COVER PAGE
COVER PAGE - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Jul. 22, 2022 | Oct. 29, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Apr. 30, 2022 | ||
Current Fiscal Year End Date | --04-30 | ||
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 Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 112 | ||
Entity Common Stock, Shares Outstanding | 25,202,278 | ||
Documents Incorporated by Reference | Portions of the registrant's proxy statement for the 2022 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 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended |
Apr. 30, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 106 |
Auditor Name | SALBERG & COMPANY, P. |
Auditor Location | Boca Raton, Florida |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Apr. 30, 2022 | Apr. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 6,482,750 | $ 12,472,082 |
Restricted cash | 6,433,397 | 1,193,997 |
Accounts receivable, net of allowance of $3,460,288 and $3,289,816, respectively | 24,359,241 | 16,724,744 |
Prepaid expenses | 1,358,635 | 1,077,831 |
Other current assets | 748,568 | 68,529 |
Total current assets | 39,382,591 | 31,537,183 |
Property and equipment: | ||
Property and equipment, gross | 21,892,480 | 17,548,329 |
Accumulated depreciation and amortization | (8,395,001) | (4,892,987) |
Property and equipment, net | 13,497,479 | 12,655,342 |
Goodwill | 5,011,432 | 5,011,432 |
Accounts receivable, net of allowance of $0, and $625,963, respectively | 0 | 45,329 |
Long-term contractual accounts receivable | 11,406,525 | 10,249,833 |
Deferred financing costs | 369,902 | 18,056 |
Operating lease right-of-use assets, net | 12,645,950 | 12,714,863 |
Deposits and other assets | 578,125 | 479,212 |
Total assets | 91,066,051 | 80,806,906 |
Current liabilities: | ||
Accounts payable | 1,893,287 | 1,466,488 |
Accrued expenses | 2,821,432 | 2,040,896 |
Deferred revenue | 5,889,911 | 6,825,014 |
Due to students | 4,063,811 | 2,747,484 |
Operating lease obligations, current portion | 2,036,570 | 2,029,821 |
Other current liabilities | 130,262 | 307,921 |
Total current liabilities | 16,835,273 | 15,417,624 |
Long-term debt, net | 14,875,735 | 0 |
Operating lease obligations, less current portion | 16,809,319 | 16,298,808 |
Total liabilities | 48,520,327 | 31,716,432 |
Commitments and contingencies - See Note 10 | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 1,000,000 shares authorized, 0 issued and 0 outstanding at April 30, 2022 and April 30, 2021 | 0 | 0 |
Common stock, $0.001 par value; 60,000,000 shares authorized, 25,357,764 issued and 25,202,278 outstanding at April 30, 2022 25,066,297 issued and 24,910,811 outstanding at April 30, 2021 | 25,358 | 25,067 |
Additional paid-in capital | 112,081,564 | 109,040,824 |
Treasury stock (155,486 and 155,486 shares, respectively) | (1,817,414) | (1,817,414) |
Accumulated deficit | (67,743,784) | (58,158,003) |
Total stockholders’ equity | 42,545,724 | 49,090,474 |
Total liabilities and stockholders’ equity | 91,066,051 | 80,806,906 |
Intangible assets, net | ||
Property and equipment: | ||
Intangible assets, net | 7,900,000 | 7,908,360 |
Courseware, net | ||
Property and equipment: | ||
Intangible assets, net | 274,047 | 187,296 |
Computer equipment and hardware | ||
Property and equipment: | ||
Property and equipment, gross | 1,516,475 | 956,463 |
Furniture and fixtures | ||
Property and equipment: | ||
Property and equipment, gross | 2,193,261 | 1,705,101 |
Leasehold Improvements | ||
Property and equipment: | ||
Property and equipment, gross | 7,179,896 | 5,729,324 |
Instructional equipment | ||
Property and equipment: | ||
Property and equipment, gross | 715,652 | 421,039 |
Software | ||
Property and equipment: | ||
Property and equipment, gross | 10,285,096 | 8,488,635 |
Intangible assets, net | 5,114,153 | |
Construction in progress | ||
Property and equipment: | ||
Property and equipment, gross | $ 2,100 | $ 247,767 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Apr. 30, 2022 | Apr. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 3,460,288 | $ 3,289,816 |
Accounts receivable, allowance for credit loss, noncurrent | $ 0 | $ 625,963 |
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 | $ 0.001 |
Common stock, shares authorized (in shares) | 60,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 25,357,764 | 25,066,297 |
Common stock, shares outstanding (in shares) | 25,202,278 | 24,910,811 |
Treasury stock (in shares) | 155,486 | 155,486 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Income Statement [Abstract] | ||
Revenue | $ 76,694,366 | $ 67,812,520 |
Operating expenses: | ||
Cost of revenues (exclusive of depreciation and amortization shown separately below) | 35,259,281 | 29,453,733 |
General and administrative | 45,535,001 | 41,908,030 |
Bad debt expense | 1,500,000 | 2,268,540 |
Depreciation and amortization | 3,370,407 | 2,426,365 |
Total operating expenses | 85,664,689 | 76,056,668 |
Operating loss | (8,970,323) | (8,244,148) |
Other income (expense): | ||
Interest expense | (718,786) | (2,051,381) |
Other income (expense), net | 530,728 | (120,800) |
Total other expense, net | (188,058) | (2,172,181) |
Loss before income taxes | (9,158,381) | (10,416,329) |
Income tax expense | 427,400 | 32,644 |
Net loss | $ (9,585,781) | $ (10,448,973) |
Net loss per share - basic (in dollars per share) | $ (0.38) | $ (0.44) |
Net loss per share - diluted (in dollars per share) | $ (0.38) | $ (0.44) |
Weighted average number of common shares outstanding - basic (in shares) | 25,016,437 | 23,757,656 |
Weighted average number of common shares outstanding - diluted (in shares) | 25,016,437 | 23,757,656 |
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, 2020 | $ 41,747,957 | $ 21,771 | $ 89,505,216 | $ (70,000) | $ (47,709,030) |
Beginning balance (in shares) at Apr. 30, 2020 | 21,770,520 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 3,958,085 | 3,958,085 | |||
Common stock issued for stock options exercised for cash | $ 2,669,247 | $ 1,389 | 4,485,272 | (1,817,414) | |
Common stock issued for stock options exercised for cash (in shares) | 52,778 | 1,389,463 | |||
Common stock issued for cashless exercise of stock options | $ 0 | $ 35 | (35) | ||
Common stock issued for cashless exercise of stock options (in shares) | 34,773 | ||||
Common stock issued for conversion of Convertible Notes (in shares) | 1,398,602 | ||||
Common stock issued for conversion of Convertible Notes | 10,000,000 | $ 1,399 | 9,998,601 | ||
Common stock issued for vested restricted stock units | 0 | $ 296 | (296) | ||
Common stock issued for vested restricted stock units (in shares) | 295,557 | ||||
Common stock issued for warrants exercised for cash | 1,081,792 | $ 192 | 1,081,600 | ||
Common stock issued for warrants exercised for cash (in shares) | 192,049 | ||||
Common stock issued for services | 19,900 | $ 2 | 19,898 | ||
Common stock issued for services (in shares) | 2,000 | ||||
Modification charge for warrants exercised | 25,966 | 25,966 | |||
Amortization of warrant-based cost issued for services | 36,500 | 36,500 | |||
Cancellation of treasury stock | 0 | $ (17) | (69,983) | 70,000 | |
Cancellation of treasury stock (in shares) | (16,667) | ||||
Net loss | (10,448,973) | (10,448,973) | |||
Ending balance at Apr. 30, 2021 | $ 49,090,474 | $ 25,067 | 109,040,824 | (1,817,414) | (58,158,003) |
Ending balance (in shares) at Apr. 30, 2021 | 24,910,811 | 25,066,297 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | $ 2,534,665 | 2,534,665 | |||
Common stock issued for stock options exercised for cash | $ 191,034 | $ 58 | 190,976 | ||
Common stock issued for stock options exercised for cash (in shares) | 200,000 | 58,419 | |||
Common stock issued for cashless exercise of stock options | $ 0 | $ 30 | (30) | ||
Common stock issued for cashless exercise of stock options (in shares) | 30,156 | ||||
Common stock issued for vested restricted stock units | 0 | $ 86 | (86) | ||
Common stock issued for vested restricted stock units (in shares) | 85,576 | ||||
Common stock issued for warrants exercised for cash | 0 | ||||
Common stock issued for warrants exercised for cash (in shares) | 0 | ||||
Common stock issued for services | 0 | $ 117 | (117) | ||
Warrants issued as a fee for line of credit agreement | 255,500 | 255,500 | |||
Amortization of warrant-based cost issued for services | 59,832 | 59,832 | |||
Net loss | (9,585,781) | (9,585,781) | |||
Ending balance at Apr. 30, 2022 | $ 42,545,724 | $ 25,358 | $ 112,081,564 | $ (1,817,414) | $ (67,743,784) |
Ending balance (in shares) at Apr. 30, 2022 | 25,202,278 | 25,357,764 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (9,585,781) | $ (10,448,973) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Bad debt expense | 1,500,000 | 2,268,540 |
Depreciation and amortization | 3,370,407 | 2,426,365 |
Stock-based compensation | 2,534,665 | 3,958,085 |
Amortization of warrant-based cost | 59,832 | 36,500 |
Amortization of deferred financing costs | 103,454 | 164,362 |
Amortization of debt discounts | 11,297 | 1,550,854 |
Loss on asset disposition | 36,443 | 0 |
Non-cash lease benefit | (230,416) | (27,796) |
Tenant improvement allowances received from landlords | 816,591 | 4,685,826 |
Modification charge for warrants exercised | 0 | 25,966 |
Common stock issued for services | 0 | 19,900 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (9,203,042) | (8,215,190) |
Prepaid expenses | (280,804) | (136,160) |
Other receivables | 0 | 23,097 |
Other current assets | (680,039) | 104,561 |
Accounts receivable, secured | 45,329 | 0 |
Deposits and other assets | (98,913) | (164,341) |
Accounts payable | 426,799 | (39,371) |
Accrued expenses | 780,536 | 1,140,253 |
Due to students | 858,010 | 375,640 |
Deferred revenue | (1,564,934) | 3,112,020 |
Other current liabilities | (177,659) | 125,440 |
Net cash (used in) provided by operating activities | (11,278,225) | 985,578 |
Cash flows from investing activities: | ||
Purchase of finite life intangible assets | 0 | (8,500) |
Purchases of courseware and accreditation | (167,061) | (120,408) |
Purchases of property and equipment | (4,160,318) | (8,848,395) |
Net cash used in investing activities | (4,327,379) | (8,977,303) |
Cash flows from financing activities: | ||
Proceeds from drawdown on Credit Facility | 5,000,000 | 0 |
Proceeds from 2022 Convertible Notes | 10,000,000 | 0 |
Payments of deferred financing costs | (335,362) | 0 |
Proceeds from warrants exercised | 0 | 1,081,792 |
Proceeds from stock options exercised | 191,034 | 2,669,247 |
Net cash provided by financing activities | 14,855,672 | 3,751,039 |
Net decrease in cash and cash equivalents | (749,932) | (4,240,686) |
Cash, cash equivalents and restricted cash at beginning of year | 13,666,079 | 17,906,765 |
Cash, cash equivalents and restricted cash at end of year | 12,916,147 | 13,666,079 |
Supplemental disclosure cash flow information: | ||
Cash paid for interest | 470,895 | 310,958 |
Cash paid for income taxes | 27,400 | 57,208 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Warrants issued as part of the 2018 Credit facility amendment | 137,500 | 0 |
Warrants issued for Intercreditor Agreement Amendment | 118,000 | 0 |
Common stock issued for conversion of Convertible Notes | $ 0 | $ 10,000,000 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) | Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 |
Statement of Cash Flows [Abstract] | |||
Cash and cash equivalents | $ 6,482,750 | $ 12,472,082 | |
Restricted cash | 6,433,397 | 1,193,997 | |
Total cash and cash equivalents and restricted cash | $ 12,916,147 | $ 13,666,079 | $ 17,906,765 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Apr. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Overview Aspen Group, Inc. ("AGI") is an education technology holding company. AGI has two subsidiaries, Aspen University Inc. ("Aspen University" or "AU") organized in 1987, and United States University Inc. ("United States University" or "USU"). 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. Since 1993, Aspen University has been nationally accredited by the Distance Education Accrediting Council (“DEAC”), an institutional accrediting agency recognized by the United States Department of Education (the “DOE”), through January 2024. Since 2009, USU has been institutionally 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. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2022 | |
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, the valuation of lease liabilities and the carrying value of the related right-of-use assets ("ROU assets"), depreciable lives of property and equipment, amortization periods and valuation of courseware, intangibles and software development costs, 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. Restricted cash as of April 30, 2022, of $6,433,397 consists of $5 million, which is collateral for an approximately $18.3 million surety bond required by the Arizona State Board for Postsecondary Education, $1,173,525, which is collateral for letters of credit for the Aspen University and USU facility operating leases, $9,872 which is collateral for a letter of credit for USU required to be posted based on the level of Title IV funding in connection with USU's most recent Compliance Audit, and a $250,000 compensating balance under a secured credit line. Restricted cash as of April 30, 2021, of $1,193,997 consisted of $934,125 which is collateral for letters of credit for the Aspen University and USU facility operating leases, $9,872, which is collateral for a letter of credit for USU required to be posted based on the level of Title IV funding in connection with USU's most recent Compliance Audit, and a $250,000 compensating balance under a secured credit line. 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, 2022. As of April 30, 2022 and 2021, the Company maintained deposits exceeding federally insured limits by $7,749,715 and $13,005,537, respectively, held in two separate institutions. Goodwill and Intangibles The Company assesses goodwill on its one reporting unit and indefinite-lived intangible assets for impairment annually as of April 30, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit or the fair value of an indefinite-lived intangible asset below its carrying value. Goodwill currently represents the excess of purchase price over the fair market value of assets acquired and liabilities assumed from the 2017 acquisition of USU. Goodwill has an indefinite life and is not amortized. In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 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. We have selected an April 30 annual goodwill impairment test date. When evaluating the potential impairment of goodwill, management first assess a range of qualitative factors, including but not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company’s products and services, regulatory and political developments, entity specific factors such as strategy and changes in key personnel, and the overall financial performance for each of the Company’s reporting units. If, after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we then proceed to the quantitative impairment testing. We compare the carrying value of the reporting unit, including goodwill, with its fair value, as determined. If the carrying value of a reporting unit exceeds its fair value, then the amount of impairment to be recognized is the amount by which the carrying amount exceeds the fair value. When required, we arrive at our estimates of fair value using a discounted cash flow methodology which includes estimates of future cash flows to be generated by a component where the goodwill is recorded, as well as determining a discount rate to measure the present value of those anticipated cash flows. Estimating future cash flows requires significant judgment and includes making assumptions about projected growth rates, industry-specific factors, working capital requirements, weighted average cost of capital, and current and anticipated operating conditions. The use of different assumptions or estimates for future cash flows could produce different results. Intangible assets represent both indefinite-lived and definite-lived assets. Acquired 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 and Fair Value of Financial Instruments 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. The Company’s non-financial assets, such as goodwill, intangible assets, ROU assets, and property and equipment, are adjusted to fair value only when an impairment is recognized. Such fair value measurements are based predominantly on Level 3 inputs . 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. The monthly payment plan represents the majority of the payments that are made by AGI's total active students, making it the most common payment type. In instances where a student selects financial aid as the primary payment option, the student often selects personal cash as the secondary option. If a student who has selected financial aid as the student's 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 the student's 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 and payors other than students, AGI records an allowance for doubtful accounts for estimated losses resulting from the inability, failure or refusal of its students or other payors 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 estimates the amounts to adjust the allowance based upon the risk presented by the age of the receivables, student status, payment type, program and estimate of new revenue. 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. 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 until revenue is earned 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 contractual accounts receivable. At April 30, 2022 and 2021, those balances are $11,406,525 and $10,249,833, respectively. The Company has determined that the long-term contractual 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 and amortization. Repairs and maintenance costs are expensed in the period incurred. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the related assets, or, in the case of leasehold improvements, the lease term, if shorter. Category Useful Life Computer equipment and hardware 3 years Software 5 years Instructional equipment 5 years Furniture and fixtures 7 years Leasehold Improvements The lesser of 8 years or 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. Amortization 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. The Company has construction in progress which includes property and equipment amounts for new campuses. These assets are not depreciated until they are completed and reclassified to the appropriate category within property and equipment. Upon the retirement or disposition of property and equipment, the related cost and accumulated depreciation or amortization 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 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, which consist of ROU assets, property and equipment, and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The carrying value 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. If the carrying value is deemed not to be recoverable, an impairment loss is recorded equal to the amount by which the carrying value of the long-lived asset exceeds its fair value. Amortization of definite-lived intangible assets is computed either on a straight-line basis or based on the pattern in which the economic benefits of the asset will be realized. Due to 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 payment for the remaining balances to the students. Leases The Company accounts for leases in accordance with FASB issued ASU No. 2016-2, Leases (Topic 842). 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 financing 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. Lease incentives received are deducted from the ROU assets and classified as leasehold improvements. The asset reduction due to incentives is classified within cash flows from operations. The corresponding leasehold improvement is amortized over the life of the lease term and classified within cash flows from investing activities. Disclosures related to the amount, timing, and uncertainty of cash flows arising from leases are included in Note 12. Leases. 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 The Company follows 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. Revenue consists primarily of tuition and course fees derived from courses taught by the Company online and in-person as well as from related educational resources and services that the Company provides to its students. Under ASC 606, tuition and course fee 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. Students may receive discounts, scholarships, or refunds, which gives rise to variable consideration. Discounts and scholarships are applied to individual student accounts when such amounts are awarded. Therefore, the tuition is reduced directly by these discounts or scholarships from the amount of the standard tuition rate charged. The Company's disaggregated revenue disclosures are presented in Note 13. Revenue. Deferred revenue, a contract liability, represents the amount of tuition, fees, and other student payments received in excess of the portion recognized as revenue and it is included in current liabilities in the accompanying consolidated balance sheets. Other revenue may be recognized as sales occur or services are performed. Cost of Revenue Cost of revenue 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 and in-person faculty, technology license costs and costs associated with other support groups that provide services directly to the students and are included in cost of revenue. Total instructional costs and services were $19,463,085 and $15,275,131 for the years ended April 30, 2022 and 2021, respectively, and are included in cost of revenue. 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. The Company's marketing generally consists of non-direct response advertising activities and 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 $15,796,196 and $14,178,602 for the years ended April 30, 2022 and 2021, respectively, and are included in cost of revenue. 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 Taxes 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. 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, which is included in general and administrative expense in the consolidated statement of operations. For employee stock option 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 option 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 option based awards represent the Company's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. Stock option based awards are expensed as stock-based compensation over the vesting term, which is included in general and administrative expense in the consolidated statement of operations. For non-employee stock option based awards, the Company follows ASU 2018-7, which substantially aligns share based compensation for employees and non-employees. Restricted stock units ("RSUs") are awards in the form of shares denominated in the equivalent number of shares of AGI common stock. RSU awards may be subject to service-based vesting, where a specific period of continued employment must pass before an award vests and/or other vesting restrictions based on the nature and recipient of the award. For RSU awards, the expense is typically measured at the grant date as the fair value of AGI common stock and expensed as stock-based compensation over the vesting term, which is included in general and administrative expense in the consolidated statement of operations. Net Loss Per Share Net loss per share is based on the weighted average number of shares of common stock outstanding during each period. Options, warrants, RSUs and unvested restricted stock are not included in the computation of diluted net loss per share because the effects would have been anti-dilutive. These common stock equivalents and any others such as convertible debt are only included in the calculation of diluted earnings per share of common stock when their effect is dilutive. All shares mentioned above were not included in the computation of diluted net loss per share because the effects would have been anti-dilutive. The options, warrants, RSUs, unvested restricted stock (see Note 11. Stockholders’ Equity) and Convertible Notes (convertible into 10 million shares of common stock as of April 30, 2022) are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share of common stock when their effect is dilutive. Additionally, $10 million of Convertible Notes automatically converted into 1,398,602 shares of common stock in the second quarter of fiscal year 2021. See Note 11. Stockholders' Equity. 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, Chief Operating Officer and Chief Academic Officer, manage the Company's operations as a whole. Recent Accounting Pronouncements Recent Accounting Pronouncement Adopted In August 2020, the FASB issued ASU No. 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40), to simplify accounting for certain financial instruments. ASU No. 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU No. 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU No. 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company adopted ASU No. 2020-06 effective January 1, 2021. The adoption of ASU No. 2020-06 did not have an impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which significantly changes how entities will measure credit losses for most financial assets, including accounts receivable. ASU No. 2016-13 will replace today’s “incurred loss” approach with an “expected loss” model, under which companies will recognize allowances based on expected rather than incurred losses. On November 15, 2019, the FASB delayed the effective date of Topic 326 for certain small public companies and other private companies until fiscal years beginning after December 15, 2022 for SEC filers that are eligible to be smaller reporting companies under the SEC’s definition, as well as private companies and not-for-profit entities. The Company is currently evaluating the new guidance and has not yet determined whether the adoption of the new standard will have a material impact on its consolidated financial statements or the method of adoption. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures . The guidance was issued as improvements to ASU No. 2016-13 described above. The vintage disclosure changes require an entity to disclose current-period gross write-offs by year of origination for financing receivables. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The amendments should be applied prospectively. Early adoption of the amendments is permitted, including adoption in an interim period. The amendments will impact our disclosures but will not otherwise impact the consolidated financial statements. The Company is currently evaluating the new guidance. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. The Company has concluded that based on industry practices, the preferred presentation for cash received in advance for unearned tuition and stipends should be reclassified from "restricted cash" to "cash and cash equivalents." The cash balance of $3,958,793 for funds held for students for unbilled educational services that were received from Title IV and non-Title IV programs at April 30, 2021, which was previously included in "restricted cash" in the accompanying consolidated balance sheet, was reclassified to "cash and cash equivalents" to align with the current year presentation. There is no impact to total current assets included in the accompanying consolidated balance sheet at April 30, 2021. The restricted cash balance at April 30, 2021, now includes collateral for letters of credit and a compensating balance arrangement under a secured credit line of $1,193,997. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Apr. 30, 2022 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable consisted of the following at April 30, 2022 and 2021: April 30, 2022 2021 Total accounts receivable, gross $ 39,226,054 $ 30,264,393 Long-term contractual accounts receivable (11,406,525) (10,249,833) Accounts receivable, gross 27,819,529 20,014,560 Less: allowance for doubtful accounts (3,460,288) (3,289,816) Accounts receivable, net $ 24,359,241 $ 16,724,744 Bad debt expense for the years ended April 30, 2022 and 2021, was $1,500,000 and $2,268,540, respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Apr. 30, 2022 | |
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. When assets are disposed of before reaching the end of their useful lives, both the recorded cost of the fixed asset and the corresponding amount of accumulated depreciation is reversed. Any remaining difference between the two is recognized as either other income or expense. Property and equipment consisted of the following: April 30, 2022 2021 Computer equipment and hardware $ 1,516,475 $ 956,463 Furniture and fixtures 2,193,261 1,705,101 Leasehold improvements 7,179,896 5,729,324 Instructional equipment 715,652 421,039 Software 10,285,096 8,488,635 Construction in progress 2,100 247,767 21,892,480 17,548,329 Accumulated depreciation and amortization (8,395,001) (4,892,987) Property and equipment, net $ 13,497,479 $ 12,655,342 Software consisted of the following: April 30, 2022 2021 Software $ 10,285,096 $ 8,488,635 Accumulated amortization (5,170,943) (3,444,325) Software, net $ 5,114,153 $ 5,044,310 Depreciation and amortization expense for property and equipment and software is summarized below: Years Ended April 30, 2022 2021 Depreciation and amortization expense: Property and equipment, excluding software $ 1,555,119 $ 975,900 Software amortization expense $ 1,726,618 $ 1,405,756 The following is a schedule of estimated future amortization expense of software at April 30, 2022 (by fiscal year): Future Expense 2023 $ 1,763,621 2024 1,473,045 2025 1,070,781 2026 610,861 2027 195,845 Total $ 5,114,153 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Apr. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets In connection with the acquisition of the USU business on December 1, 2017, the amount paid over the estimated fair values of the identifiable net assets was $5,011,432, which is in included in "Goodwill" in the consolidated balance sheet. 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 acquired accreditation and regulatory approvals and the trade name and trademarks, of $7.9 million, as we believe 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 |
Courseware and Accreditation
Courseware and Accreditation | 12 Months Ended |
Apr. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Courseware and Accreditation | Courseware and Accreditation As courseware and accreditation reach the end of their useful life, they are written off against the accumulated amortization. There is no expense impact for such write-offs for the years ended April 30, 2022 and 2021. Courseware and accreditation consisted of the following: April 30, 2022 2021 Courseware $ 575,283 $ 408,222 Accreditation 59,350 59,350 634,633 467,572 Accumulated amortization (360,586) (280,276) Courseware and accreditation, net $ 274,047 $ 187,296 Amortization expense of courseware and accreditation is as follows: Years Ended April 30, 2022 2021 Courseware and accreditation amortization expense $ 80,310 $ 44,709 Amortization expense is included in "Depreciation and amortization" in the accompanying consolidated statements of operations. The following is a schedule of estimated future amortization expense of courseware and accreditation at April 30, 2022 (by fiscal year): Future Expense 2023 $ 83,690 2024 70,142 2025 59,054 2026 52,579 2027 8,582 Total $ 274,047 |
Secured Note and Accounts Recei
Secured Note and Accounts Receivable | 12 Months Ended |
Apr. 30, 2022 | |
Due from Related Parties, Unclassified [Abstract] | |
Secured Note and Accounts Receivable | Secured Note and Accounts ReceivableOn 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. As discussed in Note 10. Commitments and Contingencies, the Company and Aspen University sued HEMG seeking to recover sums due under the agreements. Ultimately, the Company and Aspen University obtained a favorable default judgment, and as a result received a distribution from the bankruptcy trustee court of $498,120, which was included in "other (expense) income, net" in the consolidated statements of operations during the year ended April 30, 2022. Due to the bankruptcy of HEMG, the Company also wrote off a net receivable of $45,329 in the same period. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Apr. 30, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses April 30, 2022 2021 Accrued compensation $ 1,353,757 $ 1,244,261 Accrued foreign taxes 400,000 — Accrued marketing 387,588 437,642 Accrued professional fees 371,703 70,151 Accrued interest 49,315 23,014 Other accrued expenses 259,069 265,828 Accrued expenses $ 2,821,432 $ 2,040,896 |
Long-term Debt, Net
Long-term Debt, Net | 12 Months Ended |
Apr. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt, Net | Long-term Debt, Net April 30, 2022 2021 Credit Facility due March 14, 2023 (the "2022 Revolving Credit Facility") $ — $ — Credit Facility due November 4, 2023 (the "2018 Credit Facility"); interest payable monthly in arrears 5,000,000 — 12% Convertible Notes due March 14, 2027 (the "2022 Convertible Notes"); interest payable monthly in arrears 10,000,000 — Total long-term debt 15,000,000 — Less: Unamortized deferred financing costs 124,265 — Total long-term debt, net $ 14,875,735 $ — 2022 Convertible Notes On March 14, 2022, the Company issued $10 million in principal convertible notes (the "2022 Convertible Notes") to two unaffiliated lenders in exchange for $5 million notes to each of the two unaffiliated lenders. The proceeds are used for general corporate purposes, including funding the Company’s expansion of its BSN Pre-Licensure nursing degree program. The key terms of the Convertible Notes are as follows: • At any time after issuance date, the lenders had the right to convert the principal into our shares of the Company’s common stock at a conversion price of $1.00 per share; • The Convertible Notes automatically convert at $1.00 per share into shares of the Company’s common stock if the average closing price of our common stock is at least $2.00 over a 30 consecutive trading day period. This mandatory conversion is subject to each lender’s 9.9% beneficial ownership limitation and is also subject to the Nasdaq combined 19.99% requirement which generally provides that a listed issuer may not issue 20% or more of its outstanding common stock or voting power in a non-public offering at below a minimum price unless the Company’s stockholders first approve such issuance; • The Convertible Notes are due March 14, 2027 or approximately five years from the closing; • The interest rate of the Convertible Notes is 12% per annum (payable monthly in arrears); and • The Convertible Notes are secured by a first priority lien in all current and future accounts receivable of the Company’s subsidiaries, certain of the deposit accounts of the Company and its subsidiaries and a pledge of the common stock of the Company held by its Chief Executive Officer (the “2022 Collateral”). At closing of the 2022 Convertible Notes, the Company agreed to pay each lender's legal fees arising from this transaction of $135,562, which has been recorded as a deferred financing cost debt discount and is being amortized in the accompanying consolidated financial statements. 2022 Revolving Credit Facility On March 14, 2022, the Company entered into Revolving Promissory Note and Security Agreements (the "2022 Revolver Agreements") with the same two unaffiliated lenders (the "Lenders") of the 2022 Convertible Notes for a one-year, $20 million secured revolving line of credit that requires monthly interest payments on sums borrowed at the rate of 12% per annum (the "2022 Revolving Credit Facility"). At April 30, 2022, there were no outstanding borrowings under the 2022 Revolving Credit Facility. The Company paid a 1% commitment fee of $200,000 at closing, which was recorded as a deferred financing cost, non-current asset, and is being amortized over the term of the loan of one-year, and if the revolving credit facility has not been replaced in six months of the closing date, it must pay another 1% commitment fee. Pursuant to the 2022 Convertible Notes and the 2022 Revolving Credit Facility (the "Notes"), all future indebtedness incurred by the Company, other than indebtedness expressly permitted by the Notes, will be subordinated to the Notes and the Prior Credit Facility, as defined below, with an exception for acquisitions of software and equipment under purchase money agreements and capital leases. The Company’s obligations under the 2022 Revolver Agreements are secured by a first priority lien in the same 2022 Collateral as described above under "2022 Convertible Notes." On March 14, 2022, in connection with the issuance of the Notes, the Company also entered into an intercreditor agreement (the “Intercreditor Agreement”) among the Company, the Lenders and the lender under a prior credit facility dated November 5, 2018 (as amended, the “2018 Credit Facility”). The Intercreditor Agreement provides among other things that the Company's obligations under, and the security interests in the Collateral granted pursuant to, the Note and the 2018 Credit Facility shall rank pari passu to one another. In connection with the issuance of the Notes, the Company also entered into an Investors/Registration Rights Agreement with the Lenders (the “Registration Rights Agreement”) whereby, upon request of either Lender on or after August 15, 2022 the Company must file and obtain and maintain the effectiveness of a registration statement registering the shares of common stock issued or issuable upon conversion of the Convertible Notes. On March 14, 2022, the Company entered into an amendment with the lender pursuant to the 2018 Credit Facility to extend the maturity date of the 2018 Credit Facility by one year to November 4, 2023. On March 14, 2022, the Company entered into a letter agreement with the Lenders (the “Letter Agreement”). Pursuant to the Letter Agreement, the Company and its subsidiaries made certain representations and warranties to the Lenders. The Letter Agreement also contained certain conditions precedent to the closing of the transactions. On April 22, 2022, the Company entered into an agreement with an insurance company which issued an approximately $18.3 million surety bond which was required by the Arizona State Board for Private Postsecondary Education. In order to cause the insurance company to deliver the surety bond, the Company entered into a First Amendment to the Intercreditor Agreement with the two lenders of the March 14, 2022 financing arrangements to amend the Intercreditor Agreement entered into by the same parties on March 14, 2022 (the “Amendment”). The Amendment provides that the Company and each of the lenders, at all times prior to the delivery of the Termination Certificate (as defined below), but for funding as directed by the surety bond as described more fully below, (i) the Company shall not be permitted to make any draw request or borrow any funds under the 2022 Revolver Agreements and (ii) the lenders shall not be required to fund any loan or advance any funds under the 2022 Revolver Agreements. Upon that certain surety bond ceasing to be outstanding, the Company shall deliver to the lenders a certificate (such certificate, the “Termination Certificate”), certifying that the surety bond is no longer outstanding and that there are no further obligations in respect of the surety bond owing by the Company to the insurance company. Prior to issuance of the Termination Certificate and during the time the surety bond is in effect, the insurance company may cause the Company to draw on funds for the express purposes of resolving claims filed under the surety bond. In addition to the draw restriction on the 2022 Revolver Agreements, the insurance company required the Company to restrict $5 million of cash. As consideration for the lenders agreeing to enter into the Amendment, the Company agreed to issue each lender 100,000 five-year warrants exercisable at $1.00 per share. The fair value of the warrants is $118,000 and is being amortized over the 60-month term. The fair value of the warrants are treated as deferred financing costs, a non-current asset, in the accompanying consolidated balance sheets at April 30, 2022. Total unamortized costs at April 30, 2022 were $118,000. See Note 11. Stockholders’ Equity for additional information related to these warrants. 2020 Convertible Notes On January 22, 2020, the Company issued $5 million in principal amount convertible notes (the “2020 Convertible Notes”) to each of two lenders in exchange for the two $5 million notes issued under senior secured term loans entered into in March 2019 as discussed below (the “Term Loans”). The Company recorded a beneficial conversion feature on these Convertible Notes of $1,692,309. On September 14, 2020, after the closing price of our common stock was at least $10.725 over a 20 consecutive trading day period the Convertible Notes automatically converted into 1,398,602 shares of the Company’s common stock at a conversion price of $7.15 per share. (See Note 11. Stockholders' Equity) The accelerated amortization charge related to unamortized debt discounts as a result of the debt extinguishment in the second quarter of fiscal year 2021 was approximately $1.4 million, which was included in interest expense in the consolidated statement of operations. The Company did not recognize any gains or losses as a result of this conversion. 2018 Credit Facility On November 5, 2018, the Company entered into the 2018 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 "2018 Credit Facility") evidenced by a revolving promissory note (the “Revolving Note”). Borrowings under the 2018 Credit Facility Agreement bear interest at 12% per annum. Interest payments are due monthly through the term of the 2018 Credit Facility. On August 31, 2021, the Company extended the 2018 Credit Facility Agreement with the Foundation by one year from November 4, 2021 to November 4, 2022. In conjunction with the extension of the 2018 Credit Facility, the Company drew down funds of $5,000,000. At April 30, 2022 and 2021, there were $5,000,000 and no outstanding borrowings, respectively, under the 2018 Credit Facility. Additionally, on August 31, 2021, the Company issued to the Foundation warrants, as an extension fee, to purchase 50,000 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. The fair value of the warrants is $137,500 and is being amortized to interest expense through the maturity date of November 4, 2023, as extended on March 14, 2022. On March 14, 2022, the Company extended its existing $5 million Credit Facility by one year to November 4, 2023 at an increased interest rate from 12% to 14% per annum. The fair value of the warrants are treated as deferred financing costs, a non-current asset, in the accompanying consolidated balance sheets at April 30, 2022 to be amortized over the term of the 2018 Credit Facility. Total unamortized costs at April 30, 2022 were $68,569. See Note 11. Stockholders’ Equity for additional information related to these warrants. The 2018 Credit Facility Agreement contains customary representations and warranties and events of default. 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 2018 Credit Facility Agreement and the Revolving Note, will be subordinated to the Facility. On March 6, 2019, 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 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2022 | |
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, the Company may be involved in litigation relating to claims arising out of its operations in the normal course of business. As of the date of this Report, except as discussed below, we are not aware of any 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 April 6, 2022, Aspen was served with a class action claim in Arizona Superior Court, alleging violations of the Arizona Consumer Fraud Act and Unjust Enrichment, based on the class representative’s claims that Aspen misstated the quality of its pre-licensure nursing program. This complaint was likely in response to the Arizona Board of Nursing actions against Aspen relating to the program, as outlined below. At this time, the only action taken by Aspen was to file for change of venue which was granted. The size of the potential class is not yet known. On February 11, 2013, 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 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. 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 July 21, 2021, the bankruptcy trustee paid the Company $498,120 based on assets available in the trust, which is included in "other income (expense), net" in the accompanying consolidated statements of operations. As a result, the Company wrote off the net receivable of $45,329 against the payment received as settlement in the first quarter of fiscal year 2022 and recognized a gain, which is described in Note 7. Secured Note and Accounts Receivable. No further assets are available for distribution. At some point, the New York state court litigation may resume. 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. On April 16, 2021, the DOE granted provisional certification for a two-year timeframe, and set a subsequent program participation reapplication date of September 30, 2023. On May 14, 2019, USU was granted temporary provisional certification to participate in the Title IV Programs due to its acquisition by the Company. The provisional certification allowed the school to continue to receive Title IV funding as it did prior to the change of ownership. The provisional certification expired on December 31, 2020. The institution submitted its recertification application timely in October 2020, and received full certification on May 6, 2022, and a new PPA was issued with an effective period until December 31, 2025. 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. The Company is also subject to regulation by self-regulatory bodies such as accreditors and by state regulators in certain states including states where the Company has a physical presence. Aspen University’s first-time pass rates for our BSN pre-licensure students taking the NCLEX-RN test in Arizona fell from 80% in 2020 to 58% in 2021, which is below the minimum 80% standard set by the Arizona Board of Nursing. As a result of the decline in NCLEX pass rates and other issues, and in alignment with a recommendation from the Arizona State Board of Nursing, the university voluntarily suspended BSN pre-licensure enrollments and the formation of new cohorts at its two Phoenix pre-licensure locations, effective February 2022. In March 2022, Aspen University entered into a Consent Agreement for Probation and a Civil Penalty (the “Consent Agreement”) with the Arizona State Board of Nursing in which Aspen University’s Provisional Approval was revoked, with the revocation stayed pending Aspen University’s compliance with the terms and conditions of the Consent Agreement. The probationary period is 36 months from the date of the Consent Agreement. In June 2022, the AZ BON granted approval of Aspen University’s request for provisional approval as long as the program is in compliance with the consent agreement through March 31, 2025. The stay is broken into two phases, the first lasting through the end of Calendar Year 2022. During Phase I, Aspen University is not permitted to enroll any new students into the core component of its pre-licensure nursing program in Arizona, and must achieve the AZ BON-required 80% NCLEX pass rate for the Calendar Year 2022 annual reporting cycle. If this benchmark is not achieved, the AZ BON may lift the stay and initiate the revocation. If Phase I is completed successfully, Phase II will commence with Aspen on Probation (regular or “stayed revocation” probation, depending on the outcome of Phase I). Aspen is permitted to begin enrollments into the core component of its pre-licensure nursing program in Arizona once four consecutive quarters of 80% NCLEX first-time pass rates occur. However, once achieved, if the NCLEX pass rate falls below 80% for any quarter, the AZ BON may limit enrollments, and repeated failures may result in a required cessation of enrollments and teach-out of the program. The terms of the Consent Agreement also include requirements that we provide the AZ BON with monthly reports, provide that our faculty and administrators undergo additional training, retain an approved consultant to prepare and submit evaluations to the AZ BON, and hire a minimum of 35% full-time qualified faculty by September 30, 2022. To date, Aspen has provided the required reports to the AZ BON timely, contracted for and held the required faculty and administrator trainings, and hired and begun working with the AZ BON-approved consultant whose report to the AZ BON is due August 30, 2022. Aspen continues to work towards the 35% full-time faculty requirement (currently at 31%) and has hired a recruiting firm to assist in that endeavor. Aspen University is not currently enrolling students in the BSN Pre-licensure program in Arizona. Aspen University has also entered into a Stipulated Agreement with the Arizona State Board for Private Postsecondary Education which required the University to post a surety bond for $18.3 million in the fourth quarter of fiscal year 2022. The Stipulated Agreement required the cessation of enrollment in both the pre-professional nursing and core components of the program in Arizona, the submission of student records monthly, the removal of Arizona start date information from websites and catalogs, and monthly reporting to the Board staff. The collateral for this surety bond of $5 million is included in "Restricted cash" in the consolidated balance sheets. Aspen University’s NC-SARA annual approval through the Colorado SARA State Portal Entity has to be renewed by January 30 each year. Aspen applied on January 18, 2022, and received its 2022 approval effective February 8, 2022. On February 23, 2022, Aspen received a Notification of Provisional SARA Status from the Colorado SARA State Portal Entity. On March 4, 2022, the DOE provided the final approval for Aspen’s move from Colorado to Arizona. On March 29, 2022, Aspen received a Notification of Loss of Eligibility for SARA through Colorado which permitted continued SARA coverage for students enrolled for courses between February 1 and August 2. On April 10, 2022, Aspen submitted an official appeal of the eligibility loss to the Colorado SARA State Portal Entity. We sought a return to the prior provisional status while the appeal was pending or until the completion of the existing SARA term to February 2023 or until there was approval by the Arizona SARA Council. On April 12, 2022, Aspen was restored to Provisional Status by the Colorado SARA State Portal Entity according to the terms of the February 23, 2022, letter. On May 17, 2022, Aspen was informed that our appeal was denied and on June 10, 2022, we received a letter from the Colorado SARA State Portal Entry indicating that students currently enrolled in academic terms in progress as of May 17, 2022, are covered under SARA for 16 weeks, until September 6, 2022. In the meantime, Aspen University submitted an application to the Arizona State Portal Entry and was notified that it will be on the Arizona SARA Council agenda on September 8, 2022 to obtain approval to become an institutional participant again in NC-SARA from its new primary location in Arizona. Since February 2022, the start of the regulatory concerns over SARA approval, Aspen has been seeking individual state authorizations for its students, The institution is currently authorized in 30 states, and is in the development process with 20 states and the District of Columbia. Approximately 73% of our current student body reside in the currently authorized states. Title IV Funding Aspen University and United States University derive a portion of their revenue from financial aid received by its students under programs authorized by Title IV of the HEA, which is administered by the US Department of Education. When students seek funding from the federal government, they receive loans and grants to fund their education under the following Title IV Programs: (1) the Federal Direct Loan program, or Direct Loan; (2) the Federal Pell Grant program, or Pell; (3) Federal Work Study and (4) Federal Supplemental Opportunity Grants. For the fiscal year ended April 30, 2021, 44.72% of Aspen University’s and 33.81% for United States University's cash-basis revenue for eligible tuition and fees were derived from Title IV Programs. 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 had a material finding related to the same issue and was required to maintain a letter of credit in the amount of $71,634 as a result of this finding. The letter of credit was provided to the DOE by AGI since it assumed this obligation in its purchase of USU. This letter of credit expired in early 2021 and the cash was returned to the Company. On September 28, 2020, the DOE notified USU that the funds held for a letter of credit in the amount of $255,708, based on the audited same day balance sheet requirements that apply in a change of control, which was funded by the University’s sole shareholder, AGI, were released. In August 2020, the DOE informed USU that it is required to post a new letter of credit in the amount of $379,345, based on the current level of Title IV funding. This irrevocable letter of credit was to expire on August 25, 2021. In December 2020, the DOE reduced USU's existing letter of credit by $369,473. In connection with USU's most recent Compliance Audit, USU maintains a letter of credit of $9,872 at April 30, 2022. As noted above, with the recent full certification of USU, we are working with the DOE to release the remaining LOC. Approval to Confer Degrees Aspen University is a Delaware corporation and is approved to operate in the State of Delaware. Aspen University is authorized by the Arizona State Board for Private Postsecondary Education in the State of Arizona to operate as a degree granting institution for all degrees. Aspen University is authorized to operate as a degree granting institution for bachelor degrees by the Texas Higher Education Coordinating Board in the State of Texas. Aspen University has been granted Optional Expedited Authorization as a postsecondary educational institution in Tennessee for its Bachelor of Science in Nursing (Pre-Licensure) degree program. Aspen University has received a License for its Bachelor of Science in Nursing (Pre-Licensure) degree program to operate in the state of Florida by the Commission for Independent Education of the Florida Department of Education. Aspen University has received a Certificate of Authorization for its Bachelor of Science in Nursing (Pre-Licensure) degree program to operate in the state of Georgia by the Georgia Nonpublic Postsecondary Education Commission. USU is also a Delaware corporation and received initial approval from the Delaware DOE to confer degrees through June 2023. USU is authorized by the California Bureau of Private Postsecondary Education to operate as a degree-granting institution for all degrees. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Apr. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ EquityAGI maintains two stock-based incentive plans: the 2012 Equity Incentive Plan (the “2012 Plan”) and 2018 Equity Incentive Plan (the “2018 Plan”) that provide for the grant of 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. The 2012 Plan expired March 15, 2022 and remains in effect for outstanding grants only, and is no longer available for new grants. On March 8, 2022 we transferred the 129,009 unused shares under the 2012 Plan to the 2018 Plan. As of April 30, 2022 there were 812,763 shares remaining available for future issuance under the 2018 Plan. As of April 30, 2021 there were 549,739 shares remaining available for future issuance under the 2012 and the 2018 Plans. On December 22, 2021, 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 1,600,000 to 2,350,000 shares. On July 6, 2022, the Company amended its Certificate of Incorporation, as amended, to increase the number of authorized shares of common stock the Company is authorized to issue from 40,000,000 to 60,000,000 authorized shares. The stockholders of the Company had previously approved the amendment at a special meeting of the Company's stockholders held on July 6, 2022. 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, 2022 and April 30, 2021, we had no shares of preferred stock issued and outstanding. Common Stock At April 30, 2022 and 2021, the Company was authorized to issue 60,000,000 and 40,000,000 shares of common stock, respectively. On August 31, 2020, the Company entered into an Equity Distribution Agreement (the “Agreement”) with Canaccord Genuity LLC (“Canaccord”), pursuant to which the Company may issue and sell from time to time, through Canaccord, up to $12,309,750 of shares of the Company’s common stock (the “Shares”). The Shares were offered and sold pursuant to a prospectus supplement filed with the Securities and Exchange Commission on August 31, 2020. The purpose of this Agreement was, among other things, to allow the Company to sell common stock that has been surrendered from executive officers and directors related to vesting of RSUs and exercise of stock options as well as to receive the funds the Company would otherwise have received if the stock options exercised under the net share program were exercised for cash. During the fiscal year 2021, the Company sold 449,632 shares under the Agreement. On February 8, 2021, the Company provided written notice to Canaccord Genuity of its election to terminate the Equity Distribution Agreement. This action terminates the Company’s at-the-market offering facility effective February 18, 2021. Under the Agreement, the Company paid Canaccord 3% of the gross proceeds from the sales of the Shares sold under the Agreement. The Company also reimbursed Canaccord for certain specified expenses, including the fees and disbursements of its legal counsel, in the amount of $50,000. Total expenses for the offering, excluding compensation and reimbursement payable to Canaccord under the terms of the Agreement, were approximately $50,000, which is included in general and administrative expense in the consolidated statement of operations. During the years ended April 30, 2022 and 2021, the Company issued 58,419 and 1,389,463 shares of common stock upon the exercise of stock options for cash and received proceeds $191,034 of $2,669,247, respectively. As of April 30, 2022 and April 30, 2021, 0 and 155,486 shares of common stock related to options exercised by the executive officers were surrendered to cover the option exercise price but have yet to be sold by the company, respectively. (See Treasury stock discussion below). During the years ended April 30, 2022 and 2021, the Company issued 85,576 and 295,557shares of common stock upon the vesting of Restricted Stock Units (“RSUs”), respectively. During the years ended April 30, 2022 and 2021, the Company issued 30,156 and 34,773 shares of common stock upon the cashless exercise of 200,000 and 52,778 stock options, respectively. During the years ended April 30, 2022 and 2021, the Company issued 0 and 192,049 shares of common stock upon the exercise of warrants for cash and received proceeds of $0 and $1,081,792, respectively. On January 3, 2022, the Compensation Committee approved a 117,316 common stock grant to the members of the Board of Directors for services in the 2021 calendar year. The grant had a grant date fair value of $279,212 based on a closing stock price of $2.38 per share. The grant was under the Company’s 2018 Plan and was fully vested and amortized as of January 31, 2022. These shares were issued in the fourth quarter of fiscal year 2022. The amortization expense is included within stock-based compensation in general and administrative expense in the accompanying consolidated statement of operations. During the year ended April 30, 2021, the Company issued 2,000 shares of common stock to a former director for services provided. The shares were valued using a grant date share price of $9.95 and the Company recognized $19,900 of expense. On September 14, 2020, after the closing price of our common stock was at least $10.725 over a 20 consecutive trading day period, the $10 million 2020 Convertible Notes (see Note 9. Long-term Debt, Net) automatically converted into 1,398,602 shares of the Company’s common stock at a conversion price of $7.15 per share. Restricted Stock As of April 30, 2022, and 2021 there were 0 and 8,224 unvested shares of restricted common stock outstanding. During the years ended April 30, 2022 and 2021 there were no new restricted stock grants, forfeitures, or expirations. There is no unrecognized compensation expense related to restricted stock as of April 30, 2022. Restricted Stock Units A summary of the Company’s RSU activity which were granted under the 2021 and 2018 Equity Incentive Plans during the year ended April 30, 2022 is presented below: Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Unvested balance outstanding, April 30, 2021 549,972 $ 6.58 Granted 520,142 5.58 Forfeits (54,610) 8.49 Vested (85,576) 4.27 Expired — — Unvested balance outstanding, April 30, 2022 929,928 $ 6.12 Fiscal 2022 activity Of the 520,142 RSUs granted during the year ended April 30, 2022, 410,000 RSUs correspond to executive compensation grants summarized below. On August 16 2021, the Compensation Committee approved a 125,000 RSU grant to the Company’s newly hired Chief Financial Officer as part of his employment agreement. The grant has a grant date fair value of $725,000 based on a closing stock price of $5.80 per share. On August 12, 2021, the Compensation Committee approved individual grants of 80,000 RSUs to the Company’s Chief Operating Officer and Chief Academic Officer. The grants have a total grant date fair value of $1.0 million based on a closing stock price of $6.48 per share. The three executive grants discussed above are under the Company’s 2018 Plan and are set to vest annually over a period of three years and are subject to continued employment as an officer of the Company on each applicable vesting date. The amortization expense related to these grants for year ended April 30, 2022 was $440,450 and is included in "general and administrative expense" in the accompanying consolidated statement of operations. On July 21, 2021, as part of a new employment agreement, the Compensation Committee approved a 125,000 RSU grant to the Company's Chief Executive Officer under the Company's 2018 Plan. The grant has a grant date fair value of $873,750 based on a closing stock price of $6.99 per share. As stipulated in the grant, vesting is subject to continued employment with the Company and will occur in full on the date the Company files with the SEC a quarterly or annual report on Forms 10-Q or 10-K, as applicable, which reflects the Company's reported net income on a GAAP basis. At April 30, 2022, the Company is amortizing the expense over three years through July 2024 (the filing date of the Form 10-K for Fiscal Year 2024). The Company will continue to assess the performance condition at each reporting period. If the RSUs do not vest within three years from the July 21, 2021 effective date, they will be forfeited. The amortization expense related to this grant for the year ended April 30, 2022 was $242,708, which is included in general and administrative expense in the consolidated statements of operations. The remaining 110,142 RSUs granted during the year ended April 30, 2022 were granted to employees and have a grant date fair value that ranges from $2.09 to $6.50 per share, or a total of $266,988, vesting annually over three years and subject to continued employment on each applicable vesting date. Of the 929,928 unvested RSUs outstanding at April 30, 2022, 195,000 remain from the February 4, 2020 executive grant. These RSUs vest four years from the grant date, if each applicable executive is still employed by the Company on the vesting date and subject to accelerated vesting for all RSUs if the closing price of the Company’s common stock is at least $12 for 20 consecutive trading days. On the grant date, the closing price of the Company's common stock on The Nasdaq Global Market was $9.49 per share. The amortization expense related to this grant for the years ended April 30, 2022 and 2021, was approximately $0.4 million and $1.2 million, respectively, which is included in general and administrative expense in the consolidated statements of operations. At April 30, 2022, total unrecognized compensation expense related to unvested RSUs is $3,947,815 and is expected to be recognized over a weighted-average period of approximately 1.49 years. Fiscal 2021 activity Of the 275,521 RSU grants in fiscal 2021, 15,791 RSUs correspond to RSUs granted to the Board of Directors while the remainder of the RSU grants were to employees. The RSUs granted to the Board of Directors occurred during the three months ending January 31, 2021 and immediately vested with a fair value of $11.13 per share, resulting in a total expense of $175,754. The grant date fair value of the remaining employee awards range from $5.92 to $12.78 per share, or a total of $2.5 million, with an annual vest over three years. As of April 30, 2021, 549,972 RSUs are unvested. Total unrecognized compensation expense related to these unvested RSUs is approximately $3.6 million which will be amortized over the remaining vesting periods. Included in this amount is approximately $1.2 million of total unrecognized compensation expense related to 195,000 unvested RSUs from the executive RSU grant discussed below. As of April 30, 2021, there was approximately $3.6 million of unrecognized compensation costs related to non-vested RSU grants. That cost is expected to be recognized over a weighted-average period of approximately 1.72 years. Warrants The Company estimates the fair value of warrants utilizing the Black-Scholes pricing model, which is dependent upon several variables such as the expected term, expected volatility of the Company’s stock price over the expected term, expected risk-free interest rate over the expected term and expected dividend yield rate over the expected term. The Company believes this valuation methodology is appropriate for estimating the fair value of warrants issued to 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 expense on a straight-line basis over the vesting period of each warrant issued. A summary of the Company’s warrant activity during the year ended April 30, 2022 is presented below: Warrants Number of Shares Weighted Weighted Aggregate Balance Outstanding, April 30, 2021 374,174 $ 6.37 1.9 — Granted 275,000 2.43 4.80 — Exercised — — — — Surrendered — — — — Expired — — — — Balance Outstanding, April 30, 2022 649,174 $ 4.70 1.96 $ — Exercisable, April 30, 2022 624,174 $ 4.61 2.48 $ — OUTSTANDING WARRANTS EXERCISABLE WARRANTS Exercise Weighted Outstanding Weighted Weighted Exercisable $1.00 $ 1.00 200,000 $1.00 4.99 200,000 $4.89 $ 4.89 50,000 $4.89 1.95 50,000 $5.85 $ 5.85 50,000 $5.85 4.34 50,000 $6.00 $ 6.00 100,000 $6.00 1.85 100,000 $6.87 $ 6.87 224,174 $6.87 0.24 224,174 $6.99 $ 6.99 25,000 $0.00 — — 649,174 624,174 Fiscal 2022 activity On April 22, 2022, as consideration for amending the Intercreditor Agreement, the Company issued warrants to the each of the same two unaffiliated lenders of the 2022 Convertible Notes, to each purchase 100,000 shares of the Company’s common stock exercisable for five years from the date of issuance at the exercise price of $1.00 per share. See Note 9. Long-term Debt, Net. As consideration for the lenders agreeing to enter into the Amendment, the Co mpany agreed to issue each lender 100,000 five-year warrants exercisable at $1.00 per share. The fair value of the warrants is $118,000 and is being amortized over the 60-month term. The fair value of the warrants are treated as deferred financing costs, a non-current asset, in the accompanying consolidated balance sheets at April 30, 2022. Total unamortized costs at April 30, 2022 were $118,000. On August 31, 2021, the Compensation Committee approved the issuance of warrants to the Leon and Toby Cooperman Family Foundation as an extension fee in connection with the extension of the 2018 Credit Facility Agreement. The warrants allow for the purchase of 50,000 shares of the Company’s common stock and have an exercise price of $5.85. The warrants have an exercise period of five years from the August 31, 2021 issuance date and will terminate automatically and immediately upon the expiration of the exercise period. The fair value of the warrants is $137,500 and is being amortized over the 14-month line of credit period. The Company has recognized $68,932 of amortization expense in connection with the fair value of the warrants for year ended April 30, 2022, respectively, which is included in "interest expense" in the accompanying consolidated statement of operations. On July 21, 2021, the Executive Committee approved the issuance of warrants to a former member of the Board of Directors for the purchase of 25,000 shares of the Company's common stock with an exercise price of $6.99 per share. The warrants have an exercise period of five years from the July 21, 2021 issuance date and vest annually over a three year period subject to continued service on the Company's Advisory Board on each applicable vesting date. The warrants will terminate automatically and immediately upon the expiration of the exercise period. The fair value of the warrants is $84,000 and is being amortized over the three year vesting period. The Company has recognized $21,000 of amortization expense in connection with the fair value of the warrants for the year ended April 30, 2022, respectively, which is included in general and administrative expense in the accompanying consolidated statement of operations. Fiscal 2021 activity On June 5, 2020, the Company, as an inducement to exercise, reduced by 5% the exercise price of the common stock purchase warrants issued to The Leon and Toby Cooperman Family Foundation (the “Foundation”), of which Mr. Leon Cooperman, a stockholder of the Company, is the trustee. The warrants were issued on November 5, 2018 (the “2018 Cooperman Warrants”) and on March 5, 2019 (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 for 192,049 shares on common stock paying the Company $1,081,792 and the Company issued 192,049 shares of common stock to the Foundation. The warrant modification and acceleration charge related to this transaction in the first quarter of fiscal year 2021 was $25,966. Stock Option Grants to Employees and Directors 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 and expected dividend yield rate over the expected option term. 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 Company utilizes 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. There were no options granted to employees during the years ended April 30, 2022 and 2021. A summary of the Company’s stock option activity for employees and directors during the year ended April 30, 2022, is presented below: Options Number of Weighted Weighted Aggregate Balance Outstanding, April 30, 2021 1,214,473 $ 6.24 1.88 $ 204,719 Granted — — — — Exercised (258,419) 5.60 — — Forfeited (7,297) 2.89 — — Expired (88,575) 0.83 — — Balance Outstanding, April 30, 2022 860,182 $ 7.03 1.25 $ — Exercisable, April 30, 2022 840,385 $ 7.08 1.24 $ — OUTSTANDING OPTIONS EXERCISABLE OPTIONS Exercise Weighted Outstanding Weighted Weighted Exercisable $3.24 to $4.38 $3.82 63,165 $4.50 1.44 51,998 $4.50 to $5.20 $4.94 138,176 $4.98 1.74 137,543 $5.95 to $6.28 $5.95 28,000 $5.95 0.31 28,000 $7.17 to $7.55 $7.45 473,092 $7.46 1.32 465,095 $8.57 to $9.07 $8.98 157,749 $8.98 0.69 157,749 860,182 840,385 As of April 30, 2022, there was approximately $5,446 of unrecognized compensation costs related to unvested stock options. That cost is expected to be recognized over a weighted-average period of approximately 0.42 years. Stock-based compensation related stock options, RSUs and restricted stock A summary of the Company’s stock-based compensation expense, which is included in "general and administrative" expense in the consolidated statement of operations is presented below: Years Ended April 30, 2022 2021 RSUs $ 2,095,533 $ 3,335,250 Restricted Stock 307,283 62,007 Stock options 131,849 560,828 Total stock-based compensation expense $ 2,534,665 $ 3,958,085 Treasury Stock As of both April 30, 2022 and 2021, 155,486 shares of common stock were held in treasury representing shares of common stock surrendered upon the exercise of stock options in payment of the exercise prices and the taxes and similar amounts due arising from the option exercises. The values aggregating approximately $1,817,414 were based upon the fair market value of shares surrendered as of the date of each applicable exercise date. |
Leases
Leases | 12 Months Ended |
Apr. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company determines if a contract contains a lease at inception. The Company has entered into operating leases totaling approximately 191,328 square feet of office and classroom space in Phoenix, San Diego, New York City, Denver, Austin, Tampa, Nashville, Atlanta and the New Brunswick Province in Canada. These leases expire at various dates through April 2031, and the majority contain annual base rent escalation clauses. Most of these leases include options to terminate for a fee or extend for additional five-year periods. As permitted by ASC 842, leases with an initial term of twelve months or less are not recorded on the accompanying consolidated balance sheet. The Company does not have any financing leases. As of April 30, 2022, our longer-term operating leases are located in Tampa, Phoenix, Austin and Nashville and are set to expire in six 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 "Operating lease right-of-use assets, net", "Operating lease obligations, current portion" and "Operating lease obligations, less current portion" in the consolidated balance sheets at April 30, 2022 and 2021. These assets and lease liabilities are recognized based on the present value of remaining lease payments over the lease term. Variable lease costs such as common area maintenance, property taxes and insurance are expensed as incurred. When the lease does not provide an implicit interest rate, the Company uses an incremental borrowing rate of 12% to determine the present value of the lease payments. Lease incentives are deducted from the ROU assets. Incentives such as tenant improvement allowances are amortized as leasehold improvements, separately, over the life of the lease term. For the years ended April 30, 2022 and 2021, the amortization expense for these leasehold improvements was $661,131 and $306,217, respectively. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for the years ended April 30, 2022 and 2021, was $3,868,333 and $2,775,000, respectively, which is included in general and administrative expenses in the consolidated statements of operations. ROU assets are summarized below: April 30, 2022 2021 ROU assets - Operating facility leases $ 15,958,721 $ 14,308,296 Less: accumulated amortization (3,312,771) (1,593,433) Total ROU assets $ 12,645,950 $ 12,714,863 Operating lease obligations, related to the ROU assets are summarized below: April 30, 2022 2021 Total lease liabilities $ 22,517,355 $ 19,946,229 Reduction of lease liabilities (3,671,466) (1,617,600) Total operating lease obligations $ 18,845,889 $ 18,328,629 The following is a schedule by future minimum lease payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of April 30, 2022 (a) (by fiscal year). Maturity of Lease Obligations Lease Payments 2023 $ 4,323,543 2024 4,021,638 2025 3,805,716 2026 3,911,083 2027 3,991,386 Thereafter 7,971,839 Total future minimum lease payments 28,025,205 Less: imputed interest (9,179,316) Present value of operating lease liabilities $ 18,845,889 ____________________ (a) Lease payments exclude $3.7 million of legally binding minimum lease payments for the new BSN Pre-Licensure campus location in Atlanta, Georgia for its lease signed but not yet commenced. April 30, Balance Sheet Classification 2022 2021 Operating lease obligations, current portion $ 2,036,570 $ 2,029,821 Operating lease obligations, less current portion 16,809,319 16,298,808 Total operating lease obligations $ 18,845,889 $ 18,328,629 April 30, Other Information 2022 2021 Weighted average remaining lease term (in years) 6.81 7.46 Weighted average discount rate 12 % 12 % |
Revenue
Revenue | 12 Months Ended |
Apr. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue consists 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 its 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 due to students. Deferred revenue represents the amount of tuition, fees, and other student payments received 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 the Company's revenue disaggregated by the nature and timing of services: Years Ended April 30, 2022 2021 Tuition - recognized over period of instruction $ 67,200,354 $ 59,970,120 Course fees - recognized over period of instruction 7,982,689 7,088,539 Book fees - recognized at a point in time 42,777 150,969 Exam fees - recognized at a point in time 799,367 233,820 Service fees - recognized at a point in time 669,179 369,072 Revenue $ 76,694,366 $ 67,812,520 Contract Balances and Performance Obligations The Company recognizes deferred revenue as a student participates in a course which continues past the consolidated balance sheet date. The deferred revenue balance as of April 30, 2022 and 2021, was $5,889,911 and $6,825,014, respectively. During the year ended April 30, 2022, the Company recognized $5,087,417 of revenue that was included in the deferred revenue balance as of April 30, 2021. The Company classifies deferred revenue as current when the remaining term of the course, including affect to the refund policy, is one year or less. When the Company begins providing the performance obligation by beginning instruction in a course, a contractual receivable is created, resulting in accounts receivable. The Company accounts for receivables in accordance with ASC 310, Receivables. The Company uses the portfolio approach. Cash Receipts The Company's 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 fixed monthly payments over the length of the 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 Judgment 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. 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense are as follows: Years Ended April 30, 2022 2021 Current income tax expense: Federal $ — $ — State 27,400 32,644 Foreign 400,000 — Current income tax expense 427,400 32,644 Deferred income tax expense: Federal — — State — — Foreign — — Deferred income tax expense — — Income tax expense $ 427,400 $ 32,644 Significant components of the Company's deferred income tax assets and liabilities are as follows: April 30, 2022 2021 Deferred tax assets: Net operating loss carryforward $ 18,095,495 $ 15,737,351 Allowance for doubtful accounts 897,965 1,009,273 Deferred rent 192,284 252,479 Stock-based compensation 870,245 — Contributions carryforward 11,089 11,013 Accrued compensation 43,176 — Warrant amortization 17,888 — Intangibles — — Interest expense limitation carryforward 717,919 86,485 Total deferred tax assets 20,846,061 17,096,601 Deferred tax liabilities: Property and equipment (1,000,092) (356,473) Intangibles (463,074) (186,063) Stock-based compensation — (1,778,017) Total deferred tax liabilities (1,463,166) (2,320,553) Deferred tax assets, net $ 19,382,895 $ 14,776,048 Valuation allowance: Beginning of year (14,776,048) (12,399,948) Increase during period (4,606,847) (2,376,100) Ending balance (19,382,895) (14,776,048) Net deferred tax asset $ — $ — As of April 30, 2022, 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, 2022 and 2021, the valuation allowance was approximately $19,400,000 and $14,800,000, 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, 2022, the Company had approximately $69,700,000 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, 2022, tax years 2019 through 2021 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, 2022 2021 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 4.2 % 4.4 % Effect on change in federal tax rates — % — % Federal and State Minimum Taxes — % (0.2) % Permanent Differences (1.9) % (0.2) % Foreign income tax (4.4) % — % Change in Tax Rates - States 1.1 % (2.8) % Change in Tax Credits — % — % Change in Valuation Allowance (50.3) % (22.8) % Other 25.6 % 0.3 % Effective Income Tax Rate (4.7) % (0.3) % The Company determined that it has a permanent establishment in Canada, as defined by article V(2)(c) of the Convention between Canada and the United States of America with Respect to Taxes on Income and on Capital (the “Treaty”), which would be subject to Canadian taxation as levied under the Income Tax Act. The Company is preparing to file Canadian T2 Corporation Income Tax Returns and related information returns under the Voluntary Disclosure Program with the Canada Revenue Agency ("CRA") to cover the 2013 through 2021 tax years during which a permanent establishment was in place. The Company will also file an annual Canadian T2 Corporation Income Tax return to report the ongoing activity of the permanent establishment for 2022 and future taxation years. As of April 30, 2022, the Company recorded a reserve of approximately $300,000 for the estimate of the 2013 through 2021 tax year foreign income tax liability. Additionally, for the 2022 tax year, the Company recorded a reserve of $100,000 for the related foreign income tax liability. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Apr. 30, 2022 | |
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, 2022 Revenue $ 19,430,995 $ 18,940,211 $ 18,944,798 $ 19,378,362 Cost of revenue (exclusive of depreciation and amortization) 8,593,568 8,789,201 9,275,419 8,601,093 Operating loss (1,238,459) (2,657,536) (3,335,644) (1,738,684) Loss before income taxes (719,878) (2,846,358) (3,502,387) (2,089,758) Net loss (870,888) (2,852,258) (3,733,997) (2,128,638) Net loss per share allocable to common stockholders - basic and diluted $ (0.03) $ (0.11) $ (0.15) $ (0.09) Quarter Ended July 31 Quarter Ended October 31 Quarter Ended January 31 Quarter Ended April 30 Year Ended April 30, 2021 Revenue $ 15,165,562 $ 16,971,045 $ 16,624,837 $ 19,051,076 Cost of revenue (exclusive of depreciation and amortization) 5,847,523 7,324,780 7,559,951 8,721,479 Operating loss (366,341) (2,797,247) (2,784,825) (2,295,735) Loss before income taxes (945,096) (4,333,995) (2,804,806) (2,332,432) Net loss (943,196) (4,370,525) (2,815,266) (2,319,986) Net loss per share allocable to common stockholders - basic and diluted $ (0.04) $ (0.19) $ (0.11) $ (0.09) |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2022 | |
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, the valuation of lease liabilities and the carrying value of the related right-of-use assets ("ROU assets"), depreciable lives of property and equipment, amortization periods and valuation of courseware, intangibles and software development costs, 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. Restricted cash as of April 30, 2022, of $6,433,397 consists of $5 million, which is collateral for an approximately $18.3 million surety bond required by the Arizona State Board for Postsecondary Education, $1,173,525, which is collateral for letters of credit for the Aspen University and USU facility operating leases, $9,872 which is collateral for a letter of credit for USU required to be posted based on the level of Title IV funding in connection with USU's most recent Compliance Audit, and a $250,000 compensating balance under a secured credit line. Restricted cash as of April 30, 2021, of $1,193,997 consisted of $934,125 which is collateral for letters of credit for the Aspen University and USU facility operating leases, $9,872, which is collateral for a letter of credit for USU required to be posted based on the level of Title IV funding in connection with USU's most recent Compliance Audit, and a $250,000 compensating balance under a secured credit line. |
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. The Company has not experienced any losses in such accounts from inception through April 30, 2022. |
Goodwill and Intangibles | Goodwill and Intangibles The Company assesses goodwill on its one reporting unit and indefinite-lived intangible assets for impairment annually as of April 30, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit or the fair value of an indefinite-lived intangible asset below its carrying value. Goodwill currently represents the excess of purchase price over the fair market value of assets acquired and liabilities assumed from the 2017 acquisition of USU. Goodwill has an indefinite life and is not amortized. In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 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. We have selected an April 30 annual goodwill impairment test date. When evaluating the potential impairment of goodwill, management first assess a range of qualitative factors, including but not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company’s products and services, regulatory and political developments, entity specific factors such as strategy and changes in key personnel, and the overall financial performance for each of the Company’s reporting units. If, after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we then proceed to the quantitative impairment testing. We compare the carrying value of the reporting unit, including goodwill, with its fair value, as determined. If the carrying value of a reporting unit exceeds its fair value, then the amount of impairment to be recognized is the amount by which the carrying amount exceeds the fair value. When required, we arrive at our estimates of fair value using a discounted cash flow methodology which includes estimates of future cash flows to be generated by a component where the goodwill is recorded, as well as determining a discount rate to measure the present value of those anticipated cash flows. Estimating future cash flows requires significant judgment and includes making assumptions about projected growth rates, industry-specific factors, working capital requirements, weighted average cost of capital, and current and anticipated operating conditions. The use of different assumptions or estimates for future cash flows could produce different results. Intangible assets represent both indefinite-lived and definite-lived assets. Acquired 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 and Fair Value of Financial Instruments | Fair Value Measurements and Fair Value of Financial Instruments 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. The Company’s non-financial assets, such as goodwill, intangible assets, ROU assets, and property and equipment, are adjusted to fair value only when an impairment is recognized. Such fair value measurements are based predominantly on Level 3 inputs . |
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. The monthly payment plan represents the majority of the payments that are made by AGI's total active students, making it the most common payment type. In instances where a student selects financial aid as the primary payment option, the student often selects personal cash as the secondary option. If a student who has selected financial aid as the student's 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 the student's 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 and payors other than students, AGI records an allowance for doubtful accounts for estimated losses resulting from the inability, failure or refusal of its students or other payors 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 estimates the amounts to adjust the allowance based upon the risk presented by the age of the receivables, student status, payment type, program and estimate of new revenue. 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. 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 until revenue is earned 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 contractual accounts receivable. At April 30, 2022 and 2021, those balances are $11,406,525 and $10,249,833, respectively. The Company has determined that the long-term contractual 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 and amortization. Repairs and maintenance costs are expensed in the period incurred. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the related assets, or, in the case of leasehold improvements, the lease term, if shorter. Category Useful Life Computer equipment and hardware 3 years Software 5 years Instructional equipment 5 years Furniture and fixtures 7 years Leasehold Improvements The lesser of 8 years or 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. Amortization 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. The Company has construction in progress which includes property and equipment amounts for new campuses. These assets are not depreciated until they are completed and reclassified to the appropriate category within property and equipment. Upon the retirement or disposition of property and equipment, the related cost and accumulated depreciation or amortization 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 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 Long-lived assets, which consist of ROU assets, property and equipment, and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The carrying value 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. If the carrying value is deemed not to be recoverable, an impairment loss is recorded equal to the amount by which the carrying value of the long-lived asset exceeds its fair value. Amortization of definite-lived intangible assets is computed either on a straight-line basis or based on the pattern in which the economic benefits of the asset will be realized. |
Due to Students | Due to StudentsThe Company receives Title IV funds from the Department of Education to cover tuition and living expenses. After deducting tuition and fees, the Company sends payment for the remaining balances to the students. |
Leases | Leases The Company accounts for leases in accordance with FASB issued ASU No. 2016-2, Leases (Topic 842). 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 financing 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. Lease incentives received are deducted from the ROU assets and classified as leasehold improvements. The asset reduction due to incentives is classified within cash flows from operations. The corresponding leasehold improvement is amortized over the life of the lease term and classified within cash flows from investing activities. Disclosures related to the amount, timing, and uncertainty of cash flows arising from leases are included in Note 12. Leases. |
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 The Company follows 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. Revenue consists primarily of tuition and course fees derived from courses taught by the Company online and in-person as well as from related educational resources and services that the Company provides to its students. Under ASC 606, tuition and course fee 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. Students may receive discounts, scholarships, or refunds, which gives rise to variable consideration. Discounts and scholarships are applied to individual student accounts when such amounts are awarded. Therefore, the tuition is reduced directly by these discounts or scholarships from the amount of the standard tuition rate charged. The Company's disaggregated revenue disclosures are presented in Note 13. Revenue. Deferred revenue, a contract liability, represents the amount of tuition, fees, and other student payments received in excess of the portion recognized as revenue and it is included in current liabilities in the accompanying consolidated balance sheets. Other revenue may be recognized as sales occur or services are performed. |
Cost of Revenue | Cost of Revenue Cost of revenue consists of two categories of cost, instructional costs and services, and marketing and promotional costs. |
Instructional Costs and Services | Instructional Costs and ServicesInstructional 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 and in-person faculty, technology license costs and costs associated with other support groups that provide services directly to the students and are included in cost of revenue. |
Marketing and Promotional Costs | Marketing and Promotional CostsMarketing 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. The Company's marketing generally consists of non-direct response advertising activities and are expensed as incurred, or the first time the advertising takes place, depending on the type of advertising activity. |
General and Administrative | 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 | Legal Expenses All legal costs for litigation are charged to expense as incurred. |
Income Taxes | Income Taxes 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. |
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, which is included in general and administrative expense in the consolidated statement of operations. For employee stock option 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 option 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 option based awards represent the Company's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. Stock option based awards are expensed as stock-based compensation over the vesting term, which is included in general and administrative expense in the consolidated statement of operations. For non-employee stock option based awards, the Company follows ASU 2018-7, which substantially aligns share based compensation for employees and non-employees. Restricted stock units ("RSUs") are awards in the form of shares denominated in the equivalent number of shares of AGI common stock. RSU awards may be subject to service-based vesting, where a specific period of continued employment must pass before an award vests and/or other vesting restrictions based on the nature and recipient of the award. For RSU awards, the |
Net Loss Per Share | Net Loss Per Share Net loss per share is based on the weighted average number of shares of common stock outstanding during each period. Options, warrants, RSUs and unvested restricted stock are not included in the computation of diluted net loss per share because the effects would have been anti-dilutive. These common stock equivalents and any others such as convertible debt are only included in the calculation of diluted earnings per share of common stock when their effect is dilutive. All shares mentioned above were not included in the computation of diluted net loss per share because the effects would have been anti-dilutive. The options, warrants, RSUs, unvested restricted stock (see Note 11. Stockholders’ Equity) |
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, Chief Operating Officer and Chief Academic Officer, manage the Company's operations as a whole. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recent Accounting Pronouncement Adopted In August 2020, the FASB issued ASU No. 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40), to simplify accounting for certain financial instruments. ASU No. 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU No. 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU No. 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company adopted ASU No. 2020-06 effective January 1, 2021. The adoption of ASU No. 2020-06 did not have an impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which significantly changes how entities will measure credit losses for most financial assets, including accounts receivable. ASU No. 2016-13 will replace today’s “incurred loss” approach with an “expected loss” model, under which companies will recognize allowances based on expected rather than incurred losses. On November 15, 2019, the FASB delayed the effective date of Topic 326 for certain small public companies and other private companies until fiscal years beginning after December 15, 2022 for SEC filers that are eligible to be smaller reporting companies under the SEC’s definition, as well as private companies and not-for-profit entities. The Company is currently evaluating the new guidance and has not yet determined whether the adoption of the new standard will have a material impact on its consolidated financial statements or the method of adoption. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures . The guidance was issued as improvements to ASU No. 2016-13 described above. The vintage disclosure changes require an entity to disclose current-period gross write-offs by year of origination for financing receivables. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The amendments should be applied prospectively. Early adoption of the amendments |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. The Company has concluded that based on industry practices, the preferred presentation for cash received in advance for unearned tuition and stipends should be reclassified from "restricted cash" to "cash and cash equivalents." The cash balance of $3,958,793 for funds held for students for unbilled educational services that were received from Title IV and non-Title IV programs at April 30, 2021, which was previously included in "restricted cash" in the accompanying consolidated balance sheet, was reclassified to "cash and cash equivalents" to align with the current year presentation. There is no impact to total current assets included in the accompanying consolidated balance sheet at April 30, 2021. The restricted cash balance at April 30, 2021, now includes collateral for letters of credit and a compensating balance arrangement under a secured credit line of $1,193,997. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment Useful Lives | Property and equipment are recorded at cost less accumulated depreciation and amortization. Repairs and maintenance costs are expensed in the period incurred. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the related assets, or, in the case of leasehold improvements, the lease term, if shorter. Category Useful Life Computer equipment and hardware 3 years Software 5 years Instructional equipment 5 years Furniture and fixtures 7 years Leasehold Improvements The lesser of 8 years or lease term |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Receivables [Abstract] | |
Accounts Receivable Balance | Accounts receivable consisted of the following at April 30, 2022 and 2021: April 30, 2022 2021 Total accounts receivable, gross $ 39,226,054 $ 30,264,393 Long-term contractual accounts receivable (11,406,525) (10,249,833) Accounts receivable, gross 27,819,529 20,014,560 Less: allowance for doubtful accounts (3,460,288) (3,289,816) Accounts receivable, net $ 24,359,241 $ 16,724,744 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: April 30, 2022 2021 Computer equipment and hardware $ 1,516,475 $ 956,463 Furniture and fixtures 2,193,261 1,705,101 Leasehold improvements 7,179,896 5,729,324 Instructional equipment 715,652 421,039 Software 10,285,096 8,488,635 Construction in progress 2,100 247,767 21,892,480 17,548,329 Accumulated depreciation and amortization (8,395,001) (4,892,987) Property and equipment, net $ 13,497,479 $ 12,655,342 |
Schedule of Software | Software consisted of the following: April 30, 2022 2021 Software $ 10,285,096 $ 8,488,635 Accumulated amortization (5,170,943) (3,444,325) Software, net $ 5,114,153 $ 5,044,310 Courseware and accreditation consisted of the following: April 30, 2022 2021 Courseware $ 575,283 $ 408,222 Accreditation 59,350 59,350 634,633 467,572 Accumulated amortization (360,586) (280,276) Courseware and accreditation, net $ 274,047 $ 187,296 |
Schedule of Depreciation and Amortization Expense | Depreciation and amortization expense for property and equipment and software is summarized below: Years Ended April 30, 2022 2021 Depreciation and amortization expense: Property and equipment, excluding software $ 1,555,119 $ 975,900 Software amortization expense $ 1,726,618 $ 1,405,756 |
Schedule of Estimated Future Amortization Expense of Software | The following is a schedule of estimated future amortization expense of software at April 30, 2022 (by fiscal year): Future Expense 2023 $ 1,763,621 2024 1,473,045 2025 1,070,781 2026 610,861 2027 195,845 Total $ 5,114,153 The following is a schedule of estimated future amortization expense of courseware and accreditation at April 30, 2022 (by fiscal year): Future Expense 2023 $ 83,690 2024 70,142 2025 59,054 2026 52,579 2027 8,582 Total $ 274,047 |
Courseware and Accreditation (T
Courseware and Accreditation (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Courseware, Net | Software consisted of the following: April 30, 2022 2021 Software $ 10,285,096 $ 8,488,635 Accumulated amortization (5,170,943) (3,444,325) Software, net $ 5,114,153 $ 5,044,310 Courseware and accreditation consisted of the following: April 30, 2022 2021 Courseware $ 575,283 $ 408,222 Accreditation 59,350 59,350 634,633 467,572 Accumulated amortization (360,586) (280,276) Courseware and accreditation, net $ 274,047 $ 187,296 |
Schedule of Amortization Expense of Intangible Assets | Amortization expense of courseware and accreditation is as follows: Years Ended April 30, 2022 2021 Courseware and accreditation amortization expense $ 80,310 $ 44,709 |
Schedule of Estimated Future Amortization Expense of Software | The following is a schedule of estimated future amortization expense of software at April 30, 2022 (by fiscal year): Future Expense 2023 $ 1,763,621 2024 1,473,045 2025 1,070,781 2026 610,861 2027 195,845 Total $ 5,114,153 The following is a schedule of estimated future amortization expense of courseware and accreditation at April 30, 2022 (by fiscal year): Future Expense 2023 $ 83,690 2024 70,142 2025 59,054 2026 52,579 2027 8,582 Total $ 274,047 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | April 30, 2022 2021 Accrued compensation $ 1,353,757 $ 1,244,261 Accrued foreign taxes 400,000 — Accrued marketing 387,588 437,642 Accrued professional fees 371,703 70,151 Accrued interest 49,315 23,014 Other accrued expenses 259,069 265,828 Accrued expenses $ 2,821,432 $ 2,040,896 |
Long-term Debt, Net (Tables)
Long-term Debt, Net (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | April 30, 2022 2021 Credit Facility due March 14, 2023 (the "2022 Revolving Credit Facility") $ — $ — Credit Facility due November 4, 2023 (the "2018 Credit Facility"); interest payable monthly in arrears 5,000,000 — 12% Convertible Notes due March 14, 2027 (the "2022 Convertible Notes"); interest payable monthly in arrears 10,000,000 — Total long-term debt 15,000,000 — Less: Unamortized deferred financing costs 124,265 — Total long-term debt, net $ 14,875,735 $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Restricted Stock Unit Activity | A summary of the Company’s RSU activity which were granted under the 2021 and 2018 Equity Incentive Plans during the year ended April 30, 2022 is presented below: Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Unvested balance outstanding, April 30, 2021 549,972 $ 6.58 Granted 520,142 5.58 Forfeits (54,610) 8.49 Vested (85,576) 4.27 Expired — — Unvested balance outstanding, April 30, 2022 929,928 $ 6.12 |
Summary of Warrant Activity | A summary of the Company’s warrant activity during the year ended April 30, 2022 is presented below: Warrants Number of Shares Weighted Weighted Aggregate Balance Outstanding, April 30, 2021 374,174 $ 6.37 1.9 — Granted 275,000 2.43 4.80 — Exercised — — — — Surrendered — — — — Expired — — — — Balance Outstanding, April 30, 2022 649,174 $ 4.70 1.96 $ — Exercisable, April 30, 2022 624,174 $ 4.61 2.48 $ — |
Share-based Payment Arrangement, Option, Exercise Price Range | OUTSTANDING WARRANTS EXERCISABLE WARRANTS Exercise Weighted Outstanding Weighted Weighted Exercisable $1.00 $ 1.00 200,000 $1.00 4.99 200,000 $4.89 $ 4.89 50,000 $4.89 1.95 50,000 $5.85 $ 5.85 50,000 $5.85 4.34 50,000 $6.00 $ 6.00 100,000 $6.00 1.85 100,000 $6.87 $ 6.87 224,174 $6.87 0.24 224,174 $6.99 $ 6.99 25,000 $0.00 — — 649,174 624,174 OUTSTANDING OPTIONS EXERCISABLE OPTIONS Exercise Weighted Outstanding Weighted Weighted Exercisable $3.24 to $4.38 $3.82 63,165 $4.50 1.44 51,998 $4.50 to $5.20 $4.94 138,176 $4.98 1.74 137,543 $5.95 to $6.28 $5.95 28,000 $5.95 0.31 28,000 $7.17 to $7.55 $7.45 473,092 $7.46 1.32 465,095 $8.57 to $9.07 $8.98 157,749 $8.98 0.69 157,749 860,182 840,385 |
Summary of Stock Option Activity | A summary of the Company’s stock option activity for employees and directors during the year ended April 30, 2022, is presented below: Options Number of Weighted Weighted Aggregate Balance Outstanding, April 30, 2021 1,214,473 $ 6.24 1.88 $ 204,719 Granted — — — — Exercised (258,419) 5.60 — — Forfeited (7,297) 2.89 — — Expired (88,575) 0.83 — — Balance Outstanding, April 30, 2022 860,182 $ 7.03 1.25 $ — Exercisable, April 30, 2022 840,385 $ 7.08 1.24 $ — |
Schedule of Share-Based Compensation | A summary of the Company’s stock-based compensation expense, which is included in "general and administrative" expense in the consolidated statement of operations is presented below: Years Ended April 30, 2022 2021 RSUs $ 2,095,533 $ 3,335,250 Restricted Stock 307,283 62,007 Stock options 131,849 560,828 Total stock-based compensation expense $ 2,534,665 $ 3,958,085 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Leases [Abstract] | |
Schedule of Right-of-Use Assets and Operating Lease Liabilities | ROU assets are summarized below: April 30, 2022 2021 ROU assets - Operating facility leases $ 15,958,721 $ 14,308,296 Less: accumulated amortization (3,312,771) (1,593,433) Total ROU assets $ 12,645,950 $ 12,714,863 Operating lease obligations, related to the ROU assets are summarized below: April 30, 2022 2021 Total lease liabilities $ 22,517,355 $ 19,946,229 Reduction of lease liabilities (3,671,466) (1,617,600) Total operating lease obligations $ 18,845,889 $ 18,328,629 |
Future Minimum Payments Under Operating Leases | The following is a schedule by future minimum lease payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of April 30, 2022 (a) (by fiscal year). Maturity of Lease Obligations Lease Payments 2023 $ 4,323,543 2024 4,021,638 2025 3,805,716 2026 3,911,083 2027 3,991,386 Thereafter 7,971,839 Total future minimum lease payments 28,025,205 Less: imputed interest (9,179,316) Present value of operating lease liabilities $ 18,845,889 ____________________ |
Schedule of Balance Sheet Information Related to Leases | April 30, Balance Sheet Classification 2022 2021 Operating lease obligations, current portion $ 2,036,570 $ 2,029,821 Operating lease obligations, less current portion 16,809,319 16,298,808 Total operating lease obligations $ 18,845,889 $ 18,328,629 |
Schedule of Other Information Related to Leases | April 30, Other Information 2022 2021 Weighted average remaining lease term (in years) 6.81 7.46 Weighted average discount rate 12 % 12 % |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenue | The following table represents the Company's revenue disaggregated by the nature and timing of services: Years Ended April 30, 2022 2021 Tuition - recognized over period of instruction $ 67,200,354 $ 59,970,120 Course fees - recognized over period of instruction 7,982,689 7,088,539 Book fees - recognized at a point in time 42,777 150,969 Exam fees - recognized at a point in time 799,367 233,820 Service fees - recognized at a point in time 669,179 369,072 Revenue $ 76,694,366 $ 67,812,520 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | The components of income tax expense are as follows: Years Ended April 30, 2022 2021 Current income tax expense: Federal $ — $ — State 27,400 32,644 Foreign 400,000 — Current income tax expense 427,400 32,644 Deferred income tax expense: Federal — — State — — Foreign — — Deferred income tax expense — — Income tax expense $ 427,400 $ 32,644 |
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, 2022 2021 Deferred tax assets: Net operating loss carryforward $ 18,095,495 $ 15,737,351 Allowance for doubtful accounts 897,965 1,009,273 Deferred rent 192,284 252,479 Stock-based compensation 870,245 — Contributions carryforward 11,089 11,013 Accrued compensation 43,176 — Warrant amortization 17,888 — Intangibles — — Interest expense limitation carryforward 717,919 86,485 Total deferred tax assets 20,846,061 17,096,601 Deferred tax liabilities: Property and equipment (1,000,092) (356,473) Intangibles (463,074) (186,063) Stock-based compensation — (1,778,017) Total deferred tax liabilities (1,463,166) (2,320,553) Deferred tax assets, net $ 19,382,895 $ 14,776,048 Valuation allowance: Beginning of year (14,776,048) (12,399,948) Increase during period (4,606,847) (2,376,100) Ending balance (19,382,895) (14,776,048) 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, 2022 2021 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 4.2 % 4.4 % Effect on change in federal tax rates — % — % Federal and State Minimum Taxes — % (0.2) % Permanent Differences (1.9) % (0.2) % Foreign income tax (4.4) % — % Change in Tax Rates - States 1.1 % (2.8) % Change in Tax Credits — % — % Change in Valuation Allowance (50.3) % (22.8) % Other 25.6 % 0.3 % Effective Income Tax Rate (4.7) % (0.3) % |
Quarterly Results (Tables)
Quarterly Results (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
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, 2022 Revenue $ 19,430,995 $ 18,940,211 $ 18,944,798 $ 19,378,362 Cost of revenue (exclusive of depreciation and amortization) 8,593,568 8,789,201 9,275,419 8,601,093 Operating loss (1,238,459) (2,657,536) (3,335,644) (1,738,684) Loss before income taxes (719,878) (2,846,358) (3,502,387) (2,089,758) Net loss (870,888) (2,852,258) (3,733,997) (2,128,638) Net loss per share allocable to common stockholders - basic and diluted $ (0.03) $ (0.11) $ (0.15) $ (0.09) Quarter Ended July 31 Quarter Ended October 31 Quarter Ended January 31 Quarter Ended April 30 Year Ended April 30, 2021 Revenue $ 15,165,562 $ 16,971,045 $ 16,624,837 $ 19,051,076 Cost of revenue (exclusive of depreciation and amortization) 5,847,523 7,324,780 7,559,951 8,721,479 Operating loss (366,341) (2,797,247) (2,784,825) (2,295,735) Loss before income taxes (945,096) (4,333,995) (2,804,806) (2,332,432) Net loss (943,196) (4,370,525) (2,815,266) (2,319,986) Net loss per share allocable to common stockholders - basic and diluted $ (0.04) $ (0.19) $ (0.11) $ (0.09) |
Nature of Operations (Details)
Nature of Operations (Details) | Apr. 30, 2022 subsidiary |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of subsidiaries | 2 |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||||||
Sep. 14, 2020 USD ($) shares | Oct. 31, 2020 shares | Apr. 30, 2022 USD ($) segment reporting_unit shares | Apr. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 28, 2020 USD ($) | Aug. 31, 2020 USD ($) | Apr. 30, 2020 USD ($) | Jan. 22, 2020 USD ($) | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Restricted cash | $ 6,433,397 | $ 1,193,997 | |||||||
Cash, uninsured amount | $ 7,749,715 | 13,005,537 | |||||||
Number of reporting units | reporting_unit | 1 | ||||||||
Withdrawal from course, percentage of financial aid earned | 100% | ||||||||
Long term accounts receivable | $ 11,406,525 | 10,249,833 | |||||||
Instructional costs and services | 19,463,085 | 15,275,131 | |||||||
Marketing and promotional costs | $ 15,796,196 | 14,178,602 | |||||||
Number of reportable segments | segment | 1 | ||||||||
Convertible Notes | Convertible Notes Payable | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Debt instrument issued | $ 10,000,000 | $ 10,000,000 | $ 5,000,000 | ||||||
Convertible Notes | Convertible Notes Payable | Common Stock | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Debt conversion, converted instrument, shares issued (in shares) | shares | 1,398,602 | 1,398,602 | 10,000,000 | ||||||
Software | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Property, plant and equipment, useful life | 5 years | ||||||||
Collateral Pledged, State of Arizona | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Restricted cash | $ 5,000,000 | ||||||||
Collateral Pledged, State of Arizona | Surety Bond | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Cash collateral for borrowed securities | 18,300,000 | ||||||||
Collateral Pledged, Aspen University Letter of Credit | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Restricted cash | 1,173,525 | 934,125 | |||||||
Collateral Pledged, Bank Letter of Credit | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Restricted cash | 9,872 | 9,872 | $ 369,473 | $ 255,708 | $ 379,345 | ||||
Secured Credit Line | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Restricted cash | $ 250,000 | ||||||||
Unbilled Educational Services | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Restricted cash | $ 3,958,793 | ||||||||
Courseware, net | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Finite-lived intangible asset, useful life | 5 years |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of Property and Equipment Useful Lives (Details) | 12 Months Ended |
Apr. 30, 2022 | |
Computer equipment and 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, 2022 | Apr. 30, 2021 |
Receivables [Abstract] | ||
Total accounts receivable, gross | $ 39,226,054 | $ 30,264,393 |
Long-term contractual accounts receivable | (11,406,525) | (10,249,833) |
Accounts receivable, gross | 27,819,529 | 20,014,560 |
Less: allowance for doubtful accounts | (3,460,288) | (3,289,816) |
Accounts receivable, net | $ 24,359,241 | $ 16,724,744 |
Accounts Receivable - Narrative
Accounts Receivable - Narrative (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Receivables [Abstract] | ||
Bad debt expense | $ 1,500,000 | $ 2,268,540 |
Property and Equipment -Schedul
Property and Equipment -Schedule of Property and Equipment (Details) - USD ($) | Apr. 30, 2022 | Apr. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 21,892,480 | $ 17,548,329 |
Accumulated depreciation and amortization | (8,395,001) | (4,892,987) |
Property and equipment, net | 13,497,479 | 12,655,342 |
Computer equipment and hardware | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,516,475 | 956,463 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,193,261 | 1,705,101 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 7,179,896 | 5,729,324 |
Instructional equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 715,652 | 421,039 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,285,096 | 8,488,635 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,100 | $ 247,767 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Software (Details) - Software - USD ($) | Apr. 30, 2022 | Apr. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Software | $ 10,285,096 | $ 8,488,635 |
Accumulated amortization | (5,170,943) | (3,444,325) |
Total | $ 5,114,153 | $ 5,044,310 |
Property and Equipment - Sche_2
Property and Equipment - Schedule of Depreciation and Amortization Expense (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Property and equipment, excluding software | $ 1,555,119 | $ 975,900 |
Software amortization expense | $ 1,726,618 | $ 1,405,756 |
Property and Equipment - Sche_3
Property and Equipment - Schedule of Estimated Amortization Expense of Software (Details) - Software | Apr. 30, 2022 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2023 | $ 1,763,621 |
2024 | 1,473,045 |
2025 | 1,070,781 |
2026 | 610,861 |
2027 | 195,845 |
Total | $ 5,114,153 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill recognized | $ 5,011,432 | $ 5,011,432 |
Indefinite useful life assets acquired | 7,900,000 | |
Finite-lived intangible assets acquired | 2,200,000 | |
Amortization expense | $ 0 | $ 0 |
Courseware and Accreditation -
Courseware and Accreditation - Schedule of Courseware, Net (Details) - USD ($) | Apr. 30, 2022 | Apr. 30, 2021 |
Courseware | ||
Finite-Lived Intangible Assets [Line Items] | ||
Software | $ 575,283 | $ 408,222 |
Accreditation | ||
Finite-Lived Intangible Assets [Line Items] | ||
Software | 59,350 | 59,350 |
Courseware, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Software | 634,633 | 467,572 |
Accumulated amortization | (360,586) | (280,276) |
Total | $ 274,047 | $ 187,296 |
Courseware and Accreditation _2
Courseware and Accreditation - Schedule of Amortization Expense of Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Courseware and accreditation amortization expense | $ 0 | $ 0 |
Courseware, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Courseware and accreditation amortization expense | $ 80,310 | $ 44,709 |
Courseware and Accreditation _3
Courseware and Accreditation - Schedule of Estimated Future Amortization Expense (Details) - Courseware, net - USD ($) | Apr. 30, 2022 | Apr. 30, 2021 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2023 | $ 83,690 | |
2024 | 70,142 | |
2025 | 59,054 | |
2026 | 52,579 | |
2027 | 8,582 | |
Total | $ 274,047 | $ 187,296 |
Secured Note and Accounts Rec_2
Secured Note and Accounts Receivable (Details) - HEMG - USD ($) | 3 Months Ended | 12 Months Ended | |
Jul. 21, 2021 | Jul. 31, 2021 | Apr. 30, 2022 | |
Related Party Transaction [Line Items] | |||
Proceeds from bankruptcy claims | $ 498,120 | $ 498,120 | |
Writeoff of net receivable | $ 45,329 | $ 45,329 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) | Apr. 30, 2022 | Apr. 30, 2021 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 1,353,757 | $ 1,244,261 |
Accrued foreign taxes | 400,000 | 0 |
Accrued marketing | 387,588 | 437,642 |
Accrued professional fees | 371,703 | 70,151 |
Accrued interest | 49,315 | 23,014 |
Other accrued expenses | 259,069 | 265,828 |
Accrued expenses | $ 2,821,432 | $ 2,040,896 |
Long-term Debt, Net - Schedule
Long-term Debt, Net - Schedule of Long Term Debt (Details) - USD ($) | Apr. 30, 2022 | Mar. 14, 2022 | Apr. 30, 2021 |
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 15,000,000 | $ 0 | |
Less: Unamortized deferred financing costs | 124,265 | 0 | |
Total long-term debt, net | 14,875,735 | 0 | |
2022 Convertible Notes | Convertible Notes Payable | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 10,000,000 | 0 | |
Interest rate (as a percent) | 12% | ||
Revolving Credit Facility | Credit Facility due March 14, 2023 | Line of Credit | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 0 | 0 | |
Revolving Credit Facility | Credit Facility due November 4, 2023 | Line of Credit | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 5,000,000 | $ 0 |
Long-term Debt, Net - Narrative
Long-term Debt, Net - Narrative (Details) | 3 Months Ended | ||||||||||||
Apr. 22, 2022 USD ($) lender $ / shares shares | Mar. 14, 2022 USD ($) unaffiliated_lender d $ / shares | Aug. 31, 2021 USD ($) $ / shares shares | Sep. 14, 2020 USD ($) d $ / shares | Sep. 14, 2020 USD ($) $ / shares shares | Sep. 14, 2020 USD ($) day $ / shares | Jan. 22, 2020 USD ($) lender note | Oct. 31, 2020 USD ($) | Apr. 30, 2022 USD ($) | Apr. 25, 2022 $ / shares shares | Apr. 30, 2021 USD ($) | Apr. 30, 2020 USD ($) | Nov. 05, 2018 USD ($) | |
Debt Instrument [Line Items] | |||||||||||||
Number of unaffiliated lenders | unaffiliated_lender | 2 | ||||||||||||
Letter of credit or surety bond posted | $ 18,300,000 | $ 18,300,000 | |||||||||||
Restricted cash | 6,433,397 | $ 1,193,997 | |||||||||||
Deferred financing costs | 369,902 | 18,056 | |||||||||||
Convertible Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Antidilutive securities excluded from computation of earnings per share, amount | shares | 1,398,602 | ||||||||||||
Warrant | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Vesting period of warrant | 5 years | 5 years | |||||||||||
2022 Convertible Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Face value of loan | $ 10,000,000 | ||||||||||||
Payment for lender legal fees | $ 135,562 | ||||||||||||
2022 Convertible Notes | Convertible Notes Payable | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, convertible, conversion price (in dollars per share) | $ / shares | $ 1 | ||||||||||||
Average closing price of common stock (in dollars per share) | $ / shares | $ 2 | ||||||||||||
Consecutive trading day period | d | 30 | ||||||||||||
Debt instrument, term | 5 years | ||||||||||||
Interest rate (as a percent) | 12% | ||||||||||||
2022 Convertible Notes | Convertible Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Face value of loan | $ 5,000,000 | ||||||||||||
2022 Revolving Credit Facility | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Outstanding balance under facility | 0 | ||||||||||||
Deferred financing costs | 118,000 | ||||||||||||
2022 Revolving Credit Facility | Revolving Credit Facility | Warrant | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | shares | 100,000 | ||||||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 1 | ||||||||||||
2022 Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, term | 1 year | ||||||||||||
Interest rate (as a percent) | 12% | ||||||||||||
Line of credit facility, maximum borrowing capacity | $ 20,000,000 | ||||||||||||
Commitment fee (as a percent) | 1% | ||||||||||||
Line of credit facility, commitment fee | $ 200,000 | ||||||||||||
Replacement period | 6 months | ||||||||||||
Additional commitment fee (as a percent) | 1% | ||||||||||||
Convertible Notes | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | ||||||||||||
Debt instrument, convertible, beneficial conversion price | $ 1,692,309 | ||||||||||||
Convertible Notes | Convertible Notes Payable | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Face value of loan | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | $ 5,000,000 | $ 10,000,000 | ||||||||
Debt instrument, convertible, conversion price (in dollars per share) | $ / shares | $ 7.15 | $ 7.15 | $ 7.15 | ||||||||||
Average closing price of common stock (in dollars per share) | $ / shares | $ 10.725 | $ 10.725 | $ 10.725 | ||||||||||
Consecutive trading day period | 20 | 20 | |||||||||||
Number of lenders | lender | 2 | ||||||||||||
Number of notes | note | 2 | ||||||||||||
Amortization expense | $ 1,400,000 | ||||||||||||
2018 Credit Facility Agreement | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | ||||||||||||
Outstanding balance under facility | 5,000,000 | $ 0 | |||||||||||
Extension period | 1 year | ||||||||||||
Deferred financing costs | $ 68,569 | ||||||||||||
Extension period | 1 year | ||||||||||||
Proceeds from lines of credit | $ 5,000,000 | ||||||||||||
2018 Credit Facility Agreement | Revolving Credit Facility | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate (as a percent) | 12% | ||||||||||||
2018 Credit Facility Agreement | Revolving Credit Facility | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate (as a percent) | 14% | ||||||||||||
2018 Credit Facility Agreement | Revolving Credit Facility | Warrant | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | shares | 50,000 | ||||||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 5.85 | ||||||||||||
Warrants and rights outstanding | $ 137,500 | ||||||||||||
Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Restricted cash | $ 5,000,000 | ||||||||||||
Intercreditor Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Number of lenders | lender | 2 | ||||||||||||
Intercreditor Agreement | Warrant | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | shares | 100,000 | ||||||||||||
Exercise period | 5 years | ||||||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 1 | ||||||||||||
Warrants and rights outstanding | $ 118,000 | ||||||||||||
Vesting period of warrant | 60 months |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Jul. 21, 2021 USD ($) | Apr. 16, 2021 | Mar. 31, 2022 | Jul. 31, 2021 USD ($) | Apr. 30, 2022 USD ($) quarter state | Dec. 31, 2021 | Apr. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jun. 30, 2022 phase | Apr. 22, 2022 USD ($) | Feb. 28, 2022 employee | Sep. 28, 2020 USD ($) | Aug. 31, 2020 USD ($) | Dec. 31, 2016 USD ($) | Sep. 29, 2015 USD ($) | Feb. 11, 2013 USD ($) | |
Other Commitments [Line Items] | ||||||||||||||||
Estimate of potential loss | $ 2,200,000 | |||||||||||||||
Provisional certification timeframe | 2 years | |||||||||||||||
First time pass rate (as a percent) | 58% | 80% | ||||||||||||||
Letter of credit or surety bond posted | $ 18,300,000 | $ 18,300,000 | ||||||||||||||
Restricted cash | $ 6,433,397 | $ 1,193,997 | ||||||||||||||
Return of unearned funds, no later than (in days) | 45 days | |||||||||||||||
Minimum pass rate (as a percent) | 80% | |||||||||||||||
Probationary period | 36 months | |||||||||||||||
Number of consecutive quarters | quarter | 4 | |||||||||||||||
Minimum full-time qualified faculty (as a percent) | 35% | |||||||||||||||
Full-time qualified faculty (as a percent) | 31% | |||||||||||||||
Number of states authorized in | state | 30 | |||||||||||||||
Number of states in development process | state | 20 | |||||||||||||||
Student body residing in authorized states (as a percent) | 73% | |||||||||||||||
Subsequent Event | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Number of phases | phase | 2 | |||||||||||||||
Phoenix, Arizona | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Number of pre-licensure campuses | employee | 2 | |||||||||||||||
Collateral Pledged, State of Arizona | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Restricted cash | $ 5,000,000 | |||||||||||||||
Collateral Pledged, Bank Letter of Credit | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Restricted cash | 9,872 | $ 9,872 | $ 369,473 | $ 255,708 | $ 379,345 | |||||||||||
Revenue Benchmark | Customer Concentration Risk | Title IV Programs, Aspen University | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Concentration risk (as a percent) | 44.72% | |||||||||||||||
Revenue Benchmark | Customer Concentration Risk | Title IV Programs, United States University | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Concentration risk (as a percent) | 33.81% | |||||||||||||||
HEMG | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Amount of default judgment in litigation matter | $ 772,793 | |||||||||||||||
Proceeds from bankruptcy claims | $ 498,120 | 498,120 | ||||||||||||||
Writeoff of net receivable | $ 45,329 | $ 45,329 | ||||||||||||||
USU | Letter of Credit | ||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 71,634 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock and Common Stock (Details) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 08, 2022 shares | Jan. 03, 2022 USD ($) $ / shares shares | Sep. 14, 2020 USD ($) $ / shares shares | Sep. 14, 2020 USD ($) d $ / shares | Sep. 14, 2020 USD ($) day $ / shares | Aug. 31, 2020 USD ($) | Oct. 31, 2020 shares | Apr. 30, 2022 USD ($) plan shares | Apr. 30, 2021 USD ($) $ / shares shares | Jul. 06, 2022 shares | Jul. 05, 2022 shares | Dec. 22, 2021 shares | Dec. 30, 2020 shares | Apr. 30, 2020 USD ($) | Feb. 04, 2020 $ / shares | Jan. 22, 2020 USD ($) | |
Schedule Of Stockholders Equity [Line Items] | ||||||||||||||||
Number of stock-based incentive plans | plan | 2 | |||||||||||||||
Transfer of unused awards (in shares) | 129,009 | |||||||||||||||
Common stock, shares authorized (in shares) | 60,000,000 | 40,000,000 | ||||||||||||||
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 issued for stock options exercised for cash (in shares) | 200,000 | 52,778 | ||||||||||||||
Common stock issued for stock options exercised for cash | $ | $ 191,034 | $ 2,669,247 | ||||||||||||||
Number of shares of common stock surrendered (in shares) | 0 | 155,486 | ||||||||||||||
Common stock issued for warrants exercised for cash | $ | $ 0 | $ 1,081,792 | ||||||||||||||
Share price (in dollars per share) | $ / shares | $ 9.49 | |||||||||||||||
Common stock issued for services | $ | $ 0 | $ 19,900 | ||||||||||||||
2018 Equity Incentive Plan | ||||||||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||||||||
Shares reserved for future issuance (in shares) | 812,763 | |||||||||||||||
Common stock, shares authorized (in shares) | 2,350,000 | 1,600,000 | ||||||||||||||
2012 And 2018 Equity Incentive Plan | ||||||||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||||||||
Shares reserved for future issuance (in shares) | 549,739 | |||||||||||||||
Subsequent Event | ||||||||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||||||||
Common stock, shares authorized (in shares) | 60,000,000 | 40,000,000 | ||||||||||||||
Convertible Notes | Convertible Notes Payable | ||||||||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||||||||
Average closing price of common stock (in dollars per share) | $ / shares | $ 10.725 | $ 10.725 | $ 10.725 | |||||||||||||
Consecutive trading day period | 20 | 20 | ||||||||||||||
Debt instrument issued | $ | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | $ 5,000,000 | |||||||||||
Debt instrument, convertible, conversion price (in dollars per share) | $ / shares | $ 7.15 | $ 7.15 | $ 7.15 | |||||||||||||
Convertible Notes | Convertible Notes Payable | Common Stock | ||||||||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||||||||
Debt conversion, converted instrument, shares issued (in shares) | 1,398,602 | 1,398,602 | 10,000,000 | |||||||||||||
Director | Common Stock | ||||||||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||||||||
Granted (in shares) | 117,316 | |||||||||||||||
Grant date fair value | $ | $ 279,212 | |||||||||||||||
Share price (in dollars per share) | $ / shares | $ 2.38 | |||||||||||||||
Preferred Stock | Maximum | ||||||||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||||||||
Preferred stock, shares authorized (in shares) | 1,000,000 | |||||||||||||||
Common Stock | ||||||||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||||||||
Common stock issued for stock options exercised for cash (in shares) | 58,419 | 1,389,463 | ||||||||||||||
Common stock issued for stock options exercised for cash | $ | $ 58 | $ 1,389 | ||||||||||||||
Common stock issued for vested restricted stock units (in shares) | 85,576 | 295,557 | ||||||||||||||
Common stock issued for cashless exercise of stock options (in shares) | 30,156 | 34,773 | ||||||||||||||
Common stock issued for warrants exercised for cash (in shares) | 0 | 192,049 | ||||||||||||||
Common stock issued for warrants exercised for cash | $ | $ 192 | |||||||||||||||
Common stock issued for services (in shares) | 2,000 | |||||||||||||||
Common stock issued for services | $ | $ 117 | $ 2 | ||||||||||||||
Common Stock | Director | ||||||||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||||||||
Common stock issued for services (in shares) | 117,316 | |||||||||||||||
Common Stock | Former Director | ||||||||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||||||||
Common stock issued for services (in shares) | 2,000 | |||||||||||||||
Grant date share price (in dollars per share) | $ / shares | $ 9.95 | |||||||||||||||
Common stock issued for services | $ | $ 19,900 | |||||||||||||||
Equity Distribution Agreement | ||||||||||||||||
Schedule Of Stockholders Equity [Line Items] | ||||||||||||||||
Common stock, capital shares reserved for future issuance, value | $ | $ 12,309,750 | |||||||||||||||
Number of shares sold (in shares) | 449,632 | |||||||||||||||
Sale of stock, gross proceeds (as a percent) | 3% | |||||||||||||||
Reimbursement expenses | $ | $ 50,000 | |||||||||||||||
Total expenses for offering | $ | $ 50,000 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock (Details) - Restricted Stock - USD ($) | Apr. 30, 2022 | Apr. 30, 2021 |
Stockholders Equity [Line Items] | ||
Unvested shares of restricted common stock outstanding (in shares) | 0 | 8,224 |
Total unrecognized compensation expense | $ 0 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Restricted Stock Unit Activity (Details) - RSUs - $ / shares | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Number of Shares | ||
Balance Outstanding at April 30, 2021 (in shares) | 549,972 | |
Granted (in shares) | 520,142 | 275,521 |
Forfeits (in shares) | (54,610) | |
Vested (in shares) | (85,576) | |
Expired (in shares) | 0 | |
Balance Outstanding, April 30, 2022 (in shares) | 929,928 | 549,972 |
Weighted Average Grant Date Fair Value | ||
Balance Outstanding at April 30, 2021 (in dollars per share) | $ 6.58 | |
Granted (in dollars per share) | 5.58 | |
Forfeits (in dollars per share) | 8.49 | |
Vested (in dollars per share) | 4.27 | |
Expired (in dollars per share) | 0 | |
Balance Outstanding at April 30, 2022 (in dollars per share) | $ 6.12 | $ 6.58 |
Stockholders' Equity - Restri_2
Stockholders' Equity - Restricted Stock Units (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Aug. 16, 2021 | Aug. 12, 2021 | Jul. 21, 2021 | Feb. 04, 2020 | Jan. 31, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share price (in dollars per share) | $ 9.49 | ||||||
Total stock-based compensation expense | $ 2,534,665 | $ 3,958,085 | |||||
RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 520,142 | 275,521 | |||||
Grant date fair value | $ 1,000,000 | ||||||
Share price (in dollars per share) | $ 6.48 | ||||||
Weighted average recognition period | 1 year 5 months 26 days | 1 year 8 months 19 days | |||||
Amortization expense | $ 400,000 | $ 1,200,000 | |||||
Award vesting period | 3 years | ||||||
Unvested shares of restricted common stock outstanding (in shares) | 929,928 | 549,972 | |||||
Total unrecognized compensation expense | $ 3,947,815 | $ 3,600,000 | |||||
Vested (in dollars per share) | $ 4.27 | ||||||
Total stock-based compensation expense | $ 2,095,533 | 3,335,250 | |||||
Fair value of RSUs | 2,500,000 | ||||||
Total unrecognized compensation expense | $ 3,600,000 | ||||||
RSUs | 2018 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average recognition period | 3 years | ||||||
Amortization expense | $ 440,450 | ||||||
RSUs | Share-Based Payment Arrangement, Employee | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 410,000 | ||||||
RSUs | Share-based Payment Arrangement, Tranche Three | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average recognition period | 4 years | ||||||
Unvested shares of restricted common stock outstanding (in shares) | 195,000 | 195,000 | |||||
Minimum closing price of common stock (in dollars per share) | $ 12 | ||||||
Consecutive trading days | 20 days | ||||||
Total unrecognized compensation expense | $ 1,200,000 | ||||||
RSUs | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercise price (in dollars per share) | $ 5.92 | ||||||
RSUs | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercise price (in dollars per share) | $ 12.78 | ||||||
RSUs | Chief Financial Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 125,000 | ||||||
Grant date fair value | $ 725,000 | ||||||
Share price (in dollars per share) | $ 5.80 | ||||||
RSUs | Chief Academic Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 80,000 | ||||||
RSUs | Chief Operating Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 80,000 | ||||||
RSUs | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 125,000 | ||||||
Grant date fair value | $ 873,750 | ||||||
Share price (in dollars per share) | $ 6.99 | ||||||
Amortization expense | $ 242,708 | ||||||
Amortization period | 3 years | ||||||
Options term | 3 years | ||||||
RSUs | Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 110,142 | ||||||
Grant date fair value | $ 266,988 | ||||||
Award vesting period | 3 years | ||||||
RSUs | Employees | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercise price (in dollars per share) | $ 2.09 | ||||||
RSUs | Employees | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercise price (in dollars per share) | $ 6.50 | ||||||
RSUs | Board of Directors | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 15,791 | ||||||
Vested (in dollars per share) | $ 11.13 | ||||||
Total stock-based compensation expense | $ 175,754 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Warrants (Details) - Warrant - USD ($) | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | |
Number of Shares | |||
Balance Outstanding, April 30, 2021 (in shares) | 374,174 | ||
Granted (in shares) | 275,000 | ||
Exercised (in shares) | 0 | ||
Surrendered (in shares) | 0 | ||
Expired (in shares) | 0 | ||
Balance Outstanding, April 30, 2022 (in shares) | 649,174 | 374,174 | 649,174 |
Exercisable, April 30, 2022 (in shares) | 624,174 | 624,174 | |
Weighted Average Exercise Price | |||
Balance Outstanding, April 30, 2021 (in dollars per share) | $ 6.37 | ||
Granted (in dollars per share) | 2.43 | ||
Exercised (in dollars per share) | 0 | ||
Surrendered (in dollars per share) | 0 | ||
Expired (in dollars per share) | 0 | ||
Balance Outstanding, April 30, 2022 (in dollars per share) | $ 4.70 | $ 6.37 | 4.70 |
Exercise price of options (in dollars per share) | $ 4.61 | $ 4.61 | |
Weighted Average Remaining Contractual Term | |||
Balance Outstanding, April 30, 2021 | 1 year 11 months 15 days | 1 year 10 months 24 days | |
Granted | 4 years 9 months 18 days | ||
Balance Outstanding, April 30, 2022 | 1 year 11 months 15 days | 1 year 10 months 24 days | |
Exercisable, April 30, 2022 | 2 years 5 months 23 days | ||
Aggregate Intrinsic Value | |||
Balance Outstanding, April 30, 2021 | $ 0 | ||
Balance Outstanding, April 30, 2022 | $ 0 | $ 0 | 0 |
Exercisable, April 30, 2022 | $ 0 | $ 0 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Outstanding and Exercisable Warrants (Details) | 12 Months Ended |
Apr. 30, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding (in shares) | shares | 860,182 |
Exercisable (in shares) | shares | 840,385 |
Warrant | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercisable (in shares) | shares | 624,174 |
Warrant | Warrant | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding (in shares) | shares | 649,174 |
Warrant | $1.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Minimum exercise price (in dollars per share) | $ 1 |
Maximum exercise price (in dollars per share) | 1 |
Weighted average exercise price (in dollars per share) | $ 1 |
Outstanding (in shares) | shares | 200,000 |
Weighted average exercise price (in dollars per share) | $ 1 |
Weighted average remaining life (in years) | 4 years 11 months 26 days |
Exercisable (in shares) | shares | 200,000 |
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) | shares | 50,000 |
Weighted average exercise price (in dollars per share) | $ 4.89 |
Weighted average remaining life (in years) | 1 year 11 months 12 days |
Exercisable (in shares) | 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) | shares | 50,000 |
Weighted average exercise price (in dollars per share) | $ 5.85 |
Weighted average remaining life (in years) | 4 years 4 months 2 days |
Exercisable (in shares) | shares | 50,000 |
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) | shares | 100,000 |
Weighted average exercise price (in dollars per share) | $ 6 |
Weighted average remaining life (in years) | 1 year 10 months 6 days |
Exercisable (in shares) | shares | 100,000 |
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) | shares | 224,174 |
Weighted average exercise price (in dollars per share) | $ 6.87 |
Weighted average remaining life (in years) | 2 months 26 days |
Exercisable (in shares) | shares | 224,174 |
Warrant | $6.99 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Minimum exercise price (in dollars per share) | $ 6.99 |
Maximum exercise price (in dollars per share) | 6.99 |
Weighted average exercise price (in dollars per share) | $ 6.99 |
Outstanding (in shares) | shares | 25,000 |
Weighted average exercise price (in dollars per share) | $ 0 |
Stockholders' Equity - Warrants
Stockholders' Equity - Warrants (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 22, 2022 | Aug. 31, 2021 | Jul. 21, 2021 | Jun. 05, 2020 | Mar. 06, 2019 | Jul. 31, 2020 | Apr. 30, 2022 | Apr. 30, 2021 | Apr. 25, 2022 | Jun. 08, 2020 | Nov. 05, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Deferred financing costs | $ 369,902 | $ 18,056 | |||||||||
Amortization of deferred financing costs | 103,454 | 164,362 | |||||||||
Common stock issued for warrants exercised for cash | 0 | 1,081,792 | |||||||||
Modification charge for warrants exercised | $ 25,966 | $ 25,966 | |||||||||
Cooperman Warrants | |||||||||||
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) | 192,049 | ||||||||||
Decrease in exercise price of common stock purchase warrants | 5% | ||||||||||
Cooperman Warrants | Loan Agreements | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Warrants granted, exercise price (in dollars per share) | $ 5.70 | $ 6 | |||||||||
Warrant | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period of warrant | 5 years | 5 years | |||||||||
Leon and Toby Cooperman Family Foundation | Warrant | |||||||||||
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) | 50,000 | ||||||||||
Exercise price (in dollars per share) | $ 5.85 | ||||||||||
Exercise period | 5 years | ||||||||||
Amortization of deferred financing costs | 68,932 | ||||||||||
Former Board of Director | Warrant | |||||||||||
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) | 25,000 | ||||||||||
Vesting period of warrant | 3 years | ||||||||||
Exercise price (in dollars per share) | $ 6.99 | ||||||||||
Exercise period | 5 years | ||||||||||
Warrants and rights outstanding | $ 84,000 | ||||||||||
Amortization expense | 21,000 | ||||||||||
Intercreditor Agreement | Warrant | |||||||||||
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) | 100,000 | ||||||||||
Vesting period of warrant | 60 months | ||||||||||
Exercise price (in dollars per share) | $ 1 | ||||||||||
Exercise period | 5 years | ||||||||||
Warrants and rights outstanding | $ 118,000 | ||||||||||
Revolving Credit Facility | 2022 Revolving Credit Facility | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Deferred financing costs | $ 118,000 | ||||||||||
Revolving Credit Facility | 2022 Revolving Credit Facility | Warrant | |||||||||||
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) | 100,000 | ||||||||||
Exercise price (in dollars per share) | $ 1 | ||||||||||
Revolving Credit Facility | Credit Facility Agreement | Cooperman Warrants | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Exercise price (in dollars per share) | $ 5.56 | $ 5.85 | |||||||||
Revolving Credit Facility | Credit Facility Agreement | Warrant | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period of warrant | 14 months | ||||||||||
Warrants and rights outstanding | $ 137,500 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation costs | $ 5,446 | |
Stock Incentive Plan and Stock Option Grants to Employees and Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 0 | 0 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average recognition period | 5 months 1 day |
Stockholders' Equity - Schedu_4
Stockholders' Equity - Schedule of Stock Options Activity (Details) - USD ($) | 12 Months Ended | |||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2022 | Apr. 30, 2021 | |
Number of Shares | ||||
Exercised (in shares) | (200,000) | (52,778) | ||
Balance Outstanding, April 30, 2022 (in shares) | 860,182 | 860,182 | ||
Exercisable, April 30, 2022 (in shares) | 840,385 | 840,385 | ||
Stock Incentive Plan and Stock Option Grants to Employees and Directors | ||||
Number of Shares | ||||
Balance Outstanding, April 30, 2021 (in shares) | 1,214,473 | |||
Granted (in shares) | 0 | 0 | ||
Exercised (in shares) | (258,419) | |||
Forfeited (in shares) | (7,297) | |||
Expired (in shares) | (88,575) | |||
Balance Outstanding, April 30, 2022 (in shares) | 860,182 | 1,214,473 | 860,182 | 1,214,473 |
Exercisable, April 30, 2022 (in shares) | 840,385 | 840,385 | ||
Weighted Average Exercise Price | ||||
Balance Outstanding, April 30, 2021 (in dollars per share) | $ 6.24 | |||
Granted (in dollars per share) | 0 | |||
Exercised (in dollars per share) | 5.60 | |||
Forfeited (in dollars per share) | 2.89 | |||
Expired (in dollars per share) | 0.83 | |||
Balance Outstanding, April 30, 2022 (in dollars per share) | $ 7.03 | $ 6.24 | 7.03 | $ 6.24 |
Exercisable, April 30, 2022 (in dollars per share) | $ 7.08 | $ 7.08 | ||
Weighted Average Remaining Contractual Term | ||||
Balance Outstanding, April 30, 2021 | 1 year 3 months | 1 year 10 months 17 days | ||
Balance Outstanding, April 30, 2022 | 1 year 3 months | 1 year 10 months 17 days | ||
Exercisable, April 30, 2022 | 1 year 2 months 26 days | |||
Aggregate Intrinsic Value | ||||
Balance Outstanding, April 30, 2021 | $ 204,719 | |||
Balance Outstanding, April 30, 2022 | $ 0 | $ 204,719 | 0 | $ 204,719 |
Exercisable, April 30, 2022 | $ 0 | $ 0 |
Stockholders' Equity - Schedu_5
Stockholders' Equity - Schedule of All Options and Exercisable Options (Details) | 12 Months Ended |
Apr. 30, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
ALL OPTIONS, Outstanding No. of Options | shares | 860,182 |
EXERCISABLE OPTIONS, Exercisable No. of Options | shares | 840,385 |
$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 | $ 3.82 |
ALL OPTIONS, Outstanding No. of Options | shares | 63,165 |
EXERCISABLE OPTIONS, Weighted Average Exercise Price | $ 4.50 |
EXERCISABLE OPTIONS, Weighted Average Remaining Life In Years | 1 year 5 months 8 days |
EXERCISABLE OPTIONS, Exercisable No. of Options | shares | 51,998 |
$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 | shares | 138,176 |
EXERCISABLE OPTIONS, Weighted Average Exercise Price | $ 4.98 |
EXERCISABLE OPTIONS, Weighted Average Remaining Life In Years | 1 year 8 months 26 days |
EXERCISABLE OPTIONS, Exercisable No. of Options | shares | 137,543 |
$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 | $ 5.95 |
ALL OPTIONS, Outstanding No. of Options | shares | 28,000 |
EXERCISABLE OPTIONS, Weighted Average Exercise Price | $ 5.95 |
EXERCISABLE OPTIONS, Weighted Average Remaining Life In Years | 3 months 21 days |
EXERCISABLE OPTIONS, Exercisable No. of Options | shares | 28,000 |
$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 | $ 7.45 |
ALL OPTIONS, Outstanding No. of Options | shares | 473,092 |
EXERCISABLE OPTIONS, Weighted Average Exercise Price | $ 7.46 |
EXERCISABLE OPTIONS, Weighted Average Remaining Life In Years | 1 year 3 months 25 days |
EXERCISABLE OPTIONS, Exercisable No. of Options | shares | 465,095 |
$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 | $ 8.98 |
ALL OPTIONS, Outstanding No. of Options | shares | 157,749 |
EXERCISABLE OPTIONS, Weighted Average Exercise Price | $ 8.98 |
EXERCISABLE OPTIONS, Weighted Average Remaining Life In Years | 8 months 8 days |
EXERCISABLE OPTIONS, Exercisable No. of Options | shares | 157,749 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Schedule Of Stockholders Equity [Line Items] | ||
Total stock-based compensation expense | $ 2,534,665 | $ 3,958,085 |
RSUs | ||
Schedule Of Stockholders Equity [Line Items] | ||
Total stock-based compensation expense | 2,095,533 | 3,335,250 |
Restricted Stock | ||
Schedule Of Stockholders Equity [Line Items] | ||
Total stock-based compensation expense | 307,283 | 62,007 |
Stock options | ||
Schedule Of Stockholders Equity [Line Items] | ||
Total stock-based compensation expense | $ 131,849 | $ 560,828 |
Stockholders' Equity - Treasury
Stockholders' Equity - Treasury Stock (Details) - USD ($) | 12 Months Ended | ||
Oct. 16, 2020 | Apr. 30, 2021 | Apr. 30, 2022 | |
Schedule Of Stockholders Equity [Line Items] | |||
Treasury stock (in shares) | 155,486 | 155,486 | |
Treasury stock, value | $ 1,817,414 | $ 1,817,414 | |
Treasury shares cancelled (in shares) | 16,667 | ||
Retirement of treasury stock | 0 | ||
Treasury Stock | |||
Schedule Of Stockholders Equity [Line Items] | |||
Retirement of treasury stock | $ 70,000 | $ (70,000) |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended | |
Apr. 30, 2022 USD ($) ft² | Apr. 30, 2021 USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Amount of office and classroom space leased (in square feet) | ft² | 191,328 | |
Lease extension term | 5 years | |
Total future minimum lease payments (as a percent) | 96% | |
Incremental borrowing rate (as a percent) | 12% | |
Amortization of leasehold improvements | $ 661,131 | $ 306,217 |
Lease expense | $ 3,868,333 | $ 2,775,000 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 6 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 8 years |
Leases - Schedule of Right-of-U
Leases - Schedule of Right-of-Use Assets (Details) - USD ($) | Apr. 30, 2022 | Apr. 30, 2021 |
Leases [Abstract] | ||
ROU assets - Operating facility leases | $ 15,958,721 | $ 14,308,296 |
Less: accumulated amortization | (3,312,771) | (1,593,433) |
Total ROU assets | $ 12,645,950 | $ 12,714,863 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Liabilities (Details) - USD ($) | Apr. 30, 2022 | Apr. 30, 2021 |
Leases [Abstract] | ||
Total lease liabilities | $ 22,517,355 | $ 19,946,229 |
Reduction of lease liabilities | (3,671,466) | (1,617,600) |
Total operating lease obligations | $ 18,845,889 | $ 18,328,629 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments Under Operating Leases (Details) - USD ($) | Apr. 30, 2022 | Apr. 30, 2021 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2023 | $ 4,323,543 | |
2024 | 4,021,638 | |
2025 | 3,805,716 | |
2026 | 3,911,083 | |
2027 | 3,991,386 | |
Thereafter | 7,971,839 | |
Total future minimum lease payments | 28,025,205 | |
Less: imputed interest | (9,179,316) | |
Present value of operating lease liabilities | 18,845,889 | $ 18,328,629 |
Tampa, Florida | ||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
Leases not yet commenced, liability | $ 3,700,000 |
Leases - Schedule of Balance Sh
Leases - Schedule of Balance Sheet Information Related to Leases (Details) - USD ($) | Apr. 30, 2022 | Apr. 30, 2021 |
Balance Sheet Classification | ||
Operating lease obligations, current portion | $ 2,036,570 | $ 2,029,821 |
Operating lease obligations, less current portion | 16,809,319 | 16,298,808 |
Total operating lease obligations | $ 18,845,889 | $ 18,328,629 |
Leases - Schedule of Other Info
Leases - Schedule of Other Information Related to Leases (Details) | Apr. 30, 2022 | Apr. 30, 2021 |
Other Information | ||
Weighted average remaining lease term (in years) | 6 years 9 months 21 days | 7 years 5 months 15 days |
Weighted average discount rate | 12% | 12% |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregated Revenue (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 76,694,366 | $ 67,812,520 |
Tuition | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 67,200,354 | 59,970,120 |
Course Fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 7,982,689 | 7,088,539 |
Book Fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 42,777 | 150,969 |
Exam Fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 799,367 | 233,820 |
Service Fee | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 669,179 | $ 369,072 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 5,889,911 | $ 6,825,014 |
Total revenue earned, deferred revenue | $ 5,087,417 | |
Revenue Benchmark | Non-US | Customer Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenues from students outside the united states (as a percent) | 2% | 1% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Current income tax expense: | ||
Federal | $ 0 | $ 0 |
State | 27,400 | 32,644 |
Foreign | 400,000 | 0 |
Total | 427,400 | 32,644 |
Deferred income tax expense: | ||
Federal | 0 | 0 |
State | 0 | 0 |
Foreign | 0 | 0 |
Total | 0 | 0 |
Total Income tax expense | $ 427,400 | $ 32,644 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Tax Assets and Liabilities (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Deferred tax assets: | ||
Net operating loss carryforward | $ 18,095,495 | $ 15,737,351 |
Allowance for doubtful accounts | 897,965 | 1,009,273 |
Deferred rent | 192,284 | 252,479 |
Stock-based compensation | 870,245 | 0 |
Contributions carryforward | 11,089 | 11,013 |
Accrued compensation | 43,176 | 0 |
Warrant amortization | 17,888 | 0 |
Intangibles | 0 | 0 |
Interest expense limitation carryforward | 717,919 | 86,485 |
Total deferred tax assets | 20,846,061 | 17,096,601 |
Deferred tax liabilities: | ||
Property and equipment | (1,000,092) | (356,473) |
Intangibles | (463,074) | (186,063) |
Stock-based compensation | 0 | (1,778,017) |
Total deferred tax liabilities | (1,463,166) | (2,320,553) |
Deferred tax assets, net | 19,382,895 | 14,776,048 |
Valuation allowance: | ||
Valuation allowance, beginning of year | (14,776,048) | (12,399,948) |
Increase during period | (4,606,847) | (2,376,100) |
Valuation allowance, ending balance | (19,382,895) | (14,776,048) |
Net deferred tax asset | $ 0 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 |
Income Tax Contingency [Line Items] | |||
Valuation allowance | $ 19,382,895 | $ 14,776,048 | $ 12,399,948 |
Net operating loss carry forwards | 69,700,000 | ||
Operating loss carryforwards subject to expiration | 28,200,000 | ||
Tax Year 2013 to 2021 | |||
Income Tax Contingency [Line Items] | |||
Reserve for estimate of foreign income tax liability | 300,000 | ||
Tax Year 2022 | |||
Income Tax Contingency [Line Items] | |||
Reserve for estimate of foreign income tax liability | $ 100,000 |
Income Taxes - Schedule of In_2
Income Taxes - Schedule of Income Tax Reconciliation (Details) | 12 Months Ended | |
Apr. 30, 2022 | Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Statutory Rate applied to net loss before income taxes | 21% | 21% |
State income taxes, net of federal tax benefit | 4.20% | 4.40% |
Effect on change in federal tax rates | 0% | 0% |
Federal and State Minimum Taxes | 0% | (0.20%) |
Permanent Differences | (1.90%) | (0.20%) |
Foreign income tax | (4.40%) | 0% |
Change in Tax Rates - States | 1.10% | (2.80%) |
Change in Tax Credits | 0% | 0% |
Change in Valuation Allowance | (50.30%) | (22.80%) |
Other | 25.60% | 0.30% |
Effective Income Tax Rate | (4.70%) | (0.30%) |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Apr. 30, 2022 | Jan. 31, 2022 | Oct. 31, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2022 | Apr. 30, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Revenue | $ 19,378,362 | $ 18,944,798 | $ 18,940,211 | $ 19,430,995 | $ 19,051,076 | $ 16,624,837 | $ 16,971,045 | $ 15,165,562 | $ 76,694,366 | $ 67,812,520 |
Cost of revenue (exclusive of depreciation and amortization) | 8,601,093 | 9,275,419 | 8,789,201 | 8,593,568 | 8,721,479 | 7,559,951 | 7,324,780 | 5,847,523 | 35,259,281 | 29,453,733 |
Operating loss | (1,738,684) | (3,335,644) | (2,657,536) | (1,238,459) | (2,295,735) | (2,784,825) | (2,797,247) | (366,341) | (8,970,323) | (8,244,148) |
Loss before income taxes | (2,089,758) | (3,502,387) | (2,846,358) | (719,878) | (2,332,432) | (2,804,806) | (4,333,995) | (945,096) | (9,158,381) | (10,416,329) |
Net loss | $ (2,128,638) | $ (3,733,997) | $ (2,852,258) | $ (870,888) | $ (2,319,986) | $ (2,815,266) | $ (4,370,525) | $ (943,196) | $ (9,585,781) | $ (10,448,973) |
Net loss per share allocable to common stockholders - basic (in dollars per share) | $ (0.09) | $ (0.15) | $ (0.11) | $ (0.03) | $ (0.09) | $ (0.11) | $ (0.19) | $ (0.04) | $ (0.38) | $ (0.44) |
Net loss per share allocable to common stockholders - diluted (in dollars per share) | $ (0.09) | $ (0.15) | $ (0.11) | $ (0.03) | $ (0.09) | $ (0.11) | $ (0.19) | $ (0.04) | $ (0.38) | $ (0.44) |