COVER PAGE
COVER PAGE - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Jul. 02, 2020 | Oct. 31, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Apr. 30, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-38175 | ||
Entity Registrant Name | ASPEN GROUP, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-1933597 | ||
Entity Address, Address Line One | 276 Fifth Avenue | ||
Entity Address, Address Line Two | Suite 505 | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10001 | ||
City Area Code | 646 | ||
Local Phone Number | 448-5144 | ||
Title of 12(b) Security | Common Stock, par value $0.001 | ||
Trading Symbol | ASPU | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 108 | ||
Entity Common Stock, Shares Outstanding | 22,240,993 | ||
Documents Incorporated by Reference | Portions of the registrant's proxy statement for the 2020 Annual Meeting of Shareholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. | ||
Entity Central Index Key | 0001487198 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --04-30 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 14,350,554 | $ 8,316,285 |
Restricted cash | 3,556,211 | 1,651,467 |
Accounts receivable, net of allowance of $1,758,920 and $1,247,031, respectively | 14,326,791 | 10,656,470 |
Prepaid expenses | 941,671 | 410,745 |
Other receivables | 23,097 | 2,145 |
Other current assets | 173,090 | 0 |
Total current assets | 33,371,414 | 21,037,112 |
Property and equipment: | ||
Property and equipment, gross | 8,988,662 | 6,216,864 |
Accumulated depreciation and amortization | (2,841,019) | (1,825,524) |
Total property and equipment, net | 6,147,643 | 4,391,340 |
Goodwill | 5,011,432 | 5,011,432 |
Finite-lived intangible assets, net | 7,900,000 | 8,541,667 |
Accounts receivable, secured - net of allowance of $625,963, and $625,963, respectively | 45,329 | 45,329 |
Long term contractual accounts receivable | 6,701,136 | 3,085,243 |
Debt issue cost, net | 182,418 | 300,824 |
Operating lease right of use asset, net | 6,412,851 | 0 |
Deposits and other assets | 355,831 | 629,626 |
Total assets | 66,239,511 | 43,204,503 |
Current liabilities: | ||
Accounts payable | 1,505,859 | 1,699,221 |
Accrued expenses | 537,413 | 651,418 |
Deferred revenue | 3,712,994 | 2,456,865 |
Refunds due students | 2,371,844 | 1,174,501 |
Deferred rent, current portion | 0 | 47,436 |
Convertible note payable | 0 | 50,000 |
Operating lease obligations, current portion | 1,683,252 | 0 |
Other current liabilities | 545,711 | 270,786 |
Total current liabilities | 10,357,073 | 6,350,227 |
Convertible notes, net of discount of $1,550,854 | 8,449,146 | 0 |
Senior secured loan payable, net of discount of $353,328 | 0 | 9,646,672 |
Operating lease obligations | 5,685,335 | 0 |
Deferred rent | 0 | 746,176 |
Total liabilities | 24,491,554 | 16,743,075 |
Commitments and contingencies - See Note 10 | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 1,000,000 shares authorized, 0 issued and outstanding at April 30, 2020 and April 30, 2019 | 0 | 0 |
Common stock, $0.001 par value; 40,000,000 shares authorized, 21,770,520 issued and 21,753,853 outstanding at April 30, 2020 18,665,551 issued and 18,648,884 outstanding at April 30,2019 | 21,771 | 18,666 |
Additional paid-in capital | 89,505,216 | 68,562,727 |
Treasury stock (16,667 shares) | (70,000) | (70,000) |
Accumulated deficit | (47,709,030) | (42,049,965) |
Total stockholders’ equity | 41,747,957 | 26,461,428 |
Total liabilities and stockholders’ equity | 66,239,511 | 43,204,503 |
Computer equipment & hardware | ||
Property and equipment: | ||
Property and equipment, gross | 649,927 | 521,395 |
Furniture and fixtures | ||
Property and equipment: | ||
Property and equipment, gross | 1,007,099 | 915,936 |
Leasehold improvements | ||
Property and equipment: | ||
Property and equipment, gross | 867,024 | 204,545 |
Instructional equipment | ||
Property and equipment: | ||
Property and equipment, gross | 301,842 | 260,790 |
Software | ||
Property and equipment: | ||
Property and equipment, gross | 6,162,770 | 4,314,198 |
Finite-lived intangible assets, net | 4,112,961 | 2,963,005 |
Intangible assets, net | ||
Property and equipment: | ||
Finite-lived intangible assets, net | 7,900,000 | 8,541,667 |
Courseware, net | ||
Property and equipment: | ||
Finite-lived intangible assets, net | $ 111,457 | $ 161,930 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 |
Assets | ||
Allowance for doubtful accounts | $ 1,758,920 | $ 1,247,031 |
Accounts receivable, allowance for credit loss, noncurrent | 625,963 | 625,963 |
Debt instrument, unamortized discount | $ 1,550,854 | $ 353,328 |
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | |
Common stock, shares authorized (in shares) | 40,000,000 | |
Common stock, shares issued (in shares) | 21,770,520 | 18,665,551 |
Common stock, shares outstanding (in shares) | 21,753,853 | 18,648,884 |
Treasury stock, shares | 16,667 | 16,667 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Income Statement [Abstract] | ||
Revenues | $ 49,061,080 | $ 34,025,418 |
Operating expenses | ||
Cost of revenues (exclusive of depreciation and amortization shown separately below) | 19,135,302 | 15,977,218 |
General and administrative | 30,329,520 | 24,133,820 |
Bad debt expense | 1,431,210 | 854,008 |
Depreciation and amortization | 2,203,461 | 2,170,098 |
Total operating expenses | 53,099,493 | 43,135,144 |
Operating loss | (4,038,413) | (9,109,726) |
Other income (expense): | ||
Other income | 249,246 | 276,189 |
Interest expense | (1,818,078) | (444,680) |
Total other expense, net | (1,568,832) | (168,491) |
Loss before income taxes | (5,607,245) | (9,278,217) |
Income tax expense | 51,820 | 0 |
Net loss | $ (5,659,065) | $ (9,278,217) |
Net loss per share allocable to common stockholders - basic and diluted | $ (0.29) | $ (0.50) |
Weighted average number of common shares outstanding: basic and diluted | 19,708,708 | 18,409,459 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit |
Beginning balance at Apr. 30, 2018 | $ 33,733,591 | $ 18,334 | $ 66,557,005 | $ (70,000) | $ (32,771,748) |
Beginning balance (in shares) at Apr. 30, 2018 | 18,333,521 | ||||
Stock-based compensation | 1,190,385 | 1,190,385 | |||
Common stock issued for cashless stock options exercised | 0 | $ 112 | (112) | ||
Common stock issued for cashless stock options exercised (in shares) | 111,666 | ||||
Common stock issued for stock options exercised for cash | $ 128,201 | $ 56 | 128,145 | ||
Common stock issued for stock options exercised for cash (in shares) | 194,276 | 56,910 | |||
Common stock issued for cashless warrant exercise | $ 0 | $ 120 | (120) | ||
Common stock issued for cashless exercise of stock options (in shares) | 111,666 | 119,594 | |||
Common stock issued for warrants exercised for cash | $ 100,000 | $ 44 | 99,956 | ||
Common stock issued for warrants exercised for cash (in shares) | 43,860 | ||||
Warrants issued with debt financing | 615,587 | 615,587 | |||
Amortization of warrant based cost issued for services | 1,713 | 1,713 | |||
Purchase of treasury stock, net of broker fees | (7,370,000) | (7,370,000) | |||
Re-sale of treasury stock, net of broker fees | 7,370,000 | 7,370,000 | |||
Issuance costs | (29,832) | (29,832) | |||
Net loss | (9,278,217) | (9,278,217) | |||
Ending balance at Apr. 30, 2019 | 26,461,428 | $ 18,666 | 68,562,727 | (70,000) | (42,049,965) |
Ending balance (in shares) at Apr. 30, 2019 | 18,665,551 | ||||
Stock-based compensation | 2,116,309 | 2,116,309 | |||
Amortization of restricted stock issued for service | 122,250 | 122,250 | |||
Common stock issued for cashless stock options exercised | 0 | $ 191 | (191) | ||
Common stock issued for cashless stock options exercised (in shares) | 190,559 | ||||
Common stock issued for stock options exercised for cash | $ 962,650 | $ 278 | 962,372 | ||
Common stock issued for stock options exercised for cash (in shares) | 363,334 | 277,678 | |||
Common stock issued for cashless warrant exercise | $ 0 | $ 77 | (77) | ||
Common stock issued for cashless exercise of stock options (in shares) | 190,559 | 76,929 | |||
Amortization of warrant based cost issued for services | $ 36,719 | 36,719 | |||
Restricted stock issued for services, subject to vesting | 0 | $ 144 | (144) | ||
Restricted stock issued for services, subject to vesting (in shares) | 144,803 | ||||
Common stock issued for equity raise, net of underwriter costs of $1,222,371 | 16,044,879 | $ 2,415 | 16,042,464 | ||
Common stock issued in equity raise, net of underwriter costs of $1,222,371 (in shares) | 2,415,000 | ||||
Issuance costs | (51,282) | (51,282) | |||
Beneficial conversion feature on Convertible Debt | 1,692,309 | 1,692,309 | |||
Common stock short swing reclamation | 21,760 | 21,760 | |||
Net loss | (5,659,065) | (5,659,065) | |||
Ending balance at Apr. 30, 2020 | $ 41,747,957 | $ 21,771 | $ 89,505,216 | $ (70,000) | $ (47,709,030) |
Ending balance (in shares) at Apr. 30, 2020 | 21,770,520 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) | 12 Months Ended |
Apr. 30, 2020USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Underwriter costs | $ 1,222,371 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (5,659,065) | $ (9,278,217) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Bad debt expense | 1,431,210 | 854,008 |
Depreciation and amortization | 2,203,461 | 2,170,098 |
Stock-based compensation | 2,116,309 | 1,190,385 |
Warrants issued for service | 36,719 | 1,713 |
Loss on asset disposition | 3,918 | 0 |
Lease expense | 162,127 | 0 |
Amortization of debt discounts | 261,128 | 40,881 |
Amortization of debt issue costs | 118,406 | 54,247 |
Gain on debt extinguishment | (50,000) | 0 |
Non-cash payments to investor relation firm | 122,250 | 0 |
Cash paid to settle convertible debt | 0 | 60,932 |
Amortization of prepaid shares for services | 0 | 8,285 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (8,717,424) | (6,477,948) |
Prepaid expenses | (530,926) | (219,624) |
Other receivables | (20,952) | 182,424 |
Other current assets | (173,090) | 0 |
Deposits and other assets | 273,792 | (44,660) |
Accounts payable | (193,362) | (527,993) |
Accrued expenses | 138,467 | (7,436) |
Deferred rent | 0 | 663,376 |
Refunds due students | 1,197,343 | 358,660 |
Deferred revenue | 1,256,129 | 642,729 |
Other liabilities | 274,927 | 112,126 |
Net cash used in operating activities | (5,748,633) | (10,216,014) |
Cash flows from investing activities: | ||
Purchases of courseware and accreditation | (13,851) | (91,522) |
Purchases of property and equipment | (3,276,510) | (2,531,521) |
Net cash used in investing activities | (3,290,361) | (2,623,043) |
Cash flows from financing activities: | ||
Proceeds from sale of common stock net of underwriter costs | 16,044,879 | 0 |
Disbursements for equity offering costs | (51,282) | (29,832) |
Common stock short swing reclamation | 21,760 | 0 |
Proceeds of stock options exercised and warrants exercised | 962,650 | 228,201 |
Proceeds of senior secured loan | 0 | 10,000,000 |
Repayment of convertible note payable | 0 | (2,000,000) |
Offering costs paid on debt financing | 0 | (100,000) |
Closing costs of senior secured loans | 0 | (33,693) |
Cash paid to settle convertible debt | 0 | (60,932) |
Purchase of treasury stock | 0 | (7,370,000) |
Re-sale of treasury stock | 0 | 7,370,000 |
Net cash provided by financing activities | 16,978,007 | 8,003,744 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 7,939,013 | (4,835,313) |
Cash and cash equivalents and restricted cash at beginning of year | 9,967,752 | 14,803,065 |
Cash and cash equivalents and restricted cash at end of year | 17,906,765 | 9,967,752 |
Supplemental disclosure cash flow information: | ||
Cash paid for interest | 1,208,285 | 118,217 |
Cash paid for income taxes | 51,820 | 0 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Common stock issued for services | 178,477 | 29,809 |
Beneficial conversion feature on convertible debt | 1,692,309 | 0 |
Gain on debt extinguishment | 50,000 | 0 |
Right-of-use lease asset offset against operating lease obligations | 8,988,525 | 0 |
Warrants issued as part of revolving credit facility | 0 | 255,071 |
Warrants issued as part of senior secured term loans | 0 | 360,516 |
Total cash and restricted cash | $ 17,906,765 | $ 14,803,065 |
Nature of Operations and Liquid
Nature of Operations and Liquidity | 12 Months Ended |
Apr. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Liquidity | Nature of Operations and Liquidity Overview Aspen Group, Inc. (together with its subsidiaries, the "Company" or "AGI") is an education technology holding company. AGI has five subsidiaries, Aspen University Inc. ("Aspen University" or AUI") organized in 1987, Aspen Nursing of Arizona, Inc. ("ANAI"), Aspen Nursing of Florida, Inc. ("ANFI"), Aspen Nursing of Texas, Inc. ("ANTI"), and United States University Inc. ("United States University" or "USU"). ANAI, ANFI and ANTI are subsidiaries of Aspen University Inc. All references to the “Company”, “AGI”, “Aspen Group”, “we”, “our” and “us” refer to Aspen Group, Inc., unless the context otherwise indicates. AGI leverages its education technology infrastructure and expertise to allow its two universities, Aspen University and United States University, to deliver on the vision of making college affordable again. Because we believe higher education should be a catalyst to our students’ long-term economic success, we exert financial prudence by offering affordable tuition that is one of the greatest values in higher education. AGI’s primary focus relative to future growth is to target the high growth nursing profession. As of April 30, 2020, 9,710 of 11,444 or 85% of all students across both universities are degree-seeking nursing students. Since 1993, Aspen University has been nationally accredited by the Distance Education and Accrediting Council (“DEAC”), a national accrediting agency recognized by the United States Department of Education (the “DOE”) and Council for Higher Education Accreditation ("CHEA"). On February 25, 2019, the DEAC informed Aspen University that it had renewed its accreditation for five years through January 2024. Since 2009, USU has been regionally accredited by WASC Senior College and University Commission (“WSCUC”). Both universities are qualified to participate under the Higher Education Act of 1965, as amended (HEA) and the Federal student financial assistance programs (Title IV, HEA programs). USU has a provisional certification resulting from the ownership change of control in connection with the acquisition by AGI on December 1, 2017. COVID-19 Update The COVID-19 crisis did not have a material impact on the Company’s financial results for the fourth quarter of fiscal year 2020, as evidenced by our record revenues of $14,079,193. Course starts and persistence amongst our active student body remained at pre-COVID-19 levels throughout the fourth quarter of fiscal year 2020 and during May and June, 2020. Enrollments in our highest LTV programs remained at pre-COVID-19 levels throughout the fourth quarter of fiscal year 2020, however the Company did experience a moderate slowdown in Aspen University post-licensure online nursing degree enrollments for approximately a six week period between mid-March and end-April 2020. Subsequently, enrollments across all units in the Company returned to pre-COVID-19 levels throughout May and June, 2020. COVID-19 has focused a spotlight on the shortage of nurses in the U.S. and, in particular, the need for nurses with four-year and advanced degrees such as USU’s MSN-FNP and Aspen University’s DNP programs. We believe we will be operating in a tailwind environment for many years relative to the planned expansion of our Pre-Licensure BSN hybrid campus business. Liquidity At April 30, 2020, the Company had a cash and cash equivalents balance of $14,350,554 with an additional $3,556,211 in restricted cash. In March 2019, the Company entered into two loan agreements for a principal amount of $5 million each and received total proceeds of $10 million. In connection with the loan agreements, the Company issued 18 month senior secured promissory notes, with the right to extend the term of the loans for an additional 12 months by paying a 1% one-time extension fee. On January 22, 2020, the Term Loans were exchanged for convertible notes maturing January 22, 2023. (See Note 9) On January 22, 2020, the Company closed on an underwritten public offering of common stock for the net proceeds of approximately $16 million. The public offering was a condition precedent to the closing of the refinancing described above. On November 5, 2018 the Company entered into a three The Company paid $1,160,000 of principal and accrued interest related to a convertible note on December 3, 2018, as explained in Note 9. Also, on February 25, 2019, the Company paid a total of $1,080,000, which included the remaining $1 million of principal, $19,068 of accrued unpaid interest and settlement expense of $60,932 to prepay the debt and eliminate the holder’s conversion option. This was the final payment for the acquisition of USU and was originally due on December 1, 2019. (See Note 9). During the year ended April 30, 2020 the Company provided net cash of $7,939,013, which included using $5,748,633 in operating activities. The Company has analyzed its liquidity position and believes its current resources are adequate to meet anticipated liquidity needs for the next 12 months. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation and Consolidation The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"). The consolidated financial statements include the accounts of AGI and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Accounting Estimates Management of the Company is required to make certain estimates, judgments and assumptions during the preparation of its consolidated financial statements in accordance with GAAP. These estimates, judgments and assumptions impact the reported amounts of assets, liabilities, revenue and expenses and the related disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Significant estimates in the accompanying consolidated financial statements include the allowance for doubtful accounts and other receivables, the valuation of collateral on certain receivables, the carrying value of right-of-use ("ROU") assets, estimates of the fair value of assets acquired and liabilities assumed in a business combination, depreciable lives of property and equipment, amortization periods and valuation of courseware, intangibles and software development costs, valuation of beneficial conversion features in convertible debt, valuation of goodwill, valuation of loss contingencies, valuation of stock-based compensation and the valuation allowance on deferred tax assets. Cash, Cash Equivalents, and Restricted Cash For the purposes of the consolidated statements of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. ASU No 2016-18 – In November 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-18, Statement of Cash Flows (Topic 230) Restricted Cash (ASU 2016- 18), requiring restricted cash and cash equivalents to be included with cash and cash equivalents of the statement of cash flows. The standard is effective for fiscal years, and interim periods with those year, beginning December 15, 2017, with early adoption permitted. The Company adopted this ASU on May 1, 2018. As of April 30, 2020, restricted cash of $3,556,211 consists of $692,293 which is collateral for letters of credit for the Aspen University and USU facility operating leases and $255,708, which is collateral for a letter of credit issued by the bank and $71,828 which is related to USU’s receipt of Title IV funds and is required by the Department of Education ("DOE") in connection with the change of control of USU. Also included are funds held for students for unbilled educational services that were received from Title IV and non-Title IV programs totaling $2,536,382. As an administrator of these Title IV program funds, the Company is required to maintain and restrict these funds pursuant to the terms of the program participation agreement with the U.S. Department of Education. Restricted cash as of April 30, 2019 was $1,651,467 and includes $120,864 which is collateral for the USU facility operating lease and $255,708, which is collateral for a letter of credit issued by the bank and $71,828 which is related to USU’s receipt of Title IV funds and is required by DOE in connection with the change of control of USU. Also included are funds held for students for unbilled educational services that were received from Title IV and non-Title IV programs totaling $1,203,067 which were previously included in Cash and cash equivalents. See Prior Period Reclassifications below for additional information. Concentration of Credit Risk The Company maintains its cash in bank and financial institution deposits that at times may exceed federally insured limits of $250,000 per financial institution. The Company has not experienced any losses in such accounts from inception through April 30, 2020. As of April 30, 2020 and 2019, there were deposits totaling $16,742,603 and $9,359,208 respectively, held in two separate institutions. Goodwill and Intangibles Goodwill currently represents the excess of purchase price over the fair market value of assets acquired and liabilities assumed from Educacion Significativa, LLC. Goodwill has an indefinite life and is not amortized. Goodwill is tested annually for impairment. We have selected an April 30th annual goodwill impairment test date. ASU 2017-04 - In January 2017, the Financial Accounting Standards Board issued Accounting Standards Update No. 2017-04: "Intangibles - Goodwill and Other (Topic 350)” - to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019. The Company early adopted this standard effective April 30, 2018. Intangible assets represent both indefinite lived and definite lived assets. Accreditation and regulatory approvals and Trade name and trademarks are deemed to have indefinite useful lives and accordingly are not amortized but are tested annually for impairment. Student relationships and curriculums are deemed to have definite lives and are amortized accordingly. Fair Value Measurements Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company classifies assets and liabilities recorded at fair value under the fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. The fair value measurements are classified under the following hierarchy: Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets and liabilities in active markets; Level 2—Observable inputs, other than quoted market prices, that are either directly or indirectly observable in the marketplace for identical or similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities; and Level 3—Unobservable inputs that are supported by little or no market activity that are significant to the fair value of assets or liabilities. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. Accounts Receivable and Allowance for Doubtful Accounts Receivable All students are required to select both a primary and secondary payment option with respect to amounts due to AGI for tuition, fees and other expenses. As of April 30, 2020, the monthly payment plan represents approximately 57% of the payments that are made by students, making it the most common payment type. In instances where a student selects financial aid as the primary payment option, he or she often selects personal cash as the secondary option. If a student who has selected financial aid as his or her primary payment option withdraws prior to the end of a course but after the date that AGI’s institutional refund period has expired, the student will have incurred the obligation to pay the full cost of the course. If the withdrawal occurs before the date at which the student has earned 100% of his or her financial aid, AGI may have to return all or a portion of the Title IV funds to the DOE and the student will owe AGI all amounts incurred that are in excess of the amount of financial aid that the student earned, and that AGI is entitled to retain. In this case, AGI must collect the receivable using the student’s second payment option. For accounts receivable from students, AGI records an allowance for doubtful accounts for estimated losses resulting from the inability, failure or refusal of its students to make required payments, which includes the recovery of financial aid funds advanced to a student for amounts in excess of the student’s cost of tuition and related fees. AGI determines the adequacy of its allowance for doubtful accounts using an allowance method based on an analysis of its historical bad debt experience, current economic trends, and the aging of the accounts receivable and each student’s status. AGI estimates the amounts to increase the allowance based upon the risk presented by the age of the receivables and student status. AGI writes off accounts receivable balances at the time the balances are deemed uncollectible. AGI continues to reflect accounts receivable with an offsetting allowance as long as management believes there is a reasonable possibility of collection. For accounts receivable from primary payors other than students, AGI estimates its allowance for doubtful accounts by evaluating specific accounts where information indicates the customers may have an inability to meet financial obligations, such as bankruptcy proceedings and receivable amounts outstanding for an extended period beyond contractual terms. In these cases, AGI uses assumptions and judgment, based on the best available facts and circumstances, to record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated are analyzed to determine the total amount of the allowance. AGI may also record a general allowance as necessary. Direct write-offs are taken in the period when AGI has exhausted its efforts to collect overdue and unpaid receivables or otherwise evaluate other circumstances that indicate that AGI should abandon such efforts. (See Note 14) When a student signs up for the monthly payment plan, there is a contractual amount that the Company can expect to earn over the life of the student’s program. This contractual amount cannot be recorded as an accounts receivable because, the student does have the option to stop attending. As a student takes a class, revenue is earned over the class term. Some students accelerate their program, taking two or more classes every eight week period, which increases the student’s accounts receivable balance. If any portion of that balance will be paid in a period greater than 12 months, that portion is reflected as long-term accounts receivable. At April 30, 2020 and 2019, those balances are $6,701,136 and $3,085,243, respectively. The Company has determined that the long term accounts receivable do not constitute a significant financing component as the list price, cash selling price and promised consideration are equal. Further, the interest free financing portion of the monthly payment plans are not considered significant to the contract. Property and Equipment Property and equipment are recorded at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets per the following table. Category Useful Life Computer equipment & hardware 3 years Software 5 years Instructional equipment 5 years Furniture and fixtures 7 years Leasehold improvements The lesser of 8 years or the number of years of the lease term Costs incurred to develop internal-use software during the preliminary project stage are expensed as incurred. Internal-use software development costs are capitalized during the application development stage, which is after: (i) the preliminary project stage is completed; and (ii) management authorizes and commits to funding the project and it is probable the project will be completed and used to perform the function intended. Capitalization ceases at the point the software project is substantially complete and ready for its intended use, and after all substantial testing is completed. Upgrades and enhancements are capitalized if it is probable that those expenditures will result in additional functionality. Depreciation is provided for on a straight-line basis over the expected useful life of five years of the internal-use software development costs and related upgrades and enhancements. When existing software is replaced with new software, the unamortized costs of the old software are expensed when the new software is ready for its intended use. Upon the retirement or disposition of property and equipment, the related cost and accumulated depreciation are removed and a gain or loss is recorded in the consolidated statements of operations. Repairs and maintenance costs are expensed in the period incurred. Courseware and Accreditation The Company records the costs of courseware and accreditation in accordance with the FASB Accounting Standards Codification (“ASC”) Topic 350 “Intangibles - Goodwill and Other”. Generally, costs of courseware creation and enhancement are capitalized. Accreditation renewal or extension costs related to intangible assets are capitalized as incurred. Courseware is stated at cost less accumulated amortization. Amortization is provided for on a straight-line basis over the expected useful life of five years. Long-Lived Assets The Company assesses potential impairment to its long-lived assets when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events and circumstances considered by the Company in determining whether the carrying value of identifiable intangible assets and other long-lived assets may not be recoverable include, but are not limited to: significant changes in performance relative to expected operating results, significant changes in the use of the assets, significant negative industry or economic trends, a significant decline in the Company’s stock price for a sustained period of time, and changes in the Company’s business strategy. An impairment loss is recorded when the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Any required impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds fair value and is recorded as a reduction in the carrying value of the related asset and an expense to operating results. Refunds Due Students The Company receives Title IV funds from the Department of Education to cover tuition and living expenses. After deducting tuition and fees, the Company sends checks for the remaining balances to the students. Leases The Company enters into various lease agreements in conducting its business. At the inception of each lease, the Company evaluates the lease agreement to determine whether the lease is an operating or capital lease. Leases may contain initial periods of free rent and/or periodic escalations. When such items are included in a lease agreement, the Company records rent expense on a straight-line basis over the initial term of a lease. The difference between the rent payment and the straight-line rent expense is recorded as additional amortization. The Company expenses any additional payments under its operating leases for taxes, insurance or other operating expenses as incurred. In February 2016, FASB issued Accounting Standards Update, or ASU, No. 2016-2, Leases (Topic 842). This standard requires entities to recognize most operating leases on their balance sheets as right-of-use assets with a corresponding lease liability, along with disclosing certain key information about leasing arrangements. The Company adopted the standard effective May 1, 2019 using the cumulative effect adjustment transition method, which applies the provisions of the standard at the effective date without adjusting the comparative periods presented. The Company adopted the following practical expedients and elected the following accounting policies related to this standard: • Carry forward of historical lease classification; • Short-term lease accounting policy election allowing lessees to not recognize right-of-use assets and lease liabilities for leases with a term of 12 months or less; and • Not separate lease and non-lease components for office space and campus leases. The adoption of this standard resulted in the recognition of an initial operating lease right-of-use assets (“ROU’s”) and corresponding lease liabilities of approximately $8.8 million, on the Consolidated Balance Sheet as of May 1, 2019. For presentation purposes, the deferred rent liability is presented as a separate line item at April 30, 2019 and is deducted from the operating lease ROU asset at April 30, 2020. There was no impact to the Company’s net income or liquidity as a result of the adoption of this ASU. Additionally, the standard did not materially impact the Company's consolidated statements of cash flows. Disclosures related to the amount, timing, and uncertainty of cash flows arising from leases are included in Note 11. Treasury Stock Purchases and sales of treasury stock are accounted for using the cost method. Under this method, shares acquired are recorded at the acquisition price directly to the treasury stock account. Upon sale, the treasury stock account is reduced by the original acquisition price of the shares and any difference is recorded in equity. This method does not allow the company to recognize a gain or loss to income from the purchase and sale of treasury stock. Revenue Recognition and Deferred Revenue On May 1, 2018, the Company adopted Accounting Standards Codification 606 (ASC 606). ASC 606 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASC also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer purchase orders, including significant judgments. Our adoption of this ASC, resulted in no change to our results of operations or our balance sheet. Revenues consist primarily of tuition and course fees derived from courses taught by the Company online as well as from related educational resources and services that the Company provides to its students. Under ASC 606, this tuition revenue is recognized pro-rata over the applicable period of instruction and are not considered separate performance obligations. Non-tuition related revenue and fees are recognized as services are provided or when the goods are received by the student. (See Note 14) Cost of Revenues Cost of revenues consists of two categories of cost, instructional costs and services, and marketing and promotional costs. Instructional Costs and Services Instructional costs and services consist primarily of costs related to the administration and delivery of the Company's educational programs. This expense category includes compensation costs associated with online faculty, technology license costs and costs associated with other support groups that provide services directly to the students and are included in cost of revenues. Marketing and Promotional Costs Marketing and promotional costs include costs associated with producing marketing materials and advertising. Such costs are generally affected by the cost of advertising media, the efficiency of the Company's marketing and recruiting efforts, and expenditures on advertising initiatives for new and existing academic programs. Non-direct response advertising activities are expensed as incurred, or the first time the advertising takes place, depending on the type of advertising activity. Total marketing and promotional costs were $9,495,980 and $9,096,550 for year ended April 30, 2020 and 2019, respectively and are included in cost of revenues. General and Administrative General and administrative expenses include compensation of employees engaged in corporate management, finance, human resources, information technology, academic operations, compliance and other corporate functions. General and administrative expenses also include professional services fees, financial aid processing costs, non-capitalizable courseware and software costs, travel and entertainment expenses and facility costs. Legal Expenses All legal costs for litigation are charged to expense as incurred. Income Tax The Company uses the asset and liability method to compute the differences between the tax basis of assets and liabilities and the related financial statement amounts. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. The Company has deferred tax assets and liabilities that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets are subject to periodic recoverability assessments. Realization of the deferred tax assets, net of deferred tax liabilities, is principally dependent upon achievement of projected future taxable income. The Company records a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company accounts for uncertainty in income taxes using a two-step approach for evaluating tax positions. Step one, recognition, occurs when the Company concludes that a tax position, based solely on its technical merits, is more likely than not to be sustained upon examination. Step two, measurement, is only addressed if the position is more likely than not to be sustained. Under step two, the tax benefit is measured as the largest amount of benefit, determined on a cumulative probability basis, which is more likely than not to be realized upon ultimate settlement. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. Accounting for Derivatives The Company evaluates its convertible instruments, options, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for under ASC Topic 815, “Derivatives and Hedging”. The result of this accounting treatment is that the fair value of the derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the statement of operations as other income (expense). Upon conversion, exercise, or other extinguishment (transaction) of a derivative instrument, the instrument is marked to fair value at the transaction date and then that fair value is recognized as an extinguishment gain or loss. Equity instruments that are initially classified as equity that become subject to reclassification under ASC Topic 815 are reclassified to liability at the fair value of the instrument on the reclassification date. The Company has early adopted FASB ASU 2017-11, which simplifies the accounting for certain equity-linked financial instruments and embedded features with down round features that reduce the exercise price when the pricing of a future round of financing is lower. This allows the company to treat such instruments or their embedded features as equity instead of considering them as a derivative. If such a feature is triggered in a stand-alone instrument treated as equity, the value is measured pre-trigger and post-trigger. The difference in these two measurements is treated as a dividend, reducing income. The value recognized as a dividend is not subsequently remeasured, but in instances where the feature is triggered multiple times each instance is recognized. Stock-Based Compensation Stock-based compensation expense is measured at the grant date fair value of the award and is expensed over the requisite service period. For employee stock-based awards, the Company calculates the fair value of the award on the date of grant using the Black-Scholes option pricing model. Determining the fair value of stock-based awards at the grant date under this model requires judgment, including estimating volatility, employee stock option exercise behaviors and forfeiture rates. The assumptions used in calculating the fair value of stock-based awards represent the Company's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. For non-employee stock-based awards, the Company has early adopted ASU 2018-7, which substantially aligns share based compensation for employees and non-employees as noted below. ASU 2018-07 - In June 2018, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2018-07, Compensation – Stock Compensation (Topic 718). This update is intended to reduce cost and complexity and to improve financial reporting for share-based payments issued to non-employees (for example, service providers, external legal counsel, suppliers, etc.). The ASU expands the scope of Topic 718, Compensation—Stock Compensation, which currently only includes share-based payments issued to employees, to also include share-based payments issued to non-employees for goods and services. Consequently, the accounting for share-based payments to non-employees and employees will be substantially aligned. This standard will be effective for financial statements issued by public companies for the annual and interim periods beginning after December 15, 2018. Early adoption of the standard is permitted. The standard will be applied in a retrospective approach for each period presented. The company implemented this standard in February 2019. Business Combinations We include the results of operations of businesses we acquire from the date of the respective acquisition. We allocate the purchase price of acquisitions to the assets acquired and liabilities assumed at fair value. The excess of the purchase price of an acquired business over the amount assigned to the assets acquired and liabilities assumed is recorded as goodwill. We expense transaction costs associated with business combinations as incurred. Net Loss Per Share Net loss per common share is based on the weighted average number of common shares outstanding during each period. Options to purchase 2,734,899 and 3,408,154 common shares, 643,175 and 0 restricted stock units ("RSUs"), warrants to purchase 566,223 and 731,152 common shares, unvested restricted stock of 24,672 and 64,116, and $10,000,000 and $50,000 of convertible debt (convertible into 1,398,601 and 4,167 common shares) were outstanding at April 30, 2020 and 2019, respectively, but were not included in the computation of diluted net loss per share because the effects would have been anti-dilutive. The options, warrants and convertible debt are considered to be common stock equivalents and are only included in the calculation of diluted earnings per common share when their effect is dilutive. Segment Information The Company operates in one reportable segment as a single educational delivery operation using a core infrastructure that serves the curriculum and educational delivery needs of its online and campus students regardless of geography. The Company's chief operating decision makers, its Chief Executive Officer and Chief Academic Officer, manage the Company's operations as a whole. Recent Accounting Pronouncements Financial Accounting Standards Board, Accounting Standard Updates which are not effective until after April 30, 2020, are not expected to have a significant effect on the Company’s consolidated financial position or results of operations. Prior Period Reclassifications Certain amounts in prior periods have been reclassified to conform to the current year presentation. Restricted cash in fiscal 2020, previously included in cash in fiscal 2019, of $1,203,067 has been reclassified to include funds from: (1) unearned educational services that were received from Title IV programs that the Company will expect to be earned in the subsequent period up to approximately 84%; (2) non-Title IV funds held for students who have withdrawn representing refunds due students up to approximately 12%; and (3) other items up to approximately 4% for all periods presented. As an administrator of these Title IV program funds, the Company is required to maintain and restrict these funds pursuant to the terms of the program participation agreement with the U.S. Department of Education. See Consolidated Balance Sheets and Cash, Cash equivalents and Restricted cash section above for additional information. Property and equipment categories have been updated to align with the current period presentation for all periods presented. There was no impact to the useful lives of property and equipment at April 30, 2019. The computer and office equipment category has been renamed to computer equipment and hardware, and now includes call center equipment. The instructional equipment and leasehold improvements categories are now separate categories; previously included in furniture and fixtures. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Apr. 30, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable consisted of the following at April 30, 2020 and 2019: April 30, 2020 2019 Accounts receivable $ 22,786,847 $ 14,988,744 Long term contractual accounts receivable (6,701,136) (3,085,243) Less: Allowance for doubtful accounts (1,758,920) (1,247,031) Accounts receivable, net $ 14,326,791 $ 10,656,470 Bad debt expense for the years ended April 30, 2020 and 2019, were $1,431,210 and $854,008 respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Apr. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment As property and equipment reach the end of their useful lives, the fully expired assets are written off against the associated accumulated depreciation and amortization. There is no expense impact for such write offs. Property and equipment consisted of the following at April 30, 2020 and April 30, 2019: April 30, 2020 2019 Computer equipment and hardware $ 649,927 $ 521,395 Furniture and fixtures 1,007,099 915,936 Leasehold improvements 867,024 204,545 Instructional equipment 301,842 260,790 Software 6,162,770 4,314,198 8,988,662 6,216,864 Accumulated depreciation and amortization (2,841,019) (1,825,524) Property and equipment, net $ 6,147,643 $ 4,391,340 Software consisted of the following at April 30, 2020 and 2019: April 30, 2020 2019 Software $ 6,162,770 $ 4,314,198 Accumulated amortization (2,049,809) (1,351,193) Software, net $ 4,112,961 $ 2,963,005 Depreciation and amortization expense for all Property and Equipment as well as the portion for just software is presented below for the years ended April 30, 2020 and 2019: Years Ended April 30, 2020 2019 Depreciation and amortization expense $ 1,497,470 $ 1,002,347 Software amortization expense $ 1,013,466 $ 684,871 The following is a schedule of estimated future amortization expense of software at April 30, 2020: Year Ending April 30, 2021 $ 1,203,497 2022 1,109,903 2023 942,271 2024 639,618 Thereafter 217,672 Total $ 4,112,961 |
USU Goodwill and Intangibles
USU Goodwill and Intangibles | 12 Months Ended |
Apr. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
USU Goodwill and Intangibles | USU Goodwill and Intangibles On December 1, 2017, USU acquired United States University and assumed certain liabilities from Educacion Significativa, LLC (“ESL”). USU is a wholly owned subsidiary of AGI and was formed for the purpose of completing the asset purchase transaction. For purposes of purchase accounting, AGI is referred to as the acquirer. AGI acquired the assets and assumed certain liabilities of ESL for a purchase price of approximately $14.8 million. The purchase consideration consisted of a cash payment of $2,500,000 less an adjustment for working capital of approximately $110,000 plus approximately $200,000 of additional costs paid to/on behalf of and for the benefit of the seller, a convertible note of $2,000,000 and 1,203,209 shares of AGI stock valued at the quoted closing price of $8.49 per share as of November 30, 2017. The stock consideration represents $10,215,244 of the purchase consideration. The acquisition was accounted for by AGI in accordance with the acquisition method of accounting pursuant to ASC 805 “Business Combinations” and pushdown accounting was applied to record the fair value of the assets acquired and liabilities assumed on United States University, Inc. Under this method, the purchase price is allocated to the identifiable assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The excess of the amount paid over the estimated fair values of the identifiable net assets was $5,011,432 which has been reflected in the consolidated balance sheet as goodwill. The goodwill resulting from the acquisition may become deductible for tax purposes in the future. The goodwill resulting from the acquisition is principally attributable to the future earnings potential associated with enrollment growth and other intangibles that do not qualify for separate recognition such as the assembled workforce. We assigned an indefinite useful life to the accreditation and regulatory approvals and the trade name and trademarks as it believes they have the ability to generate cash flows indefinitely. In addition, there are no legal, regulatory, contractual, economic or other factors to limit the intangibles’ useful life and the Company intends to renew the intangibles, as applicable, and renewal can be accomplished at little cost. We determined all other acquired intangibles are finite-lived and we are amortizing them on either a straight-line basis or using an accelerated method to reflect the pattern in which the economic benefits of the assets are expected to be consumed. Amortization expense for the year ended April 30, 2020 and for the year ended April 30, 2019 was $641,667 and $1,100,000, respectively. Intangible assets consisted of the following at April 30, 2020 and April 30, 2019: April 30, 2020 2019 Intangible assets $ 10,100,000 $ 10,100,000 Accumulated amortization (2,200,000) (1,558,333) Net intangible assets $ 7,900,000 $ 8,541,667 |
Courseware and Accreditation
Courseware and Accreditation | 12 Months Ended |
Apr. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Courseware and Accreditation | Courseware and Accreditation Courseware & accreditation costs capitalized were $13,851 for the year ended April 30, 2020 and $91,522 for the year ended April 30, 2019. As courseware and accreditation reach the end of its useful life, it is written off against the accumulated amortization. There is no expense impact for such write-offs. Courseware and accreditation consisted of the following at April 30, 2020 and 2019: April 30, 2020 2019 Courseware $ 287,813 $ 325,987 Accreditation 59,350 57,100 Accumulated amortization (235,706) (221,157) Courseware and accreditation, net $ 111,457 $ 161,930 Amortization expense of courseware and accreditation for the years ended April 30, 2020 and 2019: Years Ended April 30, 2020 2019 Amortization expense $ 64,324 $ 67,751 The following is a schedule of estimated future amortization expense of courseware and accreditation at April 30, 2020: Year Ending April 30, 2021 $ 40,454 2022 31,935 2023 26,116 2024 11,743 Thereafter 1,209 Total $ 111,457 |
Secured Note and Accounts Recei
Secured Note and Accounts Receivable | 12 Months Ended |
Apr. 30, 2020 | |
Due from Related Parties, Unclassified [Abstract] | |
Secured Note and Accounts Receivable | Secured Note and Accounts Receivable On March 30, 2008 and December 1, 2008, Aspen University sold courseware pursuant to marketing agreements to Higher Education Management Group, Inc. (“HEMG”,) which was then a related party and principal stockholder of the Company. The sold courseware amounts were $455,000 and $600,000, respectively; UCC filings were filed accordingly. Under the marketing agreements, the receivables were due net 60 months. On September 16, 2011, HEMG pledged 772,793 Series C preferred shares (automatically converted to 54,571 common shares on March 13, 2012) of the Company as collateral for this account receivable which at that time had a remaining balance $772,793. Based on the reduction in value of the collateral to $2.28 based on the then current price of the Company’s common stock, the Company recognized an expense of $123,647 during the year ended April 30, 2014 as an additional allowance. As of April 30, 2020, and April 30, 2019, the balance of the account receivable, net of allowance, was $45,329. HEMG failed to pay to Aspen University any portion of the $772,793 amount due as of September 30, 2014. Consequently, on November 18, 2014 Aspen University filed a complaint vs. HEMG in the United States District Court for the District of New Jersey, to collect the full amount due to the Company. HEMG defaulted and Aspen University obtained a default judgment. In addition, Aspen University gave notice to HEMG that it intended to privately sell the 54,571 shares after March 10, 2015. On April 29, 2015, the Company sold those shares to a private investor for $1.86 per share or $101,502 which proceeds reduced the receivable balance to $671,291 with a remaining allowance of $625,963, resulting in a net receivable of $45,329. See Note 10. |
Accrued expenses
Accrued expenses | 12 Months Ended |
Apr. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued expenses | Accrued expenses consisted of the following at April 30, 2020 and 2019: April 30, 2020 2019 Accrued compensation $ — $ 226,805 Accrued interest 49,863 135,115 Other accrued expenses 487,550 289,498 Accrued expenses $ 537,413 $ 651,418 |
Debt
Debt | 12 Months Ended |
Apr. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Convertible Notes Due January 22, 2023 On January 22, 2020, the Company issued $5 million in principal amount convertible notes (“Convertible Notes”) to each of two lenders in exchange for the two $5 million notes issued under senior secured term loans entered into in 2019 as discussed below (the “Term Loans”). The Company recorded a beneficial conversion feature on these Convertible Notes of $1,692,309. The closing of the refinancing was conditioned upon the Company conducting an equity financing resulting in gross proceeds to the Company of at least $10 million. On January 22, 2020, the Company closed on an underwritten public offering for net proceeds of approximately $16 million (See Note 12) and the condition precedent to the closing of the refinancing was satisfied. The key terms of the Convertible Notes are as follows: • After six months from the issuance date, the lenders have the right to convert the principal into our shares of the Company’s common stock at a conversion price of $7.15 per share; • The Convertible Notes automatically convert into shares of the Company’s common stock if the average closing price of our common stock is at least $10.725 over a 20 consecutive trading day period; • The Convertible Notes are due January 22, 2023 or approximately three years from the closing; • The interest rate of the Convertible Notes is 7% per annum (payable monthly in arrears); and • The Convertible Notes are secured. The former notes under the Senior Secured Term Loans were due in September 2020 and were subject to a one The Company’s obligations under the Convertible Notes are secured by a first priority lien in certain deposit accounts of the Company, all current and future accounts receivable of Aspen University and USU, certain of the deposit accounts of Aspen University and USU, and all of the outstanding capital stock of Aspen University and USU (the “Collateral”). On March 6, 2019, in connection with entering into the Loan Agreements, the Company also entered into an intercreditor agreement (the “Intercreditor Agreement”) among the Company, the Lenders and the Foundation, individually. The Intercreditor Agreement provides among other things that the Company’s obligations under this agreement, and the security interests in the Collateral granted pursuant to, the Loan Agreements and the Amended and Restated Facility Agreement shall rank pari passu to one another. The Security Agreement was amended on January 22, 2020 to give effect to the Convertible Note issuances. Convertible Notes On February 29, 2012, a loan payable of $50,000 was converted into a two-year convertible promissory note, interest of 0.19% per annum. Beginning March 31, 2012, the note was convertible into shares of common stock of the Company at the conversion price of $12.00 per share (taking into account the one-for-12 reverse stock split of the Company’s common stock). The Company evaluated the convertible note and determined that, for the embedded conversion option, there was no beneficial conversion value to record as the conversion price is considered to be the fair market value of the common stock on the note issue date. This loan (now a convertible promissory note) was due in February 2014. On March 1, 2020, the statute of limitations expired on this note and can no longer be enforced. As such, the Company wrote off this liability and recognized a gain on debt extinguishment which is included in other income of $50,000 during the three months ended April 30, 2020. Convertible notes payable consisted of the following at April 30, 2020 and 2019: April 30, 2020 2019 Convertible note payable - originating February 29, 2012; no monthly payments required; bearing interest at 0.19%; maturing at February 29, 2014 $ — $ 50,000 Less: Current maturities — (50,000) Total $ — $ — Convertible Notes – Related Party On December 1, 2017, the Company completed the acquisition of USU and, as part of the consideration, a $2 million convertible note (the “Note”) was issued, bearing 8% annual interest that matures over a two years period after the closing. (See Note 5) At the option of the Note holder, on each of the first and second anniversaries of the closing date, $1,000,000 of principal and accrued interest under the Note will be convertible into shares of the Company’s common stock based on the volume weighted average price per share for the ten preceding trading days (subject to a floor of $2.00 per share) or become payable in cash. There was no beneficial conversion feature on the note date and the conversion terms of the note exempt it from derivative accounting. Subsequently the note was assigned to a third party. On December 1, 2018 the Company paid the first payment of $1 million principal and $60,000 in interest. On February 25, 2019, the Company paid the remaining principal of $1 million and $80,000 of interest and fees . Revolving Credit Facility On November 5, 2018, the Company entered into a loan agreement (the “Credit Facility Agreement”) with the Leon and Toby Cooperman Family Foundation (the “Foundation”). The Credit Facility Agreement provides for a $5,000,000 revolving credit facility (the “Facility”) evidenced by a revolving promissory note (the “Revolving Note”). Borrowings under the Credit Facility Agreement bear interest at 12% per annum. The Facility matures on November 4, 2021. Pursuant to the terms of the Credit Facility Agreement, the Company agreed to pay to the Foundation a $100,000 one-time upfront Facility fee. The Company also agreed to pay to the Foundation a commitment fee, payable quarterly at the rate of 2% per annum on the undrawn portion of the Facility. As of April 30, 2020, the Company has not borrowed any sum under the Facility. The Credit Facility Agreement contains customary representations and warranties, events of default and covenants. Pursuant to the Loan Agreement and the Revolving Note, all future or contemporaneous indebtedness incurred by the Company, other than indebtedness expressly permitted by the Credit Facility Agreement and the Revolving Note, will be subordinated to the Facility. Pursuant to the Credit Facility Agreement, on November 5, 2018 the Company issued to the Foundation warrants to purchase 92,049 shares of the Company’s common stock exercisable for five years from the date of issuance at the exercise price of $5.85 per share which were deemed to have a relative fair value of $255,071. The relative fair value of the warrants along with the Facility fee were treated as debt issue costs, as the facility has not been drawn on, assets to be amortized over the term of the loan. Total unamortized costs at April 30, 2020 were $182,418. On March 6, 2019, in connection with entering into the Senior Secured Loans, the Company amended and restated the Credit Facility Agreement (the “Amended and Restated Facility Agreement”) and the Revolving Note. The Amended and Restated Facility Agreement provides among other things that the Company’s obligations thereunder are secured by a first priority lien in the Collateral, on a pari passu basis with the Lenders. Senior Secured Term Loans On March 6, 2019, the Company entered into two loan agreements (each a “Loan Agreement” and together, the “Loan Agreements”) with the Foundation, of which Mr. Leon Cooperman, a stockholder of the Company, is the trustee, and another stockholder of the Company (each a “Lender” and together, the “Lenders”). Each Loan Agreement provides for a $5,000,000 term loan (each a “Loan” and together, the “Loans”), evidenced by a term promissory note and security agreement (each a “Term Note” and together, the “Term Notes”), for combined total proceeds of $10,000,000 million. The Company borrowed $5,000,000 from each Lender that day. The Term Notes bear interest at 12% per annum and mature on September 6, 2020, subject to one 12-month extension upon the Company’s option, and upon payment of a 1% one-time extension fee. Pursuant to the Loan Agreements and the Term Notes, all future or contemporaneous indebtedness incurred by the Company, other than indebtedness expressly permitted by the Loan Agreements and the Term Notes, will be subordinated to the Loans. Pursuant to the Loan Agreements, on March 6, 2019 the Company issued to each Lender warrants to purchase 100,000 shares of the Company’s common stock exercisable for five years from the date of issuance at the exercise price of $6.00 per share. The two warrants were deemed to have a combined relative fair value of $360,516. The relative fair value along with closing costs of $33,693 were treated as debt discounts to be amortized over the term of the Loans. On January 22, 2020, the Term Loans were cancelled and exchanged for convertible notes as discussed above. In connection with this transaction, the Company wrote off approximately $182,000 of unamortized debt issuance costs as the transaction qualified as a debt extinguishment. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Employment Agreements From time to time, the Company enters into employment agreements with certain of its employees. These agreements typically include bonuses, some of which may or may not be performance-based in nature. Legal Matters From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. As of April 30, 2020, except as discussed below, there were no other pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of our operations and there are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest. On February 11, 2013, Higher Education Management Group, Inc., (“HEMG”) and its Chairman, Mr. Patrick Spada, sued the Company, certain senior management members and our directors in state court in New York seeking damages arising principally from (i) allegedly false and misleading statements in the filings with the Securities and Exchange Commission (the “SEC”) and the DOE where the Company disclosed that HEMG and Mr. Spada borrowed $2.2 million without board authority, (ii) the alleged breach of an April 2012 agreement whereby the Company had agreed, subject to numerous conditions and time limitations, to purchase certain shares of the Company from HEMG, and (iii) alleged diminution to the value of HEMG’s shares of the Company due to Mr. Spada’s disagreement with certain business transactions the Company engaged in, all with Board approval. On December 10, 2013, the Company filed a series of counterclaims against HEMG and Mr. Spada in the same state court of New York. By order dated August 4, 2014, the New York court denied HEMG and Spada’s motion to dismiss the fraud counterclaim the Company asserted against them. While the Company has been advised by its counsel that HEMG’s and Spada’s claims in the New York lawsuit is baseless, the Company cannot provide any assurance as to the ultimate outcome of the case. Defending the lawsuit maybe expensive and will require the expenditure of time which could otherwise be spent on the Company’s business. While unlikely, if Mr. Spada’s and HEMG’s claims in the New York litigation were to be successful, the damages the Company could pay could potentially be material. In November 2014, the Company and Aspen University sued HEMG seeking to recover sums due under two 2008 Agreements where Aspen University sold course materials to HEMG in exchange for long-term future payments. On September 29, 2015, the Company and Aspen University obtained a default judgment in the amount of $772,793. This default judgment precipitated the bankruptcy petition discussed in the next paragraph. On October 15, 2015, HEMG filed bankruptcy pursuant to Chapter 7. As a result, the remaining claims and Aspen’s counterclaims in the New York lawsuit are currently stayed. The bankrupt estate’s sole asset consisted of 208,000 shares of AGI common stock, plus a claim filed by the bankruptcy trustee against Spada’s brother and a third party to recover approximately 167,000 shares. On February 8, 2019, the bankruptcy court issued an order reducing AGI’s claim to $888,638 which consisted of the judgment and a $200,000 claim for failure to disclose certain liabilities. Subsequently, the trustee sold the AGI common stock and has $924,486 available for distribution. However priorities are an unknown amount of income taxes due from the sale of the common stock, and as of June 2, 2020 $346,480 in fees due the trustee and his counsel and $574,145 due arising from settlements with the secured creditor and Spada’s brother and the third party. While we do not know how much the Company will receive, it will be substantially less than the amount it is due. Regulatory Matters The Company’s subsidiaries, Aspen University and United States University, are subject to extensive regulation by Federal and State governmental agencies and accrediting bodies. In particular, the Higher Education Act (the “HEA”) and the regulations promulgated thereunder by the DOE subject the subsidiaries to significant regulatory scrutiny on the basis of numerous standards that schools must satisfy to participate in the various types of federal student financial assistance programs authorized under Title IV of the HEA. On August 22, 2017, the DOE informed Aspen University of its determination that the institution has qualified to participate under the HEA and the Federal student financial assistance programs (Title IV, HEA programs) and set a subsequent program participation agreement reapplication date of March 31, 2021. USU currently has provisional certification to participate in the Title IV Programs due to its acquisition by the Company. The provisional certification allows the school to continue to receive Title IV funding as it did prior to the change of ownership. The HEA requires accrediting agencies to review many aspects of an institution's operations in order to ensure that the education offered is of sufficiently high quality to achieve satisfactory outcomes and that the institution is complying with accrediting standards. Failure to demonstrate compliance with accrediting standards may result in the imposition of probation, the requirements to provide periodic reports, the loss of accreditation or other penalties if deficiencies are not remediated. Because our subsidiaries operate in a highly regulated industry, each may be subject from time to time to audits, investigations, claims of noncompliance or lawsuits by governmental agencies or third parties, which allege statutory violations, regulatory infractions or common law causes of action. Return of Title IV Funds An institution participating in Title IV Programs must correctly calculate the amount of unearned Title IV Program funds that have been disbursed to students who withdraw from their educational programs before completion and must return those unearned funds in a timely manner, no later than 45 days of the date the school determines that the student has withdrawn. Under the DOE regulations, failure to make timely returns of Title IV Program funds for 5% or more of students sampled on the institution's annual compliance audit in either of its two most recently completed fiscal years can result in the institution having to post a letter of credit in an amount equal to 25% of its required Title IV returns during its most recently completed fiscal year. If unearned funds are not properly calculated and returned in a timely manner, an institution is also subject to monetary liabilities or an action to impose a fine or to limit, suspend or terminate its participation in Title IV Programs. Subsequent to a compliance audit, in 2015, Educacion Significativa, LLC (“ESL”) the predecessor to USU recognized that it had not fully complied with all requirements for calculating and making timely returns of Title IV funds (R2T4). In 2016, ESL, the predecessor to USU, had a material finding related to the same issue and is required to maintain a letter of credit in the amount of $71,634 as a result of this finding. The letter of credit was been provided to the Department of Education by AGI since it assumed this obligation in its purchase of USU. This letter of credit expired in early 2020 and the cash is expected to be returned. USU also was asked to post a letter of credit for $255,708, which was funded by AGI in April 2020. This amount has been formally reduced to $21,857; this letter with the reduced amount will remain in effect for at least the duration of the provisional approval. Pursuant to USU’s provisional PPA, DOE indicated that USU must agree to participate in Title IV under the HCM1 funding process; however, DOE does retain discretion on whether or not to implement that term of the agreement. Although DOE has not, to date, notified USU that it has been placed in the HCM1 funding process, nor does DOE’s public disclosure website identify USU as being on HCM1, it is possible that prior to the end of the PPPA term, DOE may notify USU that it must begin funding under the HCM1 procedure. Delaware Approval to Confer Degrees Aspen University is a Delaware corporation. Delaware law requires an institution to obtain approval from the Delaware Department of Education (“Delaware DOE”) before it may incorporate with the power to confer degrees. The Delaware DOE granted full approval to operate with degree-granting authority in the State of Delaware until July 1, 2020. Aspen University is authorized by the Colorado Commission on Education to operate in Colorado as a degree granting institution. USU is also a Delaware corporation and received initial approval from the Delaware DOE to confer degrees through June 2023. |
Leases
Leases | 12 Months Ended |
Apr. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases Operating lease assets are ROU assets, which represent the right to use an underlying asset for the lease term. Operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating leases are included in the Operating Lease ROU assets, net, and Operating Lease Obligations, Current and Long-term on the Consolidated Balance Sheet at April 30, 2020. These assets and lease liabilities are recognized based on the present value of remaining lease payments over the lease term. When the lease does not provide an implicit interest rate, the Company uses an incremental borrowing rate to determine the present value of the lease payments. The right-of-use asset includes all lease payments made and excludes lease incentives. Lease expense for operating leases is recognized on a straight-line basis over the lease term. There are no variable lease payments. Lease expense for the year ended April 30, 2020 was $2,516,213 respectively. These costs are primarily related to long-term operating leases, but also include amounts for short-term leases with terms greater than 30 days that are not material. The following is a schedule by years of future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of April 30, 2020 (a) . Maturity of Lease Obligations Lease Payments 2021 $ 2,409,191 2022 2,250,755 2023 1,686,197 2024 1,488,839 2025 1,136,640 Thereafter 779,286 Total 9,750,908 Less Interest (2,382,321) Present value of operating lease obligations $ 7,368,587 _____________________ (a) Lease payments exclude $4.3 million of legally binding minimum lease payments for the new Aspen University BSN Pre-Licensure campus location in Austin, Texas lease signed but not yet commenced. Prior to commencing its Austin campus operations, Aspen is required to obtain approvals from the Texas Board of Nursing. Balance Sheet Classification Operating lease obligations, current $ 1,683,252 Operating lease obligations, long-term 5,685,335 Total operating lease obligations $ 7,368,587 Other Information Weighted average remaining lease term 4.6 Weighted average discount rate 12.06 % |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Apr. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity On June 28, 2019, the Company amended its Certificate of Incorporation, as amended, to reduce in the number of shares of common stock the Company is authorized to issue from 250,000,000 to 40,000,000 shares, and the number of shares of preferred stock the Company is authorized to issue from 10,000,000 to 1,000,000 shares. The stockholders of the Company had previously approved the amendment at a special meeting of stockholders held on June 28, 2019. Preferred Stock The Company is authorized to issue 1,000,000 shares of “blank check” preferred stock with designations, rights and preferences as may be determined from time to time by our Board of Directors. As of April 30, 2020 and April 30, 2019, we had no shares of preferred stock issued and outstanding. Common Stock The Company is authorized to issue 40,000,000 shares of common stock. On January 22, 2020 the Company raised $17,267,250 through the issuance of 2,415,000 shares of common stock at a price of $7.15. The net proceeds were $16,044,879 after deducting underwriting discounts and commissions. The number of shares sold through this public offering includes 315,000 shares of common stock pursuant to an option granted to the underwriters to cover over allotments that was exercised in full. On November 30, 2019, the Company issued 25,000 shares of common stock for services in connection with the CFO transition which immediately vested. The total value of the grant was $177,500. The Company also issued 15,000 shares of common stock to its new Chief Financial Officer upon the vesting of RSUs previously granted to him for Audit Committee services. The total value of the grant was approximately $103,350. During the years ended April 30, 2020 and 2019, the Company issued 190,559 and 111,666 shares of common stock upon the cashless exercise of 363,334 and 194,276 stock options, respectively. During the years ended April 30, 2020 and 2019, the Company issued 76,929 and 119,594 shares of common stock upon the cashless exercise of 164,929 and 218,323 stock warrants, respectively. During the years ended April 30, 2020 and 2019, the Company issued 277,678 and 56,910 shares of common stock upon the exercise of stock options for cash and received proceeds of $962,650 and $128,201, respectively. During the year ended April 30, 2020, the company did not issue any common stock for warrants exercised for cash. During the years ended April 30, 2019, the Company issued 43,860 shares of common stock, respectively, upon the exercise of 43,860 warrants for cash and received proceeds of $100,000. Restricted Stock As of the years ended April 30, 2020 and 2019, there were 24,672 and 64,116 unvested shares of restricted common stock outstanding, respectively. Total unrecognized compensation expense related to the unvested shares as of the years ended April 30, 2020 and 2019 amounted to $70,178 and $340,000 respectively. In December 2018, Company issued 24,672 shares of restricted common stock to directors, with a fair value of $126,320 to be recognized over 36 months, of which $70,178 is unrecognized as of April 30, 2020 and will be amortized over the remaining vesting periods. Amortization expense for these shares was $42,107 and $14,036 for the years ended April 30, 2020 and 2019. On June 18, 2019, in order to correct errors in a third-party software system used to track stock options, the Company granted Andrew Kaplan, a current director, 5,131 shares of restricted common stock and two former directors a total of 25,000 shares of restricted common stock valued at $122,232 and expensed immediately. In April 2019, the Company granted 25,000 shares to its investor relations firm, of which 5,000 were vested with the balance vesting quarterly over one year, subject to continued service. The total value was $122,250 which was amortized and recognized over the fiscal 2020 year. The Board approved a grant of 25,000 shares of restricted common stock to the then Chief Financial Officer in September 2018. The stock price was $7.15 on the date of the grant and was to vest over a period of 36 months. The value of the compensation was approximately $180,000. Upon leaving the Company on November 30, 2019 the remaining two-thirds of restricted stock was immediately vested as part of the separation agreement resulting in accelerated amortization expense of approximately $108,000. Restricted Stock Units A summary of the Company’s Restricted Stock Unit activity during the year ended April 30, 2020 is presented below: Number of Shares Weighted Average Grant Price Restricted Stock Units Balance outstanding at April 30, 2019 — $ — Granted 658,675 5.67 Vested (15,000) 6.89 Forfeited (500) 5.18 Balance outstanding at April 30, 2020 643,175 5.64 For the year ended April 30, 2020, the Company recorded compensation expense of $454,999 in connection with RSU grants. There were 643,175 unvested RSUs as of April 30, 2020. Total unrecognized compensation expense related to the unvested RSUs as of April 30, 2020 is approximately $3,274,970 which will be amortized over the remaining vesting periods. On February 4, 2020, the Compensation Committee approved the following grants of restricted stock units (the“RSUs”) to the executive officers of the Company under the Company’s 2018 Equity Incentive Plan: 100,000 RSUs to the Chief Executive Officer, 75,000 RSUs to each of the Chief Financial Officer, Chief Operating Officer, and Chief Academic Officer, and 50,000 to the Chief Nursing Officer. Each RSU represents the right to receive one share of the Company’s common stock. The RSUs vest four years from the grant date, subject to accelerated vesting as follows: (i)if the closing price of the Company’s common stock is at least $9 for 20 consecutive trading days, 10% of the RSUs will vest immediately; (ii) if the closing price of the Company’s common stock is at least $10 for 20 consecutive trading days, 25% of the RSUs will vest immediately; and (iii) if the closing price of the Company’s common stock is at least $12 for 20 consecutive trading days, all of the unvested RSUs will vest immediately. On the grant date, the closing price of the Company’s common stock on The Nasdaq Global Market was $9.49 per share. The grants have a four In December 2019, the CFO and CAO received grants of 100,000 and 20,000 RSU's, respectively, as part of their employment agreements. These grants will vest annually over three years and had a combined fair value of $826,800. In December 2019, the current CFO immediately vested in 15,000 RSUs with a total expense of $103,350, which he was granted as Audit Committee Chairman in November 2019. In November 2019, the Chief Nursing Officer received a grant of 50,000 RSUs as part of her employment agreement. These grants will vest annually over three years and have a fair value of $314,500. The Company also issued 98,675 RSUs to employees vesting over three years subject to continued employment with a fair value of $708,425. Treasury Stock On July 19, 2018, AGI in simultaneous transactions repurchased $1,000,000 shares of common stock at $7.40 per share and re-sold the shares to a large well-known institutional money manager at $7.40 per share. The shares were purchased by the Company from ESL pursuant to a Securities Purchase Agreement dated July 18, 2018. The purchaser paid $30,000 to a broker-dealer in connection with the transaction. Warrants A summary of the Company’s warrant activity during the year ended April 30, 2020 is presented below: Warrants Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance Outstanding, April 30, 2019 731,152 $ 5.28 3.29 $ 413,296 Granted — — — — Exercised (164,929) 2.05 — — Surrendered — — — — Expired — — — — Balance Outstanding, April 30, 2020 566,223 $ 6.22 3.17 $ 950,100 Exercisable, April 30, 2020 566,223 $ 6.22 3.17 $ 950,100 ALL WARRANTS EXERCISABLE WARRANTS Exercise Price Weighted Average Exercise Price Outstanding No. of Warrants Weighted Average Exercise Price Weighted Average Remaining Life In Years Exercisable No. of Warrants $ 4.89 $ 4.89 50,000 $ 4.89 3.85 50,000 $ 5.85 $ 5.85 92,049 $ 5.85 3.82 92,049 $ 6.00 $ 6.00 200,000 $ 6.00 3.85 200,000 $ 6.87 $ 6.87 224,174 $ 6.87 2.24 224,174 566,223 566,223 On August 17, 2019 an investor elected a cashless exercise of 13,542 warrants, receiving 6,271 shares. On August 20, 2019 two investors elected cashless exercises of 18,818 and 88,710 warrants, receiving 8,970 and 42,285 shares, respectively. On June 3, 2019, a former director cashlessly exercised 21,930 warrants, receiving 9,806 shares of common stock. On June 7, 2019, the CEO cashlessly exercised the same amount of warrants receiving 9,597 shares of common stock. As part of the Credit Facility Agreement executed on November 8, 2018, 92,049 five The Company issued 200,000 warrants on March 5, 2019 related to senior secured loans. The Company issued 50,000 warrants on April 30, 2019 to an advisory board member for services. The warrants vest ratably over three years. During the year ended April 30, 2019, 262,183 warrants were exercised. Of these, 218,323 warrants were cashless exercises resulting in a net of 119,594 shares of common stock being issued and 43,860 were exercised for cash resulting in 43,860 shares being issued and generating $100,000 in proceeds. Stock Incentive Plan and Stock Option Grants to Employees and Directors On March 13, 2012, the Company adopted the Aspen Group, Inc. 2012 Equity Incentive Plan (the “2012 Plan”) that provides for the grant of 3,500,000 shares in the form of incentive stock options, non-qualified stock options, restricted shares, stock appreciation rights and RSUs to employees, consultants, officers and directors. On December 13, 2018, the stockholders of the Company approved the Aspen Group, Inc. 2018 Equity Incentive Plan (the “2018 Plan”) that provides for the grant of 500,000 shares in the form of incentive stock options, non-qualified stock options, restricted shares, stock appreciation rights and RSUs to employees, consultants, officers and directors. On December 30, 2019, the Company held its Annual Meeting of Shareholders at which the shareholders voted to amend the 2018 Plan to increase the number of shares of common stock available for issuance under the 2018 Plan from 500,000 to 1,100,000 shares. As of April 30, 2020, there were 179,380 and 47,277 shares remaining available for future issuance under the 2012 and 2018 Plan, respectively. The Company estimates the fair value of share-based compensation utilizing the Black-Scholes option pricing model, which is dependent upon several variables such as the expected option term, expected volatility of the Company’s stock price over the expected term, expected risk-free interest rate over the expected option term, expected dividend yield rate over the expected option term, and an estimate of expected forfeiture rates. The Company believes this valuation methodology is appropriate for estimating the fair value of stock options granted to employees and directors which are subject to ASC Topic 718 requirements. These amounts are estimates and thus may not be reflective of actual future results, nor amounts ultimately realized by recipients of these grants. The Company recognizes compensation on a straight-line basis over the requisite service period for each award. The following table summarizes the assumptions the Company utilized to record compensation expense for stock options granted to employees during the period ended. April 30, 2020 2019 Expected life (years) 3.5 3.5 Expected volatility 57.0 % 50.1 % Risk-free interest rate 0.24 % 2.63 % Dividend yield 0.00 % 0.00 % Expected forfeiture rate n/a n/a The Company utilized the simplified method to estimate the expected life for stock options granted to employees. The simplified method was used as the Company does not have sufficient historical data regarding stock option exercises. The expected volatility is based on historical volatility. The risk-free interest rate is based on the U.S. Treasury yields with terms equivalent to the expected life of the related option at the time of the grant. Dividend yield is based on historical trends. While the Company believes these estimates are reasonable, the compensation expense recorded would increase if the expected life was increased, a higher expected volatility was used, or if the expected dividend yield increased. A summary of the Company’s stock option activity for employees and directors during the year ended April 30, 2020, is presented below: Options Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance Outstanding, April 30, 2019 3,408,154 $ 4.44 2.90 $ 6,880,644 Granted 156,900 5.18 — — Exercised (624,346) 3.17 — — Forfeited (205,809) 7.37 — — Expired — — — — Balance Outstanding, April 30, 2020 2,734,899 $ 4.62 1.97 $ 9,146,198 Exercisable, April 30, 2020 1,742,599 $ 3.71 1.48 $ 7,366,936 ALL OPTIONS EXERCISABLE OPTIONS Exercise Price Weighted Average Exercise Price Outstanding No. of Options Weighted Average Exercise Price Weighted Average Remaining Life In Years Exercisable No. of Options $1.57 to $2.10 $2.00 561,724 $2.00 0.71 561,724 $2.28 to $2.76 $2.30 374,446 $2.30 0.41 374,446 $3.24 to $4.38 $3.89 327,730 $3.87 1.60 275,063 $4.50 to $5.20 $4.94 677,277 $4.94 2.54 226,125 $5.95 to $6.28 $6.07 79,917 $6.07 2.20 26,639 $7.17 to $7.55 $7.41 549,639 $7.32 3.58 223,880 $8.57 to $9.07 $8.97 164,166 $8.97 2.69 54,722 Options only 2,734,899 1,742,599 For the years ended April 30, 2020 and 2019, the Company recorded compensation expense in connection with stock options of $1,289,546 and $1,190,385. For the years ended April 30, 2020 and 2019, the Company recorded no stock based compensation expense related to the executive officer target bonus plan. As of April 30, 2020, there was approximately $724,965 of unrecognized compensation costs related to non-vested share-based option arrangements. That cost is expected to be recognized over a weighted-average period of 1.7 years. In April 2020, the Company awarded 6,900 options to employees hired during the fiscal third quarter. The fair value of these grants was $11,088 with an average grant price of $4.58. On December 9, 2019, the Company granted 61,000 options to its directors with an exercise price of $6.92 per share for services performed for the calendar year 2019. The fair value of these options was approximately $116,000 and was fully recognized as of January 31, 2020. On August 1, 2019, the Company granted 59,000 options with an exercise price of $3.99 per share to 26 employees who had been hired during the first quarter ended July 31, 2019. The fair value of these options was approximately $83,000 and will be recognized over 36 months. The Company granted a total of 30,000 five years non-qualified stock options on May 13, 2019, which were immediately vested, to certain former directors exercisable at $4.12 per share. The fair value of the options was $33,600 and expensed during the three months ended July 31, 2019. The Company granted 65,750 options to 44 new and continuing employees on April 30, 2019. The exercise price was $4.56 per share and the fair value was approximately $117,000. The options vest over 36 months. On December 24, 2018, the Company granted 61,667 options to three directors, 41,667 to one director, and 10,000 each to two others. The exercise price was $5.14 per share and the total fair value was approximately $123,000, which will be recognized over 36 months. On December 13, 2018, the Company granted 89,125 options to 61 employees who had been hired throughout 2018. The fair value of these options was approximately $136,000 and will be recognized over 36 month. The exercise price is $5.20 per share. On July 19, 2018, the Board granted 200,000 five As of September 6, 2018, the Board approved a grant of 180,000 five |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Apr. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions On July 19, 2018, AGI in simultaneous transactions repurchased 1,000,000 shares of common stock (the “Shares”) at $7.40 per share and re-sold the Shares to a large well-known institutional money manager (the “Purchaser”) at $7.40 per share. The Shares were purchased by the Company from ESL pursuant to a Securities Purchase Agreement. The Shares were sold to the Purchaser through Craig-Hallum Capital Group, LLC (“Craig Hallum”). Craig-Hallum acted as a dealer in this transaction and received an ordinary brokerage commission from the Purchaser. The Purchaser initiated the transaction by contacting the Company seeking to buy a large block of common stock. The Company approached ESL which had acquired the Shares on December 1, 2017 when it sold United States University to the Company. Ms. Oksana Malysheva, the sole manager of ESL, became a director of the Company as part of the purchase of United States University and is no longer a director of the Company. See Note 9 for additional information on the repayment of a convertible note issued in conjunction with the USU acquisition. |
Revenue
Revenue | 12 Months Ended |
Apr. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | RevenueRevenues consist primarily of tuition and fees derived from courses taught by the Company online as well as from related educational resources that the Company provides to its students, such as access to our online materials and learning management system. The Company’s educational programs have starting and ending dates that differ from its fiscal quarters. Therefore, at the end of each fiscal quarter, a portion of revenue from these programs is not yet earned and is therefore deferred. The Company also charges students fees for library and technology costs, which are recognized over the related service period and are not considered separate performance obligations. Other services, books, and exam fees are recognized as services are provided or when goods are received by the student. The Company’s contract liabilities are reported as deferred revenue and refunds due students. Deferred revenue represents the amount of tuition, fees, and other student invoices in excess of the portion recognized as revenue and it is included in current liabilities in the accompanying consolidated balance sheets. The following table represents our revenues disaggregated by the nature and timing of services: For the Years Ended April 30, 2020 2019 Tuition - recognized over period of instruction $ 43,917,321 $ 31,032,677 Course fees - recognized over period of instruction 4,536,639 2,488,232 Book fees - recognized at a point in time 80,845 106,819 Exam fee - recognized at a point in time 219,015 189,090 Service fees - recognized at a point in time 307,260 208,600 $ 49,061,080 $ 34,025,418 Contract Balances and Performance Obligations The Company recognizes deferred revenue as a student participates in a course which continues past the balance sheet date. Deferred revenue at April 30, 2020 was $3,712,994 which is future revenue that has not yet been earned for courses in progress. The Company has $2,371,844 of refunds due students, which mainly represents Title IV funds due to students after deducting their tuition payments. Of the total revenue earned during the year ended April 30, 2020, approximately $2.5 million came from revenues which were deferred at April 30, 2019. The Company begins providing the performance obligation by beginning instruction in a course, a contract receivable is created, resulting in accounts receivable. The Company accounts for receivables in accordance with ASC 310, Receivables. The Company uses the portfolio approach, as discussed below. AGI records an allowance for doubtful accounts for estimated losses resulting from the inability, failure or refusal of its students to make required payments, which includes the recovery of financial aid funds advanced to a student for amounts in excess of the student’s cost of tuition and related fees. AGI determines the adequacy of its allowance for doubtful accounts using an allowance method based on an analysis of its historical bad debt experience, current economic trends, and the aging of the accounts receivable and student status. AGI applies reserves to its receivables based upon an estimate of the risk presented by the age of the receivables and student status. AGI writes off accounts receivable balances at the time the balances are deemed uncollectible. AGI continues to reflect accounts receivable with an offsetting allowance as long as management believes there is a reasonable possibility of collection. Cash Receipts Our students finance costs through a variety of funding sources, including, among others, monthly payment plans, installment plans, federal loan and grant programs (Title IV), employer reimbursement, and various veterans and military funding and grants, and cash payments. Most students elect to use our monthly payment plan. This plan allows them to make continuous monthly payments during the length of their program and through the length of their payment plan. Title IV and military funding typically arrives during the period of instruction. Students who receive reimbursement from employers typically do so after completion of a course. Students who choose to pay cash for a class typically do so before beginning the class. Significant Judgments We analyze revenue recognition on a portfolio approach under ASC 606-10-10-4. Significant judgment is utilized in determining the appropriate portfolios to assess for meeting the criteria to recognize revenue under ASC Topic 606. We have determined that all of our students can be grouped into one portfolio. Students behave similarly, regardless of their payment method or academic program. Enrollment agreements and refund policies are similar for all of our students. We do not expect that revenue earned for the portfolio is significantly different as compared to revenue that would be earned if we were to assess each student contract separately. The Company maintains institutional tuition refund policies, which provides for all or a portion of tuition to be refunded if a student withdraws during stated refund periods. Certain states in which students reside impose separate, mandatory refund policies, which override the Company’s policy to the extent in conflict. If a student withdraws at a time when a portion or none of the tuition is refundable, then in accordance with its revenue recognition policy, the Company recognizes as revenue the tuition that was not refunded. Since the Company recognizes revenue pro-rata over the term of the course and because, under its institutional refund policy, the amount subject to refund is never greater than the amount of the revenue that has been deferred, under the Company’s accounting policies revenue is not recognized with respect to amounts that could potentially be refunded. The Company had revenues from students outside the United States representing approximately 2.5% and 1.6% of the revenues for the year ended April 30, 2020 and 2019 respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense are as follows: For the Years Ended April 30, 2020 2019 Current: Federal $ — $ — State 51,820 — 51,820 — Deferred: Federal — — State — — — — Total Income tax expense $ 51,820 $ — Significant components of the Company's deferred income tax assets and liabilities are as follows: April 30, 2020 2019 Deferred tax assets: Net operating loss carryforward $ 11,044,236 $ 9,033,235 Allowance for doubtful accounts 629,272 181,774 Deferred rent 606,594 180,154 Stock-based compensation 439,454 954,586 Contributions carryforward 11,275 60 Intangibles 86,897 — Total deferred tax assets 12,817,728 10,349,809 Deferred tax liabilities: Property and equipment (417,780) (234,336) Intangibles — (64,439) Total deferred tax liabilities (417,780) (298,775) Deferred tax assets, net $ 12,399,948 $ 10,051,034 Valuation allowance: Beginning of year (10,051,034) (7,837,755) Increase during period (2,348,914) (2,213,279) Ending balance (12,399,948) (10,051,034) Net deferred tax asset $ — $ — As of April 30, 2020, as part of its periodic evaluation of the necessity to maintain a valuation allowance against its deferred tax assets, and after consideration of all factors, including, among others, projections of future taxable income, current year net operating loss carryforward utilization and the extent of the Company's cumulative losses in recent years, the Company determined that, on a more likely than not basis, it would not be able to use remaining deferred tax assets. Accordingly, the Company has determined to maintain a full valuation allowance against its net deferred tax assets. As of April 30, 2020 and 2019, the valuation allowance was approximately $12,400,000 and $10,100,000, respectively. In the future, the utilization of the Company's net operating loss carryforwards may be subject to certain change of control limitations. If the Company determines it will be able to use some or all of its deferred tax assets in a future reporting period, the adjustment to reduce or eliminate the valuation allowance would reduce its tax expense and increase after-tax income. At April 30, 2020, the Company had approximately $41,900,000 of net operating loss carryforwards, $28,200,000 of which will expire from 2031 to 2038, the remainder will carryforward indefinitely. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for unrecognized tax benefits. As of April 30, 2020, tax years 2017 through 2019 remain open for IRS audit. The Company has received no notice of audit from the Internal Revenue Service for any of the open tax years. A reconciliation of income tax computed at the U.S. statutory rate to the effective income tax rate is as follows: The Company's effective income tax expense differs from the statutory federal income tax rate of 21% as follows: April 30, 2020 2019 Statutory Rate applied to net loss before income taxes 21.0 % 21.0 % Increase (decrease) in income taxes resulting from: State income taxes, net of federal tax benefit 5.3 % 3.6 % Federal and State Minimum Taxes (0.9) % — % Permanent Differences (0.3) % — % Change in Tax Rates - States 17.3 % — % Change in Valuation Allowance (41.9) % (23.8) % Other (1.4) % (0.8) % Effective Income Tax Rate (0.9) % 0.0 % |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Apr. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | Quarterly Results (Unaudited) Quarter Ended July 31 Quarter Ended October 31 Quarter Ended January 31 Quarter Ended April 30 Year Ended April 30 Year Ended April 30, 2020 Revenue $ 10,357,982 $ 12,085,965 $ 12,537,940 $ 14,079,193 $ 49,061,080 Cost of revenue (exclusive of depreciation and amortization) 4,353,058 4,188,056 5,163,007 5,431,181 19,135,302 Operating loss (1,638,800) (331,775) (1,728,048) (339,790) (4,038,413) Loss before income taxes (2,039,687) (628,168) (2,265,889) (673,501) (5,607,245) Net loss (2,075,282) (638,168) (2,281,052) (664,563) (5,659,065) Net loss per share allocable to common stockholders - basic and diluted $ (0.11) $ (0.03) $ (0.12) $ (0.03) $ (0.29) Quarter Ended July 31 Quarter Ended October 31 Quarter Ended January 31 Quarter Ended April 30 Year Ended April 30 Year Ended April 30, 2019 Revenue $ 7,221,305 $ 8,095,344 $ 8,494,627 $ 10,214,142 $ 34,025,418 Cost of revenue (exclusive of depreciation and amortization) 3,752,392 3,835,515 4,076,980 4,312,331 15,977,218 Operating loss (2,853,324) (2,474,649) (2,421,686) (1,360,067) (9,109,726) Loss before income taxes (2,837,276) (2,475,078) (2,355,940) (1,609,923) (9,278,217) Net loss (2,837,276) (2,475,078) (2,355,940) (1,609,923) (9,278,217) Net loss per share allocable to common stockholders - basic and diluted $ (0.15) $ (0.13) $ (0.13) $ (0.09) $ (0.50) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Apr. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On June 5, 2020, the Company reduced by 5% the exercise price of the common stock purchase warrants issued to the Foundation, on November 5, 2018 (the "2018 Cooperman Warrants") and on March 5, 2020 (the "2019 Cooperman Warrants"). The 2018 Cooperman Warrants exercise price was reduced from $5.85 to $5.56 per share. The 2019 Cooperman Warrants exercise price was reduced from $6.00 to $5.70 per share. On June 8, 2020, the Foundation immediately exercised the 2018 and 2019 Cooperman Warrants paying the Company $1,081,792 and the Company issued 192,049 shares of common stock to the Foundation. In consideration of the reduction, the Foundation in addition to its immediate exercise executed a lock-up agreement agreeing not to request registration of or sell the underlying shares of common stock for at least six months. The warrant modification and acceleration charge related to this transaction in the first quarter of fiscal 2021 will be approximately $26,000. In May and June 2020, current and former employees exercised 295,091stock options. Total proceeds received by the Company were approximately $847,000 upon the issuance of 136,031 shares. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"). The consolidated financial statements include the accounts of AGI and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Accounting Estimates | Accounting Estimates Management of the Company is required to make certain estimates, judgments and assumptions during the preparation of its consolidated financial statements in accordance with GAAP. These estimates, judgments and assumptions impact the reported amounts of assets, liabilities, revenue and expenses and the related disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Significant estimates in the accompanying consolidated financial statements include the allowance for doubtful accounts and other receivables, the valuation of collateral on certain receivables, the carrying value of right-of-use ("ROU") assets, estimates of the fair value of assets acquired and liabilities assumed in a business combination, depreciable lives of property and equipment, amortization periods and valuation of courseware, intangibles and software development costs, valuation of beneficial conversion features in convertible debt, valuation of goodwill, valuation of loss contingencies, valuation of stock-based compensation and the valuation allowance on deferred tax assets. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash For the purposes of the consolidated statements of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. ASU No 2016-18 – In November 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-18, Statement of Cash Flows (Topic 230) Restricted Cash (ASU 2016- 18), requiring restricted cash and cash equivalents to be included with cash and cash equivalents of the statement of cash flows. The standard is effective for fiscal years, and interim periods with those year, beginning December 15, 2017, with early adoption permitted. The Company adopted this ASU on May 1, 2018. As of April 30, 2020, restricted cash of $3,556,211 consists of $692,293 which is collateral for letters of credit for the Aspen University and USU facility operating leases and $255,708, which is collateral for a letter of credit issued by the bank and $71,828 which is related to USU’s receipt of Title IV funds and is required by the Department of Education ("DOE") in |
Concentration of Credit Risk | Concentration of Credit RiskThe Company maintains its cash in bank and financial institution deposits that at times may exceed federally insured limits of $250,000 per financial institution. |
Goodwill and Intangibles | Goodwill and Intangibles Goodwill currently represents the excess of purchase price over the fair market value of assets acquired and liabilities assumed from Educacion Significativa, LLC. Goodwill has an indefinite life and is not amortized. Goodwill is tested annually for impairment. We have selected an April 30th annual goodwill impairment test date. ASU 2017-04 - In January 2017, the Financial Accounting Standards Board issued Accounting Standards Update No. 2017-04: "Intangibles - Goodwill and Other (Topic 350)” - to simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019. The Company early adopted this standard effective April 30, 2018. Intangible assets represent both indefinite lived and definite lived assets. Accreditation and regulatory approvals and Trade name and trademarks are deemed to have indefinite useful lives and accordingly are not amortized but are tested annually for impairment. Student relationships and curriculums are deemed to have definite lives and are amortized accordingly. |
Fair Value Measurements | Fair Value Measurements Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company classifies assets and liabilities recorded at fair value under the fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. The fair value measurements are classified under the following hierarchy: Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets and liabilities in active markets; Level 2—Observable inputs, other than quoted market prices, that are either directly or indirectly observable in the marketplace for identical or similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities; and Level 3—Unobservable inputs that are supported by little or no market activity that are significant to the fair value of assets or liabilities. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. |
Accounts Receivable and Allowance for Doubtful Accounts Receivable | Accounts Receivable and Allowance for Doubtful Accounts Receivable All students are required to select both a primary and secondary payment option with respect to amounts due to AGI for tuition, fees and other expenses. As of April 30, 2020, the monthly payment plan represents approximately 57% of the payments that are made by students, making it the most common payment type. In instances where a student selects financial aid as the primary payment option, he or she often selects personal cash as the secondary option. If a student who has selected financial aid as his or her primary payment option withdraws prior to the end of a course but after the date that AGI’s institutional refund period has expired, the student will have incurred the obligation to pay the full cost of the course. If the withdrawal occurs before the date at which the student has earned 100% of his or her financial aid, AGI may have to return all or a portion of the Title IV funds to the DOE and the student will owe AGI all amounts incurred that are in excess of the amount of financial aid that the student earned, and that AGI is entitled to retain. In this case, AGI must collect the receivable using the student’s second payment option. For accounts receivable from students, AGI records an allowance for doubtful accounts for estimated losses resulting from the inability, failure or refusal of its students to make required payments, which includes the recovery of financial aid funds advanced to a student for amounts in excess of the student’s cost of tuition and related fees. AGI determines the adequacy of its allowance for doubtful accounts using an allowance method based on an analysis of its historical bad debt experience, current economic trends, and the aging of the accounts receivable and each student’s status. AGI estimates the amounts to increase the allowance based upon the risk presented by the age of the receivables and student status. AGI writes off accounts receivable balances at the time the balances are deemed uncollectible. AGI continues to reflect accounts receivable with an offsetting allowance as long as management believes there is a reasonable possibility of collection. For accounts receivable from primary payors other than students, AGI estimates its allowance for doubtful accounts by evaluating specific accounts where information indicates the customers may have an inability to meet financial obligations, such as bankruptcy proceedings and receivable amounts outstanding for an extended period beyond contractual terms. In these cases, AGI uses assumptions and judgment, based on the best available facts and circumstances, to record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated are analyzed to determine the total amount of the allowance. AGI may also record a general allowance as necessary. Direct write-offs are taken in the period when AGI has exhausted its efforts to collect overdue and unpaid receivables or otherwise evaluate other circumstances that indicate that AGI should abandon such efforts. (See Note 14) When a student signs up for the monthly payment plan, there is a contractual amount that the Company can expect to earn over the life of the student’s program. This contractual amount cannot be recorded as an accounts receivable because, the student does have the option to stop attending. As a student takes a class, revenue is earned over the class term. Some students accelerate their program, taking two or more classes every eight week period, which increases the student’s accounts receivable balance. If any portion of that balance will be paid in a period greater than 12 months, that portion is reflected as long-term accounts receivable. At April 30, 2020 and 2019, those balances are $6,701,136 and $3,085,243, respectively. The Company has determined that the long term accounts receivable do not constitute a significant financing component as the list price, cash selling price and promised consideration are equal. Further, the interest free financing portion of the monthly payment plans are not considered significant to the contract. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets per the following table. Category Useful Life Computer equipment & hardware 3 years Software 5 years Instructional equipment 5 years Furniture and fixtures 7 years Leasehold improvements The lesser of 8 years or the number of years of the lease term Costs incurred to develop internal-use software during the preliminary project stage are expensed as incurred. Internal-use software development costs are capitalized during the application development stage, which is after: (i) the preliminary project stage is completed; and (ii) management authorizes and commits to funding the project and it is probable the project will be completed and used to perform the function intended. Capitalization ceases at the point the software project is substantially complete and ready for its intended use, and after all substantial testing is completed. Upgrades and enhancements are capitalized if it is probable that those expenditures will result in additional functionality. Depreciation is provided for on a straight-line basis over the expected useful life of five years of the internal-use software development costs and related upgrades and enhancements. When existing software is replaced with new software, the unamortized costs of the old software are expensed when the new software is ready for its intended use. Upon the retirement or disposition of property and equipment, the related cost and accumulated depreciation are removed and a gain or loss is recorded in the consolidated statements of operations. Repairs and maintenance costs are expensed in the period incurred. |
Courseware and Accreditation | Courseware and Accreditation The Company records the costs of courseware and accreditation in accordance with the FASB Accounting Standards Codification (“ASC”) Topic 350 “Intangibles - Goodwill and Other”. Generally, costs of courseware creation and enhancement are capitalized. Accreditation renewal or extension costs related to intangible assets are capitalized as incurred. Courseware is stated at cost less accumulated amortization. Amortization is provided for on a straight-line basis over the expected useful life of five years. |
Long-Lived Assets | Long-Lived Assets The Company assesses potential impairment to its long-lived assets when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events and circumstances considered by the Company in determining whether the carrying value of identifiable intangible assets and other long-lived assets may not be recoverable include, but are not limited to: significant changes in performance relative to expected operating results, significant changes in the use of the assets, significant negative industry or economic trends, a significant decline in the Company’s stock price for a sustained period of time, and changes in the Company’s business strategy. An impairment loss is recorded when the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Any required impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds fair value and is recorded as a reduction in the carrying value of the related asset and an expense to operating results. |
Refunds Due Students | Refunds Due Students The Company receives Title IV funds from the Department of Education to cover tuition and living expenses. After deducting tuition and fees, the Company sends checks for the remaining balances to the students. |
Leases | Leases The Company enters into various lease agreements in conducting its business. At the inception of each lease, the Company evaluates the lease agreement to determine whether the lease is an operating or capital lease. Leases may contain initial periods of free rent and/or periodic escalations. When such items are included in a lease agreement, the Company records rent expense on a straight-line basis over the initial term of a lease. The difference between the rent payment and the straight-line rent expense is recorded as additional amortization. The Company expenses any additional payments under its operating leases for taxes, insurance or other operating expenses as incurred. In February 2016, FASB issued Accounting Standards Update, or ASU, No. 2016-2, Leases (Topic 842). This standard requires entities to recognize most operating leases on their balance sheets as right-of-use assets with a corresponding lease liability, along with disclosing certain key information about leasing arrangements. The Company adopted the standard effective May 1, 2019 using the cumulative effect adjustment transition method, which applies the provisions of the standard at the effective date without adjusting the comparative periods presented. The Company adopted the following practical expedients and elected the following accounting policies related to this standard: • Carry forward of historical lease classification; • Short-term lease accounting policy election allowing lessees to not recognize right-of-use assets and lease liabilities for leases with a term of 12 months or less; and • Not separate lease and non-lease components for office space and campus leases. The adoption of this standard resulted in the recognition of an initial operating lease right-of-use assets (“ROU’s”) and corresponding lease liabilities of approximately $8.8 million, on the Consolidated Balance Sheet as of May 1, 2019. For presentation purposes, the deferred rent liability is presented as a separate line item at April 30, 2019 and is deducted from the operating lease ROU asset at April 30, 2020. There was no impact to the Company’s net income or liquidity as a result of the adoption of this ASU. Additionally, the standard did not materially impact the Company's consolidated statements of cash flows. Disclosures related to the amount, timing, and uncertainty of cash flows arising from leases are included in Note 11. |
Treasury Stock | Treasury Stock Purchases and sales of treasury stock are accounted for using the cost method. Under this method, shares acquired are recorded at the acquisition price directly to the treasury stock account. Upon sale, the treasury stock account is reduced by the original acquisition price of the shares and any difference is recorded in equity. This method does not allow the company to recognize a gain or loss to income from the purchase and sale of treasury stock. |
Revenue Recognition and Deferred Revenue | Revenue Recognition and Deferred Revenue On May 1, 2018, the Company adopted Accounting Standards Codification 606 (ASC 606). ASC 606 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASC also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer purchase orders, including significant judgments. Our adoption of this ASC, resulted in no change to our results of operations or our balance sheet. Revenues consist primarily of tuition and course fees derived from courses taught by the Company online as well as from related educational resources and services that the Company provides to its students. Under ASC 606, this tuition revenue is recognized pro-rata over the applicable period of instruction and are not considered separate performance obligations. Non-tuition related revenue and fees are recognized as services are provided or when the goods are received by the student. (See Note 14) |
Cost of Revenues | Cost of Revenues Cost of revenues consists of two categories of cost, instructional costs and services, and marketing and promotional costs. |
Instructional Costs and Services | Instructional Costs and Services Instructional costs and services consist primarily of costs related to the administration and delivery of the Company's educational programs. This expense category includes compensation costs associated with online faculty, technology license costs and costs associated with other support groups that provide services directly to the students and are included in cost of revenues. |
Marketing and Promotional Costs | Marketing and Promotional Costs Marketing and promotional costs include costs associated with producing marketing materials and advertising. Such costs are generally affected by the cost of advertising media, the efficiency of the Company's marketing and recruiting efforts, and expenditures on advertising initiatives for new and existing academic programs. Non-direct response advertising activities are expensed as incurred, or the first time the advertising takes place, depending on the type of advertising activity. Total marketing and promotional costs were $9,495,980 and $9,096,550 for year ended April 30, 2020 and 2019, respectively and are included in cost of revenues. |
General and Administrative | General and AdministrativeGeneral and administrative expenses include compensation of employees engaged in corporate management, finance, human resources, information technology, academic operations, compliance and other corporate functions. General and administrative expenses also include professional services fees, financial aid processing costs, non-capitalizable courseware and software costs, travel and entertainment expenses and facility costs. |
Legal Expenses | Legal Expenses All legal costs for litigation are charged to expense as incurred. |
Income Tax | Income Tax The Company uses the asset and liability method to compute the differences between the tax basis of assets and liabilities and the related financial statement amounts. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. The Company has deferred tax assets and liabilities that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets are subject to periodic recoverability assessments. Realization of the deferred tax assets, net of deferred tax liabilities, is principally dependent upon achievement of projected future taxable income. The Company records a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company accounts for uncertainty in income taxes using a two-step approach for evaluating tax positions. Step one, recognition, occurs when the Company concludes that a tax position, based solely on its technical merits, is more likely than not to be sustained upon examination. Step two, measurement, is only addressed if the position is more likely than not to be sustained. Under step two, the tax benefit is measured as the largest amount of benefit, determined on a cumulative probability basis, which is more likely than not to be realized upon ultimate settlement. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. |
Accounting for Derivatives | Accounting for Derivatives The Company evaluates its convertible instruments, options, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for under ASC Topic 815, “Derivatives and Hedging”. The result of this accounting treatment is that the fair value of the derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the statement of operations as other income (expense). Upon conversion, exercise, or other extinguishment (transaction) of a derivative instrument, the instrument is marked to fair value at the transaction date and then that fair value is recognized as an extinguishment gain or loss. Equity instruments that are initially classified as equity that become subject to reclassification under ASC Topic 815 are reclassified to liability at the fair value of the instrument on the reclassification date. The Company has early adopted FASB ASU 2017-11, which simplifies the accounting for certain equity-linked financial instruments and embedded features with down round features that reduce the exercise price when the pricing of a future round of financing is lower. This allows the company to treat such instruments or their embedded features as equity instead of considering them as a derivative. If such a feature is triggered in a stand-alone instrument treated as equity, the value is measured pre-trigger and post-trigger. The difference in these two measurements is treated as a dividend, reducing income. The value recognized as a dividend is not subsequently remeasured, but in instances where the feature is triggered multiple times each instance is recognized. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense is measured at the grant date fair value of the award and is expensed over the requisite service period. For employee stock-based awards, the Company calculates the fair value of the award on the date of grant using the Black-Scholes option pricing model. Determining the fair value of stock-based awards at the grant date under this model requires judgment, including estimating volatility, employee stock option exercise behaviors and forfeiture rates. The assumptions used in calculating the fair value of stock-based awards represent the Company's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. For non-employee stock-based awards, the Company has early adopted ASU 2018-7, which substantially aligns share based compensation for employees and non-employees as noted below. ASU 2018-07 - In June 2018, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2018-07, Compensation – Stock Compensation (Topic 718). This update is intended to reduce cost and complexity and to improve financial reporting for share-based payments issued to non-employees (for example, service providers, external legal counsel, suppliers, etc.). The ASU expands the scope of Topic 718, Compensation—Stock Compensation, which currently only includes share-based payments issued to employees, to also include share-based payments issued to non-employees for goods and services. Consequently, the accounting for share-based payments to non-employees and employees will be substantially aligned. This standard will be effective for financial statements issued by public companies for the annual and interim periods beginning after December 15, 2018. Early adoption of the standard is permitted. The standard will be applied in a retrospective approach for each period presented. The company implemented this standard in February 2019. |
Business Combinations | Business Combinations We include the results of operations of businesses we acquire from the date of the respective acquisition. We allocate the purchase price of acquisitions to the assets acquired and liabilities assumed at fair value. The excess of the purchase price of an acquired business over the amount assigned to the assets acquired and liabilities assumed is recorded as goodwill. We expense transaction costs associated with business combinations as incurred. |
Net Loss Per Share | Net Loss Per Share Net loss per common share is based on the weighted average number of common shares outstanding during each period. Options to purchase 2,734,899 and 3,408,154 common shares, 643,175 and 0 restricted stock units ("RSUs"), warrants to purchase 566,223 and 731,152 common shares, unvested restricted stock of 24,672 and 64,116, and $10,000,000 and $50,000 of convertible debt (convertible into 1,398,601 and 4,167 common shares) were outstanding at April 30, 2020 and 2019, respectively, but were not included in the computation of diluted net loss per share because the effects would have been anti-dilutive. The options, warrants and convertible debt are considered to be common stock equivalents and are only included in the calculation of diluted earnings per common share when their effect is dilutive. |
Segment Information | Segment Information The Company operates in one reportable segment as a single educational delivery operation using a core infrastructure that serves the curriculum and educational delivery needs of its online and campus students regardless of geography. The Company's chief operating decision makers, its Chief Executive Officer and Chief Academic Officer, manage the Company's operations as a whole. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Financial Accounting Standards Board, Accounting Standard Updates which are not effective until after April 30, 2020, are not expected to have a significant effect on the Company’s consolidated financial position or results of operations. |
Prior Period Reclassifications | Prior Period Reclassifications Certain amounts in prior periods have been reclassified to conform to the current year presentation. Restricted cash in fiscal 2020, previously included in cash in fiscal 2019, of $1,203,067 has been reclassified to include funds from: (1) unearned educational services that were received from Title IV programs that the Company will expect to be earned in the subsequent period up to approximately 84%; (2) non-Title IV funds held for students who have withdrawn representing refunds due students up to approximately 12%; and (3) other items up to approximately 4% for all periods presented. As an administrator of these Title IV program funds, the Company is required to maintain and restrict these funds pursuant to the terms of the program participation agreement with the U.S. Department of Education. See Consolidated Balance Sheets and Cash, Cash equivalents and Restricted cash section above for additional information. Property and equipment categories have been updated to align with the current period presentation for all periods presented. There was no impact to the useful lives of property and equipment at April 30, 2019. The computer and office equipment category has been renamed to computer equipment and hardware, and now includes call center equipment. The instructional equipment and leasehold improvements categories are now separate categories; previously included in furniture and fixtures. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment Useful Lives | Property and equipment are recorded at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets per the following table. Category Useful Life Computer equipment & hardware 3 years Software 5 years Instructional equipment 5 years Furniture and fixtures 7 years Leasehold improvements The lesser of 8 years or the number of years of the lease term |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Receivables [Abstract] | |
Accounts Receivable Balance | Accounts receivable consisted of the following at April 30, 2020 and 2019: April 30, 2020 2019 Accounts receivable $ 22,786,847 $ 14,988,744 Long term contractual accounts receivable (6,701,136) (3,085,243) Less: Allowance for doubtful accounts (1,758,920) (1,247,031) Accounts receivable, net $ 14,326,791 $ 10,656,470 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following at April 30, 2020 and April 30, 2019: April 30, 2020 2019 Computer equipment and hardware $ 649,927 $ 521,395 Furniture and fixtures 1,007,099 915,936 Leasehold improvements 867,024 204,545 Instructional equipment 301,842 260,790 Software 6,162,770 4,314,198 8,988,662 6,216,864 Accumulated depreciation and amortization (2,841,019) (1,825,524) Property and equipment, net $ 6,147,643 $ 4,391,340 |
Schedule of Software | Software consisted of the following at April 30, 2020 and 2019: April 30, 2020 2019 Software $ 6,162,770 $ 4,314,198 Accumulated amortization (2,049,809) (1,351,193) Software, net $ 4,112,961 $ 2,963,005 Courseware and accreditation consisted of the following at April 30, 2020 and 2019: April 30, 2020 2019 Courseware $ 287,813 $ 325,987 Accreditation 59,350 57,100 Accumulated amortization (235,706) (221,157) Courseware and accreditation, net $ 111,457 $ 161,930 |
Schedule of Depreciation and Amortization Expense | Depreciation and amortization expense for all Property and Equipment as well as the portion for just software is presented below for the years ended April 30, 2020 and 2019: Years Ended April 30, 2020 2019 Depreciation and amortization expense $ 1,497,470 $ 1,002,347 Software amortization expense $ 1,013,466 $ 684,871 |
Schedule of Estimated Future Amortization Expense of Software | The following is a schedule of estimated future amortization expense of software at April 30, 2020: Year Ending April 30, 2021 $ 1,203,497 2022 1,109,903 2023 942,271 2024 639,618 Thereafter 217,672 Total $ 4,112,961 The following is a schedule of estimated future amortization expense of courseware and accreditation at April 30, 2020: Year Ending April 30, 2021 $ 40,454 2022 31,935 2023 26,116 2024 11,743 Thereafter 1,209 Total $ 111,457 |
USU Goodwill and Intangibles (T
USU Goodwill and Intangibles (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following at April 30, 2020 and April 30, 2019: April 30, 2020 2019 Intangible assets $ 10,100,000 $ 10,100,000 Accumulated amortization (2,200,000) (1,558,333) Net intangible assets $ 7,900,000 $ 8,541,667 |
Courseware and Accreditation (T
Courseware and Accreditation (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Courseware, Net | Software consisted of the following at April 30, 2020 and 2019: April 30, 2020 2019 Software $ 6,162,770 $ 4,314,198 Accumulated amortization (2,049,809) (1,351,193) Software, net $ 4,112,961 $ 2,963,005 Courseware and accreditation consisted of the following at April 30, 2020 and 2019: April 30, 2020 2019 Courseware $ 287,813 $ 325,987 Accreditation 59,350 57,100 Accumulated amortization (235,706) (221,157) Courseware and accreditation, net $ 111,457 $ 161,930 |
Schedule of Amortization Expense of Intangible Assets | Amortization expense of courseware and accreditation for the years ended April 30, 2020 and 2019: Years Ended April 30, 2020 2019 Amortization expense $ 64,324 $ 67,751 |
Schedule of Estimated Future Amortization Expense of Software | The following is a schedule of estimated future amortization expense of software at April 30, 2020: Year Ending April 30, 2021 $ 1,203,497 2022 1,109,903 2023 942,271 2024 639,618 Thereafter 217,672 Total $ 4,112,961 The following is a schedule of estimated future amortization expense of courseware and accreditation at April 30, 2020: Year Ending April 30, 2021 $ 40,454 2022 31,935 2023 26,116 2024 11,743 Thereafter 1,209 Total $ 111,457 |
Accrued expenses (Tables)
Accrued expenses (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following at April 30, 2020 and 2019: April 30, 2020 2019 Accrued compensation $ — $ 226,805 Accrued interest 49,863 135,115 Other accrued expenses 487,550 289,498 Accrued expenses $ 537,413 $ 651,418 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Debt Disclosure [Abstract] | |
Convertible Notes Payable | Convertible notes payable consisted of the following at April 30, 2020 and 2019: April 30, 2020 2019 Convertible note payable - originating February 29, 2012; no monthly payments required; bearing interest at 0.19%; maturing at February 29, 2014 $ — $ 50,000 Less: Current maturities — (50,000) Total $ — $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Leases [Abstract] | |
Future Minimum Payments Under Operating Leases | The following is a schedule by years of future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of April 30, 2020 (a) . Maturity of Lease Obligations Lease Payments 2021 $ 2,409,191 2022 2,250,755 2023 1,686,197 2024 1,488,839 2025 1,136,640 Thereafter 779,286 Total 9,750,908 Less Interest (2,382,321) Present value of operating lease obligations $ 7,368,587 _____________________ (a) Lease payments exclude $4.3 million of legally binding minimum lease payments for the new Aspen University BSN Pre-Licensure campus location in Austin, Texas lease signed but not yet commenced. Prior to commencing its Austin campus operations, Aspen is required to obtain approvals from the Texas Board of Nursing. |
Schedule of Balance Sheet Information Related to Leases | Balance Sheet Classification Operating lease obligations, current $ 1,683,252 Operating lease obligations, long-term 5,685,335 Total operating lease obligations $ 7,368,587 Other Information Weighted average remaining lease term 4.6 Weighted average discount rate 12.06 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Restricted Stock Unit Activity | A summary of the Company’s Restricted Stock Unit activity during the year ended April 30, 2020 is presented below: Number of Shares Weighted Average Grant Price Restricted Stock Units Balance outstanding at April 30, 2019 — $ — Granted 658,675 5.67 Vested (15,000) 6.89 Forfeited (500) 5.18 Balance outstanding at April 30, 2020 643,175 5.64 |
Schedule of Warrants | A summary of the Company’s warrant activity during the year ended April 30, 2020 is presented below: Warrants Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance Outstanding, April 30, 2019 731,152 $ 5.28 3.29 $ 413,296 Granted — — — — Exercised (164,929) 2.05 — — Surrendered — — — — Expired — — — — Balance Outstanding, April 30, 2020 566,223 $ 6.22 3.17 $ 950,100 Exercisable, April 30, 2020 566,223 $ 6.22 3.17 $ 950,100 |
Schedule of All Warrants and Exercisable Warrants | ALL WARRANTS EXERCISABLE WARRANTS Exercise Price Weighted Average Exercise Price Outstanding No. of Warrants Weighted Average Exercise Price Weighted Average Remaining Life In Years Exercisable No. of Warrants $ 4.89 $ 4.89 50,000 $ 4.89 3.85 50,000 $ 5.85 $ 5.85 92,049 $ 5.85 3.82 92,049 $ 6.00 $ 6.00 200,000 $ 6.00 3.85 200,000 $ 6.87 $ 6.87 224,174 $ 6.87 2.24 224,174 566,223 566,223 ALL OPTIONS EXERCISABLE OPTIONS Exercise Price Weighted Average Exercise Price Outstanding No. of Options Weighted Average Exercise Price Weighted Average Remaining Life In Years Exercisable No. of Options $1.57 to $2.10 $2.00 561,724 $2.00 0.71 561,724 $2.28 to $2.76 $2.30 374,446 $2.30 0.41 374,446 $3.24 to $4.38 $3.89 327,730 $3.87 1.60 275,063 $4.50 to $5.20 $4.94 677,277 $4.94 2.54 226,125 $5.95 to $6.28 $6.07 79,917 $6.07 2.20 26,639 $7.17 to $7.55 $7.41 549,639 $7.32 3.58 223,880 $8.57 to $9.07 $8.97 164,166 $8.97 2.69 54,722 Options only 2,734,899 1,742,599 |
Schedule of Assumptions Used to Value Stock Options | The following table summarizes the assumptions the Company utilized to record compensation expense for stock options granted to employees during the period ended. April 30, 2020 2019 Expected life (years) 3.5 3.5 Expected volatility 57.0 % 50.1 % Risk-free interest rate 0.24 % 2.63 % Dividend yield 0.00 % 0.00 % Expected forfeiture rate n/a n/a |
Schedule of Stock Option Activity | A summary of the Company’s stock option activity for employees and directors during the year ended April 30, 2020, is presented below: Options Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance Outstanding, April 30, 2019 3,408,154 $ 4.44 2.90 $ 6,880,644 Granted 156,900 5.18 — — Exercised (624,346) 3.17 — — Forfeited (205,809) 7.37 — — Expired — — — — Balance Outstanding, April 30, 2020 2,734,899 $ 4.62 1.97 $ 9,146,198 Exercisable, April 30, 2020 1,742,599 $ 3.71 1.48 $ 7,366,936 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenue | The following table represents our revenues disaggregated by the nature and timing of services: For the Years Ended April 30, 2020 2019 Tuition - recognized over period of instruction $ 43,917,321 $ 31,032,677 Course fees - recognized over period of instruction 4,536,639 2,488,232 Book fees - recognized at a point in time 80,845 106,819 Exam fee - recognized at a point in time 219,015 189,090 Service fees - recognized at a point in time 307,260 208,600 $ 49,061,080 $ 34,025,418 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | The components of income tax expense are as follows: For the Years Ended April 30, 2020 2019 Current: Federal $ — $ — State 51,820 — 51,820 — Deferred: Federal — — State — — — — Total Income tax expense $ 51,820 $ — |
Schedule of Deferred Income Tax Assets and Liabilities | Significant components of the Company's deferred income tax assets and liabilities are as follows: April 30, 2020 2019 Deferred tax assets: Net operating loss carryforward $ 11,044,236 $ 9,033,235 Allowance for doubtful accounts 629,272 181,774 Deferred rent 606,594 180,154 Stock-based compensation 439,454 954,586 Contributions carryforward 11,275 60 Intangibles 86,897 — Total deferred tax assets 12,817,728 10,349,809 Deferred tax liabilities: Property and equipment (417,780) (234,336) Intangibles — (64,439) Total deferred tax liabilities (417,780) (298,775) Deferred tax assets, net $ 12,399,948 $ 10,051,034 Valuation allowance: Beginning of year (10,051,034) (7,837,755) Increase during period (2,348,914) (2,213,279) Ending balance (12,399,948) (10,051,034) Net deferred tax asset $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of income tax computed at the U.S. statutory rate to the effective income tax rate is as follows: The Company's effective income tax expense differs from the statutory federal income tax rate of 21% as follows: April 30, 2020 2019 Statutory Rate applied to net loss before income taxes 21.0 % 21.0 % Increase (decrease) in income taxes resulting from: State income taxes, net of federal tax benefit 5.3 % 3.6 % Federal and State Minimum Taxes (0.9) % — % Permanent Differences (0.3) % — % Change in Tax Rates - States 17.3 % — % Change in Valuation Allowance (41.9) % (23.8) % Other (1.4) % (0.8) % Effective Income Tax Rate (0.9) % 0.0 % |
Quarterly Results (Tables)
Quarterly Results (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | Quarter Ended July 31 Quarter Ended October 31 Quarter Ended January 31 Quarter Ended April 30 Year Ended April 30 Year Ended April 30, 2020 Revenue $ 10,357,982 $ 12,085,965 $ 12,537,940 $ 14,079,193 $ 49,061,080 Cost of revenue (exclusive of depreciation and amortization) 4,353,058 4,188,056 5,163,007 5,431,181 19,135,302 Operating loss (1,638,800) (331,775) (1,728,048) (339,790) (4,038,413) Loss before income taxes (2,039,687) (628,168) (2,265,889) (673,501) (5,607,245) Net loss (2,075,282) (638,168) (2,281,052) (664,563) (5,659,065) Net loss per share allocable to common stockholders - basic and diluted $ (0.11) $ (0.03) $ (0.12) $ (0.03) $ (0.29) Quarter Ended July 31 Quarter Ended October 31 Quarter Ended January 31 Quarter Ended April 30 Year Ended April 30 Year Ended April 30, 2019 Revenue $ 7,221,305 $ 8,095,344 $ 8,494,627 $ 10,214,142 $ 34,025,418 Cost of revenue (exclusive of depreciation and amortization) 3,752,392 3,835,515 4,076,980 4,312,331 15,977,218 Operating loss (2,853,324) (2,474,649) (2,421,686) (1,360,067) (9,109,726) Loss before income taxes (2,837,276) (2,475,078) (2,355,940) (1,609,923) (9,278,217) Net loss (2,837,276) (2,475,078) (2,355,940) (1,609,923) (9,278,217) Net loss per share allocable to common stockholders - basic and diluted $ (0.15) $ (0.13) $ (0.13) $ (0.09) $ (0.50) |
Nature of Operations and Liqu_2
Nature of Operations and Liquidity (Details) | Jan. 22, 2020USD ($) | Feb. 25, 2019USD ($) | Dec. 03, 2018USD ($) | Nov. 05, 2018USD ($) | Mar. 31, 2019USD ($)agreement | Apr. 30, 2020USD ($)studentsubsidiary | Jan. 31, 2020USD ($) | Oct. 31, 2019USD ($) | Jul. 31, 2019USD ($) | Apr. 30, 2019USD ($) | Jan. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Jul. 31, 2018USD ($) | Apr. 30, 2020USD ($)studentsubsidiary | Apr. 30, 2019USD ($) |
Debt Instrument [Line Items] | |||||||||||||||
Number of subsidiaries | subsidiary | 5 | 5 | |||||||||||||
Number of degree-seeking nursing students | student | 9,710 | 9,710 | |||||||||||||
Number of students | student | 11,444 | 11,444 | |||||||||||||
Percentage of nursing students seeking degree | 85.00% | 85.00% | |||||||||||||
Revenues | $ 14,079,193 | $ 12,537,940 | $ 12,085,965 | $ 10,357,982 | $ 10,214,142 | $ 8,494,627 | $ 8,095,344 | $ 7,221,305 | $ 49,061,080 | $ 34,025,418 | |||||
Approximate cash position | 14,350,554 | 14,350,554 | |||||||||||||
Restricted cash | $ 3,556,211 | 3,556,211 | |||||||||||||
Number of loan agreements | agreement | 2 | ||||||||||||||
Proceeds from convertible debt | $ 16,000,000 | ||||||||||||||
Cash paid to settle convertible debt | 0 | 60,932 | |||||||||||||
Net cash provided | 7,939,013 | (4,835,313) | |||||||||||||
Cash used in operating activities | $ 5,748,633 | $ 10,216,014 | |||||||||||||
Loan Agreement One | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Face value of loan | $ 5,000,000 | ||||||||||||||
Loan Agreement Two | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Face value of loan | 5,000,000 | ||||||||||||||
Revolving Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Proceeds received from loan agreements | $ 10,000,000 | ||||||||||||||
One-time extension fee (as a percent) | 1.00% | ||||||||||||||
Line of credit facility, period | 3 years | ||||||||||||||
Line of credit facility, maximum amount outstanding during period | $ 5,000,000 | ||||||||||||||
Outstanding balance under facility | $ 0 | ||||||||||||||
Convertible Notes Payable | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, periodic payment | $ 1,080,000 | $ 1,160,000 | |||||||||||||
Cash paid to settle convertible debt | 1,000,000 | ||||||||||||||
Repayment of accrued interest on convertible debt | 19,068 | ||||||||||||||
Accrued unpaid interest and settlement expense | $ 60,932 |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) | 12 Months Ended | ||
Apr. 30, 2020USD ($)segmentshares | Apr. 30, 2019USD ($)shares | May 01, 2019USD ($) | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Restricted cash | $ 3,556,211 | $ 1,651,467 | |
Proceeds from bank debt | 71,828 | ||
Restricted cash, current | 3,556,211 | ||
Cash, uninsured amount | $ 16,742,603 | 9,359,208 | |
Percentage of payments from monthly payment plan | 57.00% | ||
Withdrawal from course, percentage of financial aid earned | 100.00% | ||
Long term accounts receivable | $ 6,701,136 | 3,085,243 | |
Operating lease right of use asset, net | 6,412,851 | 0 | $ 8,800,000 |
Present value of operating lease obligations | 7,368,587 | $ 8,800,000 | |
Marketing and promotional costs | $ 9,495,980 | $ 9,096,550 | |
Outstanding (in shares) | shares | 2,734,899 | 3,408,154 | |
Number of reportable segments | segment | 1 | ||
Bad debt expense | $ 1,431,210 | $ 854,008 | |
Unearned Educational Services Received From Title IV Programs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Percent of restricted cash | 84.00% | ||
Non-Title IV Funds Held for Withdrawn Students | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Percent of restricted cash | 12.00% | ||
Other Items | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Percent of restricted cash | 4.00% | ||
Restatement Adjustment | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Restricted cash, current | $ 1,203,067 | ||
Warrant | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Unvested (in shares) | shares | 24,672 | 64,116 | |
Warrant | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Outstanding (in shares) | shares | 566,223 | 731,152 | |
Convertible Debt | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Convertible debt | $ 10,000,000 | $ 50,000 | |
Antidilutive securities excluded from computation of earnings per share, amount | shares | 1,398,601 | 4,167 | |
Restricted Stock Units (RSUs) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Unvested (in shares) | shares | 643,175 | 0 | |
Courseware, net | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Finite-lived intangible asset, useful life | 5 years | ||
Letter of Credit | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Restricted cash | $ 692,293 | $ 120,864 | |
Proceeds from bank debt | 255,708 | 255,708 | |
Restricted cash, current | $ 2,536,382 | $ 1,203,067 |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Property and Equipment Useful Lives (Details) | 12 Months Ended |
Apr. 30, 2020 | |
Computer equipment & hardware | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 3 years |
Software | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 5 years |
Instructional equipment | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 5 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 7 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 8 years |
Accounts Receivable - Accounts
Accounts Receivable - Accounts Receivable Balance (Details) - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 |
Receivables [Abstract] | ||
Accounts receivable | $ 22,786,847 | $ 14,988,744 |
Long term contractual accounts receivable | (6,701,136) | (3,085,243) |
Less: Allowance for doubtful accounts | (1,758,920) | (1,247,031) |
Accounts receivable, net | $ 14,326,791 | $ 10,656,470 |
Accounts Receivable - Narrative
Accounts Receivable - Narrative (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Receivables [Abstract] | ||
Bad debt expense | $ 1,431,210 | $ 854,008 |
Property and Equipment -Schedul
Property and Equipment -Schedule of Property and Equipment (Details) - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 8,988,662 | $ 6,216,864 |
Accumulated depreciation and amortization | (2,841,019) | (1,825,524) |
Total property and equipment, net | 6,147,643 | 4,391,340 |
Computer equipment & hardware | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 649,927 | 521,395 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,007,099 | 915,936 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 867,024 | 204,545 |
Instructional equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 301,842 | 260,790 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 6,162,770 | $ 4,314,198 |
Property and Equipment -Sched_2
Property and Equipment -Schedule of Software (Details) - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Finite-lived intangible assets, gross | $ 10,100,000 | $ 10,100,000 |
Accumulated amortization | (2,200,000) | (1,558,333) |
Total | 7,900,000 | 8,541,667 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Finite-lived intangible assets, gross | 6,162,770 | 4,314,198 |
Accumulated amortization | (2,049,809) | (1,351,193) |
Total | $ 4,112,961 | $ 2,963,005 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Depreciation and Amortization Expense (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 1,497,470 | $ 1,002,347 |
Software amortization expense | $ 1,013,466 | $ 684,871 |
Property and Equipment - Sche_2
Property and Equipment - Schedule of Estimated Amortization Expense of Software (Details) - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 7,900,000 | $ 8,541,667 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
2021 | 1,203,497 | |
2022 | 1,109,903 | |
2023 | 942,271 | |
2024 | 639,618 | |
Thereafter | 217,672 | |
Total | $ 4,112,961 | $ 2,963,005 |
USU Goodwill and Intangibles -
USU Goodwill and Intangibles - Narrative (Details) - USD ($) | Dec. 01, 2017 | Apr. 30, 2020 | Apr. 30, 2019 | Nov. 30, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill recognized | $ 5,011,432 | $ 5,011,432 | ||
Amortization expense | $ 641,667 | $ 1,100,000 | ||
Educacion Significativa, LLC | ||||
Business Acquisition [Line Items] | ||||
Total purchase price | $ 14,800,000 | |||
Cash paid for acquisition | 2,500,000 | |||
Working capital adjustment to acquisition purchase price | 110,000 | |||
Additional costs paid by seller included in acquisition purchase price | $ 200,000 | |||
Stock consideration (in shares) | 1,203,209 | |||
Closing price used to value stock | $ 8.49 | |||
Stock consideration, value | $ 10,215,244 | |||
Educacion Significativa, LLC | Convertible Debt | ||||
Business Acquisition [Line Items] | ||||
Debt instrument issued | $ 2,000,000 |
USU Goodwill and Intangibles _2
USU Goodwill and Intangibles - Schedule of Intangible Assets (Details) - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Finite-lived intangible assets, gross | $ 10,100,000 | $ 10,100,000 |
Accumulated amortization | (2,200,000) | (1,558,333) |
Total | $ 7,900,000 | $ 8,541,667 |
Courseware and Accreditation -
Courseware and Accreditation - Narrative (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Courseware and Accreditation | ||
Finite-Lived Intangible Assets [Line Items] | ||
Courseware costs capitalized | $ 13,851 | $ 91,522 |
Courseware and Accreditation _2
Courseware and Accreditation - Schedule of Courseware, Net (Details) - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 10,100,000 | $ 10,100,000 |
Accumulated amortization | (2,200,000) | (1,558,333) |
Total | 7,900,000 | 8,541,667 |
Courseware | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 287,813 | 325,987 |
Total | 111,457 | |
Accreditation | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 59,350 | 57,100 |
Courseware, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | (235,706) | (221,157) |
Total | $ 111,457 | $ 161,930 |
Courseware and Accreditation _3
Courseware and Accreditation - Schedule of Amortization Expense of Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 641,667 | $ 1,100,000 |
Courseware and Accreditation | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 64,324 | $ 67,751 |
Courseware and Accreditation _4
Courseware and Accreditation - Schedule of Estimated Future Amortization Expense (Details) - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 7,900,000 | $ 8,541,667 |
Courseware | ||
Finite-Lived Intangible Assets [Line Items] | ||
2021 | 40,454 | |
2022 | 31,935 | |
2023 | 26,116 | |
2024 | 11,743 | |
Thereafter | 1,209 | |
Total | $ 111,457 |
Secured Note and Accounts Rec_2
Secured Note and Accounts Receivable - Narrative (Details) - USD ($) | Jan. 22, 2020 | Apr. 29, 2015 | Dec. 31, 2008 | Mar. 31, 2008 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2014 | Mar. 10, 2015 | Sep. 30, 2014 | Mar. 13, 2012 | Sep. 16, 2011 |
Related Party Transaction [Line Items] | |||||||||||||||||||
Courseware sales | $ 14,079,193 | $ 12,537,940 | $ 12,085,965 | $ 10,357,982 | $ 10,214,142 | $ 8,494,627 | $ 8,095,344 | $ 7,221,305 | $ 49,061,080 | $ 34,025,418 | |||||||||
Series C Preferred Shares pledged by HEMG, converted to common shares | 54,571 | ||||||||||||||||||
Share price (in dollars per share) | $ 1.86 | ||||||||||||||||||
Accounts receivable, secured - related party, net of allowance | $ 45,329 | 45,329 | 45,329 | 45,329 | 45,329 | ||||||||||||||
Accounts receivable, before allowance for credit loss, noncurrent | 671,291 | $ 772,793 | $ 772,793 | ||||||||||||||||
Proceeds from issuance of common stock | $ 17,267,250 | 101,502 | 16,044,879 | 0 | |||||||||||||||
Accounts receivable, allowance for credit loss, noncurrent | $ 625,963 | $ 625,963 | $ 625,963 | $ 625,963 | $ 625,963 | ||||||||||||||
Parent Company | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Courseware sales | $ 600,000 | $ 455,000 | |||||||||||||||||
Series C Preferred Shares pledged by HEMG, converted to common shares | 54,571 | 772,793 | |||||||||||||||||
Share price (in dollars per share) | $ 2.28 | ||||||||||||||||||
Receivable collateral valuation reserve | $ 123,647 |
Accrued expenses (Details)
Accrued expenses (Details) - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 0 | $ 226,805 |
Accrued interest | 49,863 | 135,115 |
Other accrued expenses | 487,550 | 289,498 |
Accrued expenses | $ 537,413 | $ 651,418 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jan. 23, 2020d$ / shares | Jan. 22, 2020USD ($)notelender | Mar. 06, 2019USD ($)$ / sharesshares | Feb. 25, 2019USD ($) | Dec. 01, 2018USD ($) | Nov. 08, 2018$ / sharesshares | Nov. 05, 2018USD ($)$ / sharesshares | Nov. 05, 2018USD ($)$ / sharesshares | Dec. 02, 2017USD ($)$ / shares | Feb. 29, 2012USD ($)$ / shares | Mar. 31, 2019USD ($) | Apr. 30, 2020USD ($) | Apr. 30, 2020USD ($) | Apr. 30, 2019USD ($) |
Debt Instrument [Line Items] | ||||||||||||||
Beneficial conversion feature on convertible debt | $ 1,692,309 | $ 0 | ||||||||||||
Proceeds from issuance or sale of equity | $ 10,000,000 | |||||||||||||
Proceeds from convertible debt | 16,000,000 | |||||||||||||
Debt instrument, term | 2 years | |||||||||||||
Interest rate (as a percent) | 8.00% | |||||||||||||
Reverse stock split, conversion ratio | 0.08333 | |||||||||||||
Gain on debt extinguishment | $ 50,000 | 50,000 | 0 | |||||||||||
Conversion of stock, amount converted | $ 1,000,000 | |||||||||||||
Warrants issued as part of senior secured term loans | 0 | 360,516 | ||||||||||||
Closing costs of senior secured loans | 0 | $ 33,693 | ||||||||||||
Loans Payable | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Write off of deferred debt issuance cost | 182,000 | |||||||||||||
Loan Agreements | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, term | 5 years | |||||||||||||
Stock issued during period, shares, conversion of convertible securities | shares | 100,000 | |||||||||||||
Warrants granted, exercise price (in dollars per share) | $ / shares | $ 6 | |||||||||||||
Loan Agreements | WarrantsMember | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Warrants issued as part of senior secured term loans | $ 360,516 | |||||||||||||
Closing costs of senior secured loans | 33,693 | |||||||||||||
Revolving Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | 5,000,000 | |||||||||||||
Proceeds received from loan agreements | $ 10,000,000 | |||||||||||||
One-time extension fee (as a percent) | 1.00% | |||||||||||||
Leon and Toby Cooperman Family Foundation | Loan Agreements | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Proceeds from issuance or sale of equity | $ 10,000,000 | |||||||||||||
Interest rate (as a percent) | 12.00% | |||||||||||||
Common stock short swing reclamation | $ 5,000,000 | |||||||||||||
One-time extension fee | 1.00% | |||||||||||||
Convertible Notes | Revolving Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | $ 5,000,000 | ||||||||||||
Beneficial conversion feature on convertible debt | 1,692,309 | |||||||||||||
Convertible Notes | Convertible Notes Payable | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face value of loan | $ 5,000,000 | |||||||||||||
Number of lenders | lender | 2 | |||||||||||||
Number of notes | note | 2 | |||||||||||||
Conversion price after issuance date | 6 months | |||||||||||||
Debt instrument, convertible, conversion price (in dollars per share) | $ / shares | $ 7.15 | |||||||||||||
Average closing price of common stock (in dollars per share) | $ / shares | $ 10.725 | |||||||||||||
Consecutive trading day period | d | 20 | |||||||||||||
Debt instrument, term | 3 years | |||||||||||||
Interest rate (as a percent) | 7.00% | |||||||||||||
Debt instrument, extension period | 1 year | |||||||||||||
Extension fee per note | $ 50,000 | |||||||||||||
Total extension fee | 100,000 | |||||||||||||
Payment to cover taxes | $ 40,400 | |||||||||||||
Convertible note payable Dated February 29, 2012 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face value of loan | $ 50,000 | |||||||||||||
2 Year Promissory Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, convertible, conversion price (in dollars per share) | $ / shares | $ 12 | |||||||||||||
Interest rate (as a percent) | 0.19% | |||||||||||||
Convertible Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, periodic payment, principal | $ 1,000,000 | $ 1,000,000 | ||||||||||||
Debt instrument, periodic payment, interest | $ 80,000 | $ 60,000 | ||||||||||||
Convertible Debt | USU | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face value of loan | $ 2,000,000 | |||||||||||||
Debt instrument, convertible, conversion price (in dollars per share) | $ / shares | $ 2 | |||||||||||||
Credit Facility Agreement | Revolving Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | $ 5,000,000 | ||||||||||||
Effective interest rate (as a percent) | 12.00% | 12.00% | ||||||||||||
Proceeds received from loan agreements | $ 100,000 | |||||||||||||
One-time extension fee (as a percent) | 2.00% | |||||||||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | shares | 92,049 | 92,049 | 92,049 | |||||||||||
Warrant term | 5 years | 5 years | ||||||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 5.85 | $ 5.85 | $ 5.85 | |||||||||||
Warrants and rights outstanding | $ 255,071 | $ 255,071 | ||||||||||||
Unamortized costs | $ 182,418 | $ 182,418 |
Debt - Convertible Notes Payabl
Debt - Convertible Notes Payable (Details) - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 | Dec. 02, 2017 |
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 8.00% | ||
Notes Payable, Other Payables | |||
Debt Instrument [Line Items] | |||
Less: Current maturities | $ 0 | $ (50,000) | |
Total | 0 | ||
Convertible note payable Dated February 29, 2012 | Notes Payable, Other Payables | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | $ 50,000 | |
Interest rate (as a percent) | 0.19% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | Feb. 08, 2019 | Apr. 30, 2020 | Jun. 02, 2020 | Dec. 31, 2016 | Oct. 15, 2015 | Sep. 29, 2015 | Feb. 11, 2013 |
Other Commitments [Line Items] | |||||||
Estimate of potential loss | $ 2,200,000 | ||||||
Return of unearned funds, no later than (in days) | 45 days | ||||||
Letter of Credit | |||||||
Other Commitments [Line Items] | |||||||
Letters of credit outstanding, amount | $ 255,708 | ||||||
HEMG | |||||||
Other Commitments [Line Items] | |||||||
Amount of default judgment in litigation matter | $ 772,793 | ||||||
Number of AGI common stock remaining as sole asset in bankrutcy claim | 208,000 | ||||||
Number of AGI common stock filed in bankruptcy claim by third party | 167,000 | ||||||
Amount of claim filed | $ 888,638 | ||||||
Loss contingency, damages sought, value | 200,000 | ||||||
Amount available for distribution | $ 924,486 | ||||||
HEMG | Subsequent Event | |||||||
Other Commitments [Line Items] | |||||||
Fees due to trustee | $ 346,480 | ||||||
Settlement liability | $ 574,145 | ||||||
USU | Letter of Credit | |||||||
Other Commitments [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 21,857 | $ 71,634 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended |
Apr. 30, 2020USD ($) | |
Leases [Abstract] | |
Lease expense | $ 2,516,213 |
Leases not yet commenced, liability | $ 4,300,000 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments Under Operating Leases (Details) - USD ($) | Apr. 30, 2020 | May 01, 2019 |
Leases [Abstract] | ||
2021 | $ 2,409,191 | |
2022 | 2,250,755 | |
2023 | 1,686,197 | |
2024 | 1,488,839 | |
2025 | 1,136,640 | |
Thereafter | 779,286 | |
Total | 9,750,908 | |
Less Interest | (2,382,321) | |
Present value of operating lease obligations | $ 7,368,587 | $ 8,800,000 |
Leases - Schedule of Balance Sh
Leases - Schedule of Balance Sheet Information Related to Leases (Details) - USD ($) | Apr. 30, 2020 | May 01, 2019 | Apr. 30, 2019 |
Leases [Abstract] | |||
Operating lease obligations, current | $ 1,683,252 | $ 0 | |
Operating lease obligations, long-term | 5,685,335 | $ 0 | |
Total operating lease obligations | $ 7,368,587 | $ 8,800,000 |
Leases - Schedule of Other Info
Leases - Schedule of Other Information Related to Leases (Details) | Apr. 30, 2020 |
Leases [Abstract] | |
Weighted average remaining lease term | 4 years 7 months 6 days |
Weighted average discount rate | 12.06% |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock and Common Stock (Details) - USD ($) | Jan. 22, 2020 | Nov. 30, 2019 | Apr. 29, 2015 | Dec. 31, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | Jun. 28, 2019 | Jun. 27, 2019 | Jul. 19, 2018 |
Stockholders Equity [Line Items] | |||||||||
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 | 250,000,000 | ||||||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 | 10,000,000 | |||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||||||
Preferred stock, shares issued (in shares) | 0 | 0 | |||||||
Proceeds from sale of common stock net of underwriter costs | $ 17,267,250 | $ 101,502 | $ 16,044,879 | $ 0 | |||||
Common stock issued in equity raise (in dollars per share) | $ 7.15 | ||||||||
Stock issued during period, value, new issues | $ 16,044,879 | ||||||||
Common stock issued for cashless exercise of stock options (in shares) | 190,559 | 111,666 | |||||||
Common stock issued for stock options exercised for cash (in shares) | 363,334 | 194,276 | |||||||
Common stock issued for cashless warrant exercise (in shares) | 76,929 | 119,594 | |||||||
Cashless exercise of warrants (in shares) | 164,929 | 218,323 | |||||||
Common stock issued for warrants exercised for cash | $ 100,000 | ||||||||
Over-Allotment Option | |||||||||
Stockholders Equity [Line Items] | |||||||||
Sale of stock, number of shares issued in transaction | 315,000 | ||||||||
Common Stock | |||||||||
Stockholders Equity [Line Items] | |||||||||
Common stock issued (in shares) | 2,415,000 | ||||||||
Common stock issued in equity raise (in dollars per share) | $ 7.40 | ||||||||
Common stock issued for services (in shares) | 25,000 | ||||||||
Amortization of warrant based cost issued for services | $ 177,500 | ||||||||
Common stock issued for cashless exercise of stock options (in shares) | 76,929 | 119,594 | |||||||
Common stock issued for stock options exercised for cash (in shares) | 277,678 | 56,910 | |||||||
Common stock issued for stock options exercised for cash (in shares) | 277,678 | 56,910 | |||||||
Common stock issued for stock options exercised for cash | $ 962,650 | $ 128,201 | |||||||
Common stock issued for warrants exercised for cash (in shares) | 43,860 | ||||||||
Common stock issued for warrants exercised for cash | $ 44 | ||||||||
Common Stock | Chief Financial Officer | |||||||||
Stockholders Equity [Line Items] | |||||||||
Common stock issued (in shares) | 15,000 | 15,000 | |||||||
Stock issued during period, value, new issues | $ 103,350 | $ 103,350 | |||||||
Maximum | Preferred Stock | |||||||||
Stockholders Equity [Line Items] | |||||||||
Preferred stock, shares authorized (in shares) | 1,000,000 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock (Details) - USD ($) | Nov. 30, 2019 | Jun. 18, 2019 | Sep. 06, 2018 | Apr. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 29, 2015 |
Stockholders Equity [Line Items] | |||||||||
Stock issued for services | $ 0 | ||||||||
Restricted shares granted, value | $ 122,232 | ||||||||
Share price (in dollars per share) | $ 1.86 | ||||||||
Weighted average recognition period | 1 year 8 months 12 days | ||||||||
Restricted Stock | |||||||||
Stockholders Equity [Line Items] | |||||||||
Unvested (in shares) | 64,116 | 24,672 | 64,116 | ||||||
Total unrecognized compensation expense | $ 340,000 | $ 70,178 | $ 340,000 | ||||||
Investor | Restricted Stock | |||||||||
Stockholders Equity [Line Items] | |||||||||
Restricted shares granted, value | $ 122,250 | ||||||||
Granted (in shares) | 25,000 | ||||||||
Restricted shares vested (in shares) | 5,000 | 5,000 | |||||||
Director | Restricted Stock | |||||||||
Stockholders Equity [Line Items] | |||||||||
Total unrecognized compensation expense | 70,178 | ||||||||
Stock issued for services (in shares) | 24,672 | ||||||||
Stock issued for services | $ 126,320 | ||||||||
Award vesting period | 36 months | ||||||||
Amortization of prepaid shares for services | $ 42,107 | $ 14,036 | |||||||
Andrew Kaplan Current Director | Restricted Stock | |||||||||
Stockholders Equity [Line Items] | |||||||||
Granted (in shares) | 5,131 | ||||||||
Two former directors | Restricted Stock | |||||||||
Stockholders Equity [Line Items] | |||||||||
Granted (in shares) | 25,000 | ||||||||
Chief Financial Officer | |||||||||
Stockholders Equity [Line Items] | |||||||||
Granted (in shares) | 180,000 | ||||||||
Weighted average recognition period | 5 years | ||||||||
Chief Financial Officer | Restricted Stock | |||||||||
Stockholders Equity [Line Items] | |||||||||
Total unrecognized compensation expense | $ 180,000 | ||||||||
Amortization of prepaid shares for services | $ 108,000 | ||||||||
Granted (in shares) | 25,000 | ||||||||
Share price (in dollars per share) | $ 7.15 | ||||||||
Weighted average recognition period | 36 months | ||||||||
Restricted stock vesting percentage | 66.67% |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) | 12 Months Ended |
Apr. 30, 2020$ / sharesshares | |
Number of Shares | |
Balance Outstanding at April 30, 2019 (in shares) | shares | 0 |
Granted (in shares) | shares | 658,675 |
Vested (in shares) | shares | (15,000) |
Forfeited (in shares) | shares | (500) |
Balance Outstanding, April 30, 2020 (in shares) | shares | 643,175 |
Weighted Average Grant Price | |
Balance Outstanding at April 30, 2019 (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 5.67 |
Vested (in dollars per share) | $ / shares | 6.89 |
Forfeited (in dollars per share) | $ / shares | 5.18 |
Balance Outstanding at April 30, 2020 (in dollars per share) | $ / shares | $ 5.64 |
Stockholders' Equity - Restri_2
Stockholders' Equity - Restricted Stock Units (Details) - USD ($) | Feb. 04, 2020 | Jan. 22, 2020 | Nov. 30, 2019 | Sep. 06, 2018 | Jul. 19, 2018 | Dec. 31, 2019 | Nov. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 29, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share price (in dollars per share) | $ 1.86 | |||||||||
Weighted average recognition period | 1 year 8 months 12 days | |||||||||
Stock issued during period, value, new issues | $ 16,044,879 | |||||||||
Common Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Right to receive shares (in shares) | 1 | |||||||||
Share price (in dollars per share) | $ 9.49 | |||||||||
Common stock issued (in shares) | 2,415,000 | |||||||||
Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock-based compensation expense | $ 454,999 | |||||||||
Unvested (in shares) | 643,175 | 0 | ||||||||
Total unrecognized compensation expense | $ 3,274,970 | |||||||||
Granted (in shares) | 658,675 | |||||||||
Weighted average recognition period | 4 years | 3 years | ||||||||
Amortization of prepaid shares for services | $ 111,211 | |||||||||
Fair value of RSUs | $ 826,800 | |||||||||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche One | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Minimum closing price of common stock (in dollars per share) | $ 9 | |||||||||
Consecutive trading days | 20 days | |||||||||
Restricted stock vesting percentage | 10.00% | |||||||||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche Two | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Minimum closing price of common stock (in dollars per share) | $ 10 | |||||||||
Consecutive trading days | 20 days | |||||||||
Restricted stock vesting percentage | 25.00% | |||||||||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche Three | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Minimum closing price of common stock (in dollars per share) | $ 12 | |||||||||
Consecutive trading days | 20 days | |||||||||
Chief Executive Officer | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Weighted average recognition period | 5 years | |||||||||
Chief Executive Officer | Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 100,000 | |||||||||
Chief Operating Officer | Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 75,000 | |||||||||
CAO | Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 75,000 | |||||||||
Chief Financial Officer | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Weighted average recognition period | 5 years | |||||||||
Chief Financial Officer | Common Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Common stock issued (in shares) | 15,000 | 15,000 | ||||||||
Stock issued during period, value, new issues | $ 103,350 | $ 103,350 | ||||||||
Chief Financial Officer | Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 75,000 | 100,000 | 50,000 | |||||||
Weighted average recognition period | 3 years | |||||||||
Fair value of RSUs | 314,500 | $ 314,500 | ||||||||
Chief Nursing Officer | Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 50,000 | |||||||||
Chief Accounting Officer | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Weighted average recognition period | 5 years | |||||||||
Chief Accounting Officer | Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 20,000 | |||||||||
Employees | Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 98,675 | |||||||||
Weighted average recognition period | 3 years | |||||||||
Fair value of RSUs | $ 708,425 | $ 708,425 |
Stockholders' Equity - Treasury
Stockholders' Equity - Treasury Stock (Details) - USD ($) | Jul. 19, 2018 | Apr. 30, 2020 | Jan. 22, 2020 |
Stockholders Equity [Line Items] | |||
Common stock issued in equity raise (in dollars per share) | $ 7.15 | ||
Common stock, par value (in dollars per share) | $ 0.001 | ||
Common Stock | |||
Stockholders Equity [Line Items] | |||
Treasury stock, common (in shares) | 1,000,000 | ||
Common stock issued in equity raise (in dollars per share) | $ 7.40 | ||
Common stock, par value (in dollars per share) | $ 7.40 | ||
Stock issuance costs paid by third parties | $ 30,000 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Warrants (Details) - Warrant - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 |
Number of Shares | |||
Balance Outstanding, April 30, 2019 | 731,152 | ||
Granted | 0 | ||
Exercised | (164,929) | ||
Surrendered | 0 | ||
Expired | 0 | ||
Balance Outstanding, April 30, 2020 | 566,223 | 731,152 | 566,223 |
Exercisable, April 30, 2019 | 566,223 | 566,223 | |
Weighted Average Exercise Price | |||
Balance Outstanding, April 30, 2019 | $ 5.28 | ||
Granted | 0 | ||
Exercised | 2.05 | ||
Forfeited | 0 | ||
Expired | 0 | ||
Balance Outstanding, April 30, 2020 | $ 6.22 | $ 5.28 | 6.22 |
Exercisable, April 30, 2020 | $ 6.22 | $ 6.22 | |
Weighted Average Remaining Contractual Term | |||
Balance outstanding | 3 years 2 months 1 day | 3 years 3 months 14 days | |
Balance outstanding | 3 years 2 months 1 day | 3 years 3 months 14 days | |
Exercisable, April 30, 2020 | 3 years 2 months 1 day | ||
Aggregate Intrinsic Value | |||
Balance Outstanding, April 30, 2019 | $ 413,296 | ||
Balance Outstanding, April 30, 2020 | $ 950,100 | $ 413,296 | $ 950,100 |
Exercisable, April 30, 2020 | $ 950,100 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of All Warrants and Exercisable Warrants (Details) - $ / shares | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding (in shares) | 2,734,899 | 3,408,154 |
Exercisable (in shares) | 1,742,599 | |
Warrant | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding (in shares) | 566,223 | 731,152 |
Warrant | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercisable (in shares) | 566,223 | |
Warrant | Warrant | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding (in shares) | 566,223 | |
Warrant | $4.89 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Minimum exercise price (in dollars per share) | $ 4.89 | |
Maximum exercise price (in dollars per share) | 4.89 | |
Weighted average exercise price (in dollars per share) | $ 4.89 | |
Outstanding (in shares) | 50,000 | |
Weighted average exercise price (in dollars per share) | $ 4.89 | |
Weighted average remaining life (in years) | 3 years 10 months 6 days | |
Exercisable (in shares) | 50,000 | |
Warrant | $5.85 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Minimum exercise price (in dollars per share) | $ 5.85 | |
Maximum exercise price (in dollars per share) | 5.85 | |
Weighted average exercise price (in dollars per share) | $ 5.85 | |
Outstanding (in shares) | 92,049 | |
Weighted average exercise price (in dollars per share) | $ 5.85 | |
Weighted average remaining life (in years) | 3 years 9 months 25 days | |
Exercisable (in shares) | 92,049 | |
Warrant | $6.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Minimum exercise price (in dollars per share) | $ 6 | |
Maximum exercise price (in dollars per share) | 6 | |
Weighted average exercise price (in dollars per share) | $ 6 | |
Outstanding (in shares) | 200,000 | |
Weighted average exercise price (in dollars per share) | $ 6 | |
Weighted average remaining life (in years) | 3 years 10 months 6 days | |
Exercisable (in shares) | 200,000 | |
Warrant | $6.87 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Minimum exercise price (in dollars per share) | $ 6.87 | |
Maximum exercise price (in dollars per share) | 6.87 | |
Weighted average exercise price (in dollars per share) | $ 6.87 | |
Outstanding (in shares) | 224,174 | |
Weighted average exercise price (in dollars per share) | $ 6.87 | |
Weighted average remaining life (in years) | 2 years 2 months 26 days | |
Exercisable (in shares) | 224,174 |
Stockholders' Equity - Warrants
Stockholders' Equity - Warrants (Details) | Aug. 20, 2019investorshares | Aug. 17, 2019shares | Apr. 30, 2019shares | Mar. 05, 2019shares | Nov. 08, 2018$ / sharesshares | Nov. 05, 2018$ / sharesshares | Jul. 19, 2018shares | Apr. 30, 2020shares | Apr. 30, 2019USD ($)shares | Jun. 07, 2019shares | Jun. 03, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Cashless exercise of warrants (in shares) | 164,929 | 218,323 | |||||||||
Common stock issued for cashless warrant exercise (in shares) | 76,929 | 119,594 | |||||||||
Number of Investors | investor | 2 | ||||||||||
Common stock, shares issued (in shares) | 18,665,551 | 21,770,520 | 18,665,551 | ||||||||
Weighted average recognition period | 1 year 8 months 12 days | ||||||||||
Common stock issued for stock options exercised for cash (in shares) | 363,334 | 194,276 | |||||||||
Senior Loans | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Granted (in shares) | 200,000 | ||||||||||
Revolving Credit Facility | Credit Facility Agreement | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 92,049 | 92,049 | |||||||||
Warrant term | 5 years | 5 years | |||||||||
Exercise price (in dollars per share) | $ / shares | $ 5.85 | $ 5.85 | |||||||||
Warrant | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock, shares issued (in shares) | 119,594 | 119,594 | |||||||||
Common stock issued for stock options exercised for cash (in shares) | 262,183 | ||||||||||
Exercises for cash (in shares) | 43,860 | ||||||||||
Proceeds from issuance of warrants | $ | $ 100,000 | ||||||||||
Warrant | Cashless Exercise of Stock Options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock issued for stock options exercised for cash (in shares) | 218,323 | ||||||||||
Common Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock issued for stock options exercised for cash (in shares) | 277,678 | 56,910 | |||||||||
Common Stock | Warrant Transaction Four | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Exercises for cash (in shares) | 43,860 | ||||||||||
Investor | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock issued for cashless warrant exercise (in shares) | 6,271 | ||||||||||
Investor | Warrant | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Cashless exercise of warrants (in shares) | 13,542 | ||||||||||
Investor 1 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock issued for cashless warrant exercise (in shares) | 8,970 | ||||||||||
Investor 1 | Warrant | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Cashless exercise of warrants (in shares) | 18,818 | ||||||||||
Investor 2 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock issued for cashless warrant exercise (in shares) | 42,285 | ||||||||||
Investor 2 | Warrant | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Cashless exercise of warrants (in shares) | 88,710 | ||||||||||
Former Director | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock, shares issued (in shares) | 9,806 | ||||||||||
Former Director | Warrant | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock, shares issued (in shares) | 21,930 | ||||||||||
Chief Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock, shares issued (in shares) | 9,597 | ||||||||||
Granted (in shares) | 200,000 | ||||||||||
Weighted average recognition period | 5 years | ||||||||||
Advisory Board Member | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Granted (in shares) | 50,000 | ||||||||||
Weighted average recognition period | 3 years |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options (Details) | Dec. 09, 2019$ / sharesshares | Aug. 01, 2019USD ($)subsidiary$ / sharesshares | May 13, 2019$ / sharesshares | Apr. 30, 2019USD ($)employee$ / sharesshares | Dec. 24, 2018USD ($)$ / sharesshares | Dec. 13, 2018USD ($)subsidiary$ / sharesshares | Sep. 06, 2018USD ($)shares | Jul. 19, 2018USD ($)$ / sharesshares | Apr. 30, 2020USD ($)$ / sharesshares | Apr. 30, 2020USD ($)shares | Apr. 30, 2019USD ($)employee$ / shares | Jan. 31, 2020USD ($) | Dec. 30, 2019shares | Jul. 31, 2019USD ($) | Mar. 13, 2012shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Compensation expense | $ | $ 1,289,546 | $ 1,190,385 | |||||||||||||
Unrecognized compensation costs | $ | $ 724,965 | $ 724,965 | |||||||||||||
Weighted average recognition period | 1 year 8 months 12 days | ||||||||||||||
Share-based Payment Arrangement, Option | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Granted (in shares) | 61,000 | 59,000 | |||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 6.92 | ||||||||||||||
Fair value of options granted | $ | $ 83,000 | $ 116,000 | |||||||||||||
Weighted average exercise price of options granted (in dollars per share) | $ / shares | $ 3.99 | ||||||||||||||
Number of employees granted options | subsidiary | 26 | ||||||||||||||
Recognition period of options | 36 months | ||||||||||||||
Non-qualified stock options to certain former directors | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Granted (in shares) | 30,000 | ||||||||||||||
Fair value of options granted | $ | $ 33,600 | ||||||||||||||
Term of options | five | ||||||||||||||
Exercise price of options (in dollars per share) | $ / shares | $ 4.12 | ||||||||||||||
Executive Officer | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock-based compensation expense | $ | $ 0 | $ 0 | |||||||||||||
Employees | Share-based Payment Arrangement, Option | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Granted (in shares) | 6,900 | ||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 4.58 | ||||||||||||||
Fair value of options granted | $ | $ 11,088 | $ 11,088 | |||||||||||||
44 Employees | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Granted (in shares) | 65,750 | ||||||||||||||
Number of employees granted options | employee | 44 | 44 | |||||||||||||
Exercise price of options (in dollars per share) | $ / shares | $ 4.56 | $ 4.56 | |||||||||||||
Fair value of options | $ | $ 117,000 | ||||||||||||||
Options term | 36 months | ||||||||||||||
Three Directors | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Granted (in shares) | 61,667 | ||||||||||||||
Director One | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Granted (in shares) | 41,667 | ||||||||||||||
Weighted average exercise price of options granted (in dollars per share) | $ / shares | $ 5.14 | ||||||||||||||
Two Other Directors | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Granted (in shares) | 10,000 | ||||||||||||||
Director | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Fair value of options | $ | $ 123,000 | ||||||||||||||
Options term | 36 months | ||||||||||||||
61 Employees | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Granted (in shares) | 89,125 | ||||||||||||||
Weighted average exercise price of options granted (in dollars per share) | $ / shares | $ 5.20 | ||||||||||||||
Number of employees granted options | subsidiary | 61 | ||||||||||||||
Fair value of options | $ | $ 136,000 | ||||||||||||||
Options term | 36 months | ||||||||||||||
Chief Executive Officer | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Weighted average recognition period | 5 years | ||||||||||||||
Granted (in shares) | 200,000 | ||||||||||||||
Exercise price of options granted (in dollars per share) | $ / shares | $ 7.55 | ||||||||||||||
Chief Operating Officer | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Granted (in shares) | 180,000 | ||||||||||||||
CAO | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Granted (in shares) | 180,000 | ||||||||||||||
Board of Directors Chairman | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Granted (in shares) | 560,000 | ||||||||||||||
Weighted average exercise price of options granted (in dollars per share) | $ / shares | $ 2.56 | ||||||||||||||
Fair value of options | $ | $ 1,433,600 | ||||||||||||||
Chief Financial Officer | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Weighted average recognition period | 5 years | ||||||||||||||
Granted (in shares) | 180,000 | ||||||||||||||
Fair value of options | $ | $ 257,400 | ||||||||||||||
Options term | 36 months | ||||||||||||||
Chief Accounting Officer | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Weighted average recognition period | 5 years | ||||||||||||||
Granted (in shares) | 50,000 | ||||||||||||||
Fair value of options | $ | $ 71,500 | ||||||||||||||
2012 Equity Incentive Plan | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Number of shares authorized (in shares) | 3,500,000 | ||||||||||||||
Shares reserved for future issuance (in shares) | 179,380 | 179,380 | |||||||||||||
2018 Equity Incentive Plan | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Number of shares authorized (in shares) | 500,000 | 1,100,000 | |||||||||||||
Shares reserved for future issuance (in shares) | 47,277 | 47,277 |
Stockholders' Equity - Schedu_4
Stockholders' Equity - Schedule of Assumptions Used to Value Stock Options (Details) - Stock Incentive Plan and Stock Option Grants to Employees and Directors | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 3 years 6 months | 3 years 6 months |
Expected volatility | 57.00% | 50.10% |
Risk-free interest rate | 0.24% | 2.63% |
Dividend yield | 0.00% | 0.00% |
Stockholders' Equity - Schedu_5
Stockholders' Equity - Schedule of Stock Options Activity (Details) - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 |
Number of Shares | ||||
Balance Outstanding, April 30, 2019 | 3,408,154 | |||
Exercised | (363,334) | (194,276) | ||
Balance Outstanding, April 30, 2020 | 2,734,899 | 3,408,154 | 2,734,899 | 3,408,154 |
Exercisable, April 30, 2020 | 1,742,599 | 1,742,599 | ||
Stock Incentive Plan and Stock Option Grants to Employees and Directors | ||||
Number of Shares | ||||
Balance Outstanding, April 30, 2019 | 3,408,154 | |||
Granted | 156,900 | |||
Exercised | (624,346) | |||
Forfeited | (205,809) | |||
Expired | 0 | |||
Balance Outstanding, April 30, 2020 | 2,734,899 | 3,408,154 | 2,734,899 | 3,408,154 |
Exercisable, April 30, 2020 | 1,742,599 | 1,742,599 | ||
Weighted Average Exercise Price | ||||
Balance Outstanding, April 30, 2019 | $ 4.44 | |||
Granted | 5.18 | |||
Exercised | 3.17 | |||
Forfeited | 7.37 | |||
Expired | 0 | |||
Balance Outstanding, April 30, 2020 | $ 4.62 | $ 4.44 | 4.62 | $ 4.44 |
Exercisable, April 30, 2020 | $ 3.71 | $ 3.71 | ||
Weighted Average Remaining Contractual Term | ||||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 1 year 11 months 19 days | 2 years 10 months 24 days | ||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 1 year 11 months 19 days | 2 years 10 months 24 days | ||
Exercisable, April 30, 2020 | 1 year 5 months 23 days | |||
Aggregate Intrinsic Value | ||||
Balance Outstanding, April 30, 2019 | $ 6,880,644 | |||
Granted | 0 | |||
Forfeited | 0 | |||
Balance Outstanding, April 30, 2020 | $ 9,146,198 | $ 6,880,644 | 9,146,198 | $ 6,880,644 |
Exercisable, April 30, 2020 | $ 7,366,936 | $ 7,366,936 |
Stockholders' Equity - Schedu_6
Stockholders' Equity - Schedule of All Options and Exercisable Options (Details) - $ / shares | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
ALL OPTIONS, Outstanding No. of Options | 2,734,899 | 3,408,154 |
EXERCISABLE OPTIONS, Exercisable No. of Options | 1,742,599 | |
$1.57 to $2.10 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
ALL OPTIONS, Exercise Price Lower Range | $ 1.57 | |
ALL OPTIONS, Exercise Price Upper Range | 2.10 | |
ALL OPTIONS, Weighted Average Exercise Price | $ 2 | |
ALL OPTIONS, Outstanding No. of Options | 561,724 | |
EXERCISABLE OPTIONS, Weighted Average Exercise Price | $ 2 | |
EXERCISABLE OPTIONS, Weighted Average Remaining Life In Years | 8 months 15 days | |
EXERCISABLE OPTIONS, Exercisable No. of Options | 561,724 | |
$2.28 to $2.76 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
ALL OPTIONS, Exercise Price Lower Range | $ 2.28 | |
ALL OPTIONS, Exercise Price Upper Range | 2.76 | |
ALL OPTIONS, Weighted Average Exercise Price | $ 2.30 | |
ALL OPTIONS, Outstanding No. of Options | 374,446 | |
EXERCISABLE OPTIONS, Weighted Average Exercise Price | $ 2.30 | |
EXERCISABLE OPTIONS, Weighted Average Remaining Life In Years | 4 months 28 days | |
EXERCISABLE OPTIONS, Exercisable No. of Options | 374,446 | |
$3.24 to $4.38 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
ALL OPTIONS, Exercise Price Lower Range | $ 3.24 | |
ALL OPTIONS, Exercise Price Upper Range | 4.38 | |
ALL OPTIONS, Weighted Average Exercise Price | $ 3.89 | |
ALL OPTIONS, Outstanding No. of Options | 327,730 | |
EXERCISABLE OPTIONS, Weighted Average Exercise Price | $ 3.87 | |
EXERCISABLE OPTIONS, Weighted Average Remaining Life In Years | 1 year 7 months 6 days | |
EXERCISABLE OPTIONS, Exercisable No. of Options | 275,063 | |
$4.50 to $5.20 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
ALL OPTIONS, Exercise Price Lower Range | $ 4.50 | |
ALL OPTIONS, Exercise Price Upper Range | 5.20 | |
ALL OPTIONS, Weighted Average Exercise Price | $ 4.94 | |
ALL OPTIONS, Outstanding No. of Options | 677,277 | |
EXERCISABLE OPTIONS, Weighted Average Exercise Price | $ 4.94 | |
EXERCISABLE OPTIONS, Weighted Average Remaining Life In Years | 2 years 6 months 14 days | |
EXERCISABLE OPTIONS, Exercisable No. of Options | 226,125 | |
$5.95 to $6.28 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
ALL OPTIONS, Exercise Price Lower Range | $ 5.95 | |
ALL OPTIONS, Exercise Price Upper Range | 6.28 | |
ALL OPTIONS, Weighted Average Exercise Price | $ 6.07 | |
ALL OPTIONS, Outstanding No. of Options | 79,917 | |
EXERCISABLE OPTIONS, Weighted Average Exercise Price | $ 6.07 | |
EXERCISABLE OPTIONS, Weighted Average Remaining Life In Years | 2 years 2 months 12 days | |
EXERCISABLE OPTIONS, Exercisable No. of Options | 26,639 | |
$7.17 to $7.55 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
ALL OPTIONS, Exercise Price Lower Range | $ 7.17 | |
ALL OPTIONS, Exercise Price Upper Range | 7.55 | |
ALL OPTIONS, Weighted Average Exercise Price | $ 7.41 | |
ALL OPTIONS, Outstanding No. of Options | 549,639 | |
EXERCISABLE OPTIONS, Weighted Average Exercise Price | $ 7.32 | |
EXERCISABLE OPTIONS, Weighted Average Remaining Life In Years | 3 years 6 months 29 days | |
EXERCISABLE OPTIONS, Exercisable No. of Options | 223,880 | |
$8.57 to $9.07 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
ALL OPTIONS, Exercise Price Lower Range | $ 8.57 | |
ALL OPTIONS, Exercise Price Upper Range | 9.07 | |
ALL OPTIONS, Weighted Average Exercise Price | $ 8.97 | |
ALL OPTIONS, Outstanding No. of Options | 164,166 | |
EXERCISABLE OPTIONS, Weighted Average Exercise Price | $ 8.97 | |
EXERCISABLE OPTIONS, Weighted Average Remaining Life In Years | 2 years 8 months 8 days | |
EXERCISABLE OPTIONS, Exercisable No. of Options | 54,722 |
Related Party Transactions (Det
Related Party Transactions (Details) - $ / shares | Apr. 30, 2020 | Jan. 22, 2020 | Jul. 19, 2018 |
Related Party Transaction [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.001 | ||
Common stock issued in equity raise (in dollars per share) | $ 7.15 | ||
Common Stock | |||
Related Party Transaction [Line Items] | |||
Treasury stock, common (in shares) | 1,000,000 | ||
Common stock, par value (in dollars per share) | $ 7.40 | ||
Common stock issued in equity raise (in dollars per share) | $ 7.40 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 3,712,994 | |
Refunds due students | 2,371,844 | $ 1,174,501 |
Total revenue earned, deferred revenue | $ 2,500,000 | |
Revenue Benchmark | Non-US | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk (as a percent) | 2.50% | 1.60% |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregated Revenue (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 49,061,080 | $ 34,025,418 |
Tuition | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 43,917,321 | 31,032,677 |
Course Fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,536,639 | 2,488,232 |
Book Fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 80,845 | 106,819 |
Exam Fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 219,015 | 189,090 |
Service Fee | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 307,260 | $ 208,600 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Current: | ||
Federal | $ 0 | $ 0 |
State | 51,820 | 0 |
Total | 51,820 | 0 |
Deferred: | ||
Federal | 0 | 0 |
State | 0 | 0 |
Total | 0 | 0 |
Total Income tax expense (benefit) | $ 51,820 | $ 0 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Tax Assets and Liabilities (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Deferred tax assets: | ||
Net operating loss carryforward | $ 11,044,236 | $ 9,033,235 |
Allowance for doubtful accounts | 629,272 | 181,774 |
Deferred rent | 606,594 | 180,154 |
Stock-based compensation | 439,454 | 954,586 |
Contributions carryforward | 11,275 | 60 |
Intangibles | 86,897 | 0 |
Total deferred tax assets | 12,817,728 | 10,349,809 |
Deferred tax liabilities: | ||
Property and equipment | (417,780) | (234,336) |
Intangibles | 0 | (64,439) |
Total deferred tax liabilities | (417,780) | (298,775) |
Deferred tax assets, net | 12,399,948 | 10,051,034 |
Valuation allowance: | ||
Valuation allowance, beginning of year | (10,051,034) | (7,837,755) |
Increase during period | (2,348,914) | (2,213,279) |
Valuation allowance, ending balance | (12,399,948) | (10,051,034) |
Net deferred tax asset | $ 0 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 |
Income Tax Disclosure [Abstract] | |||
Valuation allowance | $ 12,399,948 | $ 10,051,034 | $ 7,837,755 |
Net operating loss carry forwards | 41,900,000 | ||
Operating loss carryforwards subject to expiration | $ 28,200,000 |
Income Taxes - Schedule of In_2
Income Taxes - Schedule of Income Tax Reconciliation (Details) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Statutory Rate applied to net loss before income taxes | 21.00% | 21.00% |
State income taxes, net of federal tax benefit | 5.30% | 3.60% |
Federal and State Minimum Taxes | (0.90%) | 0.00% |
Permanent Differences | (0.30%) | 0.00% |
Change in Tax Rates - States | 17.30% | 0.00% |
Change in Valuation Allowance | (41.90%) | (23.80%) |
Other | (1.40%) | (0.80%) |
Effective Income Tax Rate | (0.90%) | 0.00% |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2020 | Apr. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Revenues | $ 14,079,193 | $ 12,537,940 | $ 12,085,965 | $ 10,357,982 | $ 10,214,142 | $ 8,494,627 | $ 8,095,344 | $ 7,221,305 | $ 49,061,080 | $ 34,025,418 |
Cost of revenue (exclusive of depreciation and amortization) | 5,431,181 | 5,163,007 | 4,188,056 | 4,353,058 | 4,312,331 | 4,076,980 | 3,835,515 | 3,752,392 | 19,135,302 | 15,977,218 |
Operating loss | (339,790) | (1,728,048) | (331,775) | (1,638,800) | (1,360,067) | (2,421,686) | (2,474,649) | (2,853,324) | (4,038,413) | (9,109,726) |
Loss before income taxes | (673,501) | (2,265,889) | (628,168) | (2,039,687) | (1,609,923) | (2,355,940) | (2,475,078) | (2,837,276) | (5,607,245) | (9,278,217) |
Net loss | $ (664,563) | $ (2,281,052) | $ (638,168) | $ (2,075,282) | $ (1,609,923) | $ (2,355,940) | $ (2,475,078) | $ (2,837,276) | $ (5,659,065) | $ (9,278,217) |
Net loss per share allocable to common stockholders - basic and diluted | $ (0.03) | $ (0.12) | $ (0.03) | $ (0.11) | $ (0.09) | $ (0.13) | $ (0.13) | $ (0.15) | $ (0.29) | $ (0.50) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Jun. 08, 2020 | Jun. 05, 2020 | Jan. 22, 2020 | Mar. 06, 2019 | Mar. 06, 2019 | Jun. 30, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Apr. 30, 2019 | Nov. 08, 2018 | Nov. 05, 2018 |
Subsequent Event [Line Items] | |||||||||||
Stock options exercised (in shares) | 363,334 | 194,276 | |||||||||
Stock issued during period, value, new issues | $ 16,044,879 | ||||||||||
Loan Agreements | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Warrants granted, exercise price (in dollars per share) | $ 6 | ||||||||||
Revolving Credit Facility | Credit Facility Agreement | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Exercise price of warrants (in dollars per share) | $ 5.85 | $ 5.85 | |||||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 92,049 | 92,049 | |||||||||
Cooperman Warrants | Forecast | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Warrant modification and acceleration charge | $ 26,000 | ||||||||||
Cooperman Warrants | Loan Agreements | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Warrants granted, exercise price (in dollars per share) | $ 6 | ||||||||||
Cooperman Warrants | Revolving Credit Facility | Credit Facility Agreement | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Exercise price of warrants (in dollars per share) | $ 5.85 | ||||||||||
Subsequent Event | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Stock issued during period, value, new issues | $ 847,000 | ||||||||||
Common stock issued (in shares) | 136,031 | ||||||||||
Subsequent Event | Employees | Share-based Payment Arrangement, Option | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Stock options exercised (in shares) | 295,091 | ||||||||||
Subsequent Event | Cooperman Warrants | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Decrease in exercise price of common stock purchase warrants | 5.00% | ||||||||||
Proceeds from warrant exercises | $ 1,081,792 | ||||||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 192,049 | ||||||||||
Period to not resister or sell shares | 6 months | ||||||||||
Subsequent Event | Cooperman Warrants | Loan Agreements | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Warrants granted, exercise price (in dollars per share) | $ 5.70 | ||||||||||
Subsequent Event | Cooperman Warrants | Revolving Credit Facility | Credit Facility Agreement | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Exercise price of warrants (in dollars per share) | $ 5.56 |