Company: LGCY
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006418
Chunk: 32

Company: Legacy Education Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 was $1.94 per option.

The
Company recorded share-based compensation expense of $109,157 and $176,188 during the three and six months ended December 31, 2024, which
is included in educational services. Unamortized compensation expense associated with unvested options is $1,045,157 and $737,333 as
of December 31, 2024 and June 30, 2024, respectively. The weighted average period over which these costs are expected to be recognized
is approximately 2.45 and 2.75 years.

Note
15 - Other Commitments and Contingency

Regulatory

In
order for students to participate in Title IV federal financial aid programs, the Company is required to maintain certain standards of
financial responsibility and administrative capability. In addition, the Company is accredited with ACCET and ABHES and approved by other
agencies and must comply with rules and regulations of the accrediting body. As a result, the Company may be subject from time to time
to audits, investigations, claims of noncompliance or lawsuits by governmental agencies, regulatory bodies, or third parties. While there
can be no assurance that such matters will not occur and if they do occur will not have a material adverse effect on these financial
statements, management believes that the Company has complied in all material respects with all regulatory requirements as of the date
of the financial statements.

The
Company is subject to extensive regulation by federal and state governmental agencies and accrediting bodies. In particular, the Higher
Education Act of 1965, as amended (the “Higher Education Act”), and the regulations promulgated thereunder by ED, subject
the Company to significant regulatory scrutiny on the basis of numerous standards that schools must satisfy in order to participate in
the various federal student financial assistance programs under Title IV of the Higher Education Act.

    F-20

Legacy
Education Inc.

Notes
to Consolidated Financial Statements

For
The Three and Six Months ended December 31, 2024 and 2023

(Unaudited)

Composite
Score

As
described above, ED requires institutions to meet standards of financial responsibility. ED deems an institution financially responsible
when the composite score is at least 1.5. The Company’s composite score was 3.0 for the fiscal year ended June 30, 2024.

90/10
Disclosure

The
Company derives a substantial portion of its revenues from student financial aid received