Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 102

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 102
---
, or have that participation significantly conditioned, we may be unable to conduct our business as it is currently conducted
which would have a material adverse effect on our business, financial condition, results of operations and cash flows.

If
we acquire an institution, the acquisition generally constitutes a change in ownership and control that requires the institution to obtain
approvals from ED and applicable state and accrediting agencies in order to remain eligible to participate in the Title IV Programs and
continue to operate as an accredited institution in the states where the institution operates.

When
a company acquires an institution that is eligible to participate in the Title IV Programs, 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 agencies
and accreditors. Upon such a change, an institution’s eligibility to participate in the Title IV Programs is generally suspended
until it has applied for recertification by ED as an eligible school under its new ownership, which requires that the school also re-
establish its state authorization and accreditation. ED may temporarily and provisionally certify an institution seeking approval of
a change of control under certain circumstances while ED reviews the institution’s application. The temporary provisional certification
typically remains in effect on a month-to-month basis during ED’s review of the application as long as the school timely submits
certain documentation during the course of ED’s review. ED’s proposed regulatory agenda published in early September of 2025 includes an intent to address certain issues including change of ownership requirements. We cannot predict how ED will address these
requirements or the impact the changes to change of ownership requirements may have on our schools.

The
time required for ED to act on such an application may vary substantially. ED recertification of an institution following a change of
control will be on a provisional basis if ED approves the institution’s application and could contain restrictions or conditions
depending on the outcome of its review of the institution including its administrative capability and financial stability. Under ED regulations
that took effect July 1, 2023, the institutions must submit certain information and documentation at least 90 days in advance of the
change in ownership including, for example, notice to current and prospective students of the planned change in ownership. The approval
processes for state and accrediting agencies vary in scope and timing with some agencies requiring approval prior to the acquisition
and others not conducting their review until after the acquisition has taken place. Thus, any plans to expand our business through acquisition
of additional