Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 76

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 76
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 institutions satisfy all such currently
applicable state educational requirements for professional licensure or certification.

State
legislatures often consider legislation affecting regulation of postsecondary educational institutions. Our institutions are located
in California which has expansive laws and regulations impacting for-profit schools like our institutions. Enactment of this legislation
and ensuing regulations, or changes in interpretation of existing regulations, may impose substantial costs on our institutions and require
them to modify their operations in order to comply with the new regulations.

If
we are unable to comply with applicable past, current or future state education, consumer protection, licensing, authorization or other
requirements, or determine that we are unable to cost effectively comply with new or revised requirements, we could be subject to loss
of state authorization and to monetary fines or penalties or limitations on the manner in which we conduct our business, or we could
lose enrollments, eligibility to participate in the Title IV Programs and revenues, in any affected states, which could materially affect
our results of operations and our growth opportunities.

48

If
one or more of our institutions fails to maintain institutional accreditation, or if certain of our programs cannot obtain or maintain
programmatic accreditation, our student enrollments would diminish, and our business would suffer.

Institutional
Accreditation. In the U.S., accrediting agencies are non-governmental entities that periodically review the academic quality of an
institution’s instructional programs and its administrative and financial operations to ensure the institution has the resources
to perform its educational mission. Accrediting agencies impose standards that extend to most aspects of an institution’s operations
and educational programs including, but not limited to, requirements to maintain threshold graduation and job placement rates for its
educational programs. ED requires an institution to be accredited by an ED-recognized accrediting agency in order for the institution
to participate in the Title IV Programs. HDMC, CCC, and CCMCC are currently accredited by ACCET through April 2029, April 2030, and April
2026, respectively. Integrity is accredited by ABHES through February 2026. ACCET and ABHES are ED-recognized accrediting agencies. The
failure to comply with accreditation standards could subject an institution to additional oversight and reporting requirements, accreditation
proceedings such as a show-cause directive, an action to defer or deny action related to an institution’s application for a new
grant of accreditation, or an action to suspend or revoke an institution’s accreditation or a program’s approval. If our