Company: LGCY
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006418
Chunk: 200

Company: Legacy Education Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part II, Item 1
Chunk 200
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From
time to time, we may be subject to litigation and claims arising in the ordinary course of business. We are not currently a party to
any material legal proceedings and we are not aware of any pending or threatened legal proceeding against us that we believe could have
a material adverse effect on our business, operating results, cash flows or financial condition.

ITEM
1A. RISK FACTORS

Risk
factors that affect our business and financial results are discussed in Part I, Item 1A “Risk Factors,” in our Annual Report
on Form 10-K for the year ended June 30, 2024 as filed with the SEC on October 1, 2024 (“Annual Report”). Other than the information set forth in this Form 10-Q, including the section titled “Regulatory Updates,”
there have been
no material changes in our risk factors from those previously disclosed in our Annual Report. You should carefully consider the risks
described in our Annual Report which could materially affect our business, financial condition or future results. The risks described
in our Annual Report are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently
deem to be immaterial also may materially adversely affect our business, financial condition, and/or operating results. If any of the
risks actually occur, our business, financial condition, and/or results of operations could be negatively affected.

ITEM
2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a)
Sales of Unregistered Securities.

On December 18, 2024, we issued 118,906 shares of
common stock to Contra Costa Medical Career College (“CCMC”) pursuant to that
certain asset purchase agreement (the “APA”) dated October 22, 2024 by and among the Buyer, Legacy Education Inc. (the “Company”),
Legacy Education, LLC, a wholly-owned subsidiary of the Company (“Legacy LLC” and together with the Company and the Buyer,
the “Buyer Parties”), CCMC, Contra Costa Medical Career College Online, Inc. (“CCMCC Online” and together with
CCMCC, “Sellers”), and, solely with respect to certain portions of the APA, Stacey Orozco and Bulmaro Orozco, the sole owners
CCMCC and CCMCC Online (collectively, the “Owners”). The shares of common stock are being held in escrow by Equ