The process is very simple! Just go to your Advanced Academy Settings and under Password Recovery Questions, turn the toggle to yes.
This setting allows users that don't have an email address set, to recover their password through security questions which they have to set up upon their first login.
So, once the user will try to log in for the first time, he will be asked to choose and answer 3 security questions (out of 10).
Note: If there were users who were logged into the academy prior to enabling the password recovery questions, they will be asked to choose the three questions upon their next login!
So, if the user has forgotten his/her password, does not have an email tied to his/her account but has answered the 3 security questions, he/she can click on the Forgot password, select the Don't have an email address option, add his/her username and hit Recover. Once the user answers the security questions he/she will receive an email in order to set a new password!
Please note that each user can edit the answers on the password recovery questions by navigating to Me> My Settings> My Account> Password Recovery Questions: