Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Apr. 30, 2016 | Jul. 26, 2016 | Oct. 31, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | ASPEN GROUP, INC. | ||
Entity Central Index Key | 1,487,198 | ||
Document Type | 10-K | ||
Document Period End Date | Apr. 30, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --04-30 | ||
Is Entity a Well-known Seasoned Issuer | No | ||
Is Entity a Voluntary Filer | No | ||
Is Entity's Reporting Status Current | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 18,300,000 | ||
Entity Common Stock, Shares Outstanding | 137,958,145 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Apr. 30, 2016 | Apr. 30, 2015 |
Current assets: | ||
Cash | $ 783,796 | $ 2,159,463 |
Restricted cash | 1,122,485 | |
Accounts receivable, net of allowance of $449,946 and $279,453, respectively | 2,179,852 | 1,058,339 |
Prepaid expenses | 123,055 | 121,594 |
Total current assets | 3,086,703 | 4,461,881 |
Property and equipment: | ||
Call center equipment | 79,199 | 132,798 |
Computer and office equipment | 67,773 | 78,626 |
Furniture and fixtures | 114,964 | 42,698 |
Library (online) | 100,000 | |
Software | 2,567,383 | 2,244,802 |
Total | 2,829,319 | 2,598,924 |
Less accumulated depreciation and amortization | (1,680,687) | (1,387,876) |
Total property and equipment, net | 1,148,632 | 1,211,048 |
Courseware, net | 194,932 | 173,311 |
Accounts receivable, secured - related party, net of allowance of $625,963, and $625,963, respectively | 45,329 | 45,329 |
Other assets | 31,175 | 26,679 |
Total assets | 4,506,771 | 5,918,248 |
Current liabilities: | ||
Accounts payable | 9,201 | 179,109 |
Accrued expenses | 176,974 | 173,663 |
Deferred revenue | 1,013,434 | 784,818 |
Refunds Due Students | 110,883 | 280,739 |
Deferred rent, current portion | 2,345 | 7,751 |
Convertible notes payable, current portion | 50,000 | 50,000 |
Total current liabilities | 1,362,837 | 1,476,080 |
Line of credit | 1,783 | 243,989 |
Loan payable officer - related party | 1,000,000 | 1,000,000 |
Convertible notes payable - related party | 300,000 | 600,000 |
Deferred rent | 29,169 | |
Total liabilities | 2,693,789 | 3,320,069 |
Commitments and contingencies - See Note 10 | ||
Stockholders' equity: | ||
Common stock, $0.001 par value; 250,000,000 shares authorized, 135,158,145 issued and 134,958,145 outstanding at April 30, 2016, 128,253,605 issued and 128,053,605 outstanding at April 30, 2015 | 134,958 | 128,254 |
Additional paid-in capital | 26,353,451 | 24,898,647 |
Treasury stock (200,000 shares) | (70,000) | (70,000) |
Accumulated deficit | (24,605,427) | (22,358,722) |
Total stockholders' equity | 1,812,982 | 2,598,179 |
Total liabilities and stockholders' equity | $ 4,506,771 | $ 5,918,248 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Apr. 30, 2016 | Apr. 30, 2015 |
Assets | ||
Allowance for doubtful accounts, current accounts receivables | $ 449,946 | $ 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 | 135,158,145 | 128,253,605 |
Common stock, shares outstanding | 134,958,145 | 128,053,605 |
Treasury stock, shares | 200,000 | 200,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Income Statement [Abstract] | ||
Revenues | $ 8,453,669 | $ 5,225,761 |
Operating expenses | ||
Cost of revenues (exclusive of depreciation and amortization shown separately below) | 3,587,028 | 2,176,330 |
General and administrative | 6,403,708 | 5,924,263 |
Depreciation and amortization | 598,303 | 528,496 |
Total operating expenses | 10,589,039 | 8,629,089 |
Operating loss | (2,135,370) | (3,403,328) |
Other income (expense): | ||
Other income | 9,985 | 9,196 |
Interest expense | (121,320) | (421,653) |
Loss on Debt Extinguishment | (452,503) | |
Total other expense, net | (111,335) | (864,960) |
Loss before income taxes | (2,246,705) | (4,268,288) |
Income tax expense (benefit) | ||
Net loss | $ (2,246,705) | $ (4,268,288) |
Net loss per share allocable to common stockholders - basic and diluted | $ (0.02) | $ (0.04) |
Weighted average number of common shares outstanding: basic and diluted | 128,444,797 | 100,884,625 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] | Total |
Balance at Apr. 30, 2014 | $ 73,414 | $ 16,302,118 | $ (70,000) | $ (18,090,434) | $ (1,784,902) |
Balance, shares at Apr. 30, 2014 | 73,414,478 | ||||
Issuance of common shares for cash | $ 35,615 | 5,512,211 | 5,547,826 | ||
Issuance of common shares for cash, shares | 35,614,154 | ||||
Offering cost for professional services from private placement | (125,579) | (125,579) | |||
Stock-based compensation | 456,871 | 456,871 | |||
Shares issued for price protection | $ 3,532 | (3,532) | |||
Shares issued for price protection, shares | 3,532,682 | ||||
Conversion of convertible debt into shares | $ 526 | 99,474 | 100,000 | ||
Conversion of convertible debt into shares, shares | 526,316 | ||||
Shares issued for services rendered | $ 419 | 69,839 | 70,258 | ||
Shares issued for services rendered, shares | 418,859 | ||||
Warrant Conversion | $ 14,748 | 2,253,922 | 2,268,670 | ||
Warrant Conversion, shares | 14,747,116 | ||||
Warrant Modification Expense | 333,323 | 333,323 | |||
Net loss | (4,268,288) | (4,268,288) | |||
Balance at Apr. 30, 2015 | $ 128,254 | 24,898,647 | (70,000) | (22,358,722) | 2,598,179 |
Balance, shares at Apr. 30, 2015 | 128,253,605 | ||||
Offering cost for professional services from private placement | (697) | (697) | |||
Stock-based compensation | 308,260 | 308,260 | |||
Conversion of convertible debt into shares | $ 1,591 | 300,720 | 302,311 | ||
Conversion of convertible debt into shares, shares | 1,591,053 | ||||
Repurchase of shares under settlement agreement | $ (42) | (5,796) | (5,838) | ||
Repurchase of shares under settlement agreement, shares | (42,000) | ||||
Shares issued for services rendered | $ 300 | 50,100 | 50,400 | ||
Shares issued for services rendered, shares | 300,000 | ||||
Warrants exercised for cash | $ 4,855 | 747,645 | 752,500 | ||
Warrants exercised for cash, shares | 4,855,487 | ||||
Warrant Modification Expense | 54,554 | 54,554 | |||
Net loss | (2,246,705) | (2,246,705) | |||
Balance at Apr. 30, 2016 | $ 134,958 | $ 26,353,451 | $ (70,000) | $ (24,605,427) | $ 1,812,982 |
Balance, shares at Apr. 30, 2016 | 134,958,145 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (2,246,705) | $ (4,268,288) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Bad debt expense | 170,677 | 156,165 |
Amortization of debt issuance costs | 75,458 | |
Amortization of debt discount | 166,241 | |
Extinguishment of debentures | 416,587 | |
Depreciation and amortization | 598,303 | 528,496 |
Stock-based compensation | 308,260 | 456,871 |
Warrant modification expense | 54,554 | 333,323 |
Common shares and warrants issued for services rendered | 50,400 | 70,258 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,292,190) | (564,614) |
Accounts receivable, secured - related party | 101,502 | |
Prepaid expenses | (1,462) | (75,710) |
Other assets | (4,496) | (1,498) |
Accounts payable | (169,908) | (275,674) |
Accrued expenses | 5,624 | 29,198 |
Deferred rent | 23,763 | (13,699) |
Refunds due students | (169,856) | (7,382) |
Deferred revenue | 228,615 | 131,300 |
Net cash used in operating activities | (2,444,421) | (2,741,466) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (466,884) | (379,492) |
Purchases of courseware | (90,624) | (143,753) |
Decrease/increase in restricted cash | 1,122,485 | (254,187) |
Net cash (used in) provided by investing activities | 564,977 | (777,432) |
Cash flows from financing activities: | ||
Proceeds from issuance of common shares and warrants, net | 5,547,826 | |
Principal payments on notes payable | (25,000) | |
Retirement of shares | (5,838) | |
Repayment of note | (2,240,000) | |
Proceeds from warrant exercise | 752,500 | 2,268,670 |
Payments for line of credit | (242,206) | (186) |
Disbursements for equity offering costs | (679) | (125,579) |
Net cash provided by financing activities | 503,777 | 5,425,731 |
Cash flows from discontinued operations: | ||
Cash flows from discontinued operations | 5,250 | |
Net cash provided by discontinued operations | 5,250 | |
Net increase (decrease) in cash and cash equivalents | (1,375,667) | 1,912,083 |
Cash at beginning of year | 2,159,463 | 247,380 |
Cash at end of year | 783,796 | 2,159,463 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 104,326 | 240,264 |
Cash paid for income taxes | ||
Supplemental disclosure of non-cash investing and financing activities | ||
Common stock issued for services | 50,400 | |
Common stock issued from conversion of notes | $ 302,311 | $ 100,000 |
Nature of Operations and Liquid
Nature of Operations and Liquidity | 12 Months Ended |
Apr. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [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 - 56% of our adjunct professors hold doctorate degrees. 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/month for 72 months ($18,000), nursing bachelor students (RN to BSN) $250/month for 39 months ($9,750), master students $325/month for 36 months ($11,700) and doctoral students $375 per month for 72 months ($27,000), interest free, thereby giving students the ability to earn a degree debt free. 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. Liquidity At April 30, 2016, the Company had a cash balance of $783,796. On April 22, 2016, the Company issued 4,855,487 shares of common stock to two of its warrant holders in exchange for their early exercise of warrants at a reduced exercise price of $0.155 per share. The Company received gross proceeds of $752,500 from these exercises. As a condition of the warrant holders exercising their warrants, Mr. Michael Mathews, the Company’s Chairman of the Board and Chief Executive Officer, converted a $300,000 note and in connection with this conversion, Mr. Mathews was issued 1,591,053 shares of common stock. See Note 11. In April 2015, the Company offered a warrant conversion, through which the Company issued 14,747,116 shares, raising $2,268,670. In fiscal 2015, the Company completed an equity financing of $5,547,826. In November of 2015, our letter of credit with Department of Education was released freeing up approximately $1.1 million of cash. With the additional cash raised in the financings, the growth in 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 Policies
Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2. Significant Accounting Policies Principles of Consolidation The 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 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 consolidated financial statements. Actual results could differ from those estimates. Significant estimates in the accompanying 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 loss contingencies, valuation of stock-based compensation and the valuation allowance on deferred tax assets. Cash and Cash Equivalents For the purposes of the consolidated statements of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents at April 30, 2016 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 per financial institution. The Company has not experienced any losses in such accounts from inception through April 30, 2016. As of April 30, 2016 and 2015, there were deposits totaling $1,224,863 and $2,191,791 respectively, held in two separate institutions greater Restricted Cash Restricted cash represents amounts pledged as security for letters of credit for transactions involving Title IV programs. The Company considered $1,122,485, as restricted cash at April 30, 2015. No cash was considered restricted at April 30, 2016. (See Note 10) 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. Accounts Receivable and Allowance for Doubtful Accounts Receivable All students are required to select both a primary and secondary payment option with respect to amounts due to Aspen for tuition, fees and other expenses. The most common payment option for Aspen’s students is personal funds or payment made on their behalf by an employer. In instances where a student selects financial aid as the primary payment option, he or she often selects personal cash as the secondary option. If a student who has selected financial aid as his or her primary payment option withdraws prior to the end of a course but after the date that Aspen’s institutional refund period has expired, the student will have incurred the obligation to pay the full cost of the course. If the withdrawal occurs before the date at which the student has earned 100% of his or her financial aid, Aspen will have to return all or a portion of the Title IV funds to the DOE and the student will owe Aspen all amounts incurred that are in excess of the amount of financial aid that the student earned and that Aspen is entitled to retain. In this case, Aspen must collect the receivable using the student’s second payment option. For accounts receivable from students, Aspen records an allowance for doubtful accounts for estimated losses resulting from the inability, failure or refusal of its students to make required payments, which includes the recovery of financial aid funds advanced to a student for amounts in excess of the student’s cost of tuition and related fees. Aspen determines the adequacy of its allowance for doubtful accounts using a general reserve method based on an analysis of its historical bad debt experience, current economic trends, and the aging of the accounts receivable and student status. Aspen applies reserves to its receivables based upon an estimate of the risk presented by the age of the receivables and student status. Aspen writes off accounts receivable balances at the time the balances are deemed uncollectible. Aspen continues to reflect accounts receivable with an offsetting allowance as long as management believes there is a reasonable possibility of collection. For accounts receivable from primary payors other than students, Aspen estimates its allowance for doubtful accounts by evaluating specific accounts where information indicates the customers may have an inability to meet financial obligations, such as bankruptcy proceedings and receivable amounts outstanding for an extended period beyond contractual terms. In these cases, Aspen uses assumptions and judgment, based on the best available facts and circumstances, to record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated are analyzed to determine the total amount of the allowance. Aspen may also record a general allowance as necessary. Direct write-offs are taken in the period when Aspen has exhausted its efforts to collect overdue and unpaid receivables or otherwise evaluate other circumstances that indicate that Aspen should abandon such efforts. Property and Equipment Property and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets per the following table. Category Depreciation Term Call center equipment 5 years Computer and office equipment 5 years Furniture and fixtures 7 years Library (online) 3 years Software 5 years Costs incurred to develop internal-use software during the preliminary project stage are expensed as incurred. Internal-use software development costs are capitalized during the application development stage, which is after: (i) the preliminary project stage is completed; and (ii) management authorizes and commits to funding the project and it is probable the project will be completed and used to perform the function intended. Capitalization ceases at the point the software project is substantially complete and ready for its intended use, and after all substantial testing is completed. Upgrades and enhancements are capitalized if it is probable that those expenditures will result in additional functionality. Amortization is provided for on a straight-line basis over the expected useful life of five years of the internal-use software development costs and related upgrades and enhancements. When existing software is replaced with new software, the unamortized costs of the old software are expensed when the new software is ready for its intended use. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful lives of the assets. Upon the retirement or disposition of property and equipment, the related cost and accumulated depreciation and amortization are removed and a gain or loss is recorded in the consolidated statements of operations. Repairs and maintenance costs are expensed in the period incurred. Courseware The Company records the costs of courseware in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 350 “Intangibles - Goodwill and Other”. Generally, costs of courseware creation are capitalized whereas costs for upgrades and enhancements are expensed as incurred. Courseware is stated at cost less accumulated amortization. Amortization is provided for on a straight-line basis over the expected useful life of five years. Long-Lived Assets The Company assesses potential impairment to its long-lived assets when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events and circumstances considered by the Company in determining whether the carrying value of identifiable intangible assets and other long-lived assets may not be recoverable include, but are not limited to: significant changes in performance relative to expected operating results, significant changes in the use of the assets, significant negative industry or economic trends, a significant decline in the Company’s stock price for a sustained period of time, and changes in the Company’s business strategy. An impairment loss is recorded when the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Any required impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds fair value and is recorded as a reduction in the carrying value of the related asset and an expense to operating results. 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. Leases The Company enters into various lease agreements in conducting its business. At the inception of each lease, the Company evaluates the lease agreement to determine whether the lease is an operating or capital lease. Leases may contain initial periods of free rent and/or periodic escalations. When such items are included in a lease agreement, the Company records rent expense on a straight-line basis over the initial term of a lease. The difference between the rent payment and the straight-line rent expense is recorded as a deferred rent liability. The Company expenses any additional payments under its operating leases for taxes, insurance or other operating expenses as incurred. 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. Cost of Revenues Cost of revenues consists of two categories of cost, instructional costs and services, and marketing and promotional costs. Instructional Costs and Services Instructional costs and services consist primarily of costs related to the administration and delivery of the Company's educational programs. This expense category includes compensation costs associated with online faculty, technology license costs and costs associated with other support groups that provide services directly to the students. Marketing and Promotional Costs Marketing and promotional costs include costs associated with producing marketing materials and advertising. Such costs are generally affected by the cost of advertising media, the efficiency of the Company's marketing and recruiting efforts, and expenditures on advertising initiatives for new and existing academic programs. Non-direct response advertising activities are expensed as incurred, or the first time the advertising takes place, depending on the type of advertising activity. Total marketing and promotional costs were $1,856,918 and $1,065,812 for the years ended April 30, 2016 and 2015, respectively. General and Administrative General and administrative expenses include compensation of employees engaged in corporate management, finance, human resources, information technology, academic operations, compliance and other corporate functions. General and administrative expenses also include professional services fees, bad debt expense related to accounts receivable, financial aid processing costs, non-capitalizable courseware and software costs, travel and entertainment expenses and facility costs. Legal Expenses All legal cost for litigation are charged to expense as incurred. Income Tax The Company uses the asset and liability method to compute the differences between the tax basis of assets and liabilities and the related financial amounts. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. The Company has deferred tax assets and liabilities that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets are subject to periodic recoverability assessments. Realization of the deferred tax assets, net of deferred tax liabilities, is principally dependent upon achievement of projected future taxable income. The Company records a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company accounts for uncertainty in income taxes using a two-step approach for evaluating tax positions. Step one, recognition, occurs when the Company concludes that a tax position, based solely on its technical merits, is more likely than not to be sustained upon examination. Step two, measurement, is only addressed if the position is more likely than not to be sustained. Under step two, the tax benefit is measured as the largest amount of benefit, determined on a cumulative probability basis, which is more likely than not to be realized upon ultimate settlement. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. Stock-Based Compensation Stock-based compensation expense is measured at the grant date fair value of the award and is expensed over the requisite service period. For employee stock-based awards, the Company calculates the fair value of the award on the date of grant using the Black-Scholes option pricing model. Determining the fair value of stock-based awards at the grant date under this model requires judgment, including estimating volatility, employee stock option exercise behaviors and forfeiture rates. The assumptions used in calculating the fair value of stock-based awards represent the Company's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. For non-employee stock-based awards, the Company calculates the fair value of the award on the date of grant in the same manner as employee awards, however, the awards are revalued at the end of each reporting period and the prorata compensation expense is adjusted accordingly until such time the non-employee award is fully vested, at which time the total compensation recognized to date shall equal the fair value of the stock-based award as calculated on the measurement date, which is the date at which the award recipient’s performance is complete. The estimation of stock-based awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from original estimates, such amounts are recorded as a cumulative adjustment in the period estimates are revised. 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 18,126,102 and 14,426,412 common shares, warrants to purchase 23,916,272 and 28,871,757 common shares, and $350,000 and $650,000 of convertible debt (convertible into 907,143 and 1,207,143 common shares, respectively) were outstanding during the years ended April 30, 2016 and 2015, 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. Segment Information The Company operates in one reportable segment as a single educational delivery operation using a core infrastructure that serves the curriculum and educational delivery needs of its online students regardless of geography. The Company's chief operating decision makers, its CEO and Chief Academic Officer, manage the Company's operations as a whole, and no revenue, expense or operating income information is evaluated by the chief operating decision makers on any component level. Recent Accounting Pronouncements Financial Accounting Standards Board, Accounting Standard Updates which are not effective until after April 30, 2016, are not expected to have a significant effect on the Company’s consolidated financial position or results of operations. ASU 2014 - 09 In June 2014, FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”. The update gives entities a single comprehensive model to use in reporting information about the amount and timing of revenue resulting from contracts to provide goods or services to customers. The proposed ASU, which would apply to any entity that enters into contracts to provide goods or services, would supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. Additionally, the update would supersede some cost guidance included in Subtopic 605-35, Revenue Recognition – Construction-Type and Production-Type Contracts. The update removes inconsistencies and weaknesses in revenue requirements and provides a more robust framework for addressing revenue issues and more useful information to users of financial statements through improved disclosure requirements. In addition, the update improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets and simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. The update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. This updated guidance is not expected to have a material impact on our results of operations, cash flows or financial condition. ASU 2015-03 In April 2015, the Financial Accounting Standards Board issued Accounting Standards Update No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs," ASU 2015-08 In May 2015, the FASB issued ASU 2015-08, “Business Combinations (Topic 805) Pushdown Accounting, |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Apr. 30, 2016 | |
Receivables [Abstract] | |
Accounts Receivable | Note 3. Accounts Receivable Accounts receivable consisted of the following at April 30, 2016 and 2015: April 30, 2016 2015 Accounts receivable $ 2,629,798 $ 1,337,792 Less: Allowance for doubtful accounts (449,946 ) (279,453 ) Accounts receivable, net $ 2,179,852 $ 1,058,339 Bad debt expense for the years ended April 30, 2016 and 2015, were $170,677 and $156,165 respectively. |
Secured Note and Accounts Recei
Secured Note and Accounts Receivable - Related Parties | 12 Months Ended |
Apr. 30, 2016 | |
Due from Related Parties, Unclassified [Abstract] | |
Secured Note and Accounts Receivable - Related Parties | Note 4. 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”,) 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, the sold courseware amounts were $455,000 and $600,000, respectively; UCC filings were filed accordingly. HEMG’s president is Mr. Patrick Spada, the former Chairman of the Company. 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 which at that time had a remaining balance of $772,793. Based on the reduction in value of the collateral to $0.19 based on the then current price of the Company’s common stock, the Company recognized an expense of $123,647 during the year ended April 30, 2014 as an additional allowance. As of April 30, 2016 and April 30, 2015, the balance of the account receivable, net of allowance, was $45,329. 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 and Aspen University obtained a default judgment. In addition, Aspen University gave notice to HEMG that it intended to privately sell the 654,850 shares after March 10, 2015. On April 29, 2015, the Company sold those shares to a private investor for $0.155 per share or $101,502, which proceeds reduced the receivable balance to $671,291 with a remaining allowance of $625,963, resulting in a net receivable of $45,329. (See Notes 10 and 14) |
Property and Equipment
Property and Equipment | 12 Months Ended |
Apr. 30, 2016 | |
Property and equipment: | |
Property and Equipment | Note 5. Property and Equipment Property and equipment consisted of the following at April 30, 2016 and April 30, 2015: April 30, April 30, 2016 2015 Call center hardware $ 79,199 $ 132,798 Computer and office equipment 67,773 78,626 Furniture and fixtures 114,964 42,698 Library (online) — 100,000 Software 2,567,383 2,244,802 2,829,319 2,598,924 Accumulated depreciation and amortization (1,680,687 ) (1,387,876 ) Property and equipment, net $ 1,148,632 $ 1,211,048 Software consisted of the following at April 30, 2016 and April 30, 2015: April 30, April 30, 2016 2015 Software $ 2,567,383 $ 2,244,802 Accumulated amortization (1,560,932 ) (1,130,453 ) Software, net $ 1,006,451 $ 1,114,349 Depreciation and Amortization expense for all Property and Equipment as well as the portion for just software is presented below for the years ended April 30, 2016 and 2015: For the Years Ended April 30, 2016 2015 Depreciation and Amortization Expense $ 529,300 $ 449,173 Software Amortization Expense $ 481,230 $ 409,630 The following is a schedule of estimated future amortization expense of software at April 30, 2016: Year Ending April 30, 2017 $ 400,049 2018 267,014 2019 183,840 2020 113,997 2021 41,551 Total $ 1,006,451 |
Courseware
Courseware | 12 Months Ended |
Apr. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Courseware | Note 6. Courseware Courseware costs capitalized were $90,624 and $143,753 for the years ended April 30, 2016 and 2015 respectively. During September 2015, $1,970,670 of fully amortized courseware was written off against the accumulated amortization. There was no expense impact to this write-off. Courseware consisted of the following at April 30, 2016 and April 30, 2015: April 30, April 30, 2016 2015 Courseware $ 319,267 $ 2,247,790 Accumulated amortization (124,335 ) (2,074,479 ) Courseware, net $ 194,932 $ 173,311 Amortization expense of courseware for the years ended April 30, 2016 and 2015: For the Years Ended April 30, 2016 2015 Amortization Expense $ 69,003 $ 79,323 The following is a schedule of estimated future amortization expense of courseware at April 30, 2016: Year Ending April 30, 2017 $ 57,271 2018 49,182 2019 47,709 2020 33,867 2021 6,903 Total $ 194,932 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Apr. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Note 7. Accrued Expenses Accrued expenses consisted of the following at April 30, 2016 and 2015: April 30, 2016 2015 Accrued compensation $ 91,070 $ 95,344 Accrued Interest 71,214 57,887 Other accrued expenses 14,690 20,432 Accrued expenses $ 176,974 $ 173,663 |
Loan Payable Officer - Related
Loan Payable Officer - Related Party | 12 Months Ended |
Apr. 30, 2016 | |
Loans Payable, by Type, Current and Noncurrent [Abstract] | |
Loan Payable Officer, Related Party | Note 8. Loan Payable Officer – Related Party On June 28, 2013, the Company received $1,000,000 as a loan from the Company’s Chief Executive Officer. This loan was for a term of 6 months with an annual interest rate of 10%, payable monthly. Through various note extensions, the debt was extended to May 31, 2017. There was no accounting effect for these extensions. |
Convertible Notes, Convertible
Convertible Notes, Convertible Notes - Related Party and Debenture Payable | 12 Months Ended |
Apr. 30, 2016 | |
Debt Disclosure [Abstract] | |
Convertible Notes, Convertible Notes - Related Party and Debenture Payable | Note 9. 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. 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 11) 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 reducing the principal to $50,000. 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 11) On March 13, 2012, the Company’s CEO loaned the Company $300,000 and received a convertible promissory note due March 31, 2013, bearing interest at 0.19% per annum. The note is convertible into common shares of the Company at the rate of $1.00 per share upon five days written notice to the Company. The Company evaluated the convertible note and determined that, for the embedded conversion option, there was no beneficial conversion value to record as the conversion price is considered to be the fair market value of the common shares on the note issue date. Through various note extensions, the debt was extended to May 31, 2017. There was no accounting effect for these modifications. On April 22, 2016, the CEO converted the loan and accrued interest into common stock. The loan was converted at $0.19 per share and the Company issued 1,591,053 shares of common stock. (See Note 11) The note modification was treated as a debt extinguishment under ASC 470-50. There was no gain or loss on this debt extinguishment. 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 exceeded the fair market value of the common shares on the note issue dates. 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. Through various note extensions, the debt was extended to May 31, 2017. 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. Convertible notes payable and loan payable consisted of the following at April 30, 2016 and 2015: April 30, April 30, 2016 2015 Convertible note payable - related party originating August 14, 2012; no monthly payments required; bearing interest at 5% [A] [B] $ 300,000 $ 300,000 Convertible note payable - related party originating March 13, 2012; no monthly payments required; bearing interest at 0.19% [A] [B] [C] — 300,000 Convertible note payable - originating February 29, 2012; no monthly payments required; bearing interest at 0.19%; maturing at February 29, 2014 50,000 50,000 Loan Payable - related party (See Note 8) originating February 25, 2012; no monthly payments required; bearing interest at 10% [B] 1,000,000 1,000,000 Total 1,350,000 1,650,000 Less: Current maturities (convertible notes payable) (50,000 ) (50,000 ) Subtotal 1,300,000 1,600,000 Less: amount due after one year for notes payable (1,000,000 ) (1,000,000 ) Amount due after one year for convertible notes payable $ 300,000 $ 600,000 [A] - Effective September 4, 2012, note amended to provide a maturity date of August 31, 2013. Effective December 17, 2012, note further amended to provide a maturity date of August 31, 2014. On September 25, 2013, maturity date had been extended to April 5, 2015. On July 16, 2014, the maturity date had been extended to January 1, 2016. [B] - Effective March 4, 2015, the note was amended to provide a maturity date of July 31, 2016. On March 3, 2016, note amended to provide a maturity date of May 31, 2017. [C] - Effective April 22, 2016, this note and its accrued interest was converted to 1,591,053 shares of common stock. Future maturities of notes payable as of April 30, 2016 are as follows: Year ending April 30, 2017 $ 50,000 2018 1,300,000 $ 1,350,000 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. 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 4.00% at April 30, 2016). 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 monthly 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 April 30, 2016 was $1,783. 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 April 30, 2016 was $248,217. Operating Leases The Company recently signed an 18 month lease for its corporate headquarters in New York, New York, commencing June 7, 2016. The monthly rent is $7,667. The Company leases office space for its developers in Dieppe, NB, Canada under a one year agreement commencing January 1, 2016. The monthly rent payment is $2,049 Canadian which is approximately $1,600 US. The Company leases office space for its Denver, Colorado location under a one year lease commencing September 15, 2015. The monthly rent payment is $7,127. The lease was recently extended to August 2017. On February 1, 2016, the Company entered into a 64-month lease agreement for its call center in Phoenix, Arizona. The operating lease granted four initial months of free rent and had a base monthly rent of $10,718 and then increases 2% per year after. The following is a schedule by years of future minimum rental payments required under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of April 30, 2016: Year Ending April 30, 2017 $ 146,401 2018 131,291 2019 134,214 2020 137,137 2021 140,060 2022 11,692 Total minimum payments required $ 700,795 Rent expense for the years ended April 30, 2016 and 2015 were $239,658 and $213,225, respectively. 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 April 30, 2016, 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 April 30, 2016, 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 claims. On December 10, 2013, the Company filed a series of counterclaims against HEMG and Mr. Spada in state court of New York. 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. 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. That matter has been fully and finally settled as of June 2016 and has been dismissed. The Company accrued $87,500 in accordance with ASC 450-20-55-11 and is included in accrued expenses at April 30, 2016. 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. 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 2016 represented approximately 28% of the Company's cash basis 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 had 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. In November of 2015, the DOE informed Aspen that they no longer need to post a letter of credit. It was subsequently released. 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. 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 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. In July 2012, Aspen received notice from the Delaware DOE that it was granted provisional approval status effective until June 30, 2015. On April 25, 2016 the Delaware DOE informed Aspen University it was granted full approval to operate with degree-granting authority in the State of Delaware until July 1, 2020. Aspen University is authorized by the Colorado Commission on Education to operate in Colorado as a degree granting institution. Letter of Credit The Company had maintained a letter of credit under a DOE requirement, and this requirement was lifted in November of 2015 (See Note 2 “Restricted Cash”). |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Apr. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Note 11. Stockholders’ Equity 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 issuing each of them 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 $3,766,326 from the sale of 24,298,871 shares of common stock and 12,149,438 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 September 30, 2014, Aspen Group filed a Certificate of Amendment to its Certificate of Incorporation increasing its authorized shares from 120,000,000 shares to 250,000,000 shares. 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. (See Note 9) 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 April 23 and 29, 2015, the Company closed on its offering to warrant holders whereby it issued 14,636,590 shares of common stock to the holders in exchange for their early exercise of warrants at the reduced exercise price of $0.155. One of the participating warrant holders is an executive officer of the Company. The Company received gross proceeds of $2,268,670. The offering closed in two tranches of 7,556,884 shares and 7,079,700 shares on April 23rd and April 29th, respectively. Additionally, on April 29th, two warrant holders cashlessly exercised a total of 600,000 warrants and were issued 110,526 shares of common stock in connection with a reduced exercise price of $0.155. The Company recorded an expense of $333,323 for the warrant modifications as described below. On April 29, 2015, 208,333 shares of stock were issued for services provided to Aspen. The shares were valued at the fair market value of the common stock on January 1, 2015, and accordingly, the Company recorded an expense of $37,626. On June 8, 2015, in exchange for the termination of a consulting agreement with a Director, the Company issued 300,000 restricted stock units (with the value of $50,400 based on the market value on the grant date). Two-thirds are fully vested and the remaining balance vests in six equal monthly installments commencing on June 30, 2015. At January 31, 2016, the Company has recorded consulting expense of $50,400 and it was fully vested. On January 19, 2016, the Company paid $29,500 as part of settlement to repurchase 42,000 shares. After adjusting for the shares, the Company recorded an expense of $23,662. On April 22, 2016, the Company issued, 4,855,487 shares of common stock to two of its warrant holders in exchange for their early exercise of warrants at a reduced price of $0.155(originally, $0.19) per share. The Company recorded a warrant modification expense of $48,555 in accordance with ASC 718-20-35 related to the incremental increase in value. The Company received gross proceeds of $752,500 from these exercises. As a condition of the warrant holders exercising their warrants, the CEO converted a $300,000 note and the related interest on the Note and the conversion price was reduced from $1.00 to $0.19 per share. In connection with these conversions, the CEO was issued 1,591,053 shares of common stock. (See Note 9) Warrants A summary of the Company’s warrant activity during the year ended April 30, 2016 is presented below: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Warrants Shares Price Term Value Balance Outstanding, April 30, 2015 28,771,757 $ 0.26 4.2 $ 179,791 Granted — — — — Forfeited — — — — Exercised (4,855,487 ) 0.155 — — Expired — — — — Balance Outstanding, April 30, 2016 23,916,270 $ 0.19 3.0 $ 85,978 Exercisable, April 30, 2016 23,916,270 $ 0.19 3.0 $ 85,978 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 issuing each of them 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 $3,766,326 from the sale of 24,298,871 shares of common stock and 12,149,438 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. On April 23 and 29, 2015, the “Company closed on its offering to warrant holders whereby it issued 14,636,590 shares of common stock to the holders in exchange for their early exercise of warrants at the reduced exercise price of $0.155. One of the participating warrant holders is an executive officer of the Company. The Company received gross proceeds of $2,268,670. The offering closed in two tranches of 7,556,884 shares and 7,079,700 shares on April 23rd and April 29th, respectively. Additionally, on April 29th, two warrant holders exercised cashless a total of 600,000 warrants and were issued 110,526 shares of common stock in connection with a reduced exercise price of $0.155. Since the exercise price was discounted from the stated prices of $0.50, $0.3325 or $0.19, a warrant modification expense of $333,323 was recorded in accordance with ASC 718-20-35. This expense was calculated by comparing the value of the warrants before and after the reduced price. On April 22, 2016, the Company issued, 4,855,487 shares of common stock to two of its warrant holders in exchange for their early exercise of warrants at a reduced price of $0.155(originally, $0.19) per share. The Company received gross proceeds of $752,500 from these exercises. 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, 16,300,000 effective September 2014 and 20,300,000 effective November 2015, 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 April 30, 2016, there were 2,173,898 shares remaining under the Plan for future issuance. See Note 15 as the plan was further amended. The Company estimates the fair value of share-based compensation utilizing the Black-Scholes option pricing model, which is dependent upon several variables such as the expected option term, expected volatility of the Company’s stock price over the expected term, expected risk-free interest rate over the expected option term, expected dividend yield rate over the expected option term, and an estimate of expected forfeiture rates. The Company believes this valuation methodology is appropriate for estimating the fair value of stock options granted to employees and directors which are subject to ASC Topic 718 requirements. These amounts are estimates and thus may not be reflective of actual future results, nor amounts ultimately realized by recipients of these grants. The Company recognizes compensation on a straight-line basis over the requisite service period for each award. The following table summarizes the assumptions the Company utilized to record compensation expense for stock options granted to employees during the years ended April 30, 2016 and 2015. April 30, 2016 2015 Expected life (years) 4 - 6.5 3.3 Expected volatility 40.0% - 43.0 % 45.0 % Weighted-average volatility 40.0 % 45.0 % Risk-free interest rate 0.38 % 0.38 % Dividend yield 0.00 % 0.00 % Expected forfeiture rate n/a n/a The Company utilized the simplified method to estimate the expected life for stock options granted to employees. The simplified method was used as the Company does not have sufficient historical data regarding stock option exercises. The expected volatility is based on the average of the expected volatilities from the most recent audited financial statements available for comparative public companies that are deemed to be similar in nature to the Company. The risk-free interest rate is based on the U.S. Treasury yields with terms equivalent to the expected life of the related option at the time of the grant. Dividend yield is based on historical trends. While the Company believes these estimates are reasonable, the compensation expense recorded would increase if the expected life was increased, a higher expected volatility was used, or if the expected dividend yield increased. A summary of the Company’s stock option activity for employees and directors during the year ended April 30, 2016 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 3.45 103,000 Granted 5,215,000 $ 0.17 5.8 — Exercised — — — — Forfeited (1,490,310 ) $ 0.38 2.6 — Expired — — — — Balance Outstanding, April 30, 2016 17,931,102 $ 0.19 3.3 $ 25,760 Exercisable, April 30, 2016 7,162,464 $ 0.22 1.9 $ 4,333 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. On June 8, 2015, the Chief Academic Officer received a grant of 1,000,000 options which has a fair value of $60,000, the Chief Operating Officer received a grant of 700,000 options which has a fair value of $42,000 and the Chief Financial Officer received a grant of 300,000 options which has a fair value of $18,000. All of these options have an exercise price of $0.168 per share. On August 5, 2015, 500,000 options were granted to the Senior Vice President of Compliance. The exercise price was $0.18 and the fair value was $30,000. The options vest over 3 years. On September 23, 2015, 465,000 options were granted to a total of 39 employees. The exercise prices were $0.131 and the fair value of the total grant was $48,600. The options vest over 3 years. On November 20, 2015, three directors were each awarded 250,000 five- year options. The options vest over three years, the exercise prices were $0.165 and the fair value of the total grant of 750,000 options is $37,500. On December 11, 2015, the Chief Executive Officer was granted 1,500,000 options that vest over three years. The exercise price is $0.175, the life of the options is ten years and the fair value of the grant is $105,000. As of April 30, 2016, there was approximately $437,000 of unrecognized compensation costs related to nonvested share-based compensation arrangements. That cost is expected to be recognized over a weighted-average period of 2.7 years. The Company recorded compensation expense of $308,260 for the year ended April 30, 2016 in connection with employee stock options. The Company recorded compensation expense of $456,871 for the year ended April 30, 2015 in connection with employee stock options. Stock Option Grants to Non-Employees There were no stock options granted to non-employees during the year April 30, 2016 and 2015. The Company recorded no compensation expense for the year ended April 30, 2016 in connection with non-employee stock options and $748 of expense for the year ended April 30, 2015. There was no unrecognized compensation cost at April 30, 2016. A summary of the Company's stock option activity for non-employees during the nine months ended April 30, 2016 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 $ 0.3 2.1 $ — Granted — — — — Exercised — — — — Forfeited (25,000 ) $ 0.19 3.0 — Expired — — — — Balance Outstanding, April 30, 2016 195,000 $ 0.29 0.9 — Exercisable, April 30, 2016 195,000 $ 0.29 0.9 — |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12. Income Taxes The components of income tax expense (benefit) are as follows: For the Years Ended April 30, 2016 2015 Current: Federal $ — $ — State — — — — Deferred: Federal — — State — — — — Total Income tax expense (benefit) $ — $ — Significant components of the Company's deferred income tax assets and liabilities are as follows: April 30, 2016 2015 Deferred tax assets: Net operating loss $ 8,271,894 $ 7,487,076 Allowance for doubtful accounts 26,793 21,416 Intangible assets 249,099 304,062 Deferred rent 11,678 2,872 Stock-based compensation 694,900 580,672 Contributions carryforward 93 93 Total deferred tax assets 9,254,457 8,396,191 Deferred tax liabilities: Property and equipment (185,683 ) (155,991 ) Total deferred tax liabilities (185,683 ) (155,991 ) Deferred tax assets, net 9,068,774 8,240,200 Valuation allowance: Beginning of year (8,240,200 ) (6,664,215 ) (Increase) during period (828,574 ) (1,575,985 ) Ending balance (9,068,774 ) (8,240,200 ) Net deferred tax asset $ — $ — A valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized. The Company recorded a valuation allowance at April 30, 2016 and 2015 due to the uncertainty of realization. Management believes that based upon its projection of future taxable operating income for the foreseeable future, it is more likely than not that the Company will not be able to realize the tax benefit associated with deferred tax assets. The net change in the valuation allowance during the year ended April 30, 2016 was an increase of $828,574. At April 30, 2016, the Company had $22,322,804 of net operating loss carryforwards which will expire from 2031 to 2036. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for unrecognized tax benefits. As of April 30, 2016, tax years 2012 through 2015 remain open for IRS audit. The Company has received no notice of audit from the Internal Revenue Service for any of the open tax years. A reconciliation of income tax computed at the U.S. statutory rate to the effective income tax rate is as follows: April 30, 2016 2015 Statutory U.S. federal income tax rate 34.0 % 34.0 % State income taxes, net of federal tax benefit 3.0 3.0 Other (0.1 ) (0.1 ) Change in valuation allowance (36.9 ) (36.9 ) Effective income tax rate 0.0 % 0.0 % |
Concentrations
Concentrations | 12 Months Ended |
Apr. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Note 13. Concentrations Concentration of Credit Risk As of April 30, 2016, the CompanyÂ’s bank balances exceed FDIC insurance by $1,224,863. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Apr. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 14. Related Party Transactions See Note 4 for discussion of secured note and account receivable to related parties and see Notes 8 and 9 for discussion of loans payable and convertible notes payable to related parties. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Apr. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 15. Subsequent Events On May 19, 2016, the Company granted to each of its non-employee directors 150,000 five-year stock options. The Company granted an additional 50,000 five-year stock options to the chairman of the Compensation Committee and to the chairman of the Audit Committee. These options are exercisable at $0.16 and vest in three years. For the directors receiving 150,000, the fair value was approximately $7,500 per grant and for the two directors receiving 200,000 options, the fair value on the date of grant was approximately $10,000. On June 23, 2016, the Company amended the 2012 Equity Incentive Plan to increase the number of authorized shares under the Plan by 5 million shares to a total of 25.3 million shares. In addition, on June 23, 2016, the Company granted 2,000,000 stock options to the Chief Operating Officer, 700,000 stock options to the Chief Academic Officer and 300,000 to the Chief Financial Officer. The five-year options are exercisable at a price of $0.166 and vest over three years. On the date of grant, the grant to the Chief Operating Officer had a fair value of approximately $100,000, the grant to the Chief Academic Officer had a fair value of approximately $35,000 and the grant to the Chief Financial Officer had a fair value of approximately $15,000. Effective July 1, 2016, the Company increased the Chief Operating OfficerÂ’s salary from $200,000 to $240,000 and the Chief Financial OfficerÂ’s salary from $200,000 to $220,000. On June 24, 2016, the Company issued 2,500,000 shares of common stock with a fair value of $400,000 based on the $0.16 grant date fair value and agreed to pay $400,000 to a former institutional investor in exchange for the surrender of 13,451,613 warrants exercisable at $0.155 per share. The Company has issued a total of 500,000 shares of restricted common stock to two investor relations firms for services to be rendered over six (for one firm) and 12 months. The stock price on the grant dates were $0.15 and accordingly, the company will amortize $75,000 over the respective terms of the agreements. |
Significant Accounting Polici22
Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The 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 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 consolidated financial statements. Actual results could differ from those estimates. Significant estimates in the accompanying 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 loss contingencies, 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 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 April 30, 2016 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 per financial institution. The Company has not experienced any losses in such accounts from inception through April 30, 2016. As of April 30, 2016 and 2015, there were deposits totaling $1,224,863 and $2,191,791 respectively, held in two separate institutions greater |
Restricted Cash | Restricted Cash Restricted cash represents amounts pledged as security for letters of credit for transactions involving Title IV programs. The Company considered $1,122,485, as restricted cash at April 30, 2015. No cash was considered restricted at April 30, 2016. (See Note 10) |
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. |
Accounts Receivable and Allowance for Doubtful Accounts Receivable | Accounts Receivable and Allowance for Doubtful Accounts Receivable All students are required to select both a primary and secondary payment option with respect to amounts due to Aspen for tuition, fees and other expenses. The most common payment option for AspenÂ’s students is personal funds or payment made on their behalf by an employer. In instances where a student selects financial aid as the primary payment option, he or she often selects personal cash as the secondary option. If a student who has selected financial aid as his or her primary payment option withdraws prior to the end of a course but after the date that AspenÂ’s institutional refund period has expired, the student will have incurred the obligation to pay the full cost of the course. If the withdrawal occurs before the date at which the student has earned 100% of his or her financial aid, Aspen will have to return all or a portion of the Title IV funds to the DOE and the student will owe Aspen all amounts incurred that are in excess of the amount of financial aid that the student earned and that Aspen is entitled to retain. In this case, Aspen must collect the receivable using the studentÂ’s second payment option. For accounts receivable from students, Aspen records an allowance for doubtful accounts for estimated losses resulting from the inability, failure or refusal of its students to make required payments, which includes the recovery of financial aid funds advanced to a student for amounts in excess of the studentÂ’s cost of tuition and related fees. Aspen determines the adequacy of its allowance for doubtful accounts using a general reserve method based on an analysis of its historical bad debt experience, current economic trends, and the aging of the accounts receivable and student status. Aspen applies reserves to its receivables based upon an estimate of the risk presented by the age of the receivables and student status. Aspen writes off accounts receivable balances at the time the balances are deemed uncollectible. Aspen continues to reflect accounts receivable with an offsetting allowance as long as management believes there is a reasonable possibility of collection. For accounts receivable from primary payors other than students, Aspen estimates its allowance for doubtful accounts by evaluating specific accounts where information indicates the customers may have an inability to meet financial obligations, such as bankruptcy proceedings and receivable amounts outstanding for an extended period beyond contractual terms. In these cases, Aspen uses assumptions and judgment, based on the best available facts and circumstances, to record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated are analyzed to determine the total amount of the allowance. Aspen may also record a general allowance as necessary. Direct write-offs are taken in the period when Aspen has exhausted its efforts to collect overdue and unpaid receivables or otherwise evaluate other circumstances that indicate that Aspen should abandon such efforts. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets per the following table. Category Depreciation Term Call center equipment 5 years Computer and office equipment 5 years Furniture and fixtures 7 years Library (online) 3 years Software 5 years Costs incurred to develop internal-use software during the preliminary project stage are expensed as incurred. Internal-use software development costs are capitalized during the application development stage, which is after: (i) the preliminary project stage is completed; and (ii) management authorizes and commits to funding the project and it is probable the project will be completed and used to perform the function intended. Capitalization ceases at the point the software project is substantially complete and ready for its intended use, and after all substantial testing is completed. Upgrades and enhancements are capitalized if it is probable that those expenditures will result in additional functionality. Amortization is provided for on a straight-line basis over the expected useful life of five years of the internal-use software development costs and related upgrades and enhancements. When existing software is replaced with new software, the unamortized costs of the old software are expensed when the new software is ready for its intended use. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful lives of the assets. Upon the retirement or disposition of property and equipment, the related cost and accumulated depreciation and amortization are removed and a gain or loss is recorded in the consolidated statements of operations. Repairs and maintenance costs are expensed in the period incurred. |
Courseware | Courseware The Company records the costs of courseware in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 350 “Intangibles - Goodwill and Other”. Generally, costs of courseware creation are capitalized whereas costs for upgrades and enhancements are expensed as incurred. Courseware is stated at cost less accumulated amortization. Amortization is provided for on a straight-line basis over the expected useful life of five years. |
Long-Lived Assets | Long-Lived Assets The Company assesses potential impairment to its long-lived assets when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Events and circumstances considered by the Company in determining whether the carrying value of identifiable intangible assets and other long-lived assets may not be recoverable include, but are not limited to: significant changes in performance relative to expected operating results, significant changes in the use of the assets, significant negative industry or economic trends, a significant decline in the CompanyÂ’s stock price for a sustained period of time, and changes in the CompanyÂ’s business strategy. An impairment loss is recorded when the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Any required impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds fair value and is recorded as a reduction in the carrying value of the related asset and an expense to operating results. |
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. |
Leases | Leases The Company enters into various lease agreements in conducting its business. At the inception of each lease, the Company evaluates the lease agreement to determine whether the lease is an operating or capital lease. Leases may contain initial periods of free rent and/or periodic escalations. When such items are included in a lease agreement, the Company records rent expense on a straight-line basis over the initial term of a lease. The difference between the rent payment and the straight-line rent expense is recorded as a deferred rent liability. The Company expenses any additional payments under its operating leases for taxes, insurance or other operating expenses as incurred. |
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 CompanyÂ’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 CompanyÂ’s accounting policies revenue is not recognized with respect to amounts that could potentially be refunded. The CompanyÂ’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. |
Cost of Revenues | Cost of Revenues Cost of revenues consists of two categories of cost, instructional costs and services, and marketing and promotional costs. |
Instructional Costs and Services | Instructional Costs and Services Instructional costs and services consist primarily of costs related to the administration and delivery of the Company's educational programs. This expense category includes compensation costs associated with online faculty, technology license costs and costs associated with other support groups that provide services directly to the students. |
Marketing and Promotional Costs | Marketing and Promotional Costs Marketing and promotional costs include costs associated with producing marketing materials and advertising. Such costs are generally affected by the cost of advertising media, the efficiency of the Company's marketing and recruiting efforts, and expenditures on advertising initiatives for new and existing academic programs. Non-direct response advertising activities are expensed as incurred, or the first time the advertising takes place, depending on the type of advertising activity. Total marketing and promotional costs were $1,856,918 and $1,065,812 for the years ended April 30, 2016 and 2015, respectively. |
General and Administrative | General and Administrative General and administrative expenses include compensation of employees engaged in corporate management, finance, human resources, information technology, academic operations, compliance and other corporate functions. General and administrative expenses also include professional services fees, bad debt expense related to accounts receivable, financial aid processing costs, non-capitalizable courseware and software costs, travel and entertainment expenses and facility costs. |
Legal Expenses | Legal Expenses All legal cost for litigation are charged to expense as incurred. |
Income Tax | Income Tax The Company uses the asset and liability method to compute the differences between the tax basis of assets and liabilities and the related financial amounts. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. The Company has deferred tax assets and liabilities that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets are subject to periodic recoverability assessments. Realization of the deferred tax assets, net of deferred tax liabilities, is principally dependent upon achievement of projected future taxable income. The Company records a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company accounts for uncertainty in income taxes using a two-step approach for evaluating tax positions. Step one, recognition, occurs when the Company concludes that a tax position, based solely on its technical merits, is more likely than not to be sustained upon examination. Step two, measurement, is only addressed if the position is more likely than not to be sustained. Under step two, the tax benefit is measured as the largest amount of benefit, determined on a cumulative probability basis, which is more likely than not to be realized upon ultimate settlement. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense is measured at the grant date fair value of the award and is expensed over the requisite service period. For employee stock-based awards, the Company calculates the fair value of the award on the date of grant using the Black-Scholes option pricing model. Determining the fair value of stock-based awards at the grant date under this model requires judgment, including estimating volatility, employee stock option exercise behaviors and forfeiture rates. The assumptions used in calculating the fair value of stock-based awards represent the Company's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. For non-employee stock-based awards, the Company calculates the fair value of the award on the date of grant in the same manner as employee awards, however, the awards are revalued at the end of each reporting period and the prorata compensation expense is adjusted accordingly until such time the non-employee award is fully vested, at which time the total compensation recognized to date shall equal the fair value of the stock-based award as calculated on the measurement date, which is the date at which the award recipientÂ’s performance is complete. The estimation of stock-based awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from original estimates, such amounts are recorded as a cumulative adjustment in the period estimates are revised. |
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 18,126,102 and 14,426,412 common shares, warrants to purchase 23,916,272 and 28,871,757 common shares, and $350,000 and $650,000 of convertible debt (convertible into 907,143 and 1,207,143 common shares, respectively) were outstanding during the years ended April 30, 2016 and 2015, 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. |
Segment Information | Segment Information The Company operates in one reportable segment as a single educational delivery operation using a core infrastructure that serves the curriculum and educational delivery needs of its online students regardless of geography. The Company's chief operating decision makers, its CEO and Chief Academic Officer, manage the Company's operations as a whole, and no revenue, expense or operating income information is evaluated by the chief operating decision makers on any component level. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Financial Accounting Standards Board, Accounting Standard Updates which are not effective until after April 30, 2016, are not expected to have a significant effect on the Company’s consolidated financial position or results of operations. ASU 2014-09 In June 2014, FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”. The update gives entities a single comprehensive model to use in reporting information about the amount and timing of revenue resulting from contracts to provide goods or services to customers. The proposed ASU, which would apply to any entity that enters into contracts to provide goods or services, would supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. Additionally, the update would supersede some cost guidance included in Subtopic 605-35, Revenue Recognition – Construction-Type and Production-Type Contracts. The update removes inconsistencies and weaknesses in revenue requirements and provides a more robust framework for addressing revenue issues and more useful information to users of financial statements through improved disclosure requirements. In addition, the update improves comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets and simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. The update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. This updated guidance is not expected to have a material impact on our results of operations, cash flows or financial condition. ASU 2015-03 In April 2015, the Financial Accounting Standards Board issued Accounting Standards Update No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs," ASU 2015-08 In May 2015, the FASB issued ASU 2015-08, “Business Combinations (Topic 805) Pushdown Accounting, |
Significant Accounting Polici23
Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment Useful Lives | Category Depreciation Term Call center equipment 5 years Computer and office equipment 5 years Furniture and fixtures 7 years Library (online) 3 years Software 5 years |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | April 30, 2016 2015 Accounts receivable $ 2,629,798 $ 1,337,792 Less: Allowance for doubtful accounts (449,946 ) (279,453 ) Accounts receivable, net $ 2,179,852 $ 1,058,339 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |
Schedule of Property and Equipment | April 30, April 30, 2016 2015 Call center hardware $ 79,199 $ 132,798 Computer and office equipment 67,773 78,626 Furniture and fixtures 114,964 42,698 Library (online) — 100,000 Software 2,567,383 2,244,802 2,829,319 2,598,924 Accumulated depreciation and amortization (1,680,687 ) (1,387,876 ) Property and equipment, net $ 1,148,632 $ 1,211,048 |
Schedule of Estimated Future Amortization Expense | Year Ending April 30, 2017 $ 400,049 2018 267,014 2019 183,840 2020 113,997 2021 41,551 Total $ 1,006,451 |
Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Schedule of Intangible Asset | April 30, April 30, 2016 2015 Software $ 2,567,383 $ 2,244,802 Accumulated amortization (1,560,932 ) (1,130,453 ) Software, net $ 1,006,451 $ 1,114,349 |
Schedule of Depreciation and Amortization Expense | For the Years Ended April 30, 2016 2015 Depreciation and Amortization Expense $ 529,300 $ 449,173 Software Amortization Expense $ 481,230 $ 409,630 |
Courseware (Tables)
Courseware (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Estimated Future Amortization Expense | Year Ending April 30, 2017 $ 400,049 2018 267,014 2019 183,840 2020 113,997 2021 41,551 Total $ 1,006,451 |
Courseware [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Intangible Asset | April 30, April 30, 2016 2015 Courseware $ 319,267 $ 2,247,790 Accumulated amortization (124,335 ) (2,074,479 ) Courseware, net $ 194,932 $ 173,311 |
Schedule of amortization expense of intangible assets | For the Years Ended April 30, 2016 2015 Amortization Expense $ 69,003 $ 79,323 |
Schedule of Estimated Future Amortization Expense | Year Ending April 30, 2017 $ 57,271 2018 49,182 2019 47,709 2020 33,867 2021 6,903 Total $ 194,932 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | April 30, 2016 2015 Accrued compensation $ 91,070 $ 95,344 Accrued Interest 71,214 57,887 Other accrued expenses 14,690 20,432 Accrued expenses $ 176,974 $ 173,663 |
Convertible Notes, Convertibl28
Convertible Notes, Convertible Notes - Related Party and Debenture Payable (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Notes Payable | April 30, April 30, 2016 2015 Convertible note payable - related party originating August 14, 2012; no monthly payments required; bearing interest at 5% [A] [B] $ 300,000 $ 300,000 Convertible note payable - related party originating March 13, 2012; no monthly payments required; bearing interest at 0.19% [A] [B] [C] — 300,000 Convertible note payable - originating February 29, 2012; no monthly payments required; bearing interest at 0.19%; maturing at February 29, 2014 50,000 50,000 Loan Payable - related party (See Note 8) originating February 25, 2012; no monthly payments required; bearing interest at 10% [B] 1,000,000 1,000,000 Total 1,350,000 1,650,000 Less: Current maturities (convertible notes payable) (50,000 ) (50,000 ) Subtotal 1,300,000 1,600,000 Less: amount due after one year for notes payable (1,000,000 ) (1,000,000 ) Amount due after one year for convertible notes payable $ 300,000 $ 600,000 |
Schedule of Future Maturities of Notes Payable | Year ending April 30, 2017 $ 50,000 2018 1,300,000 $ 1,350,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments | Year Ending April 30, 2017 $ 146,401 2018 131,291 2019 134,214 2020 137,137 2021 140,060 2022 11,692 Total minimum payments required $ 700,795 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
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 28,771,757 $ 0.26 4.2 $ 179,791 Granted — — — — Forfeited — — — — Exercised (4,855,487 ) 0.155 — — Expired — — — — Balance Outstanding, April 30, 2016 23,916,270 $ 0.19 3.0 $ 85,978 Exercisable, April 30, 2016 23,916,270 $ 0.19 3.0 $ 85,978 |
Stock Incentive Plan and Stock Option Grants to Employees and Directors [Member] | |
Schedule of Assumptions Used In Valuing Stock Options | April 30, 2016 2015 Expected life (years) 4 - 6.5 3.3 Expected volatility 40.0% 43.0 % 45.0 % Weighted-average volatility 40.0 % 45.0 % Risk-free interest rate 0.38 % 0.38 % Dividend yield 0.00 % 0.00 % Expected forfeiture rate n/a n/a |
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 3.45 103,000 Granted 5,215,000 $ 0.17 5.8 — Exercised — — — — Forfeited (1,490,310 ) $ 0.38 2.6 — Expired — — — — Balance Outstanding, April 30, 2016 17,931,102 $ 0.19 3.3 $ 25,760 Exercisable, April 30, 2016 7,162,464 $ 0.22 1.9 $ 4,333 |
Stock Option Grants To Non-Employees [Member] | |
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 $ 0.3 2.1 $ — Granted — — — — Exercised — — — — Forfeited (25,000 ) $ 0.19 3.0 — Expired — — — — Balance Outstanding, April 30, 2016 195,000 $ 0.29 0.9 — Exercisable, April 30, 2016 195,000 $ 0.29 0.9 — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | For the Years Ended April 30, 2016 2015 Current: Federal $ — $ — State — — — — Deferred: Federal — — State — — — — Total Income tax expense (benefit) $ — $ — |
Schedule of Deferred Income Tax Assets and Liabilities | April 30, 2016 2015 Deferred tax assets: Net operating loss $ 8,271,894 $ 7,487,076 Allowance for doubtful accounts 26,793 21,416 Intangible assets 249,099 304,062 Deferred rent 11,678 2,872 Stock-based compensation 694,900 580,672 Contributions carryforward 93 93 Total deferred tax assets 9,254,457 8,396,191 Deferred tax liabilities: Property and equipment (185,683 ) (155,991 ) Total deferred tax liabilities (185,683 ) (155,991 ) Deferred tax assets, net 9,068,774 8,240,200 Valuation allowance: Beginning of year (8,240,200 ) (6,664,215 ) (Increase) during period (828,574 ) (1,575,985 ) Ending balance (9,068,774 ) (8,240,200 ) Net deferred tax asset $ — $ — |
Schedule of Income Tax Reconciliation | April 30, 2016 2015 Statutory U.S. federal income tax rate 34.0 % 34.0 % State income taxes, net of federal tax benefit 3.0 3.0 Other (0.1 ) (0.1 ) Change in valuation allowance (36.9 ) (36.9 ) Effective income tax rate 0.0 % 0.0 % |
Nature of Operations and Liqu32
Nature of Operations and Liquidity (Narrative) (Details) - USD ($) | Apr. 29, 2015 | Apr. 23, 2015 | Apr. 22, 2016 | Nov. 30, 2015 | Apr. 30, 2015 | Apr. 29, 2015 | Mar. 31, 2014 | Apr. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 |
Product Information [Line Items] | |||||||||||
Approximate cash position | $ 2,159,463 | $ 2,159,463 | $ 783,796 | $ 2,159,463 | $ 247,380 | ||||||
Warrant Conversion/Exercised, shares | 7,079,700 | 7,556,884 | 14,636,582 | 14,636,590 | 14,747,116 | ||||||
Warrant Conversion/Exercised | $ 2,268,670 | $ 2,268,670 | 2,268,670 | $ 804,049 | |||||||
Financing completed | 5,547,826 | ||||||||||
Letter of credit relesed | $ 1,100,000 | ||||||||||
Exercise price of warrants | $ 0.155 | $ 0.155 | |||||||||
Gross proceeds from warrant excercises | 752,500 | 2,268,670 | |||||||||
Conversion of note, amount | $ 302,311 | $ 100,000 | |||||||||
Mr. Michael Mathews [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Shares issued upon conversion | 1,591,053 | ||||||||||
Conversion of note, amount | $ 300,000 | ||||||||||
Warrant [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Shares issued upon conversion | 4,855,487 | ||||||||||
Exercise price of warrants | $ 0.155 | ||||||||||
Gross proceeds from warrant excercises | $ 752,500 | ||||||||||
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 Polici33
Significant Accounting Policies (Schedule of Property and Equipment Useful Lives) (Details) | 12 Months Ended |
Apr. 30, 2016 | |
Call center equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation Term | 5 years |
Computer and office equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation Term | 5 years |
Furniture and fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation Term | 7 years |
Library (online) [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation Term | 3 years |
Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation Term | 5 years |
Significant Accounting Polici34
Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Cash and Cash Equivalents [Line Items] | ||
Cash, FDIC insured amount | $ 250,000 | |
Courseware, expected useful life | 5 years | |
Amount of cash balance uninsured by FDIC | $ 1,224,863 | 2,191,791 |
Restricted cash | 1,122,485 | |
Marketing and promotional costs | 1,856,918 | $ 1,065,812 |
Institution One [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Amount of cash balance uninsured by FDIC | $ 1,224,863 | |
Warrant [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Antidilutive securities | 23,916,272 | 28,871,757 |
Employee Stock Option [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Antidilutive securities | 18,126,102 | 14,426,412 |
Convertible Debt [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Antidilutive securities | 907,143 | 1,207,143 |
Convertible debt | $ 350,000 | $ 650,000 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Receivables [Abstract] | ||
Accounts receivable | $ 2,629,798 | $ 1,337,792 |
Less: Allowance for doubtful accounts | (449,946) | (279,453) |
Accounts receivable, net | 2,179,852 | 1,058,339 |
Bad debt expense | $ 170,677 | $ 156,165 |
Secured Note and Accounts Rec36
Secured Note and Accounts Receivable - Related Parties (Details) - USD ($) | Apr. 29, 2015 | Dec. 31, 2008 | Mar. 31, 2008 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 13, 2012 | Mar. 08, 2012 | Sep. 16, 2011 |
Related Party Transaction [Line Items] | |||||||||||
Price per share | $ 0.155 | $ 0.19 | |||||||||
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 | $ 625,963 | |||||||
Proceeds from issuance of common shares and warrants, net | 101,502 | 5,547,826 | |||||||||
Accounts receivable, before allowance | $ 671,291 | 671,291 | $ 671,291 | ||||||||
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 | ||||||||||
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 | ||||||||||
CEO [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Price per share | $ 0.19 | $ 1 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) | Apr. 30, 2016 | Apr. 30, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,829,319 | $ 2,598,924 |
Less accumulated depreciation and amortization | (1,680,687) | (1,387,876) |
Total property and equipment, net | 1,148,632 | 1,211,048 |
Call center equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 79,199 | 132,798 |
Computer and office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 67,773 | 78,626 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 114,964 | 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 | $ 2,567,383 | $ 2,244,802 |
Property and Equipment (Sched38
Property and Equipment (Schedule of Software, Net) (Details) - USD ($) | Apr. 30, 2016 | Apr. 30, 2015 |
Property, Plant and Equipment [Line Items] | ||
Intangible asset, net | $ 194,932 | $ 173,311 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Intangible asset, gross | 2,567,383 | 2,244,802 |
Accumulated amortization | (1,560,932) | (1,130,453) |
Intangible asset, net | $ 1,006,451 | $ 1,114,349 |
Property and Equipment (Sched39
Property and Equipment (Schedule Of Depreciation And Amortization Expense) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Property and equipment: | ||
Depreciation and Amortization Expense | $ 529,300 | $ 449,173 |
Software Amortization Expense | $ 481,230 | $ 409,630 |
Property and Equipment (Sched40
Property and Equipment (Schedule of Estimated Amortization Expense of Software) (Details) - USD ($) | Apr. 30, 2016 | Apr. 30, 2015 |
Property, Plant and Equipment [Line Items] | ||
Intangible asset, net | $ 194,932 | $ 173,311 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
2,017 | 400,049 | |
2,018 | 267,014 | |
2,019 | 183,840 | |
2,020 | 113,997 | |
2,021 | 41,551 | |
Intangible asset, net | $ 1,006,451 | $ 1,114,349 |
Courseware (Narrative) (Details
Courseware (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Sep. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Fully amortized courseware | $ 1,970,670 | ||
Courseware [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Courseware costs capitalized | $ 90,624 | $ 143,753 | |
Amortization Expense | $ 69,003 | $ 79,323 |
Courseware (Schedule of Coursew
Courseware (Schedule of Courseware, Net) (Details) - USD ($) | Apr. 30, 2016 | Apr. 30, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, net | $ 194,932 | $ 173,311 |
Courseware [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, gross | 319,267 | 2,247,790 |
Accumulated amortization | (124,335) | (2,074,479) |
Intangible asset, net | $ 194,932 | $ 173,311 |
Courseware (Schedule of Estimat
Courseware (Schedule of Estimated Future Amortization Expense) (Details) - USD ($) | Apr. 30, 2016 | Apr. 30, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, net | $ 194,932 | $ 173,311 |
Courseware [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,017 | 57,271 | |
2,018 | 49,182 | |
2,019 | 47,709 | |
2,020 | 33,867 | |
2,021 | 6,903 | |
Intangible asset, net | $ 194,932 | $ 173,311 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) | Apr. 30, 2016 | Apr. 30, 2015 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 91,070 | $ 95,344 |
Accrued Interest | 71,214 | 57,887 |
Other accrued expenses | 14,690 | 20,432 |
Accrued expenses | $ 176,974 | $ 173,663 |
Loan Payable Officer - Relate45
Loan Payable Officer - Related Party (Details) - Loan Payable Officer - Related Party Dated June 28, 2013 [Member] - CEO [Member] - USD ($) | 1 Months Ended | 12 Months Ended |
Jun. 30, 2013 | Apr. 30, 2016 | |
Short-term Debt [Line Items] | ||
Debt instrument, face amount | $ 1,000,000 | |
Term of note | 6 months | |
Interest rate | 10.00% | |
Maturity date | May 31, 2017 |
Convertible Notes, Convertibl46
Convertible Notes, Convertible Notes - Related Party and Debenture Payable (Details) - USD ($) | Dec. 01, 2014 | Sep. 04, 2014 | Aug. 01, 2014 | Feb. 28, 2014 | Apr. 22, 2016 | Sep. 30, 2014 | Jul. 31, 2014 | Sep. 30, 2013 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 29, 2015 | Jan. 15, 2015 | Aug. 14, 2012 | Mar. 13, 2012 | Feb. 29, 2012 |
Debt Instrument [Line Items] | ||||||||||||||||
Repayment of debt | $ 5,838 | |||||||||||||||
Proceeds from convertible debentures | $ 1,639,298 | |||||||||||||||
Warrant value recorded as debt discount | 389,565 | |||||||||||||||
Warrant value recorded as debt issue cost | 94,316 | |||||||||||||||
Debt issuance costs | 48,240 | |||||||||||||||
Exercise price of warrants | $ 0.155 | |||||||||||||||
Loss on Debt Extinguishment | (452,503) | |||||||||||||||
Convertible notes payable outstanding | $ 1,350,000 | $ 1,650,000 | $ 3,562,229 | |||||||||||||
Common Stock [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Shares issued from conversion of convertible debt | 1,591,053 | 526,316 | ||||||||||||||
Exercise price of warrants | $ 0.19 | |||||||||||||||
Warrant [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Exercise price of warrants | $ 0.19 | |||||||||||||||
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) | |||||||||||||||
CEO [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt conversion, price per share | $ 0.19 | |||||||||||||||
Shares issued from conversion of convertible debt | 1,591,053 | |||||||||||||||
Institutional Investor [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate | 8.00% | |||||||||||||||
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 | |||||||||||||||
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 | ||||||||||||||
Convertible Promissory Note Dated February 25, 2012 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate | 3.25% | |||||||||||||||
Debt conversion, price per share | $ 0.19 | |||||||||||||||
Convertible notes payable | $ 50,000 | $ 75,000 | ||||||||||||||
Face value of loan | $ 100,000 | |||||||||||||||
Repayment of debt | $ 25,000 | $ 25,000 | ||||||||||||||
Amount of note converted | 50,000 | |||||||||||||||
Convertible Promissory Note Dated February 27, 2012 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate | 3.25% | |||||||||||||||
Debt conversion, price per share | $ 0.19 | |||||||||||||||
Face value of loan | 50,000 | |||||||||||||||
Amount of note converted | $ 50,000 | |||||||||||||||
Convertible note payable 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 | |||||||||||||||
Convertible note payable - Related Party Dated March 13, 2012 [Member] | CEO [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate | 0.19% | |||||||||||||||
Debt conversion, price per share | $ 1 | |||||||||||||||
Face value of loan | $ 300,000 | |||||||||||||||
Convertible note payable - Related Party Dated August 14, 2012 [Member] | CEO [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate | 5.00% | |||||||||||||||
Debt conversion, price per share | $ 0.35 | |||||||||||||||
Face value of loan | $ 300,000 |
Convertible Notes, Convertibl47
Convertible Notes, Convertible Notes - Related Party and Debenture Payable (Schedule of Convertible Notes Payable) (Details) - USD ($) | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | Feb. 28, 2014 | |
Debt Instrument [Line Items] | |||||
Total | $ 1,350,000 | $ 1,650,000 | $ 3,562,229 | ||
Amount due after one year | 1,300,000 | 1,600,000 | |||
Notes Payable, Other Payables [Member] | |||||
Debt Instrument [Line Items] | |||||
Less: Current maturities | (50,000) | (50,000) | |||
Amount due after one year | (1,000,000) | (1,000,000) | |||
Convertible Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount due after one year | 300,000 | 600,000 | |||
Convertible note payable - Related Party Dated August 14, 2012 [Member] | Notes Payable, Other Payables [Member] | |||||
Debt Instrument [Line Items] | |||||
Total | [1],[2] | $ 300,000 | $ 300,000 | ||
Interest rate | 5.00% | 5.00% | |||
Convertible note payable - Related Party Dated March 13, 2012 [Member] | Notes Payable, Other Payables [Member] | |||||
Debt Instrument [Line Items] | |||||
Total | [1],[2],[3] | $ 300,000 | |||
Interest rate | 0.19% | 0.19% | |||
Convertible note payable Dated February 29, 2012 [Member] | Notes Payable, Other Payables [Member] | |||||
Debt Instrument [Line Items] | |||||
Total | $ 50,000 | $ 50,000 | |||
Interest rate | 0.19% | 0.19% | |||
Convertible Promissory Note Dated February 25, 2012 [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.25% | ||||
Convertible Promissory Note Dated February 25, 2012 [Member] | Notes Payable, Other Payables [Member] | |||||
Debt Instrument [Line Items] | |||||
Total | [1] | $ 1,000,000 | $ 1,000,000 | ||
Interest rate | 10.00% | 10.00% | |||
[1] | Effective March 4, 2015, the note was amended to provide a maturity date of July 31, 2016. On March 3, 2016, note amended to provide a maturity date of May 31, 2017. | ||||
[2] | Effective September 4, 2012, note amended to provide a maturity date of August 31, 2013. Effective December 17, 2012, note further amended to provide a maturity date of August 31, 2014. On September 25, 2013, maturity date had been extended to April 5, 2015. On July 16, 2014, the maturity date had been extended to January 1, 2016. | ||||
[3] | Effective April 22, 2016, this note and its accrued interest was converted to 1,591,053 shares of common stock. |
Convertible Notes, Convertibl48
Convertible Notes, Convertible Notes - Related Party and Debenture Payable (Schedule of Future Maturities of Notes Payable) (Details) - USD ($) | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 |
Debt Disclosure [Abstract] | |||
2,017 | $ 50,000 | ||
2,018 | 1,300,000 | ||
Total | $ 1,350,000 | $ 1,650,000 | $ 3,562,229 |
Commitments and Contingencies49
Commitments and Contingencies (Narrative) (Details) | Feb. 20, 2015USD ($) | Nov. 30, 2013USD ($) | Apr. 30, 2016USD ($) | Apr. 30, 2016CAD | Apr. 30, 2015USD ($) | Feb. 26, 2015USD ($) | Jan. 31, 2014USD ($) | Feb. 28, 2013USD ($) |
Line of Credit Facility [Line Items] | ||||||||
Line of credit, outstanding | $ 1,783 | $ 243,989 | ||||||
Loss Contingency, Damages Sought, Value | $ 772,793 | |||||||
Rent expense | 239,658 | $ 213,225 | ||||||
Remittance of Title IV funds to the Department of Education due to students ineligibility to receive the funds | $ 102,810 | |||||||
Possible estimated loss due to unauthorized borrowing | $ 2,200,000 | |||||||
Accrued expenses | 87,500 | |||||||
Phoenix, Arizona [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Monthly rent payments | $ 10,718 | |||||||
Lease term | 64 months | 64 months | ||||||
Monthly rent annual escalation rate | 2.00% | 2.00% | ||||||
New York, New York [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Monthly rent payments | $ 7,667 | |||||||
Lease term | 18 months | 18 months | ||||||
Dieppe, NB, Canada [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Monthly rent payments | $ 1,600 | |||||||
Lease term | 1 year | 1 year | ||||||
Dieppe, NB, Canada [Member] | Canadian Dollars [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Monthly rent payments | CAD | CAD 2,049 | |||||||
Denver, Colorado [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Monthly rent payments | $ 7,127 | |||||||
Lease term | 1 year | 1 year | ||||||
Lease expiration date | Aug. 31, 2017 | Aug. 31, 2017 | ||||||
Government Contracts Concentration Risk [Member] | Cash Basis Revenues, Including Revenues From Discontinued Operations [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Title IV Funds received as a percentage of revenue | 28.00% | 28.00% | ||||||
Line of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit, maximum borrowing capacity | $ 250,000 | |||||||
Prime rate spread | 0.50% | 0.50% | ||||||
Line of credit, interest rate at period end | 4.00% | |||||||
Payment period | 5 years | 5 years | ||||||
Line of credit, outstanding | $ 1,783 | |||||||
Line of credit, remaining available | $ 248,217 | |||||||
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 |
Commitments and Contingencies50
Commitments and Contingencies (Schedule of Future Minimum Rental Payments) (Details) | Apr. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 146,401 |
2,018 | 131,291 |
2,019 | 134,214 |
2,020 | 137,137 |
2,021 | 140,060 |
2,022 | 11,692 |
Total minimum payments required | $ 700,795 |
Stockholders' Equity (Deficienc
Stockholders' Equity (Deficiency) (Common Stock and Warrants Narrative) (Details) - USD ($) | Jun. 08, 2015 | Apr. 29, 2015 | Apr. 23, 2015 | Jan. 15, 2015 | Jan. 14, 2015 | Dec. 01, 2014 | Sep. 04, 2014 | Jun. 24, 2014 | Jun. 04, 2014 | Apr. 22, 2016 | Jan. 19, 2016 | Apr. 30, 2015 | Apr. 29, 2015 | Sep. 30, 2014 | Jul. 31, 2014 | Jun. 24, 2014 | Sep. 30, 2013 | Apr. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 13, 2012 | Mar. 08, 2012 |
Stockholders Equity [Line Items] | |||||||||||||||||||||||||
Common stock, shares authorized | 250,000,000 | 120,000,000 | 250,000,000 | 250,000,000 | 250,000,000 | 250,000,000 | |||||||||||||||||||
Issuance of common shares for cash | $ 50,000 | $ 5,547,826 | $ 750,000 | ||||||||||||||||||||||
Issuance of common shares for cash, shares | 263,158 | ||||||||||||||||||||||||
Exercise price of warrants | $ 0.155 | $ 0.155 | |||||||||||||||||||||||
Price per share | $ 0.155 | $ 0.155 | $ 0.19 | ||||||||||||||||||||||
Shares repurchased and retired | $ 5,838 | ||||||||||||||||||||||||
Issuance of common shares for services rendered | $ 37,626 | $ 32,632 | 50,400 | 70,258 | $ 216,000 | ||||||||||||||||||||
Issuance of common shares for services rendered, shares | 208,333 | ||||||||||||||||||||||||
Warrant Conversion/Exercised, shares | 7,079,700 | 7,556,884 | 14,636,582 | 14,636,590 | 14,747,116 | ||||||||||||||||||||
Warrant Conversion/Exercised | $ 2,268,670 | $ 2,268,670 | 2,268,670 | 804,049 | |||||||||||||||||||||
Warrant Modification Expense | $ 156,952 | $ 48,555 | 54,554 | $ 333,323 | 156,952 | ||||||||||||||||||||
Repurchase of shares under settlement agreement | $ 29,500 | $ (5,838) | |||||||||||||||||||||||
Repurchase of shares under settlement agreement, shares | 42,000 | ||||||||||||||||||||||||
Expenses for settlement | $ 23,662 | ||||||||||||||||||||||||
Common stock, shares issued | 128,253,605 | 128,253,605 | 135,158,145 | 128,253,605 | |||||||||||||||||||||
Proceeds from warrant exercise | $ 752,500 | $ 2,268,670 | |||||||||||||||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||||||||||||
Stock units granted | 300,000 | ||||||||||||||||||||||||
Fair value of grant | $ 50,400 | ||||||||||||||||||||||||
Vesting-period | 6 months | ||||||||||||||||||||||||
Allocated Share-based Compensation Expense | $ 50,400 | ||||||||||||||||||||||||
Firm One [Member] | |||||||||||||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||||||||||||
Price per share | $ 0.35 | ||||||||||||||||||||||||
Equity Issuance Transaction One [Member] | |||||||||||||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||||||||||||
Exercise price of warrants | $ 0.50 | ||||||||||||||||||||||||
Equity Issuance Transaction Two [Member] | |||||||||||||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||||||||||||
Exercise price of warrants | 0.3325 | ||||||||||||||||||||||||
Director [Member] | |||||||||||||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||||||||||||
Issuance of common shares for cash | $ 50,000 | ||||||||||||||||||||||||
Institutional Investor [Member] | |||||||||||||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||||||||||||
Amount of note converted | $ 100,000 | ||||||||||||||||||||||||
Conversion of convertible debt into shares, shares | 6,736,842 | ||||||||||||||||||||||||
Debt conversion, price per share | $ 0.19 | $ 0.155 | $ 0.3325 | ||||||||||||||||||||||
Issuance of common shares for cash | $ 3,766,326 | $ 1,631,500 | |||||||||||||||||||||||
Offering costs | $ 75,000 | ||||||||||||||||||||||||
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] | |||||||||||||||||||||||||
Conversion of convertible debt into shares, shares | 263,158 | ||||||||||||||||||||||||
Institutional Investor [Member] | Equity Issuance Transaction Two [Member] | |||||||||||||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||||||||||||
Conversion of convertible debt into shares, shares | 263,158 | ||||||||||||||||||||||||
CEO [Member] | |||||||||||||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||||||||||||
Conversion of convertible debt into shares, shares | 1,591,053 | ||||||||||||||||||||||||
Debt conversion, price per share | $ 0.19 | ||||||||||||||||||||||||
Issuance of common shares for cash | $ 50,000 | ||||||||||||||||||||||||
Price per share | $ 0.19 | $ 1 | |||||||||||||||||||||||
Warrants exercised | $ 300,000 | ||||||||||||||||||||||||
Third Party [Member] | |||||||||||||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||||||||||||
Price per share | $ 0.50 | ||||||||||||||||||||||||
Hillair Capital Investments Lp [Member] | |||||||||||||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||||||||||||
Accrued interest settled | $ 70,000 | ||||||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||||||||||||
Conversion of convertible debt into shares, shares | 1,591,053 | 526,316 | |||||||||||||||||||||||
Issuance of common shares for cash | $ 35,615 | $ 3,947 | |||||||||||||||||||||||
Issuance of common shares for cash, shares | 35,614,154 | 3,947,371 | |||||||||||||||||||||||
Exercise price of warrants | $ 0.19 | ||||||||||||||||||||||||
Shares issued for price protection, shares | 3,532,682 | ||||||||||||||||||||||||
Price per share | $ 0.155 | ||||||||||||||||||||||||
Shares repurchased and retired, shares | 42,000 | ||||||||||||||||||||||||
Shares repurchased and retired | $ 42 | ||||||||||||||||||||||||
Issuance of common shares for services rendered | $ 300 | $ 419 | $ 617 | ||||||||||||||||||||||
Issuance of common shares for services rendered, shares | 210,526 | 300,000 | 418,859 | 617,143 | |||||||||||||||||||||
Warrant Conversion/Exercised, shares | 110,526 | 14,747,116 | |||||||||||||||||||||||
Warrant Conversion/Exercised | $ 14,748 | ||||||||||||||||||||||||
Warrant Modification Expense | |||||||||||||||||||||||||
Common stock, shares issued | 4,855,487 | ||||||||||||||||||||||||
Reduced Exercise price | $ 0.155 | ||||||||||||||||||||||||
Common Stock [Member] | Director [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 | 24,298,871 | 10,525,809 | |||||||||||||||||||||||
Shares issued for price protection, shares | 59,423 | 3,473,259 | |||||||||||||||||||||||
Common Stock [Member] | CEO [Member] | |||||||||||||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||||||||||||
Issuance of common shares for cash, shares | 263,158 | ||||||||||||||||||||||||
Accumulated Deficit [Member] | |||||||||||||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||||||||||||
Issuance of common shares for cash | |||||||||||||||||||||||||
Shares repurchased and retired | |||||||||||||||||||||||||
Issuance of common shares for services rendered | |||||||||||||||||||||||||
Warrant Conversion/Exercised | |||||||||||||||||||||||||
Warrant Modification Expense | |||||||||||||||||||||||||
Additional Paid-In Capital [Member] | |||||||||||||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||||||||||||
Issuance of common shares for cash | 5,512,211 | $ 746,053 | |||||||||||||||||||||||
Shares repurchased and retired | 5,796 | ||||||||||||||||||||||||
Issuance of common shares for services rendered | 50,100 | 69,839 | 215,383 | ||||||||||||||||||||||
Warrant Conversion/Exercised | 2,253,922 | 797,043 | |||||||||||||||||||||||
Warrant Modification Expense | 54,554 | 333,323 | $ 156,952 | ||||||||||||||||||||||
Treasury Stock [Member] | |||||||||||||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||||||||||||
Issuance of common shares for cash | |||||||||||||||||||||||||
Shares repurchased and retired | |||||||||||||||||||||||||
Issuance of common shares for services rendered | |||||||||||||||||||||||||
Warrant Conversion/Exercised | |||||||||||||||||||||||||
Warrant Modification Expense | |||||||||||||||||||||||||
Warrant [Member] | |||||||||||||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||||||||||||
Issuance of common shares for cash, shares | 263,158 | ||||||||||||||||||||||||
Exercise price of warrants | $ 0.19 | ||||||||||||||||||||||||
Shares issued for price protection, shares | 5,178,947 | ||||||||||||||||||||||||
Price per share | $ 0.19 | ||||||||||||||||||||||||
Warrant Conversion/Exercised, shares | (600,000) | (4,231,840) | |||||||||||||||||||||||
Warrant [Member] | Director [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 | 12,149,438 | 5,262,907 | |||||||||||||||||||||||
Option expiration period | 5 years | 5 years | |||||||||||||||||||||||
Shares issued for price protection, shares | 2,662,139 | ||||||||||||||||||||||||
Warrant [Member] | CEO [Member] | |||||||||||||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||||||||||||
Issuance of common shares for cash, shares | 263,158 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Warrants) (Details) - Warrant [Member] - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Number of Shares | ||
Balance Outstanding | 28,771,757 | |
Granted | ||
Forfeited | ||
Exercised | (4,855,487) | |
Expired | ||
Balance Outstanding | 23,916,270 | 28,771,757 |
Exercisable | 23,916,270 | |
Weighted Average Exercise Price | ||
Balance Outstanding | $ 0.26 | |
Granted | ||
Forfeited | ||
Exercised | 0.155 | |
Expired | ||
Balance Outstanding | 0.19 | $ 0.26 |
Exercisable | $ 0.19 | |
Weighted Average Remaining Contractual Term | ||
Balance Outstanding | 3 years | 4 years 2 months 12 days |
Exercisable | 3 years | |
Aggregate Intrinsic Value | ||
Balance Outstanding, beginning balance | $ 179,791 | |
Balance Outstanding | 85,978 | $ 179,791 |
Exercisable | $ 85,978 |
Stockholders' Equity (Stock Opt
Stockholders' Equity (Stock Options Narrative) (Details) | Dec. 11, 2015USD ($)$ / sharesshares | Nov. 20, 2015USD ($)$ / sharesshares | Sep. 23, 2015USD ($)Item$ / sharesshares | Aug. 05, 2015USD ($)$ / sharesshares | Jun. 08, 2015USD ($)$ / sharesshares | Dec. 11, 2014USD ($)Item$ / sharesshares | Nov. 24, 2014USD ($)$ / sharesshares | Sep. 16, 2014USD ($)Item$ / sharesshares | Sep. 04, 2014USD ($)$ / sharesshares | Apr. 30, 2016USD ($)shares | Apr. 30, 2015USD ($) | Nov. 30, 2015shares | Sep. 30, 2014shares | Jul. 31, 2014shares | Mar. 13, 2012shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Options granted, exercise price | $ / shares | $ 0.168 | ||||||||||||||
Share based compensation expense | $ 308,260 | $ 456,871 | |||||||||||||
Director [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock options issued during period | shares | 100,000 | 200,000 | |||||||||||||
Number of directors to whom stock option granted | Item | 2 | ||||||||||||||
Number of employee to whom stock option granted | Item | 8 | ||||||||||||||
Options granted, exercise price | $ / shares | $ 0.2026 | $ 0.20 | |||||||||||||
Fair value of stock options granted | $ 7,000 | $ 12,000 | |||||||||||||
CEO and the Board of Directors [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock options issued during period | shares | 2,600,000 | ||||||||||||||
Options granted, exercise price | $ / shares | $ 0.155 | ||||||||||||||
Fair value of stock options granted | $ 130,000 | ||||||||||||||
CFO [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock options issued during period | shares | 300,000 | ||||||||||||||
Options granted, exercise price | $ / shares | $ 0.234 | ||||||||||||||
Fair value of stock options granted | $ 21,000 | ||||||||||||||
2012 Equity Incentive Plan [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Equity Incentive Plan, shares authorized | shares | 20,300,000 | 16,300,000 | 14,300,000 | 9,300,000 | |||||||||||
Equity Incentive Plan, shares remaining | shares | 2,173,898 | ||||||||||||||
CEO [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Fair value of grants | $ 105,000 | ||||||||||||||
Vesting period | 3 years | ||||||||||||||
Options granted, exercise price | $ / shares | $ 0.175 | ||||||||||||||
Weighted average recognition period | 10 years | ||||||||||||||
Options granted | shares | 1,500,000 | ||||||||||||||
Director [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock options issued during period | shares | 250,000 | ||||||||||||||
Number of directors to whom stock option granted | 3 | ||||||||||||||
Fair value of grants | $ 37,500 | ||||||||||||||
Vesting period | 3 years | ||||||||||||||
Options granted, exercise price | $ / shares | $ 0.165 | ||||||||||||||
Options granted | shares | 750,000 | ||||||||||||||
Employee [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock options issued during period | shares | 465,000 | ||||||||||||||
Number of employee to whom stock option granted | Item | 39 | ||||||||||||||
Fair value of grants | $ 48,600 | ||||||||||||||
Vesting period | 3 years | ||||||||||||||
Options granted, exercise price | $ / shares | $ 0.131 | ||||||||||||||
Unrecognized compensation cost | $ 437,000 | ||||||||||||||
Weighted average recognition period | 2 years 8 months 12 days | ||||||||||||||
Vice President [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock options issued during period | shares | 500,000 | ||||||||||||||
Fair value of grants | $ 30,000 | ||||||||||||||
Vesting period | 3 years | ||||||||||||||
Options granted, exercise price | $ / shares | $ 0.18 | ||||||||||||||
CFO [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock options issued during period | shares | 300,000 | ||||||||||||||
Fair value of grants | $ 18,000 | ||||||||||||||
Chief Operating Officer [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock options issued during period | shares | 700,000 | ||||||||||||||
Fair value of grants | $ 42,000 | ||||||||||||||
Chief Academic Officer [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock options issued during period | shares | 1,000,000 | ||||||||||||||
Fair value of grants | $ 60,000 | ||||||||||||||
Non-employee [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Unrecognized compensation cost | |||||||||||||||
Share based compensation expense | $ 748 |
Stockholders' Equity (Deficie54
Stockholders' Equity (Deficiency) (Schedule of Assumptions Used to Value Stock Options) (Details) - Stock Incentive Plan and Stock Option Grants to Employees and Directors [Member] | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 3 years 3 months 18 days | |
Expected volatility | 45.00% | |
Expected volatility, minimum | 40.00% | |
Expected volatility, maximum | 43.00% | |
Weighted-average volatility | 40.00% | 45.00% |
Risk-free interest rate | 0.38% | 0.38% |
Dividend yield | 0.00% | 0.00% |
Expected forfeiture rate | ||
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 4 years | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 6 years 6 months |
Stockholders' Equity (Schedul55
Stockholders' Equity (Schedule of Stock Options Activity) (Details) - USD ($) | Jun. 08, 2015 | Apr. 30, 2016 | Apr. 30, 2015 |
Weighted Average Exercise Price | |||
Weighted average exercise price of options granted | $ 0.168 | ||
Stock Incentive Plan and Stock Option Grants to Employees and Directors [Member] | |||
Number of Shares | |||
Balance Outstanding | 14,206,412 | ||
Granted | 5,215,000 | ||
Exercised | |||
Forfeited | (1,490,310) | ||
Expired | |||
Balance Outstanding | 17,931,102 | 14,206,412 | |
Exercisable | 7,162,464 | ||
Weighted Average Exercise Price | |||
Balance Outstanding | $ 0.21 | ||
Weighted average exercise price of options granted | 0.17 | ||
Exercised | |||
Forfeited | 0.38 | ||
Expired | |||
Balance Outstanding | 0.19 | $ 0.21 | |
Exercisable | $ 0.22 | ||
Weighted Average Remaining Contractual Term | |||
Balance Outstanding | 3 years 3 months 18 days | 3 years 5 months 12 days | |
Granted | 5 years 9 months 18 days | ||
Forfeited | 2 years 7 months 6 days | ||
Exercisable | 1 year 10 months 24 days | ||
Aggregate Intrinsic Value | |||
Balance Outstanding | $ 103,000 | ||
Granted | |||
Forfeited | |||
Balance Outstanding | 25,760 | $ 103,000 | |
Exercisable | $ 4,333 | ||
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 | $ 0.3 | ||
Weighted average exercise price of options granted | |||
Exercised | |||
Forfeited | 0.19 | ||
Expired | |||
Balance Outstanding | 0.29 | $ 0.3 | |
Exercisable | $ 0.29 | ||
Weighted Average Remaining Contractual Term | |||
Balance Outstanding | 10 months 24 days | 2 years 1 month 6 days | |
Forfeited | 3 years | ||
Exercisable | 10 months 24 days | ||
Aggregate Intrinsic Value | |||
Balance Outstanding | |||
Granted | |||
Forfeited | |||
Balance Outstanding | |||
Exercisable |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 22,322,804 | |
Net change in the valuation allowance | $ 828,574 | $ 1,575,985 |
Earliest Tax Year [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards, expiration | Dec. 31, 2031 | |
Years under examination | 2,012 | |
Latest Tax Year [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards, expiration | Dec. 31, 2036 | |
Years under examination | 2,015 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Tax Expense (Benefit)) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Current: | ||
Federal | ||
State | ||
Total Current Income tax expense (benefit) | ||
Deferred: | ||
Federal | ||
State | ||
Total Deferred Income tax expense (benefit) | ||
Total Income tax expense (benefit) |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Defered Income Tax Assets and Liabilities) (Details) - USD ($) | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 |
Deferred tax assets: | |||
Net operating loss | $ 8,271,894 | $ 7,487,076 | |
Allowance for doubtful accounts | 26,793 | 21,416 | |
Intangible assets | 249,099 | 304,062 | |
Deferred rent | 11,678 | 2,872 | |
Stock-based compensation | 694,900 | 580,672 | |
Contributions carryforward | 93 | 93 | |
Total deferred tax assets | 9,254,457 | 8,396,191 | |
Deferred tax liabilities: | |||
Property and equipment | (185,683) | (155,991) | |
Total deferred tax liabilities | (185,683) | (155,991) | |
Deferred tax assets, net | 9,068,774 | 8,240,200 | |
Valuation allowance: | |||
Valuation allowance | (9,068,774) | (8,240,200) | $ (6,664,215) |
Net deferred tax asset |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Asset Valuation Allowance Rollforward) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Valuation allowance, beginning of year | $ (8,240,200) | $ (6,664,215) |
(Increase) during period | (828,574) | (1,575,985) |
Valuation allowance, ending balance | $ (9,068,774) | $ (8,240,200) |
Income Taxes (Schedule of Inc60
Income Taxes (Schedule of Income Tax Reconciliation) (Details) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Statutory U.S. federal income tax rate | 34.00% | 34.00% |
State income taxes, net of federal tax benefit | 3.00% | 3.00% |
Other | (0.10%) | (0.10%) |
Change in valuation allowance | (36.90%) | (36.90%) |
Effective income tax rate | 0.00% | 0.00% |
Concentrations (Details)
Concentrations (Details) - USD ($) | Apr. 30, 2016 | Apr. 30, 2015 |
Risks and Uncertainties [Abstract] | ||
Amount of cash balance uninsured by FDIC | $ 1,224,863 | $ 2,191,791 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Nov. 20, 2015 | Jun. 08, 2015 | Jul. 31, 2016 | Jun. 24, 2016 | Jun. 23, 2016 | May 19, 2016 | Apr. 30, 2016 | Apr. 30, 2015 | Sep. 30, 2014 | Apr. 30, 2014 |
Subsequent Event [Line Items] | ||||||||||
Weighted average exercise price of options granted | $ 0.168 | |||||||||
Common stock, shares authorized | 250,000,000 | 250,000,000 | 120,000,000 | 250,000,000 | ||||||
Common stock, shares issued | 135,158,145 | 128,253,605 | ||||||||
Director [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock options issued during period | 250,000 | |||||||||
Weighted average exercise price of options granted | $ 0.165 | |||||||||
Vesting period | 3 years | |||||||||
Fair value of grant | $ 37,500 | |||||||||
Chief Operating Officer [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock options issued during period | 700,000 | |||||||||
Fair value of grant | $ 42,000 | |||||||||
Chief Academic Officer [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock options issued during period | 1,000,000 | |||||||||
Fair value of grant | $ 60,000 | |||||||||
Chief Financial Officer [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock options issued during period | 300,000 | |||||||||
Fair value of grant | $ 18,000 | |||||||||
Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Options Term | 5 years | |||||||||
Weighted average exercise price of options granted | $ 0.166 | |||||||||
Vesting period | 3 years | |||||||||
Subsequent Event [Member] | Restricted Stock [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Amortization | $ 75,000 | |||||||||
Grant date fair value | $ 0.15 | |||||||||
Subsequent Event [Member] | Former Institutional Investor [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Weighted average exercise price of options granted | $ 0.155 | |||||||||
Fair value of grant | $ 400,000 | |||||||||
Number of warrants surrender | 13,451,613 | |||||||||
Payment for exchange of warrants surrender | $ 400,000 | |||||||||
Grant date fair value | $ 0.16 | |||||||||
Subsequent Event [Member] | Investor One [Member] | Restricted Stock [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock options issued during period | 2,500,000 | |||||||||
Agreement Term | 6 months | |||||||||
Subsequent Event [Member] | Investor Two [Member] | Restricted Stock [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock options issued during period | 500,000 | |||||||||
Agreement Term | 12 months | |||||||||
Subsequent Event [Member] | 2012 Equity Incentive Plan [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Increased number of authorized shares | 5,000,000 | |||||||||
Common stock, shares authorized | 25,300,000 | |||||||||
Subsequent Event [Member] | Non-employee Directors [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock options issued during period | 150,000 | |||||||||
Options Term | 5 years | |||||||||
Weighted average exercise price of options granted | $ 0.16 | |||||||||
Vesting period | 3 years | |||||||||
Subsequent Event [Member] | Chairman of Compensation Committee [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock options issued during period | 50,000 | |||||||||
Options Term | 5 years | |||||||||
Weighted average exercise price of options granted | $ 0.16 | |||||||||
Vesting period | 3 years | |||||||||
Subsequent Event [Member] | Chairman of Audit Committee [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock options issued during period | 50,000 | |||||||||
Options Term | 5 years | |||||||||
Weighted average exercise price of options granted | $ 0.16 | |||||||||
Vesting period | 3 years | |||||||||
Subsequent Event [Member] | Director [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock units granted | 150,000 | |||||||||
Fair value of grant | $ 7,500 | |||||||||
Subsequent Event [Member] | Two Directors [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock units granted | 200,000 | |||||||||
Fair value of grant | $ 10,000 | |||||||||
Subsequent Event [Member] | Chief Operating Officer [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock options issued during period | 2,000,000 | |||||||||
Fair value of grant | $ 100,000 | |||||||||
Increased salary amount | $ 240,000 | |||||||||
Subsequent Event [Member] | Chief Academic Officer [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock options issued during period | 700,000 | |||||||||
Fair value of grant | $ 35,000 | |||||||||
Subsequent Event [Member] | Chief Financial Officer [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock options issued during period | 300,000 | |||||||||
Fair value of grant | $ 15,000 | |||||||||
Increased salary amount | $ 220,000 |