Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 103

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 103
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 schools and have them certified by ED to participate in the Title IV Programs will be subject to the timing and outcome
of the application, review and approval processes and requirements of ED and the relevant state education agencies and accreditors and
could be impacted by any conditions or restrictions imposed by ED or other agencies on the institution under our ownership.

62

On
December 31, 2019, we entered into a Membership Interest Purchase Agreement with the sole member of Integrity. We purchased from the
sole member of Integrity on that date 24.5% of her interest and obtained an exclusive option to acquire her remaining membership interest
upon payment of $100, which was exercised on September 15, 2020. For purposes of our financial statements, our acquisition of Integrity
is deemed to have been effective as of December 31, 2019. We believe that a change in ownership and control of Integrity did not occur
until September 15, 2020 under the change in ownership and control standards of ED and the other educational agencies that regulate Integrity,
but these standards are subject to interpretation by the respective agencies. The review by ED of the change in ownership and control
of Integrity in connection with our acquisition of Integrity remains ongoing. Integrity currently holds a temporary provisional program
participation agreement with ED in connection with our acquisition of the institution, which has continued its Title IV Program participation
on a month-to-month basis pending ED’s approval of the change in ownership and control. If ED concludes that a change in ownership
or control of Integrity occurred prior to September 15, 2020, we could be subject to liabilities or other sanctions by ED, which could
have a material adverse effect on our business, financial condition, results of operations, and cash flows.

Legacy
Education Antioch, LLC, a wholly-owned subsidiary of Legacy LLC entered into the APA with the Company, Legacy Education, LLC, a wholly-owned
subsidiary of the Company, CCMCC, CCMCC Online and, solely with respect to certain portions of the APA, Stacey Orozco and Bulmaro Orozco,
the sole owners CCMCC and CCMCC Online. The CCMCC Transaction was consummated on December 18, 2024.

When
a company acquires an institution that is eligible to participate in the Title IV Programs, like CCMCC, the acquisition generally will
result in the institution undergoing a change of ownership resulting in a change of control as defined by ED and under