Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 41

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 41
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 sole member of Integrity. We purchased from the
sole member of Integrity on that date 24.5% of her interest and obtained an exclusive option to acquire her remaining membership interest
upon payment of $100, which was exercised on September 15, 2020. For purposes of our financial statements, our acquisition of Integrity
is deemed to have been effective as of December 31, 2019. We believe that a change in ownership and control of Integrity did not occur
until September 15, 2020 under the change in ownership and control standards of ED and the other educational agencies that regulate Integrity,
but these standards are subject to interpretation by the respective agencies. The review by ED of the change in ownership and control
of Integrity in connection with our acquisition of Integrity remains ongoing. Integrity currently holds a temporary provisional program
participation agreement with ED in connection with our acquisition of the institution, which has continued its Title IV Program participation
on a month-to-month basis pending ED’s approval of the change in ownership and control. If ED concludes that a change in ownership
or control of Integrity occurred prior to September 15, 2020, we could be subject to liabilities or other sanctions by ED, which could
have a material adverse effect on our business, financial condition, results of operations, and cash flows.

Legacy
Education Antioch, LLC, a wholly-owned subsidiary of Legacy LLC (as defined herein) (the “Buyer”) entered into the APA with
Legacy Education Inc., Legacy Education, LLC, a wholly-owned subsidiary of the Company (“Legacy LLC” and together with the
Company and the Buyer, the “Buyer Parties”), CCMCC, Contra Costa Medical Career College Online, Inc. (“CCMCC Online”
and together with CCMCC, “Sellers”) and, solely with respect to certain portions of the APA, Stacey Orozco and Bulmaro Orozco,
the sole owners CCMCC and CCMCC Online (the “CCMCC Transaction”). The CCMCC Transaction was consummated on December 18, 2024.

When
a company acquires an institution that is eligible to participate in the Title IV Programs, like CCMCC, the acquisition generally will
result in the institution undergoing a change of ownership resulting in a change of control as defined by ED and under the rules of other
educational agencies and accreditors. Upon such a change, an institution’s eligibility to participate in the Title IV Programs
is