Company: LGCY
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010844
Chunk: 45

Company: Legacy Education Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 45
---
 the carrying amount of an asset to undiscounted future net cash flows expected to be generated by the assets. If such assets are considered
to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair
value of the assets. Fair value estimates are based on assumptions concerning the amount and timing of estimated future cash flows. We
had no long-lived asset impairments as of March 31, 2025 or June 30, 2024, respectively.

Income
taxes

GAAP
requires management to evaluate tax positions taken by us and recognize a tax liability if we have taken an uncertain position that is
more likely than not would be sustained upon examination by the Internal Revenue Service. Management has analyzed our tax positions and
believes there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in
the financial statement.

Corporate
tax applies to corporations and limited liability companies that elect to be treated as corporations. The federal income tax rate for
c-corporations is 21% and the state tax rate is 8.84%, and it applies to net taxable income from business activity in California.

Corporations
are not subject to the state’s franchise tax, but they are subject to the alternative minimum tax (“AMT”) of 6.65%,
which limits the effectiveness of a business writing off expenses against income to lower its corporate tax rate. C-corporations pay
the state corporate tax of 8.84% or AMT of 6.65%, depending on whether they claim net taxable income.

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