Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 423

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1A
Chunk 423
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 in fiscal 2025 compared to an approximately $1.9 million expense
in fiscal 2024. The increase is primarily due to the increase in income.

Net Income. We had net income of approximately
$7.5 million in fiscal 2025 compared to approximately $5.1 million in fiscal 2024, an increase of approximately $2.4 million, due to reasons
mentioned above.

Liquidity
and Capital Resources

Our
cash and cash equivalents were approximately $20.3 million and $10.4 million as of June 30, 2025 and June 30, 2024, respectively.

We
are not party to a revolving line of credit or other debt facility.

Based
on our current level of operations and anticipated growth, we believe that our cash flow from operations, the proceeds from our initial
public offering and other sources of liquidity, including cash and cash equivalents, will provide adequate funds for ongoing operations,
planned capital expenditures and working capital requirements for at least the next 12 months.

Capital
expenditures were approximately $0.8 million and $0.4 million for fiscal year 2025 and fiscal year 2024, respectively.

Title
IV and other government funding

A
significant portion of our revenue is derived from student tuition payments funded by the Title IV Programs. As such, the timing of disbursements
under the Title IV Programs is based on federal regulations and our ability to successfully and timely arrange financial aid for our
students. Title IV Program funds are generally provided in multiple disbursements before we earn a significant portion of tuition and
fees and incur related expenses over the period of instruction. Students must apply for new Title IV Program loans and grants each academic
year. These factors, together with the timing of our students beginning their programs, affect our operating cash flow.

Financial
responsibility

Based
on the most recent fiscal year-end financial statements, we satisfied the composite score requirement of the financial responsibility
test which institutions must satisfy in order to participate in the Title IV Programs.

87

Cash
Flow Activities for the Years Ended June 30, 2025 and 2024

Operating
activities

Net cash provided by operating activities was approximately
$7.8 million in fiscal year 2025, and net cash provided in operating activities was approximately $1.6 million in fiscal 2024 primarily
due to an increase to net income of $2.4 million and the increase in collections related to accounts rece