REVENUE RECOGNITION

12 Months Ended

Dec. 31, 2024

REVENUE RECOGNITION [Abstract]

REVENUE RECOGNITION

4. REVENUE RECOGNITION

Substantially all of our revenues are considered to be revenues from contracts with students. We determine standalone selling price based on the price at which the distinct services or goods are sold separately. The related accounts receivable balances are recorded in our balance sheets as student accounts receivable. We do not have significant revenue recognized from performance obligations that were satisfied in prior periods, and we do not have any transaction price allocated to unsatisfied performance obligations other than in our unearned tuition. We record revenue for students who withdraw from our schools only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. In addition, to reduce the amount of outstanding accounts receivable balances due from our students, the Company employs a continuous collection effort. Unearned tuition represents contract liabilities primarily related to our tuition revenue. We have assessed the costs incurred to obtain a contract with a student and determined them to be immaterial.

Unearned tuition in the amount of $30.6 million and $26.9 million is recorded in the current liabilities section of the accompanying Consolidated Balance Sheets as of December 31, 2024 and 2023, respectively. The change in this contract liability balance during the fiscal year ended December 31, 2024 is the result of payments received in advance of satisfying performance obligations, offset by revenue recognized during that period. Revenue recognized for the fiscal year ended December 31, 2024 that was included in the contract liability balance at the beginning of the year was $26.0 million.

The following table depicts the timing of revenue recognition by segment:

	Year ended December 31, 2024
	Campus Operations		Transitional		Consolidated
Timing of Revenue Recognition
Services transferred at a point in time	$	26,877	$	1,180	$	28,057
Services transferred over time		406,089		5,918		412,007
Total revenues	$	432,966	$	7,098	$	440,064

	Year ended December 31, 2023
	Campus Operations		Transitional		Consolidated
Timing of Revenue Recognition
Services transferred at a point in time	$	21,403	$	1,534	$	22,937
Services transferred over time		345,830		9,303		355,133
Total revenues	$	367,233	$	10,837	$	378,070

	Year ended December 31, 2022
	Campus Operations		Transitional		Consolidated
Timing of Revenue Recognition
Services transferred at a point in time	$	19,591	$	2,131	$	21,722
Services transferred over time		311,305		15,260		326,565
Total revenues	$	330,896	$	17,391	$	348,287