COVER PAGE
COVER PAGE - shares | 6 Months Ended | |
Oct. 31, 2022 | Dec. 09, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2022 | |
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 $0.001 | |
Trading Symbol | ASPU | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 25,305,363 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --04-30 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
Entity Central Index Key | 0001487198 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 2,306,480 | $ 6,482,750 |
Restricted cash | 6,423,525 | 6,433,397 |
Accounts receivable, net of allowance of $3,587,840 and $3,460,288, respectively | 22,391,574 | 24,359,241 |
Prepaid expenses | 1,600,945 | 1,358,635 |
Other current assets | 775,524 | 748,568 |
Total current assets | 33,498,048 | 39,382,591 |
Property and equipment: | ||
Property and equipment, gross | 23,152,804 | 21,892,480 |
Less: accumulated depreciation and amortization | (10,206,811) | (8,395,001) |
Total property and equipment, net | 12,945,993 | 13,497,479 |
Goodwill | 5,011,432 | 5,011,432 |
Long-term contractual accounts receivable | 16,335,657 | 11,406,525 |
Deferred financing costs | 331,423 | 369,902 |
Operating lease right-of-use assets, net | 14,271,481 | 12,645,950 |
Deposits and other assets | 536,517 | 578,125 |
Total assets | 91,108,759 | 91,066,051 |
Current liabilities: | ||
Accounts payable | 2,814,399 | 1,893,287 |
Accrued expenses | 3,147,485 | 2,821,432 |
Deferred revenue | 8,772,017 | 5,889,911 |
Due to students | 3,165,651 | 4,063,811 |
Operating lease obligations, current portion | 2,204,342 | 2,036,570 |
Other current liabilities | 554,946 | 130,262 |
Total current liabilities | 20,658,840 | 16,835,273 |
Long-term debt, net | 14,904,556 | 14,875,735 |
Operating lease obligations, less current portion | 18,455,549 | 16,809,319 |
Total liabilities | 54,018,945 | 48,520,327 |
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 October 31, 2022 and April 30, 2022 | 0 | 0 |
Common stock, $0.001 par value; 60,000,000 shares authorized, 25,460,849 issued and 25,305,363 outstanding at October 31, 2022; 25,357,764 issued and 25,202,278 outstanding at April 30, 2022 | 25,461 | 25,358 |
Additional paid-in capital | 112,634,162 | 112,081,564 |
Treasury stock (155,486 at both October 31, 2022 and April 30, 2022) | (1,817,414) | (1,817,414) |
Accumulated deficit | (73,752,395) | (67,743,784) |
Total stockholders’ equity | 37,089,814 | 42,545,724 |
Total liabilities and stockholders’ equity | 91,108,759 | 91,066,051 |
Computer equipment and hardware | ||
Property and equipment: | ||
Property and equipment, gross | 1,573,046 | 1,516,475 |
Furniture and fixtures | ||
Property and equipment: | ||
Property and equipment, gross | 2,219,245 | 2,193,261 |
Leasehold improvements | ||
Property and equipment: | ||
Property and equipment, gross | 7,613,240 | 7,179,896 |
Instructional equipment | ||
Property and equipment: | ||
Property and equipment, gross | 756,568 | 715,652 |
Software | ||
Property and equipment: | ||
Property and equipment, gross | 10,990,705 | 10,285,096 |
Construction in progress | ||
Property and equipment: | ||
Property and equipment, gross | 0 | 2,100 |
Intangible assets, net | ||
Property and equipment: | ||
Intangible assets, net | 7,900,000 | 7,900,000 |
Courseware, net | ||
Property and equipment: | ||
Intangible assets, net | $ 278,208 | $ 274,047 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 3,587,840 | $ 3,460,288 |
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 issued (in shares) | 0 | 0 |
Preferred stock 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 | 60,000,000 |
Common stock issued (in shares) | 25,460,849 | 25,357,764 |
Common stock outstanding (in shares) | 25,305,363 | 25,202,278 |
Treasury stock (in shares) | 155,486 | 155,486 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 17,074,547 | $ 18,940,211 | $ 35,968,460 | $ 38,371,206 |
Operating expenses: | ||||
Cost of revenue (exclusive of depreciation and amortization shown separately below) | 6,347,008 | 8,789,201 | 16,552,559 | 17,382,769 |
General and administrative | 10,883,118 | 11,641,312 | 21,415,138 | 22,587,789 |
Bad debt expense | 450,000 | 350,000 | 800,000 | 700,000 |
Depreciation and amortization | 935,070 | 817,234 | 1,856,178 | 1,596,643 |
Total operating expenses | 18,615,196 | 21,597,747 | 40,623,875 | 42,267,201 |
Operating loss | (1,540,649) | (2,657,536) | (4,655,415) | (3,895,995) |
Other income (expense): | ||||
Interest expense | (710,372) | (139,502) | (1,291,665) | (173,041) |
Other income (expense), net | 3,882 | (49,320) | 15,291 | 502,800 |
Total other (expense) income, net | (706,490) | (188,822) | (1,276,374) | 329,759 |
Loss before income taxes | (2,247,139) | (2,846,358) | (5,931,789) | (3,566,236) |
Income tax expense | 46,501 | 5,900 | 76,822 | 156,910 |
Net loss | $ (2,293,640) | $ (2,852,258) | $ (6,008,611) | $ (3,723,146) |
Net loss per share - basic (in dollars per share) | $ (0.09) | $ (0.11) | $ (0.24) | $ (0.15) |
Net loss per share - diluted (in dollars per share) | $ (0.09) | $ (0.11) | $ (0.24) | $ (0.15) |
Weighted average number of common stock outstanding - basic (in shares) | 25,282,947 | 24,957,046 | 25,242,833 | 24,935,793 |
Weighted average number of common stock outstanding - diluted (in shares) | 25,282,947 | 24,957,046 | 25,242,833 | 24,935,793 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit |
Beginning balance (in shares) at Apr. 30, 2021 | 25,066,297 | ||||
Beginning balance at Apr. 30, 2021 | $ 49,090,474 | $ 25,067 | $ 109,040,824 | $ (1,817,414) | $ (58,158,003) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 1,264,870 | 1,264,870 | |||
Common stock issued for vested restricted stock units (in shares) | 34,989 | ||||
Common stock issued for vested restricted stock units | 0 | $ 35 | (35) | ||
Common stock issued for stock options exercised for cash (in shares) | 16,752 | ||||
Common stock issued for stock options exercised for cash | 56,034 | $ 17 | 56,017 | ||
Common stock issued for cashless stock options exercised (in shares) | 30,156 | ||||
Common stock issued for cashless stock options exercised | 0 | $ 30 | (30) | ||
Amortization of warrant based cost | 27,583 | 27,583 | |||
Warrants issued for deferred financing costs related to Credit Facility | 137,500 | 137,500 | |||
Net loss | (3,723,146) | (3,723,146) | |||
Ending balance (in shares) at Oct. 31, 2021 | 25,148,194 | ||||
Ending balance at Oct. 31, 2021 | 46,853,315 | $ 25,149 | 110,526,729 | (1,817,414) | (61,881,149) |
Beginning balance (in shares) at Jul. 31, 2021 | 25,087,051 | ||||
Beginning balance at Jul. 31, 2021 | 48,796,304 | $ 25,088 | 109,617,521 | (1,817,414) | (59,028,891) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 722,158 | 722,158 | |||
Common stock issued for vested restricted stock units (in shares) | 19,332 | ||||
Common stock issued for vested restricted stock units | 0 | $ 19 | (19) | ||
Common stock issued for stock options exercised for cash (in shares) | 11,655 | ||||
Common stock issued for stock options exercised for cash | 33,486 | $ 12 | 33,474 | ||
Common stock issued for cashless stock options exercised (in shares) | 30,156 | ||||
Common stock issued for cashless stock options exercised | 0 | $ 30 | (30) | ||
Amortization of warrant based cost | 16,125 | 16,125 | |||
Warrants issued for deferred financing costs related to Credit Facility | 137,500 | 137,500 | |||
Net loss | (2,852,258) | (2,852,258) | |||
Ending balance (in shares) at Oct. 31, 2021 | 25,148,194 | ||||
Ending balance at Oct. 31, 2021 | $ 46,853,315 | $ 25,149 | 110,526,729 | (1,817,414) | (61,881,149) |
Beginning balance (in shares) at Apr. 30, 2022 | 25,202,278 | 25,357,764 | |||
Beginning balance at Apr. 30, 2022 | $ 42,545,724 | $ 25,358 | 112,081,564 | (1,817,414) | (67,743,784) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 504,666 | 504,666 | |||
Common stock issued for vested restricted stock units (in shares) | 66,245 | ||||
Common stock issued for vested restricted stock units | 0 | $ 66 | (66) | ||
Common stock issued for services (in shares) | 25,000 | ||||
Common stock issued for services | 24,500 | $ 25 | 24,475 | ||
Common stock issued for equity raise, net of underwriter costs (in shares) | 11,840 | ||||
Common stock issued for equity raise, net of underwriter costs | 9,535 | $ 12 | 9,523 | ||
Amortization of warrant based cost | 14,000 | 14,000 | |||
Net loss | $ (6,008,611) | (6,008,611) | |||
Ending balance (in shares) at Oct. 31, 2022 | 25,305,363 | 25,460,849 | |||
Ending balance at Oct. 31, 2022 | $ 37,089,814 | $ 25,461 | 112,634,162 | (1,817,414) | (73,752,395) |
Beginning balance (in shares) at Jul. 31, 2022 | 25,357,764 | ||||
Beginning balance at Jul. 31, 2022 | 38,884,083 | $ 25,358 | 112,134,894 | (1,817,414) | (71,458,755) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 458,336 | 458,336 | |||
Common stock issued for vested restricted stock units (in shares) | 66,245 | ||||
Common stock issued for vested restricted stock units | 0 | $ 66 | (66) | ||
Common stock issued for services (in shares) | 25,000 | ||||
Common stock issued for services | 24,500 | $ 25 | 24,475 | ||
Common stock issued for equity raise, net of underwriter costs (in shares) | 11,840 | ||||
Common stock issued for equity raise, net of underwriter costs | 9,535 | $ 12 | 9,523 | ||
Amortization of warrant based cost | 7,000 | 7,000 | |||
Net loss | $ (2,293,640) | (2,293,640) | |||
Ending balance (in shares) at Oct. 31, 2022 | 25,305,363 | 25,460,849 | |||
Ending balance at Oct. 31, 2022 | $ 37,089,814 | $ 25,461 | $ 112,634,162 | $ (1,817,414) | $ (73,752,395) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (6,008,611) | $ (3,723,146) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Bad debt expense | 800,000 | 700,000 |
Depreciation and amortization | 1,856,178 | 1,596,643 |
Stock-based compensation | 504,666 | 1,264,870 |
Amortization of warrant-based cost | 14,000 | 27,583 |
Amortization of deferred financing costs | 269,133 | 19,643 |
Amortization of debt discounts | 59,000 | 18,056 |
Common stock issued for services | 24,500 | 0 |
Loss on asset disposition | 0 | 36,442 |
Non-cash lease benefit | (229,809) | (63,099) |
Tenant improvement allowances received from landlords | 418,280 | 816,591 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,761,463) | (7,699,220) |
Prepaid expenses | (242,310) | (520,685) |
Other current assets | (26,956) | 47,901 |
Accounts receivable, other | 0 | 45,329 |
Deposits and other assets | 41,608 | (15,357) |
Accounts payable | 921,112 | 636,136 |
Accrued expenses | 326,053 | (268,088) |
Due to students | (898,160) | 472,159 |
Deferred revenue | 2,882,106 | 3,366,227 |
Other current liabilities | 424,685 | (211,918) |
Net cash used in operating activities | (2,625,988) | (3,453,933) |
Cash flows from investing activities: | ||
Purchases of courseware and accreditation | (48,532) | (149,751) |
Disbursements for reimbursable leasehold improvements | (418,280) | (816,591) |
Purchases of property and equipment | (842,044) | (1,883,310) |
Net cash used in investing activities | (1,308,856) | (2,849,652) |
Cash flows from financing activities: | ||
Proceeds from sale of common stock, net of underwriter costs | 9,535 | 0 |
Payment of commitment fee for 2022 Credit Facility | (200,000) | 0 |
Payments of deferred financing costs | (60,833) | 0 |
Borrowings under the 2018 Credit Facility | 0 | 5,000,000 |
Proceeds from stock options exercised | 0 | 56,034 |
Net cash (used in) provided by financing activities | (251,298) | 5,056,034 |
Net decrease in cash, cash equivalents and restricted cash | (4,186,142) | (1,247,551) |
Cash, cash equivalents and restricted cash at beginning of period | 12,916,147 | 13,666,079 |
Cash, cash equivalents and restricted cash at end of period | 8,730,005 | 12,418,528 |
Supplemental disclosure cash flow information: | ||
Cash paid for interest | 802,167 | 98,904 |
Cash paid for income taxes | 22,522 | 157,552 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Warrants issued as part of the 2018 Credit Facility amendment | $ 0 | $ 137,500 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 | Oct. 31, 2021 | Apr. 30, 2021 |
Statement of Cash Flows [Abstract] | ||||
Cash and cash equivalents | $ 2,306,480 | $ 6,482,750 | $ 10,985,131 | |
Restricted cash | 6,423,525 | 6,433,397 | 1,433,397 | |
Total cash, cash equivalents and restricted cash | $ 8,730,005 | $ 12,916,147 | $ 12,418,528 | $ 13,666,079 |
Nature of Operations
Nature of Operations | 6 Months Ended |
Oct. 31, 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 institutionally accredited by the Distance Education Accrediting Council (“DEAC”), an 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. Basis of Presentation Interim Financial Statements The interim unaudited consolidated financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of the Company’s management, all adjustments (consisting of normal recurring adjustments and reclassifications and non-recurring adjustments) necessary to present fairly our results of operations for the three and six months ended October 31, 2022 and 2021, our cash flows for the six months ended October 31, 2022 and 2021, and our consolidated financial position as of October 31, 2022 have been made. The results of operations for such interim periods are not necessarily indicative of the operating results to be expected for the full year. Certain information and disclosures normally included in the notes to the annual consolidated financial statements have been condensed or omitted from these interim unaudited consolidated financial statements. Accordingly, these interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2022 as filed with the SEC on July 29, 2022. The April 30, 2022 consolidated balance sheet is derived from those statements. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Oct. 31, 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. A full listing of our significant accounting policies is described in Note 2. Summary of Significant Accounting Policies of our Annual Report on Form 10-K for the fiscal year ended April 30, 2022 as filed with the SEC on July 29, 2022. 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 October 31, 2022 of $6,423,525 consists of $5 million, which is collateral for an approximately $18.3 million surety bond required by the Arizona State Board for Postsecondary Education, which was reduced to $5.5 million on October 31, 2022 in a revised stipulated agreement (see Note 10. Commitments and Contingencies); $1,173,525 which is collateral for letters of credit for the Aspen University and USU facility operating leases, and a $250,000 compensating balance under a secured credit line. In December 2022, as a result of the revised stipulated agreement with the Arizona State Board for Private Postsecondary Education on October 31, 2022, $1.5 million of the restricted cash associated with the surety bond became unrestricted, providing additional cash for operations. (See Note 11. Subsequent Event.) 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 that the DOE released in connection with the recent full certification of USU (see Note 10. Commitments and Contingencies), 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 October 31, 2022. As of October 31, 2022 and April 30, 2022, the Company maintained deposits exceeding federally insured limits by approximately $3,413,596 and $7,749,715, respectively, held in two separate institutions. Revenue Recognition and Deferred Revenue The Company follows Accounting Standards Codification 606 (ASC 606). ASC 606 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASC also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer purchase orders, including significant judgments. 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 or 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. 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. Net Loss Per Share Net loss per share is based on the weighted average number of shares of common stock outstanding during each period. Summarized below are shares 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 and convertible notes 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. See Note 6. Stockholders’ Equity. October 31, 2022 April 30, 2022 Options to purchase common shares 733,828 860,182 Restricted stock units — — Warrants to purchase common shares 425,000 649,174 Unvested restricted stock 560,352 929,928 Convertible Notes 10,000,000 10,000,000 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 Pronouncement Not Yet Adopted ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("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 does not expect the adoption of the new standard to have a material impact on its consolidated financial statements when adopted on the effective date of May 1, 2023. 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 fiscal year amounts have been reclassified to conform to the current year presentation. The tenant improvement allowances received from landlords balance of $816,591 for the six months ended October 31, 2021, which was previously included in "Purchases of property and equipment" in the accompanying consolidated statements of cash flows, was reclassified to "Disbursements for reimbursable leasehold improvements" to align with the current fiscal year presentation. There is no impact to total cash used in investing activities included in the accompanying consolidated statements of cash flows for the six months ended October 31, 2021. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Oct. 31, 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, net of proceeds, is recognized as either other income or expense. There was no expense impact for such write-offs for the three and six months ended October 31, 2022 and 2021. Software consisted of the following: October 31, April 30, Software $ 10,990,705 $ 10,285,096 Accumulated amortization (6,118,275) (5,170,943) Software, net $ 4,872,430 $ 5,114,153 Depreciation and amortization expense for property and equipment and software is summarized below: Three Months Ended October 31, Six Months Ended October 31, 2022 2021 2022 2021 Depreciation and amortization expense: Property and equipment, excluding software $ 435,552 $ 367,475 $ 864,477 $ 718,848 Software $ 477,169 $ 428,143 $ 947,332 $ 839,804 |
Courseware and Accreditation
Courseware and Accreditation | 6 Months Ended |
Oct. 31, 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 was no expense impact for such write-offs for the three and six months ended October 31, 2022 and 2021. Courseware and accreditation consisted of the following: October 31, 2022 April 30, 2022 Courseware $ 632,313 $ 575,283 Accreditation 59,350 59,350 691,663 634,633 Accumulated amortization (413,455) (360,586) Courseware and accreditation, net $ 278,208 $ 274,047 Amortization expense for courseware and accreditation is summarized below: Three Months Ended October 31, Six Months Ended October 31, 2022 2021 2022 2021 Courseware and accreditation amortization expense $ 22,349 $ 21,185 $ 44,369 $ 37,133 |
Long-term Debt, Net
Long-term Debt, Net | 6 Months Ended |
Oct. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt, Net | Long-term Debt, Net October 31, 2022 April 30, 2022 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 5,000,000 12% Convertible Notes due March 14, 2027 (the "2022 Convertible Notes"); interest payable monthly in arrears 10,000,000 10,000,000 Total long-term debt 15,000,000 15,000,000 Less: Unamortized debt discount (95,444) (124,265) Total long-term debt, net $ 14,904,556 $ 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 (individually a "Lender" and collectively, the "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 previous 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 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 and another $60,833 incurred during August 2022, which has been recorded as a deferred financing cost debt discount and is being amortized over a one-year period in "Interest expense" 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 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 October 31, 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 another 1% commitment fee of $200,000 six months from the closing date, or September 14, 2022, since the revolving credit facility has not been replaced. 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 Notes 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. No lender requests have been made as of the date of this filing. 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), excluding 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 remaining term of the debt. 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 October 31, 2022 were $59,000. See Note 6. Stockholders’ Equity for additional information related to these warrants. On October 31, 2022, Aspen and the Arizona State Board for Private Postsecondary Education entered into a revised stipulated agreement that reduces AU's surety bond requirement from $18.3 million to $5.5 million and requires a civil penalty of $12,000. Other requirements from the April 2022 stipulated Agreement were carried forward to this revised agreement. In December 2022, as a result of the revised stipulated agreement with the Arizona State Board for Private Postsecondary Education on October 31, 2022, $1.5 million of the restricted cash associated with the surety bond became unrestricted, providing additional cash for operations. See Note 11. Subsequent Event. 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 (see below, which were extended by one year). In conjunction with the extension of the 2018 Credit Facility on August 31, 2021, the Company drew down funds of $5,000,000. At each October 31, 2022 and April 30, 2022, there were $5,000,000 outstanding borrowings 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 were recorded 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 October 31, 2022 were $46,233. See Note 6. Stockholders’ Equity for additional information related to these warrants. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Oct. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity AGI maintains two stock-based incentive plans: the 2012 Equity Incentive Plan (the “2012 Plan”) and the 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 on 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 October 31, 2022 and April 30, 2022, there were 1,091,253 and 812,763 shares, respectively, remaining available for future issuance under the 2018 Plan. 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, which was approved at a special meeting of the Company's stockholders held on July 6, 2022. This increase has been retrospectively adjusted to all periods in the accompanying consolidated financial statements. 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. 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 October 31, 2022 and April 30, 2022, we had no shares of preferred stock issued and outstanding. Common Stock At both October 31, 2022 and April 30, 2022, the Company was authorized to issue 60,000,000 shares of common stock, respectively. On August 18, 2022, Aspen Group, Inc. entered into an Equity Distribution Agreement (the “Agreement”) with Northland Securities, Inc. (“Northland”), pursuant to which the Company could issue and sell from time to time, through Northland, shares of the Company’s common stock (the “Shares”), with offering proceeds of up to $3,000,000. Under the Agreement, Northland was entitled to compensation of 3% of the gross proceeds from the sales of the Shares sold under the Agreement. The Company also agreed to reimburse Northland for certain specified expenses, including the fees and disbursements of its legal counsel of approximately $60,000, which is included in "Accrued expenses" in the accompanying consolidated balance sheets. The Company estimates that the total expenses for the offering, excluding compensation and reimbursement payable to Northland under the terms of the Agreement, was approximately $100,000. The Shares were being offered and sold pursuant to a prospectus supplement filed with the Securities and Exchange Commission (the “SEC”) on August 18, 2022 and the accompanying base prospectus which is part of the Company’s effective Registration Statement on Form S-3 (File No. 333-251459) (the “Registration Statement”). The Agreement contains representations, warranties and covenants customary for the transactions of this kind. On October 11, 2022, the Company canceled the Agreement. The Company sold 11,840 shares under the Agreement and received net proceeds of $9,535. On August 4, 2022, the Compensation Committee approved a 25,000 common stock grant to Lampert Capital Advisors for financial advisory services to assist with locating and securing an accounts receivable financing facility. The purpose of the facility is to provide working capital to position the Company for future growth among its online post-licensure nursing degree programs. The grant had a grant date fair value of $24,500 based on a closing stock price of $0.98 per share, and it was fully vested on the grant date. The expense related to this grant for each of the three and six months ended October 31, 2022 was $24,500. The expense is included in "General and administrative" expense in the consolidated statements of operations. Restricted Stock As of both October 31, 2022 and April 30, 2022, there were no unvested shares of restricted common stock outstanding. During the six months ended October 31, 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 October 31, 2022. Restricted Stock Units A summary of the Company’s RSU activity, granted under the 2012 and 2018 Equity Incentive Plans, during the six months ended October 31, 2022 is presented below: Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Unvested balance outstanding, April 30, 2022 929,928 $ 6.12 Granted — — Forfeits (179,883) 7.69 Vested (189,693) 1 0.79 Expired — — Unvested balance outstanding, October 31, 2022 560,352 $ 7.42 ___________________ 1 Includes 123,448 RSUs that will be issued in the third quarter of fiscal year 2023. 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 the three and six months ended October 31, 2022 was $146,817 and $293,633, respectively, which is included in "general and administrative expense" in the accompanying consolidated statement of operations. The amortization expense related to these grants for the three and six months ended October 31, 2021 was $146,817 for each respective period. 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 had 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. The Company was amortizing the expense over three years through July 2024 (the anticipated filing date of the Form 10-K for Fiscal Year 2024). At July 31, 2022, the Company assessed that the performance condition will not be met. Therefore, the cumulative amortization expense related to this grant of $242,708 was reversed, which is included in general and administrative expense in the consolidated statements of operations. The amortization expense related to this grant for the three and six months ended October 31, 2021 was $72,813 and $218,438 , respectively, which is included in "General and administrative" expense in the consolidated statements of operations prior to the reversal. Of the 560,352 unvested RSUs outstanding at October 31, 2022, 162,500 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 are 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 three and six months ended October 31, 2022 was $91,531 and $57,380, respectively, which includes an expense reversal of $139,431 due to the resignation of the Chief Nursing Officer on July 15, 2022. The amortization expense related to these transactions for the three and six months ended October 31, 2021, was $112,155 and $224,311, respectively. The amortization expense is included in general and administrative expense in the consolidated statements of operations. The remaining unvested RSUs during the three and six months ended October 31, 2022 were granted to employees. At October 31, 2022, total unrecognized compensation expense related to unvested RSUs is $2,127,217 and is expected to be recognized over a weighted-average period of approximately 1.30 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 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 six months ended October 31, 2022 is presented below: Warrants Number of Weighted Weighted Aggregate Balance Outstanding, April 30, 2022 649,174 $ 4.70 1.96 $ — Granted — $ — — — Exercised — $ — — — Surrendered — $ — — — Expired (224,174) $ 6.87 — — Balance Outstanding, October 31, 2022 425,000 $ 3.56 3.27 $ — Unvested (16,667) Exercisable, October 31, 2022 408,333 $ 3.42 3.17 $ — OUTSTANDING WARRANTS EXERCISABLE WARRANTS Exercise Weighted Outstanding Weighted Weighted Exercisable $ 1.00 1.00 200,000 $ 1.00 4.48 200,000 $ 4.89 $ 4.89 50,000 $ 4.89 1.44 50,000 $ 5.85 $ 5.85 50,000 $ 5.85 1.35 50,000 $ 6.00 $ 6.00 100,000 $ 6.00 3.84 100,000 $ 6.99 $ 6.99 25,000 $ 6.99 3.72 8,333 425,000 408,333 On April 22, 2022, as consideration for amending the Intercreditor Agreement, the Company issued warrants to 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 5. Long-term Debt, Net. The fair value of the warrants is $118,000 and is being amortized over the remaining term of the debt. The fair value of the warrants is treated as deferred financing costs, a non-current asset, in the accompanying consolidated balance sheets at October 31, 2022 and April 30, 2022. Total unamortized costs at October 31, 2022 and April 30, 2022 was $59,000 and $118,000, respectively. The Company has recognized $29,500 and $59,000 of amortization expense in connection with the fair value of the warrants for the three and six months ended October 31, 2022, which is included in "interest expense" in the accompanying consolidated statement of operations. 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 $11,169 and $22,336 of amortization expense in connection with the fair value of the warrants for the three and six months ended October 31, 2022, 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 $7,000 and $14,000 of amortization expense in connection with the fair value of the warrants for the three and six months ended October 31, 2022, which is included in general and administrative expense in the accompanying consolidated statement of operations. 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 six months ended October 31, 2022 and 2021. A summary of the Company’s stock option activity for employees and directors during the six months ended October 31, 2022, is presented below: Options Number of Weighted Weighted Aggregate Balance Outstanding, April 30, 2022 860,182 $ 7.03 1.25 $ — Granted — — — — Exercised — — — — Forfeited (36,634) 8.89 — — Expired (89,720) 5.53 — — Balance Outstanding, October 31, 2022 733,828 $ 7.12 0.86 $ — Exercisable, October 31, 2022 733,828 $ 7.12 0.84 $ — OUTSTANDING OPTIONS EXERCISABLE OPTIONS Exercise Weighted Outstanding Weighted Weighted Exercisable $3.24 to $4.38 $ 3.82 31,998 $ 4.00 1.75 31,998 $4.50 to $5.20 $ 4.94 123,379 $ 4.97 1.28 123,379 $7.17 to $7.55 $ 7.45 463,702 $ 7.46 0.83 463,702 $8.57 to $9.07 $ 8.98 114,749 $ 8.98 0.18 114,749 733,828 733,828 As of October 31, 2022, there are no unrecognized compensation costs related to unvested stock options. Stock-based compensation related to RSUs, restricted stock and stock options 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: Three Months Ended October 31, Six Months Ended October 31, 2022 2021 2022 2021 RSUs $ 458,206 $ 688,129 $ 499,259 $ 1,134,906 Restricted Stock — 10,525 — 21,052 Stock options 130 23,504 5,407 108,912 Total stock-based compensation expense $ 458,336 $ 722,158 $ 504,666 $ 1,264,870 Treasury Stock As of both October 31, 2022 and April 30, 2022, 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 $1,817,414 were based upon the fair market value of shares surrendered as of the date of each applicable exercise date. |
Revenue
Revenue | 6 Months Ended |
Oct. 31, 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: Three Months Ended October 31, Six Months Ended October 31, 2022 2021 2022 2021 Tuition - recognized over period of instruction $ 14,668,048 $ 16,632,114 $ 30,963,458 $ 33,753,794 Course fees - recognized over period of instruction 1,897,980 1,982,771 4,014,059 3,986,111 Book fees - recognized at a point in time — 15,018 — 42,777 Exam fees - recognized at a point in time 231,458 194,371 470,526 390,413 Service fees - recognized at a point in time 277,061 115,937 520,417 198,111 Revenue $ 17,074,547 $ 18,940,211 $ 35,968,460 $ 38,371,206 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 October 31, 2022 and April 30, 2022, was $8,772,017 and $5,889,911, respectively. During the six months ended October 31, 2022, the Company recognized $5,055,024 of revenue that was included in the deferred revenue balance as of April 30, 2022. The Company classifies deferred revenue as current when the remaining term of the course, including the 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 veteran 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 arrive 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. The Company had revenue from students outside the United States totaling approximately 2% of consolidated revenue for each of the three and six months ended October 31, 2022 and 2021, respectively. Teach-out of the Pre-licensure Nursing Programs On September 20, 2022, Aspen University and the Arizona State Board of Nursing entered into a Consent Agreement under which Aspen agreed to voluntarily surrender its program approval for its pre-licensure nursing program in Phoenix. Having entered into this agreement, the Company also determined to voluntarily suspend new enrollments to its pre-licensure nursing program in Florida, Georgia, Tennessee and Texas, and will complete instruction for currently enrolled Core nursing students in these locations. The state authorizing units and state boards of nursing were given notice to this effect on September 20, 2022. See Note 10. Commitments and Contingencies for additional information. |
Leases
Leases | 6 Months Ended |
Oct. 31, 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 172,021 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 extend for additional five-year periods. Since it is not reasonably certain that the leases would be renewed, the Company does not consider the renewal option in the lease term. 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 October 31, 2022, our longer-term operating leases are located in Tampa, Phoenix, Austin, Nashville and Georgia and are set to expire in six Operating lease 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 October 31, 2022 and April 30, 2022. 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 three and six months ended October 31, 2022, the amortization expense for these leasehold improvements was $185,245 and $358,943, respe ctively. For the three and six months ended October 31, 2021, the amortization expense for these leasehold improvements was $152,500 and $302,887, respe ctively. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for the three and six months ended October 31, 2022 was $1,081,187 and $2,091,699, respectively, which is included in general and administrative expenses in the consolidated statements of operations. Lease expense for the three and six months ended October 31, 2021 was $916,435 and $1,853,172, respectively. ROU assets are summarized below: October 31, 2022 April 30, 2022 ROU assets - Operating facility leases $ 18,527,970 $ 15,958,721 Less: accumulated amortization (4,256,489) (3,312,771) Total ROU assets $ 14,271,481 $ 12,645,950 Operating lease obligations, related to the ROU assets are summarized below: October 31, 2022 April 30, 2022 Total lease liabilities $ 25,544,191 $ 22,517,355 Reduction of lease liabilities (4,884,300) (3,671,466) Total operating lease obligations $ 20,659,891 $ 18,845,889 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 October 31, 2022 (by fiscal year). Maturity of Lease Obligations Lease Payments 2023 (remaining) $ 2,219,203 2024 4,739,252 2025 4,547,151 2026 4,677,145 2027 4,782,909 Thereafter 9,727,292 Total future minimum lease payments 30,692,952 Less: imputed interest (10,033,061) Present value of operating lease liabilities $ 20,659,891 Balance Sheet Classification October 31, 2022 April 30, 2022 Operating lease obligations, current portion $ 2,204,342 $ 2,036,570 Operating lease obligations, less current portion 18,455,549 16,809,319 Total operating lease obligations $ 20,659,891 $ 18,845,889 Other Information October 31, 2022 April 30, 2022 Weighted average remaining lease term (in years) 6.45 6.81 Weighted average discount rate 12 % 12 % |
Income Taxes
Income Taxes | 6 Months Ended |
Oct. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes 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 through 2023, and future taxation years. As of October 31, 2022, the Company recorded a reserve of approximately $300,000 for the estimate of the 2013 through 2021 tax year foreign income tax liability. This reserve is included in "Accrued expenses" in the consolidated balance sheets. For the three and six months ended October 31, 2022, the Company recorded a reserve of approximately $25,000 and $50,000, respectively, for the 2023 tax year to the related foreign income tax liability. For the three and six months ended October 31, 2021, the Company recorded a reserve of approximately zero and $148,000, respectively, for the 2022 tax year to the related foreign income tax liability. These reserves are included in "Accrued expenses" in the consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Oct. 31, 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 University 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 University misstated the quality of its pre-licensure nursing program. This complaint was likely in response to the Arizona Board of Nursing actions against Aspen University relating to the program, as outlined below. At this time, the only action taken by Aspen University was to file for change of venue which was granted. The size of the potential class action claim 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. No further assets are available for distribution. On September 13, 2022, Spada, the remaining plaintiff, and the Company entered into a Stipulation Discontinuing Action under which the complaint and counterclaims were dismissed with prejudice. 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 State Board of Nursing (“AZ BON”). 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 was broken into two phases, the first lasting through the end of Calendar Year 2022. During Phase I, Aspen University was 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 was not achieved, the AZ BON could lift the stay and initiate the revocation. If Phase I was completed successfully, Phase II would commence with Aspen University on Probation (regular or “stayed revocation” probation, depending on the outcome of Phase I). Aspen University was 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 fell below 80% for any quarter, the AZ BON could 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 the Company 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. For the calendar quarters ended March 31, 2022, June 30, 2022 and September 30, 2022, Aspen University's NCLEX-RN test pass rates were 73.33%, 69.64% and 59.15%, respectively. On September 20, 2022, Aspen University and the Arizona State Board of Nursing entered into a revised Consent Agreement under which Aspen agreed to voluntarily surrender its program approval for its pre-licensure nursing program in Phoenix, Arizona. Aspen sought the agreement after concluding that it was unable to meet the minimum 80% NCLEX first-time pass rates for calendar year 2022, which was a requirement of an earlier consent agreement that Aspen and the Board signed in March 2022. Aspen did so to minimize uncertainty for its students. Aspen had suspended admissions to its Arizona program in January 2022. Under the terms of the revised Consent Agreement, many of the previous requirements were eliminated; for example, Aspen no longer has a requirement to use a consultant nor the requirement for a certain percentage of full-time faculty. However, Aspen will continue its current Arizona Core nursing program for all current students and provide regular reports to the Board of Nursing about the program. It remains accountable to the Board to ensure that its current students receive expected instruction and learning opportunities. Once all currently enrolled students in the program have either completed the program or ceased enrollment, or within two years, whichever is sooner, Aspen’s program approval will be automatically voluntarily surrendered for a minimum period of two years. Having entered into the revised Consent Agreement with the Arizona State Board of Nursing, Aspen suspended new enrollments to its pre-licensure nursing program in Florida, Georgia, Tennessee and Texas and will complete instruction for currently enrolled Core nursing students in those states. The state authorizing units and state boards of nursing were noticed to this effect on September 20, 2022. (See Note 7. Revenue.) On March 8, 2022, Aspen University 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. On October 31, 2022, Aspen and the Arizona State Board for Private Postsecondary Education entered into a revised stipulated agreement that reduces AU's surety bond requirement from $18.3 million to $5.5 million, requires a civil penalty of $12,000 and enrollment stoppage and teach out of the pre-licensure program. Other requirements from the April 2022 stipulated Agreement were carried forward to this revised agreement. In December 2022, as a result of the revised stipulated agreement with the Arizona State Board for Private Postsecondary Education, $1.5 million of the restricted cash associated with the surety bond became unrestricted, providing additional cash for operations. See Note 11. Subsequent Event. Aspen University’s State Authorization Reciprocity Agreement ("SARA"), which is overseen by a National Council ("NC-SARA"), annual approval through the Colorado SARA State Portal Entity has to be renewed by January 30 each year. Aspen University applied on January 18, 2022, and received its 2022 approval effective February 8, 2022. On February 23, 2022, Aspen University 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 University’s move from Colorado to Arizona. On March 29, 2022, Aspen University received a Notification of Loss of Eligibility for SARA through Colorado which permitted continued SARA coverage for students enrolled for courses between February 1, 2022 and August 2, 2022. On April 10, 2022, Aspen University submitted an official appeal of the eligibility loss to the Colorado SARA State Portal Entity. Aspen University 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 University 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 University was informed that its appeal was denied and on June 10, 2022, Aspen University 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, were covered under SARA for 16 weeks, until September 6, 2022. In the meantime, Aspen University submitted an application to the Arizona State Portal Entry. This application to obtain approval to become an institutional participant again in NC-SARA from its new primary location in Arizona was deferred at the September 8, 2022 meeting, and will be considered at the January 2023 meeting. Since February 2022, the start of the regulatory concerns over SARA approval, Aspen University has been seeking individual state authorizations for its students. Aspen University has succeeded in securing full approval, exemption, or has determined approval is not required, in 39 states, while 9 additional states allow our currently enrolled students to continue while applications are under review or in process. Students in these states represent 99% of the current student body. Aspen continues to work with its accreditor on options for a few students in Rhode Island and the District of Columbia. The university has determined that it will not be able to secure authorization in Maryland. Articulation agreements for students in these two states and the District of Columbia are available for the 118 students who may not choose to wait for Aspen to garner NC-SARA approval through Arizona. 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, 2022, 36.37% of Aspen University’s and 28.06% 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. 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. With the recent full certification of USU, the DOE released USU's letter of credit related to its previous Compliance Audit of $9,872 in August 2022. 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. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Oct. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventIn December 2022, as a result of the revised stipulated agreement with the Arizona State Board for Private Postsecondary Education on October 31, 2022 (see Note 10. Commitments and Contingencies), $1.5 million of the restricted cash associated with the surety bond became unrestricted, providing additional cash for operations. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Oct. 31, 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 October 31, 2022 of $6,423,525 consists of $5 million, which is collateral for an approximately $18.3 million surety bond required by the Arizona State Board for Postsecondary Education, which was reduced to $5.5 million on October 31, 2022 in a revised stipulated agreement (see Note 10. Commitments and Contingencies); $1,173,525 which is collateral for letters of credit for the Aspen University and USU facility operating leases, and a $250,000 compensating balance under a secured credit line. In December 2022, as a result of the revised stipulated agreement with the Arizona State Board for Private Postsecondary Education on October 31, 2022, $1.5 million of the restricted cash associated with the surety bond became unrestricted, providing additional cash for operations. (See Note 11. Subsequent Event.) |
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 October 31, 2022. |
Revenue Recognition and Deferred Revenue | Revenue Recognition and Deferred Revenue The Company follows Accounting Standards Codification 606 (ASC 606). ASC 606 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASC also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer purchase orders, including significant judgments. 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 or 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. 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. |
Net Loss Per Share | Net Loss Per ShareNet loss per share is based on the weighted average number of shares of common stock outstanding during each period. Summarized below are shares 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 and convertible notes 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. |
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 Pronouncement Not Yet Adopted | Recent Accounting Pronouncement Not Yet Adopted ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("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 does not expect the adoption of the new standard to have a material impact on its consolidated financial statements when adopted on the effective date of May 1, 2023. 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 | Reclassifications Certain prior fiscal year amounts have been reclassified to conform to the current year presentation. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended |
Oct. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Shares Not Included in Computation of Diluted Net Loss Per Share | Summarized below are shares 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 and convertible notes 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. See Note 6. Stockholders’ Equity. October 31, 2022 April 30, 2022 Options to purchase common shares 733,828 860,182 Restricted stock units — — Warrants to purchase common shares 425,000 649,174 Unvested restricted stock 560,352 929,928 Convertible Notes 10,000,000 10,000,000 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Oct. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Software | Software consisted of the following: October 31, April 30, Software $ 10,990,705 $ 10,285,096 Accumulated amortization (6,118,275) (5,170,943) Software, net $ 4,872,430 $ 5,114,153 Courseware and accreditation consisted of the following: October 31, 2022 April 30, 2022 Courseware $ 632,313 $ 575,283 Accreditation 59,350 59,350 691,663 634,633 Accumulated amortization (413,455) (360,586) Courseware and accreditation, net $ 278,208 $ 274,047 |
Depreciation and Amortization Expense | Depreciation and amortization expense for property and equipment and software is summarized below: Three Months Ended October 31, Six Months Ended October 31, 2022 2021 2022 2021 Depreciation and amortization expense: Property and equipment, excluding software $ 435,552 $ 367,475 $ 864,477 $ 718,848 Software $ 477,169 $ 428,143 $ 947,332 $ 839,804 |
Courseware and Accreditation (T
Courseware and Accreditation (Tables) | 6 Months Ended |
Oct. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Courseware and Accreditation | Software consisted of the following: October 31, April 30, Software $ 10,990,705 $ 10,285,096 Accumulated amortization (6,118,275) (5,170,943) Software, net $ 4,872,430 $ 5,114,153 Courseware and accreditation consisted of the following: October 31, 2022 April 30, 2022 Courseware $ 632,313 $ 575,283 Accreditation 59,350 59,350 691,663 634,633 Accumulated amortization (413,455) (360,586) Courseware and accreditation, net $ 278,208 $ 274,047 |
Schedule of Amortization Expense of Courseware and Accreditation | Amortization expense for courseware and accreditation is summarized below: Three Months Ended October 31, Six Months Ended October 31, 2022 2021 2022 2021 Courseware and accreditation amortization expense $ 22,349 $ 21,185 $ 44,369 $ 37,133 |
Long-term Debt, Net (Tables)
Long-term Debt, Net (Tables) | 6 Months Ended |
Oct. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | October 31, 2022 April 30, 2022 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 5,000,000 12% Convertible Notes due March 14, 2027 (the "2022 Convertible Notes"); interest payable monthly in arrears 10,000,000 10,000,000 Total long-term debt 15,000,000 15,000,000 Less: Unamortized debt discount (95,444) (124,265) Total long-term debt, net $ 14,904,556 $ 14,875,735 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Oct. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Restricted Stock Unit Activity | A summary of the Company’s RSU activity, granted under the 2012 and 2018 Equity Incentive Plans, during the six months ended October 31, 2022 is presented below: Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Unvested balance outstanding, April 30, 2022 929,928 $ 6.12 Granted — — Forfeits (179,883) 7.69 Vested (189,693) 1 0.79 Expired — — Unvested balance outstanding, October 31, 2022 560,352 $ 7.42 ___________________ |
Summary of Warrant Activity | A summary of the Company’s warrant activity during the six months ended October 31, 2022 is presented below: Warrants Number of Weighted Weighted Aggregate Balance Outstanding, April 30, 2022 649,174 $ 4.70 1.96 $ — Granted — $ — — — Exercised — $ — — — Surrendered — $ — — — Expired (224,174) $ 6.87 — — Balance Outstanding, October 31, 2022 425,000 $ 3.56 3.27 $ — Unvested (16,667) Exercisable, October 31, 2022 408,333 $ 3.42 3.17 $ — |
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 4.48 200,000 $ 4.89 $ 4.89 50,000 $ 4.89 1.44 50,000 $ 5.85 $ 5.85 50,000 $ 5.85 1.35 50,000 $ 6.00 $ 6.00 100,000 $ 6.00 3.84 100,000 $ 6.99 $ 6.99 25,000 $ 6.99 3.72 8,333 425,000 408,333 OUTSTANDING OPTIONS EXERCISABLE OPTIONS Exercise Weighted Outstanding Weighted Weighted Exercisable $3.24 to $4.38 $ 3.82 31,998 $ 4.00 1.75 31,998 $4.50 to $5.20 $ 4.94 123,379 $ 4.97 1.28 123,379 $7.17 to $7.55 $ 7.45 463,702 $ 7.46 0.83 463,702 $8.57 to $9.07 $ 8.98 114,749 $ 8.98 0.18 114,749 733,828 733,828 |
Summary of Stock Option Activity | A summary of the Company’s stock option activity for employees and directors during the six months ended October 31, 2022, is presented below: Options Number of Weighted Weighted Aggregate Balance Outstanding, April 30, 2022 860,182 $ 7.03 1.25 $ — Granted — — — — Exercised — — — — Forfeited (36,634) 8.89 — — Expired (89,720) 5.53 — — Balance Outstanding, October 31, 2022 733,828 $ 7.12 0.86 $ — Exercisable, October 31, 2022 733,828 $ 7.12 0.84 $ — |
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: Three Months Ended October 31, Six Months Ended October 31, 2022 2021 2022 2021 RSUs $ 458,206 $ 688,129 $ 499,259 $ 1,134,906 Restricted Stock — 10,525 — 21,052 Stock options 130 23,504 5,407 108,912 Total stock-based compensation expense $ 458,336 $ 722,158 $ 504,666 $ 1,264,870 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Oct. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table represents the Company's revenue disaggregated by the nature and timing of services: Three Months Ended October 31, Six Months Ended October 31, 2022 2021 2022 2021 Tuition - recognized over period of instruction $ 14,668,048 $ 16,632,114 $ 30,963,458 $ 33,753,794 Course fees - recognized over period of instruction 1,897,980 1,982,771 4,014,059 3,986,111 Book fees - recognized at a point in time — 15,018 — 42,777 Exam fees - recognized at a point in time 231,458 194,371 470,526 390,413 Service fees - recognized at a point in time 277,061 115,937 520,417 198,111 Revenue $ 17,074,547 $ 18,940,211 $ 35,968,460 $ 38,371,206 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Oct. 31, 2022 | |
Leases [Abstract] | |
Schedule of Right-of-Use Assets and Operating Lease Liabilities | ROU assets are summarized below: October 31, 2022 April 30, 2022 ROU assets - Operating facility leases $ 18,527,970 $ 15,958,721 Less: accumulated amortization (4,256,489) (3,312,771) Total ROU assets $ 14,271,481 $ 12,645,950 Operating lease obligations, related to the ROU assets are summarized below: October 31, 2022 April 30, 2022 Total lease liabilities $ 25,544,191 $ 22,517,355 Reduction of lease liabilities (4,884,300) (3,671,466) Total operating lease obligations $ 20,659,891 $ 18,845,889 |
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 October 31, 2022 (by fiscal year). Maturity of Lease Obligations Lease Payments 2023 (remaining) $ 2,219,203 2024 4,739,252 2025 4,547,151 2026 4,677,145 2027 4,782,909 Thereafter 9,727,292 Total future minimum lease payments 30,692,952 Less: imputed interest (10,033,061) Present value of operating lease liabilities $ 20,659,891 |
Schedule of Balance Sheet Information Related to Leases | Balance Sheet Classification October 31, 2022 April 30, 2022 Operating lease obligations, current portion $ 2,204,342 $ 2,036,570 Operating lease obligations, less current portion 18,455,549 16,809,319 Total operating lease obligations $ 20,659,891 $ 18,845,889 |
Schedule of Other Information Related to Leases | Other Information October 31, 2022 April 30, 2022 Weighted average remaining lease term (in years) 6.45 6.81 Weighted average discount rate 12 % 12 % |
Nature of Operations (Details)
Nature of Operations (Details) | Oct. 31, 2022 subsidiary |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of subsidiaries | 2 |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) | 6 Months Ended | ||||||
Dec. 15, 2022 USD ($) | Oct. 31, 2022 USD ($) segment | Oct. 31, 2021 USD ($) | Oct. 30, 2022 USD ($) | Aug. 31, 2022 USD ($) | Apr. 30, 2022 USD ($) | Dec. 31, 2020 USD ($) | |
Accounting Policies [Abstract] | |||||||
Cash, uninsured amount | $ 3,413,596 | $ 7,749,715 | |||||
Number of reportable segments | segment | 1 | ||||||
Tenant improvements allowance received | $ 418,280 | $ 816,591 | |||||
Short-term Debt [Line Items] | |||||||
Restricted cash | 6,423,525 | $ 1,433,397 | 6,433,397 | ||||
Collateral Pledged, State of Arizona | |||||||
Short-term Debt [Line Items] | |||||||
Restricted cash | 5,000,000 | 5,000,000 | |||||
Collateral Pledged, State of Arizona | Surety Bond | |||||||
Short-term Debt [Line Items] | |||||||
Cash collateral for borrowed securities | 5,500,000 | $ 18,300,000 | 18,300,000 | ||||
Collateral Pledged, State of Arizona | Surety Bond | Subsequent Event | |||||||
Short-term Debt [Line Items] | |||||||
Amount of restricted cash moved to unrestricted | $ 1,500,000 | ||||||
Collateral Pledged, Aspen University Letter of Credit | |||||||
Short-term Debt [Line Items] | |||||||
Restricted cash | 1,173,525 | 1,173,525 | |||||
Secured Credit Line | |||||||
Short-term Debt [Line Items] | |||||||
Restricted cash | $ 250,000 | $ 250,000 | |||||
Collateral Pledged, Bank Letter of Credit | |||||||
Short-term Debt [Line Items] | |||||||
Restricted cash | $ 9,872 | $ 369,473 |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Shares Not Included in Computation of Diluted Net Loss Per Share (Details) - shares | 6 Months Ended | 12 Months Ended |
Oct. 31, 2022 | Apr. 30, 2022 | |
Options to purchase common shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 733,828 | 860,182 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 0 |
Warrants to purchase common shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 425,000 | 649,174 |
Unvested restricted stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 560,352 | 929,928 |
Convertible Notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 10,000,000 | 10,000,000 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Software (Details) - Software - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Software | $ 10,990,705 | $ 10,285,096 |
Accumulated amortization | (6,118,275) | (5,170,943) |
Total | $ 4,872,430 | $ 5,114,153 |
Property and Equipment - Deprec
Property and Equipment - Depreciation and Amortization Expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Property and equipment, excluding software | $ 435,552 | $ 367,475 | $ 864,477 | $ 718,848 |
Software | $ 477,169 | $ 428,143 | $ 947,332 | $ 839,804 |
Courseware and Accreditation -
Courseware and Accreditation - Schedule of Courseware and Accreditation (Details) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Courseware and accreditation, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Software | $ 691,663 | $ 634,633 |
Accumulated amortization | (413,455) | (360,586) |
Total | 278,208 | 274,047 |
Courseware | ||
Finite-Lived Intangible Assets [Line Items] | ||
Software | 632,313 | 575,283 |
Accreditation | ||
Finite-Lived Intangible Assets [Line Items] | ||
Software | $ 59,350 | $ 59,350 |
Courseware and Accreditation -S
Courseware and Accreditation -Schedule of Amortization Expense of Courseware and Accreditation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Courseware, net | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 22,349 | $ 21,185 | $ 44,369 | $ 37,133 |
Long-term Debt, Net- Schedule o
Long-term Debt, Net- Schedule of Long-Term Debt Instruments (Details) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 | Mar. 14, 2022 |
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 15,000,000 | $ 15,000,000 | |
Less: Unamortized debt discount | (95,444) | (124,265) | |
Total long-term debt, net | 14,904,556 | 14,875,735 | |
2022 Convertible Notes | Convertible Notes Payable | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 10,000,000 | 10,000,000 | |
Interest rate of debt (as a percent) | 12% | 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 | $ 5,000,000 |
Long-term Debt, Net - Narrative
Long-term Debt, Net - Narrative (Details) | 1 Months Ended | ||||||||||
Dec. 15, 2022 USD ($) | Oct. 31, 2022 USD ($) | Apr. 22, 2022 USD ($) lender $ / shares shares | Mar. 14, 2022 USD ($) day unaffiliated_lender $ / shares | Aug. 31, 2021 USD ($) $ / shares shares | Aug. 31, 2022 USD ($) | Apr. 30, 2022 USD ($) | Apr. 25, 2022 $ / shares shares | Mar. 08, 2022 USD ($) | Oct. 31, 2021 USD ($) | Nov. 05, 2018 USD ($) | |
Debt Instrument [Line Items] | |||||||||||
Number of unaffiliated lenders | unaffiliated_lender | 2 | ||||||||||
Letter of credit or surety bond posted | $ 5,500,000 | $ 18,300,000 | $ 18,300,000 | ||||||||
Civil monetary penalty | 12,000 | ||||||||||
Restricted cash | 6,423,525 | $ 6,433,397 | $ 1,433,397 | ||||||||
Deferred financing costs | 331,423 | 369,902 | |||||||||
Collateral Pledged, State of Arizona | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Restricted cash | $ 5,000,000 | 5,000,000 | |||||||||
Surety Bond | Collateral Pledged, State of Arizona | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amount of restricted cash moved to unrestricted | $ 1,500,000 | ||||||||||
Warrant | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Vesting period of warrant | 5 years | 5 years | |||||||||
2022 Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount of loan | $ 10,000,000 | ||||||||||
Payment for lender legal fees | $ 135,562 | $ 60,833 | |||||||||
Amortization period of deferred financing cost debt discount | 1 year | ||||||||||
2022 Convertible Notes | Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount of loan | $ 5,000,000 | ||||||||||
2022 Convertible Notes | Convertible Notes Payable | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Conversion price (in dollars per share) | $ / shares | $ 1 | ||||||||||
Average closing price of common stock (in dollars per share) | $ / shares | $ 2 | ||||||||||
Consecutive trading day period | day | 30 | ||||||||||
Debt instrument, term | 5 years | ||||||||||
Interest rate of debt (as a percent) | 12% | 12% | |||||||||
2022 Revolving Credit Facility | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit, outstanding balance | $ 0 | ||||||||||
Deferred financing costs | 59,000 | ||||||||||
2022 Revolving Credit Facility | Revolving Credit Facility | Warrant | |||||||||||
Debt Instrument [Line Items] | |||||||||||
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 of debt (as a percent) | 12% | ||||||||||
Line of credit, maximum borrowing capacity | $ 20,000,000 | ||||||||||
Commitment fee (as a percent) | 1% | ||||||||||
Commitment fee | $ 200,000 | ||||||||||
Replacement period | 6 months | ||||||||||
Additional commitment fee (as a percent) | 1% | ||||||||||
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] | |||||||||||
Number of securities called by warrants or rights (in shares) | shares | 100,000 | ||||||||||
Exercise period of warrant | 5 years | ||||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 1 | ||||||||||
Fair value of warrants outstanding | $ 118,000 | ||||||||||
Deferred financing costs | 59,000 | 118,000 | |||||||||
2018 Credit Facility Agreement | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit, maximum borrowing capacity | $ 5,000,000 | $ 5,000,000 | |||||||||
Line of credit, outstanding balance | 5,000,000 | $ 5,000,000 | |||||||||
Extension period | 1 year | ||||||||||
Deferred financing costs | $ 46,233 | ||||||||||
Debt instrument, extension term | 1 year | ||||||||||
Proceeds from lines of credit | $ 5,000,000 | ||||||||||
2018 Credit Facility Agreement | Revolving Credit Facility | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate of debt (as a percent) | 12% | ||||||||||
2018 Credit Facility Agreement | Revolving Credit Facility | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate of debt (as a percent) | 14% | ||||||||||
2018 Credit Facility Agreement | Revolving Credit Facility | Warrant | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Number of securities called by warrants or rights (in shares) | shares | 50,000 | ||||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 5.85 | ||||||||||
Fair value of warrants outstanding | $ 137,500 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||||||||||||||||||
Aug. 18, 2022 USD ($) | Aug. 04, 2022 USD ($) $ / shares shares | Jul. 31, 2022 USD ($) | Jul. 15, 2022 USD ($) | Apr. 22, 2022 USD ($) $ / shares shares | Aug. 31, 2021 USD ($) $ / shares shares | Aug. 16, 2021 USD ($) $ / shares shares | Aug. 12, 2021 USD ($) $ / shares shares | Jul. 21, 2021 USD ($) $ / shares shares | Mar. 08, 2020 shares | Feb. 04, 2020 $ / shares | Oct. 31, 2022 USD ($) plan shares | Oct. 31, 2021 USD ($) | Oct. 31, 2022 USD ($) plan shares | Oct. 31, 2021 USD ($) shares | Jul. 06, 2022 shares | Jul. 05, 2022 shares | Apr. 30, 2022 USD ($) shares | Apr. 25, 2022 $ / shares shares | Dec. 22, 2021 shares | Dec. 30, 2020 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of stock-based incentive plans | plan | 2 | 2 | |||||||||||||||||||
Transfer of unused awards (in shares) | 129,009 | ||||||||||||||||||||
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 | 60,000,000 | 40,000,000 | 60,000,000 | ||||||||||||||||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||||||||||
Preferred stock issued (in shares) | 0 | 0 | 0 | ||||||||||||||||||
Preferred stock outstanding (in shares) | 0 | 0 | 0 | ||||||||||||||||||
Proceeds from issuance of common stock | $ | $ 9,535 | $ 0 | |||||||||||||||||||
Stock based compensation expense | $ | $ 458,336 | $ 722,158 | 504,666 | $ 1,264,870 | |||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 9.49 | ||||||||||||||||||||
Deferred financing costs | $ | $ 331,423 | $ 331,423 | $ 369,902 | ||||||||||||||||||
Treasury stock (in shares) | 155,486 | 155,486 | 155,486 | ||||||||||||||||||
Treasury stock, value | $ | $ 1,817,414 | $ 1,817,414 | $ 1,817,414 | ||||||||||||||||||
Equity Distribution Agreement | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Offering proceeds | $ | $ 3,000,000 | ||||||||||||||||||||
Sale of stock, gross proceeds (as a percent) | 3% | ||||||||||||||||||||
Reimbursement expenses | $ | $ 60,000 | ||||||||||||||||||||
Total expenses for offering | $ | $ 100,000 | ||||||||||||||||||||
Number of shares sold (in shares) | 11,840 | ||||||||||||||||||||
Revolving Credit Facility | 2022 Revolving Credit Facility | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Deferred financing costs | $ | 59,000 | $ 59,000 | |||||||||||||||||||
Restricted Stock | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Shares granted (in shares) | 0 | 0 | |||||||||||||||||||
Stock based compensation expense | $ | $ 0 | 10,525 | $ 0 | $ 21,052 | |||||||||||||||||
Unvested shares of restricted common stock outstanding (in shares) | 0 | 0 | 0 | ||||||||||||||||||
Forfeited (in shares) | 0 | 0 | |||||||||||||||||||
Expired (in shares) | 0 | 0 | |||||||||||||||||||
Total unrecognized compensation expense | $ | $ 0 | $ 0 | |||||||||||||||||||
RSUs | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Shares granted (in shares) | 0 | ||||||||||||||||||||
Grant date fair value | $ | $ 1,000,000 | ||||||||||||||||||||
Stock based compensation expense | $ | $ 458,206 | 688,129 | $ 499,259 | $ 1,134,906 | |||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 6.48 | ||||||||||||||||||||
Unvested shares of restricted common stock outstanding (in shares) | 560,352 | 560,352 | 929,928 | ||||||||||||||||||
Forfeited (in shares) | 179,883 | ||||||||||||||||||||
Expired (in shares) | 0 | ||||||||||||||||||||
Total unrecognized compensation expense | $ | $ 2,127,217 | $ 2,127,217 | |||||||||||||||||||
Weighted average recognition period | 1 year 3 months 18 days | ||||||||||||||||||||
RSUs | Share-based Payment Arrangement, Tranche Three | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Unvested shares of restricted common stock outstanding (in shares) | 162,500 | 162,500 | |||||||||||||||||||
Weighted average recognition period | 4 years | ||||||||||||||||||||
Minimum closing price of common stock (in dollars per share) | $ / shares | $ 12 | ||||||||||||||||||||
Consecutive trading days | 20 days | ||||||||||||||||||||
RSUs | Chief Financial Officer | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Shares granted (in shares) | 125,000 | ||||||||||||||||||||
Grant date fair value | $ | $ 725,000 | ||||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 5.80 | ||||||||||||||||||||
RSUs | Chief Academic Officer | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Shares granted (in shares) | 80,000 | ||||||||||||||||||||
RSUs | Chief Operating Officer | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Shares granted (in shares) | 80,000 | ||||||||||||||||||||
RSUs | Chief Executive Officer | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Shares granted (in shares) | 125,000 | ||||||||||||||||||||
Grant date fair value | $ | $ 873,750 | ||||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 6.99 | ||||||||||||||||||||
Amortization expense | $ | $ (242,708) | 72,813 | 218,438 | ||||||||||||||||||
Amortization period of expense | 3 years | ||||||||||||||||||||
RSUs | Chief Nursing Officer | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Amortization expense | $ | $ (139,431) | $ 91,531 | 112,155 | $ 57,380 | $ 224,311 | ||||||||||||||||
Warrant | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Vesting period of warrant | 5 years | 5 years | |||||||||||||||||||
Warrant | Intercreditor Agreement | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of securities called by warrants or rights (in shares) | 100,000 | ||||||||||||||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 1 | ||||||||||||||||||||
Fair value of warrants outstanding | $ | $ 118,000 | ||||||||||||||||||||
Deferred financing costs | $ | 59,000 | 59,000 | $ 118,000 | ||||||||||||||||||
Loss on asset disposition | $ | 29,500 | 59,000 | |||||||||||||||||||
Exercise period of warrant | 5 years | ||||||||||||||||||||
Warrant | Revolving Credit Facility | 2022 Revolving Credit Facility | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of securities called by warrants or rights (in shares) | 100,000 | ||||||||||||||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 1 | ||||||||||||||||||||
Warrant | Revolving Credit Facility | Credit Facility Agreement | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Vesting period of warrant | 14 months | ||||||||||||||||||||
Fair value of warrants outstanding | $ | $ 137,500 | ||||||||||||||||||||
Warrant | Leon and Toby Cooperman Family Foundation | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of securities called by warrants or rights (in shares) | 50,000 | ||||||||||||||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 5.85 | ||||||||||||||||||||
Loss on asset disposition | $ | 11,169 | 22,336 | |||||||||||||||||||
Exercise period of warrant | 5 years | ||||||||||||||||||||
Warrant | Former Board of Director | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Amortization expense | $ | 7,000 | $ 14,000 | |||||||||||||||||||
Number of securities called by warrants or rights (in shares) | 25,000 | ||||||||||||||||||||
Vesting period of warrant | 3 years | ||||||||||||||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 6.99 | ||||||||||||||||||||
Fair value of warrants outstanding | $ | $ 84,000 | ||||||||||||||||||||
Exercise period of warrant | 5 years | ||||||||||||||||||||
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 | |||||||||||||||||||
Common Stock | Lampert Capital Advisors | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Shares granted (in shares) | 25,000 | ||||||||||||||||||||
Grant date fair value | $ | $ 24,500 | ||||||||||||||||||||
Stock based compensation expense | $ | $ 24,500 | $ 24,500 | |||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 0.98 | ||||||||||||||||||||
Maximum | Preferred Stock | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | |||||||||||||||||||
Equity Incentive Plan | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Common stock, shares remaining for future issuance (in shares) | 1,091,253 | 1,091,253 | 812,763 | ||||||||||||||||||
2018 Equity Incentive Plan | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Common stock, shares authorized (in shares) | 2,350,000 | 1,600,000 | |||||||||||||||||||
2018 Equity Incentive Plan | RSUs | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Weighted average recognition period | 3 years | ||||||||||||||||||||
Amortization expense | $ | $ 146,817 | $ 146,817 | $ 293,633 | $ 146,817 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Restricted Stock Unit Activity (Details) - RSUs - $ / shares | 3 Months Ended | 6 Months Ended |
Jan. 31, 2023 | Oct. 31, 2022 | |
Number of Shares | ||
Unvested balance outstanding, Beginning (in shares) | 560,352 | 929,928 |
Granted (in shares) | 0 | |
Forfeits (in shares) | (179,883) | |
Vested (in shares) | (189,693) | |
Expired (in shares) | 0 | |
Unvested balance outstanding, Ending (in shares) | 560,352 | |
Weighted Average Grant Price | ||
Unvested balance outstanding, Beginning (in dollars per share) | $ 7.42 | $ 6.12 |
Granted (in dollars per share) | 0 | |
Forfeits (in dollars per share) | 7.69 | |
Vested (in dollars per share) | 0.79 | |
Expired (in dollars per share) | 0 | |
Unvested balance outstanding, Ending (in dollars per share) | $ 7.42 | |
Forecast | ||
Number of Shares | ||
Granted (in shares) | 123,448 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Warrant Activity (Details) - Warrant - USD ($) | 6 Months Ended | 12 Months Ended |
Oct. 31, 2022 | Apr. 30, 2022 | |
Number of Shares | ||
Balance Outstanding at beginning of period (in shares) | 649,174 | |
Granted (in shares) | 0 | |
Exercised (in shares) | 0 | |
Surrendered (in shares) | 0 | |
Expired (in shares) | (224,174) | |
Balance Outstanding at end of period (in shares) | 425,000 | 649,174 |
Unvested (in shares) | (16,667) | |
Exercisable, Number of Shares (in shares) | 408,333 | |
Weighted Average Exercise Price | ||
Balance Outstanding at beginning of period (in dollars per share) | $ 4.70 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 0 | |
Surrendered (in dollars per share) | 0 | |
Expired (in dollars per share) | 6.87 | |
Balance Outstanding at end of period (in dollars per share) | 3.56 | $ 4.70 |
Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 3.42 | |
Weighted Average Remaining Contractual Term | ||
Weighted Average Remaining Contractual Term, Outstanding | 3 years 3 months 7 days | 1 year 11 months 15 days |
Weighted Average Remaining Contractual Term, Exercisable | 3 years 2 months 1 day | |
Aggregate Intrinsic Value | ||
Average Intrinsic Value | $ 0 | $ 0 |
Aggregate Intrinsic Value, Exercisable | $ 0 |
Stockholders' Equity - Warrants
Stockholders' Equity - Warrants Outstanding and Exercisable (Details) | 6 Months Ended |
Oct. 31, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Number of Warrants (in shares) | 425,000 |
Exercisable Number of Warrants (in shares) | 408,333 |
Exercise Price One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price (in dollars per share) | $ / shares | $ 1 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 1 |
Outstanding Number of Warrants (in shares) | 200,000 |
Weighted Average Remaining Life In Years | 4 years 5 months 23 days |
Exercisable Number of Warrants (in shares) | 200,000 |
Exercise Price Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price (in dollars per share) | $ / shares | $ 4.89 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 4.89 |
Outstanding Number of Warrants (in shares) | 50,000 |
Weighted Average Remaining Life In Years | 1 year 5 months 8 days |
Exercisable Number of Warrants (in shares) | 50,000 |
Exercise Price Three | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price (in dollars per share) | $ / shares | $ 5.85 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 5.85 |
Outstanding Number of Warrants (in shares) | 50,000 |
Weighted Average Remaining Life In Years | 1 year 4 months 6 days |
Exercisable Number of Warrants (in shares) | 50,000 |
Exercise Price Four | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price (in dollars per share) | $ / shares | $ 6 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 6 |
Outstanding Number of Warrants (in shares) | 100,000 |
Weighted Average Remaining Life In Years | 3 years 10 months 2 days |
Exercisable Number of Warrants (in shares) | 100,000 |
Exercise Price Five | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise Price (in dollars per share) | $ / shares | $ 6.99 |
Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 6.99 |
Outstanding Number of Warrants (in shares) | 25,000 |
Weighted Average Remaining Life In Years | 3 years 8 months 19 days |
Exercisable Number of Warrants (in shares) | 8,333 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Option Activity (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Oct. 31, 2022 | Apr. 30, 2022 | |
Number of Shares | ||
Balance Outstanding at end of period (in shares) | 733,828 | |
Exercisable, Number of Shares (in shares) | 733,828 | |
Employees And Directors | Stock options | Stock Incentive Plan | ||
Number of Shares | ||
Balance Outstanding at beginning of period (in shares) | 860,182 | |
Granted (in shares) | 0 | |
Exercised (in shares) | 0 | |
Forfeited (in shares) | (36,634) | |
Expired (in shares) | (89,720) | |
Balance Outstanding at end of period (in shares) | 733,828 | 860,182 |
Exercisable, Number of Shares (in shares) | 733,828 | |
Weighted Average Exercise Price | ||
Balance Outstanding at beginning of period (in dollars per share) | $ 7.03 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 8.89 | |
Expired (in dollars per share) | 5.53 | |
Balance Outstanding at end of period (in dollars per share) | 7.12 | $ 7.03 |
Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 7.12 | |
Stock Option Activity, Additional Disclosures | ||
Options outstanding, weighted average remaining contractual term | 10 months 9 days | 1 year 3 months |
Options exercisable, weighted average remaining contractual term | 10 months 2 days | |
Options outstanding, aggregate intrinsic value | $ 0 | $ 0 |
Options exercisable, aggregate intrinsic value | $ 0 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of All Options and Exercisable Options (Details) | 6 Months Ended |
Oct. 31, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding (in shares) | shares | 733,828 |
Exercisable (in shares) | shares | 733,828 |
$3.24 to $4.38 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Minimum exercise price (in dollars per share) | $ 3.24 |
Maximum exercise price (in dollars per share) | 4.38 |
Weighted average exercise price (in dollars per share) | $ 3.82 |
Outstanding (in shares) | shares | 31,998 |
Weighted average exercise price (in dollars per share) | $ 4 |
Weighted average remaining life in years | 1 year 9 months |
Exercisable (in shares) | shares | 31,998 |
$4.50 to $5.20 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Minimum exercise price (in dollars per share) | $ 4.50 |
Maximum exercise price (in dollars per share) | 5.20 |
Weighted average exercise price (in dollars per share) | $ 4.94 |
Outstanding (in shares) | shares | 123,379 |
Weighted average exercise price (in dollars per share) | $ 4.97 |
Weighted average remaining life in years | 1 year 3 months 10 days |
Exercisable (in shares) | shares | 123,379 |
$7.17 to $7.55 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Minimum exercise price (in dollars per share) | $ 7.17 |
Maximum exercise price (in dollars per share) | 7.55 |
Weighted average exercise price (in dollars per share) | $ 7.45 |
Outstanding (in shares) | shares | 463,702 |
Weighted average exercise price (in dollars per share) | $ 7.46 |
Weighted average remaining life in years | 9 months 29 days |
Exercisable (in shares) | shares | 463,702 |
$8.57 to $9.07 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Minimum exercise price (in dollars per share) | $ 8.57 |
Maximum exercise price (in dollars per share) | 9.07 |
Weighted average exercise price (in dollars per share) | $ 8.98 |
Outstanding (in shares) | shares | 114,749 |
Weighted average exercise price (in dollars per share) | $ 8.98 |
Weighted average remaining life in years | 2 months 4 days |
Exercisable (in shares) | shares | 114,749 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Share-Based Compensation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 458,336 | $ 722,158 | $ 504,666 | $ 1,264,870 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | 458,206 | 688,129 | 499,259 | 1,134,906 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | 0 | 10,525 | 0 | 21,052 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 130 | $ 23,504 | $ 5,407 | $ 108,912 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregated Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 17,074,547 | $ 18,940,211 | $ 35,968,460 | $ 38,371,206 |
Tuition | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 14,668,048 | 16,632,114 | 30,963,458 | 33,753,794 |
Course fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,897,980 | 1,982,771 | 4,014,059 | 3,986,111 |
Book fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 15,018 | 0 | 42,777 |
Exam fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 231,458 | 194,371 | 470,526 | 390,413 |
Service fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 277,061 | $ 115,937 | $ 520,417 | $ 198,111 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Apr. 30, 2022 | |
Disaggregation of Revenue [Line Items] | |||||
Deferred revenue | $ 8,772,017 | $ 8,772,017 | $ 5,889,911 | ||
Recognition of deferred revenue | $ 5,055,024 | ||||
Revenue Benchmark | Customer Concentration Risk | Pre-Licensure Nursing Program | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue (as percent) | 20% | 21% | 22% | 22% | |
Revenue Benchmark | Customer Concentration Risk | Non-US | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue (as percent) | 2% | 2% | 2% | 2% |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2022 USD ($) ft² | Oct. 31, 2021 USD ($) | Oct. 31, 2022 USD ($) ft² | Oct. 31, 2021 USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Amount of office and classroom space leased (in square feet) | ft² | 172,021 | 172,021 | ||
Lease extension term | 5 years | 5 years | ||
Total future minimum lease payments (as a percent) | 94% | 94% | ||
Incremental borrowing rate (as a percent) | 12% | 12% | ||
Amortization of tenant improvement allowances | $ 185,245 | $ 152,500 | $ 358,943 | $ 302,887 |
Lease expense | $ 1,081,187 | $ 916,435 | $ 2,091,699 | $ 1,853,172 |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 6 years | 6 years | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 8 years | 8 years |
Leases - Schedule of Right-of-U
Leases - Schedule of Right-of-Use Assets (Details) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Leases [Abstract] | ||
ROU assets - Operating facility leases | $ 18,527,970 | $ 15,958,721 |
Less: accumulated amortization | (4,256,489) | (3,312,771) |
Total ROU assets | $ 14,271,481 | $ 12,645,950 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Liabilities (Details) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Leases [Abstract] | ||
Total lease liabilities | $ 25,544,191 | $ 22,517,355 |
Reduction of lease liabilities | (4,884,300) | (3,671,466) |
Total operating lease obligations | $ 20,659,891 | $ 18,845,889 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments Under Operating Leases (Details) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2023 (remaining) | $ 2,219,203 | |
2024 | 4,739,252 | |
2025 | 4,547,151 | |
2026 | 4,677,145 | |
2027 | 4,782,909 | |
Thereafter | 9,727,292 | |
Total future minimum lease payments | 30,692,952 | |
Less: imputed interest | (10,033,061) | |
Present value of operating lease liabilities | $ 20,659,891 | $ 18,845,889 |
Leases - Schedule of Balance Sh
Leases - Schedule of Balance Sheet Information Related to Leases (Details) - USD ($) | Oct. 31, 2022 | Apr. 30, 2022 |
Balance Sheet Classification | ||
Operating lease obligations, current portion | $ 2,204,342 | $ 2,036,570 |
Operating lease obligations, less current portion | 18,455,549 | 16,809,319 |
Total operating lease obligations | $ 20,659,891 | $ 18,845,889 |
Leases - Schedule of Other Info
Leases - Schedule of Other Information Related to Leases (Details) | Oct. 31, 2022 | Apr. 30, 2022 |
Other Information | ||
Weighted average remaining lease term (in years) | 6 years 5 months 12 days | 6 years 9 months 21 days |
Weighted average discount rate (percent) | 12% | 12% |
Income Taxes (Details)
Income Taxes (Details) - Foreign Tax Authority - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Tax Year 2013 to 2021 | ||||
Income Tax Contingency [Line Items] | ||||
Reserve for estimate of foreign income tax liability | $ 300 | $ 300 | ||
Tax Year 2023 | ||||
Income Tax Contingency [Line Items] | ||||
Increase (Decrease) in Income Taxes | $ 25 | $ 50 | ||
Tax Year 2022 | ||||
Income Tax Contingency [Line Items] | ||||
Increase (Decrease) in Income Taxes | $ 0 | $ 148 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 15, 2022 USD ($) | Oct. 31, 2022 USD ($) state student quarter | Sep. 20, 2022 | Jul. 21, 2021 USD ($) | Apr. 16, 2021 | Mar. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 phase | Mar. 31, 2022 | Jul. 31, 2021 USD ($) | Oct. 31, 2022 USD ($) state student quarter | Apr. 30, 2022 USD ($) | Dec. 31, 2021 | Dec. 31, 2020 USD ($) | Oct. 30, 2022 USD ($) | Aug. 31, 2022 USD ($) | Apr. 22, 2022 USD ($) | Mar. 08, 2022 USD ($) | Feb. 28, 2022 employee | Oct. 31, 2021 USD ($) | Sep. 28, 2020 USD ($) | Aug. 31, 2020 USD ($) | Sep. 29, 2015 USD ($) | Feb. 11, 2013 USD ($) | |
Other Commitments [Line Items] | ||||||||||||||||||||||||
Provisional certification, period | 2 years | |||||||||||||||||||||||
First time pass rate (as a percent) | 58% | 80% | ||||||||||||||||||||||
Minimum full-time qualified faculty (as a percent) | 80% | 80% | 80% | |||||||||||||||||||||
Probationary period | 36 months | |||||||||||||||||||||||
Number of phases | phase | 2 | |||||||||||||||||||||||
Number of consecutive quarters | quarter | 4 | 4 | ||||||||||||||||||||||
Minimum full-time qualified faculty (as a percent) | 35% | 35% | ||||||||||||||||||||||
Test pass rates (as a percent) | 59.15% | 69.64% | 73.33% | |||||||||||||||||||||
Letter of credit or surety bond posted | $ 5,500,000 | $ 5,500,000 | $ 18,300,000 | $ 18,300,000 | ||||||||||||||||||||
Civil monetary penalty | $ 12,000 | |||||||||||||||||||||||
Number of states authorized in | state | 39 | 39 | ||||||||||||||||||||||
Number of states in development process | state | 9 | 9 | ||||||||||||||||||||||
Student body residing in authorized states (as a percent) | 99% | 99% | ||||||||||||||||||||||
Number of students | student | 118 | 118 | ||||||||||||||||||||||
Return of unearned funds, no later than (in days) | 45 days | |||||||||||||||||||||||
Restricted cash | $ 6,423,525 | $ 6,423,525 | $ 6,433,397 | $ 1,433,397 | ||||||||||||||||||||
Minimum | ||||||||||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||||||||||
Program approval automatically voluntarily surrendered period | 2 years | |||||||||||||||||||||||
Letter of Credit | ||||||||||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||||||||||
Letters of credit outstanding, amount | $ 255,708 | $ 379,345 | ||||||||||||||||||||||
Title IV Programs, Aspen University | Revenue Benchmark | Customer Concentration Risk | ||||||||||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||||||||||
Percentage of revenues from students outside the United States | 36.37% | |||||||||||||||||||||||
Title IV Programs, United States University | Revenue Benchmark | Customer Concentration Risk | ||||||||||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||||||||||
Percentage of revenues from students outside the United States | 28.06% | |||||||||||||||||||||||
Collateral Pledged, State of Arizona | ||||||||||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||||||||||
Restricted cash | 5,000,000 | 5,000,000 | $ 5,000,000 | |||||||||||||||||||||
Collateral Pledged, State of Arizona | Surety Bond | ||||||||||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||||||||||
Cash collateral for borrowed securities | $ 5,500,000 | $ 5,500,000 | $ 18,300,000 | $ 18,300,000 | ||||||||||||||||||||
Collateral Pledged, State of Arizona | Surety Bond | Subsequent Event | ||||||||||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||||||||||
Amount of restricted cash moved to unrestricted | $ 1,500,000 | |||||||||||||||||||||||
Collateral Pledged, Bank Letter of Credit | ||||||||||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||||||||||
Restricted cash | $ 369,473 | $ 9,872 | ||||||||||||||||||||||
Phoenix, Arizona | ||||||||||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||||||||||
Number of pre-licensure campuses | employee | 2 | |||||||||||||||||||||||
HEMG | ||||||||||||||||||||||||
Other Commitments [Line Items] | ||||||||||||||||||||||||
Estimate of potential loss | $ 2,200,000 | |||||||||||||||||||||||
Amount of default judgment in litigation matter | $ 772,793 | |||||||||||||||||||||||
Proceeds from bankruptcy claims | $ 498,120 | |||||||||||||||||||||||
Writeoff of net receivable | $ 45,329 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | Dec. 15, 2022 USD ($) |
Surety Bond | Collateral Pledged, State of Arizona | Subsequent Event | |
Subsequent Event [Line Items] | |
Amount of restricted cash moved to unrestricted | $ 1.5 |