Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Jan. 31, 2015 | Mar. 10, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Jan-15 | |
Entity Registrant Name | ASPEN GROUP, INC. | |
Entity Central Index Key | 1487198 | |
Current Fiscal Year End Date | -26 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2015 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 113,098,156 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jan. 31, 2015 | Apr. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $1,158,339 | $247,380 |
Restricted cash | 888,225 | 868,298 |
Accounts receivable, net of allowance of $241,027 and $221,537, respectively | 888,499 | 649,890 |
Prepaid expenses | 66,019 | 45,884 |
Net assets from discontinued operations (Note 1) | 5,250 | |
Total current assets | 3,001,082 | 1,816,702 |
Property and equipment: | ||
Call center equipment | 132,798 | 122,653 |
Computer and office equipment | 73,286 | 66,118 |
Furniture and fixtures | 42,698 | 36,446 |
Library (online) | 100,000 | 100,000 |
Software | 2,147,783 | 1,894,215 |
Total | 2,496,565 | 2,219,432 |
Less accumulated depreciation and amortization | -1,268,502 | -938,703 |
Total property and equipment, net | 1,228,063 | 1,280,729 |
Courseware, net | 158,280 | 108,882 |
Accounts receivable, secured - related party, net of allowance of $625,962, and $625,962, respectively | 146,831 | 146,831 |
Debt issuance costs, net | 205,515 | |
Other assets | 26,678 | 25,181 |
Total assets | 4,560,934 | 3,583,840 |
Current liabilities: | ||
Accounts payable | 458,997 | 454,783 |
Accrued expenses | 223,072 | 144,466 |
Deferred revenue | 716,642 | 653,518 |
Refunds Due Students | 373,161 | 288,121 |
Deferred rent, current portion | 11,750 | 13,699 |
Convertible notes payable, current portion | 50,000 | 175,000 |
Debenture payable, net of discounts of $0 and $452,771 | 1,787,229 | |
Total current liabilities | 1,833,622 | 3,516,816 |
Line of credit | 243,989 | 244,175 |
Loan payable officer - related party | 1,000,000 | 1,000,000 |
Convertible notes payable - related party | 600,000 | 600,000 |
Deferred rent | 7,751 | |
Total liabilities | 3,677,611 | 5,368,742 |
Commitments and contingencies - See Note 8 | ||
Stockholders' equity (deficiency): | ||
Common stock, $0.001 par value; 250,000,000 shares authorized, 113,298,156 issued and 113,098,156 outstanding at January 31, 2015, 73,414,478 issued and 73,214,478 outstanding at April 30, 2014 | 113,298 | 73,414 |
Additional paid-in capital | 22,170,190 | 16,302,118 |
Treasury stock (200,000 shares) | -70,000 | -70,000 |
Accumulated deficit | -21,330,165 | -18,090,434 |
Total stockholders' equity (deficiency) | 883,323 | -1,784,902 |
Total liabilities and stockholders' equity (deficiency) | $4,560,934 | $3,583,840 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jan. 31, 2015 | Apr. 30, 2014 |
Assets | ||
Allowance for doubtful accounts, current accounts receivables | $241,027 | $221,537 |
Allowance for doubtful accounts, noncurrent accounts receivables | 625,962 | 625,962 |
Liabilities | ||
Debenture payable current, discount | $0 | $452,771 |
Stockholders' Equity: | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 113,298,156 | 73,414,478 |
Common stock, shares outstanding | 113,098,156 | 73,214,478 |
Treasury stock, shares | 200,000 | 200,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||||
Revenues | $1,286,138 | $1,002,167 | $3,670,245 | $2,817,497 |
Operating expenses | ||||
Cost of revenues (exclusive of depreciation and amortization shown separately below) | 662,368 | 500,311 | 1,524,793 | 1,390,444 |
General and administrative | 1,701,871 | 1,752,717 | 4,160,978 | 4,866,498 |
Receivable collateral valuation reserve | 123,647 | 123,647 | ||
Depreciation and amortization | 133,966 | 121,904 | 389,706 | 350,990 |
Total operating expenses | 2,498,205 | 2,498,579 | 6,075,477 | 6,731,579 |
Operating loss from continuing operations | -1,212,067 | -1,496,412 | -2,405,232 | -3,914,082 |
Other income (expense): | ||||
Other income | 2,277 | 136 | 7,157 | 750 |
Loss on Debt Extinguishment | -452,503 | |||
Interest expense | -34,532 | -260,062 | -389,153 | -398,916 |
Total other expense, net | -32,255 | -259,926 | -834,499 | -398,166 |
Loss from continuing operations before income taxes | -1,244,322 | -1,756,338 | -3,239,731 | -4,312,248 |
Income tax expense (benefit) | ||||
Loss from continuing operations | -1,244,322 | -1,756,338 | -3,239,731 | -4,312,248 |
Discontinued operations (Note 1) | ||||
Income from discontinued operations, net of income taxes | 29,751 | 84,663 | ||
Net loss | ($1,244,322) | ($1,726,587) | ($3,239,731) | ($4,227,585) |
Loss per share from continuing operations - basic and diluted | ($0.01) | ($0.03) | ($0.03) | ($0.07) |
Income per share from discontinued operations - basic and diluted | $0 | $0 | ||
Net loss per share allocable to common stockholders - basic and diluted | ($0.01) | ($0.03) | ($0.03) | ($0.07) |
Weighted average number of common shares outstanding: | ||||
basic and diluted | 112,753,454 | 59,780,884 | 96,548,329 | 59,098,885 |
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] |
Balance at Apr. 30, 2014 | ($1,784,902) | $73,414 | $16,302,118 | ($70,000) | ($18,090,434) |
Balance, shares at Apr. 30, 2014 | 73,414,478 | ||||
Issuance of common shares for cash | 5,547,826 | 35,615 | 5,512,211 | ||
Issuance of common shares for cash, shares | 35,614,154 | ||||
Offering cost for professional services from private placement | -107,225 | -107,225 | |||
Stock-based compensation | 334,723 | 334,723 | |||
Shares issued for price protection | 3,532 | -3,532 | |||
Shares issued for price protection, shares | 3,532,682 | ||||
Conversion of convertible debt into shares | 100,000 | 526 | 99,474 | ||
Conversion of convertible debt into shares, shares | 526,316 | ||||
Shares issued for services rendered | 32,632 | 211 | 32,421 | ||
Shares issued for services rendered, shares | 210,526 | ||||
Net loss, nine months ended January 31, 2015 | -3,239,731 | -3,239,731 | |||
Balance at Jan. 31, 2015 | $883,323 | $113,298 | $22,170,190 | ($70,000) | ($21,330,165) |
Balance, shares at Jan. 31, 2015 | 113,298,156 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
Cash flows from operating activities: | ||
Net loss | ($3,239,731) | ($4,227,585) |
Less income from discontinued operations | 84,663 | |
Loss from continuing operations | -3,239,731 | -4,312,248 |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Bad debt expense | 117,739 | 148,837 |
Receivable collateral valuation reserve | 123,647 | |
Amortization of debt issuance costs | 75,458 | 77,058 |
Amortization of debt discount | 166,241 | 174,351 |
Extinguishment of debentures | 416,587 | |
Depreciation and amortization | 389,706 | 350,990 |
Stock-based compensation | 334,723 | 395,940 |
Warrant modification expense | 156,952 | |
Amortization of prepaid shares for services | 285,084 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | -356,348 | -443,863 |
Prepaid expenses | -20,135 | 58,922 |
Other assets | -1,497 | |
Accounts payable | 4,214 | 63,195 |
Accrued expenses | 111,238 | 4,578 |
Deferred rent | -9,700 | -7,239 |
Refunds due students | 85,040 | -18,572 |
Deferred revenue | 63,124 | -98,430 |
Net cash used in operating activities | -1,863,341 | -3,040,798 |
Cash flows from investing activities: | ||
Purchases of property and equipment | -277,133 | -298,140 |
Purchases of courseware | -109,305 | -4,499 |
Increase in restricted cash | -19,927 | -406 |
Net cash used in investing activities | -406,365 | -303,045 |
Cash flows from financing activities: | ||
Proceeds from (repayments on) line of credit, net | -186 | -5,825 |
Proceeds from issuance of common shares and warrants, net | 5,547,826 | |
Proceeds from (retirement of) convertible notes and warrants, net of costs | -2,240,000 | 1,639,298 |
Retirement of convertible notes payable | -25,000 | |
Proceeds from loan from related party | 1,000,000 | |
Proceeds from warrant exercise | 804,049 | |
Offering costs associated with private placement | -107,225 | -48,240 |
Net cash provided by financing activities | 3,175,415 | 3,389,282 |
Cash flows from discontinued operations: | ||
Cash flows from operating activities | 5,250 | 80,206 |
Net cash provided by discontinued operations | 5,250 | 80,206 |
Net increase in cash and cash equivalents | 910,959 | 125,645 |
Cash and cash equivalents at beginning of period | 247,380 | 724,982 |
Cash and cash equivalents at end of period | 1,158,339 | 850,627 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 212,955 | 95,653 |
Cash paid for income taxes | ||
Supplemental disclosure of non-cash investing and financing activities | ||
Common stock issued for services | 32,632 | 216,000 |
Common stock issued from conversion of notes | 100,000 | |
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, 2015 | |||||||||||||||||||||||||
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”) is a holding company. Its subsidiary Aspen University Inc. was founded in Colorado in 1987 as the International School of Information Management. On September 30, 2004, it changed its name to Aspen University Inc. ("Aspen University"). 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. | |||||||||||||||||||||||||
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 no longer offered 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 “Discontinued Operations”). | |||||||||||||||||||||||||
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 38% of our full-time degree-seeking students (as of January 31, 2015) were enrolled in Aspen's School of Nursing. | |||||||||||||||||||||||||
On November 10, 2014, Aspen University announced the Commission on Collegiate Nursing Education (“CCNE”) has granted accreditation to its Bachelor of Science in Nursing program (RN to BSN) until December 31, 2019. This newly accredited undergraduate degree program is expected to grow rapidly given Aspen's debtless education approach, which allows nurses to pay the $9,750 tuition for the 10-course RN to BSN completion program at $250 per month for 39 months. In fact, Aspen projects the BSN program to be the largest growth driver in the next 12 months, which we estimate will result in over 50% or the majority of the degree-seeking student body to be enrolled in the School of Nursing by early-2016. Initial marketing and enrollment results support this forecast. | |||||||||||||||||||||||||
Since 1993, we have been nationally accredited by the Distance Education and Accrediting Council (“DEAC”), a national accrediting agency recognized by the U.S. Department of Education (the “DOE”). On February 25, 2015, the DEAC informed Aspen University that it had renewed its accreditation for five years to January, 2019. | |||||||||||||||||||||||||
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 ended January 31, 2015 and 2014, the nine months ended January 31, 2015 and 2014, our cash flows for the nine months ended January 31, 2015 and 2014, and our financial position as of January 31, 2015 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-K for the period ended April 30, 2014 as filed with the SEC on July 29, 2014. The April 30, 2014 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, | ||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | 549,125 | |||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||
Instructional costs and services | — | — | — | 494,213 | |||||||||||||||||||||
General and administrative | — | (29,751 | ) | — | (29,751 | ) | |||||||||||||||||||
Total costs and expenses | — | (29,751 | ) | — | 464,462 | ||||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | $ | — | $ | 29,751 | $ | — | $ | 84,663 | |||||||||||||||||
The major classes of assets and liabilities of discontinued operations on the balance sheet are as follows: | |||||||||||||||||||||||||
January 31, | April 30, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | |||||||||||||||||||||
Accounts receivable, net of allowance of $486,781, and $481,531, respectively | — | 5,250 | |||||||||||||||||||||||
Other current assets | — | — | |||||||||||||||||||||||
Net assets from discontinued operations | $ | — | $ | 5,250 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | |||||||||||||||||||||
Accrued expenses | — | — | |||||||||||||||||||||||
Deferred revenue | — | — | |||||||||||||||||||||||
Net liabilities from discontinued operations | $ | — | $ | — | |||||||||||||||||||||
C. Liquidity | |||||||||||||||||||||||||
At January 31, 2015, the Company had a cash balance of approximately $2.0 million which includes $888,225 of restricted cash. In September 2014, the Company completed the second closing of its equity financing of $3,766,325. With the additional cash raised in the financing, the growth in the Company revenues and improving operating margins, the Company believes that it has sufficient cash to allow the Company to implement its long-term business plan. | |||||||||||||||||||||||||
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||
For the purposes of the unaudited condensed consolidated statements of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents at January 31, 2015 and April 30, 2014 respectively. The Company maintains its cash in bank and financial institution deposits that at times may exceed federally insured limits of $250,000 per financial institution. The Company has not experienced any losses in such accounts from inception through January 31, 2015. As of January 31, 2015, there was $176,602, $760,169 and $638,028 located in three institutions greater than the federally insured limits. | |||||||||||||||||||||||||
Restricted Cash | |||||||||||||||||||||||||
Restricted cash represents amounts pledged as security for letters of credit for transactions involving Title IV programs, as well as funds held in escrow. The company considers $888,225 and $868,298 as restricted cash (shown as a current asset as of January 31, 2015 and April 30, 2014 respectively). | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
Refunds Due Students | |||||||||||||||||||||||||
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 Refunds Due Students. 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 allows a student to make three monthly tuition payments during each 10-week class. 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. | |||||||||||||||||||||||||
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 14,576,412 and 9,583,086 common shares, warrants to purchase 44,007,963 and 19,196,635 common shares, and $650,000 and $2,240,000 of convertible debt (convertible into 1,207,143 and 8,093,985 common shares, respectively) were outstanding during the nine months ended January 31, 2015 and 2014, 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 | |||||||||||||||||||||||||
For the three and the nine months ending January 31, 2014, the Company reclassified $55,314 and $168,155 respectively, from Cost of Revenues to General and Administrative, both within Operating Expenses, to conform to the current period presentation. | |||||||||||||||||||||||||
For the 9 Months ended January 31, 2014 | |||||||||||||||||||||||||
Reclassifications | |||||||||||||||||||||||||
Dues, | Internet | ||||||||||||||||||||||||
As Previously | Fees, & | Related | Marketing | Library | As | ||||||||||||||||||||
Reported | Licenses | Expense | Fees | Services | Reclassified | ||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||||
Instructional | $ | 734,597 | (55,127 | ) | (113,028 | ) | — | — | $ | 566,442 | |||||||||||||||
Marketing | 824,002 | — | — | — | — | 824,002 | |||||||||||||||||||
Cost of Revenues | $ | 1,558,599 | (55,127 | ) | (113,028 | ) | — | — | $ | 1,390,444 | |||||||||||||||
Receivable collateral valuation reserve | 123,647 | — | — | — | — | 123,647 | |||||||||||||||||||
General and administrative | 4,698,343 | 55,127 | 113,028 | — | — | 4,866,498 | |||||||||||||||||||
Depreciation and amortization | 350,990 | — | — | — | — | 350,990 | |||||||||||||||||||
Total Operating Expenses | $ | 6,731,579 | — | — | — | — | $ | 6,731,579 | |||||||||||||||||
For the 3 Months ended January 31, 2014 | |||||||||||||||||||||||||
Reclassifications | |||||||||||||||||||||||||
Dues, | Internet | ||||||||||||||||||||||||
As Previously | Fees, & | Related | Marketing | Library | As | ||||||||||||||||||||
Reported | Licenses | Expense | Fees | Services | Reclassified | ||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||||
Instructional | $ | 285,221 | (14,878 | ) | (40,436 | ) | — | — | $ | 229,907 | |||||||||||||||
Marketing | 270,404 | — | — | — | — | 270,404 | |||||||||||||||||||
Cost of Revenues | $ | 555,625 | (14,878 | ) | (40,436 | ) | — | — | $ | 500,311 | |||||||||||||||
Receivable collateral valuation reserve | 123,647 | — | — | — | — | 123,647 | |||||||||||||||||||
General and administrative | 1,697,403 | 14,878 | 40,436 | — | — | 1,752,717 | |||||||||||||||||||
Depreciation and amortization | 121,904 | — | — | — | — | 121,904 | |||||||||||||||||||
Total Operating Expenses | $ | 2,498,579 | — | — | — | — | $ | 2,498,579 | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||||||||||
Financial Accounting Standards Board, Accounting Standard Updates which are not effective until after January 31, 2015 are not expected to have a significant effect on the Company's unaudited consolidated financial position or results of operations. | |||||||||||||||||||||||||
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern (Topic 205-40)”, which requires management to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern for each annual and interim reporting period. If substantial doubt exists, additional disclosure is required. This new standard will be effective for the Company for annual and interim periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the implementation of this standard to have a material effect on it disclosures. | |||||||||||||||||||||||||
Secured_Note_and_Accounts_Rece
Secured Note and Accounts Receivable - Related Parties | 9 Months Ended |
Jan. 31, 2015 | |
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 Higher Education Management Group, Inc. ("HEMG",) which was then a related party and principal stockholder of the Company. HEMG's 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 were 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, 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; and (c) the Company waived any default of the accounts receivable, secured - related party and extended the due date to September 30, 2014. Based on proceeds received on September 28, 2012 under a private placement at $0.35 per unit (consisting of one share of common stock and one-half of a warrant exercisable at $0.50 per 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. Based on the reduction in value of the collateral to $0.19, the Company recognized an expense of $123,647 during the year ended April 30, 2014 as an additional allowance. As of both April 30, 2014, and January 31, 2015, the balance of the account receivable, net of allowance, was $146,831. | |
HEMG has failed to pay to Aspen University any portion of the $772,793 amount due as of September 30, 2014, despite due demand for same. Consequently, on November 18, 2014 Aspen University filed a complaint vs. HEMG in the United States District Court for the District of New Jersey, to collect the full amount due to the Company. HEMG defaulted. In addition, Aspen University gave notice to HEMG that it intended to privately sell the 654,850 shares after March 10, 2015. (See Note 11) | |
Property_and_Equipment
Property and Equipment | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Note 4. Property and Equipment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment consisted of the following at January 31, 2015 and April 30, 2014: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
January 31, | April 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Call center hardware | $ | 132,798 | $ | 122,653 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computer and office equipment | 73,286 | 66,118 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Furniture and fixtures | 42,698 | 36,446 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Library (online) | 100,000 | 100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Software | 2,147,783 | 1,894,215 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,496,565 | 2,219,432 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated depreciation and amortization | -1,268,502 | -938,703 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | $ | 1,228,063 | $ | 1,280,729 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Software consisted of the following at January 31, 2015 and April 30, 2014: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
January 31, | April 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Software | $ | 2,147,783 | $ | 1,894,215 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated amortization | -1,021,466 | -720,823 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Software, net | $ | 1,126,317 | $ | 1,173,392 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization expense for all Property and Equipment as well as the portion for just software is presented for the three and nine months ended January 31, 2015 and 2014: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the | For the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
January 31, | January 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and Amortization Expense | 114,559 | 96,879 | 329,799 | 267,762 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Software Amortization Expense | 104,441 | 87,610 | 300,642 | 242,259 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following is a schedule of estimated future amortization expense of software at January 31, 2015: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ending April 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $ | 107,389 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 428,711 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 305,979 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 172,944 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 111,294 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,126,317 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Courseware
Courseware | 9 Months Ended | ||||||||||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||||||||||
Courseware [Abstract] | |||||||||||||||||||||||||||||||||
Courseware | Note 5. Courseware | ||||||||||||||||||||||||||||||||
Courseware costs capitalized were $109,305 for the nine months ended January 31, 2015. | |||||||||||||||||||||||||||||||||
Courseware consisted of the following at January 31, 2015 and April 30, 2014: | |||||||||||||||||||||||||||||||||
January 31, | April 30, | ||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Courseware | $ | 2,213,343 | $ | 2,104,038 | |||||||||||||||||||||||||||||
Accumulated amortization | (2,055,063 | ) | (1,995,156 | ) | |||||||||||||||||||||||||||||
Courseware, net | $ | 158,280 | $ | 108,882 | |||||||||||||||||||||||||||||
Amortization expense of courseware for the three months and nine months ended January 31, 2015 and 2014: | |||||||||||||||||||||||||||||||||
For the | For the | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
January 31, | January 31, | ||||||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||||||
Amortization Expense | 19,407 | 25,025 | 59,907 | 83,227 | |||||||||||||||||||||||||||||
The following is a schedule of estimated future amortization expense of courseware at January 31, 2015: | |||||||||||||||||||||||||||||||||
Year Ending April 30, | |||||||||||||||||||||||||||||||||
2015 | $ | 18,464 | |||||||||||||||||||||||||||||||
2016 | 50,891 | ||||||||||||||||||||||||||||||||
2017 | 32,257 | ||||||||||||||||||||||||||||||||
2018 | 24,168 | ||||||||||||||||||||||||||||||||
2019 | 32,500 | ||||||||||||||||||||||||||||||||
Total | $ | 158,280 | |||||||||||||||||||||||||||||||
Loan_Payable_Officer_Related_P
Loan Payable Officer - Related Party | 9 Months Ended |
Jan. 31, 2015 | |
Loan Payable Officer - Related Party [Abstract] | |
Loan Payable Officer - Related Party | Note 6. Loan Payable Officer – Related Party |
On June 28, 2013, the Company received $1,000,000 as a loan from the Chief Executive Officer. This loan was 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. On July 16, 2014, the maturity of the debt to the CEO was extended to January 1, 2016. Subsequently, in March 2015, the debt was extended to July 31, 2016. | |
Convertible_Notes_Convertible_
Convertible Notes, Convertible Notes - Related Party and Debenture Payable | 9 Months Ended |
Jan. 31, 2015 | |
Convertible Notes, Convertible Notes - Related Party and Debenture Payable [Abstract] | |
Convertible Notes, Convertible Notes - Related Party and Debenture Payable | Note 7. Convertible Notes, Convertible Notes – Related Party 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 were 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. These loans (now convertible promissory notes) were originally due in February 2014, and were included in current liabilities as of October 31, 2014 and April 30, 2014. Two of the above mentioned notes were modified in February 2014, see below, and the third became due in February 2014. The amount due under this note has been reserved for payment upon the note being tendered to the Company by the note holder. | |
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, 2012. This was treated as a note extinguishment in accordance with ASC 470-50. No gain or loss on extinguishment was recorded and no beneficial conversion feature existed on the modification date. This note was converted to common shares on December 1, 2014. (See Note 9) | |
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 was made on August 1, 2014 and $50,000 will be made on December 1, 2014. The interest rate was raised to 3.25% from February 25, 2012. The conversion price was reduced to $0.19 per share. This was treated as a note extinguishment in accordance with ASC 470-50. No gain or loss on extinguishment was recorded and no beneficial conversion feature existed on the modification date. The remaining $50,000 balance of this note was converted to common shares on December 1, 2014. (See Note 9) | |
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 July 16, 2014, the maturity of the debt to the CEO has been extended to January 1, 2016 and on March 4, 2015, the debt was extended to July 31, 2016. There was no accounting effect for these modifications. | |
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, 2013. 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. On July 16, 2014, the maturity of the debt to the CEO has been extended to January 1, 2016 and on March 4, 2015, the debt was extended to July 31, 2016. There was no accounting effect for these modifications. | |
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 were 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 had 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 provided that the Debenture may have been 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 was recorded as a debt discount to be amortized over the debt term. The Debenture bore 8% per annum interest and was amortizable in installments over its 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. At July 31, 2014, the balance of the Debenture payable was $1,911,572, which was the loan of $2,240,000 less $328,428 of unamortized original issue discount. On September 4, 2014, Aspen used part of the equity offering proceeds to fully prepay principal and interest owed under its outstanding debenture held by Institutional Investor. Aspen paid them $2,310,000, after entering into an agreement whereby the Institutional Investor agreed to the prepayment and agreed to limit the future sale of shares of common stock upon exercise of its warrants or otherwise. Of the $2,310,000 payment, $70,000 was for interest. Upon repayment of the debenture, the $70,000 interest payment, along with the balance of the debt discount and the debt issuance costs totaling $452,503, was expensed in the Loss from debt extinguishment line on the Statement of Operations. | |
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 were being amortized over the debt term. The discount was expensed to interest expense upon repayment of the debenture. | |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Jan. 31, 2015 | |
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, 2015). 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, 2015 was $243,989. 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, 2015 was $6,011. | |
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 are performance-based in nature. As of January 31, 2015, no performance bonuses have been earned. | |
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, 2015, except as discussed below, there were no other pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of our operations and there are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest. | |
On February 11, 2013, 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. On December 10, 2013, the Company filed a series of counterclaims against HEMG and Mr. Spada in state court of New York. Discovery is currently being pursued by the parties. By decision and order dated August 4, 2014, the New York court denied HEMG and Spada's motion to dismiss the fraud counterclaim the Company asserted against them. The New York court dismissed the Company's related “money had and received”, “money lent” and “unjust enrichment” claims as being duplicative of the fraud claim. HEMG and Spada have filed a notice of appeal of the New York court's decision to the extent it denied the non-fraud claims as being duplicative. | |
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. On February 28, 2014, the Company filed a motion to dismiss the complaint. On November 3, 2014, the Chancery Court of the State of Delaware dismissed the shareholders' derivative lawsuit of Mr. Patrick Spada and Higher Education Management Group, Inc. against Aspen Group, Inc., certain members of the Company's Board of Directors and former Chief Financial Officer (collectively, the “Defendants”). The Court granted the Defendant's Motion to Dismiss in its entirety and therefore the Delaware case has been dismissed with prejudice and those claims are finally disposed of. | |
While the Company has been advised by its counsel that the New York lawsuit is baseless, the Company cannot provide any assurance as to the ultimate outcome of the case. Defending the lawsuit 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 in the New York litigation were to be successful, the damages the Company could pay could potentially be material. | |
Finally, HEMG has failed to pay to the Company any portion of the $772,793 amount overdue as of September 30, 2014 (as discussed in Note 3), despite due demand for same. Consequently, on November 18, 2014 the Company filed a complaint vs. HEMG in the United States District Court for the District of New Jersey, to collect the full amount due to the Company and intends to sell the 654,850 pledged shares to reduce, in part, this overdue sum. See Note 3. HEMG failed to answer the complaint and as a result the Court entered a default against HEMG. We are awaiting the entry of a money judgment against HEMG. | |
Regulatory Matters | |
The Company's subsidiary, 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 2014 represented approximately 33% 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 posted the $848,225 letter of credit for the DOE on April 14, 2014. On February 26, 2015, Aspen University was informed by the DOE that it again has the 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 $2,244,971, or to remain provisionally certified by increasing the existing 25% letter of credit to $1,122,485. Aspen informed the DOE on March 3, 2015 of its desire to remain provisionally certified and post the $1,122,485 letter of credit for the DOE by April 30, 2015. 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. | |
Subsequent to a program review by the Department of Education, 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”). | |
Stockholders_Equity_Deficiency
Stockholders' Equity (Deficiency) | 9 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Stockholders' Equity (Deficiency) [Abstract] | |||||||||||||||||
Stockholders' Equity (Deficiency) | Note 9. Stockholders' Equity (Deficiency) | ||||||||||||||||
Common Stock | |||||||||||||||||
On June 4, 2014, a member of the Board of Directors invested $50,000 in exchange for 263,158 shares of common stock and 263,158 warrants at $0.19 per share. On June 24, 2014, a member of the Board of Directors and the Company's CEO each invested $50,000 in exchange for 263,158 shares of common stock and 263,158 warrants at $0.19 per share. | |||||||||||||||||
On July 29, 2014, as part of a private placement offering, seven accredited investors, including the Company's CFO, paid a total of $1,631,500 in exchange for 10,525,809 shares of common stock and 5,262,907 five-year warrants exercisable at $0.19 per share. Aspen incurred $75,000 of expenses relating to this offering. As a result of this private placement, on July 31, 2014, Aspen issued 3,473,259 shares of common stock to prior investors who had price protection on their investments, issued 2,662,139 warrants to a prior investor who had price protection on their investment, and reduced the exercise and conversion price on 14,451,613 outstanding warrants and its outstanding Debenture to $0.155. | |||||||||||||||||
On September 4, 2014, Aspen raised $3,766,325 from the sale of 24,298,877 shares of common stock and 12,149,439 five-year warrants exercisable at $0.19 per share in a private placement offering to 15 accredited investors. In connection with the offering, Aspen agreed to register the shares of common stock and the shares of common stock underlying the warrants. The net proceeds to Aspen were approximately $3.7 million. As a result of the private placement, Aspen issued 59,423 shares of common stock to a prior investor who had price protection on his investment. | |||||||||||||||||
On December 1, 2014, $100,000 of convertible debt was converted into common stock at the conversion rate of $0.19 per share, equally for two investors. Each investor received 263,158 shares of common stock. | |||||||||||||||||
On January 14, 2015, 210,526 shares of stock were issued for services provided to Aspen. The shares were valued at the fair market value of the common stock or $0.155 and accordingly, the Company recorded an expense of $32,632. | |||||||||||||||||
On September 30, 2014, Aspen Group filed a Certificate of Amendment to its Certification of Incorporation increasing its authorized shares from 120,000,000 shares to 250,000,000 shares. | |||||||||||||||||
Warrants | |||||||||||||||||
A summary of the Company's warrant activity during the nine months ended January 31, 2015 is presented below: | |||||||||||||||||
Weighted | |||||||||||||||||
Weighted | Average | ||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||
Number of | Exercise | Contractual | Intrinsic | ||||||||||||||
Warrants | Shares | Price | Term | Value | |||||||||||||
Balance Outstanding, April 30, 2014 | 23,144,005 | $ | 0.31 | ||||||||||||||
Granted | 20,863,958 | 0.19 | |||||||||||||||
Exercised | — | ||||||||||||||||
Forfeited | — | ||||||||||||||||
Expired | — | ||||||||||||||||
Balance Outstanding, January 31, 2015 | 44,007,963 | $ | 0.25 | 4.1 | $ | 299,903 | |||||||||||
Exercisable, January 31, 2015 | 44,007,963 | $ | 0.25 | 4.1 | $ | 299,903 | |||||||||||
On June 4, 2014, a member of the Board of Directors invested $50,000 in exchange for 263,158 shares of common stock and 263,158 warrants at $0.19 per share. On June 24, 2014, a member of the Board of Directors and the Company's CEO each invested $50,000 in exchange for 263,158 shares of common stock and 263,158 warrants at $0.19 per share. | |||||||||||||||||
On July 29, 2014, as part of a private placement offering seven accredited investors, including the Company's CFO, paid a total of $1,631,500 from the sale of 10,525,809 shares of common stock and 5,262,907 five-year warrants exercisable at $0.19 per share. As a result of this private placement, on July 31, 2014, Aspen issued 3,473,259 shares of common stock to prior investors who had price protection on their investments, issued 2,662,139 warrants to a prior investor who had price protection on their investment and reduced the exercise and conversion price on 14,451,613 outstanding warrants and its outstanding Debenture to $0.155. | |||||||||||||||||
On September 4, 2014, as part of a private placement offering fifteen accredited investors paid a total of $3,766,325 from the sale of 24,298,877 shares of common stock and 12,149,439 five-year warrants exercisable at $0.19 per share. As a result of this private placement, on July 31, 2014, Aspen issued 59,423 shares of common stock to a prior investor who had price protection on his investment. | |||||||||||||||||
Warrants issued to an investor were modified on January 31, 2015 to reduce the exercise price to $0.19 per share. As a result of the modification, the modification expense was not material. | |||||||||||||||||
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 an inactive trading market, through January 31, 2015 the warrants are excluded from derivative treatment. | |||||||||||||||||
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 9,300,000 shares, 14,300,000 effective July 2014 and 16,300,000 effective September 2014, 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. As of January 31, 2015, there were 1,723,588 shares remaining under the Plan for future issuance. | |||||||||||||||||
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. | |||||||||||||||||
A summary of the Company's stock option activity for employees and directors during the nine months ended January 31, 2015 is presented below: | |||||||||||||||||
Weighted | |||||||||||||||||
Weighted | Average | ||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||
Number of | Exercise | Contractual | Intrinsic | ||||||||||||||
Options | Shares | Price | Term | Value | |||||||||||||
Balance Outstanding, April 30, 2014 | 10,476,412 | $ | 0.23 | 3.5 | — | ||||||||||||
Granted | 3,900,000 | $ | 0.21 | 3.4 | $ | 103,000 | |||||||||||
Exercised | — | ||||||||||||||||
Forfeited | (20,000 | ) | $ | 0.19 | 4.1 | $ | 1,200 | ||||||||||
Expired | — | ||||||||||||||||
Balance Outstanding, January 31, 2015 | 14,356,412 | $ | 0.21 | 3.4 | $ | 103,000 | |||||||||||
Exercisable, January 31, 2015 | 5,710,470 | $ | 0.26 | 2.9 | $ | 4,000 | |||||||||||
On September 4, 2014, 2,600,000 options were granted to the CEO and the Board of Directors. The fair value of these options on the date of grant is $130,000 and the exercise price is $0.155 per option. On September 16, 2014, 200,000 options were granted to two members of the Board of Directors. The fair value of these options on the date of grant is $12,000 and the exercise price is $0.20 per option. | |||||||||||||||||
On November 24, 2014, the CFO was granted 300,000 stock options. The fair value of these options is $21,000 and the exercise price was $0.234. On December 11, 2014, each of the 8 non-employee members of the Board of Directors was granted 100,000 stock options. The fair value of the options was $7,000 each and the exercise price was $0.2026. | |||||||||||||||||
As of January 31, 2015, there was $644,450 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. | |||||||||||||||||
The Company recorded compensation expense of $123,085 and $334,723 for the three and nine months ended January 31, 2015 in connection with employee stock options. $98,610 and $395,940 was recorded during the same period in 2014. | |||||||||||||||||
Stock Option Grants to Non-Employees | |||||||||||||||||
There were no stock options granted to non-employees during the nine months ended January 31, 2015. The Company recorded no compensation expense for the three months ended January 31, 2015 and $748 for the nine months ended January 31, 2015 in connection with non-employee stock options. $748 was recorded for the three months ended January 31, 2014 and $1,496, for the six months ended January 31, 2014. There was no unrecognized compensation cost at January 31, 2015. | |||||||||||||||||
A summary of the Company's stock option activity for non-employees during the nine months ended January 31, 2015 is presented below: | |||||||||||||||||
Weighted | Average | ||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||
Number of | Exercise | Contractual | Intrinsic | ||||||||||||||
Options | Shares | Price | Term | Value | |||||||||||||
Balance Outstanding, April 30, 2014 | 270,000 | $ | 0.28 | 2.8 | $ | — | |||||||||||
Granted | — | ||||||||||||||||
Exercised | — | ||||||||||||||||
Forfeited | (50,000 | ) | $ | 0.19 | 3.7 | $ | — | ||||||||||
Expired | — | ||||||||||||||||
Balance Outstanding, January 31, 2015 | 220,000 | $ | 0.3 | 2.3 | $ | 4,500 | |||||||||||
Exercisable, January 31, 2015 | 73,333 | $ | 0.3 | 2.3 | $ | 1,500 | |||||||||||
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Jan. 31, 2015 | |
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, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11. Subsequent Events |
On February 25, 2015, the DEAC informed Aspen University that it had renewed its accreditation for five years to January, 2019. | |
On February 26, 2015, Aspen University was informed by the DOE that it has the 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 $2,244,971, or to remain provisionally certified by increasing the existing 25% letter of credit to $1,122,485. Aspen informed the DOE on March 3, 2015 of its desire to remain provisionally certified and post the $1,122,485 letter of credit for the DOE by April 30, 2015. | |
On or about February 20, 2015 , Aspen Group, Inc. filed a motion in the United States District Court, District of New Jersey, seeking the entry of a money judgment on default against Defendant, HEMG, in the amount of $772,793, plus interest, costs, disbursements, and any other relief the Court deems just and proper. (See Note 3) | |
On March 4, 2015, Mr. Michael Mathews, for no consideration, extended the due date of his loans from January 1, 2016 to July 31, 2016. | |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||||||||||||||||||
For the purposes of the unaudited condensed consolidated statements of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents at January 31, 2015 and April 30, 2014 respectively. The Company maintains its cash in bank and financial institution deposits that at times may exceed federally insured limits of $250,000 per financial institution. The Company has not experienced any losses in such accounts from inception through January 31, 2015. As of January 31, 2015, there was $176,602, $760,169 and $638,028 located in three institutions greater than the federally insured limits. | |||||||||||||||||||||||||
Restricted Cash | Restricted Cash | ||||||||||||||||||||||||
Restricted cash represents amounts pledged as security for letters of credit for transactions involving Title IV programs, as well as funds held in escrow. The company considers $888,225 and $868,298 as restricted cash (shown as a current asset as of January 31, 2015 and April 30, 2014 respectively). | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
Refunds Due Students | Refunds Due Students | ||||||||||||||||||||||||
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 Refunds Due Students. 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 allows a student to make three monthly tuition payments during each 10-week class. 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. | |||||||||||||||||||||||||
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 14,576,412 and 9,583,086 common shares, warrants to purchase 44,007,963 and 19,196,635 common shares, and $650,000 and $2,240,000 of convertible debt (convertible into 1,207,143 and 8,093,985 common shares, respectively) were outstanding during the nine months ended January 31, 2015 and 2014, 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 | ||||||||||||||||||||||||
For the three and the nine months ending January 31, 2014, the Company reclassified $55,314 and $168,155 respectively, from Cost of Revenues to General and Administrative, both within Operating Expenses, to conform to the current period presentation. | |||||||||||||||||||||||||
For the 9 Months ended January 31, 2014 | |||||||||||||||||||||||||
Reclassifications | |||||||||||||||||||||||||
Dues, | Internet | ||||||||||||||||||||||||
As Previously | Fees, & | Related | Marketing | Library | As | ||||||||||||||||||||
Reported | Licenses | Expense | Fees | Services | Reclassified | ||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||||
Instructional | $ | 734,597 | (55,127 | ) | (113,028 | ) | — | — | $ | 566,442 | |||||||||||||||
Marketing | 824,002 | — | — | — | — | 824,002 | |||||||||||||||||||
Cost of Revenues | $ | 1,558,599 | (55,127 | ) | (113,028 | ) | — | — | $ | 1,390,444 | |||||||||||||||
Receivable collateral valuation reserve | 123,647 | — | — | — | — | 123,647 | |||||||||||||||||||
General and administrative | 4,698,343 | 55,127 | 113,028 | — | — | 4,866,498 | |||||||||||||||||||
Depreciation and amortization | 350,990 | — | — | — | — | 350,990 | |||||||||||||||||||
Total Operating Expenses | $ | 6,731,579 | — | — | — | — | $ | 6,731,579 | |||||||||||||||||
For the 3 Months ended January 31, 2014 | |||||||||||||||||||||||||
Reclassifications | |||||||||||||||||||||||||
Dues, | Internet | ||||||||||||||||||||||||
As Previously | Fees, & | Related | Marketing | Library | As | ||||||||||||||||||||
Reported | Licenses | Expense | Fees | Services | Reclassified | ||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||||
Instructional | $ | 285,221 | (14,878 | ) | (40,436 | ) | — | — | $ | 229,907 | |||||||||||||||
Marketing | 270,404 | — | — | — | — | 270,404 | |||||||||||||||||||
Cost of Revenues | $ | 555,625 | (14,878 | ) | (40,436 | ) | — | — | $ | 500,311 | |||||||||||||||
Receivable collateral valuation reserve | 123,647 | — | — | — | — | 123,647 | |||||||||||||||||||
General and administrative | 1,697,403 | 14,878 | 40,436 | — | — | 1,752,717 | |||||||||||||||||||
Depreciation and amortization | 121,904 | — | — | — | — | 121,904 | |||||||||||||||||||
Total Operating Expenses | $ | 2,498,579 | — | — | — | — | $ | 2,498,579 | |||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||||||||||||||||||
Financial Accounting Standards Board, Accounting Standard Updates which are not effective until after January 31, 2015 are not expected to have a significant effect on the Company's unaudited consolidated financial position or results of operations. | |||||||||||||||||||||||||
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern (Topic 205-40)”, which requires management to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern for each annual and interim reporting period. If substantial doubt exists, additional disclosure is required. This new standard will be effective for the Company for annual and interim periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the implementation of this standard to have a material effect on it disclosures. | |||||||||||||||||||||||||
Nature_of_Operations_and_Liqui1
Nature of Operations and Liquidity (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||
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, | ||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | 549,125 | |||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||
Instructional costs and services | — | — | — | 494,213 | |||||||||||||||||||||
General and administrative | — | (29,751 | ) | — | (29,751 | ) | |||||||||||||||||||
Total costs and expenses | — | (29,751 | ) | — | 464,462 | ||||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | $ | — | $ | 29,751 | $ | — | $ | 84,663 | |||||||||||||||||
The major classes of assets and liabilities of discontinued operations on the balance sheet are as follows: | |||||||||||||||||||||||||
January 31, | April 30, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | |||||||||||||||||||||
Accounts receivable, net of allowance of $486,781, and $481,531, respectively | — | 5,250 | |||||||||||||||||||||||
Other current assets | — | — | |||||||||||||||||||||||
Net assets from discontinued operations | $ | — | $ | 5,250 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | |||||||||||||||||||||
Accrued expenses | — | — | |||||||||||||||||||||||
Deferred revenue | — | — | |||||||||||||||||||||||
Net liabilities from discontinued operations | $ | — | $ | — | |||||||||||||||||||||
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||
Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||
Schedule of Reclassifications | For the three and the nine months ending January 31, 2014, the Company reclassified $55,314 and $168,155 respectively, from Cost of Revenues to General and Administrative, both within Operating Expenses, to conform to the current period presentation. | ||||||||||||||||||||||||
For the 9 Months ended January 31, 2014 | |||||||||||||||||||||||||
Reclassifications | |||||||||||||||||||||||||
Dues, | Internet | ||||||||||||||||||||||||
As Previously | Fees, & | Related | Marketing | Library | As | ||||||||||||||||||||
Reported | Licenses | Expense | Fees | Services | Reclassified | ||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||||
Instructional | $ | 734,597 | (55,127 | ) | (113,028 | ) | — | — | $ | 566,442 | |||||||||||||||
Marketing | 824,002 | — | — | — | — | 824,002 | |||||||||||||||||||
Cost of Revenues | $ | 1,558,599 | (55,127 | ) | (113,028 | ) | — | — | $ | 1,390,444 | |||||||||||||||
Receivable collateral valuation reserve | 123,647 | — | — | — | — | 123,647 | |||||||||||||||||||
General and administrative | 4,698,343 | 55,127 | 113,028 | — | — | 4,866,498 | |||||||||||||||||||
Depreciation and amortization | 350,990 | — | — | — | — | 350,990 | |||||||||||||||||||
Total Operating Expenses | $ | 6,731,579 | — | — | — | — | $ | 6,731,579 | |||||||||||||||||
For the 3 Months ended January 31, 2014 | |||||||||||||||||||||||||
Reclassifications | |||||||||||||||||||||||||
Dues, | Internet | ||||||||||||||||||||||||
As Previously | Fees, & | Related | Marketing | Library | As | ||||||||||||||||||||
Reported | Licenses | Expense | Fees | Services | Reclassified | ||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||||
Instructional | $ | 285,221 | (14,878 | ) | (40,436 | ) | — | — | $ | 229,907 | |||||||||||||||
Marketing | 270,404 | — | — | — | — | 270,404 | |||||||||||||||||||
Cost of Revenues | $ | 555,625 | (14,878 | ) | (40,436 | ) | — | — | $ | 500,311 | |||||||||||||||
Receivable collateral valuation reserve | 123,647 | — | — | — | — | 123,647 | |||||||||||||||||||
General and administrative | 1,697,403 | 14,878 | 40,436 | — | — | 1,752,717 | |||||||||||||||||||
Depreciation and amortization | 121,904 | — | — | — | — | 121,904 | |||||||||||||||||||
Total Operating Expenses | $ | 2,498,579 | — | — | — | — | $ | 2,498,579 | |||||||||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment | Property and equipment consisted of the following at January 31, 2015 and April 30, 2014: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
January 31, | April 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Call center hardware | $ | 132,798 | $ | 122,653 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computer and office equipment | 73,286 | 66,118 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Furniture and fixtures | 42,698 | 36,446 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Library (online) | 100,000 | 100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Software | 2,147,783 | 1,894,215 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2,496,565 | 2,219,432 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated depreciation and amortization | -1,268,502 | -938,703 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | $ | 1,228,063 | $ | 1,280,729 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Software [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Asset | Software consisted of the following at January 31, 2015 and April 30, 2014: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
January 31, | April 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Software | $ | 2,147,783 | $ | 1,894,215 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated amortization | -1,021,466 | -720,823 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Software, net | $ | 1,126,317 | $ | 1,173,392 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Depreciation and Amortization Expense | Amortization expense for all Property and Equipment as well as the portion for just software is presented for the three and nine months ended January 31, 2015 and 2014: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the | For the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
January 31, | January 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and Amortization Expense | 114,559 | 96,879 | 329,799 | 267,762 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Software Amortization Expense | 104,441 | 87,610 | 300,642 | 242,259 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Future Amortization Expense | The following is a schedule of estimated future amortization expense of software at January 31, 2015: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ending April 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2015 | $ | 107,389 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2016 | 428,711 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 305,979 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 172,944 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 111,294 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,126,317 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Courseware_Tables
Courseware (Tables) (Courseware [Member]) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||||||||||
Courseware [Member] | |||||||||||||||||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||||||||||||||||
Schedule of Intangible Asset | Courseware consisted of the following at January 31, 2015 and April 30, 2014: | ||||||||||||||||||||||||||||||||
January 31, | April 30, | ||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Courseware | $ | 2,213,343 | $ | 2,104,038 | |||||||||||||||||||||||||||||
Accumulated amortization | (2,055,063 | ) | (1,995,156 | ) | |||||||||||||||||||||||||||||
Courseware, net | $ | 158,280 | $ | 108,882 | |||||||||||||||||||||||||||||
Schedule of amortization expense of intangible assets | Amortization expense of courseware for the three months and nine months ended January 31, 2015 and 2014: | ||||||||||||||||||||||||||||||||
For the | For the | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
January 31, | January 31, | ||||||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||||||
Amortization Expense | 19,407 | 25,025 | 59,907 | 83,227 | |||||||||||||||||||||||||||||
Schedule of Estimated Future Amortization Expense | The following is a schedule of estimated future amortization expense of courseware at January 31, 2015: | ||||||||||||||||||||||||||||||||
Year Ending April 30, | |||||||||||||||||||||||||||||||||
2015 | $ | 18,464 | |||||||||||||||||||||||||||||||
2016 | 50,891 | ||||||||||||||||||||||||||||||||
2017 | 32,257 | ||||||||||||||||||||||||||||||||
2018 | 24,168 | ||||||||||||||||||||||||||||||||
2019 | 32,500 | ||||||||||||||||||||||||||||||||
Total | $ | 158,280 | |||||||||||||||||||||||||||||||
Stockholders_Equity_Deficiency1
Stockholders' Equity (Deficiency) (Tables) | 9 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Stockholders' Equity (Deficiency) [Abstract] | |||||||||||||||||
Schedule of Warrants Activity | A summary of the Company's warrant activity during the nine months ended January 31, 2015 is presented below: | ||||||||||||||||
Weighted | |||||||||||||||||
Weighted | Average | ||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||
Number of | Exercise | Contractual | Intrinsic | ||||||||||||||
Warrants | Shares | Price | Term | Value | |||||||||||||
Balance Outstanding, April 30, 2014 | 23,144,005 | $ | 0.31 | ||||||||||||||
Granted | 20,863,958 | 0.19 | |||||||||||||||
Exercised | — | ||||||||||||||||
Forfeited | — | ||||||||||||||||
Expired | — | ||||||||||||||||
Balance Outstanding, January 31, 2015 | 44,007,963 | $ | 0.25 | 4.1 | $ | 299,903 | |||||||||||
Exercisable, January 31, 2015 | 44,007,963 | $ | 0.25 | 4.1 | $ | 299,903 | |||||||||||
Stock Incentive Plan and Stock Option Grants to Employees and Directors [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
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, 2015 is presented below: | ||||||||||||||||
Weighted | |||||||||||||||||
Weighted | Average | ||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||
Number of | Exercise | Contractual | Intrinsic | ||||||||||||||
Options | Shares | Price | Term | Value | |||||||||||||
Balance Outstanding, April 30, 2014 | 10,476,412 | $ | 0.23 | 3.5 | — | ||||||||||||
Granted | 3,900,000 | $ | 0.21 | 3.4 | $ | 103,000 | |||||||||||
Exercised | — | ||||||||||||||||
Forfeited | (20,000 | ) | $ | 0.19 | 4.1 | $ | 1,200 | ||||||||||
Expired | — | ||||||||||||||||
Balance Outstanding, January 31, 2015 | 14,356,412 | $ | 0.21 | 3.4 | $ | 103,000 | |||||||||||
Exercisable, January 31, 2015 | 5,710,470 | $ | 0.26 | 2.9 | $ | 4,000 | |||||||||||
Stock Option Grants to Non-Employees [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||
Schedule of Stock Option Activity | A summary of the Company's stock option activity for non-employees during the nine months ended January 31, 2015 is presented below: | ||||||||||||||||
Weighted | Average | ||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||
Number of | Exercise | Contractual | Intrinsic | ||||||||||||||
Options | Shares | Price | Term | Value | |||||||||||||
Balance Outstanding, April 30, 2014 | 270,000 | $ | 0.28 | 2.8 | $ | — | |||||||||||
Granted | — | ||||||||||||||||
Exercised | — | ||||||||||||||||
Forfeited | (50,000 | ) | $ | 0.19 | 3.7 | $ | — | ||||||||||
Expired | — | ||||||||||||||||
Balance Outstanding, January 31, 2015 | 220,000 | $ | 0.3 | 2.3 | $ | 4,500 | |||||||||||
Exercisable, January 31, 2015 | 73,333 | $ | 0.3 | 2.3 | $ | 1,500 | |||||||||||
Nature_of_Operations_and_Liqui2
Nature of Operations and Liquidity (Narrative) (Details) (USD $) | 0 Months Ended | 1 Months Ended | ||
Nov. 10, 2014 | Sep. 30, 2014 | Jan. 31, 2015 | Apr. 30, 2014 | |
Nature of Operations and Liquidity [Abstract] | ||||
Amount of tuition fee nurses will have to pay for the 10-course RN to BSN completion program | $9,750 | |||
Amount of tuition fee nurses will have to pay per month for specified period for the 10-course RN to BSN completion program | 250 | |||
Period for which per month tuition fee will be paid by nurses for the 10-course RN to BSN completion program | 39 months | |||
Approximate cash position | 2,000,000 | |||
Restricted cash | 888,225 | 868,298 | ||
Financing completed | $3,766,325 |
Nature_of_Operations_and_Liqui3
Nature of Operations and Liquidity (Schedule of Discontinued Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | Apr. 30, 2014 | |
Discontinued Operations | |||||
Revenues | $549,125 | ||||
Costs and expenses: | |||||
Instructional costs and services | 494,213 | ||||
General and administrative | -29,751 | -29,751 | |||
Total costs and expenses | -29,751 | 464,462 | |||
Income (loss) from discontinued operations, net of income taxes | 29,751 | 84,663 | |||
Assets | |||||
Cash and cash equivalents | |||||
Accounts receivable, net of allowance of $481,531, and $481,531, respectively | 5,250 | ||||
Other current assets | |||||
Net assets from discontinued operations | 5,250 | ||||
Liabilities | |||||
Accounts payable | |||||
Accrued expenses | |||||
Deferred revenue | |||||
Net liabilities from discontinued operations | |||||
Allowance for doubtful accounts receivable from discontinued operations | $486,781 | $486,781 | $481,531 |
Significant_Accounting_Policie3
Significant Accounting Policies (Narrative) (Details) (USD $) | 9 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Apr. 30, 2014 | |
Significant Accounting Policies [Abstract] | |||
Restricted cash | 888,225 | $868,298 | |
Cash and Cash Equivalents [Line Items] | |||
Cash, FDIC insured amount | 250,000 | ||
Institution One [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Deposit amount in excess of insured amount | 176,602 | ||
Institution Two [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Deposit amount in excess of insured amount | 760,169 | ||
Institution Three [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Deposit amount in excess of insured amount | 638,028 | ||
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 14,576,412 | 9,583,086 | |
Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 44,007,963 | 19,196,635 | |
Convertible Debt [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 1,207,143 | 8,093,985 | |
Convertible debt | 650,000 | 2,240,000 |
Significant_Accounting_Policie4
Significant Accounting Policies (Schedule of Reclassifications) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | Apr. 30, 2014 | Dec. 31, 2012 | |
Operating Expenses: | ||||||
Instructional | $229,907 | $566,442 | ||||
Marketing | 270,404 | 824,002 | ||||
Cost of Revenues | 662,368 | 500,311 | 1,524,793 | 1,390,444 | ||
Receivable collateral valuation reserve | 123,647 | 123,647 | 123,647 | 502,315 | ||
General and administrative | 1,701,871 | 1,752,717 | 4,160,978 | 4,866,498 | ||
Depreciation and amortization | 133,966 | 121,904 | 389,706 | 350,990 | ||
Total Operating Expenses | 2,498,205 | 2,498,579 | 6,075,477 | 6,731,579 | ||
As Previously Reported [Member] | ||||||
Operating Expenses: | ||||||
Instructional | 285,221 | 734,597 | ||||
Marketing | 270,404 | 824,002 | ||||
Cost of Revenues | 555,625 | 1,558,599 | ||||
Receivable collateral valuation reserve | 123,647 | 123,647 | ||||
General and administrative | 1,697,403 | 4,698,343 | ||||
Depreciation and amortization | 121,904 | 350,990 | ||||
Total Operating Expenses | 2,498,579 | 6,731,579 | ||||
Restatement Adjustment [Member] | ||||||
Operating Expenses: | ||||||
Cost of Revenues | -55,314 | -168,155 | ||||
Restatement Adjustment [Member] | Dues, Fees, and Licenses [Member] | ||||||
Operating Expenses: | ||||||
Instructional | -14,878 | -55,127 | ||||
Marketing | ||||||
Cost of Revenues | -14,878 | -55,127 | ||||
Receivable collateral valuation reserve | ||||||
General and administrative | 14,878 | 55,127 | ||||
Depreciation and amortization | ||||||
Total Operating Expenses | ||||||
Restatement Adjustment [Member] | Internet Related Expense [Member] | ||||||
Operating Expenses: | ||||||
Instructional | -40,436 | -113,028 | ||||
Marketing | ||||||
Cost of Revenues | -40,436 | -113,028 | ||||
Receivable collateral valuation reserve | ||||||
General and administrative | 40,436 | 113,028 | ||||
Depreciation and amortization | ||||||
Total Operating Expenses | ||||||
Restatement Adjustment [Member] | Marketing Fees [Member] | ||||||
Operating Expenses: | ||||||
Instructional | ||||||
Marketing | ||||||
Cost of Revenues | ||||||
Receivable collateral valuation reserve | ||||||
General and administrative | ||||||
Depreciation and amortization | ||||||
Total Operating Expenses | ||||||
Restatement Adjustment [Member] | Library Services Adjustment [Member] | ||||||
Operating Expenses: | ||||||
Instructional | ||||||
Marketing | ||||||
Cost of Revenues | ||||||
Receivable collateral valuation reserve | ||||||
General and administrative | ||||||
Depreciation and amortization | ||||||
Total Operating Expenses |
Secured_Note_and_Accounts_Rece1
Secured Note and Accounts Receivable - Related Parties (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||
Mar. 31, 2012 | Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | Apr. 30, 2014 | Dec. 31, 2012 | Dec. 31, 2008 | Mar. 31, 2008 | Jun. 30, 2014 | Mar. 08, 2012 | Sep. 30, 2014 | Mar. 13, 2012 | Sep. 16, 2011 | |
Related Party Transaction [Line Items] | ||||||||||||||
Accounts receivable, secured - related party, net of allowance | $146,831 | $146,831 | $146,831 | |||||||||||
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 | |||||||||||||
Receivable Collateral Valuation Reserve | 123,647 | 123,647 | 123,647 | 502,315 | ||||||||||
CEO [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Common shares pledged | 117,943 | |||||||||||||
Price per share | $0.19 | $1 | ||||||||||||
Parent Company [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 pledged by HEMG, converted to common shares | 654,850 | |||||||||||||
Due amount HEMG has failed to pay despite due demand | $772,793 | |||||||||||||
Common stock, shares to be sold | 654,850 | 654,850 | ||||||||||||
Third Party [Member] | ||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||
Price per share | 0.5 | |||||||||||||
Third party investors purchased, shares | 400,000 |
Property_and_Equipment_Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) (USD $) | Jan. 31, 2015 | Apr. 30, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $2,496,565 | $2,219,432 |
Less accumulated depreciation and amortization | -1,268,502 | -938,703 |
Total property and equipment, net | 1,228,063 | 1,280,729 |
Call center hardware [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 132,798 | 122,653 |
Computer and office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 73,286 | 66,118 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 42,698 | 36,446 |
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 | $2,147,783 | $1,894,215 |
Property_and_Equipment_Schedul1
Property and Equipment (Schedule of Software, Net) (Details) (USD $) | Jan. 31, 2015 | Apr. 30, 2014 |
Property, Plant and Equipment [Line Items] | ||
Intangible asset, net | $158,280 | $108,882 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Intangible asset, gross | 2,147,783 | 1,894,215 |
Accumulated amortization | -1,021,466 | -720,823 |
Intangible asset, net | $1,126,317 | $1,173,392 |
Property_and_Equipment_Schedul2
Property and Equipment (Schedule Of Depreciation And Amortization Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | |
Property and Equipment [Abstract] | ||||
Depreciation and Amortization Expense | $114,559 | $96,879 | $329,799 | $267,762 |
Software Amortization Expense | $104,441 | $87,610 | $300,642 | $242,259 |
Property_and_Equipment_Schedul3
Property and Equipment (Schedule of Estimated Amortization Expense of Software) (Details) (USD $) | Jan. 31, 2015 | Apr. 30, 2014 |
Property, Plant and Equipment [Line Items] | ||
Intangible asset, net | $158,280 | $108,882 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
2015 | 107,389 | |
2016 | 428,711 | |
2017 | 305,979 | |
2018 | 172,944 | |
2019 | 111,294 | |
Intangible asset, net | $1,126,317 | $1,173,392 |
Courseware_Narrative_Details
Courseware (Narrative) (Details) (Courseware [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | |
Courseware [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Courseware costs capitalized | $109,305 | |||
Amortization Expense | $19,407 | $25,025 | $59,907 | $83,227 |
Courseware_Schedule_of_Coursew
Courseware (Schedule of Courseware, Net) (Details) (USD $) | Jan. 31, 2015 | Apr. 30, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, net | $158,280 | $108,882 |
Courseware [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, gross | 2,213,343 | 2,104,038 |
Accumulated amortization | -2,055,063 | -1,995,156 |
Intangible asset, net | $158,280 | $108,882 |
Courseware_Schedule_of_Estimat
Courseware (Schedule of Estimated Future Amortization Expense) (Details) (USD $) | Jan. 31, 2015 | Apr. 30, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, net | $158,280 | $108,882 |
Courseware [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2015 | 18,464 | |
2016 | 50,891 | |
2017 | 32,257 | |
2018 | 24,168 | |
2019 | 32,500 | |
Intangible asset, net | $158,280 | $108,882 |
Loan_Payable_Officer_Related_P1
Loan Payable Officer - Related Party (Details) (CEO [Member], Loan Payable Officer - Related Party Dated June 28, 2013 [Member], USD $) | 1 Months Ended | |||
Mar. 31, 2015 | Jul. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | |
CEO [Member] | Loan Payable Officer - Related Party Dated June 28, 2013 [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt instrument, face amount | $1,000,000 | |||
Term of debentures | 6 months | |||
Interest rate | 10.00% | |||
Maturity date | 31-Jul-16 | 1-Jan-16 | 2-Apr-15 |
Convertible_Notes_Convertible_1
Convertible Notes, Convertible Notes - Related Party and Debenture Payable (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | Sep. 04, 2014 | Dec. 01, 2014 | Aug. 31, 2014 | Feb. 28, 2014 | Feb. 29, 2012 | Mar. 04, 2015 | Jul. 31, 2014 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2014 | Aug. 31, 2012 | |
Debt Instrument [Line Items] | |||||||||||||||||
Proceeds from convertible debentures | ($2,240,000) | $1,639,298 | |||||||||||||||
Warrant value recorded as debt discount | 389,565 | ||||||||||||||||
Warrant value recorded as debt issue cost | 94,316 | ||||||||||||||||
Loss on Debt Extinguishment | -452,503 | ||||||||||||||||
Hillair Capital Investments Lp [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Repayment of debt | 2,310,000 | ||||||||||||||||
Accrued interest settled | 70,000 | ||||||||||||||||
Loss on Debt Extinguishment | 452,503 | ||||||||||||||||
Convertible Promissory Note Dated February 25, 2012 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate | 3.25% | 0.19% | |||||||||||||||
Term of debentures | 2 years | ||||||||||||||||
Debt conversion, price per share | $0.19 | $1 | |||||||||||||||
Maturity date | 28-Feb-14 | ||||||||||||||||
Convertible notes payable | 75,000 | ||||||||||||||||
Face value of loan | 100,000 | ||||||||||||||||
Repayment of debt | 25,000 | 25,000 | |||||||||||||||
Future repayment of debt, December 1, 2014 | 50,000 | ||||||||||||||||
Amount of note converted | 50,000 | ||||||||||||||||
Convertible Promissory Note Dated February 27, 2012 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate | 3.25% | 0.19% | |||||||||||||||
Term of debentures | 2 years | ||||||||||||||||
Debt conversion, price per share | $0.19 | $1 | |||||||||||||||
Maturity date | 1-Dec-14 | 28-Feb-14 | |||||||||||||||
Face value of loan | 50,000 | ||||||||||||||||
Convertible Promissory Note Dated February 29, 2012 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate | 0.19% | ||||||||||||||||
Term of debentures | 2 years | ||||||||||||||||
Debt conversion, price per share | $1 | ||||||||||||||||
Maturity date | 28-Feb-14 | ||||||||||||||||
Face value of loan | 50,000 | ||||||||||||||||
CEO [Member] | Note Payable - Related Party Dated August 14, 2012 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate | 5.00% | ||||||||||||||||
Debt conversion, price per share | $0.35 | ||||||||||||||||
Maturity date | 31-Jul-16 | 1-Jan-16 | 5-Apr-15 | 31-Aug-13 | 31-Aug-13 | ||||||||||||
Face value of loan | 300,000 | ||||||||||||||||
CEO [Member] | Note Payable - Related Party Dated March 13, 2012 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate | 0.19% | ||||||||||||||||
Debt conversion, price per share | $1 | ||||||||||||||||
Maturity date | 31-Jul-16 | 1-Jan-16 | 31-Aug-13 | 31-Mar-13 | |||||||||||||
Face value of loan | 300,000 | ||||||||||||||||
Institutional Investor [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate | 8.00% | ||||||||||||||||
Term of debentures | 18 months | ||||||||||||||||
Debt conversion, price per share | $0.19 | 0.155 | 0.3325 | ||||||||||||||
Convertible notes payable | 1,911,572 | 2,000,000 | |||||||||||||||
Face value of loan | 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 | 1,700,000 | ||||||||||||||||
Fees Paid | 117,846 | ||||||||||||||||
Shares issued from conversion of convertible debt | 6,736,842 | ||||||||||||||||
Warrant value recorded as debt discount | 389,565 | ||||||||||||||||
Exercise price of warrants | 0.155 | 0.19 | |||||||||||||||
Amount of note converted | 100,000 | ||||||||||||||||
Original issue discount | 328,428 | 240,000 | |||||||||||||||
Institutional Investor [Member] | Warrant [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Expiration period | 5 years | 5 years | 5 years | ||||||||||||||
Exercise price of warrants | $0.19 | $0.19 | 0.19 | ||||||||||||||
Laidlaw and Co [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Fees Paid | 207,500 | ||||||||||||||||
Legal Fees | 35,356 | ||||||||||||||||
Issuance of common shares and warrants for services, shares | 1,347,368 | ||||||||||||||||
Warrant value recorded as debt issue cost | 94,316 | ||||||||||||||||
Exercise price of warrants | 0.3325 | ||||||||||||||||
Laidlaw and Co [Member] | Warrant [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Expiration period | 5 years |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 1 Months Ended | 12 Months Ended | 9 Months Ended | ||||
Nov. 30, 2013 | Apr. 30, 2014 | Jan. 31, 2015 | Feb. 28, 2013 | Sep. 30, 2014 | Feb. 26, 2015 | Jan. 31, 2014 | |
Line of Credit Facility [Line Items] | |||||||
Line of credit, outstanding | $244,175 | $243,989 | |||||
Accrued bonuses | |||||||
Possible estimated loss due to unauthorized borrowing | 2,200,000 | ||||||
Title IV Funds received as a percentage of revenue | 33.00% | ||||||
Remittance of Title IV funds to the Department of Education due to students ineligibility to receive the funds | 102,810 | ||||||
Parent Company [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Due amount HEMG has failed to pay despite due demand | 772,793 | ||||||
Common stock, shares to be sold | 654,850 | ||||||
Line of Credit [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit, maximum borrowing capacity | 250,000 | ||||||
LIBOR spread | 0.50% | ||||||
Line of credit, interest rate at period end | 3.75% | ||||||
Payment period | 5 years | ||||||
Line of credit, outstanding | 243,989 | ||||||
Line of credit, remaining available | 6,011 | ||||||
Letter of Credit [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit, outstanding | 2,244,971 | 1,696,445 | |||||
Line of credit, remaining available | $1,122,485 | $848,225 |
Stockholders_Equity_Deficiency2
Stockholders' Equity (Deficiency) (Common Stock and Warrants Narrative) (Details) (USD $) | 0 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | |||||
Jan. 14, 2015 | Jan. 31, 2015 | Jun. 30, 2014 | Dec. 01, 2014 | Sep. 30, 2014 | Jul. 31, 2014 | Sep. 30, 2013 | Sep. 29, 2014 | Apr. 30, 2014 | Mar. 08, 2012 | |
Stockholders Equity [Line Items] | ||||||||||
Common stock, shares authorized | 250,000,000 | 250,000,000 | 120,000,000 | 250,000,000 | ||||||
Issuance of common shares for cash | $5,547,826 | |||||||||
Issuance of common shares for services rendered | 32,632 | 32,632 | ||||||||
Laidlaw and Co [Member] | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Exercise price of warrants | $0.33 | |||||||||
Director [Member] | Equity Issuance Transaction One [Member] | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Issuance of common shares for cash | 50,000 | |||||||||
Price per share | $0.19 | |||||||||
Director [Member] | Equity Issuance Transaction Two [Member] | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Issuance of common shares for cash | 50,000 | |||||||||
Price per share | $0.19 | |||||||||
CEO [Member] | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Issuance of common shares for cash | 50,000 | |||||||||
Price per share | $0.19 | $1 | ||||||||
Institutional Investor [Member] | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Amount of note converted | 100,000 | |||||||||
Notes issued upon conversion of debt | 6,736,842 | |||||||||
Debt conversion, price per share | $0.19 | $0.16 | $0.33 | |||||||
Issuance of common shares for cash | 3,766,325 | 1,631,500 | ||||||||
Offering costs | 75,000 | |||||||||
Exercise price of warrants | $0.19 | $0.16 | ||||||||
Net proceeds from issuance of private placement | 3,700,000 | |||||||||
Number of warrants outstanding | 14,451,613 | |||||||||
Institutional Investor [Member] | Equity Issuance Transaction One [Member] | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Notes issued upon conversion of debt | 263,158 | |||||||||
Institutional Investor [Member] | Equity Issuance Transaction Two [Member] | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Notes issued upon conversion of debt | 263,158 | |||||||||
Common Stock [Member] | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Issuance of common shares for cash | 35,615 | |||||||||
Issuance of common shares for cash, shares | 35,614,154 | |||||||||
Shares issued for price protection, shares | 3,532,682 | |||||||||
Price per share | $0.16 | |||||||||
Issuance of common shares for services rendered | $211 | |||||||||
Issuance of common shares for services rendered, shares | 210,526 | 210,526 | ||||||||
Common Stock [Member] | Director [Member] | Equity Issuance Transaction One [Member] | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Issuance of common shares for cash, shares | 263,158 | |||||||||
Common Stock [Member] | Director [Member] | Equity Issuance Transaction Two [Member] | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Issuance of common shares for cash, shares | 263,158 | |||||||||
Common Stock [Member] | CEO [Member] | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Issuance of common shares for cash, shares | 263,158 | |||||||||
Common Stock [Member] | Institutional Investor [Member] | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Issuance of common shares for cash, shares | 24,298,877 | 10,525,809 | ||||||||
Shares issued for price protection, shares | 59,423 | 3,473,259 | ||||||||
Warrant [Member] | Laidlaw and Co [Member] | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Option expiration period | 5 years | |||||||||
Warrant [Member] | Director [Member] | Equity Issuance Transaction One [Member] | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Issuance of common shares for cash, shares | 263,158 | |||||||||
Warrant [Member] | Director [Member] | Equity Issuance Transaction Two [Member] | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Issuance of common shares for cash, shares | 263,158 | |||||||||
Warrant [Member] | CEO [Member] | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Issuance of common shares for cash, shares | 263,158 | |||||||||
Warrant [Member] | Institutional Investor [Member] | ||||||||||
Stockholders Equity [Line Items] | ||||||||||
Issuance of common shares for cash, shares | 12,149,439 | 5,262,907 | ||||||||
Option expiration period | 5 years | 5 years | 5 years | |||||||
Exercise price of warrants | $0.19 | $0.19 | ||||||||
Shares issued for price protection, shares | 2,662,139 |
Stockholders_Equity_Deficiency3
Stockholders' Equity (Deficiency) (Schedule of Warrants) (Details) (Warrant [Member], USD $) | 9 Months Ended |
Jan. 31, 2015 | |
Warrant [Member] | |
Number of Shares | |
Balance Outstanding, April 30, 2014 | 23,144,005 |
Granted | 20,863,958 |
Exercised | |
Forfeited | |
Expired | |
Balance Outstanding, January 31, 2015 | 44,007,963 |
Exercisable, January 31, 2015 | 44,007,963 |
Weighted Average Exercise Price | |
Balance Outstanding, April 30, 2014 | $0.31 |
Granted | $0.19 |
Exercised | |
Forfeited | |
Expired | |
Balance Outstanding, January 31, 2015 | $0.25 |
Exercisable, January 31, 2015 | $0.25 |
Weighted Average Remaining Contractual Term | |
Balance Outstanding, April 30, 2014 | 4 years 1 month 6 days |
Balance Outstanding, January 31, 2015 | 4 years 1 month 6 days |
Exercisable, January 31, 2015 | 4 years 1 month 6 days |
Aggregate Intrinsic Value | |
Balance Outstanding, January 31, 2015 | $299,903 |
Exercisable, January 31, 2015 | $299,903 |
Stockholders_Equity_Deficiency4
Stockholders' Equity (Deficiency) (Stock Options Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | ||||||||
Jan. 31, 2015 | Jan. 31, 2014 | Jan. 31, 2015 | Jan. 31, 2014 | Sep. 16, 2014 | Dec. 11, 2014 | Sep. 04, 2014 | Nov. 24, 2014 | Sep. 30, 2014 | Jul. 31, 2014 | Mar. 13, 2012 | |
Item | |||||||||||
2012 Equity Incentive Plan [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Equity Incentive Plan, shares authorized | 16,300,000 | 14,300,000 | 9,300,000 | ||||||||
Equity Incentive Plan, shares remaining | 1,723,588 | 1,723,588 | |||||||||
Employee [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Unrecognized compensation cost | $644,450 | $644,450 | |||||||||
Weighted average recognition period | 4 years | ||||||||||
Share based compensation expense | 123,085 | 98,610 | 334,723 | 395,940 | |||||||
Non-employee [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Unrecognized compensation cost | |||||||||||
Share based compensation expense | 748 | 748 | 1,496 | ||||||||
Director [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options issued during period | 200,000 | ||||||||||
Fair value of stock options granted | 12,000 | ||||||||||
Options granted, exercise price | $0.20 | ||||||||||
Number of Directors | 2 | ||||||||||
Director [Member] | Equity Issuance Transaction One [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options issued during period | 100,000 | ||||||||||
Fair value of stock options granted | 7,000 | ||||||||||
Options granted, exercise price | $0.20 | ||||||||||
Director [Member] | Equity Issuance Transaction Two [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options issued during period | 100,000 | ||||||||||
Fair value of stock options granted | 7,000 | ||||||||||
Options granted, exercise price | $0.20 | ||||||||||
Director [Member] | Equity Issuance Transaction Three [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options issued during period | 100,000 | ||||||||||
Fair value of stock options granted | 7,000 | ||||||||||
Options granted, exercise price | $0.20 | ||||||||||
Director [Member] | Equity Issuance Transaction Four [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options issued during period | 100,000 | ||||||||||
Fair value of stock options granted | 7,000 | ||||||||||
Options granted, exercise price | $0.20 | ||||||||||
Director [Member] | Equity Issuance Transaction Five [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options issued during period | 100,000 | ||||||||||
Fair value of stock options granted | 7,000 | ||||||||||
Options granted, exercise price | $0.20 | ||||||||||
Director [Member] | Equity Issuance Transaction Six [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options issued during period | 100,000 | ||||||||||
Fair value of stock options granted | 7,000 | ||||||||||
Options granted, exercise price | $0.20 | ||||||||||
Director [Member] | Equity Issuance Transaction Seven [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options issued during period | 100,000 | ||||||||||
Fair value of stock options granted | 7,000 | ||||||||||
Options granted, exercise price | $0.20 | ||||||||||
Director [Member] | Equity Issuance Transaction Eight [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options issued during period | 100,000 | ||||||||||
Fair value of stock options granted | 7,000 | ||||||||||
Options granted, exercise price | $0.20 | ||||||||||
CEO and the Board of Directors [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options issued during period | 2,600,000 | ||||||||||
Fair value of stock options granted | 130,000 | ||||||||||
Options granted, exercise price | $0.16 | ||||||||||
CFO [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options issued during period | 300,000 | ||||||||||
Fair value of stock options granted | $21,000 | ||||||||||
Options granted, exercise price | $0.23 |
Stockholders_Equity_Deficiency5
Stockholders' Equity (Deficiency) (Schedule of Stock Options Activity) (Details) (USD $) | 0 Months Ended | 9 Months Ended | |
Jan. 31, 2015 | Apr. 30, 2014 | Jan. 31, 2015 | |
Stock Incentive Plan and Stock Option Grants to Employees and Directors [Member] | |||
Number of Shares | |||
Balance Outstanding, April 30, 2014 | 10,476,412 | ||
Granted | 3,900,000 | ||
Exercised | |||
Forfeited | -20,000 | ||
Expired | |||
Balance Outstanding, January 31, 2015 | 14,356,412 | 10,476,412 | 14,356,412 |
Exercisable, January 31, 2015 | 5,710,470 | 5,710,470 | |
Weighted Average Exercise Price | |||
Balance Outstanding, April 30, 2014 | $0.23 | ||
Weighted average exercise price of options granted | $0.21 | ||
Exercised | |||
Forfeited | $0.19 | ||
Expired | |||
Balance Outstanding, January 31, 2015 | $0.21 | $0.23 | $0.21 |
Exercisable, January 31, 2015 | $0.26 | $0.26 | |
Weighted Average Remaining Contractual Term | |||
Balance Outstanding, April 30, 2014 | 3 years 4 months 24 days | 3 years 6 months | |
Granted | 3 years 4 months 24 days | ||
Forfeited | 4 years 1 month 6 days | ||
Balance Outstanding, January 31, 2015 | 3 years 4 months 24 days | 3 years 6 months | |
Exercisable, January 31, 2015 | 2 years 10 months 24 days | ||
Aggregate Intrinsic Value | |||
Balance Outstanding, April 30, 2014 | |||
Granted | 103,000 | ||
Forfeited | 1,200 | ||
Balance Outstanding, January 31, 2015 | 103,000 | 103,000 | |
Exercisable, January 31, 2015 | 4,000 | 4,000 | |
Stock Option Grants to Non-Employees [Member] | |||
Number of Shares | |||
Balance Outstanding, April 30, 2014 | 270,000 | ||
Granted | |||
Exercised | |||
Forfeited | -50,000 | ||
Expired | |||
Balance Outstanding, January 31, 2015 | 220,000 | 270,000 | 220,000 |
Exercisable, January 31, 2015 | 73,333 | 73,333 | |
Weighted Average Exercise Price | |||
Balance Outstanding, April 30, 2014 | $0.28 | ||
Weighted average exercise price of options granted | |||
Exercised | |||
Forfeited | $0.19 | ||
Expired | |||
Balance Outstanding, January 31, 2015 | $0.30 | $0.28 | $0.30 |
Exercisable, January 31, 2015 | $0.30 | $0.30 | |
Weighted Average Remaining Contractual Term | |||
Balance Outstanding, April 30, 2014 | 2 years 3 months 18 days | 2 years 9 months 18 days | |
Forfeited | 3 years 8 months 12 days | ||
Balance Outstanding, January 31, 2015 | 2 years 3 months 18 days | 2 years 9 months 18 days | |
Exercisable, January 31, 2015 | 2 years 3 months 18 days | ||
Aggregate Intrinsic Value | |||
Balance Outstanding, April 30, 2014 | |||
Forfeited | |||
Balance Outstanding, January 31, 2015 | 4,500 | 4,500 | |
Exercisable, January 31, 2015 | $1,500 | $1,500 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | ||||
Feb. 20, 2015 | Jan. 31, 2015 | Apr. 30, 2014 | Feb. 26, 2015 | Jan. 31, 2014 | |
Subsequent Event [Line Items] | |||||
Line of credit | $243,989 | $244,175 | |||
Letter of Credit [Member] | |||||
Subsequent Event [Line Items] | |||||
Line of credit | 2,244,971 | 1,696,445 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 1,122,485 | 848,225 | |||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Damages sought against HEMG | $772,793 |