Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 49

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 49
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 educational institutions must be authorized by their state education
agencies and be fully operational for two years before applying to ED to participate in the Title IV Programs. However, an institution
that is certified to participate in the Title IV Programs may establish an additional location and apply to participate in the Title
IV Programs at that location without reference to the two-year requirement, if such additional location satisfies all other applicable
ED eligibility requirements. Our expansion plans are based, in part, on our ability to open new schools as additional locations of our
existing institutions and are dependent upon ED’s timely review and approval of new campuses. Effective July 1, 2024, ED has discretion
to condition the participation of provisionally certified schools by restricting or limiting the addition of new programs or locations.
If ED chose to impose such a condition on one or more of our institutions, that could negatively impact our expansion plans.

A
student may use Title IV Program funds only to pay the costs associated with enrollment in an eligible educational program offered by
an institution participating in Title IV Programs. Generally, unless otherwise required by ED or regulation, an institution that is eligible
to participate in Title IV Programs may add a new educational program without ED approval. Institutions that are provisionally certified
may be required to obtain approval of certain educational programs. Our Integrity and CCMCC institutions are provisionally certified
and required to obtain prior ED approval of new locations and educational programs. If an institution erroneously determines that an
educational program is eligible for purposes of the Title IV Programs, the institution would likely be liable for repayment of Title
IV Program funds provided to students in that educational program. Our expansion plans are based, in part, on our ability to add new
educational programs at our existing schools and make periodic updates to our programs.

In
addition to ED, some of the state education agencies and our accreditors also have requirements that may affect our schools’ ability
to open a new campus, establish an additional location of an existing institution or add or change educational programs. Approval by
these agencies may be conditioned, delayed or denied and could be negatively impacted due to regulatory inquiries or reviews and any
adverse publicity relating to such matters or the industry generally.

Administrative
Capability. ED assesses the administrative capability of each institution that participates in the Title IV Programs under a
series of separate standards. Failure to satisfy any of the standards may lead ED to find the institution ineligible to participate in
the Title IV Programs or to place the institution on provisional