Company: LGCY
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010844
Chunk: 95

Company: Legacy Education Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 95
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5 (“HEA”), annual appropriations, or other changes to laws that could materially affect our
business, financial condition, and results of operations. See Annual Report at Form 10-K at “Education Regulations – Congressional
Action.” Congressional committees and members actively continue to propose and consider legislation on a wide range of topics related
to the Title IV programs that could impact the amount of Title IV funding available to schools and students and impose additional accountability
requirements on institutions and also that could eliminate or modify certain rules that are less favorable to schools like ours. However,
the process of Congressional passage of new legislation is in its early stages, is subject to further negotiation and amendment, and
is further subject to Congressional approval. Therefore, the timing and outcome of this process and the scope of any legislation that
might be enacted cannot be predicted with any certainty at this time. We are continuing to monitor the process.

We
cannot predict with certainty the ultimate combined impact of the regulatory changes which have occurred in recent years, nor can we
predict the effect of future legislative or regulatory action by federal, state or other agencies regulating our education programs or
other aspects of our operations, how any resulting regulations will be interpreted or whether we and our institutions will be able to
comply with these requirements in the future. Any such actions by legislative or regulatory bodies that affect our programs and operations
could have a material adverse effect on us and our student population and our institutions, including the need to cease offering a number
of programs.

Key
Financial Metrics

Revenue

Tuition
revenue is primarily derived from postsecondary education services provided to students. Generally, tuition and other fees are paid upfront
and recorded in contract liabilities in advance of the date when education services are provided to the student. A tuition receivable
is recorded for the portion of tuition not paid in advance. In some instances, instalment billing is available to students which reduces
the amount of cash consideration received in advance of performing the service. The contractual terms and conditions associated with
instalment billing indicate that the student is liable for the total contract price, therefore mitigating the Company’s exposure
to losses associated with nonpayment. Tuition revenue is recognized ratably over the instruction period. The Company generally uses the
time elapsed method, an input measure, as it best depicts the simultaneous consumption and delivery of tuition services. Revenue associated
with distinct course materials is recognized at the point of time when control transfers to the student, generally when the materials
are delivered to the student.