Company: LGCY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022296
Chunk: 46

Company: Legacy Education Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 8
Chunk 46
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 ended September 30, 2025 and 2024,
respectively.

8

Title
IV and other government funding

A
significant portion of our revenue is derived from student tuition payments funded by the Title IV Programs. As such, the timing of disbursements
under the Title IV Programs is based on federal regulations and our ability to successfully and timely arrange financial aid for our
students. Title IV Program funds are generally provided in multiple disbursements before we earn a significant portion of tuition and
fees and incur related expenses over the period of instruction. Students must apply for new Title IV Program loans and grants each academic
year. These factors, together with the timing of our students beginning their programs, affect our operating cash flow.

Financial
responsibility

Based
on the most recent fiscal year-end financial statements, we satisfied the composite score requirement of the financial responsibility
test which institutions must satisfy in order to participate in the Title IV Programs.

Cash
Flow Activities for the Three Months Ended September 30, 2025 and 2024

Operating
activities

Net
cash provided by operating activities was approximately $1.1 million and $3.2 million for the three months ended September 30, 2025,
and 2024, respectively. The decrease of approximately $2.1 million is primarily attributable to increase to accounts receivable, prepaid
expenses and other receivables, offset by an increase in income taxes payable and a reduction to deferred unearned tuition.

Investing
activities

Net
cash used in investing activities remained constant and was approximately $0.2 million for the three months ended September 30, 2025,
and approximately $0.2 million for the three months ended September 30, 2024 with cash used for purchases of property and equipment in
each of the respective reporting periods.

Financing
activities

Net
cash used by financing activities was approximately $0.5 million for the three months ended September 30, 2025, as compared to net cash
provided by financing activities of approximately $8.2 million for the three months ended September 30, 2024. Cash used in the three
months ended June 30, 2025 was predominantly related to the reduction of debt and lease payments, offset by proceeds from the exercise
of stock options. Cash provided by financing activities in the three months ended September 30, 2024 was predominantly related to proceeds
from the Company’s IPO, net of offering costs, offset by