Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 663

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 3
Chunk 663
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 with facilities related to athletics, sectarian
instruction, or religious worship. The law required institutions receiving funds to continue to the greatest extent practicable to pay
its employees and contractors during the period of any disruptions or closures related to the COVID-19 emergency.

ED
subsequently allocated funds to each institution of higher education based on a formula contained in the CARES Act. The formula was heavily
weighted toward institutions with large numbers of Pell Grant recipients. ED collectively allocated approximately $3.1 million to our
schools. As of June 30, 2022, we had used approximately $2.1 million on student grants and approximately $1.0 million of the allocated
funds were reimbursements for qualified expenses. These qualified expenses were reflected on the statement of operations as reductions
to general and administrative expenses. The failure to comply with requirements for the usage and reporting of these funds could result
in requirements to repay some or all of the allocated funds and in other sanctions.

82

During
the fiscal year ended June 30, 2021, we applied for certain Employee Retention Credits (“ERTC”) under the CARES Act in the
approximate $2.9 million, which was reflected within the statement of operations as a reduction to educational services expense. The
remaining balance of the ERTC receivable as of December 31, 2023 was $47,000.

During
the fiscal year ended June 30, 2020, pursuant to the Payroll Protection Program (“PPP”) established under the CARES Act,
we had obtained a loan in the amount of $1.4 million (“PPP Loan”). Upon our request, the PPP Loan was subject to forgiveness,
to the extent that the proceeds were used to pay expenses permitted by the PPP, including payroll costs, covered rent, mortgage obligations
and covered utility payments. We submitted a request for full forgiveness to the lender, with the expectation that the PPP Loan would
be forgiven in full. As a result, during the period ended June 30, 2020, we recorded the full amount of the PPP Loan received as other
income. We received forgiveness in full of the PPP Loan during the fiscal year ended June 30, 2021.

The
CARES Act also contained separate educational provisions that relieved both institutions and students from complying with the requirement
to return certain Title IV Program funds following a student’s withdrawal as a result of the COVID-19 emergency. Ordinarily, when
a student withdraws, the institution (