Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 123

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 123
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 attract and retain qualified faculty members and administrators. These transitions and loss of key personnel in the future
could slow implementation of key initiatives, lead to changes in or create uncertainty about our business strategies or otherwise impact
management’s attention to operations. We face competition in attracting, hiring and retaining executives and key personnel who
possess the skill sets and experiences that we seek. In particular, our performance is dependent upon the availability and retention
of qualified personnel for our ongoing investments in our student support operations. Cost reduction measures due to declining enrollments,
our recent operating losses and the negative publicity surrounding our industry make it difficult and more expensive to attract, hire
and retain qualified and experienced personnel. In addition, key personnel may leave us and subsequently compete against us after any
period they are contractually obligated not to pursue such activities. The loss of the services of our key personnel, or our failure
to attract, integrate and retain other qualified and experienced personnel on acceptable terms and in a timely manner could adversely
affect our results of operations or growth prospects.

We
may be compelled to terminate programs due to regulatory considerations or declining enrollments and may incur additional costs and expenses,
or fail to achieve anticipated cost savings and business efficiencies, associated with past or future exit or restructuring activities.

We
must balance current student populations and projected changes in student population with appropriate levels of costs and investment
in real estate and our online platforms. Changes in the economy, regulatory environment or our eligibility for Title IV Program funds
or other federal and state student financial assistance may cause us to terminate programs. Closing facilities or other exit activities
involve costs and expenses which can be significant. Actual costs and expenses involved in closing facilities or other exit activities
may be higher than expected. Under ED regulations, students who attended a closed institution or a closed location of an institution
may qualify for discharges of federal student loans and ED may impose the amount of loan discharges as liabilities on the institution
or affiliated parties including us. Under ED regulations effective July 1, 2024, a discontinuation of programs or locations that enroll
more than 25 percent of an institution’s enrolled students can constitute a discretionary triggering event if ED determines the
discontinuation is likely to have a significant adverse effect on the financial condition of the institution. The benefits anticipated
from closing facilities, other exit activities or restructuring activities such as those involved in our transformation strategy may
be less than anticipated due to a number of factors including unanticipated expenses in teaching out campuses and higher than expected