Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 626

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 2
Chunk 626
---
 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.

The
Company’s refund policy may permit students who do not complete a course to be eligible for a refund for the portion of the course
they did not attend. Refunds generally result in a reduction of deferred revenue during the period that the student drops or withdraws
from a class.

    F-9

Legacy
Education Inc.

Notes to Consolidated Financial Statements

For Fiscal Years ended June 30, 2025 and 2024

The
transaction price is stated in the contract and known at the time of contract inception, as such there is variable consideration for
situations when a student drops from a program based on the Company’s refund policy and additional charges if a student requires
additional hours to complete the program beyond the contracted end date. The Company believes that its experience with these situations
is of little predictive value because the future performance of students is dependent on each individual and the amount of variable consideration
is highly susceptible to factors outside of the Company’s influence. Accordingly, no variable consideration has been included in
the transaction price or recognized as income until the constraint has been eliminated. Revenue is allocated to each performance obligation
based on its standalone selling price. Any discounts within the contract are allocated across all performance obligations unless observable
evidence exists that the discount relates to a specific performance obligation or obligations in the contract. The Company generally
determines standalone selling prices based on prices charged to students.

The
Company excludes from revenue taxes assessed by a governmental authority as these are agency transactions collected on their behalf from
the customer. Significant judgments include the allocation of the contract price across performance obligations, the methodology for
earning tuition ratably over the instruction period, estimates for the amount of variable consideration included in the transaction price
as well as the determination of the impact of the constraints preventing the variable consideration from being recognized in revenue.

Disaggregation
of Revenue

The
tuition and related revenue consist of the following during the years ended June