The Outlook revision to Negative reflects the expected dilution of unrestricted liquidity in FY23 when Meritus plans to apply for candidate status with the Commission on Osteopathic College Accreditation (COCA) for the proposed Meritus School of Osteopathic Medicine (MSOM). The application will result in Meritus utilizing approximately $50 million of liquidity to fund an escrowed segregated, unencumbered reserve fund and operating reserve fund that will be released if MSOM receives final accreditation.
