Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 347

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1A
Chunk 347
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 and are subject to extensive regulation by ED, other federal and state educational
agencies and accreditors. CCC, HDMC, and CCMCC are approved to offer, and must comply with applicable requirements related to, veterans
education assistance administered by the VA. CCC and HDMC are also approved to offer, and must comply with applicable requirements related
to, Cal Grants administered by the California Student Aid Commission, and funds administered under the Workforce Innovation and Opportunity
Act. We derive a substantial portion of our revenue and cash flows from the Title IV Programs and a significant portion of our students
rely on financial aid received under the Title IV Programs in order to attend our institutions. To qualify as an eligible institution
to participate in the Title IV Programs, an institution must among other things receive and maintain authorization by the appropriate
state education agencies, be accredited by an accreditor recognized by ED, and be certified by ED as an eligible institution.

The
laws, regulations, standards and policies of our regulators change periodically and are subject to new and changing interpretation by
our regulators. Changes in, or new interpretations of, applicable laws, regulations, standards, or policies, or our failure to comply
with those laws, regulations, standards, or policies could have a material adverse effect on our receipt of funds under the Title IV
Programs and other federal and state financial aid programs, the accreditation of our institutions and programs, the authorization of
our institutions to operate in various states, our permissible activities or our costs of doing business. We cannot predict with certainty
how all of the requirements applied by our regulators will be interpreted or whether our institutions will be able to comply with these
requirements in the future. Given the complex nature of these requirements and the fact that they are subject to interpretation, it is
possible that we may inadvertently violate these laws, regulations, standards, or policies.

If
we are found to have violated any applicable laws, regulations, standards or policies, we may be subject to the following sanctions,
among others, imposed by any one or more regulatory agencies or other government bodies who regulate us and our schools:

    ●
    imposition
    of monetary fines or penalties, including imposition of a requirement to submit a substantial letter of credit or other form of financial
    protection;

46

    ●
    repayment
    of funds received under the Title IV Programs or other federal or state financial aid programs the amounts of which could be material;

    ●
    restrictions
    on,