Company: LGCY
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006418
Chunk: 169

Company: Legacy Education Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 2
Chunk 169
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 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.

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” and “School Acquisitions.”

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. With regard to the agencies that accredit CCMCC and
CCMCC Online, authorize