Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Oct. 31, 2015 | Dec. 02, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 31, 2015 | |
Entity Registrant Name | ASPEN GROUP, INC. | |
Entity Central Index Key | 1,487,198 | |
Current Fiscal Year End Date | --04-30 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 128,553,938 | |
Trading Symbol | ASPU |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Oct. 31, 2015 | Apr. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 1,008,417 | $ 2,159,463 |
Restricted cash | 1,122,485 | 1,122,485 |
Accounts receivable, net of allowance of $332,558 and $279,453, respectively | 1,553,945 | 1,058,339 |
Prepaid expenses | 119,785 | 121,594 |
Total current assets | 3,804,632 | 4,461,881 |
Property and equipment: | ||
Call center equipment | 132,798 | 132,798 |
Computer and office equipment | 64,878 | 78,626 |
Furniture and fixtures | $ 67,531 | 42,698 |
Library (online) | 100,000 | |
Software | $ 2,421,204 | 2,244,802 |
Total | 2,686,411 | 2,598,924 |
Less accumulated depreciation and amortization | (1,516,268) | (1,387,876) |
Total property and equipment, net | 1,170,143 | 1,211,048 |
Courseware, net | 200,153 | 173,311 |
Accounts receivable, secured - related party, net of allowance of $625,963, and $625,963, respectively | 45,329 | 45,329 |
Other assets | 33,946 | 26,679 |
Total assets | 5,254,203 | 5,918,248 |
Current liabilities: | ||
Accounts payable | 491,113 | 179,109 |
Accrued expenses | 232,595 | 173,663 |
Deferred revenue | 851,923 | 784,818 |
Refunds Due Students | 460,377 | 280,739 |
Deferred rent, current portion | 1,451 | 7,751 |
Convertible notes payable, current portion | 50,000 | 50,000 |
Total current liabilities | 2,087,459 | 1,476,080 |
Line of credit | 249,783 | 243,989 |
Loan payable officer - related party | 1,000,000 | 1,000,000 |
Convertible notes payable - related party | 600,000 | 600,000 |
Total liabilities | $ 3,937,242 | $ 3,320,069 |
Commitments and contingencies - See Note 8 | ||
Stockholders' equity (deficiency): | ||
Common stock, $0.001 par value; 250,000,000 shares authorized, 128,536,938 issued and 128,336,938 outstanding at October 31, 2015, 128,253,605 issued and 128,053,605 outstanding at April 30, 2015 | $ 128,537 | $ 128,254 |
Additional paid-in capital | 25,080,272 | 24,898,647 |
Treasury stock (200,000 shares) | (70,000) | (70,000) |
Accumulated deficit | (23,821,848) | (22,358,722) |
Total stockholders' equity (deficiency) | 1,316,961 | 2,598,179 |
Total liabilities and stockholders' equity (deficiency) | $ 5,254,203 | $ 5,918,248 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Oct. 31, 2015 | Apr. 30, 2015 |
Assets | ||
Allowance for doubtful accounts, current accounts receivables | $ 332,558 | $ 279,453 |
Allowance for doubtful accounts, noncurrent accounts receivables | $ 625,963 | $ 625,963 |
Stockholders' Equity: | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 128,536,938 | 128,253,605 |
Common stock, shares outstanding | 128,336,938 | 128,053,605 |
Treasury stock, shares | 200,000 | 200,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||||
Revenues | $ 1,913,161 | $ 1,214,247 | $ 3,619,022 | $ 2,384,107 |
Operating expenses | ||||
Cost of revenues (exclusive of depreciation and amortization shown separately below) | 867,801 | 442,697 | 1,641,910 | 891,796 |
General and administrative | 1,610,202 | 1,259,105 | 3,087,819 | 2,459,153 |
Depreciation and amortization | 148,258 | 130,133 | 291,717 | 255,740 |
Total operating expenses | 2,626,261 | 1,831,935 | 5,021,446 | 3,606,689 |
Operating loss from operations | (713,100) | (617,688) | (1,402,424) | (1,222,582) |
Other income (expense): | ||||
Other income | 2,930 | 3,209 | 6,663 | 4,881 |
Interest expense | $ (34,250) | (93,750) | $ (67,365) | (354,621) |
Loss on Debt Extinguishment | (452,503) | (452,503) | ||
Total other expense, net | $ (31,320) | (543,044) | $ (60,702) | (802,243) |
Loss from operations before income taxes | $ (744,420) | $ (1,160,732) | $ (1,463,126) | $ (2,024,825) |
Income tax expense (benefit) | ||||
Net loss | $ (744,420) | $ (1,160,732) | $ (1,463,126) | $ (2,024,825) |
Net loss per share allocable to common stockholders - basic and diluted | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.02) |
Weighted average number of common shares outstanding: | ||||
Basic and diluted | 128,303,606 | 103,243,439 | 128,239,022 | 88,447,898 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY) - 6 months ended Oct. 31, 2015 - USD ($) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] |
Balance at Apr. 30, 2015 | $ 2,598,179 | $ 128,254 | $ 24,898,647 | $ (70,000) | $ (22,358,722) |
Balance, shares at Apr. 30, 2015 | 128,253,605 | ||||
Stock-based compensation | 128,987 | 128,987 | |||
Warrant Conversion Expense | 6,000 | 6,000 | |||
Shares issued for services rendered | 47,600 | $ 283 | 47,317 | ||
Shares issued for services rendered, shares | 283,333 | ||||
Attorney fees associated with Registration Statement | (679) | $ (679) | |||
Net loss | (1,463,126) | $ (1,463,126) | |||
Balance at Oct. 31, 2015 | $ 1,316,961 | $ 128,537 | $ 25,080,272 | $ (70,000) | $ (23,821,848) |
Balance, shares at Oct. 31, 2015 | 128,536,938 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (1,463,126) | $ (2,024,825) |
Less income (loss) from discontinued operations | ||
Loss from continuing operations | $ (1,463,126) | $ (2,024,825) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Bad debt expense | $ 99,188 | 105,511 |
Amortization of debt issuance costs | 75,458 | |
Amortization of debt discount | 166,241 | |
Extinguishment of debentures | 416,587 | |
Depreciation and amortization | $ 291,717 | 255,740 |
Stock-based compensation | 128,987 | $ 211,638 |
Warrant modification expense | 6,000 | |
Amortization of prepaid shares for services | 47,600 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (594,794) | $ (136,007) |
Prepaid expenses | 1,809 | $ (48,251) |
Other assets | (7,267) | |
Accounts payable | 312,004 | $ (179,453) |
Accrued expenses | 58,931 | 51,176 |
Deferred rent | (6,300) | (6,358) |
Refunds due students | 179,638 | 145,353 |
Deferred revenue | 67,105 | (42,865) |
Net cash used in operating activities | (878,508) | (1,010,055) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (214,019) | (180,466) |
Purchases of courseware | $ (63,634) | (66,479) |
Increase in restricted cash | (69,927) | |
Net cash used in investing activities | $ (277,653) | (316,872) |
Cash flows from financing activities: | ||
Proceeds from (repayments on) line of credit, net | $ 5,794 | (147) |
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) | |
Retirement of convertible notes payable | (25,000) | |
Offering costs associated with private placement | $ (679) | (107,225) |
Net cash provided by financing activities | $ 5,115 | 3,175,454 |
Cash flows from discontinued operations: | ||
Cash flows from discontinued operating activities | 5,250 | |
Net cash provided by discontinued operations | 5,250 | |
Net increase (decrease) in cash and cash equivalents | $ (1,151,046) | 1,853,777 |
Cash and cash equivalents at beginning of period | 2,159,463 | 247,380 |
Cash and cash equivalents at end of period | 1,008,417 | 2,101,157 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | $ 58,147 | $ 183,545 |
Cash paid for income taxes | ||
Supplemental disclosure of non-cash investing and financing activities | ||
Common stock issued for services | $ 47,600 |
Nature of Operations and Liquid
Nature of Operations and Liquidity | 6 Months Ended |
Oct. 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. Aspen'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. Aspen is dedicated to providing the highest quality education experiences taught by top-tier professors - 60 Because we believe higher education should be a catalyst to our students' long-term economic success, we exert financial prudence by offering affordable tuition that is one of the greatest values in online higher education. In March 2014, Aspen University unveiled a monthly payment plan aimed at reversing the college-debt sentence plaguing working-class Americans. The monthly payment plan offers bachelor students (except RN to BSN) the opportunity to pay $ 250 72 18,000 250 39 9,750 325 36 11,700 375 72 27,000 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. 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 and six months ended October 31, 2015 and 2014, our cash flows for the six months ended October 31, 2015 and 2014, and our financial position as of October 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, 2015 as filed with the SEC on July 29, 2015. The April 30, 2015 balance sheet is derived from those statements. B. Liquidity At October 31, 2015, the Company had a cash balance of approximately $ 2.1 1.1 14,747,116 2,268,670 5,547,826 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Oct. 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 and the valuation allowance on deferred tax assets. Cash and Cash Equivalents For the purposes of the unaudited 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 October 31, 2015 and April 30, 2015. The Company maintains its cash in bank and financial institution deposits that at times may exceed federally insured limits of $ 250,000 657,522 941,812 Restricted Cash Restricted cash represents amounts pledged as security for letters of credit for transactions involving Title IV programs. The company considers $ 1,122,485 as restricted cash and that balance is shown as a current asset as of October 31, 2015 and April 30, 2015 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 1Observable inputs that reflect quoted market prices (unadjusted) for identical assets and liabilities in active markets; Level 2Observable 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 3Unobservable 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 recorded 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 16,857,313 13,476,412 28,871,757 44,007,963 650,000 750,000 1,207,143 1,307,142 Reclassifications The Company discovered that an internet advertising publishing invoice was entered into the incorrect month. The effect of this was that marketing expense for the three and six months ended October 31, 2014, were understated by $ 29,371 For the For the Three Months Ended Six Months Ended October 31, 2014 October 31, 2014 Originally Adjustment As Originally Adjustment As Marketing Expense 164,627 29,371 193,998 343,893 29,371 373,264 Cost of revenues 413,326 29,371 442,697 862,425 29,371 891,796 Total operating expenses 1,802,564 29,371 1,831,935 3,577,318 29,371 3,606,689 Operating loss from operations (588,317 ) (29,371 ) (617,688 ) (1,193,211 ) (29,371 ) (1,222,582 ) Loss from operations before income taxes (1,131,361 ) (29,371 ) (1,160,732 ) (1,995,454 ) (29,371 ) (2,024,825 ) Net loss (1,131,361 ) (29,371 ) (1,160,732 ) (1,995,454 ) (29,371 ) (2,024,825 ) Recent Accounting Pronouncements Financial Accounting Standards Board, Accounting Standard Updates which are not effective until after October 31, 2015 are not expected to have a significant effect on the Company's unaudited consolidated financial position or results of operations. |
Secured Note and Accounts Recei
Secured Note and Accounts Receivable - Related Parties | 6 Months Ended |
Oct. 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 Aspen University sold courseware pursuant to marketing agreements to Higher Education Management Group, Inc. (HEMG,) HEMG's 455,000 600,000 772,793 654,850 0.19 123,647 $ 45,329 HEMG has failed to pay to Aspen University any portion of the $ 772,793 HEMG defaulted and Aspen University obtained a default judgment. In addition, Aspen University gave notice to HEMG that it intended to privately sell the 654,850 0.155 101,502 671,291 625,963 (See Notes 8 and 10) |
Property and Equipment
Property and Equipment | 6 Months Ended |
Oct. 31, 2015 | |
Property and Equipment [Abstract] | |
Property and Equipment | Note 4. Property and Equipment Property and equipment consisted of the following at October 31, 2015 and April 30, 2015: October 31, April 30, 2015 2015 Call center hardware $ 132,798 $ 132,798 Computer and office equipment 64,878 78,626 Furniture and fixtures 67,531 42,698 Library (online) 100,000 Software 2,421,204 2,244,802 2,686,411 2,598,924 Accumulated depreciation and amortization (1,516,268 ) (1,387,876 ) Property and equipment, net $ 1,170,143 $ 1,211,048 Software consisted of the following at October 31, 2015 and April 30, 2015: October 31, April 30, 2015 2015 Software $ 2,421,204 $ 2,244,802 Accumulated amortization (1,362,522 ) (1,130,453 ) Software, net $ 1,058,682 $ 1,114,349 Amortization expense for all Property and Equipment as well as the portion for just software is presented below for the three and six months ended October 31, 2015 and 2014: For the For the Three Months Ended October 31, Six Months Ended October 31, 2015 2014 2015 2014 Depreciation and Amortization Expense $ 130,154 $ 109,845 $ 254,925 $ 215,240 Software Amortization Expense $ 118,237 $ 100,224 $ 232,069 $ 196,201 The following is a schedule of estimated future amortization expense of software at October 31, 2015: Fiscal Year Ending April 30, 2016 $ 241,275 2017 360,663 2018 227,628 2019 144,455 2020 84,661 Total $ 1,058,682 |
Courseware
Courseware | 6 Months Ended |
Oct. 31, 2015 | |
Courseware [Abstract] | |
Courseware | Note 5. Courseware Courseware costs capitalized were $ 63,634 66,479 Courseware consisted of the following at October 31, 2015 and April 30, 2015: October 31, April 30, 2015 2015 Courseware $ 340,754 $ 2,247,790 Accumulated amortization (140,601 ) (2,074,479 ) Courseware, net $ 200,153 $ 173,311 Amortization expense of courseware for the three and six months ended October 31, 2015 and 2014: For the For the Three Months Ended October 31, Six Months Ended October 31, 2015 2014 2015 2014 Amortization Expense $ 18,104 $ 20,288 $ 36,792 $ 40,500 The following is a schedule of estimated future amortization expense of courseware at October 31, 2015: Fiscal Year Ending April 30, 2016 $ 30,894 2017 51,873 2018 43,784 2019 42,311 2020 31,291 Total $ 200,153 |
Loan Payable Officer - Related
Loan Payable Officer - Related Party | 6 Months Ended |
Oct. 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 6 10 February 28, 2017 |
Convertible Notes, Convertible
Convertible Notes, Convertible Notes - Related Party and Debenture Payable | 6 Months Ended |
Oct. 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 29, 2012, a loan payable of $ 50,000 0.19 1.00 On March 13, 2012, the Company's CEO loaned the Company $ 300,000 0.19 1.00 On August 14, 2012, the Company's CEO loaned the Company $ 300,000 5 0.35 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Oct. 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 0.50 3.75 five 249,783 217 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 October 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 October 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 As previously reported, 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 was a nominal defendant. The complaint was substantially similar to the complaint filed in state court of New York. 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 with prejudice. The Plaintiff's have not taken an appeal and the time to do so has expired. While the Company has been advised by its counsel that HEMG's and Spada's claims in the New York lawsuit is baseless, the Company cannot provide any assurance as to the ultimate outcome of the case. Defending the lawsuit 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. On October 15, 2015, HEMG filed bankruptcy pursuant to Chapter 7. As a result, the remaining claims and Aspen's counterclaims in the New York lawsuit are currently stayed. On August 13, 2015, a former employee filed a complaint against the Company in the United States District Court, District of Arizona, for breach of contract claiming that Plaintiff was terminated for Cause when no cause existed. Plaintiff is seeking the remaining amounts under her employment agreement, severance pay, bonuses, value of lost benefits, and the loss of the value of her stock options. The Company filed an answer to the complaint by the September 8, 2015 deadline. 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. An institution must also be authorized to offer its programs in the States where the 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 2015 represented approximately 33 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 $ 1,696,445 848,225 2,244,971 1,122,485 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. On February 25, 2015, the DEAC informed Aspen University that it had renewed its accreditation for five years to January, 2019. 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 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. In July 2012, Aspen received notice from the Delaware DOE that it is granted provisional approval status effective until June 30, 2015 and is currently in the process of applying for either an extension of its provisional approval status or obtain permanent approval status. 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 (Deficienc
Stockholders' Equity (Deficiency) | 6 Months Ended |
Oct. 31, 2015 | |
Stockholders' Equity (Deficiency) [Abstract] | |
Stockholders' Equity (Deficiency) | Note 9. Stockholders' Equity (Deficiency) Common Stock On June 8, 2015, in exchange for the termination of a consulting agreement with a Director, the Company issued 300,000 50,400 six 47,600 Warrants A summary of the Company's warrant activity during the six months ended October 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, 2015 28,871,757 $ 0.26 Granted Exercised Forfeited Expired Balance Outstanding, October 31, 2015 28,871,757 $ 0.26 3.2 $ Exercisable, October 31, 2015 28,871,757 $ 0.26 3.2 $ 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 October 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 14,300,000 16,300,000 20,300,000 3,442,687 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 three months ended October 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, 2015 14,206,412 $ 0.21 3.5 $ 103,000 Granted 2,965,000 $ 0.17 4.9 Exercised Forfeited (509,099 ) $ 0.35 2.2 Expired Balance Outstanding, October 31, 2015 16,662,313 $ 0.20 3.1 $ 8,835 Exercisable, October 31, 2015 7,234,131 $ 0.22 2.41 $ On June 8, 2015, the Chief Academic Officer received a grant of 1,000,000 60,000 700,000 42,000 300,000 18,000 0.168 On August 5, 2015, 500,000 0.18 30,000 The options vest over 3 On September 23, 2015, 465,000 39 0.131 48,600 The options vest over 3 As of October 31, 2015, there was approximately $ 480,000 3.2 The Company recorded compensation expense of $ 128,987 211,638 Stock Option Grants to Non-Employees There were no stock options granted to non-employees during the six months ended October 31, 2015. The Company recorded no no A summary of the Company's stock option activity for non-employees during the six months ended October 31, 2015 is presented below: Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Shares Price Term Value Balance Outstanding, April 30, 2015 220,000 $ 0.30 2.1 $ Granted Exercised Forfeited (25,000 ) $ 0.19 3.0 $ Expired Balance Outstanding, October 31, 2015 195,000 $ 0.31 1.4 $ Exercisable, October 31, 2015 195,000 $ 0.31 1.4 $ |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Oct. 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 Event
Subsequent Event | 6 Months Ended |
Oct. 31, 2015 | |
Subsequent Event [Abstract] | |
Subsequent Event | Note 11. Subsequent Event On November 20, 2015, the Company amended its Equity Inventive Plan by 4,000,000 20,300,000 250,000 0.165 12,500 3 |
Significant Accounting Polici18
Significant Accounting Policies (Policies) | 6 Months Ended |
Oct. 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 and the valuation allowance on deferred tax assets. |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purposes of the unaudited 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 October 31, 2015 and April 30, 2015. The Company maintains its cash in bank and financial institution deposits that at times may exceed federally insured limits of $ 250,000 657,522 941,812 |
Restricted Cash | Restricted Cash Restricted cash represents amounts pledged as security for letters of credit for transactions involving Title IV programs. The company considers $ 1,122,485 as restricted cash and that balance is shown as a current asset as of October 31, 2015 and April 30, 2015 |
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 1Observable inputs that reflect quoted market prices (unadjusted) for identical assets and liabilities in active markets; Level 2Observable 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 3Unobservable 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 recorded 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 16,857,313 13,476,412 28,871,757 44,007,963 650,000 750,000 1,207,143 1,307,142 |
Reclassifications | Reclassifications The Company discovered that an internet advertising publishing invoice was entered into the incorrect month. The effect of this was that marketing expense for the three and six months ended October 31, 2014, were understated by $ 29,371 For the For the Three Months Ended Six Months Ended October 31, 2014 October 31, 2014 Originally Adjustment As Originally Adjustment As Marketing Expense 164,627 29,371 193,998 343,893 29,371 373,264 Cost of revenues 413,326 29,371 442,697 862,425 29,371 891,796 Total operating expenses 1,802,564 29,371 1,831,935 3,577,318 29,371 3,606,689 Operating loss from operations (588,317 ) (29,371 ) (617,688 ) (1,193,211 ) (29,371 ) (1,222,582 ) Loss from operations before income taxes (1,131,361 ) (29,371 ) (1,160,732 ) (1,995,454 ) (29,371 ) (2,024,825 ) Net loss (1,131,361 ) (29,371 ) (1,160,732 ) (1,995,454 ) (29,371 ) (2,024,825 ) |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Financial Accounting Standards Board, Accounting Standard Updates which are not effective until after October 31, 2015 are not expected to have a significant effect on the Company's unaudited consolidated financial position or results of operations. |
Significant Accounting Polici19
Significant Accounting Policies (Tables) | 6 Months Ended |
Oct. 31, 2015 | |
Significant Accounting Policies [Abstract] | |
Schedule of Reclassifications | For the For the Three Months Ended Six Months Ended October 31, 2014 October 31, 2014 Originally Adjustment As Originally Adjustment As Marketing Expense 164,627 29,371 193,998 343,893 29,371 373,264 Cost of revenues 413,326 29,371 442,697 862,425 29,371 891,796 Total operating expenses 1,802,564 29,371 1,831,935 3,577,318 29,371 3,606,689 Operating loss from operations (588,317 ) (29,371 ) (617,688 ) (1,193,211 ) (29,371 ) (1,222,582 ) Loss from operations before income taxes (1,131,361 ) (29,371 ) (1,160,732 ) (1,995,454 ) (29,371 ) (2,024,825 ) Net loss (1,131,361 ) (29,371 ) (1,160,732 ) (1,995,454 ) (29,371 ) (2,024,825 ) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Oct. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |
Schedule of Property and Equipment | October 31, April 30, 2015 2015 Call center hardware $ 132,798 $ 132,798 Computer and office equipment 64,878 78,626 Furniture and fixtures 67,531 42,698 Library (online) 100,000 Software 2,421,204 2,244,802 2,686,411 2,598,924 Accumulated depreciation and amortization (1,516,268 ) (1,387,876 ) Property and equipment, net $ 1,170,143 $ 1,211,048 |
Schedule of Depreciation and Amortization Expense | For the For the Three Months Ended October 31, Six Months Ended October 31, 2015 2014 2015 2014 Depreciation and Amortization Expense $ 130,154 $ 109,845 $ 254,925 $ 215,240 Software Amortization Expense $ 118,237 $ 100,224 $ 232,069 $ 196,201 |
Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Schedule of Intangible Asset | October 31, April 30, 2015 2015 Software $ 2,421,204 $ 2,244,802 Accumulated amortization (1,362,522 ) (1,130,453 ) Software, net $ 1,058,682 $ 1,114,349 |
Schedule of Estimated Future Amortization Expense | Fiscal Year Ending April 30, 2016 $ 241,275 2017 360,663 2018 227,628 2019 144,455 2020 84,661 Total $ 1,058,682 |
Courseware (Tables)
Courseware (Tables) - Courseware [Member] | 6 Months Ended |
Oct. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Intangible Asset | October 31, April 30, 2015 2015 Courseware $ 340,754 $ 2,247,790 Accumulated amortization (140,601 ) (2,074,479 ) Courseware, net $ 200,153 $ 173,311 |
Schedule of amortization expense of intangible assets | For the For the Three Months Ended October 31, Six Months Ended October 31, 2015 2014 2015 2014 Amortization Expense $ 18,104 $ 20,288 $ 36,792 $ 40,500 |
Schedule of Estimated Future Amortization Expense | Fiscal Year Ending April 30, 2016 $ 30,894 2017 51,873 2018 43,784 2019 42,311 2020 31,291 Total $ 200,153 |
Stockholders' Equity (Deficie22
Stockholders' Equity (Deficiency) (Tables) | 6 Months Ended |
Oct. 31, 2015 | |
Stockholders' Equity (Deficiency) [Abstract] | |
Schedule of Warrants Activity | Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Warrants Shares Price Term Value Balance Outstanding, April 30, 2015 28,871,757 $ 0.26 Granted Exercised Forfeited Expired Balance Outstanding, October 31, 2015 28,871,757 $ 0.26 3.2 $ Exercisable, October 31, 2015 28,871,757 $ 0.26 3.2 $ |
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 | Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Shares Price Term Value Balance Outstanding, April 30, 2015 14,206,412 $ 0.21 3.5 $ 103,000 Granted 2,965,000 $ 0.17 4.9 Exercised Forfeited (509,099 ) $ 0.35 2.2 Expired Balance Outstanding, October 31, 2015 16,662,313 $ 0.20 3.1 $ 8,835 Exercisable, October 31, 2015 7,234,131 $ 0.22 2.41 $ |
Stock Option Grants to Non-Employees [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Option Activity | Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Shares Price Term Value Balance Outstanding, April 30, 2015 220,000 $ 0.30 2.1 $ Granted Exercised Forfeited (25,000 ) $ 0.19 3.0 $ Expired Balance Outstanding, October 31, 2015 195,000 $ 0.31 1.4 $ Exercisable, October 31, 2015 195,000 $ 0.31 1.4 $ |
Nature of Operations and Liqu23
Nature of Operations and Liquidity (Narrative) (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Apr. 30, 2015 | Mar. 31, 2014 | Oct. 31, 2015 | Apr. 30, 2015 | |
Product Information [Line Items] | ||||
Percentage of professors with doctorate degrees | 60.00% | |||
Approximate cash position | $ 2,100,000 | |||
Restricted cash | $ 1,122,485 | $ 1,122,485 | $ 1,122,485 | |
Warrant Conversion/Exercised, shares | 14,747,116 | |||
Warrant Conversion/Exercised | $ 2,268,670 | |||
Financing completed | $ 5,547,826 | |||
Bachelor Program [Member] | ||||
Product Information [Line Items] | ||||
Monthly tuition | $ 250 | |||
Tuition payment period | 72 months | |||
Total tuition | $ 18,000 | |||
Nursing Program [Member] | ||||
Product Information [Line Items] | ||||
Monthly tuition | $ 250 | |||
Tuition payment period | 39 months | |||
Total tuition | $ 9,750 | |||
Master Program [Member] | ||||
Product Information [Line Items] | ||||
Monthly tuition | $ 325 | |||
Tuition payment period | 36 months | |||
Total tuition | $ 11,700 | |||
Doctoral Program [Member] | ||||
Product Information [Line Items] | ||||
Monthly tuition | $ 375 | |||
Tuition payment period | 72 months | |||
Total tuition | $ 27,000 |
Significant Accounting Polici24
Significant Accounting Policies (Narrative) (Details) - USD ($) | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Apr. 30, 2015 | |
Significant Accounting Policies [Abstract] | |||
Restricted cash | $ 1,122,485 | $ 1,122,485 | |
Amount reclassified from cost of revenues to marketing expense | $ 29,371 | ||
Cash and Cash Equivalents [Line Items] | |||
Cash, FDIC insured amount | 250,000 | ||
Institution One [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Amount of cash balance uninsured by FDIC | 657,522 | ||
Institution Two [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Amount of cash balance uninsured by FDIC | $ 941,812 | ||
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 16,857,313 | 13,476,412 | |
Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 28,871,757 | 44,007,963 | |
Convertible Debt [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 1,207,143 | 1,307,142 | |
Convertible debt | $ 650,000 | $ 750,000 |
Significant Accounting Polici25
Significant Accounting Policies (Schedule of Reclassification) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Reclassifications [Line Items] | ||||
Marketing Expense | $ 193,998 | $ 373,264 | ||
Cost of revenues | $ 867,801 | 442,697 | $ 1,641,910 | 891,796 |
Total operating expenses | 2,626,261 | 1,831,935 | 5,021,446 | 3,606,689 |
Operating loss from operations | (713,100) | (617,688) | (1,402,424) | (1,222,582) |
Loss from operations before income taxes | (744,420) | (1,160,732) | (1,463,126) | (2,024,825) |
Net loss | $ (744,420) | (1,160,732) | $ (1,463,126) | (2,024,825) |
Originally Reported [Member] | ||||
Reclassifications [Line Items] | ||||
Marketing Expense | 164,627 | 343,893 | ||
Cost of revenues | 413,326 | 862,425 | ||
Total operating expenses | 1,802,564 | 3,577,318 | ||
Operating loss from operations | (588,317) | (1,193,211) | ||
Loss from operations before income taxes | (1,131,361) | (1,995,454) | ||
Net loss | (1,131,361) | (1,995,454) | ||
Adjustment [Member] | ||||
Reclassifications [Line Items] | ||||
Marketing Expense | 29,371 | 29,371 | ||
Cost of revenues | 29,371 | 29,371 | ||
Total operating expenses | 29,371 | 29,371 | ||
Operating loss from operations | (29,371) | (29,371) | ||
Loss from operations before income taxes | (29,371) | (29,371) | ||
Net loss | $ (29,371) | $ (29,371) |
Secured Note and Accounts Rec26
Secured Note and Accounts Receivable - Related Parties (Details) - USD ($) | Apr. 29, 2015 | Dec. 31, 2008 | Mar. 31, 2008 | Oct. 31, 2015 | Oct. 31, 2014 | Apr. 30, 2014 | Apr. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 13, 2012 | Sep. 16, 2011 |
Related Party Transaction [Line Items] | |||||||||||
Price per share | $ 0.155 | ||||||||||
Accounts receivable, secured - related party, net of allowance | $ 45,329 | $ 45,329 | |||||||||
Allowance for doubtful accounts, noncurrent accounts receivables | $ 625,963 | $ 625,963 | 625,963 | ||||||||
Proceeds from issuance of common shares and warrants, net | 101,502 | $ 5,547,826 | |||||||||
Accounts receivable, before allowance | $ 671,291 | ||||||||||
CEO [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Price per share | $ 0.19 | ||||||||||
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 | ||||||||||
Accounts receivable, secured - related party, net of allowance | $ 45,329 | $ 45,329 | |||||||||
Receivable Collateral Valuation Reserve | $ 123,647 | ||||||||||
Due amount HEMG has failed to pay despite due demand | $ 772,793 | ||||||||||
Common stock, shares to be sold | 654,850 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) | Oct. 31, 2015 | Apr. 30, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,686,411 | $ 2,598,924 |
Less accumulated depreciation and amortization | (1,516,268) | (1,387,876) |
Total property and equipment, net | 1,170,143 | 1,211,048 |
Call center [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 132,798 | 132,798 |
Computer and office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 64,878 | 78,626 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 67,531 | 42,698 |
Library (online) [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 100,000 | |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,421,204 | $ 2,244,802 |
Property and Equipment (Sched28
Property and Equipment (Schedule of Software, Net) (Details) - USD ($) | Oct. 31, 2015 | Apr. 30, 2015 |
Property, Plant and Equipment [Line Items] | ||
Intangible asset, net | $ 200,153 | $ 173,311 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Intangible asset, gross | 2,421,204 | 2,244,802 |
Accumulated amortization | (1,362,522) | (1,130,453) |
Intangible asset, net | $ 1,058,682 | $ 1,114,349 |
Property and Equipment (Sched29
Property and Equipment (Schedule Of Depreciation And Amortization Expense) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Property and Equipment [Abstract] | ||||
Depreciation and Amortization Expense | $ 130,154 | $ 109,845 | $ 254,925 | $ 215,240 |
Software Amortization Expense | $ 118,237 | $ 100,224 | $ 232,069 | $ 196,201 |
Property and Equipment (Sched30
Property and Equipment (Schedule of Estimated Amortization Expense of Software) (Details) - USD ($) | Oct. 31, 2015 | Apr. 30, 2015 |
Property, Plant and Equipment [Line Items] | ||
Intangible asset, net | $ 200,153 | $ 173,311 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
2,016 | 241,275 | |
2,017 | 360,663 | |
2,018 | 227,628 | |
2,019 | 144,455 | |
2,020 | 84,661 | |
Intangible asset, net | $ 1,058,682 | $ 1,114,349 |
Courseware (Narrative) (Details
Courseware (Narrative) (Details) - Courseware [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Courseware costs capitalized | $ 63,634 | $ 66,479 | ||
Amortization Expense | $ 18,104 | $ 20,288 | $ 36,792 | $ 40,500 |
Courseware (Schedule of Coursew
Courseware (Schedule of Courseware, Net) (Details) - USD ($) | Oct. 31, 2015 | Apr. 30, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, net | $ 200,153 | $ 173,311 |
Courseware [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, gross | 340,754 | 2,247,790 |
Accumulated amortization | (140,601) | (2,074,479) |
Intangible asset, net | $ 200,153 | $ 173,311 |
Courseware (Schedule of Estimat
Courseware (Schedule of Estimated Future Amortization Expense) (Details) - USD ($) | Oct. 31, 2015 | Apr. 30, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, net | $ 200,153 | $ 173,311 |
Courseware [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,016 | 30,894 | |
2,017 | 51,873 | |
2,018 | 43,784 | |
2,019 | 42,311 | |
2,020 | 31,291 | |
Intangible asset, net | $ 200,153 | $ 173,311 |
Loan Payable Officer - Relate34
Loan Payable Officer - Related Party (Details) - CEO [Member] - Loan Payable Officer - Related Party Dated June 28, 2013 [Member] - USD ($) | 1 Months Ended | 6 Months Ended |
Jun. 30, 2013 | Oct. 31, 2015 | |
Short-term Debt [Line Items] | ||
Debt instrument, face amount | $ 1,000,000 | |
Term of debentures | 6 months | |
Interest rate | 10.00% | |
Maturity date | Feb. 28, 2017 |
Convertible Notes, Convertibl35
Convertible Notes, Convertible Notes - Related Party and Debenture Payable (Details) - USD ($) | Aug. 14, 2012 | Mar. 13, 2012 | Feb. 29, 2012 |
Convertible Promissory Note Dated February 29, 2012 [Member] | |||
Debt Instrument [Line Items] | |||
Face value of loan | $ 50,000 | ||
2 Year Promissory Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 0.19% | ||
Debt conversion, price per share | $ 1 | ||
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 | ||
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 | ||
Face value of loan | $ 300,000 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||||
Nov. 30, 2013 | Oct. 31, 2015 | Apr. 30, 2015 | Feb. 26, 2015 | Jan. 31, 2014 | Feb. 28, 2013 | |
Line of Credit Facility [Line Items] | ||||||
Line of credit, outstanding | $ 249,783 | $ 243,989 | ||||
Consulting Agreement Investor Relations Firm [Line Items] | ||||||
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 | |||||
Line of Credit [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit, maximum borrowing capacity | $ 250,000 | |||||
Prime rate spread | 0.50% | |||||
Line of credit, interest rate at period end | 3.75% | |||||
Payment period | 5 years | |||||
Line of credit, outstanding | $ 249,783 | |||||
Line of credit, remaining available | $ 217 | |||||
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 (Deficie37
Stockholders' Equity (Deficiency) (Common Stock and Warrants Narrative) (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) | Jun. 08, 2015 | Oct. 31, 2015 |
Stockholders Equity [Line Items] | ||
Stock units granted | 300,000 | |
Fair value of grant | $ 50,400 | |
Vesting period | 6 months | |
Allocated Share-based Compensation Expense | $ 47,600 | |
Share-based Compensation Award, Tranche One [Member] | ||
Stockholders Equity [Line Items] | ||
Vesting rate | 66.00% |
Stockholders' Equity (Deficie38
Stockholders' Equity (Deficiency) (Schedule of Warrants) (Details) - Warrant [Member] - USD ($) | 6 Months Ended | 12 Months Ended |
Oct. 31, 2015 | Apr. 30, 2015 | |
Number of Shares | ||
Balance Outstanding | 28,871,757 | |
Granted | ||
Exercised | ||
Forfeited | ||
Expired | ||
Balance Outstanding | 28,871,757 | 28,871,757 |
Exercisable | 28,871,757 | |
Weighted Average Exercise Price | ||
Balance Outstanding | $ 0.26 | |
Granted | ||
Exercised | ||
Forfeited | ||
Expired | ||
Balance Outstanding | $ 0.26 | $ 0.26 |
Exercisable | $ 0.26 | |
Weighted Average Remaining Contractual Term | ||
Balance Outstanding, October 31, 2014 | 3 years 2 months 12 days | |
Granted | ||
Balance Outstanding | 3 years 2 months 12 days | |
Exercisable | 3 years 2 months 12 days | |
Aggregate Intrinsic Value | ||
Balance Outstanding, beginning balance | ||
Granted | ||
Balance Outstanding | ||
Exercisable |
Stockholders' Equity (Deficie39
Stockholders' Equity (Deficiency) (Stock Options Narrative) (Details) | Sep. 23, 2015USD ($)Item$ / sharesshares | Aug. 05, 2015USD ($)$ / sharesshares | Jun. 08, 2015USD ($)$ / sharesshares | Oct. 31, 2015USD ($)shares | Oct. 31, 2014USD ($) | Nov. 30, 2015shares | Nov. 20, 2015shares | Apr. 29, 2015$ / shares | Sep. 30, 2014shares | Jul. 31, 2014shares | Mar. 13, 2012shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Price per share | $ / shares | $ 0.155 | ||||||||||
Options granted, exercise price | $ / shares | $ 0.168 | ||||||||||
Subsequent Event [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Equity Incentive Plan, shares authorized | 20,300,000 | ||||||||||
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 | 3,442,687 | ||||||||||
2012 Equity Incentive Plan [Member] | Subsequent Event [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Equity Incentive Plan, shares authorized | 20,300,000 | ||||||||||
Employee [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options issued during period | 465,000 | ||||||||||
Number of employee to whom stock option granted | Item | 39 | ||||||||||
Fair value of grant | $ | $ 48,600 | ||||||||||
Vesting period | 3 years | ||||||||||
Options granted, exercise price | $ / shares | $ 0.131 | ||||||||||
Unrecognized compensation cost | $ | $ 480,000 | ||||||||||
Weighted average recognition period | 3 years 2 months 12 days | ||||||||||
Share based compensation expense | $ | $ 128,987 | $ 211,638 | |||||||||
Non-employee [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Unrecognized compensation cost | $ | |||||||||||
Share based compensation expense | $ | |||||||||||
Chief Academic Officer [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options issued during period | 1,000,000 | ||||||||||
Fair value of grant | $ | $ 60,000 | ||||||||||
Chief Operating Officer [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options issued during period | 700,000 | ||||||||||
Fair value of grant | $ | $ 42,000 | ||||||||||
Chief Financial Officer [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options issued during period | 300,000 | ||||||||||
Fair value of grant | $ | $ 18,000 | ||||||||||
Senior Vice President [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options issued during period | 500,000 | ||||||||||
Price per share | $ / shares | $ 0.18 | ||||||||||
Fair value of grant | $ | $ 30,000 | ||||||||||
Vesting period | 3 years |
Stockholders' Equity (Deficie40
Stockholders' Equity (Deficiency) (Schedule of Stock Options Activity) (Details) - USD ($) | Jun. 08, 2015 | Oct. 31, 2015 | Apr. 30, 2015 |
Weighted Average Exercise Price | |||
Granted | $ 0.168 | ||
Stock Incentive Plan and Stock Option Grants to Employees and Directors [Member] | |||
Number of Shares | |||
Balance Outstanding | 14,206,412 | ||
Granted | 2,965,000 | ||
Exercised | |||
Forfeited | (509,099) | ||
Expired | |||
Balance Outstanding | 16,662,313 | 14,206,412 | |
Exercisable | 7,234,131 | ||
Weighted Average Exercise Price | |||
Balance Outstanding | $ 0.21 | ||
Granted | $ 0.17 | ||
Exercised | |||
Forfeited | $ 0.35 | ||
Expired | |||
Balance Outstanding | $ 0.20 | $ 0.21 | |
Exercisable | $ 0.22 | ||
Weighted Average Remaining Contractual Term | |||
Balance Outstanding | 3 years 1 month 6 days | 3 years 6 months | |
Granted | 4 years 10 months 24 days | ||
Forfeited | 2 years 2 months 12 days | ||
Balance Outstanding | 3 years 1 month 6 days | 3 years 6 months | |
Exercisable | 2 years 4 months 28 days | ||
Aggregate Intrinsic Value | |||
Balance Outstanding | $ 103,000 | ||
Granted | |||
Forfeited | |||
Balance Outstanding | $ 8,835 | $ 103,000 | |
Exercisable | |||
Stock Option Grants to Non-Employees [Member] | |||
Number of Shares | |||
Balance Outstanding | 220,000 | ||
Granted | |||
Exercised | |||
Forfeited | (25,000) | ||
Expired | |||
Balance Outstanding | 195,000 | 220,000 | |
Exercisable | 195,000 | ||
Weighted Average Exercise Price | |||
Balance Outstanding | $ 0.30 | ||
Granted | |||
Exercised | |||
Forfeited | $ 0.19 | ||
Expired | |||
Balance Outstanding | $ 0.31 | $ 0.30 | |
Exercisable | $ 0.31 | ||
Weighted Average Remaining Contractual Term | |||
Balance Outstanding | 1 year 4 months 24 days | 2 years 1 month 6 days | |
Granted | |||
Forfeited | 3 years | ||
Balance Outstanding | 1 year 4 months 24 days | 2 years 1 month 6 days | |
Exercisable | 1 year 4 months 24 days | ||
Aggregate Intrinsic Value | |||
Balance Outstanding | |||
Granted | |||
Forfeited | |||
Balance Outstanding | |||
Exercisable |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) | Nov. 20, 2015 | Jun. 08, 2015 |
Subsequent Event [Line Items] | ||
Options granted, exercise price | $ 0.168 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Increase in total number of shares | 4,000,000 | |
Number of additional shares authorized for issuance | 20,300,000 | |
Subsequent Event [Member] | Three directors [Member] | ||
Subsequent Event [Line Items] | ||
Stock options issued during period | 250,000 | |
Options granted, exercise price | $ 0.165 | |
Fair value of grant | $ 12,500 | |
Vesting period | 3 years |