Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 393

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1A
Chunk 393
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, our stock price could decline significantly
and raising capital could be more difficult.

Section
404 of Sarbanes-Oxley Act of 2002, as amended (“Sarbanes-Oxley”), requires annual management assessments of the effectiveness
of our internal control over financial reporting. If we fail to comply with the rules under Sarbanes-Oxley related to disclosure controls
and procedures in the future, or, if we discover material weaknesses and other deficiencies in our internal control and accounting procedures,
our stock price could decline significantly and raising capital could be more difficult. If material weaknesses or significant deficiencies
are discovered or if we otherwise fail to achieve and maintain the adequacy of our internal control, we may not be able to ensure that
we can conclude on an ongoing basis that we have effective internal controls over financial reporting in accordance with Section 404
of Sarbanes-Oxley. Moreover, effective internal controls are necessary for us to produce reliable financial reports and are important
to helping prevent financial fraud. If we cannot provide reliable financial reports or prevent fraud, our business and operating results
could be harmed, investors could lose confidence in our reported financial information, and the trading price of our common stock could
drop significantly.

70

Our
financial performance depends on the level of student enrollment in our institutions.

Stagnant
wage growth and heightened financial worries could continue to affect the willingness of students to incur loans to pay for postsecondary
education and to pursue postsecondary education in general. An improving economy and improving job prospects may lead prospective students
to choose to work rather than to pursue postsecondary education. Our enrollments could suffer from any of these circumstances.

Enrollment
of students at our institutions is impacted by many of the regulatory risks discussed above and business risks discussed below, many
of which are beyond our control. If the costs of Title IV loans increase and if availability of alternate student financial aid decreases,
students may decide not to enroll in a postsecondary institution, including our institutions. We could experience decreasing enrollments
in our institutions due to changing demographic trends in family size, overall declines in enrollment in postsecondary institutions or
in for-profit institutions, job growth in fields unrelated to our core disciplines, immigration and visa laws, or other societal factors.

Reduced
enrollments at our institutions, for any of the reasons mentioned or otherwise, may reduce our profitability and is likely to have a
negative impact on our business, results of operation, financial condition and cash flows, which, depending on