Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 417

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1A
Chunk 417
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 the same amount” of the funds for direct grants to students as was required
under the CARES Act. However, for-profit institutions could only use the additional HEERF funds under the CRRSAA for grants to students.
The student grants had to prioritize students with exceptional need and could be used for any component of the student’s cost of
attendance or for emergency costs that arose due to coronavirus, such as tuition, food, housing, health care (including mental health
care), or childcare. Public and nonprofit institutions could use the remaining HEERF funds to (1) defray expenses associated with coronavirus
(including lost revenue, reimbursement for expenses already incurred, technology costs associated with a transition to distance education,
faculty and staff trainings, and payroll); (2) carry out student support activities authorized by the HEA that address needs related
to coronavirus; or (3) for additional financial aid grants to students. ED collectively allocated approximately $1.15 million in CRRSAA
funds to our schools. As of June 30, 2023, our schools had expended all of these funds on grants to our students.

In
March 2021, Congress enacted the $1.9 trillion ARPA. ARPA provided nearly $40 billion in relief funds that go directly to colleges and
universities with $395.8 million going to for-profit institutions. Institutions are required to spend at least half of their allocations
on emergency financial aid grants to students.

We
did not incur any benefits related to federal funds directly resulting from COVID-19 programs in each of the fiscal years ended June
30, 2025 or 2024.

83

Key
Financial Metrics

Revenue

Tuition
revenue is primarily derived from postsecondary education services provided to students. Generally, tuition and other fees are paid upfront
and recorded in contract liabilities in advance of the date when education services are provided to the student. A tuition receivable
is recorded for the portion of tuition not paid in advance. In some instances, installment billing is available to students which reduces
the amount of cash consideration received in advance of performing the service. The contractual terms and conditions associated with
installment billing indicate that the student is liable for the total contract price, therefore mitigating the Company’s exposure
to losses associated with nonpayment. Tuition revenue is recognized ratably over the instruction period. The Company generally uses the
time elapsed method, an input measure, as it best depicts the simultaneous consumption and delivery