Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 930

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 7
Chunk 930
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icipate in the Financial Student Aid programs by the Department of Education (“ED”) following the consummation of the
transaction discussed below in Note 3. CCMCC offers vocational nursing, surgical technology, sterile processing technician, medical assisting,
diagnostic medical sonography, EKG/ECG technician, and medical administrative assistant/billing and coding specialist programs.

The
accompanying consolidated financial statements, and all per share information contained herein, have been retroactively adjusted to reflect
the reverse stock split described in Note 13.

    F-7

Legacy
Education Inc.

Notes to Consolidated Financial Statements

For Fiscal Years ended June 30, 2025 and 2024

Note
2 – Summary of Significant Accounting Principals

Principal
of Consolidation

The
audited consolidated financial statements include the accounts of HDMC and its wholly-owned subsidiaries, CCC, Integrity and CCMCC.
All significant intercompany balances and transactions have been eliminated in consolidation.

Use
of Estimates

The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”)
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the assumptions
used in the evaluation of the Company’s distinct performance obligations, the valuation of equity instruments and allowance for
credit losses related to accounts receivable.

Reclassifications

Certain
amounts in the prior period financial statements have been reclassified to conform to the current 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