Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 46

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 46
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 reporting to ED on the electronic application for each of our institutions’ several hundred owners. Integrity may also encounter additional difficulty reporting ownership
given ED has not yet approved the prior change in control of Integrity and, as a result, we could encounter difficulty obtaining access
to the electronic application. ED has informed us that it only will require us to report owners with a five percent or greater ownership
interest in the Company although this guidance could change in the future and we could encounter difficulty identifying and timely reporting
owners under current or future ED guidance. Our institutions will also be required to timely report any additional changes to ownership
percentages and given the frequency such changes can occur for a publicly traded company, we may have difficulty timely complying with
ED’s reporting requirements. These difficulties could result in adverse action by ED, or conditions or restrictions imposed by
ED on one or more of our institutions.

29

If
we decide to issue preferred stock or additional common stock in the future, this issuance could result in a change in ownership or control
requiring regulatory approval. ED considers both control rights and beneficial ownership interest among other factors when evaluating
whether a change in ownership resulting in a change in control has occurred. Similarly, changes to our board of directors or the right
to appoint directors could result in a change in ownership or control requiring regulatory approval.

We have verified that most of our education regulators and accreditors
do not treat the initial public offering as a change in ownership or control requiring agency approval. If agencies require us to obtain
approvals in connection with the initial public offering, we will be required to undergo an application process for approvals from the
applicable agencies and could be subject to conditions or restrictions depending on the outcome of the approval process. If an agency
notified us that we moved forward with the initial public offering without making or obtaining required pre-closing notices and approvals
prior to the initial public offering, we could be subject to sanctions by the applicable agencies including loss of our approvals from
these agencies. On July 30, 2024, ED provided written confirmation the initial public offering as described would not constitute a change
of control under its regulations. However, subsequent offerings, transactions or other events could be deemed to be a change of control
in the future.

With
regard to the agencies that institutionally accredit our institutions or authorize them to operate in the state of California:

    ●
    BPPE: BPPE regulations require that institutions that are authorized based on their accredited status and which undergo a