COVER PAGE
COVER PAGE - shares | 3 Months Ended | |
Jul. 31, 2021 | Sep. 10, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38175 | |
Entity Registrant Name | ASPEN GROUP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-1933597 | |
Entity Address, Address Line One | 276 Fifth Avenue | |
Entity Address, Address Line Two | Suite 505 | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10001 | |
City Area Code | 646 | |
Local Phone Number | 448-5144 | |
Title of 12(b) Security | Common Stock, par value $0.001 | |
Trading Symbol | ASPU | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 24,931,565 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --04-30 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Entity Central Index Key | 0001487198 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jul. 31, 2021 | Apr. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 6,554,423 | $ 8,513,290 |
Restricted cash | 3,722,831 | 5,152,789 |
Accounts receivable, net of allowance of $3,272,977 and $3,289,816, respectively | 17,190,238 | 16,724,744 |
Prepaid expenses | 914,216 | 1,077,831 |
Other current assets | 13,890 | 68,529 |
Total current assets | 28,395,598 | 31,537,183 |
Property and equipment: | ||
Property and equipment, gross | 18,700,408 | 17,548,329 |
Less: accumulated depreciation and amortization | (5,962,034) | (4,892,987) |
Total property and equipment, net | 12,738,374 | 12,655,342 |
Goodwill | 5,011,432 | 5,011,432 |
Accounts receivable, net of allowance of $— and $625,963, respectively | 0 | 45,329 |
Long term contractual accounts receivable | 11,313,657 | 10,249,833 |
Debt issue cost, net | 9,722 | 18,056 |
Operating lease right of use assets, net | 12,242,456 | 12,714,863 |
Deposits and other assets | 468,361 | 479,212 |
Total assets | 78,390,552 | 80,806,906 |
Current liabilities: | ||
Accounts payable | 1,627,731 | 1,466,488 |
Accrued expenses | 2,361,271 | 2,040,896 |
Deferred revenue | 4,691,087 | 6,825,014 |
Due to students | 2,905,192 | 2,747,484 |
Operating lease obligations, current portion | 2,086,076 | 2,029,821 |
Other current liabilities | 57,847 | 307,921 |
Total current liabilities | 13,729,204 | 15,417,624 |
Operating lease obligations, less current portion | 15,865,044 | 16,298,808 |
Total liabilities | 29,594,248 | 31,716,432 |
Commitments and contingencies – see Note 11 | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 1,000,000 shares authorized, 0 issued and outstanding at July 31, 2020 and April 30, 2020 | 0 | 0 |
Common stock, $0.001 par value; 40,000,000 shares authorized, 21,727,075 issued and 21,710,408 outstanding at July 31, 2020; 18,665,551 issued and 18,648,884 outstanding at April 30, 2020 | 25,088 | 25,067 |
Additional paid-in capital | 109,617,521 | 109,040,824 |
Treasury stock (155,486 at both July 31, 2021 and April 30, 2021) | (1,817,414) | (1,817,414) |
Accumulated deficit | (59,028,891) | (58,158,003) |
Total stockholders’ equity | 48,796,304 | 49,090,474 |
Total liabilities and stockholders’ equity | 78,390,552 | 80,806,906 |
Computer equipment and hardware | ||
Property and equipment: | ||
Property and equipment, gross | 1,193,278 | 956,463 |
Furniture and fixtures | ||
Property and equipment: | ||
Property and equipment, gross | 1,793,686 | 1,705,101 |
Leasehold improvements | ||
Property and equipment: | ||
Property and equipment, gross | 6,182,239 | 5,729,324 |
Instructional equipment | ||
Property and equipment: | ||
Property and equipment, gross | 491,597 | 421,039 |
Software | ||
Property and equipment: | ||
Property and equipment, gross | 8,951,241 | 8,488,635 |
Intangible assets, net | 5,095,256 | 5,044,310 |
Construction in progress | ||
Property and equipment: | ||
Property and equipment, gross | 88,367 | 247,767 |
Intangible assets, net | ||
Property and equipment: | ||
Intangible assets, net | 7,907,932 | 7,908,360 |
Courseware, net | ||
Property and equipment: | ||
Intangible assets, net | $ 303,020 | $ 187,296 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jul. 31, 2021 | Apr. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 3,272,977 | $ 3,289,816 |
Accounts receivable, secured, allowance | $ 0 | $ 625,963 |
Preferred stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock issued (in shares) | 25,087,051 | 25,066,297 |
Common stock outstanding (in shares) | 24,931,565 | 24,910,811 |
Treasury stock (in shares) | 155,486 | 155,486 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 19,430,995 | $ 15,165,562 |
Operating expenses: | ||
Cost of revenue (exclusive of depreciation and amortization shown separately below) | 8,593,568 | 5,847,523 |
General and administrative | 10,946,477 | 8,793,756 |
Bad debt expense | 350,000 | 400,000 |
Depreciation and amortization | 779,409 | 490,624 |
Total operating expenses | 20,669,454 | 15,531,903 |
Operating loss | (1,238,459) | (366,341) |
Other income (expense): | ||
Interest expense | (33,539) | (455,457) |
Other income (expense), net | 552,120 | (123,298) |
Total other income (expense), net | 518,581 | (578,755) |
Loss before income taxes | (719,878) | (945,096) |
Income tax expense (benefit) | 151,010 | (1,900) |
Net loss | $ (870,888) | $ (943,196) |
Net loss per share - basic (in dollars per share) | $ (0.03) | $ (0.04) |
Net loss per share - diluted (in dollars per share) | $ (0.03) | $ (0.04) |
Weighted average number of common stock outstanding - basic (in shares) | 25,070,072 | 22,094,409 |
Weighted average number of common stock outstanding - diluted (in shares) | 25,070,072 | 22,094,409 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit |
Beginning balance at Apr. 30, 2020 | $ 41,747,957 | $ 21,771 | $ 89,505,216 | $ (70,000) | $ (47,709,030) |
Beginning balance (in shares) at Apr. 30, 2020 | 21,770,520 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 487,110 | 487,110 | |||
Common stock issued for stock options exercised for cash | 1,269,982 | $ 415 | 1,269,567 | ||
Common stock issued for stock options exercised for cash (in shares) | 415,175 | ||||
Common stock issued for warrants exercised for cash | 1,081,792 | $ 192 | 1,081,600 | ||
Common stock issued for cashless warrant exercise (in shares) | 192,049 | ||||
Modification charge for warrants exercised | 25,966 | 25,966 | |||
Amortization of warrant based cost | 9,125 | 9,125 | |||
Net loss | (943,196) | (943,196) | |||
Ending balance at Jul. 31, 2020 | 43,678,736 | $ 22,378 | 92,378,584 | (70,000) | (48,652,226) |
Ending balance (in shares) at Jul. 31, 2020 | 22,377,744 | ||||
Beginning balance at Apr. 30, 2021 | 49,090,474 | $ 25,067 | 109,040,824 | (1,817,414) | (58,158,003) |
Beginning balance (in shares) at Apr. 30, 2021 | 25,066,297 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 542,712 | 542,712 | |||
Common stock issued for stock options exercised for cash | 22,548 | $ 5 | 22,543 | ||
Common stock issued for stock options exercised for cash (in shares) | 5,097 | ||||
Common stock issued for vested restricted stock units | 0 | $ 16 | (16) | ||
Common stock issued for vested restricted stock units (in shares) | 15,657 | ||||
Amortization of warrant based cost | 11,458 | 11,458 | |||
Net loss | (870,888) | (870,888) | |||
Ending balance at Jul. 31, 2021 | $ 48,796,304 | $ 25,088 | $ 109,617,521 | $ (1,817,414) | $ (59,028,891) |
Ending balance (in shares) at Jul. 31, 2021 | 25,087,051 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (870,888) | $ (943,196) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Bad debt expense | 350,000 | 400,000 |
Depreciation and amortization | 779,409 | 490,624 |
Stock-based compensation | 542,712 | 487,110 |
Amortization of warrant based cost | 11,458 | 9,125 |
Amortization of debt discounts | 0 | 141,026 |
Amortization of debt issue costs | 8,334 | 139,362 |
Modification charge for warrants exercised | 0 | (25,966) |
Loss on asset disposition | 1,144 | 0 |
Lease expense | 8,307 | 0 |
Tenant improvement allowances received from landlords | 86,591 | 0 |
Other adjustments, net | 0 | 10,587 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,879,318) | (2,747,322) |
Prepaid expenses | 163,615 | (51,870) |
Other receivables | 0 | 23,097 |
Other current assets | 54,639 | 59,966 |
Accounts receivable, other | 45,329 | 0 |
Deposits and other assets | 10,852 | 205,425 |
Accounts payable | 161,243 | 258,855 |
Accrued expenses | 320,375 | 590,579 |
Due to students | 157,708 | (480,342) |
Deferred revenue | (2,133,927) | 1,053,859 |
Other current liabilities | (250,074) | (257,678) |
Net cash used in operating activities | (2,432,491) | (636,759) |
Cash flows from investing activities: | ||
Purchases of courseware and accreditation | (131,669) | (3,050) |
Purchases of property and equipment | (847,213) | (659,168) |
Net cash used in investing activities | (978,882) | (662,218) |
Cash flows from financing activities: | ||
Proceeds from stock options exercised | 22,548 | 1,269,982 |
Proceeds from warrants exercised | 0 | 1,081,792 |
Net cash provided by financing activities | 22,548 | 2,351,774 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (3,388,825) | 1,052,797 |
Cash, restricted cash, and cash equivalents at beginning of period | 13,666,079 | 17,906,765 |
Cash, restricted cash, and cash equivalents at end of period | 10,277,254 | 18,959,562 |
Supplemental disclosure cash flow information | ||
Cash paid for interest | 24,384 | 199,178 |
Cash paid for income taxes | $ 98,105 | $ 1,600 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) | Jul. 31, 2021 | Apr. 30, 2021 | Jul. 31, 2020 | Apr. 30, 2020 |
Statement of Cash Flows [Abstract] | ||||
Cash and cash equivalents | $ 6,554,423 | $ 8,513,290 | $ 15,899,293 | |
Restricted cash | 3,722,831 | 5,152,789 | 3,060,269 | |
Total cash, cash equivalents and restricted cash | $ 10,277,254 | $ 13,666,079 | $ 18,959,562 | $ 17,906,765 |
Nature of Operations
Nature of Operations | 3 Months Ended |
Jul. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Overview Aspen Group, Inc. ("AGI") is an education technology holding company. AGI has two subsidiaries, Aspen University Inc. ("Aspen University"), organized in 1987, and United States University Inc. ("United States University" or "USU"). All references to the “Company”, “AGI”, “Aspen Group”, “we”, “our” and “us” refer to Aspen Group, Inc., unless the context otherwise indicates. AGI leverages its education technology infrastructure and expertise to allow its two universities, Aspen University and United States University, to deliver on the vision of making college affordable again. 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 higher education. AGI’s primary focus relative to future growth is to target the high growth nursing profession. Since 1993, Aspen University has been nationally accredited by the Distance Education and Accrediting Council (“DEAC”), a national accrediting agency recognized by the United States Department of Education (the “DOE”), through January 2024. Since 2009, USU has been regionally accredited by WASC Senior College and University Commission. (“WSCUC”). Both universities are qualified to participate under the Higher Education Act of 1965, as amended (HEA) and the Federal student financial assistance programs (Title IV, HEA programs). USU has a provisional certification resulting from the ownership change of control in connection with the acquisition by AGI on December 1, 2017. COVID-19 Update Nursing students represented 87% or 12,058 of the Company’s total student body of 13,879 students at the end of the first quarter of fiscal 2022. Of the 12,058 nursing students, 2,364 are BSN Pre-Licensure students located across our four metro locations (Phoenix, Austin, Tampa and Nashville). The remaining 9,694 nursing students are licensed registered nurses (RNs) studying to earn an advanced degree (RN to BSN, MSN or DNP degree programs). These 9,694 post-licensure nursing students therefore represent 70% of the Company’s total student body and are the population of AGI students that have been primarily affected by the COVID-19 pandemic. Given that AGI has the highest student body concentration of RNs among publicly-traded higher education companies in the U.S., the COVID-19 pandemic has necessitated the need to track RN behaviors and attitudes carefully for the past 18 months. Below are the effects the Company has seen to date relative to class starts among our RN active student body. The Company previously reported that RN course starts at both universities were approximately 4% lower than historically expected during the months of September, 2020 – January, 2021, which resulted in approximately $520,000 less revenue in the fiscal 2021 third quarter. However, beginning in late February 2021, RN course starts returned to historically normal levels throughout the remainder of the fourth fiscal quarter which resulted in revenue of $19.1 million for the quarter, approximately $500,000 higher than the midpoint of our forecast. Starting in the second half of the month of June and continuing throughout the month of July 2021, the Company saw lower course starts than seasonally expected among our RN student body. For example, at Aspen University, course starts among RNs in June were flat year-over-year and July was slightly down year-over-year which was not surprising given the rise of the Delta variant and the spike in hospitalizations. Revenue for the first quarter was relatively unaffected given that the lower RN class starts occurred in the second half of the fiscal quarter. We cannot be certain what impact the Delta variant and other variants will have on the Company’s results as we progress through the second and future quarters in fiscal 2022. Basis of Presentation Interim Financial Statements The interim consolidated financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of the Company’s management, all adjustments (consisting of normal recurring adjustments and reclassifications and non-recurring adjustments) necessary to present fairly our results of operations for the three months ended July 31, 2021 and 2020, our cash flows for the three months ended July 31, 2021 and 2020, and our financial position as of July 31, 2021 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 Annual Report on Form 10-K for the fiscal year ended April 30, 2021 as filed with the SEC on July 13, 2021. The April 30, 2021 consolidated balance sheet is derived from those statements. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation and Consolidation The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"). The consolidated financial statements include the accounts of AGI and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. A full listing of our significant accounting policies is described in Note 2 “Summary of Significant Accounting Policies” of our Annual Report on Form 10-K for the fiscal year ended April 30, 2021 as filed with the SEC on July 13, 2021. Accounting Estimates Management of the Company is required to make certain estimates, judgments and assumptions during the preparation of its consolidated financial statements in accordance with GAAP. These estimates, judgments and assumptions impact the reported amounts of assets, liabilities, revenue and expenses and the related disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Significant estimates in the accompanying consolidated financial statements include the allowance for doubtful accounts and other receivables, the valuation of lease liabilities and the carrying value of the related right-of-use ("ROU") assets, depreciable lives of property and equipment, amortization periods and valuation of courseware, intangibles and software development costs, valuation of goodwill, valuation of loss contingencies, valuation of stock-based compensation and the valuation allowance on deferred tax assets. Cash, Cash Equivalents, and Restricted Cash 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. Restricted cash as of July 31, 2021 of $3,722,831 primarily consists of $934,125 which is collateral for letters of credit for the Aspen University and USU facility operating leases, $9,872 which is collateral for a letter of credit for USU required to be posted based on the level of Title IV funding in connection with USU's most recent Compliance Audit, and a $250,000 compensating balance under a secured credit line. Also included are funds held for students for unbilled educational services that were received from Title IV and non-Title IV programs totaling $2,528,834. As an administrator of these Title IV program funds, the Company is required to maintain and restrict these funds pursuant to the terms of the program participation agreement with the U.S. Department of Education. Restricted cash as of April 30, 2021 of $5,152,789 primarily consisted of $934,125 which is collateral for letters of credit for the Aspen University and USU facility operating leases, $9,872 which is collateral for a letter of credit for USU required to be posted based on the level of Title IV funding in connection with USU's most recent Compliance Audit, and a $250,000 compensating balance under a secured credit line. Also included are funds held for students for unbilled educational services that were received from Title IV and non-Title IV programs totaling $3,958,792. As an administrator of these Title IV program funds, the Company is required to maintain and restrict these funds pursuant to the terms of the program participation agreement with the U.S. Department of Education. Concentration of Credit Risk 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 July 31, 2021. As of July 31, 2021 and April 30, 2021, the Company maintained deposits exceeding federally insured limits by approximately $9,732,634 and $13,005,537, respectively, held in two separate institutions. Revenue Recognition and Deferred Revenue The Company follows Accounting Standards Codification 606 (ASC 606). ASC 606 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASC also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer purchase orders, including significant judgments. Revenue consists primarily of tuition and course fees derived from courses taught by the Company online and in-person as well as from related educational resources and services that the Company provides to its students. Under ASC 606, tuition and course fee revenue is recognized pro-rata over the applicable period of instruction and are not considered separate performance obligations. Non-tuition related revenue and fees are recognized as services are provided or when the goods are received by the student. (See Note 8) 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 revenue may be recognized as sales occur or services are performed. Net Loss Per Share Net loss per share is based on the weighted average number of shares of common stock outstanding during each period. Options to purchase 1,141,396 and 1,032,411 shares of common stock, 653,937 and 549,972 restricted stock units ("RSUs"), warrants to purchase 374,174 and 374,174 shares of common stock, and unvested restricted stock of 8,224 and 8,224 were outstanding at July 31, 2021 and April 30, 2021, respectively. All shares mentioned above were not included in the computation of diluted net loss per share because the effects would have been anti-dilutive. The options, warrants, RSUs, unvested restricted stock and Convertible Notes are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share of common stock 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 and campus students regardless of geography. The Company's chief operating decision makers, its Chief Executive Officer, Chief Operating Officer and Chief Academic Officer, manage the Company's operations as a whole. Recent Accounting Pronouncement Not Yet Adopted ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which significantly changes how entities will measure credit losses for most financial assets, including accounts receivable. ASU No. 2016-13 will replace today’s “incurred loss” approach with an “expected loss” model, under which companies will recognize allowances based on expected rather than incurred losses. On November 15, 2019, the FASB delayed the effective date of Topic 326 for certain small public companies and other private companies until fiscal years beginning after December 15, 2022 for SEC filers that are eligible to be smaller reporting companies under the SEC’s definition, as well as private companies and not-for-profit entities. The Company is currently evaluating the new guidance and has not yet determined whether the adoption of the new standard will have a material impact on its consolidated financial statements or the method of adoption. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Jul. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment As property and equipment reach the end of their useful lives, the fully expired assets are written off against the associated accumulated depreciation and amortization. There is no expense impact for such write offs. Software consisted of the following: July 31, April 30, Software $ 8,951,241 $ 8,488,635 Accumulated amortization (3,855,985) (3,444,325) Software, net $ 5,095,256 $ 5,044,310 Depreciation and amortization expense for property and equipment and software is summarized below: Three Months Ended 2021 2020 Depreciation and amortization expense: Property and equipment, excluding software $ 351,373 $ 163,570 Software $ 411,661 $ 315,107 |
Courseware and Accreditation
Courseware and Accreditation | 3 Months Ended |
Jul. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Courseware and Accreditation | Courseware and Accreditation For the three months ended July 31, 2021 and 2020, additional courseware and accreditation costs capitalized were $131,669 and $3,050. As courseware and accreditation reach the end of their useful life, they are written off against the accumulated amortization. There was no expense impact for such write-offs for the three months ended July 31, 2021 and 2020. Courseware and accreditation consisted of the following: July 31, April 30, Courseware $ 539,893 $ 408,222 Accreditation 59,350 59,350 599,243 467,572 Accumulated amortization (296,223) (280,276) Courseware and accreditation, net $ 303,020 $ 187,296 Amortization expense for courseware and accreditation is summarized below: Three Months Ended July 31, 2021 2020 Amortization expense $ 15,948 $ 11,947 |
Secured Note and Accounts Recei
Secured Note and Accounts Receivable | 3 Months Ended |
Jul. 31, 2021 | |
Due from Related Parties, Unclassified [Abstract] | |
Secured Note and Accounts Receivable | Secured Note and Accounts Receivable 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. Ultimately, the sum due to Aspen University was reduced to $772,793, and Aspen University obtained a judgment for that amount. HEMG then filed a bankruptcy petition in 2015. As of April 30, 2021, the balance of the account receivable, net of allowance, was $45,329. On July 21, 2021, the Company received its distribution from the bankruptcy trustee court of $498,120, which is included in "other income (expense), net" in the accompanying unaudited consolidated statements of operations. As a result, the Company wrote off the net receivable of $45,329, described above, at July 31, 2021. No further assets are available for distribution. See Note 11 for additional information. |
Debt
Debt | 3 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Revolving Credit Facility On November 5, 2018, the Company entered into a loan agreement (the “Credit Facility Agreement”) with the Leon and Toby Cooperman Family Foundation (the “Foundation”). The Credit Facility Agreement provides for a $5,000,000 revolving credit facility (the “Facility”) evidenced by a revolving promissory note (the “Revolving Note”). Borrowings under the Credit Facility Agreement bear interest at 12% per annum. The Facility matures on November 4, 2021. At July 31, 2021 and April 30, 2021, there was no outstanding borrowings under the Revolving Credit Facility. Pursuant to the terms of the Credit Facility Agreement, the Company agreed to pay to the Foundation a $100,000 one-time upfront Facility fee. The Company also agreed to pay the Foundation a commitment fee, payable quarterly at the rate of 2% per annum on the undrawn portion of the Facility. The Credit Facility Agreement contains customary representations and warranties and events of default. Pursuant to the Loan Agreement and the Revolving Note, all future or contemporaneous indebtedness incurred by the Company, other than indebtedness expressly permitted by the Credit Facility Agreement and the Revolving Note, will be subordinated to the Facility. On August 31, 2021, the Company extended the Facility maturity one-year to November 4, 2022 and drew down $5,000,000 on the Facility. See Note 12 for additional information. Pursuant to the Credit Facility Agreement, on November 5, 2018 the Company issued to the Foundation warrants to purchase 92,049 shares of the Company’s common stock exercisable for five years from the date of issuance at the exercise price of $5.85 per share which were deemed to have a relative fair value of $255,071 (the "2018 Cooperman Warrants"). These warrants were exercised on June 8, 2020. The relative fair value of the warrants along with the upfront Facility fee were treated as debt issue cost assets to be amortized over the term of the loan, as the facility has not been drawn on. Total unamortized costs at July 31, 2021 and April 30, 2021 were $9,722 and $18,056, respectively. On March 6, 2019, the Company amended and restated the Credit Facility Agreement (the “Amended and Restated Facility Agreement”) and the Revolving Note. The Amended and Restated Facility Agreement provides among other things that the Company’s obligations thereunder are secured by a first priority lien in certain deposit accounts of the Company, all current and future accounts receivable of Aspen University and USU, certain of the deposit accounts of Aspen University and USU and all of the outstanding capital stock of Aspen University and USU. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jul. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity AGI maintains two stock-based incentive plans: the 2012 Equity Incentive Plan (the “2012 Plan”) and 2018 Equity Incentive Plan (the “2018 Plan”) that provides for the grant of shares in the form of incentive stock options, non-qualified stock options, restricted shares, stock appreciation rights and RSUs to employees, consultants, officers and directors. On December 30, 2020, the Company held its Annual Meeting of Shareholders at which the shareholders voted to amend the 2018 Plan to increase the number of shares of common stock available for issuance under the 2018 Plan from 1,100,000 to 1,600,000 shares. As of July 31, 2021 and April 30, 2021 there were 431,869 and 549,739 shares remaining available for future issuance under the 2012 and the 2018 Plans, respectively. Restricted Stock As of July 31, 2021 and 2020, there were 8,224 and 16,448 unvested shares of restricted common stock outstanding, respectively. Total unrecognized compensation expense related to the unvested shares as of July 31, 2021 was $17,545, and is expected to be recognized over a weighted-average period of approximatel y 0.42 years. Restricted Stock Units A summary of the Company’s RSU activity during the three months ended July 31, 2021 is presented below: Restricted Stock Units Number of Shares Weighted Average Grant Price Unvested balance outstanding, April 30, 2021 549,972 $ 6.58 Granted 127,542 6.97 Forfeits (7,920) 9.37 Vested (15,657) 6.26 Expired — — Unvested balance outstanding, July 31, 2021 653,937 $ 6.07 Of t he 127,542 RSUs granted in the three months ended July 31, 2021 , 125,000 RSUs correspond to the Chief Executive Officer grant. On July 21, 2021, as part of a new employment agreement, the Compensation Committee approved a 125,000 RSU grant to the Company's Chief Executive Officer under the Company's 2018 Equity Incentive Plan. The grant has a grant date fair value of $873,750 based on a closing stock price of $6.99 per share. As stipulated in the grant, vesting is subject to continued employment with the Company and will occur in full on the date the Company files with the SEC a quarterly or annual report on Forms 10-Q or 10-K, as applicable, which reflects the Company reported net income on a GAAP basis. The Company is amortizing the expense over one year through July 2022 (the filing date of the Form 10-K for Fiscal Year 2022). At each reporting period of Fiscal Year 2022, the Company will re-assess the likelihood of the performance condition to be met in the fourth quarter of 2022. If the RSUs do not vest within three years from the July 21, 2021 effective date, they will expire and automatically be forfeited. The amortization expense related to this grant for the three months ended July 31, 2021 was $72,813, which is included in general and administrative expense in the consolidated statements of operations. The remaining 2,542 RSUs were granted to employees and have a grant date fair value that ran ges from $4.92 to $6.50 per share, or a total of $14,943, vesting annually over three years. Of the 653,937 unvested RSU s outstanding at July 31, 2021, there are 195,000 RSUs remaining from the February 4, 2020 executive grant. These RSUs vest four years from the grant date, if each applicable executive is still employed by the Company on the vesting date and subject to accelerated vesting for all RSUs if the closing price of the Company’s common stock is at least $12 for 20 consecutive trading days, all of the unvested RSUs will vest immediately. On the grant date, the closing price of the Company's common stock on The Nasdaq Global Market was $9.49 per share. The a mortization expense related to these transactions for the three months ended July 31, 2021 and 2020, was approximately $112,155 and $111,211, respectively, which is included in general and administrative expense in the consolidated statements of operations. At July 31, 2021, total unrecognized compensation expense related to unvested RSUs is $3,972,803 and is expected to be recognized over a weighted-average period of approximately 1.49 years. The total unrecognized compensation expense related to the February 4, 2020 executive RSU grant, discussed above, is $1,121,555 . Warrants The Company estimates the fair value of warrants utilizing the Black-Scholes pricing model, which is dependent upon several variables such as the expected term, expected volatility of the Company’s stock price over the expected term, expected risk-free interest rate over the expected term and expected dividend yield rate over the expected term. The Company believes this valuation methodology is appropriate for estimating the fair value of warrants issued to 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 expense on a straight-line basis over the vesting period of each warrant issued. A summary of the Company’s warrant activity during the three months ended July 31, 2021 is presented below: Warrants Number of Weighted Weighted Aggregate Balance Outstanding, April 30, 2021 374,174 $ 6.37 1.90 $ — Granted 25,000 $ 6.99 4.98 — Exercised — $ — — — Surrendered — $ — — — Expired — $ — — — Balance Outstanding, July 31, 2021 399,174 $ 6.41 1.85 $ 144,000 Exercisable, July 31, 2021 374,174 $ 6.37 1.54 $ 144,000 OUTSTANDING WARRANTS EXERCISABLE WARRANTS Exercise Weighted Outstanding Weighted Weighted Exercisable $ 4.89 $ 4.89 50,000 $ 4.89 3.44 50,000 $ 6.00 $ 6.00 100,000 $ 6.00 3.09 100,000 $ 6.87 $ 6.87 224,174 $ 6.87 1.48 224,174 $ 6.99 $ 6.99 25,000 $ — 0.00 — 399,174 374,174 On July 21, 2021, the Compensation Committee approved warrants to a former member of the Board of Directors for the purchase of 25,000 shares of the Company's common stock with an exercise price of $6.99 per share. The warrants have an exercise period of five years from the July 21, 2021 issuance date and vest annually over a three year period subject to continued service on the Company's Advisory Board on each applicable vesting date. The warrants will terminate automatically and immediately upon the expiration of the exercise period. The relative fair value of the warrants is $84,000 and is being amortized over the three year vesting period. T he Company has recognized $2,333 of amortization expense in connection with the fair value of the warrants for the three months ending July 31, 2021, which is included in “general and administrative” expense in the consolidated statement of operations. During the three months ended July 31, 2020, there was a warrant modification and acceleration charge of $25,966 related to the exercise of 192,049 warrants by the Leon and Toby Cooperman Family Foundation, which was included in “other income (expense), net” in the consolidated statement of operations. Stock Option Grants to Employees and Directors 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 and expected dividend yield rate over the expected option term. 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 Company utilizes 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 historical volatility. 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 three months ended July 31, 2021, is presented below: Options Number of Weighted Weighted Aggregate Balance Outstanding, April 30, 2021 1,214,473 $ 6.24 1.88 $ 204,719 Granted — — — — Exercised (5,097) 6.16 — — Forfeited (1,752) 4.68 — — Expired — — — — Balance Outstanding, July 31, 2021 1,207,624 $ 6.29 1.65 $ 1,150,849 Exercisable, July 31, 2021 1,141,396 $ 6.36 1.60 $ 1,044,364 During the three months ended July 31, 2021 and 2020, the Company received proceeds from the exercise of stock options for cash of $22,548 and $1,269,982, respectively. OUTSTANDING OPTIONS EXERCISABLE OPTIONS Exercise Weighted Outstanding Weighted Weighted Exercisable $2.28 to $2.76 $ 2.76 10,423 $ 2.76 0.17 10,423 $3.24 to $4.38 $ 3.82 183,249 $ 3.80 1.03 168,914 $4.50 to $5.20 $ 4.94 354,778 $ 4.93 1.39 310,885 $5.95 to $6.28 $ 5.95 28,000 $ 5.95 1.06 28,000 $7.17 to $7.55 $ 7.45 473,425 $ 7.46 2.07 465,425 $8.57 to $9.07 $ 8.98 157,749 $ 8.98 1.44 157,749 1,207,624 1,141,396 As of July 31, 2021, there was approximately $55,007 of unrecognized compensation costs related to unvested stock options. That cost is expected to be recognized over a weighted-average period of approximately 1.00 year. Fo r the three months ended July 31, 2021, the Company recorded compensation expense of $542,712 which consisted of: $85,408, $446,777 and $10,527, respectively, in connection with stock options, RSUs and restricted stock grants, which is included in “general and administrative” expense in the unaudited consolidated statements of operations. For the three months ended July 31, 2020, the Company recorded compensation expense of $487,110 which consisted of: $168,734, $307,852 and $10,524, respectively, in connection with stock options, RSUs and restricted stock grants, which is included in “general and administrative” expense in the unaudited consolidated statements of operations. Treasury Stock As of both July 31, 2021 and April 30, 2021, 155,486 shares of common stock were held in treasury representing shares of common stock surrendered upon the exercise of stock options in payment of the exercise prices and the taxes and similar amounts due arising from the option exercises. The value of these shares is approximately $1.8 million and represents the fair market value of shares surrendered as of the date of each applicable exercise date. |
Revenue
Revenue | 3 Months Ended |
Jul. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue consists 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. 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 fees for library and technology costs, which are recognized over the related service period and are not considered separate performance obligations. Other services, books, and exam fees are recognized as services are provided or when goods are received by the student. The Company’s contract liabilities are reported as deferred revenue and due to students. 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. The following table represents our revenue disaggregated by the nature and timing of services: Three Months Ended 2021 2020 Tuition - recognized over period of instruction $ 17,121,680 $ 13,367,308 Course fees - recognized over period of instruction 2,003,340 1,599,693 Book fees - recognized at a point in time 27,759 39,138 Exam fees - recognized at a point in time 196,042 70,655 Service fees - recognized at a point in time 82,174 88,768 $ 19,430,995 $ 15,165,562 Contract Balances and Performance Obligations The Company recognizes deferred revenue as a student participates in a course which continues past the consolidated balance sheet date. Of the total revenue earned during the three months ended July 31, 2021 and 2020, approximately $6.8 million and $3.7 million came from revenue which were deferred at April 30, 2021 and 2020, respectively. When the Company begins providing the performance obligation by beginning instruction in a course, a contract receivable is created, resulting in accounts receivable. The Company accounts for receivables in accordance with ASC 310, Receivables. The Company uses the portfolio approach. Cash Receipts Our students finance costs through a variety of funding sources, including, among others, monthly payment plans, installment plans, federal loan and grant programs (Title IV), employer reimbursement, and various veterans and military funding and grants, and cash payments. Most students elect to use our monthly payment plan. This plan allows them to make continuous monthly payments during the length of their program and through the length of their payment plan. Title IV and military funding typically arrives during the period of instruction. Students who receive reimbursement from employers typically do so after completion of a course. Students who choose to pay cash for a class typically do so before beginning the class. Significant Judgments We analyze revenue recognition on a portfolio approach under ASC 606-10-10-4. Significant judgment is utilized in determining the appropriate portfolios to assess for meeting the criteria to recognize revenue under ASC Topic 606. We have determined that all of our students can be grouped into one portfolio. Students behave similarly, regardless of their payment method. Enrollment agreements and refund policies are similar for all of our students. We do not expect that revenue earned for the portfolio is significantly different as compared to revenue that would be earned if we were to assess each student contract separately. The Company maintains institutional tuition refund policies, 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. |
Leases
Leases | 3 Months Ended |
Jul. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases We determine if a contract contains a lease at inception. We have entered into operating leases totaling approximately 154,528 square feet of office and classroom space in Phoenix, San Diego, New York City, Denver, Austin, Tampa and New Brunswick Province in Canada. These leases expire at various dates through April 2031, the majority contain annual base rent escalation clauses. Most of these leases include options to terminate for a fee or extend for additional five-year periods. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company does not have any financing leases. As of July 31, 2021, our longer term operating leases are located in Tampa, Austin and Phoenix and set to expire in ten eight Operating lease assets are right of use assets ("ROU assets"), which represent the right to use an underlying asset for the lease term. Operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating leases are included in "Operating lease right of use assets, net", "Operating lease obligations, current portion" and "Operating lease obligations, less current portion" in the consolidated balance sheet at July 31, 2021 and April 30, 2021. These assets and lease liabilities are recognized based on the present value of remaining lease payments over the lease term. When the lease does not provide an implicit interest rate, the Company uses an incremental borrowing rate of 12% to determine the present value of the lease payments. Lease incentives are deducted from the right of use assets. Incentives such as tenant improvement allowances are amortized as leasehold-improvements, separately, over the life of the lease term. For the three months ended July 31, 2021 and 2020, the amortization expense for these tenant improvement allowances was $150,387 and $0 , respectively. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for the three months ended July 31, 2021 and 2020 wa s $936,737 and $397,238, respectively, which is included in general and administrative expenses in the consolidated statements of operations. ROU assets are summarized below: July 31, 2021 April 30, 2021 ROU assets - Operating facility leases $ 14,308,296 $ 14,308,296 Less: accumulated reduction (2,065,840) (1,593,433) Total ROU assets $ 12,242,456 $ 12,714,863 Operating lease obligations, related to the ROU assets are summarized below: July 31, 2021 April 30, 2021 Total lease liabilities $ 19,946,229 $ 19,946,229 Reduction of lease liabilities (1,995,109) (1,617,600) Total operating lease obligations $ 17,951,120 $ 18,328,629 The following is a schedule by fiscal years of future minimum lease payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of July 31, 2021 (a) (by fiscal year) . Maturity of Lease Obligations Lease Payments 2022 (remaining) $ 3,076,200 2023 3,647,737 2024 3,514,179 2025 3,288,066 2026 3,383,530 Thereafter 10,417,592 Total future minimum lease payments 27,327,304 Less: imputed interest (9,376,184) Present value of operating lease liabilities $ 17,951,120 _____________________ (a) Lease payments exclude $3.5 million of legally binding minimum lease payments for the new BSN Pre-Licensure campus location in Nashville, Tennessee lease signed but not yet commenced. Balance Sheet Classification July 31, 2021 April 30, 2021 Operating lease obligations, current portion $ 2,086,076 $ 2,029,821 Operating lease obligations, less current portion 15,865,044 16,298,808 Total operating lease liabilities $ 17,951,120 $ 18,328,629 Other Information July 31, 2021 Weighted average remaining lease term (in years) 7.29 Weighted average discount rate 12 % |
Income Taxes
Income Taxes | 3 Months Ended |
Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company determined that it has a permanent establishment in Canada, as defined by article V(2)(c) of the Convention between Canada and the United States of America with Respect to Taxes on Income and on Capital (the “Treaty”), which would be subject to Canadian taxation as levied under the Income Tax Act. The Company has filed Canadian T2 Corporation Income Tax Returns and related information returns under the Voluntary Disclosure Program with the Canada Revenue Agency ("CRA") to cover the 2013 through 2021 tax years during which a permanent establishment was in place. As of July 31, 2021, the CRA has not yet responded to the voluntary disclosure. The Company will also file an annual Canadian T2 Corporation Income Tax return to report the ongoing activity of the permanent establishment for the 2022 and future taxation years.As of July 31, 2021, the Company recorded a reserve of approximately $150,000 for the estimate of a multi-year foreign income tax liability. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jul. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 may or may not be performance-based in nature. 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 July 31, 2021, 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 consolidated 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 its Chairman, Mr. Patrick 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 December 10, 2013, the Company filed a series of counterclaims against HEMG and Mr. Spada in the same state court of New York. By 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 maybe 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. In November 2014, the Company and Aspen University sued HEMG seeking to recover sums due under two 2008 Agreements where Aspen University sold course materials to HEMG in exchange for long-term future payments. On September 29, 2015, the Company and Aspen University obtained a default judgment in the amount of $772,793. This default judgment precipitated the bankruptcy petition discussed in the next paragraph. 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. The bankrupt estate’s sole asset consisted of 208,000 shares of AGI common stock, plus a claim filed by the bankruptcy trustee against Spada’s brother and a third party to recover approximately 167,000 shares. On February 8, 2019, the bankruptcy court issued an order reducing AGI’s claim to $888,638 which consisted of the judgment and a $200,000 claim for failure to disclose certain liabilities. On July 21, 2021, the bankruptcy trustee paid the Company $498,120, which is included in "other income (expense), net" in the accompanying consolidated statements of operations. As a result, the Company wrote off the net receivable of $45,329, described in Note 5, at July 31, 2021. No further assets are available for distribution. Regulatory Matters The Company’s subsidiaries, Aspen University and United States University, are 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 the subsidiaries 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. On April 16, 2021, the DOE granted provisional certification for a two-year timeframe, and set a subsequent program participation reapplication date of September 30, 2023. USU currently has provisional certification to participate in the Title IV Programs due to its acquisition by the Company. The provisional certification allows the school to continue to receive Title IV funding as it did prior to the change of ownership. The provisional certification expired on December 31, 2020. While the institution submitted its recertification application timely in October 2020, the DOE has not issued its final certification. The institution is able to continue operating under its current participation agreement until the DOE issues its recertification. 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 our subsidiaries operate in a highly regulated industry, each 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. Title IV Funding Aspen University and United States University derive a portion of their revenue from financial aid received by its students under programs authorized by Title IV of the HEA, which are administered by the US Department of Education. When Aspen University students seek funding from the federal government, they receive loans and grants to fund their education under the following Title IV Programs: (1) the Federal Direct Loan program, or Direct Loan; (2) the Federal Pell Grant program, or Pell; (3) Federal Work Study and (4) Federal Supplemental Opportunity Grants. For the fiscal year ended April 30, 2020, approximately 31% of Aspen University’s and 33% for United States University's cash-basis revenue for eligible tuition and fees were derived from Title IV Programs. 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 the DOE 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. On September 28, 2020, the DOE notified USU that the funds held for a letter of credit in the amount of $255,708, based on the audited same day balance sheet requirements that apply in a change of control, which was funded by the University’s sole shareholder, AGI, were released. In August 2020, the DOE informed USU that it is required to post a new letter of credit in the amount of $379,345, based on the current level of Title IV funding. This irrevocable letter of credit was to expire on August 25, 2021. Pursuant to USU’s provisional Program Participation Agreement ("PPA"), the DOE indicated that USU must agree to participate in Title IV under the HCM1 funding process; however, the DOE does retain discretion on whether or not to implement that term of the agreement. Although DOE has not, to date, notified USU that it has been placed in the HCM1 funding process, nor does the DOE’s public disclosure website identify USU as being on HCM1, it is possible that prior to the end of the PPA term, the DOE may notify USU that it must begin funding under the HCM1 procedure. If this occurs, the Company believes this will not have a material impact on the consolidated financial statements. In December 2020, the DOE reduced USU's existing letter of credit by $369,473, which was required to be posted based on the level of Title IV funding. In connection with USU's most recent Compliance Audit, USU currently maintains a letter of credit of $9,872 at July 31, 2021. Approval to Confer Degrees Aspen University is a Delaware corporation and is approved to operate in the State of Delaware. Aspen University is authorized by the Colorado Commission on Education in the State of Colorado and the Arizona State Board for Private Post-Secondary Education in the State of Arizona to operate as a degree granting institution for all degrees. Aspen University is authorized to operate as a degree granting institution for bachelor degrees by the Texas Higher Education Coordinating Board in the State of Texas. Aspen University has been granted Optional Expedited Authorization as a postsecondary educational institution in Tennessee for its Bachelor of Science in Nursing (Pre-Licensure) degree program. Aspen University has received a Provisional License for its Bachelor of Science in Nursing (Pre-Licensure) degree program to operate in the state of Florida by the Commission for Independent Education of the Florida Department of Education and is in the process for full licensure. USU is also a Delaware corporation and received initial approval from the Delaware DOE to confer degrees through June 2023. United States University is authorized by the California Bureau of Private Postsecondary Education and the Arizona State Board for Private Post-Secondary Education to operate as degree granting institutions for all degrees. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jul. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On August 31, 2021, the Company extended the Credit Facility Agreement with the Foundation discussed in Note 6 by one year to November 4, 2022. The Credit Facility Agreement provides for a $5,000,000 Facility evidenced by the Revolving Note. Borrowings under the Credit Facility Agreement bear interest at 12% per annum. In conjunction with the extension of the Facility, the Company drew down $5,000,000 of funds from the Facility at 12% interest per annum due November 4, 2022. Additionally, on August 31, 2021 the Company issued to the Foundation warrants to purchase 50,000 shares of the Company’s common stock exercisable for five years from the date of issuance at the exercise price of $5.89 per share. Effective August 16, 2021, the Company entered into an Employment Agreement with Matthew LaVay, who had been appointed as the Chief Financial Officer of the Company on July 8, 2021 with the effective date of August 16, 2021. The Employment Agreement provides that Mr. LaVay will serve as the Chief Financial Officer of the Company for a period of four years, subject to an automatic renewal for successive one-year terms unless prior notice of non-renewal is given by either party. Pursuant to his Employment Agreement, Mr. LaVay will receive annual base salary of $325,000, such other compensation and benefits as set forth in the Employment Agreement, and will be eligible to participate in the Company’s executive performance bonus plan. Additionally, on August 16, 2021, Mr. LaVay received a grant of 125,000 RSUs, pursuant to his Employment Agreement. The RSUs will vest in three approximately equal annual increments with the first increment vesting on August 16, 2022, subject to continued employment on each applicable vesting date. Each RSU represents a right to receive one share of the Company’s common stock. The RSUs were granted under the Aspen Group, Inc. 2018 Plan. On the grant date, the closing price of the Company's common stock on The Nasdaq Global Market was $5.80 per share. The a mortization expense related to this transaction over the three year vesting term will be $725,000, which will be included in general and administrative expense in the consolidated statements of operations. On August 12, 2021, Mr. Gerard Wendolowski, the Chief Operating Officer of the Company, and Dr. Cheri St. Arnauld, the Company’s Chief Academic Officer, received a grant of 80,000 RSUs each. The RSUs will vest in three nearly equal annual increments with the first increment vesting on August 12, 2022, subject to continued service as an officer of the Company on each applicable vesting date. Each RSU represents a contingent right to receive one share of the Company’s common stock. The RSUs were granted under the Aspen Group, Inc. 2018 Plan and were approved by the Compensation Committee of the Board of Directors of the Company. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Jul. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"). The consolidated financial statements include the accounts of AGI and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Accounting Estimates | Accounting Estimates Management of the Company is required to make certain estimates, judgments and assumptions during the preparation of its consolidated financial statements in accordance with GAAP. These estimates, judgments and assumptions impact the reported amounts of assets, liabilities, revenue and expenses and the related disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Significant estimates in the accompanying consolidated financial statements include the allowance for doubtful accounts and other receivables, the valuation of lease liabilities and the carrying value of the related right-of-use ("ROU") assets, depreciable lives of property and equipment, amortization periods and valuation of courseware, intangibles and software development costs, valuation of goodwill, valuation of loss contingencies, valuation of stock-based compensation and the valuation allowance on deferred tax assets. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash 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. Restricted cash as of July 31, 2021 of $3,722,831 primarily consists of $934,125 which is collateral for letters of credit for the Aspen University and USU facility operating leases, $9,872 which is collateral for a letter of credit for USU required to be posted based on the level of Title IV funding in connection with USU's most recent Compliance Audit, and a $250,000 compensating balance under a secured credit line. Also included are funds held for students for unbilled educational services that were received from Title IV and non-Title IV programs totaling $2,528,834. As an administrator of these Title IV program funds, the Company is required to maintain and restrict these funds pursuant to the terms of the program participation agreement with the U.S. Department of Education. Restricted cash as of April 30, 2021 of $5,152,789 primarily consisted of $934,125 which is collateral for letters of credit for the Aspen University and USU facility operating leases, $9,872 which is collateral for a letter of credit for USU required to be |
Concentration of Credit Risk | Concentration of Credit RiskThe 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 July 31, 2021. |
Revenue Recognition and Deferred Revenue | Revenue Recognition and Deferred Revenue The Company follows Accounting Standards Codification 606 (ASC 606). ASC 606 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASC also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer purchase orders, including significant judgments. Revenue consists primarily of tuition and course fees derived from courses taught by the Company online and in-person as well as from related educational resources and services that the Company provides to its students. Under ASC 606, tuition and course fee revenue is recognized pro-rata over the applicable period of instruction and are not considered separate performance obligations. Non-tuition related revenue and fees are recognized as services are provided or when the goods are received by the student. (See Note 8) 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 revenue may be recognized as sales occur or services are performed. |
Net Loss Per Share | Net Loss Per Share Net loss per share is based on the weighted average number of shares of common stock outstanding during each period. Options to purchase 1,141,396 and 1,032,411 shares of common stock, 653,937 and 549,972 restricted stock units ("RSUs"), warrants to purchase 374,174 and 374,174 shares of common stock, and unvested restricted stock of 8,224 and 8,224 were outstanding at July 31, 2021 and April 30, 2021, respectively. All shares mentioned above were not included in the computation of diluted net loss per share because the effects would have been anti-dilutive. The options, warrants, RSUs, unvested restricted stock and Convertible Notes are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share of common stock 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 and campus students regardless of geography. The Company's chief operating decision makers, its Chief Executive Officer, Chief Operating Officer and Chief Academic Officer, manage the Company's operations as a whole. |
Recent Accounting Pronouncement Not Yet Adopted | Recent Accounting Pronouncement Not Yet Adopted ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which significantly changes how entities will measure credit losses for most financial assets, including accounts receivable. ASU No. 2016-13 will replace today’s “incurred loss” approach with an “expected loss” model, under which companies will recognize allowances based on expected rather than incurred losses. On November 15, 2019, the FASB delayed the effective date of Topic 326 for certain small public companies and other private companies until fiscal years beginning after December 15, 2022 for SEC filers that are eligible to be smaller reporting companies under the SEC’s definition, as well as private companies and not-for-profit entities. The Company is currently evaluating the new guidance and has not yet determined whether the adoption of the new standard will have a material impact on its consolidated financial statements or the method of adoption. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Software | Software consisted of the following: July 31, April 30, Software $ 8,951,241 $ 8,488,635 Accumulated amortization (3,855,985) (3,444,325) Software, net $ 5,095,256 $ 5,044,310 Courseware and accreditation consisted of the following: July 31, April 30, Courseware $ 539,893 $ 408,222 Accreditation 59,350 59,350 599,243 467,572 Accumulated amortization (296,223) (280,276) Courseware and accreditation, net $ 303,020 $ 187,296 |
Depreciation and Amortization Expense | Depreciation and amortization expense for property and equipment and software is summarized below: Three Months Ended 2021 2020 Depreciation and amortization expense: Property and equipment, excluding software $ 351,373 $ 163,570 Software $ 411,661 $ 315,107 |
Courseware and Accreditation (T
Courseware and Accreditation (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Courseware and Accreditation | Software consisted of the following: July 31, April 30, Software $ 8,951,241 $ 8,488,635 Accumulated amortization (3,855,985) (3,444,325) Software, net $ 5,095,256 $ 5,044,310 Courseware and accreditation consisted of the following: July 31, April 30, Courseware $ 539,893 $ 408,222 Accreditation 59,350 59,350 599,243 467,572 Accumulated amortization (296,223) (280,276) Courseware and accreditation, net $ 303,020 $ 187,296 |
Schedule of Amortization Expense of Courseware and Accreditation | Amortization expense for courseware and accreditation is summarized below: Three Months Ended July 31, 2021 2020 Amortization expense $ 15,948 $ 11,947 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Restricted Stock Unit Activity | A summary of the Company’s RSU activity during the three months ended July 31, 2021 is presented below: Restricted Stock Units Number of Shares Weighted Average Grant Price Unvested balance outstanding, April 30, 2021 549,972 $ 6.58 Granted 127,542 6.97 Forfeits (7,920) 9.37 Vested (15,657) 6.26 Expired — — Unvested balance outstanding, July 31, 2021 653,937 $ 6.07 |
Summary of Warrant Activity | A summary of the Company’s warrant activity during the three months ended July 31, 2021 is presented below: Warrants Number of Weighted Weighted Aggregate Balance Outstanding, April 30, 2021 374,174 $ 6.37 1.90 $ — Granted 25,000 $ 6.99 4.98 — Exercised — $ — — — Surrendered — $ — — — Expired — $ — — — Balance Outstanding, July 31, 2021 399,174 $ 6.41 1.85 $ 144,000 Exercisable, July 31, 2021 374,174 $ 6.37 1.54 $ 144,000 |
Share-based Payment Arrangement, Option, Exercise Price Range | OUTSTANDING WARRANTS EXERCISABLE WARRANTS Exercise Weighted Outstanding Weighted Weighted Exercisable $ 4.89 $ 4.89 50,000 $ 4.89 3.44 50,000 $ 6.00 $ 6.00 100,000 $ 6.00 3.09 100,000 $ 6.87 $ 6.87 224,174 $ 6.87 1.48 224,174 $ 6.99 $ 6.99 25,000 $ — 0.00 — 399,174 374,174 OUTSTANDING OPTIONS EXERCISABLE OPTIONS Exercise Weighted Outstanding Weighted Weighted Exercisable $2.28 to $2.76 $ 2.76 10,423 $ 2.76 0.17 10,423 $3.24 to $4.38 $ 3.82 183,249 $ 3.80 1.03 168,914 $4.50 to $5.20 $ 4.94 354,778 $ 4.93 1.39 310,885 $5.95 to $6.28 $ 5.95 28,000 $ 5.95 1.06 28,000 $7.17 to $7.55 $ 7.45 473,425 $ 7.46 2.07 465,425 $8.57 to $9.07 $ 8.98 157,749 $ 8.98 1.44 157,749 1,207,624 1,141,396 |
Summary of Stock Option Activity | A summary of the Company’s stock option activity for employees and directors during the three months ended July 31, 2021, is presented below: Options Number of Weighted Weighted Aggregate Balance Outstanding, April 30, 2021 1,214,473 $ 6.24 1.88 $ 204,719 Granted — — — — Exercised (5,097) 6.16 — — Forfeited (1,752) 4.68 — — Expired — — — — Balance Outstanding, July 31, 2021 1,207,624 $ 6.29 1.65 $ 1,150,849 Exercisable, July 31, 2021 1,141,396 $ 6.36 1.60 $ 1,044,364 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table represents our revenue disaggregated by the nature and timing of services: Three Months Ended 2021 2020 Tuition - recognized over period of instruction $ 17,121,680 $ 13,367,308 Course fees - recognized over period of instruction 2,003,340 1,599,693 Book fees - recognized at a point in time 27,759 39,138 Exam fees - recognized at a point in time 196,042 70,655 Service fees - recognized at a point in time 82,174 88,768 $ 19,430,995 $ 15,165,562 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jul. 31, 2021 | |
Leases [Abstract] | |
Schedule of Right-of-Use Assets and Operating Lease Liabilities | ROU assets are summarized below: July 31, 2021 April 30, 2021 ROU assets - Operating facility leases $ 14,308,296 $ 14,308,296 Less: accumulated reduction (2,065,840) (1,593,433) Total ROU assets $ 12,242,456 $ 12,714,863 Operating lease obligations, related to the ROU assets are summarized below: July 31, 2021 April 30, 2021 Total lease liabilities $ 19,946,229 $ 19,946,229 Reduction of lease liabilities (1,995,109) (1,617,600) Total operating lease obligations $ 17,951,120 $ 18,328,629 |
Future Minimum Payments Under Operating Leases | The following is a schedule by fiscal years of future minimum lease payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of July 31, 2021 (a) (by fiscal year) . Maturity of Lease Obligations Lease Payments 2022 (remaining) $ 3,076,200 2023 3,647,737 2024 3,514,179 2025 3,288,066 2026 3,383,530 Thereafter 10,417,592 Total future minimum lease payments 27,327,304 Less: imputed interest (9,376,184) Present value of operating lease liabilities $ 17,951,120 _____________________ (a) Lease payments exclude $3.5 million |
Schedule of Balance Sheet Information Related to Leases | Balance Sheet Classification July 31, 2021 April 30, 2021 Operating lease obligations, current portion $ 2,086,076 $ 2,029,821 Operating lease obligations, less current portion 15,865,044 16,298,808 Total operating lease liabilities $ 17,951,120 $ 18,328,629 |
Schedule of Other Information Related to Leases | Other Information July 31, 2021 Weighted average remaining lease term (in years) 7.29 Weighted average discount rate 12 % |
Nature of Operations (Details)
Nature of Operations (Details) | 3 Months Ended | 5 Months Ended | ||
Jul. 31, 2021USD ($)studentlocationsubsidiary | Apr. 30, 2021USD ($) | Jul. 31, 2020USD ($) | Jan. 31, 2021USD ($) | |
Debt Instrument [Line Items] | ||||
Number of subsidiaries | subsidiary | 2 | |||
Percentage of nursing students seeking degree | 87.00% | |||
Number of degree-seeking nursing students | 12,058 | |||
Number of students | 13,879 | |||
Number of metro locations | location | 4 | |||
Revenue | $ | $ 19,430,995 | $ 19,100,000 | $ 15,165,562 | |
Increase in revenue compared to previous forecast | $ | $ 500,000 | |||
Aspen Nursing | ||||
Debt Instrument [Line Items] | ||||
Increase (decrease) in course registration (as a percent) | 4.00% | |||
Increase (decrease) in revenue | $ | $ 520,000 | |||
BSN Pre-Licensure Program | ||||
Debt Instrument [Line Items] | ||||
Number of degree-seeking nursing students | 2,364 | |||
Registered Nurses (RNs) | ||||
Debt Instrument [Line Items] | ||||
Percentage of nursing students seeking degree | 70.00% | |||
Number of degree-seeking nursing students | 9,694 |
Significant Accounting Polici_3
Significant Accounting Policies - Narrative (Details) | 3 Months Ended | |||
Jul. 31, 2021USD ($)segmentshares | Apr. 30, 2021USD ($)shares | Dec. 31, 2020USD ($) | Jul. 31, 2020USD ($)shares | |
Short-term Debt [Line Items] | ||||
Restricted cash | $ | $ 3,722,831 | $ 5,152,789 | $ 3,060,269 | |
Cash, uninsured amount | $ | $ 9,732,634 | 13,005,537 | ||
Exercisable number of options (in shares) | shares | 1,141,396 | |||
Number of reportable segments | segment | 1 | |||
Collateral Pledged, Aspen University Letter of Credit | ||||
Short-term Debt [Line Items] | ||||
Restricted cash | $ | $ 934,125 | 934,125 | ||
Collateral Pledged, Bank Letter of Credit | ||||
Short-term Debt [Line Items] | ||||
Restricted cash | $ | 9,872 | 9,872 | $ 369,473 | |
Secured Credit Line | ||||
Short-term Debt [Line Items] | ||||
Restricted cash | $ | 250,000 | 250,000 | ||
Unbilled Educational Services | ||||
Short-term Debt [Line Items] | ||||
Restricted cash | $ | $ 2,528,834 | $ 3,958,792 | ||
Stock Incentive Plan and Stock Option Grants to Employees and Directors | ||||
Short-term Debt [Line Items] | ||||
Exercisable number of options (in shares) | shares | 1,141,396 | 1,032,411 | ||
Restricted Stock Units (RSUs) | ||||
Short-term Debt [Line Items] | ||||
Unvested shares of restricted common stock outstanding (in shares) | shares | 653,937 | 549,972 | ||
Warrant | ||||
Short-term Debt [Line Items] | ||||
Exercisable number of options (in shares) | shares | 374,174 | |||
Exercisable awards (in shares) | shares | 374,174 | 374,174 | ||
Restricted Stock | ||||
Short-term Debt [Line Items] | ||||
Unvested shares of restricted common stock outstanding (in shares) | shares | 8,224 | 8,224 | 16,448 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Software (Details) - USD ($) | Jul. 31, 2021 | Apr. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Software | $ 599,243 | $ 467,572 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Software | 8,951,241 | 8,488,635 |
Accumulated amortization | (3,855,985) | (3,444,325) |
Total | $ 5,095,256 | $ 5,044,310 |
Property and Equipment - Deprec
Property and Equipment - Depreciation and Amortization Expense (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Property and equipment, excluding software | $ 351,373 | $ 163,570 |
Software | $ 411,661 | $ 315,107 |
Courseware and Accreditation -
Courseware and Accreditation - Narrative (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Courseware, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Courseware costs capitalized | $ 131,669 | $ 3,050 |
Courseware and Accreditation _2
Courseware and Accreditation - Schedule of Courseware and Accreditation (Details) - USD ($) | Jul. 31, 2021 | Apr. 30, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Software | $ 599,243 | $ 467,572 |
Courseware | ||
Finite-Lived Intangible Assets [Line Items] | ||
Software | 539,893 | 408,222 |
Accreditation | ||
Finite-Lived Intangible Assets [Line Items] | ||
Software | 59,350 | 59,350 |
Courseware, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (296,223) | (280,276) |
Total | $ 303,020 | $ 187,296 |
Courseware and Accreditation -S
Courseware and Accreditation -Schedule of Amortization Expense of Courseware and Accreditation (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Courseware, net | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 15,948 | $ 11,947 |
Secured Note and Accounts Rec_2
Secured Note and Accounts Receivable (Details) - USD ($) | Jul. 31, 2021 | Jul. 01, 2021 | Apr. 30, 2021 | Sep. 30, 2014 |
Related Party Transaction [Line Items] | ||||
Accounts receivable, before allowance for credit loss, noncurrent | $ 772,793 | |||
Accounts receivable, net of allowance | $ 0 | $ 45,329 | ||
Parent Company | ||||
Related Party Transaction [Line Items] | ||||
Accounts receivable, net of allowance | $ 45,329 | |||
HEMG | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from bankruptcy claims | $ 498,120 | |||
Writeoff of net receivable | $ 45,329 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Aug. 31, 2021 | Nov. 05, 2018 | Jul. 31, 2021 | Apr. 30, 2021 |
Debt Instrument [Line Items] | ||||
Debt issue cost, net | $ 9,722 | $ 18,056 | ||
Credit Facility Agreement | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 5,000,000 | |||
Interest rate of debt (as a percent) | 12.00% | |||
Line of credit, outstanding balance | $ 0 | $ 0 | ||
One-time upfront facility fee | $ 100,000 | |||
One-time extension fee (as a percent) | 2.00% | |||
Number of securities called by warrants or rights (in shares) | 92,049 | |||
Warrant term | 5 years | |||
Exercise price of warrants (in dollars per share) | $ 5.85 | |||
Fair value of warrants outstanding | $ 255,071 | |||
Credit Facility Agreement | Revolving Credit Facility | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 5,000,000 | |||
Interest rate of debt (as a percent) | 12.00% | |||
Debt instrument, extension term | 1 year | |||
Proceeds from lines of credit | $ 5,000,000 | |||
Number of securities called by warrants or rights (in shares) | 50,000 | |||
Exercise price of warrants (in dollars per share) | $ 5.89 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) | Jul. 21, 2021USD ($)$ / sharesshares | Feb. 04, 2020$ / shares | Jul. 31, 2021USD ($)plan$ / sharesshares | Jul. 31, 2020USD ($)shares | Apr. 30, 2021USD ($)shares | Dec. 21, 2020shares | Dec. 20, 2020shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of stock-based incentive plans | plan | 2 | ||||||
Common stock, shares authorized (in shares) | shares | 40,000,000 | 40,000,000 | |||||
Share price (in dollars per share) | $ / shares | $ 9.49 | ||||||
Common stock issued for stock options exercised for cash | $ 22,548 | $ 1,269,982 | |||||
Unrecognized compensation costs | 55,007 | ||||||
Stock based compensation expense | $ 542,712 | 487,110 | |||||
Treasury stock (in shares) | shares | 155,486 | 155,486 | |||||
Treasury stock, value | $ 1,817,414 | $ 1,817,414 | |||||
Modification charge for warrants exercised | $ 25,966 | ||||||
Cooperman Warrants | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of securities called by warrants or rights (in shares) | shares | 192,049 | ||||||
Modification charge for warrants exercised | $ 25,966 | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unvested shares of restricted common stock outstanding (in shares) | shares | 8,224 | 16,448 | 8,224 | ||||
Total unrecognized compensation expense | $ 17,545 | ||||||
Weighted average recognition period | 5 months 1 day | ||||||
Stock based compensation expense | $ 10,527 | $ 10,524 | |||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unvested shares of restricted common stock outstanding (in shares) | shares | 653,937 | 549,972 | |||||
Total unrecognized compensation expense | $ 3,972,803 | ||||||
Weighted average recognition period | 1 year 5 months 26 days | ||||||
Restricted shares granted (in shares) | shares | 127,542 | ||||||
Amortization expense | $ 112,155 | 111,211 | |||||
Stock based compensation expense | $ 446,777 | 307,852 | |||||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche Three | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unvested shares of restricted common stock outstanding (in shares) | shares | 195,000 | ||||||
Total unrecognized compensation expense | $ 1,121,555 | ||||||
Weighted average recognition period | 4 years | ||||||
Minimum closing price of common stock (in dollars per share) | $ / shares | $ 12 | ||||||
Consecutive trading days | 20 days | ||||||
Restricted Stock Units (RSUs) | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted shares granted (in shares) | shares | 125,000 | 125,000 | |||||
Fair value of RSUs | $ 873,750 | ||||||
Share price (in dollars per share) | $ / shares | $ 6.99 | ||||||
Expiration period of award | 3 years | ||||||
Amortization expense | $ 72,813 | ||||||
Amortization period of expense | 1 year | ||||||
Restricted Stock Units (RSUs) | Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted shares granted (in shares) | shares | 2,542 | ||||||
Fair value of RSUs | $ 14,943 | ||||||
Vesting period of award (in years) | 3 years | ||||||
Restricted Stock Units (RSUs) | Employees | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Grant price of award (in dollars per share) | $ / shares | $ 4.92 | ||||||
Restricted Stock Units (RSUs) | Employees | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Grant price of award (in dollars per share) | $ / shares | $ 6.50 | ||||||
Warrant | Former Board of Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Amortization expense | $ 2,333 | ||||||
Number of securities called by warrants or rights (in shares) | shares | 25,000 | ||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 6.99 | ||||||
Exercise period of warrant | 5 years | ||||||
Vesting period of warrant | 3 years | ||||||
Fair value of warrants outstanding | $ 84,000 | ||||||
Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average recognition period | 1 year | ||||||
Stock based compensation expense | $ 85,408 | $ 168,734 | |||||
2018 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, shares authorized (in shares) | shares | 1,600,000 | 1,100,000 | |||||
Common stock, shares remaining for future issuance (in shares) | shares | 549,739 | 549,739 | |||||
Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, shares remaining for future issuance (in shares) | shares | 431,869 | 431,869 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) | 3 Months Ended |
Jul. 31, 2021$ / sharesshares | |
Number of Shares | |
Unvested Balance Outstanding at April 30, 2021 (in shares) | shares | 549,972 |
Granted (in shares) | shares | 127,542 |
Forfeited (in shares) | shares | (7,920) |
Vested (in shares) | shares | (15,657) |
Expired (in shares) | shares | 0 |
Unvested Balance Outstanding, July 31, 2021 (in shares) | shares | 653,937 |
Weighted Average Grant Price | |
Unvested Balance Outstanding at April 30, 2021 (in dollars per share) | $ / shares | $ 6.58 |
Granted (in dollars per share) | $ / shares | 6.97 |
Forfeits (in dollars per share) | $ / shares | 9.37 |
Vested (in dollars per share) | $ / shares | 6.26 |
Expired (in dollars per share) | $ / shares | 0 |
Unvested Balance Outstanding at July 31, 2021 (in dollars per share) | $ / shares | $ 6.07 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Warrant Activity (Details) - Warrant - USD ($) | Jul. 31, 2021 | Apr. 30, 2021 | Jul. 31, 2021 |
Number of Shares | |||
Balance Outstanding, April 30, 2021 (in shares) | 374,174 | ||
Granted (in shares) | 25,000 | ||
Warrants exercised (in shares) | 0 | ||
Surrendered (in shares) | 0 | ||
Expired (in shares) | 0 | ||
Balance Outstanding, July 31, 2021 (in shares) | 399,174 | 374,174 | 399,174 |
Exercisable, July 31, 2021 (in shares) | 374,174 | 374,174 | 374,174 |
Weighted Average Exercise Price | |||
Balance Outstanding, April 30, 2021 (in dollars per share) | $ 6.37 | ||
Granted (in dollars per share) | 6.99 | ||
Exercised (in dollars per share) | 0 | ||
Surrendered (in dollars per share) | 0 | ||
Expired (in dollars per share) | 0 | ||
Balance Outstanding, July 31, 2021 (in dollars per share) | $ 6.41 | $ 6.37 | 6.41 |
Exercisable, July 31, 2021 (in dollars per share) | $ 6.37 | $ 6.37 | |
Weighted Average Remaining Contractual Term | |||
Weighted Average Remaining Contractual Term, Outstanding | 1 year 10 months 6 days | 1 year 10 months 24 days | |
Weighted Average Remaining Contractual Term, Granted | 4 years 11 months 23 days | ||
Weighted Average Remaining Contractual Term, Exercisable | 1 year 6 months 14 days | ||
Aggregate Intrinsic Value | |||
Average Intrinsic Value | $ 144,000 | $ 0 | $ 144,000 |
Aggregate Intrinsic Value, Exercisable | $ 144,000 | $ 144,000 |
Stockholders' Equity - Share-ba
Stockholders' Equity - Share-based Payment Arrangement, Option, Exercise Price Range (Details) | 3 Months Ended |
Jul. 31, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding (in shares) | shares | 1,207,624 |
Exercisable (in shares) | shares | 1,141,396 |
Warrant | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding (in shares) | shares | 399,174 |
Exercisable (in shares) | shares | 374,174 |
Warrant | $4.89 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Minimum exercise price (in dollars per share) | $ 4.89 |
Maximum exercise price (in dollars per share) | 4.89 |
Weighted average exercise price (in dollars per share) | $ 4.89 |
Outstanding (in shares) | shares | 50,000 |
Weighted average exercise price (in dollars per share) | $ 4.89 |
Weighted average remaining life in years | 3 years 5 months 8 days |
Exercisable (in shares) | shares | 50,000 |
Warrant | $6.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Minimum exercise price (in dollars per share) | $ 6 |
Maximum exercise price (in dollars per share) | 6 |
Weighted average exercise price (in dollars per share) | $ 6 |
Outstanding (in shares) | shares | 100,000 |
Weighted average exercise price (in dollars per share) | $ 6 |
Weighted average remaining life in years | 3 years 1 month 2 days |
Exercisable (in shares) | shares | 100,000 |
Warrant | $6.87 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Minimum exercise price (in dollars per share) | $ 6.87 |
Maximum exercise price (in dollars per share) | 6.87 |
Weighted average exercise price (in dollars per share) | $ 6.87 |
Outstanding (in shares) | shares | 224,174 |
Weighted average exercise price (in dollars per share) | $ 6.87 |
Weighted average remaining life in years | 1 year 5 months 23 days |
Exercisable (in shares) | shares | 224,174 |
Warrant | $6.99 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Minimum exercise price (in dollars per share) | $ 6.99 |
Maximum exercise price (in dollars per share) | 6.99 |
Weighted average exercise price (in dollars per share) | $ 6.99 |
Outstanding (in shares) | shares | 25,000 |
Weighted average exercise price (in dollars per share) | $ 0 |
Weighted average remaining life in years | 0 years |
Exercisable (in shares) | shares | 0 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Option Activity (Details) - USD ($) | Jul. 31, 2021 | Apr. 30, 2021 | Jul. 31, 2021 |
Number of Shares | |||
Balance Outstanding, July 31, 2021 (in shares) | 1,207,624 | 1,207,624 | |
Exercisable, July 31, 2021 (in shares) | 1,141,396 | 1,141,396 | |
Stock Incentive Plan and Stock Option Grants to Employees and Directors | |||
Number of Shares | |||
Balance Outstanding, April 30, 2021 (in shares) | 1,214,473 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | (5,097) | ||
Forfeited (in shares) | (1,752) | ||
Expired (in shares) | 0 | ||
Balance Outstanding, July 31, 2021 (in shares) | 1,207,624 | 1,214,473 | 1,207,624 |
Exercisable, July 31, 2021 (in shares) | 1,141,396 | 1,032,411 | 1,141,396 |
Weighted Average Exercise Price | |||
Balance Outstanding, April 30, 2021 (in dollars per share) | $ 6.24 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 6.16 | ||
Forfeited (in dollars per share) | 4.68 | ||
Expired (in dollars per share) | 0 | ||
Balance Outstanding, July 31, 2021 (in dollars per share) | $ 6.29 | $ 6.24 | 6.29 |
Exercisable, July 31, 2021 (in dollars per share) | $ 6.36 | $ 6.36 | |
Stock Option Activity, Additional Disclosures | |||
Options outstanding, weighted average remaining contractual term | 1 year 7 months 24 days | 1 year 10 months 17 days | |
Options exercisable, weighted average remaining contractual term | 1 year 7 months 6 days | ||
Options outstanding, aggregate intrinsic value | $ 1,150,849 | $ 204,719 | $ 1,150,849 |
Options exercisable, aggregate intrinsic value | $ 1,044,364 | $ 1,044,364 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of All Options and Exercisable Options (Details) | 3 Months Ended |
Jul. 31, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding (in shares) | shares | 1,207,624 |
Exercisable (in shares) | shares | 1,141,396 |
$2.28 to $2.76 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Minimum exercise price (in dollars per share) | $ 2.28 |
Maximum exercise price (in dollars per share) | 2.76 |
Weighted average exercise price (in dollars per share) | $ 2.76 |
Outstanding (in shares) | shares | 10,423 |
Weighted average exercise price (in dollars per share) | $ 2.76 |
Weighted average remaining life in years | 2 months 1 day |
Exercisable (in shares) | shares | 10,423 |
$3.24 to $4.38 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Minimum exercise price (in dollars per share) | $ 3.24 |
Maximum exercise price (in dollars per share) | 4.38 |
Weighted average exercise price (in dollars per share) | $ 3.82 |
Outstanding (in shares) | shares | 183,249 |
Weighted average exercise price (in dollars per share) | $ 3.80 |
Weighted average remaining life in years | 1 year 10 days |
Exercisable (in shares) | shares | 168,914 |
$4.50 to $5.20 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Minimum exercise price (in dollars per share) | $ 4.50 |
Maximum exercise price (in dollars per share) | 5.20 |
Weighted average exercise price (in dollars per share) | $ 4.94 |
Outstanding (in shares) | shares | 354,778 |
Weighted average exercise price (in dollars per share) | $ 4.93 |
Weighted average remaining life in years | 1 year 4 months 20 days |
Exercisable (in shares) | shares | 310,885 |
$5.95 to $6.28 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Minimum exercise price (in dollars per share) | $ 5.95 |
Maximum exercise price (in dollars per share) | 6.28 |
Weighted average exercise price (in dollars per share) | $ 5.95 |
Outstanding (in shares) | shares | 28,000 |
Weighted average exercise price (in dollars per share) | $ 5.95 |
Weighted average remaining life in years | 1 year 21 days |
Exercisable (in shares) | shares | 28,000 |
$7.17 to $7.55 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Minimum exercise price (in dollars per share) | $ 7.17 |
Maximum exercise price (in dollars per share) | 7.55 |
Weighted average exercise price (in dollars per share) | $ 7.45 |
Outstanding (in shares) | shares | 473,425 |
Weighted average exercise price (in dollars per share) | $ 7.46 |
Weighted average remaining life in years | 2 years 25 days |
Exercisable (in shares) | shares | 465,425 |
$8.57 to $9.07 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Minimum exercise price (in dollars per share) | $ 8.57 |
Maximum exercise price (in dollars per share) | 9.07 |
Weighted average exercise price (in dollars per share) | $ 8.98 |
Outstanding (in shares) | shares | 157,749 |
Weighted average exercise price (in dollars per share) | $ 8.98 |
Weighted average remaining life in years | 1 year 5 months 8 days |
Exercisable (in shares) | shares | 157,749 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregated Revenue (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 19,430,995 | $ 15,165,562 |
Tuition | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 17,121,680 | 13,367,308 |
Course fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,003,340 | 1,599,693 |
Book fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 27,759 | 39,138 |
Exam fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 196,042 | 70,655 |
Service fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 82,174 | $ 88,768 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue earned, deferred revenue | $ 6.8 | $ 3.7 |
Revenue Benchmark | Non-US | Customer Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of revenues from students outside the United States | 1.00% | 1.00% |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended | |
Jul. 31, 2021USD ($)ft² | Jul. 31, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Amount of office and classroom space leased (in square feet) | ft² | 154,528 | |
Lease extension term | 5 years | |
Total future minimum lease payments (as a percent) | 94.00% | |
Incremental borrowing rate (as a percent) | 12.00% | |
Amortization of tenant improvement allowances | $ 150,387 | $ 0 |
Lease expense | $ 936,737 | $ 397,238 |
Tampa, Florida | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 10 years | |
Austin, Texas | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 8 years | |
Phoenix, Arizona | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 7 years | |
Nashville, Tennessee | ||
Lessee, Lease, Description [Line Items] | ||
Leases not yet commenced, liability | $ 3,500,000 |
Leases - Schedule of Right-of-U
Leases - Schedule of Right-of-Use Assets (Details) - USD ($) | Jul. 31, 2021 | Apr. 30, 2021 |
Leases [Abstract] | ||
ROU assets - Operating facility leases | $ 14,308,296 | $ 14,308,296 |
Less: accumulated reduction | (2,065,840) | (1,593,433) |
Total ROU assets | $ 12,242,456 | $ 12,714,863 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Liabilities (Details) - USD ($) | Jul. 31, 2021 | Apr. 30, 2021 |
Leases [Abstract] | ||
Total lease liabilities | $ 19,946,229 | $ 19,946,229 |
Reduction of lease liabilities | (1,995,109) | (1,617,600) |
Present value of operating lease liabilities | $ 17,951,120 | $ 18,328,629 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments Under Operating Leases (Details) - USD ($) | Jul. 31, 2021 | Apr. 30, 2021 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2022 (remaining) | $ 3,076,200 | |
2023 | 3,647,737 | |
2024 | 3,514,179 | |
2025 | 3,288,066 | |
2026 | 3,383,530 | |
Thereafter | 10,417,592 | |
Total future minimum lease payments | 27,327,304 | |
Less: imputed interest | (9,376,184) | |
Present value of operating lease liabilities | $ 17,951,120 | $ 18,328,629 |
Leases - Schedule of Balance Sh
Leases - Schedule of Balance Sheet Information Related to Leases (Details) - USD ($) | Jul. 31, 2021 | Apr. 30, 2021 |
Balance Sheet Classification | ||
Operating lease obligations, current portion | $ 2,086,076 | $ 2,029,821 |
Operating lease obligations, less current portion | 15,865,044 | 16,298,808 |
Present value of operating lease liabilities | $ 17,951,120 | $ 18,328,629 |
Leases - Schedule of Other Info
Leases - Schedule of Other Information Related to Leases (Details) | Jul. 31, 2021 |
Other Information | |
Weighted average remaining lease term (in years) | 7 years 3 months 14 days |
Weighted average discount rate (percent) | 12.00% |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands | Jul. 31, 2021USD ($) |
Income Tax Disclosure [Abstract] | |
Reserve for estimate of foreign income tax liability | $ 150 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Jul. 31, 2021 | Jul. 01, 2021 | Apr. 16, 2021 | Feb. 08, 2019 | Jul. 31, 2021 | Apr. 30, 2020 | Apr. 30, 2021 | Dec. 31, 2020 | Sep. 28, 2020 | Aug. 31, 2020 | Jul. 31, 2020 | Oct. 15, 2015 | Sep. 29, 2015 | Feb. 11, 2013 |
Other Commitments [Line Items] | ||||||||||||||
Estimate of potential loss | $ 2,200,000 | |||||||||||||
Provisional certification, period | 2 years | |||||||||||||
Return of unearned funds, no later than (in days) | 45 days | |||||||||||||
Restricted cash | $ 3,722,831 | $ 3,722,831 | $ 5,152,789 | $ 3,060,269 | ||||||||||
Customer Concentration Risk | Revenue Benchmark | Title IV Programs, Aspen University | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Concentration risk, percentage | 31.00% | |||||||||||||
Customer Concentration Risk | Revenue Benchmark | Title IV Programs, United States University | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Concentration risk, percentage | 33.00% | |||||||||||||
Collateral Pledged, Bank Letter of Credit | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Restricted cash | 9,872 | $ 9,872 | $ 9,872 | $ 369,473 | ||||||||||
Letter of Credit | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Letters of credit outstanding, amount | $ 255,708 | $ 379,345 | ||||||||||||
HEMG | ||||||||||||||
Other Commitments [Line Items] | ||||||||||||||
Amount of default judgment in litigation matter | $ 772,793 | |||||||||||||
Number of AGI common stock remaining as sole asset in bankruptcy claim (in shares) | 208,000 | |||||||||||||
Number of AGI common stock filed in bankruptcy claim by third party (in shares) | 167,000 | |||||||||||||
Amount of claim filed | $ 888,638 | |||||||||||||
Loss contingency, damages sought, value | $ 200,000 | |||||||||||||
Proceeds from bankruptcy claims | $ 498,120 | |||||||||||||
Writeoff of net receivable | $ 45,329 |
Subsequent Events (Details)
Subsequent Events (Details) | Aug. 31, 2021USD ($)$ / sharesshares | Aug. 16, 2021USD ($)tranche$ / sharesshares | Aug. 12, 2021trancheshares | Jul. 31, 2021USD ($)shares | Jul. 31, 2020USD ($) | Feb. 04, 2020$ / shares | Nov. 05, 2018USD ($)$ / sharesshares |
Subsequent Event [Line Items] | |||||||
Share price (in dollars per share) | $ / shares | $ 9.49 | ||||||
Revolving Credit Facility | Credit Facility Agreement | |||||||
Subsequent Event [Line Items] | |||||||
Line of credit, maximum borrowing capacity | $ | $ 5,000,000 | ||||||
Interest rate of debt (as a percent) | 12.00% | ||||||
Number of securities called by warrants or rights (in shares) | 92,049 | ||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 5.85 | ||||||
Restricted Stock Units (RSUs) | |||||||
Subsequent Event [Line Items] | |||||||
Granted (in shares) | 127,542 | ||||||
Amortization expense | $ | $ 112,155 | $ 111,211 | |||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Share price (in dollars per share) | $ / shares | $ 5.80 | ||||||
Subsequent Event | Revolving Credit Facility | Credit Facility Agreement | |||||||
Subsequent Event [Line Items] | |||||||
Debt instrument, extension term | 1 year | ||||||
Line of credit, maximum borrowing capacity | $ | $ 5,000,000 | ||||||
Interest rate of debt (as a percent) | 12.00% | ||||||
Proceeds from lines of credit | $ | $ 5,000,000 | ||||||
Number of securities called by warrants or rights (in shares) | 50,000 | ||||||
Vesting period of warrant | 5 years | ||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 5.89 | ||||||
Subsequent Event | Chief Operating Officer | Common Stock | |||||||
Subsequent Event [Line Items] | |||||||
Shares received upon vesting of award | 1 | ||||||
Subsequent Event | Chief Operating Officer | Restricted Stock Units (RSUs) | |||||||
Subsequent Event [Line Items] | |||||||
Granted (in shares) | 80,000 | ||||||
Number of equal annual increments | tranche | 3 | ||||||
Subsequent Event | Chief Academic Officer | Common Stock | |||||||
Subsequent Event [Line Items] | |||||||
Shares received upon vesting of award | 1 | ||||||
Subsequent Event | Chief Academic Officer | Restricted Stock Units (RSUs) | |||||||
Subsequent Event [Line Items] | |||||||
Granted (in shares) | 80,000 | ||||||
Number of equal annual increments | tranche | 3 | ||||||
Subsequent Event | Chief Financial Officer | |||||||
Subsequent Event [Line Items] | |||||||
Employment period | 4 years | ||||||
Automatic renewal term | 1 year | ||||||
Annual base salary | $ | $ 325,000 | ||||||
Subsequent Event | Chief Financial Officer | Common Stock | |||||||
Subsequent Event [Line Items] | |||||||
Shares received upon vesting of award | 1 | ||||||
Subsequent Event | Chief Financial Officer | Restricted Stock Units (RSUs) | |||||||
Subsequent Event [Line Items] | |||||||
Granted (in shares) | 125,000 | ||||||
Number of equal annual increments | tranche | 3 | ||||||
Vesting period of award (in years) | 3 years | ||||||
Amortization expense | $ | $ 725,000 |