Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 796

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 5
Chunk 796
---
 multiple disbursements before we earn a significant portion of tuition and
fees and incur related expenses over the period of instruction. Students must apply for new Title IV Program loans and grants each academic
year. These factors, together with the timing of our students beginning their programs, affect our operating cash flow.

Financial
responsibility

Based
on the most recent fiscal year-end financial statements, we satisfied the composite score requirement of the financial responsibility
test which institutions must satisfy in order to participate in the Title IV Programs.

87

Cash
Flow Activities for the Years Ended June 30, 2025 and 2024

Operating
activities

Net cash provided by operating activities was approximately
$7.8 million in fiscal year 2025, and net cash provided in operating activities was approximately $1.6 million in fiscal 2024 primarily
due to an increase to net income of $2.4 million and the increase in collections related to accounts receivable in fiscal 2025.

Investing
activities

Net
cash used in investing activities was approximately $7.0 million in fiscal year 2025 and approximately $0.4 million in fiscal year 2024,
an increase of approximately $6.6 million due primarily to cash paid for the acquisition of CCMCC.

Financing
activities

Net
cash used provided by financing activities was approximately $9.1 million in fiscal year 2025 primarily due to proceeds from the Company’s
IPO. Net cash used in financing activities was approximately $0.2 million in fiscal year 2024 due to repayments of debt.

Financings

    ●
     
    From
    July 2024 to September 2024, the Company issued 2,500,000 shares of common stock in its initial public offering at a price of $4.00
    per share for gross proceeds of $10,000,000.

    ●
     
    From
    October 2024 to December 2024, the Company issued 375,000 shares of common stock pursuant to the exercise of the over-allotment option
    by the underwriters in connection with the initial public offering at a price of $4.00 per share for gross proceeds of $1,500,000.

Impact
of Inflation

We
believe that inflation has not had a material impact on our results of operations for the fiscal years ended 2025 and 2024. There can
be no assurance that future inflation will