Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 383

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1A
Chunk 383
---
 we cannot predict whether investors will timely report investments such that we could access accurate
beneficial ownership information and even if investors do comply with reporting requirements, certain passive investors would not typically
be reported until 45 days following our fiscal year end. We are as yet uncertain regarding our ability to timely obtain ownership information
and timely report this information to ED. Failure to timely report ownership changes could result in adverse action by ED, or conditions
or restrictions imposed by ED on one or more of our institutions.

Our
institutions may encounter difficulty timely identifying and reporting to ED on the electronic application for each of our institutions’ several hundred owners. Integrity may also encounter additional difficulty reporting ownership
given ED has not yet approved the prior change in control of Integrity and, as a result, we could encounter difficulty obtaining access
to the electronic application. ED has informed us that it only will require us to report owners with a five percent or greater ownership
interest in the Company although this guidance could change in the future and we could encounter difficulty identifying and timely reporting
owners under current or future ED guidance. Our institutions will also be required to timely report any additional changes to ownership
percentages and given the frequency such changes can occur for a publicly traded company, we may have difficulty timely complying with
ED’s reporting requirements. These difficulties could result in adverse action by ED, or conditions or restrictions imposed by
ED on one or more of our institutions.

If
we decide to issue preferred stock or additional common stock in the future, this issuance could result in a change in ownership or control
requiring regulatory approval. ED considers both control rights and beneficial ownership interest among other factors when evaluating
whether a change in ownership resulting in a change in control has occurred. Similarly, changes to our board of directors or the right
to appoint directors could result in a change in ownership or control requiring regulatory approval.

65

We
have verified that most of our education regulators and accreditors do not treat the initial public offering as a change in
ownership or control requiring agency approval. If agencies require us to obtain approvals in connection with the initial public
offering, we will be required to undergo an application process for approvals from the applicable agencies and could be subject to
conditions or restrictions depending on the outcome of the approval process. If an agency notified us that we moved forward with the
initial public offering without making or obtaining required pre-closing notices and approvals prior to the initial public offering,
we could be subject to sanctions by the applicable agencies including loss of our approvals