Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 713

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 3
Chunk 713
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 schools must satisfy in order to participate in
the various federal student financial assistance programs under Title IV of the Higher Education Act.

Composite
Score

As
described above, ED requires institutions to meet standards of financial responsibility. ED deems an institution financially responsible
when the composite score is at least 1.5. The Company’s composite score was 3.0 for the
fiscal year ended June 30, 2024. The composite score calculation for fiscal year ended June 30, 2025, has
not yet been completed as of the date of these financial statements and is due on December 31, 2025.

90/10
Disclosure

The
Company derives a substantial portion of its revenues from student financial aid received by its students under the Title IV programs
administered by ED pursuant to the Higher Education Act. To continue to participate in the student financial aid programs, the Company
must comply with the regulations promulgated under the Higher Education Act. The regulations restrict the proportion of cash receipts
for tuition and fees from eligible programs to not more than 90% from Title IV programs and other federal educational assistance funds
(the “90/10 revenue test”). If an institution fails to satisfy the test for one year, its participation status becomes provisional
for two consecutive fiscal years. If the test is not satisfied for two consecutive years, eligibility to participate in Title IV programs
is lost for at least two fiscal years. Using ED’s cash-basis, regulatory formula under the 90/10 revenue test, as in effect for
its 2024 fiscal year, HDMC, CCC and ICH derived  87.55%, 79.51% and 84.19% for its 90/10 revenue from Title IV program and other federal
educational assistance funds, respectively, for the fiscal year ended June 30, 2024. The 90/10 calculations for fiscal year ended June
30, 2025, for each of our institutions are due to ED on December 31, 2025.

Litigation

The
Company is unaware of any other pending or threatened litigation arising from services currently or formerly performed by the Company.
The Company is unaware of any possible claiming that could have a material adverse effect on the Company’s business, results of
operations or financial condition.

Note
18 – Subsequent Events

The Company has evaluated subsequent events and transactions that occurred up to the date the consolidated financial statements were issued.
Based upon this review,