Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 542

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1C
Chunk 542
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 Stabilization Fund including $22.7 billion for HEERF, which were originally created by the CARES Act in March 2020. The higher
education provisions of the CRRSAA were intended in part to provide additional financial assistance benefitting students and their postsecondary
institutions in the wake of the spread of COVID-19 across the country and its impact on higher educational institutions.

Like
the CARES Act, the CRRSAA directed the majority of HEERF funds to a general program providing direct grants to institutions. Institutions
generally were required to designate “at least the same amount” of the funds for direct grants to students as was required
under the CARES Act. However, for-profit institutions could only use the additional HEERF funds under the CRRSAA for grants to students.
The student grants had to prioritize students with exceptional need and could be used for any component of the student’s cost of
attendance or for emergency costs that arose due to coronavirus, such as tuition, food, housing, health care (including mental health
care), or childcare. Public and nonprofit institutions could use the remaining HEERF funds to (1) defray expenses associated with coronavirus
(including lost revenue, reimbursement for expenses already incurred, technology costs associated with a transition to distance education,
faculty and staff trainings, and payroll); (2) carry out student support activities authorized by the HEA that address needs related
to coronavirus; or (3) for additional financial aid grants to students. ED collectively allocated approximately $1.15 million in CRRSAA
funds to our schools. As of June 30, 2023, our schools had expended all of these funds on grants to our students.

In
March 2021, Congress enacted the $1.9 trillion ARPA. ARPA provided nearly $40 billion in relief funds that go directly to colleges and
universities with $395.8 million going to for-profit institutions. Institutions are required to spend at least half of their allocations
on emergency financial aid grants to students.

We
did not incur any benefits related to federal funds directly resulting from COVID-19 programs in each of the fiscal years ended June
30, 2025 or 2024.

83

Key
Financial Metrics

Revenue

Tuition
revenue is primarily derived from postsecondary education services provided to students. Generally, tuition and other fees are paid upfront
and recorded in contract liabilities in advance of the date when education services are