Assets

We
test goodwill and other indefinite-lived assets for impairment at least annually, or more frequently if events or changes in circumstances
indicate that the asset may be impaired. There were no goodwill or other indefinite-lived intangible asset impairments for the periods
presented, and based on current qualitative impairment tests, goodwill and other indefinite-lived intangible assets are not as risk of
failing.

Results
of Operations

Fiscal
Year Ended June 30, 2025 Compared to Fiscal Year Ended June 30, 2024

The
following table sets forth our consolidated statements of income (loss) data as a percentage of revenue for the years ended June 30,
2025 and 2024:

    Year ended June 30