Company: LGCY
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010844
Chunk: 168

Company: Legacy Education Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 168
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 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 the rules of other
educational agencies and accreditors. Upon such a change, an institution’s eligibility to participate in the Title IV Programs
is generally suspended until it has applied for recertification by ED as an eligible school under its new ownership, which requires that
the school also re-establish its state authorization and accreditation. ED may temporarily and provisionally certify an institution seeking
approval of a change of control under certain circumstances while ED reviews the institution’s application. The temporary provisional
certification typically remains in effect on a month-to-month basis during ED’s review of the application as long as the school
timely submits certain documentation during the course of ED’s review. Legacy timely submitted a materially complete change in
ownership application to ED and CCMCC is now a party to a temporary provisional program participation agreement (“TPPPA”)
that allows CCMCC to continue participating in the Title IV Programs. CCMCC also timely filed the required documentation for the TPPPA
to remain in effect during ED’s review of the change of ownership. On March 11, 2025, CCMCC provided additional financial information
requested by ED.

CCMCC’s
TPPPA contains conditions on its participation in the Title IV Programs that are typically imposed by ED when a change of ownership occurs.
These conditions include restrictions on growth (e.g., the addition of new programs and locations, increase in credential level, change
in program length), bi-weekly and monthly financial reporting, and a reporting requirement related to certain types of student complaints.
If CCMCC does not timely comply with these reporting requirements, or its reports contain information of concern to ED, ED may request
further information from CCMCC or the Company or take action against CCMCC or the Company.

We
cannot predict the timing or outcome of ED’s review of the change of ownership of CCMCC. The time required for ED to act on such
an application for approval of a change of ownership resulting in a change of control may vary substantially. ED recertification of an
institution following a change of control will be on a provisional basis if ED approves the institution’s application and could
contain restrictions or conditions depending on the outcome of its review of the institution under the new ownership including its administrative
capability and financial stability. See Annual Report at Form 10-K at “Education Regulations –