Company: LGCY
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006418
Chunk: 50

Company: Legacy Education Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 50
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 for the six months ended December 31, 2024 compared to approximately $2.4 million
for the six months ended December 31, 2023, an increase of approximately $1.1 million, or approximately 47.9%, due to the reasons mentioned
above.

7

Liquidity
and Capital Resources

Our
cash and cash equivalents were approximately $16.9 million and $10.4 million as of December 31, 2024, 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 $0.4 million and $0.3 million for the six months ended December 31, 2024, and 2023, 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.

Cash
Flow Activities for the Six Months Ended December 31, 2024 and 2023

Operating
activities

Net
cash provided by operating activities was approximately $3.8 million and $2.9 million for the six months ended December 31, 2024, and
2023, respectively. The increase of approximately $0.9 million is primarily attributable to an increase in earnings.

Investing
activities

Net
cash used in investing activities was approximately $6.6 million for the six months ended