Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 40

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 40
---
s, or other remedies available to the FTC.

School
Acquisitions. When a company acquires an institution that is eligible to participate in the Title IV Programs, 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 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. ED’s proposed regulatory agenda published in early
September of 2025 includes an intent to address certain issues including change of ownership requirements. We cannot predict how
ED will address these requirements or the impact the changes to change of ownership requirements may have on our schools.

26

The
time required for ED to act on such an application 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 including its administrative capability and financial stability. Under ED regulations
that took effect July 1, 2023, the institutions must submit certain information and documentation at least 90 days in advance of the
change in ownership including, for example, notice to current and prospective students of the planned change in ownership. The approval
processes for state and accrediting agencies vary in scope and timing with some agencies requiring approval prior to the acquisition
and others not conducting their review until after the acquisition has taken place. Thus, any plans to expand our business through acquisition
of additional 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.

On
December 31, 2019, we entered into a Membership Interest Purchase Agreement with the