Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 527

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1B
Chunk 527
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2 and state purposes is the fiscal year ended June 30, 2021.

    F-22

 Legacy
Education Inc.

Notes to Consolidated Financial Statements

For Fiscal Years ended June 30, 2025 and 2024

Note
17 - 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.

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 Act. The regulations restrict the proportion of cash receipts
for tuition