Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | Jul. 24, 2017 | Oct. 31, 2016 | |
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, 2017 | ||
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 | $ 30.4 | ||
Entity Common Stock, Shares Outstanding | 13,612,354 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,017 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Apr. 30, 2017 | Apr. 30, 2016 |
Current assets: | ||
Cash | $ 2,756,217 | $ 783,796 |
Accounts receivable, net of allowance of $328,864 and $449,946, respectively | 4,434,862 | 2,051,934 |
Prepaid expenses | 133,531 | 123,055 |
Promissory note receivable | 900,000 | |
Other receivables | 81,464 | 819 |
Accrued interest receivable | 8,000 | |
Total current assets | 8,314,074 | 2,959,604 |
Property and equipment: | ||
Call center equipment | 53,748 | 79,199 |
Computer and office equipment | 103,649 | 67,773 |
Furniture and fixtures | 255,984 | 114,964 |
Software | 2,131,344 | 2,567,383 |
Total | 2,544,725 | 2,829,319 |
Less accumulated depreciation and amortization | (1,090,010) | (1,680,687) |
Total property and equipment, net | 1,454,715 | 1,148,632 |
Courseware, net | 145,477 | 194,932 |
Accounts receivable, secured - related party, net of allowance of $625,963, and $625,963, respectively | 45,329 | 45,329 |
Long term accounts receivable | 657,542 | 127,099 |
Other assets | 56,417 | 31,175 |
Total assets | 10,673,554 | 4,506,771 |
Current liabilities: | ||
Accounts payable | 756,701 | 9,201 |
Accrued expenses | 262,911 | 176,974 |
Deferred revenue | 1,354,989 | 1,013,434 |
Refunds due students | 310,576 | 110,883 |
Deferred rent, current portion | 11,200 | 2,345 |
Convertible notes payable, current portion | 50,000 | 50,000 |
Total current liabilities | 2,746,377 | 1,362,837 |
Bank line of credit | 1,783 | |
Loan payable officer - related party | 1,000,000 | |
Convertible notes payable - related party | 300,000 | |
Warrant derivative liability | 52,500 | |
Deferred rent | 34,437 | 29,169 |
Total liabilities | 2,833,314 | 2,693,789 |
Commitments and contingencies - See Note 10 | ||
Stockholders' equity: | ||
Common stock, $0.001 par value; 250,000,000 shares authorized, 13,520,679 issued and 13,504,012 outstanding at April 30, 2017, 11,263,179 issued and 11,246,512 outstanding at April 30, 2016 | 13,504 | 11,247 |
Additional paid-in capital | 33,607,423 | 26,477,162 |
Treasury stock (16,667 shares) | (70,000) | (70,000) |
Accumulated deficit | (25,710,687) | (24,605,427) |
Total stockholders' equity | 7,840,240 | 1,812,982 |
Total liabilities and stockholders' equity | $ 10,673,554 | $ 4,506,771 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Apr. 30, 2017 | Apr. 30, 2016 |
Assets | ||
Allowance for doubtful accounts, current accounts receivables | $ 328,864 | $ 449,946 |
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 | 13,520,679 | 11,263,179 |
Common stock, shares outstanding | 13,504,012 | 11,246,512 |
Treasury stock, shares | 16,667 | 16,667 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Income Statement [Abstract] | ||
Revenues | $ 14,246,696 | $ 8,453,669 |
Operating expenses | ||
Cost of revenues (exclusive of depreciation and amortization shown separately below) | 5,061,222 | 3,587,028 |
General and administrative | 9,087,740 | 6,403,708 |
Program review settlement expense | 323,090 | |
Depreciation and amortization | 556,730 | 598,303 |
Total operating expenses | 15,028,782 | 10,589,039 |
Operating loss | (782,086) | (2,135,370) |
Other income (expense): | ||
Other income | 14,336 | 9,985 |
Interest expense | (337,510) | (121,320) |
Total other expense, net | (323,174) | (111,335) |
Loss before income taxes | (1,105,260) | (2,246,705) |
Income tax expense (benefit) | ||
Net loss | $ (1,105,260) | $ (2,246,705) |
Net loss per share allocable to common stockholders basic and diluted | $ (0.10) | $ (0.21) |
Weighted average number of common shares outstanding: basic and diluted | 11,558,112 | 10,703,733 |
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, 2015 | $ 10,688 | $ 25,016,213 | $ (70,000) | $ (22,358,722) | $ 2,598,179 |
Balance, shares at Apr. 30, 2015 | 10,687,800 | ||||
Offering cost for professional services from private placement | (679) | (679) | |||
Stock-based compensation | 308,260 | 308,260 | |||
Conversion of convertible debt into shares | $ 133 | 302,178 | 302,311 | ||
Conversion of convertible debt into shares, shares | 132,588 | ||||
Repurchase of shares under settlement agreement | $ (4) | (5,834) | (5,838) | ||
Repurchase of shares under settlement agreement, shares | (3,500) | ||||
Shares issued for services rendered | $ 25 | 50,375 | 50,400 | ||
Shares issued for services rendered, shares | 25,000 | ||||
Warrants exercised for cash | $ 405 | 752,095 | 752,500 | ||
Warrants exercised for cash, shares | 404,624 | ||||
Warrant modification | 54,554 | 54,554 | |||
Net loss | (2,246,705) | (2,246,705) | |||
Balance at Apr. 30, 2016 | $ 11,247 | 26,477,162 | (70,000) | (24,605,427) | 1,812,982 |
Balance, shares at Apr. 30, 2016 | 11,246,512 | ||||
Attorney fees associated with Registration Statement | (4,017) | (4,017) | |||
Shares issued for cash | $ 2,000 | 7,498,000 | 7,500,000 | ||
Shares issued for cash, shares | 2,000,000 | ||||
Fees associated with equity raise | (560,261) | (560,261) | |||
Stock-based compensation | 338,294 | 338,294 | |||
Warrant buyback | $ 208 | (194,208) | (194,000) | ||
Warrant buyback, shares | 208,333 | ||||
Shares issued for services rendered | $ 49 | 52,453 | 52,502 | ||
Shares issued for services rendered, shares | 49,167 | ||||
Net loss | (1,105,260) | (1,105,260) | |||
Balance at Apr. 30, 2017 | $ 13,504 | $ 33,607,423 | $ (70,000) | $ (25,710,687) | $ 7,840,240 |
Balance, shares at Apr. 30, 2017 | 13,504,012 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (1,105,260) | $ (2,246,705) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Bad debt expense | 44,320 | 170,677 |
Depreciation and amortization | 556,730 | 598,303 |
Stock-based compensation | 338,294 | 308,260 |
Warrant modification expense | 54,554 | |
Amortization and write-off of origination fees | 112,500 | |
Amortization of prepaid shares for services | 52,500 | |
Warrant buyback expense | 206,000 | |
Common shares and warrants issued for services rendered | 50,400 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,974,073) | (1,292,190) |
Other receivables | (64,263) | |
Prepaid expenses | (10,474) | (1,462) |
Accrued interest receivable | (8,000) | |
Other assets | (25,242) | (4,496) |
Accounts payable | 747,500 | (169,908) |
Accrued expenses | 85,937 | 5,624 |
Deferred rent | 14,123 | 23,763 |
Refunds due students | 199,693 | (169,856) |
Deferred revenue | 341,555 | 228,615 |
Net cash used in operating activities | (1,488,160) | (2,444,421) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (804,558) | (466,884) |
Purchases of courseware | (8,800) | (90,624) |
Issuance of note receivable | (900,000) | |
Increase in restricted cash | 1,122,485 | |
Net cash provided by (used in) investing activities | (1,713,358) | 564,977 |
Cash flows from financing activities: | ||
Retirement of shares | (5,838) | |
Proceeds of warrant exercise | 752,500 | |
Repayment of convertible note payable - related party | (300,000) | |
Repayment of loan payable - officer - related party | (1,000,000) | |
Proceeds from equity raise | 7,500,000 | |
Disbursements related to equity raise | (560,261) | |
Warrant buyback | (400,000) | |
Borrowing of bank line of credit | 247,000 | |
Payments for bank line of credit | (248,783) | (242,206) |
Borrowing of third party line of credit | 2,150,000 | |
Payments to third party line of credit | (2,150,000) | |
Third party line of credit financing costs | (60,000) | |
Disbursements for registration statement | (4,017) | (679) |
Net cash provided by financing activities | 5,173,939 | 503,777 |
Net increase (decrease) in cash | 1,972,421 | (1,375,667) |
Cash at beginning of year | 783,796 | 2,159,463 |
Cash at end of year | 2,756,217 | 783,796 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 297,151 | 104,326 |
Cash paid for income taxes | ||
Supplemental disclosure of non-cash investing and financing activities | ||
Common stock issued for services | 52,502 | 50,400 |
Warrant derivative liability | 52,500 | |
Common stock issued from conversion of notes | $ 302,311 |
Nature of Operations and Liquid
Nature of Operations and Liquidity | 12 Months Ended |
Apr. 30, 2017 | |
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. (“Aspen University”) was organized in 1987. 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 - 54% 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 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 their tuition at $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/month for 72 months ($27,000), interest free, thereby giving students a monthly payment tuition payment option versus taking out a federal financial aid loan. 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, 2017, the Company had a cash balance of $2,756,217 . On April 22, 2016, the Company issued 404,624 shares of common stock to two of its warrant holders in exchange for their early exercise of warrants at a reduced exercise price of $1.86 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 132,588 shares of common stock. (See Note 11) In August 2016, the Company closed on a $3 million credit line with its largest shareholder. The credit line, whose terms include a 12% per annum interest rate on drawn funds and a 2% per annum interest rate on undrawn funds, will extend through August 2019. The Company initially drew down $750,000 under the line, of which approximately $248,000 was used to repay a secured line of credit with a bank and then drew down $500,000 in January 2017. In March 2017 the company drew an additional $900,000. The entire balance of $2,150,000 plus interest was paid off and the letter of credit was terminated on April 7, 2017. (See Note 10) On April 7, 2017, the Company raised $7,500,000 through the issuance of 2,000,000 common shares. The net proceeds of $6,996,000 were used to retire the third party line of credit, the loan payable and convertible loan and support working capital needs. (See Note 11). |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2017 | |
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 unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts in the unaudited consolidated financial statements. Actual results could differ from those estimates. Significant estimates in the accompanying unaudited consolidated financial statements include the allowance for doubtful accounts and other receivables, the valuation of collateral on certain receivables, amortization periods and valuation of courseware and software development costs, valuation of beneficial conversion features in convertible debt, valuation of derivative instruments, 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, 2017 and April 30, 2016. 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, 2017. As of April 30, 2017 and April 30, 2016, there were deposits totaling $2,687,461 and $1,224,863 respectively, held in two separate institutions greater 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. The monthly payment plan represents approximately 65% of the payments that are made by students. 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. When a student signs up for the monthly payment plan, there is a contractual amount that the Company can expect to earn over the life of the student's program. This contractual amount cannot be recorded as the student does have the option to stop attending. As a student takes a class, revenue is earned over the class term. Some students accelerate their program, taking two classes every eight week period, which increases the student's accounts receivable balance. If any portion of that balance will be paid in a period greater than 12 months, that portion is reflected as long-term accounts receivable. At April 30, 2017 and 2016, those balances are $657,542 and $127,099, respectively. 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. After deducting tuition and fees, the Company sends checks for the remaining balances to the students. 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 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. The Company has revenues from students outside the United States and its territories representing 3.3% of the revenues for the year ended April 30, 2017. Accounting for Derivatives The Company evaluates its convertible instruments, options, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for under ASC Topic 815, “Derivatives and Hedging”. The result of this accounting treatment is that the fair value of the derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the statement of operations as other income (expense). Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. Equity instruments that are initially classified as equity that become subject to reclassification under ASC Topic 815 are reclassified to liability at the fair value of the instrument on the reclassification date. 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 $2,625,075 and $1,856,918 for the years ended April 30, 2017 and 2016, 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 pro rata 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 2,096,550 and 1,510,509 common shares, warrants to purchase 912,798 and 2,001,356 common shares, and $50,000 and $350,000 of convertible debt (convertible into 4,167 and 75,596 common shares) were outstanding at April 30, 2017 and 2016, 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. Reclassifications Certain amounts in the FY2016 balance sheet have been reclassified from Accounts Receivable, Net to Long Term Accounts Receivable to conform to the FY2017 presentation. This reclassification increased Long Term Receivable, in non-current assets by $127,099 and decreased Accounts Receivable in current assets by the same amount in FY2016. Recent Accounting Pronouncements Financial Accounting Standards Board, Accounting Standard Updates which are not effective until after April 30, 2017, 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 did not 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, ASU 2016-15 In August 2016, the Financial Accounting Standards Board issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-02 In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update No. 2016-02: “Leases (Topic 842)” whereby lessees will need to recognize almost all leases on their balance sheet as a right of use asset and a lease liability. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018. The Company expects this ASU will increase its current assets and current liabilities, but have no net material impact on its consolidated financial statements. ASU 2016-09 In March 2016, the Financial Accounting Standards Board issued Accounting Standards Update No. 2016-09: "Compensation – Stock Compensation (Topic 718) |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Apr. 30, 2017 | |
Receivables [Abstract] | |
Accounts Receivable | Note 3. Accounts Receivable Accounts receivable consisted of the following at April 30, 2017 and 2016: April 30, 2017 2016 Accounts receivable $ 4,763,726 $ 2,501,880 Long term contractual receivable 657,542 127,099 Less: Allowance for doubtful accounts (328,864 ) (449,946 ) Accounts receivable, net $ 5,092,404 $ 2,179,033 Bad debt expense for the years ended April 30, 2017 and 2016, were $44,320 and $170,677 respectively. |
Secured Note and Accounts Recei
Secured Note and Accounts Receivable - Related Parties | 12 Months Ended |
Apr. 30, 2017 | |
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, 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. The sold courseware amounts were $455,000 and $600,000, respectively; UCC filings were filed accordingly. Under the marketing agreements, the receivables were due net 60 months. On September 16, 2011, HEMG pledged 772,793 Series C preferred shares (automatically converted to 54,571 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 $2.28 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, 2017 and April 30, 2016, 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. 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 54,571 shares after March 10, 2015. On April 29, 2015, the Company sold those shares to a private investor for $1.86 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, 2017 | |
Property and equipment: | |
Property and Equipment | Note 5. Property and Equipment As property and equipment become fully expired, the fully expired asset is written off against the associated accumulated depreciation. There is no expense impact for such write offs. Property and equipment consisted of the following at April 30, 2017 and April 30, 2016: April 30, April 30, 2017 2016 Call center hardware $ 53,748 $ 79,199 Computer and office equipment 103,649 67,773 Furniture and fixtures 255,984 114,964 Software 2,131,344 2,567,383 2,544,725 2,829,319 Accumulated depreciation and amortization (1,090,010 ) (1,680,687 ) Property and equipment, net $ 1,454,715 $ 1,148,632 Software consisted of the following at April 30, 2017 and April 30, 2016: April 30, April 30, 2017 2016 Software $ 2,131,344 $ 2,567,383 Accumulated amortization (994,017 ) (1,560,932 ) Software, net $ 1,137,327 $ 1,006,451 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, 2017 and 2016: For the Years Ended April 30, 2017 2016 Depreciation and Amortization Expense $ 498,476 $ 529,300 Software Amortization Expense $ 447,972 $ 481,230 The following is a schedule of estimated future amortization expense of software at April 30, 2017: Year Ending April 30, 2018 $ 382,783 2019 299,610 2020 229,768 2021 157,321 2022 67,845 Total $ 1,137,327 |
Courseware
Courseware | 12 Months Ended |
Apr. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Courseware | Note 6. Courseware Courseware costs capitalized were $8,800 and $90,624 for the years ended April 30, 2017 and 2016 respectively. During September 2015, $1,970,670 of fully amortized courseware was written off against the accumulated amortization. In subsequent periods, certain other fully expired courseware has been written off in the same way. There is no expense impact for such write-offs. Courseware consisted of the following at April 30, 2017 and April 30, 2016: April 30, April 30, 2017 2016 Courseware $ 271,777 $ 319,267 Accumulated amortization (126,300 ) (124,335 ) Courseware, net $ 145,477 $ 194,932 Amortization expense of courseware for the years ended April 30, 2017 and 2016: For the Years Ended April 30, 2017 2016 Amortization Expense $ 58,254 $ 69,003 The following is a schedule of estimated future amortization expense of courseware at April 30, 2017: Year Ending April 30, 2018 $ 50,942 2019 49,469 2020 35,627 2021 8,663 2022 776 Total $ 145,477 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Apr. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Note 7. Accrued Expenses Accrued expenses consisted of the following at April 30, 2017 and 2016: April 30, 2017 2016 Accrued compensation $ 122,520 $ 91,070 Accrued Interest 13,566 71,214 Other accrued expenses 126,825 14,690 Accrued expenses $ 262,911 $ 176,974 |
Loan Payable Officer - Related
Loan Payable Officer - Related Party | 12 Months Ended |
Apr. 30, 2017 | |
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 5, 2018. There was no accounting effect for these extensions. The loan plus accrued interest was paid in full on April 7, 2017 as part of the $7,500,000 equity raise. (See Note 11.) |
Convertible Notes, Convertible
Convertible Notes, Convertible Notes - Related Party and Debenture Payable | 12 Months Ended |
Apr. 30, 2017 | |
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 29, 2012, a loan payable of $50,000 was converted into a two-year convertible promissory note, bearing interest of 0.19% per annum. Beginning March 31, 2012, the note was convertible into common shares of the Company at the rate of $12.00 per share. 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. This loan (now a convertible promissory note) was originally 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 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 $12.00 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 5, 2018. 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 $2.28 per share and the Company issued 132,588 shares of common stock. 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 note 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 date. 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 was convertible into shares of common stock of the Company at a rate of $4.20 per share (based on proceeds received on September 28, 2012 under a private placement at $4.20 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 5, 2018. There was no accounting effect for these modifications. This note was paid in full with accrued interest on April 7, 2017, as part of the $7,500,000 equity raise (See Note 11.) Convertible notes payable and loan payable consisted of the following at April 30, 2017 and 2016: April 30, 2017 2016 Convertible note payable - related party originating August 14, 2012; no monthly payments required; bearing interest at 5% $ — $ 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 originating February 25, 2012; no monthly payments required; bearing interest at 10% — 1,000,000 Total 50,000 1,350,000 Less: Current maturities (notes payable) (50,000 ) (50,000 ) Subtotal — 1,300,000 Less: amount due after one year for notes payable — (1,000,000 ) Amount due after one year for convertible notes payable $ — $ 300,000 Future maturities of notes payable as of April 30, 2017 are as follows: Year ending April 30, 2018 $ 50,000 2019 — $ 50,000 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. Commitments and Contingencies Line of Credit The Company maintained a line of credit with a bank, up to a maximum credit line of $250,000. The line of credit bore interest equal to the prime rate plus 0.50% (overall interest rate of 4.00% at April 30, 2016). The line of credit required minimum monthly payments consisting of interest only. The line of credit was 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 was 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 would have been 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 could have been due and payable was over a five year period and the Company believed that it could obtain a comparable replacement line of credit elsewhere, the entire line of credit was included in long-term liabilities. The unused amount under the line of credit available to the Company at April 30, 2016 was $248,217. In September 2016, the line of credit with the bank was paid and terminated. In August 2016, the Company closed on a $3 million credit line with its largest shareholder. The credit line, whose terms included a 12% per annum interest rate on drawn funds and a 2% per annum interest rate on undrawn funds. The Company initially drew down $750,000 under the line, of which approximately $248,000 was used to repay a secured line of credit with a bank as noted above. Additionally, the Company paid a 2% origination fee of $60,000 and issued 62,500 common-stock warrants at an exercise price of $2.40 per share, which are redeemable by the Company if the closing price of its common stock averages at least $3.00 per share for 10 consecutive trading days. The origination fee and $52,500 value of the 62,500 warrants (see Note 11) were recorded as debt discounts to be amortized over the term of the line. In January of 2017, the company drew an additional $500,000 and drew another $900,000 in March 2017 to use as a down payment for the USU acquisition (See Note 16.). The entire balance of $2,150,000 plus interest was paid and the letter of credit was terminated on April 7, 2017 as part of the $7,500,000 equity raise. The unamortized balance of the origination fees were expensed at that time. (See Note 11 and 16.) 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 three year agreement commencing March 1, 2017. The monthly rent payment is $2,049 Canadian which is approximately $1,872 US. The Company leases office space for its Denver, Colorado location under a two year lease commencing January 1, 2017. The monthly rent payment is $10,483. 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, 2017: Year Ending April 30, 2018 $ 379,691 2019 242,725 2020 155,859 2021 140,060 2022 11,692 2023 — Total minimum payments required $ 930,027 Rent expense for the years ended April 30, 2017 and 2016 were $338,196 and $239,658, 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, 2017, 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, 2017, 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 sought 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 for $69,000 as of June 2016 and has been dismissed. The Company accrued $87,500 in accordance with ASC 450-20-55-11 and was included in accrued expenses at April 30, 2016. The amount owed was paid in the fiscal year ended April 30, 2017. 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. 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 (“DOE”) during calendar year 2013, 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 DOE. In the two most recent fiscal years (2015 and 2016), Aspen's compliance audit reflected no material findings related to the 2013 program review findings. On February 8, 2017, the DOE issued a Final Program Review Determination (“FPRD”) letter related to the 2013 program review. The FRPD includes a summary of the non-compliance areas and calculations of amounts due for the 126 students that they reviewed. We had 45 days to appeal the amounts calculated and while we were reviewing their calculations, we recognized that we would owe some amount in the range from $80,000 to $360,000. In accordance with ASC 450-20, we recorded a minimum liability of $80,000 at January 31, 2017. Of that amount, $55,000 was recorded against the accounts receivable reserve and $25,000 was expensed. In late March 2017, we agreed to not contest the calculations and paid the full amount of $378,090. As a result, we recorded an additional expense of $298,090 in the fiscal quarter ended April 30, 2017. 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 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Apr. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Note 11. Stockholders’ Equity Common Stock On June 8, 2015, in exchange for the termination of a consulting agreement with a Director, the Company issued 25,000 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 3,500 shares. After adjusting for the shares, the Company recorded an expense of $23,662. On April 22, 2016, the Company issued, 404,624 shares of common stock to two of its warrant holders in exchange for their early exercise of warrants at a reduced price of $1.86 (originally, $2.28) 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 $12.00 to $2.28 per share. In connection with these conversions, the CEO was issued 132,588 shares of common stock. (See Note 9) On June 21, 2016, the Company issued 208,333 shares valued at $400,000 and made a cash payment of $400,000 to a warrant holder in exchange for the buyback of 1,120,968 warrants. The Company re-valued the fair value of the warrants on the buyback date which equaled $594,000 and accordingly, the Company recorded an expense associated with the buyback of $206,000. On July 31, 2016, the Company issued 29,167 shares to two IR firms for services. 16,667 shares were issued for services under a six month contract with a value of $30,000. 12,500 shares were issued for services under a one year contract with a value of $22,500. The Company recorded a prepaid for the value of the services and is amortizing over the respective service periods. Following approval from its shareholders, on January 10, 2017, the Company effected 1-for-12 reverse split of its common stock. All references to common shares and per-share data for all periods presented in this report have been retroactively adjusted to give effect to this reverse split. On April 7, 2017, the Company raised $7,500,000 through the issuance of 2,000,000 common shares at a price of $3.75. The net proceeds were $6,996,000 and there were additional cash disbursements of $57,000. In addition, one firm received 20,000 shares of common stock for their services valued at $3.75 per share or $75,000. Warrants A summary of the Company’s warrant activity during the year ended April 30, 2017 is presented below: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Warrants Shares Price Term Value Balance Outstanding, April 30, 2016 2,001,356 $ 2.31 — 1,022,078 Granted 62,500 2.40 — 78,125 Exercised (8,834 ) 3.99 — — Forfeited (1,120,968 ) 1.86 — — Expired (21,256 ) 3.99 — — Balance Outstanding, April 30, 2017 912,798 $ 2.82 1.6 $ 1,100,203 Exercisable, April 30, 2017 912,798 $ 2.82 1.6 $ 1,100,203 On April 22, 2016, the Company issued, 404,624 shares of common stock to two of its warrant holders in exchange for their early exercise of warrants at a reduced price of $1.86 (originally, $2.28) per share. The Company received gross proceeds of $752,500 from these exercises. On June 24, 2016, the Company issued 208,333 shares and a cash payment of $400,000 to a warrant holder in exchange for 93,414 warrants. On August 31, 2016, the Company announced that it had closed on a $3 million credit line with its largest shareholder. The Company paid a 2% origination fee of $60,000 and issued 62,500 common-stock warrants at an exercise price of $2.40 per share, which are redeemable by the Company if the closing price of its common stock averages at least $3.00 per share for 10 consecutive trading days. Stock Incentive Plan and Stock Option Grants to Employees and Directors On March 13, 2012, the Company adopted the 2012 Equity Incentive Plan (the “Plan”) that provides for the grant of 1,691,667 effective November 2015 and 2,108,333 shares effective June 2016, 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, 2017, there were 38,783 shares remaining under the Plan for future issuance. The Company estimates the fair value of share-based compensation utilizing the Black-Scholes option pricing model, which is dependent upon several variables such as the expected option term, expected volatility of the Company’s stock price over the expected term, expected risk-free interest rate over the expected option term, expected dividend yield rate over the expected option term, and an estimate of expected forfeiture rates. The Company believes this valuation methodology is appropriate for estimating the fair value of stock options granted to employees and directors which are subject to ASC Topic 718 requirements. These amounts are estimates and thus may not be reflective of actual future results, nor amounts ultimately realized by recipients of these grants. The Company recognizes compensation on a straight-line basis over the requisite service period for each award. The following table summarizes the assumptions the Company utilized to record compensation expense for stock options granted to employees during the year ended April 30, 2017. April 30, 2017 2016 Expected life (years) 4-6.5 4 - 6.5 Expected volatility 40% - 43 % 40% - 43 % Weighted-average volatility 0.38 % 40.0 % Risk-free interest rate 0.00 % 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, 2017, is presented below: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Shares Price Term Value Balance Outstanding, April 30, 2016 1,492,593 $ 2.29 — — Granted 671,666 $ 2.74 4.5 — Exercised — — — — Forfeited (44,654 ) $ 2.19 1.5 — Expired (23,055 ) 4.13 — — Balance Outstanding, April 30, 2017 2,096,550 $ 2.42 3.09 $ 2,715,101 Exercisable, April 30, 2017 1,963,217 $ 2.83 0.19 $ 1,375,198 On June 8, 2015, the Chief Academic Officer received a grant of 83,334 options which has a fair value of $60,000, the Chief Operating Officer received a grant of 58,834 options which has a fair value of $42,000 and the Chief Financial Officer received a grant of 25,000 options which has a fair value of $18,000. All of these options have an exercise price of $2.016 per share. On August 5, 2015, 41,667 options were granted to the Senior Vice President of Compliance. The exercise price was $2.16 and the fair value was $30,000. The options vest over 3 years. On September 23, 2015, 38,750 options were granted to a total of 39 employees. The exercise prices were $1.572 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 20,834 five- year options. The options vest over three years, the exercise prices were $1.98 and the fair value of the total grant of 62,500 options is $37,500. On December 11, 2015, the Chief Executive Officer was granted 125,000 options that vest over three years. The exercise price is $2.10, the life of the options is ten years and the fair value of the grant is $105,000. On May 19, 2016, the Company granted to each of its eight non-employee directors 12,500 five-year stock options. The Company granted an additional 4,167 five-year stock options to the chairman of the Compensation Committee and to the chairman of the Audit Committee. These options are exercisable at $1.92 and vest in three years. For the directors receiving 12,500, the fair value was approximately $7,500 per grant and for the two directors receiving 16,667 options, the fair value on the date of grant was approximately $10,000. On June 20, 2016, the Company granted 2,500 options to an employee. The fair value was approximately $5,000 and vest over 3 years. On June 23, 2016, the Company granted 166,667 stock options to the Chief Operating Officer, 58,333 stock options to the Chief Academic Officer and 25,000 to the Chief Financial Officer. The five-year options are exercisable at a price of $1.99 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. On September 12, 2016, the Company extended approximately 420,000 options that were expiring in 2017. The new expiration dates were extended three years. The cost associated with these extensions is approximately $150,000, which represents the difference between the fair value of the options before the modification and the fair value immediately after the modification. These extended options will vest over the next three years. On October 1, 2016, the Company granted 20,417 options to a pool of employees. The fair value was approximately $17,000 and the options vest over 3 years. On November 18, 2016, under the Plan the Company granted 41,667 five-year options to each of the two new directors elected at the annual meeting held that month. These options are exercisable at $3.24 per share. The options were valued at $40,000 each and vest over a three year term, subject to continued service. On January 6, 2017, the Company granted 69,583 options to a pool of employees. The fair value was approximately $225,000 and the options vest over three years. From February 1, 2017 to April 17, 2017 inclusive, the Company granted new employees a total of 20,000 options with an exercise price ranging from $3.60 to $4.50. All of these options are five year options that vest over 3 years. The fair value of the group of options is $22,710. On April 12, 2017, the Board of Directors was issued a total of 113,333 five-year options that vest of 3 years. The strike price was $4.32 and the fair value is $140,533. The Company recorded compensation expense of $338,294 for the year ended April 30, 2017 in connection with employee stock options. The Company recorded compensation expense of $308,260 for the year ended April 30, 2016 in connection with employee stock options. As of April 30, 2017, there was approximately $585,000 of unrecognized compensation costs related to nonvested share-based compensation arrangements. That cost is expected to be recognized over a weighted-average period of 2.0 years. Stock Option Grants to Non-Employees There were no stock options granted to non-employees during the year April 30, 2017 and 2016. The Company recorded no compensation expense for the years ended April 30, 2017, and 2016 in connection with non-employee stock options. There was no unrecognized compensation cost at April 30, 2017. A summary of the Company's stock option activity for non-employees during the year ended April 30, 2017 is presented below: Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Shares Price Term Value Balance Outstanding, April 30, 2016 16,250 $ 3.48 0.9 $ — Granted — — — — Exercised — — — — Forfeited — — — — Expired (16,250 ) — — — Balance Outstanding, April 30, 2017 — $ — — — Exercisable, April 30, 2017 — $ — — — |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2017 | |
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, 2017 2016 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, 2017 2016 Deferred tax assets: Net operating loss $ 8,626,748 $ 8,271,894 Allowance for doubtful accounts (recovery) (20,029 ) 26,793 Intangible assets 201,942 249,099 Deferred rent 16,911 11,678 Stock-based compensation 820,257 694,900 Contributions carryforward 93 93 Total deferred tax assets 9,645,922 9,254,457 Deferred tax liabilities: Property and equipment (174,260 ) (185,683 ) Total deferred tax liabilities (174,260 ) (185,683 ) Deferred tax assets, net 9,471,662 9,068,774 Valuation allowance: Beginning of year (9,068,774 ) (8,240,200 ) (Increase) during period (402,888 ) (828,574 ) Ending balance (9,471,662 ) (9,068,774 ) 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, 2017 and 2016 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, 2017 was an increase of $402,888. At April 30, 2017, the Company had $20,204,869 of net operating loss carryforwards which will expire from 2032 to 2037. 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, 2017, tax years 2013 through 2016 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, 2017 2016 Statutory U.S. federal income tax rate 34.0 % 34.0 % State income taxes, net of federal tax benefit 3.0 3.0 Other (0.5 ) (0.1 ) Change in valuation allowance (36.5 ) (36.9 ) Effective income tax rate 0.0 % 0.0 % |
Concentrations
Concentrations | 12 Months Ended |
Apr. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Note 13. Concentrations Concentration of Credit Risk As of April 30, 2017, the CompanyÂ’s bank balances exceed FDIC insurance by $2,687,461. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Apr. 30, 2017 | |
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. |
Fair Value Measurements - Warra
Fair Value Measurements - Warrant Derivative liability | 12 Months Ended |
Apr. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements - Warrant Derivative liability | Note 15. Fair Value Measurements – Warrant Derivative liability The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The accounting standard established a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 input are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. An asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Assets and liabilities measured at fair value on a recurring and non-recurring basis consisted of the following at April 30, 2017 which related to 62,500 warrants which contained price protection: Carrying Value at April 30, Fair value Measurements at April 30, 2017 2017 (Level 1) (Level 2) (Level 3) Warrant derivative liability $ 52,500 $ — $ — $ 52,500 The following is a summary of activity of Level 3 liabilities for the year ended April 30, 2017: Balance April 30, 2016 $ — Initial valuation of warrant derivative liability 52,500 Change in valuation of warrant derivative liability — Balance April 30, 2017 $ 52,500 Changes in fair value of the warrant derivative liability are included in other income (expense) in the accompanying consolidated statements of operations. There were no changes in the valuation techniques during year ended April 30, 2017. |
Pending Acquisition
Pending Acquisition | 12 Months Ended |
Apr. 30, 2017 | |
Business Combinations [Abstract] | |
Pending Acquisition | Note 16. Pending Acquisition On March 8, 2017, Aspen entered into a letter of intent to acquire a regionally accredited for profit university for $9 million. The letter of intent is non-binding in material respects except for a no shop and certain other aspects. It is subject to a number of contingencies including execution of a Merger Agreement within 60 days and there is an important financial contingency that must be met by the end of calendar 2017. In furtherance of this possible acquisition, the Company lent $900,000 to the target with the loan guaranteed by its principal owner. The Company also entered into a Marketing Consulting Agreement with this university. If the Merger Agreement is not entered into within 60 days or the parties otherwise terminate the proposed merger, the $900,000 and 8% per annum interest is immediately due. Otherwise it is a credit towards the $2.5 million cash due at closing. The Company drew the $900,000 from the third party line of credit. (See Note 10, and Note 17 for definitive agreement.) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Apr. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17. Subsequent Events On May 13, 2017, the Company granted its executive officers a total of 500,000 five-year options to purchase shares of the CompanyÂ’s common stock under the 2012 Equity Incentive Plan. The options vest annually over three years, subject to continued employment at each applicable vesting date, and are exercisable at $4.90 per share. The Chairman and Chief Executive Officer received 200,000 options with a fair value of $282,000, the Chief Operating Officer received 200,000 options with a fair value of $282,000, the Chief Academic Officer received 70,000 options with a fair value of $98,700 and the Chief Financial Officer received 30,000 options with a fair value of $42,300. On May 18, 2017, the Company announced it had entered into a definitive agreement to acquire United States University, a regionally accredited for-profit university based in San Diego, California for a total purchase price of $9 million. The transaction is subject to customary closing conditions and regulatory approvals by the U.S. Department of Education, WASC Senior College and University Commission, and state regulatory and programmatic accreditation bodies. The earliest that Aspen Group would receive required regulatory approvals would be December 2017. Effective May 24, 2017, the Company entered into waiver agreements with all of its investors in the April 2017 common stock offering. In consideration for waiving their registration rights, the Company paid to each of the investors 1.5% of their investment amount in the offering. The total amount paid was $112,500. Effective June 11, 2017, the Company increased the Chief Academic OfficerÂ’s salary from $264,000 to $300,000, and granted 30,000 five-year options. The options vest quarterly over a three-year period in 12 equal quarterly increments with the first vesting date being September 11, 2017, subject to continued employment on each applicable employment date. The options are exercisable at $6.28 per share and the fair value is $54,000. On June 20, 2017, the Company increased the Chief Financial OfficerÂ’s salary from $231,000 to $250,000. On July 24, 2017, the Board of Directors approved the increase of shares authorized to be granted under the 2012 Equity Incentive Plan to 3,500,000. On July 25, 2017, the Company signed a $10 million senior secured term loan with Runway Growth Credit Fund (formerly known as GSV Growth Credit Fund). The Company will draw $5 million under the facility at closing, with the remaining $5 million to be drawn following the closing of the CompanyÂ’s acquisition of substantially all the assets of the United States University, including receipt of all required regulatory approvals, among other conditions to funding. Terms of the 4-year senior loan include a 10% over 3-month LIBOR per annum interest rate. The Company also issued 224,174 5-year warrants at an exercise price of $6.87 per share. |
Significant Accounting Polici24
Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2017 | |
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 unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts in the unaudited consolidated financial statements. Actual results could differ from those estimates. Significant estimates in the accompanying unaudited consolidated financial statements include the allowance for doubtful accounts and other receivables, the valuation of collateral on certain receivables, amortization periods and valuation of courseware and software development costs, valuation of beneficial conversion features in convertible debt, valuation of derivative instruments, 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, 2017 and April 30, 2016. 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, 2017. As of April 30, 2017 and April 30, 2016, there were deposits totaling $2,687,461 and $1,224,863 respectively, held in two separate institutions greater |
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. The monthly payment plan represents approximately 65% of the payments that are made by students. 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. When a student signs up for the monthly payment plan, there is a contractual amount that the Company can expect to earn over the life of the student's program. This contractual amount cannot be recorded as the student does have the option to stop attending. As a student takes a class, revenue is earned over the class term. Some students accelerate their program, taking two classes every eight week period, which increases the student's accounts receivable balance. If any portion of that balance will be paid in a period greater than 12 months, that portion is reflected as long-term accounts receivable. At April 30, 2017 and 2016, those balances are $657,542 and $127,099, respectively. |
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. After deducting tuition and fees, the Company sends checks for the remaining balances to the students. |
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 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. The Company has revenues from students outside the United States and its territories representing 3.3% of the revenues for the year ended April 30, 2017. |
Accounting for Derivatives | Accounting for Derivatives The Company evaluates its convertible instruments, options, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for under ASC Topic 815, “Derivatives and Hedging”. The result of this accounting treatment is that the fair value of the derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the statement of operations as other income (expense). Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. Equity instruments that are initially classified as equity that become subject to reclassification under ASC Topic 815 are reclassified to liability at the fair value of the instrument on the reclassification date. |
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 $2,625,075 and $1,856,918 for the years ended April 30, 2017 and 2016, 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 pro rata 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 2,096,550 and 1,510,509 common shares, warrants to purchase 912,798 and 2,001,356 common shares, and $50,000 and $350,000 of convertible debt (convertible into 4,167 and 75,596 common shares) were outstanding at April 30, 2017 and 2016, 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. |
Reclassifications | Reclassifications Certain amounts in the FY2016 balance sheet have been reclassified from Accounts Receivable, Net to Long Term Accounts Receivable to conform to the FY2017 presentation. This reclassification increased Long Term Receivable, in non-current assets by $127,099 and decreased Accounts Receivable in current assets by the same amount in FY2016. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Financial Accounting Standards Board, Accounting Standard Updates which are not effective until after April 30, 2017, 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 did not 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, ASU 2016-15 In August 2016, the Financial Accounting Standards Board issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-02 In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update No. 2016-02: “Leases (Topic 842)” whereby lessees will need to recognize almost all leases on their balance sheet as a right of use asset and a lease liability. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018. The Company expects this ASU will increase its current assets and current liabilities, but have no net material impact on its consolidated financial statements. ASU 2016-09 In March 2016, the Financial Accounting Standards Board issued Accounting Standards Update No. 2016-09: "Compensation – Stock Compensation (Topic 718) |
Significant Accounting Polici25
Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment Useful Lives | 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 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consisted of the following at April 30, 2017 and 2016: April 30, 2017 2016 Accounts receivable $ 4,763,726 $ 2,501,880 Long term contractual receivable 657,542 127,099 Less: Allowance for doubtful accounts (328,864 ) (449,946 ) Accounts receivable, net $ 5,092,404 $ 2,179,033 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Property, Plant and Equipment [Line Items] | |
Schedule of Property and Equipment | Property and equipment consisted of the following at April 30, 2017 and April 30, 2016: April 30, April 30, 2017 2016 Call center hardware $ 53,748 $ 79,199 Computer and office equipment 103,649 67,773 Furniture and fixtures 255,984 114,964 Software 2,131,344 2,567,383 2,544,725 2,829,319 Accumulated depreciation and amortization (1,090,010 ) (1,680,687 ) Property and equipment, net $ 1,454,715 $ 1,148,632 |
Schedule of Depreciation and Amortization Expense | 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, 2017 and 2016: For the Years Ended April 30, 2017 2016 Depreciation and Amortization Expense $ 498,476 $ 529,300 Software Amortization Expense $ 447,972 $ 481,230 |
Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Schedule of Intangible Asset | Software consisted of the following at April 30, 2017 and April 30, 2016: April 30, April 30, 2017 2016 Software $ 2,131,344 $ 2,567,383 Accumulated amortization (994,017 ) (1,560,932 ) Software, net $ 1,137,327 $ 1,006,451 |
Schedule of Estimated Future Amortization Expense | The following is a schedule of estimated future amortization expense of software at April 30, 2017: Year Ending April 30, 2018 $ 382,783 2019 299,610 2020 229,768 2021 157,321 2022 67,845 Total $ 1,137,327 |
Courseware (Tables)
Courseware (Tables) - Courseware [Member] | 12 Months Ended |
Apr. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Intangible Asset | Courseware consisted of the following at April 30, 2017 and April 30, 2016: April 30, April 30, 2017 2016 Courseware $ 271,777 $ 319,267 Accumulated amortization (126,300 ) (124,335 ) Courseware, net $ 145,477 $ 194,932 |
Schedule of amortization expense of intangible assets | Amortization expense of courseware for the years ended April 30, 2017 and 2016: For the Years Ended April 30, 2017 2016 Amortization Expense $ 58,254 $ 69,003 |
Schedule of Estimated Future Amortization Expense | The following is a schedule of estimated future amortization expense of courseware at April 30, 2017: Year Ending April 30, 2018 $ 50,942 2019 49,469 2020 35,627 2021 8,663 2022 776 Total $ 145,477 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following at April 30, 2017 and 2016: April 30, 2017 2016 Accrued compensation $ 122,520 $ 91,070 Accrued Interest 13,566 71,214 Other accrued expenses 126,825 14,690 Accrued expenses $ 262,911 $ 176,974 |
Convertible Notes, Convertibl30
Convertible Notes, Convertible Notes - Related Party and Debenture Payable (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Notes Payable | Convertible notes payable and loan payable consisted of the following at April 30, 2017 and 2016: April 30, 2017 2016 Convertible note payable - related party originating August 14, 2012; no monthly payments required; bearing interest at 5% $ — $ 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 originating February 25, 2012; no monthly payments required; bearing interest at 10% — 1,000,000 Total 50,000 1,350,000 Less: Current maturities (notes payable) (50,000 ) (50,000 ) Subtotal — 1,300,000 Less: amount due after one year for notes payable — (1,000,000 ) Amount due after one year for convertible notes payable $ — $ 300,000 |
Schedule of Future Maturities of Notes Payable | Future maturities of notes payable as of April 30, 2017 are as follows: Year ending April 30, 2018 $ 50,000 2019 — $ 50,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments | 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, 2017: Year Ending April 30, 2018 $ 379,691 2019 242,725 2020 155,859 2021 140,060 2022 11,692 2023 — Total minimum payments required $ 930,027 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Schedule of Warrants Activity | A summary of the Company’s warrant activity during the year ended April 30, 2017 is presented below: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Warrants Shares Price Term Value Balance Outstanding, April 30, 2016 2,001,356 $ 2.31 — 1,022,078 Granted 62,500 2.40 — 78,125 Exercised (8,834 ) 3.99 — — Forfeited (1,120,968 ) 1.86 — — Expired (21,256 ) 3.99 — — Balance Outstanding, April 30, 2017 912,798 $ 2.82 1.6 $ 1,100,203 Exercisable, April 30, 2017 912,798 $ 2.82 1.6 $ 1,100,203 |
Stock Incentive Plan and Stock Option Grants to Employees and Directors [Member] | |
Schedule of Assumptions Used In Valuing Stock Options | The following table summarizes the assumptions the Company utilized to record compensation expense for stock options granted to employees during the year ended April 30, 2017. April 30, 2017 2016 Expected life (years) 4-6.5 4 - 6.5 Expected volatility 40% - 43 % 40% - 43 % Weighted-average volatility 0.38 % 40.0 % Risk-free interest rate 0.00 % 0.38 % Dividend yield 0.00 % 0.00 % Expected forfeiture rate n/a n/a |
Schedule of Stock Option Activity | A summary of the Company’s stock option activity for employees and directors during the year ended April 30, 2017, is presented below: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Shares Price Term Value Balance Outstanding, April 30, 2016 1,492,593 $ 2.29 — — Granted 671,666 $ 2.74 4.5 — Exercised — — — — Forfeited (44,654 ) $ 2.19 1.5 — Expired (23,055 ) 4.13 — — Balance Outstanding, April 30, 2017 2,096,550 $ 2.42 3.09 $ 2,715,101 Exercisable, April 30, 2017 1,963,217 $ 2.83 0.19 $ 1,375,198 |
Stock Option Grants To Non-Employees [Member] | |
Schedule of Stock Option Activity | A summary of the Company's stock option activity for non-employees during the year ended April 30, 2017 is presented below: Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Shares Price Term Value Balance Outstanding, April 30, 2016 16,250 $ 3.48 0.9 $ — Granted — — — — Exercised — — — — Forfeited — — — — Expired (16,250 ) — — — Balance Outstanding, April 30, 2017 — $ — — — Exercisable, April 30, 2017 — $ — — — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | The components of income tax expense (benefit) are as follows: For the Years Ended April 30, 2017 2016 Current: Federal $ — $ — State — — — — Deferred: Federal — — State — — — — Total Income tax expense (benefit) $ — $ — |
Schedule of Deferred Income Tax Assets and Liabilities | Significant components of the Company's deferred income tax assets and liabilities are as follows: April 30, 2017 2016 Deferred tax assets: Net operating loss $ 8,626,748 $ 8,271,894 Allowance for doubtful accounts (recovery) (20,029 ) 26,793 Intangible assets 201,942 249,099 Deferred rent 16,911 11,678 Stock-based compensation 820,257 694,900 Contributions carryforward 93 93 Total deferred tax assets 9,645,922 9,254,457 Deferred tax liabilities: Property and equipment (174,260 ) (185,683 ) Total deferred tax liabilities (174,260 ) (185,683 ) Deferred tax assets, net 9,471,662 9,068,774 Valuation allowance: Beginning of year (9,068,774 ) (8,240,200 ) (Increase) during period (402,888 ) (828,574 ) Ending balance (9,471,662 ) (9,068,774 ) Net deferred tax asset $ — $ — |
Schedule of Income Tax Reconciliation | A reconciliation of income tax computed at the U.S. statutory rate to the effective income tax rate is as follows: April 30, 2017 2016 Statutory U.S. federal income tax rate 34.0 % 34.0 % State income taxes, net of federal tax benefit 3.0 3.0 Other (0.5 ) (0.1 ) Change in valuation allowance (36.5 ) (36.9 ) Effective income tax rate 0.0 % 0.0 % |
Fair Value Measurements - War34
Fair Value Measurements - Warrant Derivative liability (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Liabilities Measured at Fair Value | Assets and liabilities measured at fair value on a recurring and non-recurring basis consisted of the following at April 30, 2017 which related to 62,500 warrants which contained price protection: Carrying Value at April 30, Fair value Measurements at April 30, 2017 2017 (Level 1) (Level 2) (Level 3) Warrant derivative liability $ 52,500 $ — $ — $ 52,500 |
Summary of Activity of Level 3 Liabilities | The following is a summary of activity of Level 3 liabilities for the year ended April 30, 2017: Balance April 30, 2016 $ — Initial valuation of warrant derivative liability 52,500 Change in valuation of warrant derivative liability — Balance April 30, 2017 $ 52,500 |
Nature of Operations and Liqu35
Nature of Operations and Liquidity (Narrative) (Details) - USD ($) | Apr. 07, 2017 | Mar. 08, 2017 | Aug. 31, 2016 | Jun. 21, 2016 | Apr. 29, 2015 | Apr. 30, 2017 | Mar. 31, 2017 | Jan. 31, 2017 | Jun. 24, 2016 | Apr. 22, 2016 | Mar. 31, 2014 | Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | Feb. 26, 2015 | Jan. 31, 2014 |
Product Information [Line Items] | ||||||||||||||||
Percentage of professors with doctorate degrees | 54.00% | |||||||||||||||
Approximate cash position | $ 2,756,217 | $ 2,756,217 | $ 783,796 | $ 2,159,463 | ||||||||||||
Proceeds from lines of credit | $ 900,000 | 247,000 | ||||||||||||||
Gross proceeds from warrant excercises | 752,500 | |||||||||||||||
Conversion of note, amount | 302,311 | |||||||||||||||
Line of credit amount | 1,783 | |||||||||||||||
Repayments of lines of credit | 2,150,000 | |||||||||||||||
Shares issued | 2,000,000 | |||||||||||||||
Shares issued, value | $ 7,500,000 | $ 7,500,000 | ||||||||||||||
Proceeds from issuance of common stock | 6,996,000 | $ 101,502 | ||||||||||||||
Line of Credit [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Proceeds from lines of credit | $ 900,000 | $ 500,000 | ||||||||||||||
Exercise price of warrants | $ 2.40 | |||||||||||||||
Line of credit amount | $ 1,783 | $ 2,244,971 | $ 1,696,445 | |||||||||||||
Line of credit interest rate on undrawn funds | 4.00% | |||||||||||||||
Repayments of lines of credit | $ 2,150,000 | |||||||||||||||
Line of Credit [Member] | Line of Credit With A Bank [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Proceeds from lines of credit | $ 900,000 | $ 500,000 | ||||||||||||||
Repayments of lines of credit | $ 248,000 | $ 900,000 | ||||||||||||||
Largest Shareholder [Member] | Line of Credit [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Proceeds from lines of credit | $ 750,000 | |||||||||||||||
Exercise price of warrants | $ 2.40 | |||||||||||||||
Line of credit amount | $ 3,000,000 | |||||||||||||||
Line of credit interest rate on drawn funds | 12.00% | |||||||||||||||
Line of credit interest rate on undrawn funds | 2.00% | |||||||||||||||
Mr. Michael Mathews [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Shares issued upon conversion | 132,588 | |||||||||||||||
Conversion of note, amount | $ 300,000 | |||||||||||||||
Warrant [Member] | ||||||||||||||||
Product Information [Line Items] | ||||||||||||||||
Shares issued upon conversion | 208,333 | 208,333 | 404,624 | |||||||||||||
Exercise price of warrants | $ 1.86 | |||||||||||||||
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 Polici36
Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
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 | $ 2,687,461 | |
Marketing and promotional costs | 2,625,075 | $ 1,856,918 |
Increase in long term accounts receivable due to reclassification adjustment | 127,099 | |
Decrease in current accounts receivable due to reclassification adjustment | 127,099 | |
Long term accounts receivable | $ 657,542 | 127,099 |
Sales Revenue, Net [Member] | Non-US [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Percentage of revenues from students outside the United States | 3.30% | |
Two Separate Institutions [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Amount of cash balance uninsured by FDIC | $ 2,687,461 | $ 1,224,863 |
Employee Stock Option [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Antidilutive securities | 2,096,550 | 1,510,509 |
Warrant [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Antidilutive securities | 912,798 | 2,001,356 |
Convertible Debt [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Antidilutive securities | 4,167 | 75,596 |
Convertible debt | $ 50,000 | $ 350,000 |
Significant Accounting Polici37
Significant Accounting Policies (Schedule of Property and Equipment Useful Lives) (Details) | 12 Months Ended |
Apr. 30, 2017 | |
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 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Receivables [Abstract] | ||
Accounts receivable | $ 4,763,726 | $ 2,501,880 |
Long term contractual receivable | 657,542 | 127,099 |
Less: Allowance for doubtful accounts | (328,864) | (449,946) |
Accounts receivable, net | 5,092,404 | 2,179,033 |
Bad debt expense | $ 44,320 | $ 170,677 |
Secured Note and Accounts Rec39
Secured Note and Accounts Receivable - Related Parties (Details) - USD ($) | Apr. 07, 2017 | Apr. 29, 2015 | Dec. 31, 2008 | Mar. 31, 2008 | Apr. 30, 2014 | Apr. 30, 2017 | Apr. 30, 2016 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 13, 2012 | Sep. 16, 2011 |
Related Party Transaction [Line Items] | |||||||||||
Price per share | $ 1.86 | ||||||||||
Accounts receivable, secured - related party, net of allowance | $ 45,329 | $ 45,329 | |||||||||
Allowance for doubtful accounts, noncurrent accounts receivables | $ 625,963 | $ 625,963 | 625,963 | ||||||||
Proceeds from issuance of common shares and warrants, net | $ 6,996,000 | 101,502 | |||||||||
Accounts receivable, before allowance | $ 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 | 54,571 | ||||||||||
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 | ||||||||||
CEO [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Price per share | $ 0.19 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) | Apr. 30, 2017 | Apr. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,544,725 | $ 2,829,319 |
Accumulated depreciation and amortization | (1,090,010) | (1,680,687) |
Property and equipment, net | 1,454,715 | 1,148,632 |
Call center equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 53,748 | 79,199 |
Computer and office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 103,649 | 67,773 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 255,984 | 114,964 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,131,344 | $ 2,567,383 |
Property and Equipment (Sched41
Property and Equipment (Schedule of Software, Net) (Details) - USD ($) | Apr. 30, 2017 | Apr. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Intangible asset, net | $ 145,477 | $ 194,932 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Intangible asset, gross | 2,131,344 | 2,567,383 |
Accumulated amortization | (994,017) | (1,560,932) |
Intangible asset, net | $ 1,137,327 | $ 1,006,451 |
Property and Equipment (Sched42
Property and Equipment (Schedule Of Depreciation And Amortization Expense) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Property and equipment: | ||
Depreciation and Amortization Expense | $ 498,476 | $ 529,300 |
Software Amortization Expense | $ 447,972 | $ 481,230 |
Property and Equipment (Sched43
Property and Equipment (Schedule of Estimated Amortization Expense of Software) (Details) - USD ($) | Apr. 30, 2017 | Apr. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Intangible asset, net | $ 145,477 | $ 194,932 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
2,018 | 382,783 | |
2,019 | 299,610 | |
2,020 | 229,768 | |
2,021 | 157,321 | |
2,022 | 67,845 | |
Intangible asset, net | $ 1,137,327 | $ 1,006,451 |
Courseware (Narrative) (Details
Courseware (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | 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 | $ 8,800 | $ 90,624 | |
Amortization Expense | $ 58,254 | $ 69,003 |
Courseware (Schedule of Coursew
Courseware (Schedule of Courseware, Net) (Details) - USD ($) | Apr. 30, 2017 | Apr. 30, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, net | $ 145,477 | $ 194,932 |
Courseware [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, gross | 271,777 | 319,267 |
Accumulated amortization | (126,300) | (124,335) |
Intangible asset, net | $ 145,477 | $ 194,932 |
Courseware (Schedule of Estimat
Courseware (Schedule of Estimated Future Amortization Expense) (Details) - USD ($) | Apr. 30, 2017 | Apr. 30, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, net | $ 145,477 | $ 194,932 |
Courseware [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,018 | 50,942 | |
2,019 | 49,469 | |
2,020 | 35,627 | |
2,021 | 8,663 | |
2,022 | 776 | |
Intangible asset, net | $ 145,477 | $ 194,932 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) | Apr. 30, 2017 | Apr. 30, 2016 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 122,520 | $ 91,070 |
Accrued Interest | 13,566 | 71,214 |
Other accrued expenses | 126,825 | 14,690 |
Accrued expenses | $ 262,911 | $ 176,974 |
Loan Payable Officer - Relate48
Loan Payable Officer - Related Party (Details) - Loan Payable Officer - Related Party Dated June 28, 2013 [Member] - CEO [Member] | 1 Months Ended |
Jun. 30, 2013USD ($) | |
Short-term Debt [Line Items] | |
Debt instrument, face amount | $ 1,000,000 |
Term of note | 6 months |
Interest rate | 10.00% |
Maturity date | May 5, 2018 |
Convertible Notes, Convertibl49
Convertible Notes, Convertible Notes - Related Party and Debenture Payable (Details) - USD ($) | Apr. 07, 2017 | Apr. 22, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | Aug. 14, 2012 | Mar. 13, 2012 | Feb. 29, 2012 |
Debt Instrument [Line Items] | |||||||
Equity raise | $ 7,500,000 | ||||||
2 Year Promissory Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0.19% | ||||||
Debt conversion, price per share | $ 12 | ||||||
Convertible note payable Dated February 29, 2012 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face value of loan | $ 50,000 | ||||||
CEO [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt conversion, price per share | $ 2.28 | ||||||
CEO [Member] | Convertible note payable - Related Party Dated August 14, 2012 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5.00% | ||||||
Debt conversion, price per share | $ 4.20 | ||||||
Face value of loan | $ 300,000 | ||||||
Equity raise | $ 7,500,000 | ||||||
CEO [Member] | Convertible note payable - Related Party Dated March 13, 2012 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0.19% | ||||||
Debt conversion, price per share | $ 2.28 | $ 12 | |||||
Face value of loan | $ 300,000 | ||||||
Shares issued for convertible debt | 132,588 |
Convertible Notes, Convertibl50
Convertible Notes, Convertible Notes - Related Party and Debenture Payable (Schedule of Convertible Notes Payable) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Debt Instrument [Line Items] | ||
Total | $ 50,000 | |
Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Total | 50,000 | $ 1,350,000 |
Less: Current maturities (notes payable) | (50,000) | (50,000) |
Subtotal | 1,300,000 | |
Less: amount due after one year for notes payable | (1,000,000) | |
Amount due after one year for convertible notes payable | 300,000 | |
Notes Payable, Other Payables [Member] | Convertible note payable - Related Party Dated August 14, 2012 [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 300,000 | |
Interest rate | 5.00% | |
Notes Payable, Other Payables [Member] | Convertible note payable Dated February 29, 2012 [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 50,000 | $ 50,000 |
Interest rate | 0.19% | 0.19% |
Maturity date | Feb. 28, 2014 | |
Notes Payable, Other Payables [Member] | Convertible Promissory Note Dated February 25, 2012 [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 1,000,000 | |
Interest rate | 10.00% |
Convertible Notes, Convertibl51
Convertible Notes, Convertible Notes - Related Party and Debenture Payable (Schedule of Future Maturities of Notes Payable) (Details) | Apr. 30, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 50,000 |
2,019 | |
Total | $ 50,000 |
Commitments and Contingencies52
Commitments and Contingencies (Narrative) (Details) | Apr. 07, 2017USD ($) | Mar. 08, 2017USD ($) | Aug. 31, 2016USD ($)$ / sharesshares | Apr. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Jan. 31, 2017USD ($) | Nov. 30, 2013USD ($) | Jan. 31, 2017USD ($) | Apr. 30, 2017USD ($) | Apr. 30, 2017CAD | Apr. 30, 2016USD ($) | Apr. 29, 2015$ / shares | Feb. 26, 2015USD ($) | Jan. 31, 2014USD ($) | Feb. 28, 2013USD ($) |
Line of Credit Facility [Line Items] | |||||||||||||||
Line of credit, outstanding | $ 1,783 | ||||||||||||||
Proceeds from lines of credit | $ 900,000 | 247,000 | |||||||||||||
Repayments of lines of credit | 2,150,000 | ||||||||||||||
Rent expense | 338,196 | 239,658 | |||||||||||||
Accrued expenses | 87,500 | ||||||||||||||
Average of closing price of common stock | $ / shares | $ 1.86 | ||||||||||||||
Amount of settlement | 69,000 | ||||||||||||||
Remittance of Title IV funds to the Department of Education due to students ineligibility to receive the funds | $ 102,810 | ||||||||||||||
Possible estimated loss | $ 2,200,000 | ||||||||||||||
Amount of accrued expense | $ 80,000 | $ 80,000 | |||||||||||||
Amount recorded against accounts receivable reserve | 55,000 | 55,000 | |||||||||||||
Expense for non-compliance | 25,000 | ||||||||||||||
Equity raise | 7,500,000 | ||||||||||||||
Full amount of Title IV funds returned | 378,090 | ||||||||||||||
Remaining expense recorded for return of Title IV Funds | $ 298,090 | ||||||||||||||
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% | |||||||||||||
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 | $ 1,872 | ||||||||||||||
Lease term | 1 year | 1 year | |||||||||||||
Dieppe, NB, Canada [Member] | Canadian Dollar [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 | $ 10,483 | ||||||||||||||
Lease term | 2 years | 2 years | |||||||||||||
Lease expiration date | Aug. 31, 2017 | Aug. 31, 2017 | |||||||||||||
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% | |||||||||||||
Minimum [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Possible estimated loss | 80,000 | 80,000 | |||||||||||||
Maximum [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Possible estimated loss | 360,000 | $ 360,000 | |||||||||||||
Line of Credit [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Line of credit, maximum borrowing capacity | $ 250,000 | ||||||||||||||
Prime rate spread | 0.50% | ||||||||||||||
Payment period | 5 years | ||||||||||||||
Line of credit, interest rate at period end | 4.00% | ||||||||||||||
Line of credit, outstanding | $ 1,783 | $ 2,244,971 | $ 1,696,445 | ||||||||||||
Line of credit, remaining available | $ 248,217 | $ 1,122,485 | $ 848,225 | ||||||||||||
Proceeds from lines of credit | $ 900,000 | 500,000 | |||||||||||||
Repayments of lines of credit | $ 2,150,000 | ||||||||||||||
Origination fee percentage | 2.00% | ||||||||||||||
Payment of origination fees | $ 60,000 | ||||||||||||||
Common stock warrants issued, shares | shares | 62,500 | ||||||||||||||
Common stock warrants issued, price per share | $ / shares | $ 2.40 | ||||||||||||||
Equity raise | $ 7,500,000 | ||||||||||||||
Line of Credit [Member] | Minimum [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Average of closing price of common stock | $ / shares | $ 3 | ||||||||||||||
Line of Credit [Member] | Line of Credit With A Bank [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Proceeds from lines of credit | $ 900,000 | $ 500,000 | |||||||||||||
Repayments of lines of credit | $ 248,000 | $ 900,000 | |||||||||||||
Line of Credit [Member] | Largest Shareholder [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Line of credit, interest rate at period end | 2.00% | ||||||||||||||
Line of credit, outstanding | $ 3,000,000 | ||||||||||||||
Line of credit, remaining available | 3,000,000 | ||||||||||||||
Proceeds from lines of credit | $ 750,000 | ||||||||||||||
Line of credit interest rate on drawn funds | 12.00% | ||||||||||||||
Origination fee percentage | 2.00% | ||||||||||||||
Payment of origination fees | $ 60,000 | ||||||||||||||
Common stock warrants issued, shares | shares | 62,500 | ||||||||||||||
Common stock warrants issued, price per share | $ / shares | $ 2.40 |
Commitments and Contingencies53
Commitments and Contingencies (Schedule of Future Minimum Rental Payments) (Details) | Apr. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 379,691 |
2,019 | 242,725 |
2,020 | 155,859 |
2,021 | 140,060 |
2,022 | 11,692 |
2,023 | |
Total minimum payments required | $ 930,027 |
Stockholders' Equity (Common St
Stockholders' Equity (Common Stock and Warrants Narrative) (Details) - USD ($) | Apr. 07, 2017 | Aug. 31, 2016 | Jul. 31, 2016 | Jun. 21, 2016 | Jun. 08, 2015 | Apr. 29, 2015 | Jun. 24, 2016 | Apr. 22, 2016 | Jan. 31, 2016 | Jan. 22, 2016 | Jan. 19, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | Feb. 26, 2015 | Jan. 31, 2014 |
Stockholders Equity [Line Items] | |||||||||||||||
Stock units granted | 25,000 | ||||||||||||||
Fair value of grant | $ 50,400 | ||||||||||||||
Allocated Share-based Compensation Expense | $ 50,400 | ||||||||||||||
Vesting-period | 6 months | ||||||||||||||
Repurchase of shares under settlement agreement | $ 29,500 | ||||||||||||||
Repurchase of shares under settlement agreement, shares | 3,500 | ||||||||||||||
Expenses for settlement | $ 23,662 | ||||||||||||||
Common stock, shares issued | 13,520,679 | 11,263,179 | |||||||||||||
Proceeds from warrant exercise | $ 752,500 | ||||||||||||||
Payment for warrant buyback | 400,000 | ||||||||||||||
Shares issued for services rendered | 52,502 | 50,400 | |||||||||||||
Shares issued for services rendered, shares | 20,000 | 29,167 | |||||||||||||
Issuance of common shares for cash, shares | 2,000,000 | ||||||||||||||
Issuance of common shares for cash | $ 7,500,000 | $ 7,500,000 | |||||||||||||
Shares issued price per share | $ 3.75 | ||||||||||||||
Proceeds from issuance of common stock | $ 6,996,000 | $ 101,502 | |||||||||||||
Additional cash disbursements | $ 57,000 | ||||||||||||||
Line of Credit [Member] | |||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||
Exercise price of warrants | $ 2.40 | ||||||||||||||
Line of credit, remaining available | $ 248,217 | $ 1,122,485 | $ 848,225 | ||||||||||||
Origination fee percentage | 2.00% | ||||||||||||||
Payment of origination fees | $ 60,000 | ||||||||||||||
Contract One [Member] | |||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||
Shares issued for services rendered | $ 30,000 | ||||||||||||||
Shares issued for services rendered, shares | 16,667 | ||||||||||||||
Duration of contract | 6 months | ||||||||||||||
Contract Two [Member] | |||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||
Shares issued for services rendered | $ 22,500 | ||||||||||||||
Shares issued for services rendered, shares | 12,500 | ||||||||||||||
Duration of contract | 1 year | ||||||||||||||
Warrant [Member] | |||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||
Reduced Exercise price | $ 3.99 | ||||||||||||||
Proceeds from warrant exercise | $ 752,500 | ||||||||||||||
Warrant buyback, shares | 93,414 | 1,120,968 | |||||||||||||
Shares issued upon conversion | 208,333 | 208,333 | 404,624 | ||||||||||||
Value of shares issued upon conversion | $ 400,000 | $ 400,000 | |||||||||||||
Payment for warrant buyback | 400,000 | ||||||||||||||
Exercise price of warrants | $ 1.86 | ||||||||||||||
Warrant modification expense | 206,000 | ||||||||||||||
Fair value of warrants outstanding | $ 594,000 | ||||||||||||||
CEO [Member] | |||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||
Conversion of convertible debt into shares, shares | 132,588 | ||||||||||||||
Debt conversion, price per share | $ 2.28 | ||||||||||||||
Warrants exercised | $ 300,000 | ||||||||||||||
Largest Shareholder [Member] | Line of Credit [Member] | |||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||
Exercise price of warrants | $ 2.40 | ||||||||||||||
Line of credit, remaining available | $ 3,000,000 | ||||||||||||||
Origination fee percentage | 2.00% | ||||||||||||||
Payment of origination fees | $ 60,000 | ||||||||||||||
Largest Shareholder [Member] | Warrant [Member] | Line of Credit [Member] | |||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||
Common stock, shares issued | 62,500 | ||||||||||||||
Common Stock [Member] | |||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||
Repurchase of shares under settlement agreement, shares | 3,500 | ||||||||||||||
Common stock, shares issued | 404,624 | ||||||||||||||
Reduced Exercise price | $ 1.86 | ||||||||||||||
Proceeds from warrant exercise | $ 752,500 | ||||||||||||||
Conversion of convertible debt into shares, shares | 132,588 | ||||||||||||||
Exercise price of warrants | $ 1.86 | ||||||||||||||
Warrant modification expense | $ 48,555 | ||||||||||||||
Shares issued for services rendered | $ 49 | $ 25 | |||||||||||||
Shares issued for services rendered, shares | 49,167 | 25,000 | |||||||||||||
Issuance of common shares for cash, shares | 2,000,000 | ||||||||||||||
Issuance of common shares for cash | $ 2,000 | ||||||||||||||
Shares issued price per share | $ 2.28 | ||||||||||||||
Common Stock [Member] | Largest Shareholder [Member] | Line of Credit [Member] | |||||||||||||||
Stockholders Equity [Line Items] | |||||||||||||||
Exercise price of warrants | $ 3 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Warrants) (Details) - Warrant [Member] | 12 Months Ended |
Apr. 30, 2017USD ($)$ / sharesshares | |
Number of Shares | |
Balance Outstanding, April 30, 2016 | shares | 2,001,356 |
Granted | shares | 62,500 |
Exercised | shares | (8,834) |
Forfeited | shares | (1,120,968) |
Expired | shares | (21,256) |
Balance Outstanding, April 30, 2017 | shares | 912,798 |
Exercisable, April 30, 2017 | shares | 912,798 |
Weighted Average Exercise Price | |
Balance Outstanding, April 30, 2016 | $ / shares | $ 2.31 |
Granted | $ / shares | 2.40 |
Exercised | $ / shares | 3.99 |
Forfeited | $ / shares | 1.86 |
Expired | $ / shares | 3.99 |
Balance Outstanding, April 30, 2017 | $ / shares | 2.82 |
Exercisable, April 30, 2017 | $ / shares | $ 2.82 |
Weighted Average Remaining Contractual Term | |
Balance Outstanding, April 30, 2017 | 1 year 7 months 6 days |
Exercisable, April 30, 2017 | 1 year 7 months 6 days |
Aggregate Intrinsic Value | |
Balance Outstanding, April 30, 2016 | $ | $ 1,022,078 |
Granted | $ | 78,125 |
Balance Outstanding, April 30, 2017 | $ | 1,100,203 |
Exercisable, April 30, 2017 | $ | $ 1,100,203 |
Stockholders' Equity (Stock Opt
Stockholders' Equity (Stock Options) (Narrative) (Details) | Apr. 12, 2017USD ($)$ / sharesshares | Jan. 06, 2017USD ($)shares | Nov. 18, 2016USD ($)$ / sharesshares | Oct. 02, 2016USD ($)shares | Sep. 12, 2016USD ($)shares | Jun. 23, 2016USD ($)$ / sharesshares | Jun. 20, 2016USD ($)shares | May 19, 2016USD ($)$ / sharesshares | Dec. 11, 2015USD ($)$ / sharesshares | Nov. 20, 2015USD ($)$ / sharesshares | Sep. 23, 2015USD ($)$ / sharesshares | Aug. 05, 2015USD ($)$ / sharesshares | Jun. 08, 2015 | Jun. 08, 2015USD ($)$ / sharesshares | Dec. 11, 2014USD ($)$ / sharesshares | Sep. 16, 2014USD ($)$ / sharesshares | Apr. 17, 2017USD ($)$ / sharesshares | Apr. 30, 2017USD ($)shares | Apr. 30, 2016USD ($) | Jun. 30, 2016shares | Nov. 30, 2015shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Share based compensation expense | $ | $ 338,294 | $ 308,260 | |||||||||||||||||||
Vesting period | 6 months | ||||||||||||||||||||
2012 Equity Incentive Plan [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Equity Incentive Plan, shares authorized | 2,108,333 | 1,691,667 | |||||||||||||||||||
Equity Incentive Plan, shares remaining | 38,783 | ||||||||||||||||||||
Unrecognized compensation cost | $ | $ 585,000 | ||||||||||||||||||||
Weighted average recognition period | 2 years | ||||||||||||||||||||
Employee [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of employee to whom stock option granted | 39 | ||||||||||||||||||||
Options granted | 2,500 | 38,750 | |||||||||||||||||||
Fair value of stock options granted | $ | $ 5,000 | $ 48,600 | |||||||||||||||||||
Options granted, exercise price | $ / shares | $ 1.572 | ||||||||||||||||||||
Vesting period | 3 years | 3 years | |||||||||||||||||||
Director [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of directors to whom stock option granted | 2 | 8 | 3 | ||||||||||||||||||
Weighted average recognition period | 5 years | 5 years | 5 years | ||||||||||||||||||
Options granted | 113,333 | 41,667 | 12,500 | 62,500 | |||||||||||||||||
Fair value of stock options granted | $ | $ 140,533 | $ 40,000 | $ 7,500 | $ 37,500 | |||||||||||||||||
Options granted, exercise price | $ / shares | $ 4.32 | $ 3.24 | $ 1.92 | $ 0.165 | |||||||||||||||||
Vesting period | 3 years | 3 years | 3 years | 3 years | |||||||||||||||||
CEO [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Weighted average recognition period | 10 years | ||||||||||||||||||||
Options granted | 1,125,000 | ||||||||||||||||||||
Fair value of stock options granted | $ | $ 105,000 | ||||||||||||||||||||
Options granted, exercise price | $ / shares | $ 2.10 | ||||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||||
Chairman of Audit Committee [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Weighted average recognition period | 5 years | ||||||||||||||||||||
Options granted | 4,167 | ||||||||||||||||||||
Options granted, exercise price | $ / shares | $ 1.92 | ||||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||||
Chairman of Compensation Committee [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Weighted average recognition period | 5 years | ||||||||||||||||||||
Options granted | 4,167 | ||||||||||||||||||||
Options granted, exercise price | $ / shares | $ 1.92 | ||||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||||
COO [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Weighted average recognition period | 5 years | ||||||||||||||||||||
Options granted | 166,667 | ||||||||||||||||||||
Fair value of stock options granted | $ | $ 100,000 | ||||||||||||||||||||
Options granted, exercise price | $ / shares | $ 1.99 | ||||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||||
CAO [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Weighted average recognition period | 5 years | ||||||||||||||||||||
Options granted | 58,333 | ||||||||||||||||||||
Fair value of stock options granted | $ | $ 35,000 | ||||||||||||||||||||
Options granted, exercise price | $ / shares | $ 1.99 | ||||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||||
CFO [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Weighted average recognition period | 5 years | ||||||||||||||||||||
Options granted | 25,000 | ||||||||||||||||||||
Fair value of stock options granted | $ | $ 15,000 | ||||||||||||||||||||
Options granted, exercise price | $ / shares | $ 1.99 | ||||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||||
Extended Options [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Share based compensation expense | $ | $ 150,000 | ||||||||||||||||||||
Options granted | 420,000 | ||||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||||
Pool of Employees [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Options granted | 69,583 | 20,417 | |||||||||||||||||||
Fair value of stock options granted | $ | $ 225,000 | $ 17,000 | |||||||||||||||||||
Vesting period | 3 years | 3 years | |||||||||||||||||||
New Employees [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Weighted average recognition period | 5 years | ||||||||||||||||||||
Options granted | 20,000 | ||||||||||||||||||||
Fair value of stock options granted | $ | $ 22,710 | ||||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||||
New Employees [Member] | Maximum [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Options granted, exercise price | $ / shares | $ 4.50 | ||||||||||||||||||||
New Employees [Member] | Minimum [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Options granted, exercise price | $ / shares | $ 3.60 | ||||||||||||||||||||
Director One[Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of directors to whom stock option granted | 2 | 8 | |||||||||||||||||||
Options granted | 16,667 | 100,000 | |||||||||||||||||||
Fair value of stock options granted | $ | $ 10,000 | $ 7,000 | |||||||||||||||||||
Options granted, exercise price | $ / shares | $ 0.2026 | ||||||||||||||||||||
Director [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Number of directors to whom stock option granted | 2 | ||||||||||||||||||||
Options granted | 200,000 | ||||||||||||||||||||
Fair value of stock options granted | $ | $ 12,000 | ||||||||||||||||||||
Options granted, exercise price | $ / shares | $ 0.20 | ||||||||||||||||||||
CAO [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Options granted | 83,334 | ||||||||||||||||||||
Fair value of stock options granted | $ | $ 60,000 | ||||||||||||||||||||
Options granted, exercise price | $ / shares | $ 2.016 | ||||||||||||||||||||
COO [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Options granted | 58,834 | ||||||||||||||||||||
Fair value of stock options granted | $ | $ 42,000 | ||||||||||||||||||||
Options granted, exercise price | $ / shares | $ 2.016 | ||||||||||||||||||||
Senior Vice President [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Options granted | 41,667 | ||||||||||||||||||||
Fair value of stock options granted | $ | $ 30,000 | ||||||||||||||||||||
Options granted, exercise price | $ / shares | $ 2.16 | ||||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||||
CFO [Member] | |||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Options granted | 25,000 | ||||||||||||||||||||
Fair value of stock options granted | $ | $ 18,000 | ||||||||||||||||||||
Options granted, exercise price | $ / shares | $ 2.016 |
Stockholders' Equity (Schedul57
Stockholders' Equity (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, 2017 | Apr. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, minimum | 40.00% | 40.00% |
Expected volatility, maximum | 43.00% | 43.00% |
Weighted-average volatility | 0.38% | 0.40% |
Risk-free interest rate | 0.00% | 0.38% |
Dividend yield | 0.00% | 0.00% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 4 years | 4 years |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 6 years 6 months | 6 years 6 months |
Stockholders' Equity (Schedul58
Stockholders' Equity (Schedule of Stock Options Activity) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Stock Incentive Plan and Stock Option Grants to Employees and Directors [Member] | ||
Number of Shares | ||
Balance Outstanding, April 30, 2016 | 1,492,593 | |
Granted | 671,666 | |
Exercised | ||
Forfeited | (44,654) | |
Expired | (23,055) | |
Balance Outstanding, April 30, 2017 | 2,096,550 | 1,492,593 |
Exercisable, April 30, 2017 | 1,963,217 | |
Weighted Average Exercise Price | ||
Balance Outstanding, April 30, 2016 | $ 2.29 | |
Granted | 2.74 | |
Exercised | ||
Forfeited | 2.19 | |
Expired | 4.13 | |
Balance Outstanding, April 30, 2017 | 2.42 | $ 2.29 |
Exercisable, April 30, 2017 | $ 2.83 | |
Weighted Average Remaining Contractual Term | ||
Balance Outstanding | 3 years 1 month 2 days | |
Granted | 4 years 6 months | |
Forfeited | 1 year 6 months | |
Exercisable, April 30, 2017 | 2 months 8 days | |
Aggregate Intrinsic Value | ||
Balance Outstanding, April 30, 2016 | ||
Balance Outstanding, April 30, 2017 | $ 2,715,101 | |
Exercisable, April 30, 2017 | $ 1,375,198 | |
Stock Option Grants To Non-Employees [Member] | ||
Number of Shares | ||
Balance Outstanding, April 30, 2016 | 16,250 | |
Granted | ||
Exercised | ||
Forfeited | ||
Expired | (16,250) | |
Balance Outstanding, April 30, 2017 | 16,250 | |
Exercisable, April 30, 2017 | ||
Weighted Average Exercise Price | ||
Balance Outstanding, April 30, 2016 | $ 3.48 | |
Granted | ||
Exercised | ||
Forfeited | ||
Expired | ||
Balance Outstanding, April 30, 2017 | $ 3.48 | |
Exercisable, April 30, 2017 | ||
Weighted Average Remaining Contractual Term | ||
Balance Outstanding | 10 months 25 days | |
Aggregate Intrinsic Value | ||
Balance Outstanding, April 30, 2016 | ||
Exercisable, April 30, 2017 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Operating Loss Carryforwards [Line Items] | ||
Net change in the valuation allowance | $ 402,888 | $ 828,574 |
Net operating loss carryforwards | $ 20,204,869 | |
Earliest Tax Year [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards, expiration | Dec. 31, 2032 | |
Years under examination | 2,013 | |
Latest Tax Year [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards, expiration | Dec. 31, 2037 | |
Years under examination | 2,016 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Tax Expense (Benefit)) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Current: | ||
Federal | ||
State | ||
Total Current Income tax expense (benefit) | ||
Deferred: | ||
Federal | ||
State | ||
Total Deferred Income tax expense (benefit) | ||
Total Income tax expense (benefit) |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Defered Income Tax Assets and Liabilities) (Details) - USD ($) | Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 |
Deferred tax assets: | |||
Net operating loss | $ 8,626,748 | $ 8,271,894 | |
Allowance for doubtful accounts (recovery) | (20,029) | 26,793 | |
Intangible assets | 201,942 | 249,099 | |
Deferred rent | 16,911 | 11,678 | |
Stock-based compensation | 820,257 | 694,900 | |
Contributions carryforward | 93 | 93 | |
Total deferred tax assets | 9,645,922 | 9,254,457 | |
Deferred tax liabilities: | |||
Property and equipment | (174,260) | (185,683) | |
Total deferred tax liabilities | (174,260) | (185,683) | |
Deferred tax assets, net | 9,471,662 | 9,068,774 | |
Valuation allowance: | |||
Valuation allowance | (9,471,662) | (9,068,774) | $ (8,240,200) |
Net deferred tax asset |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Asset Valuation Allowance Rollforward) (Details) - USD ($) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||
Valuation allowance, beginning of year | $ (9,068,774) | $ (8,240,200) |
(Increase) during period | (402,888) | (828,574) |
Valuation allowance, ending balance | $ (9,471,662) | $ (9,068,774) |
Income Taxes (Schedule of Inc63
Income Taxes (Schedule of Income Tax Reconciliation) (Details) | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
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 | (0.50%) | (0.10%) |
Change in valuation allowance | (36.50%) | (36.90%) |
Effective income tax rate | 0.00% | 0.00% |
Concentrations (Details)
Concentrations (Details) | Apr. 30, 2017USD ($) |
Risks and Uncertainties [Abstract] | |
Amount of cash balance uninsured by FDIC | $ 2,687,461 |
Fair Value Measurements - War65
Fair Value Measurements - Warrant Derivative Liability (Narrative) (Details) | Jan. 31, 2017shares |
Warrants With Price Protection [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Number of warrants containing price protection | 62,500 |
Fair Value Measurements - War66
Fair Value Measurements - Warrant Derivative Liability (Measured On A Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] | Apr. 30, 2017USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Warrant Derivative Liability | $ 52,500 |
Fair Value, Inputs, Level 1 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Warrant Derivative Liability | |
Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Warrant Derivative Liability | |
Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Warrant Derivative Liability | $ 52,500 |
Fair Value Measurements - War67
Fair Value Measurements - Warrant Derivative Liability (Activity in Level 3) (Details) | 12 Months Ended |
Apr. 30, 2017USD ($) | |
Fair Value Disclosures [Abstract] | |
Balance April 30, 2016 | |
Initial valuation of warrant derivative liability | 52,500 |
Change in valuation of warrant derivative liability | |
Balance April 30, 2017 | $ 52,500 |
Pending Acquisition (Details)
Pending Acquisition (Details) - USD ($) | Mar. 08, 2017 | Apr. 30, 2017 | Apr. 30, 2016 |
Business Combinations [Abstract] | |||
Acquisition price for university | $ 9,000,000 | ||
Loan in connection with acquisition | $ 900,000 | ||
Interest rate for acquisition loan | 8.00% | ||
Cash due at closing | $ 2,500,000 | ||
Proceeds from lines of credit | $ 900,000 | $ 247,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Jun. 11, 2017 | May 13, 2017 | Mar. 08, 2017 | Jun. 23, 2016 | Jun. 08, 2015 | Jul. 25, 2017 | Jun. 20, 2017 | May 24, 2017 | May 18, 2017 | Apr. 30, 2017 | Jul. 24, 2017 | Jun. 30, 2016 | Nov. 30, 2015 |
Subsequent Event [Line Items] | |||||||||||||
Vesting period | 6 months | ||||||||||||
Stock units granted | 25,000 | ||||||||||||
Fair value of grant | $ 50,400 | ||||||||||||
Acquisition price for university | $ 9,000,000 | ||||||||||||
Warrant [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Warrants granted | 62,500 | ||||||||||||
Warrants granted, exercise price | $ 2.40 | ||||||||||||
2012 Equity Incentive Plan [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Equity Incentive Plan, shares authorized | 2,108,333 | 1,691,667 | |||||||||||
Chief Operating Officer [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Vesting period | 3 years | ||||||||||||
Chief Academic Officer [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Vesting period | 3 years | ||||||||||||
Chief Financial Officer [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Vesting period | 3 years | ||||||||||||
Subsequent Event [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Acquisition price for university | $ 9,000,000 | ||||||||||||
Percentage of investment amount paid by company | 1.50% | ||||||||||||
Investment amount paid by company to investors | $ 112,500 | ||||||||||||
Subsequent Event [Member] | Runway Growth Credit Fund [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Secured loan | $ 10,000,000 | ||||||||||||
Debt term | 4 years | ||||||||||||
LIBOR interest rate | 10% over 3-month LIBOR per annum interest rate | ||||||||||||
Interest rate floor | 10.00% | ||||||||||||
Drawn amount | $ 5,000,000 | ||||||||||||
Remaining amount | $ 5,000,000 | ||||||||||||
Subsequent Event [Member] | Runway Growth Credit Fund [Member] | Warrant [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Debt term | 5 years | ||||||||||||
Warrants granted | 224,174 | ||||||||||||
Warrants granted, exercise price | $ 6.87 | ||||||||||||
Subsequent Event [Member] | 2012 Equity Incentive Plan [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Equity Incentive Plan, shares authorized | 3,500,000 | ||||||||||||
Subsequent Event [Member] | Executive Officer [Member] | 2012 Equity Incentive Plan [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Stock options issued during period | 500,000 | ||||||||||||
Options Term | 5 years | ||||||||||||
Vesting period | 3 years | ||||||||||||
Exercisable price | $ 4.90 | ||||||||||||
Subsequent Event [Member] | Chairman and Chief Executive Officer [Member] | 2012 Equity Incentive Plan [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Stock units granted | 200,000 | ||||||||||||
Fair value of grant | $ 282,000 | ||||||||||||
Subsequent Event [Member] | Chief Operating Officer [Member] | Maximum [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Annual compensation payable to officer | $ 300,000 | ||||||||||||
Subsequent Event [Member] | Chief Operating Officer [Member] | 2012 Equity Incentive Plan [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Stock units granted | 200,000 | ||||||||||||
Fair value of grant | $ 282,000 | ||||||||||||
Subsequent Event [Member] | Chief Academic Officer [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Stock options issued during period | 30,000 | ||||||||||||
Options Term | 5 years | ||||||||||||
Vesting period | 3 years | ||||||||||||
Exercisable price | $ 6.28 | ||||||||||||
Fair value of grant | $ 54,000 | ||||||||||||
Subsequent Event [Member] | Chief Academic Officer [Member] | 2012 Equity Incentive Plan [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Stock units granted | 70,000 | ||||||||||||
Fair value of grant | $ 98,700 | ||||||||||||
Subsequent Event [Member] | Chief Financial Officer [Member] | Maximum [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Annual compensation payable to officer | $ 250,000 | ||||||||||||
Subsequent Event [Member] | Chief Financial Officer [Member] | 2012 Equity Incentive Plan [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Stock units granted | 30,000 | ||||||||||||
Fair value of grant | $ 42,300 |