Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 349

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1A
Chunk 349
---
 business as it currently is conducted.

Any
failure to comply with state laws and regulatory requirements, including educational regulations, or new state legislative or regulatory
initiatives affecting our institutions, could have a material adverse effect on our total student enrollment, results of operations,
financial condition and cash flows.

Our
institutions are subject to the educational laws and regulations of the State of California where our physical campuses are located.
We also may be subject to the educational laws of other states if we acquire a new institution in the state or if one of our institutions
adds a new campus in the state or otherwise conducts other operations in the state covered by applicable state educational law including,
but not limited to, student recruitment, advertising or certain types of distance education. State educational laws establish standards
and requirements for, among other things, student instruction, faculty qualifications, campuses and facilities, educational programs,
financial stability, administrative staff, marketing and recruiting, distribution of information to current and prospective students,
payment of refunds to students who withdraw, private and institutional loans, distance education, student services, student complaints,
student admissions, transfer of academic credits, substantive changes, acquisitions, and policies and minimum graduation and job placement
outcomes for institutions and/or their individual educational programs. Our institutions are authorized to operate by BPPE. We also may be required to obtain approvals and comply with requirements
of state agencies that regulate certain occupational educational programs such as, for example, VN and phlebotomy. The California Board
of Registered Nurses approves the Associate degree of Nursing program at HDMC. The VN programs at HDMC, Integrity, and CCMCC are approved
by BVNPT. The phlebotomy programs at HDMC and CCC are approved by California Department of Public Health. In addition, we are subject
to state consumer protection laws.

47

Attorneys
general in many states have become more active in enforcing consumer protection laws, including, for example, laws related to marketing,
advertising and recruiting practices and the financing of education at for-profit educational institutions. Further, some state attorneys
general have partnered with federal and state agencies to review industry practices and collaborate on enforcement actions against educational
institutions. These actions increase the likelihood of scrutiny of marketing, advertising, recruiting, financing, and other practices
of educational institutions and may result in unforeseen consequences, increasing risk and making our operating environment more challenging.

Adverse
media coverage regarding the allegations of state consumer protection law violations by us or other for-profit education companies could
damage our