Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 788

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 5
Chunk 788
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 the statement of operations as reductions
to general and administrative expenses. The failure to comply with requirements for the usage and reporting of these funds could result
in requirements to repay some or all of the allocated funds and in other sanctions.

82

During
the fiscal year ended June 30, 2021, we applied for certain Employee Retention Credits (“ERTC”) under the CARES Act in the
approximate $2.9 million, which was reflected within the statement of operations as a reduction to educational services expense. The
remaining balance of the ERTC receivable as of December 31, 2023 was $47,000.

During
the fiscal year ended June 30, 2020, pursuant to the Payroll Protection Program (“PPP”) established under the CARES Act,
we had obtained a loan in the amount of $1.4 million (“PPP Loan”). Upon our request, the PPP Loan was subject to forgiveness,
to the extent that the proceeds were used to pay expenses permitted by the PPP, including payroll costs, covered rent, mortgage obligations
and covered utility payments. We submitted a request for full forgiveness to the lender, with the expectation that the PPP Loan would
be forgiven in full. As a result, during the period ended June 30, 2020, we recorded the full amount of the PPP Loan received as other
income. We received forgiveness in full of the PPP Loan during the fiscal year ended June 30, 2021.

The
CARES Act also contained separate educational provisions that relieved both institutions and students from complying with the requirement
to return certain Title IV Program funds following a student’s withdrawal as a result of the COVID-19 emergency. Ordinarily, when
a student withdraws, the institution (and, in some cases, the student) may be required to return unearned portions of the Title IV Program
funds awarded for the period. Institutions are required to report to ED the total amount of grant and loan funds the institution has
not returned due to the waiver. For federal loan borrowers, the CARES Act also directed ED to cancel the borrower’s obligation
to repay any direct loan associated with the relevant period. The law also expanded the options to avoid student withdrawals due to a
cessation of attendance by placing students on an approved leave of absence and waives certain requirements normally applicable to a
leave of absence. The CARES Act also allowed institutions to exclude from the calculation of a student’s satisfactory academic
progress any attempted credits not completed