Company: LGCY
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010844
Chunk: 86

Company: Legacy Education Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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792 and $737,333 as of
March 31, 2025 and June 30, 2024, respectively. The weighted average period over which these costs are expected to be recognized is approximately
2.20 and 2.75 years.

Note
16 - 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 is accredited with ACCET and ABHES and approved by other
agencies and must comply with rules and regulations of the accrediting body. 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 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.

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 and fees from eligible programs to not more than 90% from Title IV programs (the “90/10 revenue test”). If an
institution fails to satisfy the test for one year, its participation status becomes provisional for two consecutive fiscal years. If