Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Oct. 31, 2017 | Dec. 12, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 31, 2017 | |
Entity Registrant Name | ASPEN GROUP, INC. | |
Entity Central Index Key | 1,487,198 | |
Current Fiscal Year End Date | --04-30 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 14,816,205 | |
Trading Symbol | ASPU |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Oct. 31, 2017 | Apr. 30, 2017 |
Current assets: | ||
Cash | $ 5,379,694 | $ 2,756,217 |
Accounts receivable, net of allowance of $414,364 and $328,864, respectively | 6,390,633 | 4,434,862 |
Prepaid expenses | 172,923 | 133,531 |
Promissory note receivable | 900,000 | 900,000 |
Other receivables | 470,049 | 81,464 |
Accrued interest receivable | 44,800 | 8,000 |
Total current assets | 13,358,099 | 8,314,074 |
Property and equipment: | ||
Call center equipment | 82,606 | 53,748 |
Computer and office equipment | 105,717 | 103,649 |
Furniture and fixtures | 282,932 | 255,984 |
Software | 2,459,932 | 2,131,344 |
Total | 2,931,187 | 2,544,725 |
Less accumulated depreciation and amortization | (1,192,350) | (1,090,010) |
Total property and equipment, net | 1,738,837 | 1,454,715 |
Courseware, net | 143,254 | 145,477 |
Accounts receivable, secured - related party, net of allowance of $625,963, and $625,963, respectively | 45,329 | 45,329 |
Long term contractual receivable | 753,326 | 657,542 |
Other assets | 89,609 | 56,417 |
Total assets | 16,128,454 | 10,673,554 |
Current liabilities: | ||
Accounts payable | 934,367 | 756,701 |
Accrued expenses | 246,415 | 262,911 |
Deferred revenue | 2,314,163 | 1,354,989 |
Refunds due students | 734,938 | 310,576 |
Deferred rent, current portion | 7,550 | 11,200 |
Convertible notes payable, current portion | 50,000 | 50,000 |
Total current liabilities | 4,287,433 | 2,746,377 |
Senior secured loan payable, net of discount | 4,302,144 | |
Warrant liability | 52,500 | 52,500 |
Deferred rent | 30,478 | 34,437 |
Total liabilities | 8,672,555 | 2,833,314 |
Commitments and contingencies - See Note 6 | ||
Stockholders' equity: | ||
Common stock, $0.001 par value; 250,000,000 shares authorized, 13,613,996 issued and 13,597,329 outstanding at October 31, 2017, 13,504,012 issued and 13,487,345 outstanding at April 30, 2017 | 13,613 | 13,504 |
Additional paid-in capital | 34,471,602 | 33,607,423 |
Treasury stock (16,667 shares) | (70,000) | (70,000) |
Accumulated deficit | (26,959,316) | (25,710,687) |
Total stockholders' equity | 7,455,899 | 7,840,240 |
Total liabilities and stockholders' equity | $ 16,128,454 | $ 10,673,554 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Oct. 31, 2017 | Apr. 30, 2017 |
Assets | ||
Allowance for doubtful accounts, current accounts receivables | $ 414,364 | $ 328,864 |
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 | 13,613,996 | 13,504,012 |
Common stock, shares outstanding | 13,597,329 | 13,487,345 |
Treasury stock, shares | 16,667 | 16,667 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Income Statement [Abstract] | ||||
Revenues | $ 4,851,639 | $ 3,465,026 | $ 9,094,525 | $ 6,221,841 |
Operating expenses | ||||
Cost of revenues (exclusive of depreciation and amortization shown separately below) | 1,864,659 | 1,234,856 | 3,617,150 | 2,130,915 |
General and administrative | 3,166,391 | 1,913,403 | 6,297,725 | 4,095,481 |
Depreciation and amortization | 145,355 | 139,005 | 284,074 | 290,055 |
Total operating expenses | 5,176,405 | 3,287,264 | 10,198,949 | 6,516,451 |
Operating (loss) income | (324,766) | 177,762 | (1,104,424) | (294,610) |
Other expense: | ||||
Other income | 23,111 | 1,307 | 41,888 | 1,364 |
Interest expense | (179,896) | (62,528) | (186,093) | (95,661) |
Total expense, net | (156,785) | (61,221) | (144,205) | (94,297) |
(Loss) income before income taxes | (481,551) | 116,541 | (1,248,629) | (388,907) |
Income tax expense (benefit) | ||||
Net (loss) income | $ (481,551) | $ 116,541 | $ (1,248,629) | $ (388,907) |
Net (loss) income per share allocable to common stockholders - basic | $ (0.04) | $ 0.01 | $ (0.09) | $ (0.03) |
Net (loss) income per share allocable to common stockholders - diluted | $ (0.04) | $ 0.01 | $ (0.09) | $ (0.03) |
Weighted average number of common shares outstanding: basic | 13,587,535 | 11,479,845 | 13,548,672 | 11,402,751 |
Weighted average number of common shares outstanding: diluted | 13,587,535 | 12,140,263 | 13,548,672 | 11,402,751 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - 6 months ended Oct. 31, 2017 - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] | Total |
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 | ||||
Fees associated with equity raise | (4,707) | (4,707) | |||
Stock-based compensation | 303,924 | 303,924 | |||
Common stock issued for cashless warrant exercises | $ 79 | (79) | |||
Common stock issued for cashless warrant exercises, shares | 78,528 | ||||
Common stock issued for warrants exercised for cash | $ 14 | 33,584 | 33,598 | ||
Common stock issued for warrants exercised for cash, shares | 14,858 | ||||
Common stock issued for stock options exercised | $ 16 | 53,029 | 53,045 | ||
Common stock issued for stock options exercised, shares | 16,598 | ||||
Warrants issued with senior secured term loan | 478,428 | 478,428 | |||
Net loss | (1,248,629) | (1,248,629) | |||
Balance at Oct. 31, 2017 | $ 13,613 | $ 34,471,602 | $ (70,000) | $ (26,959,316) | $ 7,455,899 |
Balance, shares at Oct. 31, 2017 | 13,613,996 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (1,248,629) | $ (388,907) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Bad debt expense | 85,500 | |
Depreciation and amortization | 284,074 | 290,055 |
Stock-based compensation | 303,924 | 157,335 |
Amortization of debt discounts | 6,250 | |
Amortization of prepaid shares for services | 35,000 | |
Warrant buyback expense | 206,000 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,137,055) | (1,304,754) |
Other receivables | (388,585) | |
Prepaid expenses | (39,392) | 20,118 |
Accrued interest receivable | (36,800) | |
Other assets | (33,192) | (23,240) |
Accounts payable | 177,666 | 609,562 |
Accrued expenses | (16,496) | 55,974 |
Deferred rent | (7,609) | 20,513 |
Refunds due students | 424,362 | 167,344 |
Deferred revenue | 959,174 | 175,073 |
Net cash (used in) provided by operating activities | (1,673,058) | 26,323 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (540,873) | (382,490) |
Purchases of courseware | (25,100) | (6,550) |
Net cash used in investing activities | (565,973) | (389,040) |
Cash flows from financing activities: | ||
Warrant Buyback | (400,000) | |
Borrowing from bank line of credit | 247,000 | |
Repayment of bank line of credit | (248,783) | |
Third party line of credit | 750,000 | |
Third party line of credit financing costs | (60,000) | |
Senior secured term loan - net | 4,780,572 | |
Proceeds of warrant exercises | 33,598 | |
Proceeds of stock options exercised | 53,045 | |
Disbursements for equity offering costs | (4,707) | (1,917) |
Net cash provided by financing activities | 4,862,508 | 286,300 |
Net increase (decrease) in cash | 2,623,477 | (76,417) |
Cash at beginning of period | 2,756,217 | 783,796 |
Cash at end of period | 5,379,694 | 707,379 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 135,323 | 67,656 |
Cash paid for income taxes | ||
Supplemental disclosure of non-cash investing and financing activities: | ||
Common stock issued for services | 75,002 | |
Warrants issued as part of senior secured loan | $ 478,428 | $ 52,500 |
Nature of Operations and Liquid
Nature of Operations and Liquidity | 6 Months Ended |
Oct. 31, 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. 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. Aspens 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 March 2014, Aspen University unveiled a monthly payment plan aimed at reversing the college-debt sentence plaguing working-class Americans. The monthly payment plan offers bachelor students (except RN to BSN) the opportunity to pay $250/month for 72 months ($18,000), nursing bachelor students (RN to BSN) $250/month for 39 months ($9,750), master students $325/month for 36 months ($11,700) and doctoral students $375 per month for 72 months ($27,000), interest free, thereby giving students 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. On August 22, 2017, the DOE informed Aspen University of its determination that the institution has qualified to participate under the Higher Education Act of 1965, as amended (HEA) and the Federal student financial assistance programs (Title IV, HEA programs), and set a subsequent program participation agreement reapplication date of March 31, 2021. Basis of Presentation A. Interim Financial Statements The interim consolidated financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). In the opinion of the Companys management, all adjustments (consisting of normal recurring adjustments and reclassifications and non-recurring adjustments) necessary to present fairly our results of operations for the three and six months ended October 31, 2017 and 2016, our cash flows for the six months ended October 31, 2017 and 2016, and our financial position as of October 31, 2017 have been made. The results of operations for such interim periods are not necessarily indicative of the operating results to be expected for the full year. Certain information and disclosures normally included in the notes to the annual consolidated financial statements have been condensed or omitted from these interim consolidated financial statements. Accordingly, these interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Report on Form 10-K for the period ended April 30, 2017 as filed with the SEC on July 25, 2017. The April 30, 2017 balance sheet is derived from those statements. B. Liquidity At October 31, 2017, the Company had a cash balance of $5,379,694. On July 25, 2017, the Company signed a $10 million senior secured term loan with Runway Growth Capital Fund (formerly known as GSV Growth Capital Fund). The Company drew $5 million under the facility at closing, with an additional $2.5 million drawn following the closing of the Companys 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. (See Notes 5 and 8). |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Oct. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2. Significant Accounting Policies Principles of Consolidation The unaudited consolidated financial statements include the accounts of Aspen Group, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the unaudited consolidated financial statements in conformity with generally accepted accounting principles 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 loss contingencies, valuation of stock-based compensation and the valuation allowance on deferred tax assets. Cash and Cash Equivalents For the purposes of the unaudited consolidated statements of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents at October 31, 2017 and April 30, 2017. 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 October 31, 2017. As of October 31, 2017 and April 30, 2017, there were deposits totaling $5,486,370 and $2,687,461, 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 1Observable inputs that reflect quoted market prices (unadjusted) for identical assets and liabilities in active markets; Level 2Observable inputs, other than quoted market prices, that are either directly or indirectly observable in the marketplace for identical or similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities; and Level 3Unobservable inputs that are supported by little or no market activity that are significant to the fair value of assets or liabilities. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. Refunds Due Students The Company receives Title IV funds from the DOE to cover tuition and living expenses. After deducting tuition and fees, the Company sends checks for the remaining balances to the students. Revenue Recognition and Deferred Revenue Revenues consist primarily of tuition and fees derived from courses taught by the Company online as well as from related educational resources that the Company provides to its students, such as access to our online materials and learning management system. Tuition revenue is recognized pro-rata over the applicable period of instruction. The Company allows a student to make three monthly tuition payments during each class. The Company maintains an institutional tuition refund policy, which provides for all or a portion of tuition to be refunded if a student withdraws during stated refund periods. Certain states in which students reside impose separate, mandatory refund policies, which override the Companys 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 Companys accounting policies revenue is not recognized with respect to amounts that could potentially be refunded. The Companys 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 representing 2.2% of the revenues for the quarter ended October 31, 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. Net Income (Loss) Per Share Net income (loss) per common share is based on the weighted average number of common shares outstanding during each period. Options to purchase 2,669,286 and 1,849,832 shares of common stock, warrants to purchase 1,001,557 and 934,555 shares of common stock, and $50,000 and $350,000 of convertible debt (convertible into 4,167 and 75,596 shares of common stock, respectively) were outstanding during the three months ending October 31, 2017 and 2016, respectively, but during certain periods 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, as noted in the chart below. Basic and diluted income per share for the three months ended October 31, 2016, were calculated as follows: Basic Diluted Numerator Net income applicable to common stock $ 116,541 $ 116,541 Convertible debt interest 8,021 $ 116,541 $ 124,562 Denominator Weighted average common shares outstanding 11,479,845 11,479,845 Convertible debt 75,595 Warrants and options 584,823 11,479,845 12,140,263 Net income per share $ 0.01 $ 0.01 Recent Accounting Pronouncements There have been no new relevant pronouncements since those disclosed in the April 30, 2017 Consolidated Financial Statements. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Oct. 31, 2017 | |
Property and equipment: | |
Property and Equipment | Note 3. Property and Equipment Property and equipment consisted of the following at October 31, 2017 and April 30, 2017: October 31, April 30, 2017 2017 Call center hardware $ 82,606 $ 53,748 Computer and office equipment 105,717 103,649 Furniture and fixtures 282,932 255,984 Software 2,459,932 2,131,344 2,931,187 2,544,725 Accumulated depreciation and amortization (1,192,350 ) (1,090,010 ) Property and equipment, net $ 1,738,837 $ 1,454,715 Software consisted of the following at October 31, 2017 and April 30, 2017: October 31, April 30, 2017 2016 Software $ 2,459,932 $ 2,131,344 Accumulated amortization (1,065,740 ) (994,017 ) Software, net $ 1,394,192 $ 1,137,327 Depreciation and Amortization expense for all Property and Equipment as well as the portion for just software is presented below for three and six months ended October 31, 2017 and 2016: For the For the Three Months Ended October 31, Six Months Ended October 31, 2017 2016 2017 2016 Depreciation and Amortization Expense $ 131,669 $ 123,906 $ 256,751 $ 259,054 Software Amortization Expense $ 112,522 $ 112,888 $ 220,129 $ 237,067 The following is a schedule of estimated future amortization expense of software at October 31, 2017: Year Ending April 30, 2018 $ 229,041 2019 395,009 2020 325,167 2021 252,660 2022 192,315 Total $ 1,394,192 |
Courseware
Courseware | 6 Months Ended |
Oct. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Courseware | Note 4. Courseware Courseware costs capitalized were $25,100 and $6,550 for the six months ended October 31, 2017 and 2016 respectively. When Courseware becomes fully amortized it is written off against the accumulated amortization. There is no expense impact to these write-offs. Courseware consisted of the following at October 31, 2017 and April 30, 2017: October 31, April 30, 2017 2017 Courseware $ 279,677 $ 271,777 Accumulated amortization (136,423 ) (126,300 ) Courseware, net $ 143,254 $ 145,477 Amortization expense of courseware for the three and six months ended October 31, 2017 and 2016: For the For the Three Months Ended October 31, Six Months Ended October 31, 2017 2016 2017 2016 Amortization Expense $ 13,686 $ 15,099 $ 27,323 $ 31,001 The following is a schedule of estimated future amortization expense of courseware at October 31, 2017: Year Ending April 30, 2018 $ 27,494 2019 54,489 2020 40,647 2021 13,683 2022 6,941 Total $ 143,254 |
Senior Secured Term Loan
Senior Secured Term Loan | 6 Months Ended |
Oct. 31, 2017 | |
Debt Disclosure [Abstract] | |
Senior Secured Term Loan | Note 5. Senior Secured Term Loan On July 25, 2017, the Company signed a $10 million senior secured term loan with Runway Growth Capital Fund (formerly known as GSV Growth Capital Fund). The Company drew $5 million under the facility at closing, with $2.5 million to be drawn following the closing of the Companys 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. (See Note 8) The Company will be required to begin making principal repayments upon the 24-month anniversary of the initial closing (July 24, 2019), and each month thereafter will repay 1/24th of the total loan amount outstanding. Should the Company achieve both annualized revenue growth of at least 30% and operating margin of at least 7.5% for any 12-month trailing period, then at the quarter-end of that 12-month trailing period, the Company may elect to extend the interest only period for the quarter immediately following the 12-month trailing period throughout the duration of the loan. Additionally, the Company paid a 0.25% origination fee and will pay another 0.25% origination fee upon the second closing, will be subject to a final payment fee of 3.25% of the principal lent, and issued 224,174 5-year warrants at an exercise price of $6.87. The relative fair value of the warrants was $478,428 and was recorded as debt discount along with other direct costs of the term loan and is being amortized to interest expense over the term of the loan. (See Note 7) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Oct. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 6. Commitments and Contingencies Employment Agreements From time to time, the Company enters into employment agreements with certain of its employees. These agreements typically include bonuses, some of which are performance-based in nature. As of October 31, 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 October 31, 2017, there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of our operations. Regulatory Matters The Companys 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. On August 22, 2017, the DOE informed Aspen University of its determination that the institution has qualified to participate under the HEA and the Federal student financial assistance programs (Title IV, HEA programs), and set a subsequent program participation agreement reapplication date of March 31, 2021. The HEA requires accrediting agencies to review many aspects of an institution's operations in order to ensure that the education offered is of sufficiently high quality to achieve satisfactory outcomes and that the institution is complying with accrediting standards. Failure to demonstrate compliance with accrediting standards may result in the imposition of probation, the requirements to provide periodic reports, the loss of accreditation or other penalties if deficiencies are not remediated. Because Aspen University operates in a highly regulated industry, it may be subject from time to time to audits, investigations, claims of noncompliance or lawsuits by governmental agencies or third parties, which allege statutory violations, regulatory infractions or common law causes of action. Return of Title IV Funds An institution participating in Title IV Programs must correctly calculate the amount of unearned Title IV Program funds that have been disbursed to students who withdraw from their educational programs before completion and must return those unearned funds in a timely manner, no later than 45 days of the date the school determines that the student has withdrawn. Under Department regulations, failure to make timely returns of Title IV Program funds for 5% or more of students sampled on the institution's annual compliance audit in either of its two most recently completed fiscal years can result in the institution having to post a letter of credit in an amount equal to 25% of its required Title IV returns during its most recently completed fiscal year. If unearned funds are not properly calculated and returned in a timely manner, an institution is also subject to monetary liabilities or an action to impose a fine or to limit, suspend or terminate its participation in Title IV Programs. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Oct. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Note 7. Stockholders Equity Common Stock 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 and was recorded in general and administrative expenses during the quarter ended July 31, 2017. Warrants A summary of the Companys warrant activity during the six months ended October 31, 2017 is presented below: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Warrants Shares Price Term Value Balance Outstanding, April 30, 2017 914,123 $ 2.82 1.6 $ 1,991,067 Granted 224,174 6.87 4.75 Exercised (125,404 ) 0.27 Forfeited Expired (11,336 ) Balance Outstanding, October 31, 2017 1,001,557 $ 3.79 1.99 $ 4,169,798 Exercisable, October 31, 2017 1,001,557 $ 3.79 1.99 $ 4,169,798 In connection with the Senior Secured Term Loan that was finalized on July 25, 2017, the Company issued 224,174 5-year warrants at an exercise price of $6.87. (See Note 5) The Company issued 93,386 shares of Common Stock in conjunction with the cash and cashless exercise of 125,404 warrants. The Company received $33,598 in conjunction with the cash exercises. 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 shares effective November 2015, 2,108,333 shares effective June 2016 and 3,500,000 shares effective July 2017, 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 October 31, 2017, there were 830,714 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 Companys stock price over the expected term, expected risk-free interest rate over the expected option term, expected dividend yield rate over the expected option term, and an estimate of expected forfeiture rates. The Company believes this valuation methodology is appropriate for estimating the fair value of stock options granted to employees and directors which are subject to ASC Topic 718 requirements. These amounts are estimates and thus may not be reflective of actual future results, nor amounts ultimately realized by recipients of these grants. The Company recognizes compensation on a straight-line basis over the requisite service period for each award. The following table summarizes the assumptions the Company utilized to record compensation expense for stock options granted to employees during the three months ended October 31, 2017 and 2016. October 31, 2017 2016 Expected life (years) 4-6.5 4 - 6.5 Expected volatility 30% - 46 % 40% - 43 % Weighted-average volatility 38.6 % 40.0 % Risk-free interest rate .38 % 0.38 % Dividend yield 0.00 % 0.00 % Expected forfeiture rate n/a n/a The Company utilized the simplified method to estimate the expected life for stock options granted to employees. The simplified method was used as the Company does not have sufficient historical data regarding stock option exercises. The expected volatility is based on the average of the expected volatilities from the most recent audited financial statements available for comparative public companies that are deemed to be similar in nature to the Company. The risk-free interest rate is based on the U.S. Treasury yields with terms equivalent to the expected life of the related option at the time of the grant. Dividend yield is based on historical trends. While the Company believes these estimates are reasonable, the compensation expense recorded would increase if the expected life was increased, a higher expected volatility was used, or if the expected dividend yield increased. A summary of the Companys stock option activity for employees and directors during the six months ended October 31, 2017, is presented below: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Shares Price Term Value Balance Outstanding, April 30, 2017 2,097,384 $ 2.42 3.1 $ 7,267,892 Granted 588,500 5.07 5.0 843,750 Exercised (16,598 ) 4.20 0.0 Forfeited Expired Balance Outstanding, October 31, 2017 2,669,286 $ 2.99 3.2 $ 17,291,782 Exercisable, October 31, 2017 1,449,136 $ 2.25 1.3 $ 11,249,199 On May 13, 2017, the Company granted its executive officers a total of 500,000 five-year options to purchase shares of the Companys common stock under the 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. In May 2017, the Company issued 5,500 stock options to various employees at exercise prices ranging from $4.95 to $5.10 per share. Effective June 11, 2017, the Company granted the Chief Academic Officer 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 vesting date. The options are exercisable at $6.28 per share and the fair value is $54,000. On August 21, 2017, 53,000 options were issued to 26 employees with an exercise price of $5.95 per share and a fair value of $90,630. The company issued 16,598 shares of common stock in conjunction with the exercise of 16,598 stock options. The company received $53,045 related to these exercises. As of October 31, 2017, there was $1,141,751 of unrecognized compensation costs related to nonvested share-based compensation arrangements. That cost is expected to be recognized over a weighted-average period of 1.53 years. The Company recorded compensation expense of $303,924 and $157,335 for the six months ended October 31, 2017 and 2016, respectively, in connection with stock options. Stock Option Grants to Non-Employees There were no stock options granted to non-employees during six months ended October 31, 2017 and 2016. The Company recorded no compensation expense for the six months ended October 31, 2017 and 2016. There was no unrecognized compensation cost at October 31, 2017. All remaining options expired during the year ended April 30, 2017. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Oct. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 8. Subsequent Events On December 1, 2017, the Company completed the acquisition of the operating assets of United States University (USU), a regionally accredited for-profit university based in San Diego, for consideration of: (i) approximately $1,150,000 in cash (after deduction of closing adjustments including the loan referred to in clause (iii)), (ii) the issuance of 1,203,209 shares of the Companys common stock, (iii) the forgiveness of an outstanding loan in the amount of principal and accrued interest of $953,400, and (iv) $2.0 million in the form of a convertible note (the Note) bearing 8% annual interest that matures over a two-year period after the closing. The common shares were valued at the quoted trading price on the acquisition date of $8.49 per share for a total value of approximately $10.2 million. At the option of the Note holder, on each of the first and second anniversaries of the closing date, $1,000,000 of principal and accrued interest under the Note will be convertible into shares of the Companys common stock at the then-current market prices (subject to a floor of $2.00 per share) or become payable in cash. In addition, the Company assumed certain liabilities, principally operating liabilities. On December 1, 2017, the value of the USU acquisition was approximately $14.7 million, which consisted of substantially all intangibles and goodwill. Aside from intangibles and goodwill, assets acquired were approximately $1.2 Million and liabilities assumed were approximately $1.1 million. The Company is in the process of completing its accounting and valuations of USU and accordingly, more detailed disclosures will be provided in future filings. The estimated fair values and allocation of purchase price noted above is provisional pending the final valuation of the assets acquired and liabilities assumed. The acquisition of United States University will allow Aspen Group to achieve its vision of making college affordable again on a much broader scale. In connection with the asset purchase, the Company has also agreed to appoint Oksana Malysheva to the Companys board of directors which will occur at the Companys next board meeting which is scheduled for December 15, 2017. She was the controlling person of the former owner of USU and was designated by them in accordance with rights granted under the Asset Purchase Agreement. On December 4, 2017, in connection with the closing of the acquisition of substantially all the assets of the USU, the Company borrowed another $2.5 million under the credit facility with Runway Growth Fund. |
Significant Accounting Polici15
Significant Accounting Policies (Policies) | 6 Months Ended |
Oct. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The unaudited consolidated financial statements include the accounts of Aspen Group, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the unaudited consolidated financial statements in conformity with generally accepted accounting principles 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 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 unaudited consolidated statements of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents at October 31, 2017 and April 30, 2017. 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 October 31, 2017. As of October 31, 2017 and April 30, 2017, there were deposits totaling $5,486,370 and $2,687,461, 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 1Observable inputs that reflect quoted market prices (unadjusted) for identical assets and liabilities in active markets; Level 2Observable inputs, other than quoted market prices, that are either directly or indirectly observable in the marketplace for identical or similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities; and Level 3Unobservable inputs that are supported by little or no market activity that are significant to the fair value of assets or liabilities. The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. |
Refunds Due Students | Refunds Due Students The Company receives Title IV funds from the DOE to cover tuition and living expenses. After deducting tuition and fees, the Company sends checks for the remaining balances to the students. |
Revenue Recognition and Deferred Revenue | Revenue Recognition and Deferred Revenue Revenues consist primarily of tuition and fees derived from courses taught by the Company online as well as from related educational resources that the Company provides to its students, such as access to our online materials and learning management system. Tuition revenue is recognized pro-rata over the applicable period of instruction. The Company allows a student to make three monthly tuition payments during each class. The Company maintains an institutional tuition refund policy, which provides for all or a portion of tuition to be refunded if a student withdraws during stated refund periods. Certain states in which students reside impose separate, mandatory refund policies, which override the Companys 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 Companys accounting policies revenue is not recognized with respect to amounts that could potentially be refunded. The Companys 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 representing 2.2% of the revenues for the quarter ended October 31, 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. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Net income (loss) per common share is based on the weighted average number of common shares outstanding during each period. Options to purchase 2,669,286 and 1,849,832 shares of common stock, warrants to purchase 1,001,557 and 934,555 shares of common stock, and $50,000 and $350,000 of convertible debt (convertible into 4,167 and 75,596 shares of common stock, respectively) were outstanding during the three months ending October 31, 2017 and 2016, respectively, but during certain periods 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, as noted in the chart below. Basic and diluted income per share for the three months ended October 31, 2016, were calculated as follows: Basic Diluted Numerator Net income applicable to common stock $ 116,541 $ 116,541 Convertible debt interest 8,021 $ 116,541 $ 124,562 Denominator Weighted average common shares outstanding 11,479,845 11,479,845 Convertible debt 75,595 Warrants and options 584,823 11,479,845 12,140,263 Net income per share $ 0.01 $ 0.01 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There have been no new relevant pronouncements since those disclosed in the April 30, 2017 Consolidated Financial Statements. |
Significant Accounting Polici16
Significant Accounting Policies (Tables) | 6 Months Ended |
Oct. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Basic and Diluted Income per Share | Basic and diluted income per share for the three months ended October 31, 2016, were calculated as follows: Basic Diluted Numerator Net income applicable to common stock $ 116,541 $ 116,541 Convertible debt interest 8,021 $ 116,541 $ 124,562 Denominator Weighted average common shares outstanding 11,479,845 11,479,845 Convertible debt 75,595 Warrants and options 584,823 11,479,845 12,140,263 Net income per share $ 0.01 $ 0.01 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Oct. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |
Schedule of Property and Equipment | Property and equipment consisted of the following at October 31, 2017 and April 30, 2017: October 31, April 30, 2017 2017 Call center hardware $ 82,606 $ 53,748 Computer and office equipment 105,717 103,649 Furniture and fixtures 282,932 255,984 Software 2,459,932 2,131,344 2,931,187 2,544,725 Accumulated depreciation and amortization (1,192,350 ) (1,090,010 ) Property and equipment, net $ 1,738,837 $ 1,454,715 |
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 three and six months ended October 31, 2017 and 2016: For the For the Three Months Ended October 31, Six Months Ended October 31, 2017 2016 2017 2016 Depreciation and Amortization Expense $ 131,669 $ 123,906 $ 256,751 $ 259,054 Software Amortization Expense $ 112,522 $ 112,888 $ 220,129 $ 237,067 |
Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Schedule of Intangible Asset | Software consisted of the following at October 31, 2017 and April 30, 2017: October 31, April 30, 2017 2016 Software $ 2,459,932 $ 2,131,344 Accumulated amortization (1,065,740 ) (994,017 ) Software, net $ 1,394,192 $ 1,137,327 |
Schedule of Estimated Future Amortization Expense | The following is a schedule of estimated future amortization expense of software at October 31, 2017: Year Ending April 30, 2018 $ 229,041 2019 395,009 2020 325,167 2021 252,660 2022 192,315 Total $ 1,394,192 |
Courseware (Tables)
Courseware (Tables) - Courseware [Member] | 6 Months Ended |
Oct. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Intangible Asset | Courseware consisted of the following at October 31, 2017 and April 30, 2017: October 31, April 30, 2017 2017 Courseware $ 279,677 $ 271,777 Accumulated amortization (136,423 ) (126,300 ) Courseware, net $ 143,254 $ 145,477 |
Schedule of Amortization Expense of Intangible Assets | Amortization expense of courseware for the three and six months ended October 31, 2017 and 2016: For the For the Three Months Ended October 31, Six Months Ended October 31, 2017 2016 2017 2016 Amortization Expense $ 13,686 $ 15,099 $ 27,323 $ 31,001 |
Schedule of Estimated Future Amortization Expense | The following is a schedule of estimated future amortization expense of courseware at October 31, 2017: Year Ending April 30, 2018 $ 27,494 2019 54,489 2020 40,647 2021 13,683 2022 6,941 Total $ 143,254 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Oct. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Warrants Activity | A summary of the Companys warrant activity during the six months ended October 31, 2017 is presented below: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Warrants Shares Price Term Value Balance Outstanding, April 30, 2017 914,123 $ 2.82 1.6 $ 1,991,067 Granted 224,174 6.87 4.75 Exercised (125,404 ) 0.27 Forfeited Expired (11,336 ) Balance Outstanding, October 31, 2017 1,001,557 $ 3.79 1.99 $ 4,169,798 Exercisable, October 31, 2017 1,001,557 $ 3.79 1.99 $ 4,169,798 |
Schedule of Assumptions Used In Valuing Stock Options | The following table summarizes the assumptions the Company utilized to record compensation expense for stock options granted to employees during the three months ended October 31, 2017 and 2016. October 31, 2017 2016 Expected life (years) 4-6.5 4 - 6.5 Expected volatility 30% - 46 % 40% - 43 % Weighted-average volatility 38.6 % 40.0 % Risk-free interest rate .38 % 0.38 % Dividend yield 0.00 % 0.00 % Expected forfeiture rate n/a n/a |
Schedule of Stock Option Activity | A summary of the Companys stock option activity for employees and directors during the six months ended October 31, 2017, is presented below: Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Shares Price Term Value Balance Outstanding, April 30, 2017 2,097,384 $ 2.42 3.1 $ 7,267,892 Granted 588,500 5.07 5.0 843,750 Exercised (16,598 ) 4.20 0.0 Forfeited Expired Balance Outstanding, October 31, 2017 2,669,286 $ 2.99 3.2 $ 17,291,782 Exercisable, October 31, 2017 1,449,136 $ 2.25 1.3 $ 11,249,199 |
Nature of Operations and Liqu20
Nature of Operations and Liquidity (Overview) (Details) - USD ($) | 1 Months Ended | 6 Months Ended |
Mar. 31, 2014 | Oct. 31, 2017 | |
Product Information [Line Items] | ||
Percentage of professors with doctorate degrees | 54.00% | |
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 |
Nature of Operations and Liqu21
Nature of Operations and Liquidity (Liquidity) (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |||
Jul. 25, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | |
Debt Instrument [Line Items] | |||||
Approximate cash position | $ 5,379,694 | $ 707,379 | $ 2,756,217 | $ 783,796 | |
Proceeds from term loan | $ 4,780,572 | ||||
Secured Debt [Member] | Runway Growth Credit Fund [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument face amount | $ 10,000,000 | ||||
Additional amount drown | 2,500,000 | ||||
Proceeds from term loan | $ 5,000,000 | ||||
LIBOR interest rate | 10.00% | ||||
Debt instrument term | 4 years |
Significant Accounting Polici22
Significant Accounting Policies (Narrative) (Details) - USD ($) | 6 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Apr. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Cash insured by FDIC | $ 250,000 | ||
Amount of cash balance uninsured by FDIC | $ 5,486,370 | $ 2,687,461 | |
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 2,669,286 | 1,849,832 | |
Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 1,001,557 | 934,555 | |
Convertible Debt [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 4,167 | 75,596 | |
Convertible debt | $ 50,000 | $ 350,000 | |
Sales Revenue, Net [Member] | Non-US [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Percentage of revenues from students outside the United States | 2.20% |
Significant Accounting Polici23
Significant Accounting Policies (Schedule of Basic and Diluted Income per Share) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Numerator | ||||
Net (loss) income | $ (481,551) | $ 116,541 | $ (1,248,629) | $ (388,907) |
Denominator | ||||
Weighted average common shares outstanding | 13,587,535 | 11,479,845 | 13,548,672 | 11,402,751 |
Denominator | 13,587,535 | 12,140,263 | 13,548,672 | 11,402,751 |
Basic [Member] | ||||
Numerator | ||||
Net income applicable to common stock | $ 116,541 | |||
Convertible debt interest | ||||
Net (loss) income | $ 116,541 | |||
Denominator | ||||
Weighted average common shares outstanding | 11,479,845 | |||
Convertible debt | ||||
Warrants and options | ||||
Denominator | 11,479,845 | |||
Net income per share | $ 0.01 | |||
Diluted [Member] | ||||
Numerator | ||||
Net income applicable to common stock | $ 116,541 | |||
Convertible debt interest | 8,021 | |||
Net (loss) income | $ 124,562 | |||
Denominator | ||||
Weighted average common shares outstanding | 11,479,845 | |||
Convertible debt | 75,595 | |||
Warrants and options | 584,823 | |||
Denominator | 12,140,263 | |||
Net income per share | $ 0.01 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) | Oct. 31, 2017 | Apr. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,931,187 | $ 2,544,725 |
Accumulated depreciation and amortization | (1,192,350) | (1,090,010) |
Total property and equipment, net | 1,738,837 | 1,454,715 |
Call Center Hardware [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 82,606 | 53,748 |
Computer And Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 105,717 | 103,649 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 282,932 | 255,984 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,459,932 | $ 2,131,344 |
Property and Equipment (Sched25
Property and Equipment (Schedule of Software, Net) (Details) - USD ($) | Oct. 31, 2017 | Apr. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Intangible asset, net | $ 143,254 | $ 145,477 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Intangible asset, gross | 2,459,932 | 2,131,344 |
Accumulated amortization | (1,065,740) | (994,017) |
Intangible asset, net | $ 1,394,192 | $ 1,137,327 |
Property and Equipment (Sched26
Property and Equipment (Schedule Of Depreciation And Amortization Expense) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Property and equipment: | ||||
Depreciation and amortization Expense | $ 131,669 | $ 123,906 | $ 256,751 | $ 259,054 |
Software amortization Expense | $ 112,522 | $ 112,888 | $ 220,129 | $ 237,067 |
Property and Equipment (Sched27
Property and Equipment (Schedule of Estimated Amortization Expense of Software) (Details) - USD ($) | Oct. 31, 2017 | Apr. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Intangible asset, net | $ 143,254 | $ 145,477 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
2,018 | 229,041 | |
2,019 | 395,009 | |
2,020 | 325,167 | |
2,021 | 252,660 | |
2,022 | 192,315 | |
Intangible asset, net | $ 1,394,192 | $ 1,137,327 |
Courseware (Narrative) (Details
Courseware (Narrative) (Details) - Courseware [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Courseware costs capitalized | $ 25,100 | $ 6,550 | ||
Amortization expense | $ 13,686 | $ 15,099 | $ 27,323 | $ 31,001 |
Courseware (Schedule of Coursew
Courseware (Schedule of Courseware, Net) (Details) - USD ($) | Oct. 31, 2017 | Apr. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, net | $ 143,254 | $ 145,477 |
Courseware [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, gross | 279,677 | 271,777 |
Accumulated amortization | (136,423) | (126,300) |
Intangible asset, net | $ 143,254 | $ 145,477 |
Courseware (Schedule of Estimat
Courseware (Schedule of Estimated Future Amortization Expense) (Details) - USD ($) | Oct. 31, 2017 | Apr. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, net | $ 143,254 | $ 145,477 |
Courseware [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,018 | 27,494 | |
2,019 | 54,489 | |
2,020 | 40,647 | |
2,021 | 13,683 | |
2,022 | 6,941 | |
Intangible asset, net | $ 143,254 | $ 145,477 |
Senior Secured Term Loan (Detai
Senior Secured Term Loan (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |
Jul. 25, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | |
Debt Instrument [Line Items] | |||
Proceeds from term loan | $ 4,780,572 | ||
Fair value of warrants issued as part of senior secured loan | $ 478,428 | $ 52,500 | |
Warrant [Member] | |||
Debt Instrument [Line Items] | |||
Warrants granted | 224,174 | ||
Secured Debt [Member] | Runway Growth Credit Fund [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 10,000,000 | ||
LIBOR interest rate | 10.00% | ||
Proceeds from term loan | $ 5,000,000 | ||
Additional amount drown | $ 2,500,000 | ||
Debt term | 4 years | ||
Origination fee | Company paid a 0.25% origination fee and will pay another 0.25% origination fee upon the second closing, will be subject to a final payment fee of 3.25% of the principal lent | ||
Secured Debt [Member] | Runway Growth Credit Fund [Member] | Warrant [Member] | |||
Debt Instrument [Line Items] | |||
Term of award | 5 years | ||
Warrants granted | 224,174 | ||
Warrants granted, exercise price | $ 6.87 |
Stockholders' Equity (Common St
Stockholders' Equity (Common Stock and Warrants Narrative) (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Jul. 25, 2017 | May 24, 2017 | Oct. 31, 2017 | Apr. 30, 2017 | |
Stockholders Equity [Line Items] | ||||
Stock issued during period from exercise of warrants | 93,386 | |||
Percentage of investment amount paid by company | 1.50% | |||
Investment amount paid by company to investors | $ 112,500 | |||
Common stock, shares issued | 13,613,996 | 13,504,012 | ||
Secured Debt [Member] | Runway Growth Credit Fund [Member] | ||||
Stockholders Equity [Line Items] | ||||
Debt term | 4 years | |||
Warrant [Member] | ||||
Stockholders Equity [Line Items] | ||||
Stock issued during period from exercise of warrants | 125,404 | |||
Warrants granted | 224,174 | |||
Proceeds from exercise of warrants | $ 33,598 | |||
Warrant [Member] | Secured Debt [Member] | Runway Growth Credit Fund [Member] | ||||
Stockholders Equity [Line Items] | ||||
Warrants granted | 224,174 | |||
Warrants granted, exercise price | $ 6.87 | |||
Term of award | 5 years |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Warrants) (Details) - Warrant [Member] - USD ($) | 6 Months Ended | 12 Months Ended |
Oct. 31, 2017 | Apr. 30, 2017 | |
Number of Shares | ||
Balance Outstanding, April 30, 2017 | 914,123 | |
Granted | 224,174 | |
Exercised | (125,404) | |
Forfeited | ||
Expired | (11,336) | |
Balance Outstanding, October 31, 2017 | 1,001,557 | 914,123 |
Exercisable, October 31, 2017 | 1,001,557 | |
Weighted Average Exercise Price | ||
Balance Outstanding, April 30, 2017 | $ 2.82 | |
Granted | 6.87 | |
Exercised | 0.27 | |
Forfeited | ||
Expired | ||
Balance Outstanding, October 31, 2017 | 3.79 | $ 2.82 |
Exercisable, October 31, 2017 | $ 3.79 | |
Weighted Average Remaining Contractual Term | ||
Granted | 4 years 9 months | |
Balance Outstanding, October 31, 2017 | 1 year 11 months 26 days | 1 year 7 months 6 days |
Exercisable, October 31, 2017 | 1 year 11 months 26 days | |
Aggregate Intrinsic Value | ||
Balance Outstanding, April 30, 2017 | $ 1,991,067 | |
Granted | ||
Balance Outstanding, October 31, 2017 | 4,169,798 | $ 1,991,067 |
Exercisable, October 31, 2017 | $ 4,169,798 |
Stockholders' Equity (Stock Opt
Stockholders' Equity (Stock Options Narrative) (Details) - USD ($) | Aug. 21, 2017 | Jun. 11, 2017 | May 13, 2017 | May 31, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Jun. 30, 2016 | Nov. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized compensation cost | $ 1,141,751 | $ 1,141,751 | |||||||
Weighted average recognition period | 1 year 6 months 10 days | ||||||||
Share based compensation expense | $ 303,924 | $ 157,335 | |||||||
Proceeds from exercise of stock options | $ 53,045 | ||||||||
Common Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares issued from exercise of options | 16,598 | ||||||||
Chairman and Chief Executive Officer [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted | 200,000 | ||||||||
Fair value of stock options granted | $ 282,000 | ||||||||
Chief Operating Officer [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted | 200,000 | ||||||||
Fair value of stock options granted | $ 282,000 | ||||||||
Chief Academic Officer [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted | 30,000 | 70,000 | |||||||
Options granted, exercise price | $ 6.28 | ||||||||
Vesting period | 3 years | ||||||||
Weighted average recognition period | 5 years | ||||||||
Fair value of stock options granted | $ 54,000 | $ 98,700 | |||||||
Chief Financial Officer [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted | 30,000 | ||||||||
Fair value of stock options granted | $ 42,300 | ||||||||
Employees [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted | 53,000 | 5,500 | |||||||
Options granted, exercise price | $ 5.95 | ||||||||
Fair value of stock options granted | $ 90,630 | ||||||||
Employees [Member] | Minimum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted, exercise price | $ 4.95 | ||||||||
Employees [Member] | Maximum [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted, exercise price | $ 5.10 | ||||||||
Equity Incentive Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Equity Incentive Plan, shares authorized | 0 | 0 | 2,108,333 | 1,691,667 | |||||
Equity Incentive Plan, available shares remaining for issuance | 830,714 | 830,714 | |||||||
Equity Incentive Plan [Member] | Executive officers [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted | 500,000 | ||||||||
Options granted, exercise price | $ 4.90 | ||||||||
Vesting period | 3 years | ||||||||
Weighted average recognition period | 5 years |
Stockholders' Equity (Schedul35
Stockholders' Equity (Schedule of Assumptions Used to Value Stock Options) (Details) - Stock Incentive Plan and Stock Option Grants to Employees and Directors [Member] | 6 Months Ended | |
Oct. 31, 2017 | Oct. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, minimum | 30.00% | 40.00% |
Expected volatility, maximum | 46.00% | 43.00% |
Weighted-average volatility | 38.60% | 40.00% |
Risk-free interest rate | 0.38% | 0.38% |
Dividend yield | 0.00% | 0.00% |
Expected forfeiture rate | ||
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 4 years | 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 (Schedul36
Stockholders' Equity (Schedule of Stock Options Activity) (Details) - Stock Incentive Plan and Stock Option Grants to Employees and Directors [Member] | 6 Months Ended |
Oct. 31, 2017USD ($)$ / sharesshares | |
Number of Shares | |
Balance Outstanding, April 30, 2017 | shares | 2,097,384 |
Granted | shares | 588,500 |
Exercised | shares | (16,598) |
Forfeited | shares | |
Expired | shares | |
Balance Outstanding, October 31, 2017 | shares | 2,669,286 |
Exercisable, October 31, 2017 | shares | 1,449,136 |
Weighted Average Exercise Price | |
Balance Outstanding, April 30, 2017 | $ / shares | $ 2.42 |
Granted | $ / shares | 5.07 |
Exercised | $ / shares | 4.20 |
Forfeited | $ / shares | |
Expired | $ / shares | |
Balance Outstanding, October 31, 2017 | $ / shares | 2.99 |
Exercisable, October 31, 2017 | $ / shares | $ 2.25 |
Balance Outstanding, April 30, 2017 | 3 years 1 month 6 days |
Granted | 5 years |
Exercised | 0 years |
Balance Outstanding, October 31, 2017 | 3 years 2 months 12 days |
Exercisable, October 31, 2017 | 1 year 3 months 19 days |
Aggregate Intrinsic Value | |
Balance Outstanding, April 30, 2017 | $ | $ 7,267,892 |
Granted | $ | 843,750 |
Forfeited | $ | |
Balance Outstanding, October 31, 2017 | $ | 17,291,782 |
Exercisable, October 31, 2017 | $ | $ 11,249,199 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |
Dec. 31, 2017 | Oct. 31, 2017 | Oct. 31, 2016 | |
Subsequent Event [Line Items] | |||
Proceeds from lines of credit | $ 247,000 | ||
Subsequent Event [Member] | United States University [Member] | |||
Subsequent Event [Line Items] | |||
Cash paid for acquisition, after deduction of closing adjustments | $ 1,150,000 | ||
Issuance of common stock for acquistion | 1,203,209 | ||
Forgiveness of outstanding loan and accrued interest | $ 953,400 | ||
Loan in connection with acquisition | $ 2,000,000 | ||
Interest rate for acquisition loan | 8.00% | ||
Amount of convertible debt that can be converted by the note holder on each of the first and second anniversaries of the closing date | $ 1,000,000 | ||
Proceeds from lines of credit | $ 2,500,000 | ||
Share price | $ 8.49 | ||
Value of stock issued for acquistion | $ 10,200,000 | ||
Value of USU acquisition consisting substantially of all intangibles and goodwill | 14,700,000 | ||
Assets acquired other than intangibles and goodwill | 1,200,000 | ||
Liabilities assumed | $ 1,100,000 |