Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Jan. 31, 2014 | Mar. 17, 2014 | |
Document And Entity Information Abstract | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Jan-14 | ' |
Entity Registrant Name | 'ASPEN GROUP, INC. | ' |
Entity Central Index Key | '0001487198 | ' |
Current Fiscal Year End Date | '--04-30 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 72,625,002 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $850,627 | $724,982 |
Restricted cash | 265,579 | 265,173 |
Accounts receivable, net of allowance of $215,643 and $72,535, respectively | 659,814 | 364,788 |
Prepaid expenses | 37,420 | 165,426 |
Net assets from discontinued operations (Note 1) | 5,250 | 113,822 |
Total current assets | 1,818,690 | 1,634,191 |
Property and equipment: | ' | ' |
Call center equipment | 122,653 | 121,313 |
Computer and office equipment | 66,118 | 61,036 |
Furniture and fixtures | 32,914 | 32,914 |
Library (online) | 100,000 | 100,000 |
Software | 1,809,860 | 1,518,142 |
Total | 2,131,545 | 1,833,405 |
Less accumulated depreciation and amortization | -837,427 | -569,665 |
Total property and equipment, net | 1,294,118 | 1,263,740 |
Courseware, net | 129,367 | 208,095 |
Accounts receivable, secured - related party, net of allowance of $625,962 and $502,315, respectively | 146,831 | 270,478 |
Debt issuance costs, net | 260,114 | ' |
Other assets | 25,181 | 25,181 |
Total assets | 3,674,301 | 3,401,685 |
Current liabilities: | ' | ' |
Accounts payable | 376,600 | 313,405 |
Accrued expenses | 133,148 | 128,569 |
Deferred revenue | 806,160 | 904,590 |
Loan payable to stockholder | 491 | 491 |
Title IV Funds In Transit | 235,311 | 253,883 |
Deferred rent, current portion | 12,879 | 10,418 |
Convertible notes payable, current portion | 200,000 | 200,000 |
Net liabilities from discontinued operations (Note 1) | 11,475 | 124,504 |
Total current liabilities | 1,776,064 | 1,935,860 |
Line of credit | 244,175 | 250,000 |
Loan payable to officer - related party | 1,000,000 | ' |
Convertible notes payable - related party | 600,000 | 600,000 |
Debenture payable, net of discounts of $573,060 | 1,666,940 | ' |
Deferred rent | 11,750 | 21,450 |
Total liabilities | 5,298,929 | 2,807,310 |
Commitments and contingencies - See Note 8 | ' | ' |
Stockholders' equity (deficiency): | ' | ' |
Preferred stock, $0.001 par value; 10,000,000 shares authorized | ' | ' |
Common stock, $0.001 par value; 120,000,000 shares authorized,69,667,107 issued and 69,467,107 outstanding at January 31, 2014 and 58,573,222 issued and 58,373,222 outstanding at April 30, 2013 | 69,467 | 58,573 |
Additional paid-in capital | 15,343,576 | 13,345,888 |
Treasury stock (200,000 shares) | -70,000 | -70,000 |
Accumulated deficit | -16,967,671 | -12,740,086 |
Total stockholders' equity (deficiency) | -1,624,628 | 594,375 |
Total liabilities and stockholders' equity (deficiency) | $3,674,301 | $3,401,685 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
Assets | ' | ' |
Allowance for doubtful accounts, current accounts receivables | $215,643 | $72,535 |
Allowance for doubtful accounts, noncurrent accounts receivables | 625,962 | 502,315 |
Liabilities | ' | ' |
Debenture payable, discount | $573,060 | ' |
Stockholders' Equity: | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 69,667,107 | 58,573,222 |
Common stock, shares outstanding | 69,467,107 | 58,373,222 |
Treasury stock, shares | 200,000 | 200,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ' | ' | ' | ' |
Revenues | $1,002,167 | $831,562 | $2,817,497 | $2,257,354 |
Operating expenses | ' | ' | ' | ' |
Cost of revenues (exclusive of amortization expense included in depreciation and amortization shown separately below) | 555,625 | 557,689 | 1,558,599 | 1,579,813 |
General and administrative | 1,697,403 | 1,043,461 | 4,698,343 | 3,547,485 |
Receivable collateral valuation reserve | 123,647 | ' | 123,647 | 502,316 |
Depreciation and amortization | 121,904 | 111,862 | 350,990 | 316,141 |
Total operating expenses | 2,498,579 | 1,713,012 | 6,731,579 | 5,945,755 |
Operating loss from continuing operations | -1,496,412 | -881,450 | -3,914,082 | -3,688,401 |
Other income (expense): | ' | ' | ' | ' |
Interest income | 136 | 3,479 | 750 | 4,037 |
Interest expense | -260,062 | -6,395 | -398,916 | -363,528 |
Total other expense, net | -259,926 | -2,916 | -398,166 | -359,491 |
Loss from continuing operations before income taxes | -1,756,338 | -884,366 | -4,312,248 | -4,047,892 |
Income tax expense (benefit) | ' | ' | ' | ' |
Loss from continuing operations | -1,756,338 | -884,366 | -4,312,248 | -4,047,892 |
Discontinued operations (Note 1) | ' | ' | ' | ' |
Income (loss) from discontinued operations, net of income taxes | 29,751 | -150,223 | 84,663 | -10,048 |
Net loss | ($1,726,587) | ($1,034,589) | ($4,227,585) | ($4,057,940) |
Loss per share from continuing operations - basic and diluted | ($0.03) | ($0.02) | ($0.07) | ($0.09) |
Income (loss) per share from discontinued operations - basic and diluted | $0 | $0 | $0 | $0 |
Net loss per share - basic and diluted | ($0.03) | ($0.02) | ($0.07) | ($0.09) |
Weighted average number of common shares outstanding: | ' | ' | ' | ' |
basic and diluted | 59,780,884 | 43,749,427 | 59,098,885 | 46,595,461 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY) (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] |
Beginning balance at Apr. 30, 2013 | $594,375 | $58,573 | $13,345,888 | ($70,000) | ($12,740,086) |
Beginning balance, shares at Apr. 30, 2013 | 58,373,222 | 58,573,222 | ' | ' | ' |
Issuance of common shares for investor relation services | 216,000 | 617 | 215,383 | ' | ' |
Issuance of common shares for investor relation services, shares | ' | 617,143 | ' | ' | ' |
Offering cost for professional services from private placement | -48,240 | ' | -48,240 | ' | ' |
Stock-based compensation | 395,940 | ' | 395,940 | ' | ' |
Warrants issued in financing | 483,881 | ' | 483,881 | ' | ' |
Warrants exercised | 804,049 | 7,006 | 953,995 | ' | ' |
Warrants exercised, shares | ' | 7,006,064 | ' | ' | ' |
Warrant Modification Expense | 156,952 | ' | ' | ' | ' |
Stock issued for price protection | ' | 3,271 | -3,271 | ' | ' |
Stock issued for price protection, shares | ' | 3,270,678 | ' | ' | ' |
Net loss | -4,227,585 | ' | ' | ' | -4,227,585 |
Ending balance at Jan. 31, 2014 | ($1,624,628) | $69,467 | $15,343,576 | ($70,000) | ($16,967,671) |
Ending balance, shares at Jan. 31, 2014 | 69,467,107 | 69,467,107 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
Cash flows from operating activities: | ' | ' |
Net loss | ($4,227,585) | ($4,057,940) |
Less income (loss) from discontinued operations | 84,663 | -10,048 |
Loss from continuing operations | -4,312,248 | -4,047,892 |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Bad debt expense | 148,837 | ' |
Receivable collateral valuation reserve | 123,647 | 502,316 |
Depreciation and amortization | 350,990 | 316,141 |
Stock-based compensation | 395,940 | 305,333 |
Warrant modification expense | 156,952 | ' |
Amortization of debt issue costs | 77,058 | 268,973 |
Amortization of debt discount | 174,351 | ' |
Amortization of prepaid shares for services | 285,084 | 32,498 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -443,863 | -91,274 |
Prepaid expenses | 58,922 | 51,503 |
Other assets | ' | -21,122 |
Accounts payable | 63,195 | -1,018,133 |
Accrued expenses | 4,578 | 91,451 |
Deferred rent | -7,239 | -3,218 |
Title IV Funds in Transit | -18,572 | 42,392 |
Deferred revenue | -98,430 | 89,064 |
Net cash used in operating activities | -3,040,798 | -3,481,968 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -298,140 | -328,605 |
Purchases of courseware | -4,499 | -17,100 |
Increase in restricted cash | -406 | -159,162 |
Net cash used in investing activities | -303,045 | -504,867 |
Cash flows from financing activities: | ' | ' |
Proceeds from (repayments on) line of credit, net | -5,825 | 24,000 |
Proceeds from issuance of common shares and warrants, net | ' | 3,120,239 |
Proceeds from loan from related party | 1,000,000 | 300,491 |
Proceeds received from issuance of convertible notes and warrants, net of costs | 1,639,298 | 947,000 |
Proceeds from warrant exercise | 804,049 | ' |
Offering costs associated with private placement | -48,240 | -154,453 |
Purchase of Treasury shares | ' | -202,000 |
Net cash provided by financing activities | 3,389,282 | 4,035,277 |
Cash flows from discontinued operations: | ' | ' |
Cash flows from discontinued activities | 80,206 | -154,379 |
Net cash provided by (used in) discontinued operations | 80,206 | -154,379 |
Net increase (decrease) in cash and cash equivalents | 125,645 | -105,937 |
Cash and cash equivalents at beginning of period | 724,982 | 486,104 |
Cash and cash equivalents at end of period | 850,627 | 380,167 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest | 95,653 | 5,281 |
Cash paid for income taxes | ' | ' |
Supplemental disclosure of non-cash investing and financing activities | ' | ' |
Common stock issued for prepaid services | 216,000 | ' |
Warrant value recorded as debt issue cost | 94,316 | ' |
Warrant value recorded as debt discount | $389,565 | ' |
Nature_of_Operations_and_Liqui
Nature of Operations and Liquidity | 9 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Nature of Operations and Liquidity [Abstract] | ' | ||||||||||||||||
Nature of Operations and Liquidity | ' | ||||||||||||||||
Note 1.Nature of Operations and Liquidity | |||||||||||||||||
Overview | |||||||||||||||||
Aspen Group, Inc. (together with its subsidiary, the "Company" or "Aspen") was founded in Colorado in 1987 as the International School of Information Management. On September 30, 2004, it was acquired by Higher Education Management Group, Inc. ("HEMG") and changed its name to Aspen University Inc. On March 13, 2012, the Company was recapitalized in a reverse merger. All references to the Company or Aspen before March 13, 2012 are to Aspen University Inc. | |||||||||||||||||
On April 5, 2013, the Company gave 120-day notice to CLS 123, LLC of its intent to terminate the agreement between the Company and CLS 123, LLC dated November 9, 2011. Moreover, at the end of the 120-day period, the Company is no longer offering the "Certificate in Information Technology with a specialization in Smart Home Integration" program. Accordingly, the activities related to CLS (or the "Smart Home Integration Certificate" program) are treated as discontinued operations. As this component of the business was not sold, there was no gain or loss on the disposition of this component (see below "Basis of Presentation"). | |||||||||||||||||
On April 25, 2013, our Board of Directors approved a change in our fiscal year-end from December 31 to April 30, with the change to the calendar year reporting cycle beginning May 1, 2013. Consequently, we filed a Transition Report on Form 10-KT for the four-month transition period ended April 30, 2013. | |||||||||||||||||
Aspen University's mission is to offer any motivated college-worthy student the opportunity to receive a high quality, responsibly priced distance-learning education for the purpose of achieving sustainable economic and social benefits for themselves and their families. One of the key differences between Aspen and other publicly-traded, exclusively online, for-profit universities is that approximately 87% of our full-time degree-seeking students (as of January 31, 2014) were enrolled in graduate degree programs (Master or Doctorate degree program). Since 1993, we have been nationally accredited by the Distance Education and Training Council ("DETC"), a national accrediting agency recognized by the U.S. Department of Education (the "DOE"). | |||||||||||||||||
Basis of Presentation | |||||||||||||||||
A. Interim Financial Statements | |||||||||||||||||
The interim 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 months and nine months ended January 31, 2014 and 2013, our cash flows for the nine months ended January 31, 2014 and 2013, and our financial position as of January 31, 2014 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 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 Report on Form 10-KT for the period ended April 30, 2013 as filed with the SEC on July 30, 2013. The April 30, 2013 balance sheet is derived from those statements. | |||||||||||||||||
B. Discontinued Operations | |||||||||||||||||
As of March 31, 2013, the Company decided to discontinue business activities related to its "Certificate in Information Technology with a specialization in Smart Home Integration" program so that it may focus on growing its full-time, degree-seeking student programs, which have higher gross margins. On April 5, 2013, the Company gave 120-day notice to CLS 123, LLC of its intent to terminate the agreement between the Company and CLS 123, LLC dated November 9, 2011. Thus, as of August 3, 2013, the Company is no longer offering the "Certificate in Information Technology with a specialization in Smart Home Integration" program. The termination of the "Smart Home Integration Certificate" program qualifies as a discontinued operation and accordingly the Company has excluded results for this component from its continuing operations in the consolidated statements of operations for all periods presented. The following table shows the results of the "Smart Home Integration Certificate" program component included in the income (loss) from discontinued operations: | |||||||||||||||||
For the | For the | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues | $ | - | $ | 202,571 | $ | 549,125 | $ | 1,290,508 | |||||||||
Costs and expenses: | |||||||||||||||||
Instructional costs and services | - | 182,794 | 494,21 3 | 1,130,556 | |||||||||||||
General and administrative | (29,751 | ) | 170,000 | (29,751 | ) | 170,000 | |||||||||||
Total costs and expenses | (29,751 | ) | 352,794 | 464,462 | 1,300,556 | ||||||||||||
Income (loss) from discontinued operations, net of income taxes | $ | 29,751 | $ | (150,223 | ) | $ | 84,663 | $ | (10,048 | ) | |||||||
The major classes of assets and liabilities of discontinued operations on the balance sheet are as follows: | |||||||||||||||||
January 31, | April 30, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | - | $ | - | |||||||||||||
Accounts receivable, net of allowance of $481,531 and $295,045, respectively | 5,250 | 113,822 | |||||||||||||||
Other current assets | - | - | |||||||||||||||
Net assets from discontinued operations | $ | 5,250 | $ | 113,822 | |||||||||||||
Liabilities | |||||||||||||||||
Accounts payable | $ | 11,475 | $ | 1,178 | |||||||||||||
Accrued expenses | - | 70,201 | |||||||||||||||
Deferred revenue | - | 53,125 | |||||||||||||||
Net liabilities from discontinued operations | $ | 11,475 | $ | 124,504 | |||||||||||||
C. Liquidity | |||||||||||||||||
As a result of the January 2014 warrant exercise transaction for approximately $804,000 disclosed in Note 9, the Company has a cash position of approximately $1.1 million as of January 31, 2014 which includes $266,000 of restricted cash. In March 2014, the company raised an additional $600,000 in equity funds and intends to raise an additional $400,000. With the additional cash, the growth in the company revenues and improving operating margins, the Company believes that it has sufficient cash to allow the Company to grow to positive operating cash flow. Management expects to use approximately $750,000 in cash from February 2014 to July 2014, at which time the Company forecasts to begin generating cash from operations. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended |
Jan. 31, 2014 | |
Significant Accounting Policies [Abstract] | ' |
Significant Accounting Policies | ' |
Note 2. Significant Accounting Policies | |
Principles of Consolidation | |
The unaudited consolidated financial statements include the accounts of Aspen Group, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | |
Use of Estimates | |
The preparation of the unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts in the unaudited consolidated financial statements. Actual results could differ from those estimates. Significant estimates in the accompanying unaudited consolidated financial statements include the allowance for doubtful accounts and other receivables, the valuation of collateral on certain receivables, amortization periods and valuation of courseware and software development costs, valuation of beneficial conversion features in convertible debt, valuation of stock-based compensation, the valuation of net assets and liabilities from discontinued operations and the valuation allowance on deferred tax assets. | |
Restricted Cash | |
Restricted cash represents amounts pledged as security for letters of credit for transactions involving Title IV programs. The Company considers $265,579 as restricted cash (shown as a current asset as of January 31, 2014). As of January 31, 2014, the account bears interest of 0.20%. (See Note 11) | |
Fair Value Measurements | |
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company classifies assets and liabilities recorded at fair value under the fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. The fair value measurements are classified under the following hierarchy: | |
Level 1-Observable inputs that reflect quoted market prices (unadjusted) for identical assets and liabilities in active markets; | |
Level 2-Observable inputs, other than quoted market prices, that are either directly or indirectly observable in the marketplace for identical or similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities; and | |
Level 3-Unobservable inputs that are supported by little or no market activity that are significant to the fair value of assets or liabilities. | |
The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. | |
Title IV Funds in Transit | |
The Company receives Title IV funds from the Department of Education to cover tuition and living expenses. Until forwarded to the student, this amount is captured in a current liability account called Title IV Funds in Transit. Typically, the funds are paid to the students within two weeks. | |
Revenue Recognition and Deferred Revenue | |
Revenues consist primarily of tuition and fees derived from courses taught by the Company online as well as from related educational resources that the Company provides to its students, such as access to our online materials and learning management system. Tuition revenue is recognized pro-rata over the applicable period of instruction. The Company maintains an institutional tuition refund policy, 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'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 annual fees for library, technology and other services, which are recognized over the related service period. 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. Other revenues may be recognized as sales occur or services are performed. | |
Revenue Recognition and Deferred Revenue - Discontinued Operations | |
The Company enters into certain revenue sharing arrangements with consultants whereby the consultants will develop course content primarily for technology-related courses, recommend, but not select, faculty, lease equipment on behalf of the Company for instructional purposes for the on-site laboratory portion of distance learning courses and make introductions to corporate and government sponsoring organizations that provide students for the courses. The Company has evaluated ASC 605-45 "Principal Agent Considerations" and determined that there are more indicators than not that the Company is the primary obligor in the arrangements since the Company establishes the tuition, interfaces with the student or sponsoring organization, selects the faculty, is responsible for delivering the course, is responsible for issuing any degrees or certificates, and is responsible for collecting the tuition and fees. The gross tuition and fees are included in revenues while the revenue sharing payments are included in instructional costs and services, an operating expense. As a result of presenting this component as discontinued operations, the revenues are now included in income (loss) from discontinued operations, net of income taxes for all periods presented (See Note 1). | |
Net Loss Per Share | |
Net loss per common share is based on the weighted average number of common shares outstanding during each period. Options to purchase 9,583,086 and 6,880,467 common shares, warrants to purchase 19,196,635 and 7,216,522 common shares, and $2,240,000 and $800,000 of convertible debt (convertible into 8,093,985 and 1,357,143 common shares) were outstanding during the nine months ended January 31, 2014 and 2013, respectively, but were not included in the computation of diluted loss per share because the effects would have been anti-dilutive. The options, warrants and convertible debt are considered to be common stock equivalents and are only included in the calculation of diluted earnings per common share when their effect is dilutive. | |
Reclassifications | |
The Company reclassified $235,311 and $253,883 at January 31, 2014 and April 30, 2013, respectively, from Deferred Revenue to Title IV Funds in Transit. Both are classified in Current Liabilities. For the nine months ended January 31, 2014, the Company reclassified $113,250, from Cost of Revenues to General and Administrative, both within Operating Expenses. There were no corresponding reclassifications for the three and nine months ended January 31, 2013. | |
Recent Accounting Pronouncements | |
We have implemented all new accounting standards that are in effect and that may impact our unaudited consolidated financial statements and do not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on our consolidated financial position or results of operations. |
Secured_Note_and_Accounts_Rece
Secured Note and Accounts Receivable - Related Parties | 9 Months Ended |
Jan. 31, 2014 | |
Secured Note and Accounts Receivable - Related Parties [Abstract] | ' |
Secured Note and Accounts Receivable - Related Parties | ' |
Note 3. Secured Note and Accounts Receivable - Related Parties | |
On March 30, 2008 and December 1, 2008, the Company sold courseware pursuant to marketing agreements to HEMG, a related party and principal stockholder of the Company whose president is Mr. Patrick Spada, the former Chairman of the Company, in the amount of $455,000 and $600,000, respectively; UCC filings were filed accordingly. Under the marketing agreements, the receivables are due net 60 months. On September 16, 2011, HEMG pledged 772,793 Series C preferred shares (automatically converted to 654,850 common shares on March 13, 2012) of the Company as collateral for this account receivable. On March 8, 2012, due to the impending reduction in the value of the collateral as the result of the Series C conversion ratio and the Company's inability to engage Mr. Spada in good faith negotiations to increase HEMG's pledge, Michael Mathews, the Company's CEO, pledged 117,943 common shares of the Company, owned personally by him, valued at $1.00 per share based on recent sales of capital stock as additional collateral to the accounts receivable, secured - related party. On March 13, 2012, the Company deemed the receivables stemming from the sale of courseware curricula to be in default. On April 4, 2012, the Company entered into an agreement with: (i) an individual, (ii) HEMG, a related party and principal stockholder of the Company whose president is Mr. Patrick Spada, the former Chairman of the Company and (iii) Mr. Patrick Spada. Under the agreement, (a) the individual purchased and HEMG sold to the individual 400,000 common shares of the Company at $0.50 per share; (b) the Company guaranteed it would purchase at least 600,000 common shares of the Company at $0.50 per share within 90 days of the agreement and the Company would use its best efforts to purchase from HEMG and resell to investors an additional 1,400,000 common shares of the Company at $0.50 per share within 180 days of the agreement; (c) provided HEMG and Mr. Patrick Spada fulfilled their obligations under (a) and (b) above, the Company shall consent to additional private transfers by HEMG and/or Mr. Patrick Spada of up to 500,000 common shares of the Company on or before March 13, 2013; (d) HEMG agreed to not sell, pledge or otherwise transfer 142,500 common shares of the Company pending resolution of a dispute regarding the Company's claim that HEMG sold 131,500 common shares of the Company without having enough authorized shares and a stockholder did not receive 11,000 common shares of the Company owed to him as a result of a stock dividend; and (e) the Company waived any default of the accounts receivable, secured - related party and extend the due date to September 30, 2014. As of September 30, 2012, third party investors purchased 336,000 shares for $168,000 and the Company purchased 264,000 shares for $132,000 per section (b) above. Based on proceeds received on September 28, 2012 under a Unit private placement that equates to approximately $0.35 per common share, the value of the aforementioned collateral decreased. Accordingly, as of December 31, 2012, the Company recognized an allowance of $502,315 for this account receivable. As of January 31, 2014, the balance of the account receivable, net of allowance of $625,962, was $146,831. Based on the reduction in value of the collateral to $0.19, the company recognized an expense of $123,647 during the three months ended January 31, 2014 (See Note 9). The net receivable of $146,831 is reflected as accounts receivable, secured - related party, net (See Note 10). |
Property_and_Equipment
Property and Equipment | 9 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Property and Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
Note 4. Property and Equipment | |||||||||
Property and equipment consisted of the following at January 31, 2014 and April 30, 2013: | |||||||||
January 31, | April 30, | ||||||||
2014 | 2013 | ||||||||
Call center equipment | $ | 122,653 | $ | 121,313 | |||||
Computer and office equipment | 66,118 | 61,036 | |||||||
Furniture and fixtures | 32,914 | 32,914 | |||||||
Library (online) | 100,000 | 100,000 | |||||||
Software | 1,809,860 | 1,518,142 | |||||||
2,131,545 | 1,833,405 | ||||||||
Accumulated depreciation and amortization | (837,427 | ) | (569,665 | ) | |||||
Property and equipment, net | $ | 1,294,118 | $ | 1,263,740 | |||||
Depreciation and amortization expense for the three months ended January 31, 2014 and 2013 was $96,879 and $77,484, respectively. Depreciation and amortization expense for the nine months ended January 31, 2014 and 2013 was $267,763 and $211,004 respectively. | |||||||||
Amortization expense for software, included in the above amounts, for the three months ended January 31 2014, and 2013 was $87,610 and $68,676, respectively. Amortization expense for software, included in the above amounts, for the nine months ended January 31, 2014 and 2013 was $242,259 and $186,466, respectively. Software consisted of the following at January 31, 2014 and April 30, 2013: | |||||||||
January 31, | April 30, | ||||||||
2014 | 2013 | ||||||||
Software | $ | 1,809,860 | $ | 1,518,142 | |||||
Accumulated amortization | (628,858 | ) | (386,599 | ) | |||||
Software, net | $ | 1,181,002 | $ | 1,131,543 | |||||
The following is a schedule of estimated future amortization expense of software at January 31, 2014: | |||||||||
Year Ending April 30, | |||||||||
2014 | $ | 90,493 | |||||||
2015 | 361,972 | ||||||||
2016 | 361,126 | ||||||||
2017 | 238,394 | ||||||||
2018 | 129,017 | ||||||||
Total | $ | 1,181,002 |
Courseware
Courseware | 9 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Courseware [Abstract] | ' | ||||||||
Courseware | ' | ||||||||
Note 5. Courseware | |||||||||
Courseware costs capitalized were $4,500 for the nine months ended January 31, 2014. | |||||||||
Courseware consisted of the following at January 31, 2014 and April 30, 2013: | |||||||||
January 31, | April 30, | ||||||||
2014 | 2013 | ||||||||
Courseware | $ | 2,102,037 | $ | 2,097,538 | |||||
Accumulated amortization | (1,972,670 | ) | (1,889,443 | ) | |||||
Courseware, net | $ | 129,367 | $ | 208,095 | |||||
Amortization expense of courseware for the three months ended January 31, 2014 and 2013 was $25,025 and $34,379, respectively. Amortization expense of courseware for the nine months ended January 31, 2014 and 2013 was $83,227 and $105,137, respectively. | |||||||||
The following is a schedule of estimated future amortization expense of courseware at January 31, 2014: | |||||||||
Year Ending April 30, | |||||||||
2014 | $ | 22,453 | |||||||
2015 | 65,917 | ||||||||
2016 | 28,630 | ||||||||
2017 | 9,996 | ||||||||
2018 | 2,371 | ||||||||
Total | $ | 129,367 |
Loans_Payable
Loans Payable | 9 Months Ended |
Jan. 31, 2014 | |
Loans Payable [Abstract] | ' |
Loans Payable | ' |
Note 6. Loans Payable | |
On June 28, 2013, the Company received $1,000,000 as a loan from the Chief Executive Officer. This loan is for a term of 6 months with an annual interest rate of 10%, payable monthly. On September 25, 2013, as a term of the convertible debenture issued as discussed in Note 7, the maturity of the debt to the CEO has been extended to April 2, 2015. |
Convertible_Notes_and_Debentur
Convertible Notes and Debenture Payable | 9 Months Ended |
Jan. 31, 2014 | |
Convertible Notes and Debenture Payable [Abstract] | ' |
Convertible Notes and Debenture Payable | ' |
Note 7. Convertible Notes and Debenture Payable | |
On February 25, 2012, February 27, 2012 and February 29, 2012, loans payable of $100,000, $50,000 and $50,000, respectively, were converted into two-year convertible promissory notes, bearing interest of 0.19% per annum. Beginning March 31, 2012, the notes are convertible into common shares of the Company at the rate of $1.00 per share. The Company evaluated the convertible notes and determined that, for the embedded conversion option, there was no beneficial conversion value to record as the conversion price is considered to be the fair market value of the common shares on the note issue dates. As these loans (now convertible promissory notes) are due in February 2014, they have been included in current liabilities as of January 31, 2014 and April 30, 2013. Two of the above mentioned notes were modified in February 2014. (See Note 11) | |
On March 13, 2012, the Company's CEO loaned the Company $300,000 and received a convertible promissory note due March 31, 2013, bearing interest at 0.19% per annum. The note is convertible into common shares of the Company at the rate of $1.00 per share upon five days written notice to the Company. The Company evaluated the convertible note and determined that, for the embedded conversion option, there was no beneficial conversion value to record as the conversion price is considered to be the fair market value of the common shares on the note issue date. On September 4, 2012, the maturity date was extended to August 31, 2013. On December 17, 2012, the maturity date was extended to August 31, 2014. On September 25, 2013, as a term of the convertible debenture issued as discussed further in this Note, the maturity of the debt to the CEO, has been extended to April 5, 2015. There was no accounting effect for these modifications. (See Note 10). | |
On August 14, 2012, the Company's CEO loaned the Company $300,000 and received a convertible promissory note, payable on demand, bearing interest at 5% per annum. The note is convertible into shares of common stock of the Company at a rate of $0.35 per share (based on proceeds received on September 28, 2012 under a private placement at $0.35 per unit). The Company evaluated the convertible notes and determined that, for the embedded conversion option, there was no beneficial conversion value to record as the conversion price is considered to be the fair market value of the shares of common stock on the note issue date. On September 4, 2012, the maturity date was extended to August 31, 2013. On December 17, 2012 the maturity date was extended to August 31, 2014. On September 25, 2013, as a term of the convertible debenture issued as discussed further in this Note, the maturity of the debt to the CEO has been extended to April 5, 2015. There was no accounting effect for these modifications. (See Note 10). | |
On September 26, 2013, the Company and an institutional investor (the "Institutional Investor") signed a Securities Purchase Agreement (the "Agreement") with respect to a loan of $2,240,000 evidenced by an 18 month original issue discount secured convertible debenture (the "Debenture") with gross proceeds of $2,000,000 prior to fees. Payments on the Debenture are due 25% on November 1, 2014, 25% on January 1, 2015 and the remaining 50% on April 1, 2015 as a final payment. The Company has the option to pay the interest or principal in stock subject to certain "Equity Conditions" such as giving notice of its intent 20 trading days beforehand. The Agreement provides that the Debenture may be converted at the holder's option at $0.3325 per share at any time after the closing and subject to adjustments. The Company evaluated that for the embedded conversion option, there was no beneficial conversion value to record as the conversion price was greater than the fair market value of the common shares on the note issue date. Warrants with a relative fair value of $389,565 were issued for 100% of the number of shares of common stock that could be purchased at the conversion price at closing or 6,736,842. The warrants have a five-year term and are exercisable for cash if an outstanding registration statement is in effect within 90 days of closing. The $389,565 is recorded as a debt discount to be amortized over the debt term. The Debenture bears 8% per annum interest and are amortizable in installments over their term. The financing closed on September 26, 2013 and the Company received proceeds of approximately $1.7 million, net of certain offering costs and before payment of various debt issue costs. Offering costs to the lender included an original issue discount of $240,000 and cash loan fees of $117,846. | |
In September 2013 Company had entered into an engagement agreement with Laidlaw & Co. ("Laidlaw") to act as placement agent for the offering and receive customary compensation. Laidlaw introduced the Institutional Investor. As a placement agent fee, the Company paid Laidlaw $207,500 and issued 1,347,368 five year warrants with an exercise price of $0.3325, valued at $94,316. The warrants and fees paid plus legal fees of $35,356 were recorded as a debt issue cost asset and are being amortized over the debt term. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Jan. 31, 2014 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
Note 8. Commitments and Contingencies | |
Line of Credit | |
The Company maintains a line of credit with a bank, up to a maximum credit line of $250,000. The line of credit bears interest equal to the prime rate plus 0.50% (overall interest rate of 3.75% at January 31, 2014). The line of credit requires minimum monthly payments consisting of interest only. The line of credit is secured by all business assets, inventory, equipment, accounts, general intangibles, chattel paper, documents, instruments and letter of credit rights of the Company. The line of credit is for an unspecified time until the bank notifies the Company of the Final Availability Date, at which time payments on the line of credit become the sum of: (a) accrued interest and (b) 1/60th of the unpaid principal balance immediately following the Final Availability Date, which equates to a five-year payment period. The balance due on the line of credit as of January 31, 2014 was $244,175. Since the earliest the line of credit is due and payable is over a five year period and the Company believes that it could obtain a comparable replacement line of credit elsewhere, the entire line of credit is included in long-term liabilities. The unused amount under the line of credit available to the Company at January 31, 2014 was $5,825. | |
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 were performance-based in nature. During the three months ended July 31, 2013, the Company renegotiated employment agreements. In contrast to the previous employment agreement, the new employment agreements do not include any guaranteed annual bonuses. | |
Legal Matters | |
From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. As of January 31, 2014, there were no 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 other than described below. | |
On February 11, 2013, HEMG and Mr. 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 November 8, 2013, the state court in New York granted the Company's motion to dismiss all of the derivative claims and all of the fiduciary duty claims. The state court in New York also granted the Company's motion to dismiss the duplicative breach of good faith and fair dealing claim, as well as the defamation claim. The state court in New York denied the Company's motion to dismiss as to the defamation per se claim. The Company did not file a motion to dismiss the breach of contract claim, so that claim remains as well. A status conference in state court of New York is scheduled for mid-March 2014 relative to the two remaining claims. | |
On November 21, 2013, HEMG and Mr. Spada filed a derivative suit on behalf of the Company against certain former senior management member and our directors in state court in Delaware. The Company is a nominal defendant. The complaint is substantially similar to the complaint filed in state court of New York, except that if successful, the Company will receive the benefits. While the Company has been advised by its counsel that these lawsuits are baseless, the Company cannot provide any assurance as to the ultimate outcome of the cases. Defending the litigations will be expensive and will require the expenditure of time which could otherwise be spent on the Company's business. While unlikely, if Mr. Spada's and HEMG's claims were to be successful, the damages the Company could pay could potentially be material. On February 28, 2014, the Company filed a motion to dismiss the complaint. Mr. Spada's opposition papers are due on March 31, 2014. Arguments will likely be in May or June. | |
On December 10, 2013, the Company filed a series of counter claims against HEMG and Mr. Spada in state court of New York. The plaintiffs filed a motion to dismiss our counterclaims. Our opposition papers are due on March 31, 2014. | |
Regulatory Matters | |
The Company's subsidiary, Aspen University Inc. ("Aspen University"), is 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 Aspen University 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. Aspen University has had provisional certification to participate in the Title IV programs. That provisional certification imposes certain regulatory restrictions including, but not limited to, a limit of 1,200 student recipients for Title IV funding for the duration of the provisional certification. The provisional certification restrictions continue with regard to Aspen University's participation in Title IV programs. | |
To participate in the Title IV programs, an institution must be authorized to offer its programs of instruction by the relevant agencies of the State in which it is located, and since July 2011, potentially in the States where an institution offers postsecondary education through distance education. In addition, an institution must be accredited by an accrediting agency recognized by the DOE and certified as eligible by the DOE. The DOE will certify an institution to participate in the Title IV programs only after the institution has demonstrated compliance with the HEA and the DOE's extensive academic, administrative, and financial regulations regarding institutional eligibility and certification. An institution must also demonstrate its compliance with these requirements to the DOE on an ongoing basis. Aspen University performs periodic reviews of its compliance with the various applicable regulatory requirements. As Title IV funds received in fiscal 2013 represented approximately 26% of the Company's cash revenues (including revenues from discontinued operations), as calculated in accordance with Department of Education guidelines, the loss of Title IV funding would have a material effect on the Company's future financial performance. | |
On March 27, 2012 and on August 31, 2012, Aspen University provided the DOE with letters of credit for which the due date was extended to December 31, 2013. On January 30, 2014, the DOE provided Aspen University with an option to become permanently certified by increasing the letter of credit to 50% of all Title IV funds received in the last program year, equaling $1,696,445, or to remain provisionally certified by increasing the 25% letter of credit to $848,225. Aspen informed the DOE of its desire to remain provisionally certified and plans to post the $848,225 letter of credit by the DOE approved extended deadline of April 17, 2014. The DOE may impose additional or different terms and conditions in any final provisional program participation agreement that it may issue (See Note 2 "Restricted Cash"). | |
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 Aspen University operates in a highly regulated industry, it may be subject from time to time to audits, investigations, claims of noncompliance or lawsuits by governmental agencies or third parties, which allege statutory violations, regulatory infractions or common law causes of action. | |
Return of Title IV Funds | |
An institution participating in Title IV programs must correctly calculate the amount of unearned Title IV program funds that have been disbursed to students who withdraw from their educational programs before completion and must return those unearned funds in a timely manner, no later than 45 days of the date the school determines that the student has withdrawn. Under Department 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 June 30, 2013, the Company filed its calendar year 2012 compliance audit with the Department of Education. As a result of the audit findings, the Company recognized that it had not fully complied with all requirements for calculating and making timely returns of Title IV funds (R2T4). In November 2013, the Company returned a total of $102,810 of Title IV funds to the Department of Education. | |
Delaware Approval to Confer Degrees | |
Aspen University is a Delaware corporation. Delaware law requires an institution to obtain approval from the Delaware Department of Education ("Delaware DOE") before it may incorporate with the power to confer degrees. On July 3, 2012, Aspen University received notice from the Delaware DOE that it is granted provisional approval status effective until June 30, 2015. Aspen University is authorized by the Colorado Commission on Education to operate in Colorado as a degree granting institution. | |
Letter of Credit | |
The Company maintains a letter of credit under a DOE requirement (See Note 2 "Restricted Cash" and Note 8 "Regulatory Matters"). |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Stockholders' Equity [Abstract] | ' | ||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||
Note 9. Stockholders' Equity | |||||||||||||||||
Common Stock | |||||||||||||||||
As part of two contracts entered into during the nine months ended January 31, 2014, the Company issued restricted stock to two firms as part of their fees for services. The fair value of the stock issued was set up as a prepaid expense and was amortized over the service period of the contract. Since the contract was terminated, the full amount was recognized during the three months ended January 31, 2014. On June 27, 2013, the Company issued one firm 317,143 shares of its common stock valued at $0.35 per share (based on recent sales of shares by the Company) to an investor relations firm pursuant to a service agreement with two service components, one for three months and one for 12 months. The $111,000 of expense was being recognized in two pieces, $90,000 over 12 months and $21,000 over three months. On July 24, 2013, the Company issued the second firm 300,000 shares of its common stock valued at $0.35 per share (based on recent sales of shares by the Company) to a business development consultant pursuant to a six month consulting agreement. The $105,000 of expense was being amortized over the life of the contract. Since the contract was terminated, the unamortized balance was recognized as an expense in the three months ended January 31, 2014. | |||||||||||||||||
The Company issued 7,006,064 shares of common stock and received $804,049 in connection with warrant exercises more fully described below. | |||||||||||||||||
As a result of the warrant modifications and exercises described below, the Company issued 3,270,678 shares of common stock as price protection on prior cash investments. | |||||||||||||||||
Warrants | |||||||||||||||||
A summary of the Company's warrant activity during the nine months ended January 31, 2014 is presented below: | |||||||||||||||||
Weighted | Average | ||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||
Number of | Exercise | Contractual | Intrinsic | ||||||||||||||
Warrants | Shares | Price | Term | Value | |||||||||||||
Balance Outstanding, April 30, 2013 | 9,090,292 | $ | 0.4 | ||||||||||||||
Issued | 14,378,183 | 0.29 | |||||||||||||||
Exercised | (4,231,840 | ) | 0.19 | ||||||||||||||
Forfeited | (40,000 | ) | 0.5 | ||||||||||||||
Expired | - | - | |||||||||||||||
Balance Outstanding, January 31, 2014 | 19,196,635 | $ | 0.33 | 4.5 | $ | 1,003,192 | |||||||||||
Exercisable, January 31, 2014 | 19,196,635 | $ | 0.33 | 4.5 | $ | 1,003,192 | |||||||||||
The Company issued 1,115,026 warrants to a placement agent as a fee related to prior investments. There was no accounting effect for this warrant issuance. | |||||||||||||||||
Certain of the Company's warrants contain price protection. The Company evaluated whether the price protection provision of the warrant would cause derivative treatment. In its assessment, the Company determined that since its shares are not readily convertible to cash due to a thinly trading market, the warrants are excluded from derivative treatment. | |||||||||||||||||
On September 26, 2013, warrants were issued in connection with a financing more fully described in Note 7 with a relative fair value of $389,565 were issued for 100% of the number of shares of common stock that could be purchased at the conversion price at closing or 6,736,842. The warrants have a five-year term and are exercisable for cash if an outstanding registration statement is in effect within 90 days of closing. Also, as a placement agent fee, the Company paid $207,500 and issued 1,347,368 five year warrants with an exercise price of $0.3325, valued at $94,316. The warrants and fees paid were recorded as a debt issue cost asset and are being amortized over the debt term (See Note 7). | |||||||||||||||||
On January 15, 2014, a warrant exercise offering was completed whereby 4,231,840 warrants were offered at an exercise price of $0.19 per warrant. The total proceeds received were $804,049 and since the exercise price was discounted from the stated prices of either $0.50 or $0.3325, a warrant modification expense of $156,952 was recorded in accordance with ASC 718-20-35. This expense was calculated by comparing the value of the warrants before and after the reduced price. | |||||||||||||||||
As a result of the $0.19 exercise, an additional 5,178,947 new warrants were issued at $0.19 per warrant as part of a price protection agreement with two investors. There was no accounting effect for this warrant issuance. | |||||||||||||||||
Stock Incentive Plan and Stock Option Grants to Employees and Directors | |||||||||||||||||
Immediately following the closing of the Reverse Merger, on March 13, 2012, the Company adopted the 2012 Equity Incentive Plan (the "Plan") that provides for the grant of 2,500,000 shares (increased to 5,600,000 shares effective September 28, 2012, to 8,000,000 shares effective January 16, 2013, 9,300,000 on May 14, 2013 and to 11,300,000 on December 17, 2013) in the form of incentive stock options, non-qualified stock options, restricted shares, stock appreciation rights and restricted stock units to employees, consultants, officers and directors. On January 16, 2013, 1,291,167 options were modified to be Plan options. There was no accounting effect for such modifications. As of January 31, 2014, there were 1,986,914 shares remaining under the Plan for future issuance. | |||||||||||||||||
During the three months ended July 31, 2013, the Company granted to employees 1,536,211 stock options, all of which were under the Plan, having an exercise price of $0.35 per share. 200,000 of these options vest pro rata over two years on each anniversary date, 545,000 of these options vest pro rata over three years on each anniversary date and 791,211 vest over 7 months starting June 30, 2013. All options expire five years from grant date. The total fair value of stock options granted to employees during the three months ended July 31, 2013 was $184,345, which is being recognized over the respective vesting periods. The Company recorded compensation expense of $148,608 for the three months ended July 31, 2013, in connection with outstanding employee stock options. The Company recorded compensation expense of $52,701 for the three months ended July 31, 2012, in connection with outstanding employee stock options. | |||||||||||||||||
During the three months ended October 31, 2013, the Company granted to employees 327,500 stock options, all of which were under the Plan, having an exercise price of $0.35 per share. All of these options vest ratably over three years and expire five years from the grant date. The total fair value of stock options granted to employees during the three months ended October 31, 2013 was $39,300, which is being recognized over the respective vesting periods. The Company recorded compensation expense of $147,226 for the three months ended October 31, 2013, in connection with outstanding employee stock options. The Company recorded compensation expense of $99,360 for the three months ended October 31, 2012, in connection with outstanding employee stock options. | |||||||||||||||||
During the three months ended January 31, 2014, the Company granted to non-employee directors 600,000 stock options, all of which were under the Plan, having an exercise price of $0.17 per share. All of these options vest ratably over four years and expire five years from the grant date. The total fair value of these options was $30,000, which is being recognized over the respective vesting periods. The Company recorded compensation expense of $98,609 for the three months ended January 31, 2014, in connection with outstanding employee stock options. The Company recorded compensation expense of $99,360 for the three months ended January 31, 2013, in connection with outstanding employee stock options. | |||||||||||||||||
The Company estimates the fair value of share-based compensation utilizing the Black-Scholes option pricing model, which is dependent upon several variables such as the expected option term, expected volatility of the Company's stock price over the expected term, expected risk-free interest rate over the expected option term, expected dividend yield rate over the expected option term, and an estimate of expected forfeiture rates. The Company believes this valuation methodology is appropriate for estimating the fair value of stock options granted to employees and directors which are subject to ASC Topic 718 requirements. These amounts are estimates and thus may not be reflective of actual future results, nor amounts ultimately realized by recipients of these grants. The Company recognizes compensation on a straight-line basis over the requisite service period for each award. The following table summarizes the assumptions the Company utilized to record compensation expense for stock options granted to employees during the three months ended January 31, 2014: | |||||||||||||||||
January 31, | |||||||||||||||||
Assumptions | 2014 | ||||||||||||||||
Expected life (years) | 3.75 | ||||||||||||||||
Expected volatility | 45.00% | ||||||||||||||||
Weighted-average volatility | 45.00% | ||||||||||||||||
Risk-free interest rate | 0.38% | ||||||||||||||||
Dividend yield | 0.00% | ||||||||||||||||
The Company utilized the simplified method to estimate the expected life for stock options granted to employees. The simplified method was used as the Company does not have sufficient historical data regarding stock option exercises. The expected volatility is based on the average of the expected volatilities from the most recent audited financial statements available for comparative public companies that are deemed to be similar in nature to the Company. The risk-free interest rate is based on the U.S. Treasury yields with terms equivalent to the expected life of the related option at the time of the grant. Dividend yield is based on historical trends. While the Company believes these estimates are reasonable, the compensation expense recorded would increase if the expected life was increased, a higher expected volatility was used, or if the expected dividend yield increased. | |||||||||||||||||
A summary of the Company's stock option activity for employees and directors during the nine months ended January 31, 2014 is presented below: | |||||||||||||||||
Weighted | |||||||||||||||||
Weighted | Average | ||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||
Number of | Exercise | Contractual | Intrinsic | ||||||||||||||
Options | Shares | Price | Term | Value | |||||||||||||
Balance Outstanding, April 30, 2013 | 7,344,381 | $ | 0.35 | ||||||||||||||
Issued | 2,463,711 | $ | 0.35 | ||||||||||||||
Exercised | - | ||||||||||||||||
Forfeited | (495,006 | ) | $ | 0.34 | |||||||||||||
Expired | - | ||||||||||||||||
Balance Outstanding, January 31, 2014 | 9,313,086 | $ | 0.34 | 4.1 | $ | - | |||||||||||
Exercisable, January 31, 2014 | 2,005,885 | $ | 0.35 | 3.8 | $ | - | |||||||||||
As of January 31, 2014, there was $684,745 of total unrecognized compensation costs related to nonvested share-based compensation arrangements. That cost is expected to be recognized over a weighted-average period of 4 years. | |||||||||||||||||
Stock Option Grants to Non-Employees | |||||||||||||||||
There were no stock options granted to non-employees during the nine months ended January 31, 2014. The Company recorded compensation expense of $2,244 for the nine months ended January 31, 2014 in connection with non-employee stock options. No expense was recorded during the same periods in 2013. | |||||||||||||||||
The following table summarizes the assumptions the Company utilized to record compensation expense for stock options granted to non-employees during the three months ended January 31, 2014: | |||||||||||||||||
January 31, | |||||||||||||||||
Assumptions | 2014 | ||||||||||||||||
Expected life (years) | NA | ||||||||||||||||
Expected volatility | NA | ||||||||||||||||
Weighted-average volatility | NA | ||||||||||||||||
Risk-free interest rate | NA | ||||||||||||||||
Dividend yield | NA | ||||||||||||||||
A summary of the Company's stock option activity for non-employees during the nine months ended January 31, 2014 is presented below: | |||||||||||||||||
Weighted | Average | ||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||
Number of | Exercise | Contractual | Intrinsic | ||||||||||||||
Options | Shares | Price | Term | Value | |||||||||||||
Balance Outstanding, April 30, 2013 | 270,000 | $ | 0.35 | ||||||||||||||
Granted | - | ||||||||||||||||
Exercised | - | ||||||||||||||||
Forfeited | - | ||||||||||||||||
Expired | - | ||||||||||||||||
Balance Outstanding, January 31, 2014 | 270,000 | $ | 0.35 | 3.7 | $ | - | |||||||||||
Exercisable, January 31, 2014 | 58,333 | N/A | N/A | N/A |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Jan. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Note 10. Related Party Transactions | |
See Note 3 for discussion of secured note and account receivable to related parties and see Notes 6 and 7 for discussion of loans payable and convertible notes payable to related parties. | |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Jan. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Note 11. Subsequent Events | |
On February 18, 2014 the company renegotiated the terms of one of the $50,000 convertible notes, specifically the one dated February 27, 2012. The maturity date was extended to December 1, 2014 and the conversion price has been reduced to $0.19 per share. The interest rate has been amended to 3.25% from February 27, 2014. This will be treated as a note extinguishment in accordance with ASC 470-50. | |
On February 28, 2014 the company renegotiated the terms of the $100,000 convertible note dated February 25, 2012. A payment was made in the amount of $25,000 on February 28, 2014, reducing the principal to $75,000. Another principal payment of $25,000 will be made on August 1, 2014 and $50,000 on December 1, 2014. Beginning February 25, 2014 through the date of final payment the interest rate was raised to 3.25%. The conversion price for all of the convertible options was reduced to $0.19 per share. This will be treated as a note extinguishment in accordance with ASC 470-50. | |
On March 6, 2014, a new Chief Academic Officer was named, Dr. Cheri St. Arnauld. She will receive a base salary of $120,000. After the earlier of the six month period and the Adjusted EBITDA milestone is met, the base salary shall be increased to $240,000. Additionally, she was granted 500,000 five-year stock options (exercisable at $0.19 per share), which vest in three equal increments on March 1, 2015, 2016 and 2017, subject to continued employment on each applicable vesting date. | |
On March 6, 2014, the Academic President of the University announced his retirement effective March 31, 2014 and will assume the title of President Emeritus. From April 1, 2014 to June 30, 2014, he will provide consulting services on an as-needed basis. | |
On March 10, 2014, several members of the Board of Directors contributed $600,000 in exchange for 3,157,895 shares of common stock and 3,157,895 warrants at $0.19 per share. | |
On March 11, 2014, the Company appointed Gerard Wendolowski as Chief Operating Officer and Janet Gill as Executive Vice President of the Company. Additionally, Ms. Gill was appointed interim Chief Financial Officer to replace Michael Matte who resigned to pursue other interests. Mr. Matte also entered into a Consulting Agreement with the Company where he agreed to provide part-time services during the period November 1, 2014 through April 30, 2015 in exchange for $150,000. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended |
Jan. 31, 2014 | |
Significant Accounting Policies [Abstract] | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
The unaudited consolidated financial statements include the accounts of Aspen Group, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of the unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts in the unaudited consolidated financial statements. Actual results could differ from those estimates. Significant estimates in the accompanying unaudited consolidated financial statements include the allowance for doubtful accounts and other receivables, the valuation of collateral on certain receivables, amortization periods and valuation of courseware and software development costs, valuation of beneficial conversion features in convertible debt, valuation of stock-based compensation, the valuation of net assets and liabilities from discontinued operations and the valuation allowance on deferred tax assets. | |
Restricted cash | ' |
Restricted Cash | |
Restricted cash represents amounts pledged as security for letters of credit for transactions involving Title IV programs. The Company considers $265,579 as restricted cash (shown as a current asset as of January 31, 2014). As of January 31, 2014, the account bears interest of 0.20%. (See Note 11) | |
Fair Value Measurements | ' |
Fair Value Measurements | |
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company classifies assets and liabilities recorded at fair value under the fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. The fair value measurements are classified under the following hierarchy: | |
Level 1-Observable inputs that reflect quoted market prices (unadjusted) for identical assets and liabilities in active markets; | |
Level 2-Observable inputs, other than quoted market prices, that are either directly or indirectly observable in the marketplace for identical or similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities; and | |
Level 3-Unobservable inputs that are supported by little or no market activity that are significant to the fair value of assets or liabilities. | |
The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. | |
Title IV Funds in Transit | ' |
Title IV Funds in Transit | |
The Company receives Title IV funds from the Department of Education to cover tuition and living expenses. Until forwarded to the student, this amount is captured in a current liability account called Title IV Funds in Transit. Typically, the funds are paid to the students within two weeks. | |
Revenue Recognition and Deferred Revenue | ' |
Revenue Recognition and Deferred Revenue | |
Revenues consist primarily of tuition and fees derived from courses taught by the Company online as well as from related educational resources that the Company provides to its students, such as access to our online materials and learning management system. Tuition revenue is recognized pro-rata over the applicable period of instruction. The Company maintains an institutional tuition refund policy, 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'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 annual fees for library, technology and other services, which are recognized over the related service period. 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. Other revenues may be recognized as sales occur or services are performed. | |
Revenue Recognition and Deferred Revenue - Discontinued Operations | ' |
Revenue Recognition and Deferred Revenue - Discontinued Operations | |
The Company enters into certain revenue sharing arrangements with consultants whereby the consultants will develop course content primarily for technology-related courses, recommend, but not select, faculty, lease equipment on behalf of the Company for instructional purposes for the on-site laboratory portion of distance learning courses and make introductions to corporate and government sponsoring organizations that provide students for the courses. The Company has evaluated ASC 605-45 "Principal Agent Considerations" and determined that there are more indicators than not that the Company is the primary obligor in the arrangements since the Company establishes the tuition, interfaces with the student or sponsoring organization, selects the faculty, is responsible for delivering the course, is responsible for issuing any degrees or certificates, and is responsible for collecting the tuition and fees. The gross tuition and fees are included in revenues while the revenue sharing payments are included in instructional costs and services, an operating expense. As a result of presenting this component as discontinued operations, the revenues are now included in income (loss) from discontinued operations, net of income taxes for all periods presented (See Note 1). | |
Net Loss Per Share | ' |
Net Loss Per Share | |
Net loss per common share is based on the weighted average number of common shares outstanding during each period. Options to purchase 9,583,086 and 6,880,467 common shares, warrants to purchase 19,196,635 and 7,216,522 common shares, and $2,240,000 and $800,000 of convertible debt (convertible into 8,093,985 and 1,357,143 common shares) were outstanding during the nine months ended January 31, 2014 and 2013, respectively, but were not included in the computation of diluted loss per share because the effects would have been anti-dilutive. The options, warrants and convertible debt are considered to be common stock equivalents and are only included in the calculation of diluted earnings per common share when their effect is dilutive. | |
Reclassifications | ' |
Reclassifications | |
The Company reclassified $235,311 and $253,883 at January 31, 2014 and April 30, 2013, respectively, from Deferred Revenue to Title IV Funds in Transit. Both are classified in Current Liabilities. For the nine months ended January 31, 2014, the Company reclassified $113,250, from Cost of Revenues to General and Administrative, both within Operating Expenses. There were no corresponding reclassifications for the three and nine months ended January 31, 2013. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
We have implemented all new accounting standards that are in effect and that may impact our unaudited consolidated financial statements and do not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on our consolidated financial position or results of operations. |
Nature_of_Operations_and_Liqui1
Nature of Operations and Liquidity (Tables) | 9 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Nature of Operations and Liquidity [Abstract] | ' | ||||||||||||||||
Schedule of Discontinued Operations | ' | ||||||||||||||||
The following table shows the results of the "Smart Home Integration Certificate" program component included in the income (loss) from discontinued operations: | |||||||||||||||||
For the | For the | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues | $ | - | $ | 202,571 | $ | 549,125 | $ | 1,290,508 | |||||||||
Costs and expenses: | |||||||||||||||||
Instructional costs and services | - | 182,794 | 494,21 3 | 1,130,556 | |||||||||||||
General and administrative | (29,751 | ) | 170,000 | (29,751 | ) | 170,000 | |||||||||||
Total costs and expenses | (29,751 | ) | 352,794 | 464,462 | 1,300,556 | ||||||||||||
Income (loss) from discontinued operations, net of income taxes | $ | 29,751 | $ | (150,223 | ) | $ | 84,663 | $ | (10,048 | ) | |||||||
The major classes of assets and liabilities of discontinued operations on the balance sheet are as follows: | |||||||||||||||||
January 31, | April 30, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | - | $ | - | |||||||||||||
Accounts receivable, net of allowance of $481,531 and $295,045, respectively | 5,250 | 113,822 | |||||||||||||||
Other current assets | - | - | |||||||||||||||
Net assets from discontinued operations | $ | 5,250 | $ | 113,822 | |||||||||||||
Liabilities | |||||||||||||||||
Accounts payable | $ | 11,475 | $ | 1,178 | |||||||||||||
Accrued expenses | - | 70,201 | |||||||||||||||
Deferred revenue | - | 53,125 | |||||||||||||||
Net liabilities from discontinued operations | $ | 11,475 | $ | 124,504 |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 9 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Property and Equipment [Abstract] | ' | ||||||||
Schedule of Property and Equipment | ' | ||||||||
Property and equipment consisted of the following at January 31, 2014 and April 30, 2013: | |||||||||
January 31, | April 30, | ||||||||
2014 | 2013 | ||||||||
Call center equipment | $ | 122,653 | $ | 121,313 | |||||
Computer and office equipment | 66,118 | 61,036 | |||||||
Furniture and fixtures | 32,914 | 32,914 | |||||||
Library (online) | 100,000 | 100,000 | |||||||
Software | 1,809,860 | 1,518,142 | |||||||
2,131,545 | 1,833,405 | ||||||||
Accumulated depreciation and amortization | (837,427 | ) | (569,665 | ) | |||||
Property and equipment, net | $ | 1,294,118 | $ | 1,263,740 | |||||
Schedule of Software, net | ' | ||||||||
Software consisted of the following at January 31, 2014 and April 30, 2013: | |||||||||
January 31, | April 30, | ||||||||
2014 | 2013 | ||||||||
Software | $ | 1,809,860 | $ | 1,518,142 | |||||
Accumulated amortization | (628,858 | ) | (386,599 | ) | |||||
Software, net | $ | 1,181,002 | $ | 1,131,543 | |||||
Schedule of estimated future amortization expense | ' | ||||||||
The following is a schedule of estimated future amortization expense of software at January 31, 2014: | |||||||||
Year Ending April 30, | |||||||||
2014 | $ | 90,493 | |||||||
2015 | 361,972 | ||||||||
2016 | 361,126 | ||||||||
2017 | 238,394 | ||||||||
2018 | 129,017 | ||||||||
Total | $ | 1,181,002 |
Courseware_Tables
Courseware (Tables) | 9 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Courseware [Abstract] | ' | ||||||||
Schedule of Courseware, Net | ' | ||||||||
Courseware consisted of the following at January 31, 2014 and April 30, 2013: | |||||||||
January 31, | April 30, | ||||||||
2014 | 2013 | ||||||||
Courseware | $ | 2,102,037 | $ | 2,097,538 | |||||
Accumulated amortization | (1,972,670 | ) | (1,889,443 | ) | |||||
Courseware, net | $ | 129,367 | $ | 208,095 | |||||
Schedule of Courseware Future Amortization Expense | ' | ||||||||
The following is a schedule of estimated future amortization expense of courseware at January 31, 2014: | |||||||||
Year Ending April 30, | |||||||||
2014 | $ | 22,453 | |||||||
2015 | 65,917 | ||||||||
2016 | 28,630 | ||||||||
2017 | 9,996 | ||||||||
2018 | 2,371 | ||||||||
Total | $ | 129,367 | |||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Stockholders' Equity [Abstract] | ' | ||||||||||||||||
Schedule of Warrants Activity | ' | ||||||||||||||||
A summary of the Company's warrant activity during the nine months ended January 31, 2014 is presented below: | |||||||||||||||||
Weighted | Average | ||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||
Number of | Exercise | Contractual | Intrinsic | ||||||||||||||
Warrants | Shares | Price | Term | Value | |||||||||||||
Balance Outstanding, April 30, 2013 | 9,090,292 | $ | 0.4 | ||||||||||||||
Issued | 14,378,183 | 0.29 | |||||||||||||||
Exercised | (4,231,840 | ) | 0.19 | ||||||||||||||
Forfeited | (40,000 | ) | 0.5 | ||||||||||||||
Expired | - | - | |||||||||||||||
Balance Outstanding, January 31, 2014 | 19,196,635 | $ | 0.33 | 4.5 | $ | 1,003,192 | |||||||||||
Exercisable, January 31, 2014 | 19,196,635 | $ | 0.33 | 4.5 | $ | 1,003,192 | |||||||||||
Stock Incentive Plan To Employees And Directors [Member] | ' | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Schedule of Assumptions Used In Valuing Stock Options | ' | ||||||||||||||||
The following table summarizes the assumptions the Company utilized to record compensation expense for stock options granted to employees during the three months ended January 31, 2014: | |||||||||||||||||
January 31, | |||||||||||||||||
Assumptions | 2014 | ||||||||||||||||
Expected life (years) | 3.75 | ||||||||||||||||
Expected volatility | 45.00% | ||||||||||||||||
Weighted-average volatility | 45.00% | ||||||||||||||||
Risk-free interest rate | 0.38% | ||||||||||||||||
Dividend yield | 0.00% | ||||||||||||||||
Schedule of Stock Option Activity | ' | ||||||||||||||||
A summary of the Company's stock option activity for employees and directors during the nine months ended January 31, 2014 is presented below: | |||||||||||||||||
Weighted | |||||||||||||||||
Weighted | Average | ||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||
Number of | Exercise | Contractual | Intrinsic | ||||||||||||||
Options | Shares | Price | Term | Value | |||||||||||||
Balance Outstanding, April 30, 2013 | 7,344,381 | $ | 0.35 | ||||||||||||||
Issued | 2,463,711 | $ | 0.35 | ||||||||||||||
Exercised | - | ||||||||||||||||
Forfeited | (495,006 | ) | $ | 0.34 | |||||||||||||
Expired | - | ||||||||||||||||
Balance Outstanding, January 31, 2014 | 9,313,086 | $ | 0.34 | 4.1 | $ | - | |||||||||||
Exercisable, January 31, 2014 | 2,005,885 | $ | 0.35 | 3.8 | $ | - | |||||||||||
Stock Incentive Plan To Non Employees [Member] | ' | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Schedule of Assumptions Used In Valuing Stock Options | ' | ||||||||||||||||
The following table summarizes the assumptions the Company utilized to record compensation expense for stock options granted to non-employees during the three months ended January 31, 2014: | |||||||||||||||||
January 31, | |||||||||||||||||
Assumptions | 2014 | ||||||||||||||||
Expected life (years) | NA | ||||||||||||||||
Expected volatility | NA | ||||||||||||||||
Weighted-average volatility | NA | ||||||||||||||||
Risk-free interest rate | NA | ||||||||||||||||
Dividend yield | NA | ||||||||||||||||
Schedule of Stock Option Activity | ' | ||||||||||||||||
A summary of the Company's stock option activity for non-employees during the nine months ended January 31, 2014 is presented below: | |||||||||||||||||
Weighted | Average | ||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||
Number of | Exercise | Contractual | Intrinsic | ||||||||||||||
Options | Shares | Price | Term | Value | |||||||||||||
Balance Outstanding, April 30, 2013 | 270,000 | $ | 0.35 | ||||||||||||||
Granted | - | ||||||||||||||||
Exercised | - | ||||||||||||||||
Forfeited | - | ||||||||||||||||
Expired | - | ||||||||||||||||
Balance Outstanding, January 31, 2014 | 270,000 | $ | 0.35 | 3.7 | $ | - | |||||||||||
Exercisable, January 31, 2014 | 58,333 | N/A | N/A | N/A |
Nature_of_Operations_and_Liqui2
Nature of Operations and Liquidity (Details) (USD $) | 6 Months Ended | 9 Months Ended | 1 Months Ended | |
Jul. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2013 | Mar. 31, 2014 | |
Subsequent Event [Member] | ||||
Nature of Operations and Liquidity [Abstract] | ' | ' | ' | ' |
Approximate cash position | ' | $1,100,000 | ' | ' |
Expected future cash use | 750,000 | ' | ' | ' |
Proceeds from warrant exercise | ' | 804,049 | ' | ' |
Restricted cash | ' | 266,000 | ' | ' |
Subsequent Event [Line Items] | ' | ' | ' | ' |
Additional equity funds raised | ' | ' | ' | 600,000 |
Amount company intends to raise as additional capital | ' | ' | ' | $400,000 |
Nature_of_Operations_and_Liqui3
Nature of Operations and Liquidity (Schedule of Discontinued Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | Apr. 30, 2013 | |
Discontinued Operations | ' | ' | ' | ' | ' |
Revenues | ' | $202,571 | $549,125 | $1,290,508 | ' |
Costs and expenses: | ' | ' | ' | ' | ' |
Instructional costs and services | ' | 182,794 | 494,213 | 1,130,556 | ' |
General and administrative | -29,751 | 170,000 | -29,751 | 170,000 | ' |
Total costs and expenses | -29,751 | 352,794 | 464,462 | 1,300,556 | ' |
Income (loss) from discontinued operations, net of income taxes | 29,751 | -150,223 | 84,663 | -10,048 | ' |
Assets | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' | ' |
Accounts receivable, net of allowance of $481,531 and $295,045, respectively | 5,250 | ' | 5,250 | ' | 113,822 |
Other current assets | ' | ' | ' | ' | ' |
Net assets from discontinued operations | 5,250 | ' | 5,250 | ' | 113,822 |
Liabilities | ' | ' | ' | ' | ' |
Accounts payable | 11,475 | ' | 11,475 | ' | 1,178 |
Accrued expenses | ' | ' | ' | ' | 70,201 |
Deferred revenue | ' | ' | ' | ' | 53,125 |
Net liabilities from discontinued operations | $11,475 | ' | $11,475 | ' | $124,504 |
Significant_Accounting_Policie2
Significant Accounting Policies (Details) (USD $) | 9 Months Ended | 9 Months Ended | ||||||
Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | |
Stock Options [Member] | Stock Options [Member] | Warrant [Member] | Warrant [Member] | Convertible Debt [Member] | Convertible Debt [Member] | |||
Significant Accounting Policies [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted cash | $265,579 | $265,173 | ' | ' | ' | ' | ' | ' |
Letter of credit interest rate | 0.20% | ' | ' | ' | ' | ' | ' | ' |
Amount Reclassified From Deferred Revenue To Title Four Funds In Transit | 235,311 | 253,883 | ' | ' | ' | ' | ' | ' |
Amount reclassified from cost of revenues to general and administrative expenses | 113,250 | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive securities | ' | ' | 9,583,086 | 6,880,467 | 19,196,635 | 7,216,522 | 8,093,985 | 1,357,143 |
Convertible debt | ' | ' | ' | ' | ' | ' | $2,240,000 | $800,000 |
Secured_Note_and_Accounts_Rece1
Secured Note and Accounts Receivable - Related Parties (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||
Mar. 31, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | Apr. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Mar. 08, 2012 | Dec. 31, 2008 | Mar. 31, 2008 | Mar. 13, 2012 | Sep. 16, 2011 | Mar. 13, 2012 | |
CEO [Member] | Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | Third Party [Member] | |||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Courseware sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | $600,000 | $455,000 | ' | ' | ' |
Series C Preferred Shares pledged by HEMG | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 772,793 | ' |
Series C Preferred Shares pledeged by HEMG, converted to common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 654,850 | ' | ' |
Common shares pledged | ' | ' | ' | ' | ' | ' | ' | ' | 117,943 | ' | ' | ' | ' | ' |
Common stock, price per share | ' | $0.19 | ' | $0.19 | ' | ' | ' | $0.35 | $1 | ' | ' | ' | ' | $0.50 |
Accounts receivable, secured - related party, net of allowance | ' | 146,831 | ' | 146,831 | ' | 270,478 | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for doubtful accounts | ' | 625,962 | ' | 625,962 | ' | 502,315 | 502,315 | ' | ' | ' | ' | ' | ' | ' |
Third party investors purchased, shares | ' | ' | ' | ' | ' | ' | ' | 336,000 | ' | ' | ' | ' | ' | 400,000 |
Purchase value of shares | ' | ' | ' | ' | ' | ' | ' | 168,000 | ' | ' | ' | ' | ' | ' |
Company purchased, shares | ' | ' | ' | ' | ' | ' | ' | 264,000 | ' | ' | ' | ' | ' | ' |
Company purchased shares, value | ' | ' | ' | ' | ' | ' | ' | 132,000 | ' | ' | ' | ' | ' | ' |
Shares guaranteed to be purchased by the Company | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares the Company guaranteed it would use its best efforts to purchase from HEMG and resell to investors | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Company shall consent to additional private transfers | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares HEMG agreed to not sell, pledge or otherwise transfer | 142,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dispute regarding the Company's claim that HEMG sold 131,500 common shares of the Company without having enough authorized shares | 131,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares a stockholder did not receive | 11,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivable collateral recognized expense | ' | $123,647 | ' | $123,647 | $502,316 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | |
Property and Equipment [Abstract] | ' | ' | ' | ' |
Depreciation and amortization | $96,879 | $77,484 | $267,763 | $211,004 |
Software amortization expense | $87,610 | $68,676 | $242,259 | $186,466 |
Property_and_Equipment_Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $2,131,545 | $1,833,405 |
Less accumulated depreciation and amortization | -837,427 | -569,665 |
Total property and equipment, net | 1,294,118 | 1,263,740 |
Call center equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 122,653 | 121,313 |
Computer and office equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 66,118 | 61,036 |
Furniture and fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 32,914 | 32,914 |
Library (online) [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 100,000 | 100,000 |
Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $1,809,860 | $1,518,142 |
Property_and_Equipment_Schedul1
Property and Equipment (Schedule of Software, Net) (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | $129,367 | $208,095 |
Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Software | 1,809,860 | 1,518,142 |
Accumulated amortization | -628,858 | -386,599 |
Total | $1,181,002 | $1,131,543 |
Property_and_Equipment_Schedul2
Property and Equipment (Schedule of Estimated Future Amortization Expense) (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | $129,367 | $208,095 |
Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
2014 | 90,493 | ' |
2015 | 361,972 | ' |
2016 | 361,126 | ' |
2017 | 238,394 | ' |
2018 | 129,017 | ' |
Total | $1,181,002 | $1,131,543 |
Courseware_Details
Courseware (Details) (Courseware [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | |
Courseware [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortization | $25,025 | $34,379 | $83,227 | $105,137 |
Courseware costs capitalized | ' | ' | $4,500 | ' |
Courseware_Schedule_of_Coursew
Courseware (Schedule of Courseware, Net) (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Total | $129,367 | $208,095 |
Courseware [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Courseware | 2,102,037 | 2,097,538 |
Accumulated amortization | -1,972,670 | -1,889,443 |
Total | $129,367 | $208,095 |
Courseware_Schedule_of_Coursew1
Courseware (Schedule of Courseware Future Amortization Expense) (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Total | $129,367 | $208,095 |
Courseware [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2014 | 22,453 | ' |
2015 | 65,917 | ' |
2016 | 28,630 | ' |
2017 | 9,996 | ' |
2018 | 2,371 | ' |
Total | $129,367 | $208,095 |
Loans_Payable_Details
Loans Payable (Details) (CEO [Member], USD $) | 1 Months Ended | ||||||
Sep. 30, 2013 | Jun. 30, 2013 | Aug. 31, 2012 | Mar. 31, 2012 | Jun. 28, 2013 | Aug. 14, 2012 | Mar. 13, 2012 | |
CEO [Member] | ' | ' | ' | ' | ' | ' | ' |
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | $1,000,000 | $300,000 | $300,000 |
Term of debentures | ' | '6 months | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | 10.00% | 5.00% | 0.19% |
Maturity date | 2-Apr-15 | ' | 5-Apr-15 | 5-Apr-15 | ' | ' | ' |
Convertible_Notes_and_Debentur1
Convertible Notes and Debenture Payable (Details) (USD $) | 1 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||||||
Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2013 | Feb. 29, 2012 | Feb. 25, 2012 | Feb. 29, 2012 | Feb. 27, 2012 | Feb. 29, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Aug. 31, 2012 | Mar. 31, 2012 | Jun. 28, 2013 | Aug. 14, 2012 | Mar. 13, 2012 | Sep. 30, 2013 | Sep. 26, 2013 | Sep. 30, 2013 | Sep. 26, 2013 | |
Convertible Promissory Note Dated February 25, 2012 [Member] | Convertible Promissory Note Dated February 25, 2012 [Member] | Convertible Promissory Note Dated February 27, 2012 [Member] | Convertible Promissory Note Dated February 27, 2012 [Member] | Convertible Promissory Note Dated February 29, 2012 [Member] | CEO [Member] | CEO [Member] | CEO [Member] | CEO [Member] | CEO [Member] | CEO [Member] | CEO [Member] | Institutional Investor [Member] | Institutional Investor [Member] | Laidlaw and Co [Member] | Laidlaw and Co [Member] | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | 0.19% | ' | 0.19% | 0.19% | ' | ' | ' | ' | 10.00% | 5.00% | 0.19% | ' | 8.00% | ' | ' |
Term of debentures | ' | ' | ' | '2 years | ' | '2 years | ' | '2 years | ' | '6 months | ' | ' | ' | ' | ' | '1 year 6 months | ' | '5 years | ' |
Debt conversion, price per share | ' | ' | ' | ' | $1 | ' | $1 | $1 | ' | ' | ' | ' | ' | $0.35 | $1 | ' | $0.33 | ' | $0.33 |
Maturity date | ' | ' | ' | ' | ' | ' | ' | ' | 2-Apr-15 | ' | 5-Apr-15 | 5-Apr-15 | ' | ' | ' | ' | ' | ' | ' |
Convertible notes payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,000,000 | ' | ' |
Face value of loan | ' | ' | ' | ' | 100,000 | ' | 50,000 | 50,000 | ' | ' | ' | ' | 1,000,000 | 300,000 | 300,000 | ' | 2,240,000 | ' | ' |
Percentage of the note balance due on November 1, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' |
Percentage of the note balance due on January 1, 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' |
Percentage of the note balance due on April 1, 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' |
Proceeds from convertible debentures | ' | 1,639,298 | 947,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | ' | ' | ' |
Fees Paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 117,846 | ' | 207,500 | ' |
Legal Fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,356 | ' |
Shares issued from conversion of convertible debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,736,842 | ' | ' | ' |
Issuance of common shares and warrants for services, Shares | 4,231,840 | 1,986,914 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,347,368 | ' | ' | ' |
Warrant value recorded as debt discount | 804,049 | 389,565 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant value recorded as debt issue cost | $156,952 | $94,316 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 1 Months Ended | 9 Months Ended | ||
Nov. 30, 2013 | Jan. 31, 2014 | Jan. 30, 2014 | Feb. 11, 2013 | |
Commitments and Contingencies [Abstract] | ' | ' | ' | ' |
Line of credit, interest rate at period end | ' | 3.75% | ' | ' |
LIBOR spread | ' | 0.50% | ' | ' |
Line of credit, outstanding | ' | $244,175 | $1,696,445 | ' |
Line of credit, remaining available | ' | 5,825 | 848,225 | ' |
Title IV Funds received as a percentage of revenue | ' | 26.00% | ' | ' |
Remittance of Title IV funds to the Department of Education due to students ineligibility to receive the funds | 102,810 | ' | ' | ' |
Possible estimated loss due to unauthorized borrowing | ' | ' | ' | $2,200,000 |
Stockholders_Equity_Narrative_
Stockholders' Equity (Narrative) (Details) (USD $) | 1 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||||||||
Jan. 31, 2014 | Jul. 31, 2013 | Jun. 30, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | Dec. 17, 2013 | Jul. 24, 2013 | Jun. 27, 2013 | 14-May-13 | Jan. 16, 2013 | Sep. 28, 2012 | Mar. 13, 2012 | Sep. 30, 2013 | Sep. 26, 2013 | Sep. 30, 2013 | Sep. 26, 2013 | |||
Institutional Investor [Member] | Institutional Investor [Member] | Laidlaw and Co [Member] | Laidlaw and Co [Member] | |||||||||||||||
Stockholders' Equity [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Issuance of common shares for services, shares | ' | 300,000 | 317,143 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Common stock issued, price per share | ' | $0.35 | $0.35 | ' | ' | ' | $0.35 | $0.35 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Issuance of common shares for services | ' | $105,000 | $111,000 | $216,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Equity Incentive Plan, shares authorized | ' | ' | ' | ' | ' | 11,300,000 | ' | ' | 9,300,000 | 8,000,000 | 5,600,000 | 2,500,000 | ' | ' | ' | ' | ||
Warrants exercised | ' | ' | ' | 804,049 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Warrants exercised, shares | 7,006,064 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Stock issued for price protection, shares | 3,270,678 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Exercise price of warrants | 0.19 | [1] | ' | ' | 0.19 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options modified to be plan options | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,291,167 | ' | ' | ' | ' | ' | ' | ||
Newly issued warrents due to price protection agreement | ' | ' | ' | 5,178,947 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Conversion of notes payable, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,736,842 | ' | ' | ' | ||
Term of debentures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 6 months | ' | '5 years | ' | ||
Fees Paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 117,846 | ' | 207,500 | ' | ||
Issuance of common shares and warrants for services, Shares | 4,231,840 | ' | ' | 1,986,914 | ' | ' | ' | ' | ' | ' | ' | ' | 1,347,368 | ' | ' | ' | ||
Debt conversion, price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.33 | ' | $0.33 | ||
Warrant value recorded as debt discount | 804,049 | ' | ' | 389,565 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Warrant value recorded as debt issue cost | $156,952 | ' | ' | $94,316 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] |
Stockholders_Equity_Schedule_o
Stockholders' Equity (Schedule of Warrants) (Details) (Warrant [Member], USD $) | 9 Months Ended |
Jan. 31, 2014 | |
Warrant [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Beginning Balance | 9,090,292 |
Issued | 14,378,183 |
Exercised | -4,231,840 |
Forfeited | -40,000 |
Expired | ' |
Ending Balance | 19,196,635 |
Weighted average exercise price, beginning | $0.40 |
Weighted average exercise price, issued | $0.29 |
Weighted average exercise price, exercised | $0.19 |
Weighted average exercise price, forfeited | $0.50 |
Weighted average exercise price, expired | ' |
Weighted average exercise price, ending | $0.33 |
Weighted Average Remaining Contractual Term, Outstanding | '4 years 6 months |
Aggregate Intrinsic Value, Outstanding | $1,003,192 |
Exercisable | 19,196,635 |
Weighted Average Exercise Price, Exercisable | $0.33 |
Weighted Average Remaining Contractual Term, Exercisable | '4 years 6 months |
Aggregate Intrinsic Value, Exercisable | $1,003,192 |
Stockholders_Equity_Schedule_o1
Stockholders' Equity (Schedule of Assumptions Used In Valuing Stock Options) (Details) | 3 Months Ended |
Jan. 31, 2014 | |
Stock Incentive Plan To Employees And Directors [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expected life (years) | '3 years 9 months |
Expected volatility | 45.00% |
Weighted-average volatility | 45.00% |
Risk-free interest rate | 0.38% |
Dividend yield | 0.00% |
Stock Incentive Plan To Non Employees [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expected volatility | ' |
Weighted-average volatility | ' |
Risk-free interest rate | ' |
Dividend yield | ' |
Stockholders_Equity_Schedule_o2
Stockholders' Equity (Schedule of Stock Option Activity) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Jan. 31, 2013 | Jul. 31, 2012 | Jan. 31, 2014 | |
Stock Incentive Plan To Employees And Directors [Member] | ' | ' | ' | ' | ' | ' |
Number of Shares | ' | ' | ' | ' | ' | ' |
Options Outstanding, beginning balance | ' | ' | 7,344,381 | ' | ' | 7,344,381 |
Issued | ' | 327,500 | 1,536,211 | ' | ' | 2,463,711 |
Exercised | ' | ' | ' | ' | ' | ' |
Forfeited | ' | ' | ' | ' | ' | -495,006 |
Expired | ' | ' | ' | ' | ' | ' |
Options Outstanding, ending balance | 9,313,086 | ' | ' | ' | ' | 9,313,086 |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price Outstanding, Beginning | ' | ' | $0.35 | ' | ' | $0.35 |
Granted | ' | ' | ' | ' | ' | $0.35 |
Forfeited | ' | ' | ' | ' | ' | $0.34 |
Weighted Average Exercise Price Outstanding, Ending | $0.34 | ' | ' | ' | ' | $0.34 |
Options Outstanding, Aggregate Intrinsic Value | ' | $0.35 | ' | ' | ' | ' |
Options Exercisable, Weighted Average Exercise Price | $0.35 | $0.35 | ' | ' | ' | $0.35 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | ' | ' | ' | ' | ' | '3 years 9 months 18 days |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | ' | ' | ' | ' | ' | '4 years 1 month 6 days |
Options Exercisable, shares | 2,005,885 | ' | ' | ' | ' | 2,005,885 |
Weighted average grant-date fair value of stock options granted | ' | ' | ' | ' | ' | ' |
Options Exercisable, Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | 684,745 | ' | ' | ' | ' | 684,745 |
Weighted average recognition period | ' | ' | ' | ' | ' | '4 years |
Options granted fair value | ' | $39,300 | $184,345 | ' | ' | ' |
Share based compensation related to employees | ' | 147,226 | 148,608 | 99,360 | 52,701 | ' |
Stock Incentive Plan To Employees And Directors [Member] | Two Year Prorata Vesting [Member] | ' | ' | ' | ' | ' | ' |
Number of Shares | ' | ' | ' | ' | ' | ' |
Issued | ' | ' | 200,000 | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | '2 years | ' | ' | ' |
Stock Incentive Plan To Employees And Directors [Member] | Three Year Prorata Vesting [Member] | ' | ' | ' | ' | ' | ' |
Number of Shares | ' | ' | ' | ' | ' | ' |
Issued | ' | ' | 545,000 | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | '3 years | ' | ' | ' |
Stock Incentive Plan To Employees And Directors [Member] | Seven Month Vesting [Member] | ' | ' | ' | ' | ' | ' |
Number of Shares | ' | ' | ' | ' | ' | ' |
Issued | ' | ' | 791,211 | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | '7 months | ' | ' | ' |
Stock Incentive Plan To Non Employees [Member] | ' | ' | ' | ' | ' | ' |
Number of Shares | ' | ' | ' | ' | ' | ' |
Options Outstanding, beginning balance | ' | ' | 270,000 | ' | ' | 270,000 |
Issued | 600,000 | ' | ' | ' | ' | ' |
Exercised | ' | ' | ' | ' | ' | ' |
Forfeited | ' | ' | ' | ' | ' | ' |
Expired | ' | ' | ' | ' | ' | ' |
Options Outstanding, ending balance | 270,000 | ' | ' | ' | ' | 270,000 |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price Outstanding, Beginning | ' | ' | $0.35 | ' | ' | $0.35 |
Granted | $0.17 | ' | ' | ' | ' | ' |
Forfeited | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price Outstanding, Ending | $0.35 | ' | ' | ' | ' | $0.35 |
Options Outstanding, Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | ' | ' | ' | ' | ' | ' |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | ' | ' | ' | ' | ' | '3 years 8 months 12 days |
Options Exercisable, shares | 58,333 | ' | ' | ' | ' | 58,333 |
Weighted average recognition period | '4 years | ' | ' | ' | ' | ' |
Options granted fair value | ' | ' | ' | ' | ' | $30,000 |
Share based compensation related to employees | 98,609 | ' | ' | ' | ' | ' |
Share based compensation related to non-employees | ' | ' | ' | ' | ' | $2,244 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Feb. 25, 2012 | Feb. 29, 2012 | Feb. 27, 2012 | Jan. 31, 2014 | Mar. 31, 2014 | Mar. 06, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Aug. 31, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 18, 2014 |
Convertible Promissory Note Dated February 25, 2012 [Member] | Convertible Promissory Note Dated February 29, 2012 [Member] | Convertible Promissory Note Dated February 27, 2012 [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |
Chief Academic Officer [Member] | Chief Academic Officer [Member] | Board of Directors [Member] | Board of Directors [Member] | Chief Operating Officer [Member] | Convertible Promissory Note Dated February 25, 2012 [Member] | Convertible Promissory Note Dated February 25, 2012 [Member] | Convertible Promissory Note Dated February 25, 2012 [Member] | Convertible Promissory Note Dated February 27, 2012 [Member] | Convertible Promissory Note Dated February 27, 2012 [Member] | |||||
Warrant [Member] | ||||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt conversion, price per share | $1 | $1 | $1 | ' | ' | ' | ' | ' | ' | ' | ' | $0.19 | ' | $0.19 |
Interest rate increase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.25% | 3.25% | ' |
Maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Dec-14 | ' |
Net change in line of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face value of loan | 100,000 | 50,000 | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | 75,000 | ' | ' |
Repayments of Convertible Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | 25,000 | 25,000 | ' | ' |
Officer's salary | ' | ' | ' | ' | 120,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted to non-employees | ' | ' | ' | ' | 500,000 | ' | 3,157,895 | 3,157,895 | ' | ' | ' | ' | ' | ' |
Supplemental Salary Continuation | ' | ' | ' | ' | ' | 240,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Option expiration period | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted, exercise price | ' | ' | ' | ' | $0.19 | ' | ' | $0.19 | ' | ' | ' | ' | ' | ' |
Conversion of debt | ' | ' | ' | ' | ' | ' | $600,000 | ' | $150,000 | ' | ' | ' | ' | ' |