Company: LGCY
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010844
Chunk: 42

Company: Legacy Education Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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 all of its functions to one or more agencies, or whether such a proposal would disrupt
or change the availability of Title IV funds to us and our students or change the rules applicable to us and our schools to continue
receiving Title IV funds. We also cannot predict the success of any litigation challenging any efforts to close or restructure ED. Any
executive or legislative action impacting ED, the availability of Title IV funds, or the rules applicable to us could have a material
adverse effect on us and our institutions.

As
previously reported, we cannot predict with any certainty the extent to which Congress could adopt legislation at any time that amends
the Higher Education Act of 1965 (“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