Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 690

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 3
Chunk 690
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 and administrative expenses on the consolidated income statements.

    F-10

Legacy
Education Inc.

Notes to Consolidated Financial Statements

For Fiscal Years ended June 30, 2025 and 2024

Share-Based
Compensation

The
Company utilizes FASB 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.

Fair
Value of Financial Instruments

The
Company’s financial instruments primarily consist of cash and cash equivalents, accounts receivable, accounts payable and accrued
liabilities, deferred, unearned tuition, debt and finance lease obligations. The carrying values of the Company’s financial instruments
approximate fair value.

FASB
ASC 820, Fair Value Measurements (“ASC 820”) establishes a framework for all fair value measurements and expands disclosures
related to fair value measurement and developments. ASC 820 defines fair value as the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement date.

ASC
820 requires that assets and liabilities measured at fair value are classified and disclosed in one of the following three categories:

Level
1—Quoted market prices for identical assets or liabilities in active markets or observable inputs;

Level
2—Significant other observable inputs that can be corroborated by observable market data; and

Level
3—Significant unobservable inputs that cannot be corrobor