Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 27

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 27
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DMC, CCC, and Integrity: HDMC 87.55%, 84.53%, and 82.17%; CCC 79.51%,
74.48%, and 72.34%; and Integrity 84.19%, 88.14%, and 85.43%, respectively. CCMCC’s 90/10 Rule percentage for its 2022 fiscal
year was 21.76%, and for its 2023 fiscal year was 48.63%. CCMCC’s next 90/10 Rule percentage will be reported to ED in
connection with the Company’s next annual financial statement and compliance audit submissions. Our calculations of the 90/10
Rule percentage for the 2025 fiscal year for HDMC, CCC, Integrity, and CCMCC are due on December 31, 2025 and each are expected to
be below 90%. The 90/10 calculations for our institutions are subject to review and potential recalculation by ED. In addition, the
90/10 Rule is complex and there is some ambiguity in certain technical aspects of the calculation methodology by ED under the 90/10
Rule. If ED comes out with additional guidance of interpretations that are different than our interpretations, ED could recalculate
the 90/10 Rule percentages of our institutions, which could result in one or more of the percentages exceeding 90%. A loss of
eligibility to participate in Title IV Programs for any of our institutions would have a significant impact on the rate at which our
students enroll in our programs and on our business and results of operations. Moreover, if an institution violated the 90/10 Rule
and became ineligible to participate in Title IV Programs but continued to disburse Title IV Program funds, ED would require the
institution to repay all Title IV Program funds received by the institution after the effective date of the loss of eligibility.

ARPA
amended the 90/10 Rule by treating other federal student financial assistance funds in the same manner as Title IV Program funds in the
90/10 Rule calculation. This amendment requires our institutions to limit the combined amount of Title IV Program funds and other federal
student financial assistance funds in a fiscal year to no more than 90% in a fiscal year as calculated under the 90/10 Rule. ED published
final regulations on the 90/10 Rule on October 28, 2022. The final regulations became effective July 1, 2023 and applied to fiscal