Company: LGCY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022296
Chunk: 135

Company: Legacy Education Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 135
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, respectively. The weighted average period
over which these costs are expected to be recognized is approximately 1.75 and 2.00 years.

Note
16 - Other Commitments and Contingency

Regulatory

In
order for students to participate in Title IV federal financial aid programs, the Company is required to maintain certain standards of
financial responsibility and administrative capability. In addition, the Company’s institutions are accredited by ACCET or ABHES
and approved by other agencies and must comply with the applicable rules and regulations of the accrediting body and other agencies.
As a result, the Company may be subject from time to time to audits, investigations, claims of noncompliance or lawsuits by governmental
agencies, regulatory bodies, or third parties. While there can be no assurance that such matters will not occur and if they do occur
will not have a material adverse effect on these financial statements, management believes that the Company has complied in all material
respects with all applicable regulatory requirements as of the date of the financial statements.

The
Company is subject to extensive regulation by federal and state governmental agencies and accrediting bodies. In particular, the Higher
Education Act of 1965, as amended (the “Higher Education Act”), and the regulations promulgated thereunder by ED, subject
the Company to significant regulatory scrutiny on the basis of numerous standards that schools must satisfy in order to participate in
the various federal student financial assistance programs under Title IV of the Higher Education Act.

Composite
Score

As
described above, ED requires institutions to meet standards of financial responsibility. ED deems an institution financially responsible
when the composite score is at least 1.5. The Company’s composite score was 3.0 for the fiscal year ended June 30, 2024. The composite
score calculation for fiscal year ended June 30, 2025, has not yet been completed as of the date of these financial statements and is
due on December 31, 2025.

    F-21

Legacy
Education Inc.

Notes
to Condensed Consolidated Financial Statements

For
the three months ended September 30, 2025 and 2024

90/10
Disclosure

The
Company derives a substantial portion of its revenues from student financial aid received by its students under the Title IV
programs administered by ED pursuant to the Higher Education Act. To continue to participate in the student financial aid programs,
the Company must comply with the regulations promulgated under the Higher Education