Company: LGCY
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006418
Chunk: 33

Company: Legacy Education Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 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 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 (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 Rule, as in effect for its 2024 fiscal year, HDMC, CCC and Integrity
derived 87.55%,79.51% and 84.19% for its 90/10 revenue from Title IV program funds, respectively, for the fiscal year ended June 30, 2024.

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
16 – Subsequent Events

A total of 7,445 stock options were exercised in February
2025 at $3.74 per share.

On February 1, 2025 the Company entered into a lease extension agreement
with a lessor for a property located in Temecula, CA under which a lease originally entered into in January 2018 and expiring in January
2026 was extended for a further two (2) years, expiring on January 31, 2028. Under the terms of lease extension agreement, the Company
will pay base rent of a cumulative $46,004 commencing February 1, 2026 and $47,155 commencing February 1, 2027 and shall receive and abatement
for each of months 12 and 14 of the term. The lease may be further extended for up to three (3) additional 12-month terms no later than
12 months prior to the lease expiration. All other terms and conditions of he original lease remain in effect during the extension term.

F-21

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