Company: LGCY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022296
Chunk: 136

Company: Legacy Education Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 136
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 Act. The regulations restrict the proportion of
cash receipts for tuition and fees from eligible programs to not more than 90% from Title IV programs and other federal educational
assistance funds (the “90/10 revenue test”). If an institution fails to satisfy the test for one year, its participation
status becomes provisional for two consecutive fiscal years. If the test is not satisfied for two consecutive years, eligibility to
participate in Title IV programs is lost for at least two fiscal years. Using ED’s cash-basis, regulatory formula under the
90/10 revenue test, as in effect for its 2024 fiscal year, HDMC, CCC and ICH derived 87.55%, 79.51% and 84.19% for its 90/10 revenue
from the Title IV programs and other federal educational assistance funds, respectively, for the fiscal year ended June 30, 2024. The
90/10 calculations for fiscal year ended June 30, 2025, for each of our institutions are due to ED on December 31, 2025.

Litigation

The
Company is unaware of any other pending or threatened litigation arising from services currently or formerly performed by the Company.
The Company is unaware of any possible claiming that could have a material adverse effect on the Company’s business, results of
operations or financial condition.

Note
17 – Subsequent Events

On
October 16, 2025 a total of 58,708 stock options were granted to officers and directors for exercise at $9.51 per share, vesting
monthly over 3 years. 

Subsequent
to September 30, 2025 a total of 3,337 stock options were exercised for total proceeds of $12,480.

The
Company has evaluated subsequent events and transactions that occurred up to the date the consolidated financial statements were issued.
Based upon this review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the consolidated
financial statements.

F-22

ITEM
2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You
should read the following discussion and analysis of our financial condition and results of operations together with our financial statements
and the related notes appearing elsewhere in this Quarterly Report on Form 10-Q. In addition to historical information, this discussion
and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially
from those discussed below