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Aspen Group, Inc. (ASPU) SEC Filing 10-K Annual Report for the fiscal year ending Saturday, April 30, 2022

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ASPU Annual Reports

Aspen Group, Inc.

CIK: 1487198 Ticker: ASPU

 

EXHIBIT 99.1

 

 

 

FOR IMMEDIATE RELEASE: July 19, 2022

 

Aspen Group Reports 13% Increase in Revenue to $76.7 million for Fiscal Year 2022

 

Fourth Quarter 2022 Highlights

·Diligent corporate overhead management drives sequential decline in G&A
·Narrowed net loss to $(2.1) million from $(2.3) million
·Adjusted EBITDA, a non-GAAP financial measure, increased to $0.5 million compared to $(1.3) million in third quarter demonstrating leverage in the business model

 

NEW YORK – July 19, 2022 - Aspen Group, Inc. (Nasdaq: ASPU) (“AGI”), an education technology holding company, today announced financial results for its fourth quarter and fiscal year ended April 30, 2022.

 

Fourth Quarter and Full Fiscal Year 2022 Summary Results

 

   Three months ended
April 30,
   For the Years Ended
April 30,
 
$ in millions, except per share data  2022   2021   2022   2021 
Revenue  $19.4   $19.1   $76.7   $67.8 
Gross Profit1  $10.3   $9.9   $39.6   $36.9 
Gross Margin (%)1   53%   52%   52%   54%
Net Income (Loss)  $(2.1)  $(2.3)  $(9.6)  $(10.4)
Earnings (Loss) per Share  $(0.08)  $(0.09)  $(0.38)  $(0.44)
EBITDA2  $(0.8)  $(1.4)  $(5.1)  $(6.0)
Adjusted EBITDA2  $0.5   $0.6   $(1.0)  $1.3 

_______________________

1 GAAP gross profit calculation includes marketing and promotional costs, instructional costs and services, and amortization expense of $0.5 million and $0.4 million, and $1.8 million and $1.4 million, for the three months and years ended April 30, 2022 and 2021, respectively.

 

2 Non-GAAP financial measures. See reconciliations of GAAP to non-GAAP financial measures under "Non-GAAPFinancial Measures" starting on page 5.

 

“Judicious control of marketing expenses in the fourth quarter led to a narrower net loss, positive Adjusted EBITDA and reduced our cash burn without compromising our ability to achieve our revenue target for the fourth quarter,” said Michael Mathews, Chairman and CEO of AGI. “This performance demonstrates the leverage in our business model and our ability to improve our operating results with controlled spending. In the fourth quarter, we reduced our marketing spend sequentially by $1.0 million to ensure sufficient collateral for a surety bond requested by the State of Arizona. While this reduced enrollments in the fourth quarter, our USU MSN-FNP program was our fastest growing program in the quarter, demonstrating the demand for this high LTV program.

 

“Our business plans reflect future growth primarily from our new pre-licensure campuses and USU MSN-FNP program, which we believe will offset the near-term absence of core semester starts at the Arizona pre-licensure campuses. More than ever, our country recognizes the critical necessity to replace nurses who have left the field, and the need to grow the nursing population to meet the expected demand of future demographic trends. In addition, more FNPs are needed to meet our country's impending doctor shortage. Aspen Group is well-positioned to benefit from these long-term macro trends.”

 

 

 
 

 

Fiscal Q4 2022 Financial and Operational Results (compared to Fiscal Q4 2021)

 

Revenue increased to $19.4 million compared to $19.1 million. Aspen University’s (AU) revenue, which includes the high LTV BSN Pre-Licensure program, accounted for 66%, or $12.8 million, versus 70%, or $13.3 million of consolidated revenue. United States University (USU) revenue, which includes the high LTV MSN-FNP program, accounted for 34%, or $6.6 million, versus 30%, or $5.7 million, of consolidated revenue.

 

GAAP gross profit increased 4% to $10.3 million compared to $9.9 million. Gross margin was 53% compared to 52%. AU gross margin remained flat at 52% of AU revenue, and USU gross margin was 61% versus 57% of USU revenue.

 

AU instructional costs and services represented 27% of AU revenue, and USU instructional costs and services represented 27% of USU revenue. AU marketing and promotional costs represented 18% of AU revenue, while USU marketing and promotional costs represented 11% of USU revenue.

 

Net loss and net loss per share were ($2.1) million and ($0.08), respectively, compared to ($2.3) million and ($0.09), respectively. AU generated net income of $1.5 million versus $1.4 million, and USU generated net income of $1.3 million versus $1.0 million. AGI corporate incurred a net loss of ($5.0) million as compared to ($4.7) million.

 

EBITDA, a non-GAAP financial measure, was ($0.8) million and (4%) margin, respectively, compared to EBITDA of ($1.4) million and (8%) margin, respectively. AU generated EBITDA of $2.2 million and 17% margin as compared to $2.2 million and 16% margin. USU generated EBITDA of $1.5 million and 22% margin, as compared to $1.1 million and 19% margin. AGI corporate incurred EBITDA of ($4.5) million as compared to ($4.7) million.

 

Adjusted EBITDA, a non-GAAP financial measure, was $0.5 million and 3% margin, respectively, compared to Adjusted EBITDA of $0.6 million and 3% margin, respectively. AU generated Adjusted EBITDA of $2.5 million and 20% margin, as compared to $2.6 million and 20% margin. USU generated Adjusted EBITDA of $1.7 million and 26% margin as compared to $1.4 million and 24% margin. AGI corporate incurred Adjusted EBITDA of ($3.7) million as compared to ($3.3) million.

 

Fiscal Year 2022 Full Year Financial and Operational Results (versus Fiscal Year 2021)

Revenue increased 13% to $76.7 million compared to $67.8 million. AU revenue, which includes the high LTV BSN Pre-Licensure program, accounted for 68%, or $51.8 million, versus 71%, or $47.9 million of consolidated revenue. USU revenue, which includes the high LTV MSN-FNP program, accounted for 32%, or $24.9 million, versus 29%, or $19.9 million.

 

GAAP Gross profit increased by 7% to $39.6 million, or 52% gross margin, versus $36.9 million, or 54% gross margin. AU gross margin represented 51% versus 55% of AU revenue, and USU gross margin remained flat at 58% of USU revenue.

 

AU instructional costs and services represented 25% of AU revenue, while USU instructional costs and services represented 26% of USU revenue. AU marketing and promotional costs represented 20% of AU revenue, while USU marketing and promotional costs represented 16% of USU revenue.

 

 
 

 

Net loss was ($9.6) million and net loss per basic share of ($0.38), versus ($10.4) million and ($0.44) per share. AU generated $6.1 million of net income compared to $7.3 million, and USU generated $3.8 million of net income compared to $2.9 million. AGI corporate incurred a net loss of ($19.5) million compared to ($20.7) million.

 

EBITDA, a non-GAAP financial measure, was ($5.1) million and (7%) margin, as compared to EBITDA of ($6.0) million and (9%) margin. Adjusted EBITDA, a non-GAAP financial measure, was ($1.0) million and (1%) margin, compared to Adjusted EBITDA of $1.3 million and 2% margin.

 

AU generated EBITDA of $9.3 million and 18% margin, and Adjusted EBITDA of $10.0 million and 19% margin. USU generated EBITDA of $4.2 million and 17% margin, and Adjusted EBITDA of $4.9 million and 20% margin. AGI corporate incurred EBITDA of ($18.6) million and Adjusted EBITDA of ($15.9) million.

 

Operating Metrics

 

New student enrollments at AU decreased 37% year-over-year and at USU by 11% year-over-year. New student enrollments were primarily impacted by the enrollment stoppage at our Phoenix pre-licensure campuses, and the reduction in marketing spend by $1 million over the prior quarter.

 

New student enrollments for the past five quarters are shown below:

 

   New Student Quarterly Enrollments 
   Q4'21   Q1'22   Q2'22   Q3'22   Q4'22 
Aspen University   1,593    1,601    1,750    1,301    1,010 
USU   589    675    630    481    525 
Total   2,182    2,276    2,380    1,782    1,535 

 

New student enrollments, bookings and ARPU for Q4’22 versus Q4’21 are shown below:

 

   Fourth Quarter Bookings1 and Average Revenue Per Enrollment (ARPU)1 
   Q4'21 Enrollments   Q4'21 Bookings   Q4'22 Enrollments   Q4'22 Bookings 
       (in millions)       (in millions) 
Aspen University   1,593   $21.7    1,010   $12.4 
USU   589   $10.5    525   $9.3 
Total   2,182   $32.2    1,535   $21.7 
                     
ARPU        14,751         14,145 

____________________

1 “Bookings” are defined by multiplying Lifetime Value (LTV) by new student enrollments for each operating unit. “Average Revenue Per Enrollment” (ARPU) is defined by dividing total Bookings by total new student enrollments for each operating unit.

 

AGI's active degree-seeking student body at AU and USU, declined 4% year-over-year to 13,334 from 13,886. AU's total active student body decreased by 8% year-over-year to 10,225 from 11,117. On a year-over-year basis, USU's total active student body grew by 12% to 3,109 from 2,769. The chart below shows five quarters of active student body results.

 

 
 

 

Students seeking nursing degrees were 11,522, or 86% of total active students at both universities. Of the students seeking nursing degrees, 9,562 are RNs studying to earn an advanced degree, including 6,672 at Aspen University and 2,890 at USU. In contrast, the remaining 1,960 nursing students are enrolled in Aspen University’s BSN Pre-Licensure program in the Phoenix, Austin, Tampa, Nashville and Atlanta metros. The BSN Pre-Licensure program student body decreased from 2,382 to 1,960 year-over-year or 422 students as a result of the enrollment stoppage in the Phoenix metro.

 

The chart below shows the breakdown by university nursing students versus total students.

 

 

Liquidity

 

At April 30, 2022, the Company had unrestricted cash of $6.5 million and restricted cash of $6.4 million. Cash used in operations for the year ended April 30, 2022 was $11.3 million. Approximately $1.0 million of the cash used in operations is attributed to our Adjusted EBITDA loss, and the remaining use of operating cash is primarily attributed to increased working capital to support the growth in our monthly payment plans. Additionally, cash used in investing activities for the fiscal year ended April 30, 2022 was $4.2 million. To fund cash used in operations and investing activities, the Company issued $10.0 million of convertible debt and obtained a $20.0 million revolving credit facility.

 

As previously reported, the Company entered into a Consent Agreement on April 22, 2022 with the Arizona State Board of Nursing, and the Company was subsequently required to obtain an $18.3 million surety bond for the State of Arizona. The Company was required to restrict $5.0 million of cash and reserve its $20.0 million revolving credit facility as collateral for the surety bond. During fiscal Q4 2022, the Company reduced marketing spend, which ensured adequate liquidity to provide collateral for the surety bond. At this time, the Company is currently considering various growth and financing alternatives. Consequently, the Company plans to provide guidance and a financing update for the full fiscal year 2023 at our next earnings call in September.

 

 
 

 

Conference Call

 

Aspen Group, Inc. will host a conference call to discuss its fourth quarter and full year fiscal year 2022 results and business outlook on Tuesday, July 19, 2022, at 4:30 pm ET. Aspen Group, Inc. will issue a press release reporting results after the market closes on that day. The conference call can be accessed by dialing toll-free (877) 704-4453 (U.S.) or (201) 389-0920 (International), passcode 13730629.

 

Subsequent to the call, a transcript of the audio cast will be available from the Company’s website at www.aspu.com. There will also be a seven-day dial-in replay which can be accessed by dialing toll-free (844) 512-2921 (U.S.) or (412) 317-6671 (International), passcode 13730629.

 

Non-GAAP – Financial Measures

 

This press release includes both financial measures in accordance with Generally Accepted Accounting Principles, or GAAP, as well as non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as supplemental to and should not be considered as alternatives to net income (loss), operating income (loss), and cash flow from operating activities, liquidity or any other financial measures. They may not be indicative of the historical operating results of AGI, nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP.

 

Our management uses and relies on EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures. We believe that management, analysts, and shareholders benefit from referring to the following non-GAAP financial measures to evaluate and assess our core operating results from period-to-period after removing the impact of items that affect comparability. Our management recognizes that the non-GAAP financial measures have inherent limitations because of the excluded items described below.

 

We have included a reconciliation of our non-GAAP financial measures to the most comparable financial measures calculated in accordance with GAAP. We believe that providing the non-GAAP financial measures, together with the reconciliation to GAAP, helps investors make comparisons between AGI and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measure and the corresponding GAAP measure provided by each company under applicable SEC rules.

 

 
 

 

AGI defines Adjusted EBITDA as EBITDA excluding (1) bad debt expense, (2) stock-based compensation, and (3) non-recurring charges. The following table presents a reconciliation of net loss to EBITDA and Adjusted EBITDA and of net income (loss) margin to the Adjusted EBITDA margin:

 

   Three Months Ended April 30,   For the Years Ended April 30, 
   2022   2021   2022   2021 
Net loss  $(2,128,638)  $(2,319,986)  $(9,585,781)  $(10,448,973)
Interest expense, net   364,884    13,369    715,722    2,031,545 
Taxes   38,880    (12,446)   427,400    32,644 
Depreciation and amortization   890,228    874,111    3,370,407    2,426,365 
EBITDA   (834,646)   (1,444,952)   (5,072,252)   (5,958,419)
Bad debt expense   450,000    566,540    1,500,000    2,268,540 
Stock-based compensation   569,098    382,936    2,534,665    2,203,822 
Non-recurring charges - Other stock-based compensation       555,321        1,754,263 
Non-recurring charges - Severance       303,870    19,665    347,870 
Non-recurring charges - Other   339,025    275,438    (6,031)   650,875 
Adjusted EBITDA  $523,477   $639,153   $(1,023,953)  $1,266,951 

 

Net loss Margin   (11)%   (12)%   (12)%   (15)%
Adjusted EBITDA Margin   3%   3%   (1)%   2%

 

The following tables present a reconciliation of net loss to EBITDA and Adjusted EBITDA and of net income (loss) margin to the Adjusted EBITDA margin by business unit:

 

   Three Months Ended April 30, 2022 
   Consolidated   AGI Corporate   AU   USU 
Net income (loss)  $(2,128,638)  $(4,991,258)  $1,534,709   $1,327,911 
Interest expense, net   364,884    364,906        (22)
Taxes   38,880    20,600    (22,920)   41,200 
Depreciation and amortization   890,228    61,115    726,283    102,830 
EBITDA   (834,646)   (4,544,637)   2,238,072    1,471,919 
Bad debt expense   450,000        225,000    225,000 
Stock-based compensation   569,098    500,077    51,207    17,814 
Non-recurring charges - Other stock-based compensation                
Non-recurring charges - Severance                
Non-recurring charges - Other   339,025    339,025         
Adjusted EBITDA  $523,477   $(3,705,535)  $2,514,279   $1,714,733 

 

Net loss Margin   (11)%   NM    12%   20%
Adjusted EBITDA Margin   3%   NM    20%   26%

_____________________

NM – Not meaningful

 

 

 

 
 

 

 

   Three Months Ended April 30, 2021 
   Consolidated   AGI Corporate   AU   USU 
Net income (loss)  $(2,319,986)  $(4,736,579)  $1,388,800   $1,027,793 
Interest expense, net   13,369    13,486        (117)
Taxes   (12,446)   (14,250)   2,064    (260)
Depreciation and amortization   874,111    15,691    786,135    72,285 
EBITDA   (1,444,952)   (4,721,652)   2,176,999    1,099,701 
Bad debt expense   566,540        340,000    226,540 
Stock-based compensation   382,936    275,938    75,605    31,393 
Non-recurring charges - Other stock-based compensation   555,321    555,321         
Non-recurring charges - Severance   303,870    303,870         
Non-recurring charges - Other   275,438    239,438    36,000     
Adjusted EBITDA  $639,153   $(3,347,085)  $2,628,604   $1,357,634 

 

Net loss Margin   (12)%   NM    10%   18%
Adjusted EBITDA Margin   3%   NM    20%   24%

 

 

   Year Ended April 30, 2022 
   Consolidated   AGI Corporate   AU   USU 
Net income (loss)  $(9,585,781)  $(19,529,107)  $6,140,416   $3,802,910 
Interest expense, net   715,722    718,099    (1,739)   (638)
Taxes   427,400    23,963    360,947    42,490 
Depreciation and amortization   3,370,407    177,835    2,809,255    383,317 
EBITDA   (5,072,252)   (18,609,210)   9,308,879    4,228,079 
Bad debt expense   1,500,000        950,000    550,000 
Stock-based compensation   2,534,665    2,232,489    200,980    101,196 
Non-recurring charges - Other stock-based compensation                
Non-recurring charges - Severance   19,665            19,665 
Non-recurring charges - Other   (6,031)   446,660    (452,691)    
Adjusted EBITDA  $(1,023,953)  $(15,930,061)  $10,007,168   $4,898,940 

 

Net loss Margin   (12)%   NM    12%   15%
Adjusted EBITDA Margin   (1)%   NM    19%   20%

 

 
 

 

 

   Year Ended April 30, 2021 
   Consolidated   AGI Corporate   AU   USU 
Net income (loss)  $(10,448,973)  $(20,666,448)  $7,281,693   $2,935,782 
Interest expense, net   2,031,545    2,031,745        (200)
Taxes   32,644        32,644     
Depreciation and amortization   2,426,365    57,713    2,210,166    158,486 
EBITDA   (5,958,419)   (18,576,990)   9,524,503    3,094,068 
Bad debt expense   2,268,540        1,862,000    406,540 
Stock-based compensation   2,203,822    1,845,683    210,771    147,368 
Non-recurring charges - Other stock-based compensation   1,754,263    1,754,263         
Non-recurring charges - Severance   347,870    347,870         
Non-recurring charges - Other   650,875    614,875    36,000     
Adjusted EBITDA  $1,266,951   $(14,014,299)  $11,633,274   $3,647,976 

 

Net loss Margin   (15)%   NM    15%   15%
Adjusted EBITDA Margin   2%   NM    24%   18%

 

 

Definitions

 

Lifetime Value ("LTV") – is calculated as the weighted average total amount of tuition and fees paid by every new student that enrolls in the Company’s universities, after giving effect to attrition.

 

Bookings – is defined by multiplying LTV by new student enrollments for each operating unit.

 

Average Revenue per Enrollment ("ARPU") – is defined by dividing total bookings by total enrollments.

 

Adjusted EBITDA Margin – is defined as Adjusted EBITDA divided by revenue. We believe Adjusted EBITDA Margin is useful for management, analysts and investors as this measure allows for a more meaningful comparison between our performance and that of our competitors. Adjusted EBITDA Margin has certain limitations in that it does not take into account the impact to our consolidated statement of operations of certain expenses.

 

 
 

 

Forward-Looking Statements

 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including the expected leverage and ability to improve operating results, programs fueling future growth, monthly payment plan growth, trends in the nursing industry, and our estimates as to Lifetime Value, bookings and ARPU. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include the continued demand of nursing students for the new programs, student attrition, national and local economic factors including the labor market shortages, future NCLEX scores of our students, the failure to obtain approval from the National Council for State Authorization Reciprocity Agreements, competition from nursing schools in local markets, the competitive impact from the trend of major non-profit universities using online education and consolidation among our competitors. Other risks are included in our filings with the SEC including our Form 10-K for the year ended April 30, 2021, as amended by the Form 10-Q for the nine months ended January 31, 2022. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

 

About Aspen Group, Inc.

 

Aspen Group, Inc. is an education technology holding company that leverages its infrastructure and expertise to allow its two universities, Aspen University and United States University, to deliver on the vision of making college affordable again.

 

Investor Relations Contact

 

Kim Rogers
Managing Director
Hayden IR
385-831-7337 
Kim@HaydenIR.com

 

 

 

 
 

 

GAAP Financial Statements

 

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

   April 30, 
   2022   2021 
Assets          
Current assets:          
Cash and cash equivalents  $6,482,750   $12,472,082 
Restricted cash   6,433,397    1,193,997 
Accounts receivable, net of allowance of $3,460,288 and $3,289,816, respectively   24,359,241    16,724,744 
Prepaid expenses   1,358,635    1,077,831 
Other current assets   748,568    68,529 
Total current assets   39,382,591    31,537,183 
           
Property and equipment:          
   Computer equipment and hardware   1,516,475    956,463 
   Furniture and fixtures   2,193,261    1,705,101 
   Leasehold improvements   7,179,896    5,729,324 
   Instructional equipment   715,652    421,039 
   Software   10,285,096    8,488,635 
   Construction in progress   2,100    247,767 
    21,892,480    17,548,329 
Accumulated depreciation and amortization   (8,395,001)   (4,892,987)
      Property and equipment, net   13,497,479    12,655,342 
Goodwill   5,011,432    5,011,432 
Intangible assets, net   7,900,000    7,908,360 
Courseware, net   274,047    187,296 
Accounts receivable, net of allowance of $0, and $625,963, respectively       45,329 
Long-term contractual accounts receivable   11,406,525    10,249,833 
Deferred financing costs   369,902    18,056 
Operating lease right-of-use assets, net   12,645,950    12,714,863 
Deposits and other assets   578,125    479,212 
Total assets  $91,066,051   $80,806,906 

 

(Continued)

 

 
 

 

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (CONTINUED)

 

   April 30, 
   2022   2021 
Liabilities and Stockholders’ Equity          
Liabilities:          
Current liabilities:          
Accounts payable  $1,893,287   $1,466,488 
Accrued expenses   2,821,432    2,040,896 
Deferred revenue   5,889,911    6,825,014 
Due to students   4,063,811    2,747,484 
Operating lease obligations, current portion   2,036,570    2,029,821 
Other current liabilities   130,262    307,921 
Total current liabilities   16,835,273    15,417,624 
           
Long-term debt, net   14,875,735     
Operating lease obligations, less current portion   16,809,319    16,298,808 
Total liabilities   48,520,327    31,716,432 
           
Commitments and contingencies          
           
Stockholders’ equity:          
Preferred stock, $0.001 par value; 1,000,000 shares authorized,          
   0 issued and 0 outstanding at April 30, 2022 and April 30, 2021        
Common stock, $0.001 par value; 60,000,000 shares authorized,          
   25,357,764 issued and 25,202,278 outstanding at April 30, 2022          
   25,066,297 issued and 24,910,811 outstanding at April 30, 2021   25,358    25,067 
Additional paid-in capital   112,081,564    109,040,824 
Treasury stock (155,486 and 155,486 shares, respectively)   (1,817,414)   (1,817,414)
Accumulated deficit   (67,743,784)   (58,158,003)
Total stockholders’ equity   42,545,724    49,090,474 
Total liabilities and stockholders’ equity  $91,066,051   $80,806,906 

 

 

 
 

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

   Years Ended April 30, 
   2022   2021 
Revenue  $76,694,366   $67,812,520 
           
Operating expenses:          
Cost of revenues (exclusive of depreciation and amortization shown separately below)   35,259,281    29,453,733 
General and administrative   45,535,001    41,908,030 
Bad debt expense   1,500,000    2,268,540 
Depreciation and amortization   3,370,407    2,426,365 
Total operating expenses   85,664,689    76,056,668 
           
Operating loss   (8,970,323)   (8,244,148)
           
Other income (expense):          
Interest expense   (718,786)   (2,051,381)
Other income (expense), net   530,728    (120,800)
Total other expense, net   (188,058)   (2,172,181)
           
Loss before income taxes   (9,158,381)   (10,416,329)
           
Income tax expense   427,400    32,644 
           
Net loss  $(9,585,781)  $(10,448,973)
           
Net loss per share - basic and diluted  $(0.38)  $(0.44)
           
Weighted average number of common shares outstanding - basic and diluted   25,016,437    23,757,656 

 

 

 
 

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

   Years Ended April 30, 
   2022   2021 
Cash flows from operating activities:          
Net loss  $(9,585,781)  $(10,448,973)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:          
Bad debt expense   1,500,000    2,268,540 
Depreciation and amortization   3,370,407    2,426,365 
Stock-based compensation   2,534,665    3,958,085 
Amortization of warrant-based cost   59,832    36,500 
Amortization of deferred financing costs   114,751    164,362 
Amortization of debt discounts       1,550,854 
Loss on asset disposition   36,443     
Non-cash lease benefit   (230,416)   (27,796)
Tenant improvement allowances received from landlords   816,591    4,685,826 
Modification charge for warrants exercised       25,966 
Common stock issued for services       19,900 
Changes in operating assets and liabilities:          
Accounts receivable   (9,203,042)   (8,215,190)
Prepaid expenses   (280,804)   (136,160)
Other receivables       23,097 
Other current assets   (680,039)   104,561 
Accounts receivable, secured   45,329     
Deposits and other assets   (98,913)   (164,341)
Accounts payable   426,799    (39,371)
Accrued expenses   780,536    1,140,253 
Due to students   858,010    375,640 
Deferred revenue   (1,564,934)   3,112,020 
Other current liabilities   (177,659)   125,440 
Net cash (used in) provided by operating activities   (11,278,225)   985,578 
           
Cash flows from investing activities:          
Purchase of finite life intangible assets       (8,500)
Purchases of courseware and accreditation   (167,061)   (120,408)
Purchases of property and equipment   (4,160,318)   (8,848,395)
Net cash used in investing activities   (4,327,379)   (8,977,303)
           
Cash flows from financing activities:          
Proceeds from drawdown on Credit Facility   5,000,000     
Proceeds from 2022 Convertible Notes   10,000,000     
Payments of deferred financing costs   (335,362)    
Proceeds from warrants exercised       1,081,792 
Proceeds from stock options exercised   191,034    2,669,247 
Net cash provided by financing activities   14,855,672    3,751,039 

 

(Continued)

 

 
 

 

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

 

   Years Ended April 30, 
   2022   2021 
Net decrease in cash and cash equivalents  $(749,932)  $(4,240,686)
Cash, cash equivalents and restricted cash at beginning of year   13,666,079    17,906,765 
Cash, cash equivalents and restricted cash at end of year  $12,916,147   $13,666,079 
           
Supplemental disclosure cash flow information:          
Cash paid for interest  $470,895   $310,958 
Cash paid for income taxes  $27,400   $57,208 
           
Supplemental disclosure of non-cash investing and financing activities:          
Warrants issued as part of revolving credit facility  $137,500   $ 
Warrants issued as surety bond consideration  $118,000   $ 
Common stock issued for conversion of Convertible Notes  $   $10,000,000 

 

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheet that sum to the same such amounts shown in the consolidated statement of cash flows:

 

   April 30, 
   2022   2021 
Cash and cash equivalents  $6,482,750   $12,472,082 
Restricted cash   6,433,397    1,193,997 
Total cash and cash equivalents and restricted cash  $12,916,147   $13,666,079 

 

 

 


The following information was filed by Aspen Group, Inc. (ASPU) on Tuesday, July 19, 2022 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Aspen Group, Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2022 10-K Annual Report includes:

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Inside Aspen Group, Inc.'s 10-K Annual Report:

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Audit Information
Cover Page
Consolidated Balance Sheets
Consolidated Balance Sheets (Parenthetical)
Consolidated Statement Of Changes In Stockholders' Equity
Consolidated Statements Of Cash Flows
Consolidated Statements Of Cash Flows (Parenthetical)
Consolidated Statements Of Operations
Accounts Receivable
Accounts Receivable (Tables)
Accounts Receivable - Accounts Receivable Balance (Details)
Accounts Receivable - Narrative (Details)
Accrued Expenses
Accrued Expenses (Details)
Accrued Expenses (Tables)
Commitments And Contingencies
Commitments And Contingencies (Details)
Courseware And Accreditation
Courseware And Accreditation (Tables)
Courseware And Accreditation - Schedule Of Amortization Expense Of Intangible Assets (Details)
Courseware And Accreditation - Schedule Of Courseware, Net (Details)
Courseware And Accreditation - Schedule Of Estimated Future Amortization Expense (Details)
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Details)
Income Taxes
Income Taxes (Tables)
Income Taxes - Narrative (Details)
Income Taxes - Schedule Of Deferred Income Tax Assets And Liabilities (Details)
Income Taxes - Schedule Of Income Tax Expense (Benefit) (Details)
Income Taxes - Schedule Of Income Tax Reconciliation (Details)
Leases
Leases (Tables)
Leases - Future Minimum Payments Under Operating Leases (Details)
Leases - Narrative (Details)
Leases - Schedule Of Balance Sheet Information Related To Leases (Details)
Leases - Schedule Of Operating Lease Liabilities (Details)
Leases - Schedule Of Other Information Related To Leases (Details)
Leases - Schedule Of Right-Of-Use Assets (Details)
Long-Term Debt, Net
Long-Term Debt, Net (Tables)
Long-Term Debt, Net - Narrative (Details)
Long-Term Debt, Net - Schedule Of Long Term Debt (Details)
Nature Of Operations
Nature Of Operations (Details)
Property And Equipment
Property And Equipment (Tables)
Property And Equipment - Schedule Of Depreciation And Amortization Expense (Details)
Property And Equipment - Schedule Of Estimated Amortization Expense Of Software (Details)
Property And Equipment - Schedule Of Software (Details)
Property And Equipment -Schedule Of Property And Equipment (Details)
Quarterly Results (Tables)
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) (Details)
Revenue
Revenue (Tables)
Revenue - Narrative (Details)
Revenue - Schedule Of Disaggregated Revenue (Details)
Secured Note And Accounts Receivable
Secured Note And Accounts Receivable (Details)
Significant Accounting Policies
Significant Accounting Policies (Policies)
Significant Accounting Policies (Tables)
Significant Accounting Policies - Narrative (Details)
Significant Accounting Policies - Schedule Of Property And Equipment Useful Lives (Details)
Stockholders' Equity
Stockholders' Equity (Tables)
Stockholders' Equity - Preferred Stock And Common Stock (Details)
Stockholders' Equity - Restricted Stock (Details)
Stockholders' Equity - Restricted Stock Units (Details)
Stockholders' Equity - Schedule Of All Options And Exercisable Options (Details)
Stockholders' Equity - Schedule Of Outstanding And Exercisable Warrants (Details)
Stockholders' Equity - Schedule Of Restricted Stock Unit Activity (Details)
Stockholders' Equity - Schedule Of Stock Options Activity (Details)
Stockholders' Equity - Schedule Of Warrants (Details)
Stockholders' Equity - Stock Options (Details)
Stockholders' Equity - Stock-Based Compensation Expense (Details)
Stockholders' Equity - Treasury Stock (Details)
Stockholders' Equity - Warrants (Details)

Material Contracts, Statements, Certifications & more

Aspen Group, Inc. provided additional information to their SEC Filing as exhibits

Ticker: ASPU
CIK: 1487198
Form Type: 10-K Annual Report
Accession Number: 0001487198-22-000008
Submitted to the SEC: Fri Jul 29 2022 4:03:08 PM EST
Accepted by the SEC: Fri Jul 29 2022
Period: Saturday, April 30, 2022
Industry: Educational Services

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