Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 52

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 52
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 Veterans Affairs and other federal agencies, and by our accrediting agencies. In addition, each of our institutions
must retain an independent certified public accountant to conduct an annual audit of the institution’s administration of Title IV
Program funds. Each of our institutions must submit the resulting audit report to ED for review.

If
one of our institutions fails to comply with accrediting or state licensing requirements, such school and its main and/or branch campuses
and educational programs could be subject to the loss of state licensure or accreditation, which in turn could result in a loss of eligibility
to participate in the Title IV Programs. If ED or another agency determined that one of our institutions improperly disbursed Title IV
Program funds or other financial assistance funds or violated a provision of the HEA or ED regulations, the institution could be required
to repay such funds and related costs to ED or other agencies, and could be assessed an administrative fine or subject to other sanctions
including loss of eligibility to participate in the impacted financial assistance program. ED could also place the institution on provisional
certification status and/or transfer the institution to the reimbursement or cash monitoring system of receiving Title IV Program funds,
under which an institution must disburse its own funds to students and document the students’ eligibility for Title IV Program
funds before receiving such funds from ED. It could also impose letters of credit, restrict participation, or take actions such as suspensions
or emergency action.

Significant
violations of Title IV Program requirements by us or any of our institutions could be the basis for ED to limit, suspend, terminate,
revoke, or decline to renew the participation of the affected institution in the Title IV Programs or to seek civil or criminal penalties.
We and our institutions are also subject to claims and lawsuits relating to regulatory compliance brought not only by federal and state
regulatory agencies and our accrediting bodies, but also by third parties, such as present or former students or employees and other
members of the public.

If
the result of any pending or future review, audit, proceeding, lawsuit or investigation is unfavorable to us, we may be required to pay
money damages or be subject to fines, limitations, conditions, loss of Title IV Program funding, loss of accreditation or state authorization,
injunctions or other penalties which could impact our results of operations. Even if we adequately address issues raised by an agency
review or successfully defend a lawsuit or claim, we may have to divert significant financial and management resources from our ongoing
business operations to address issues raised by those