Aspen Group Reports Record Revenue of $5.7 million in Q3 Fiscal 2018
51勛圖厙
Nursing Students Represent 73% of the Active Student Body at both Aspen University and United States University
NEW YORK, March 15, 2018 (GLOBE NEWSWIRE) -- Aspen Group, Inc. (Nasdaq:51勛圖厙), a post-secondary education company, today announced financial results for its 2018 third quarter ended January 31, 2018, highlighted by revenue of $5.7 million, and active student body growth at Aspen University (AU) of 49% year-over-year and 110% active student body growth at United States University (USU) since May, 2017 (9-month period). Both Aspen University and United States University ended the quarter with nursing students representing 73% of their active student body.
Michael Mathews, Chairman & CEO of Aspen Group, commented, Were pleased to report that already 46% of USUs total active students have selected to pay for their education through a monthly payment method. This immediate uptake, particularly from Nurse Practitioner students at USU, gives us great confidence that USU will follow in AUs footsteps with the overwhelming majority of students paying month-to-month.
Fiscal Q3 2018 Financial Highlights:*
- Revenue totaled $5,701,958, an increase of 53% as compared to the prior fiscal year;
- GAAP Gross Profit totaled $2,900,633, a 29% increase as compared to the prior fiscal year;
- Net Loss applicable to shareholders of ($2,147,945), as compared to Net Income of $7,377 in the prior fiscal year; Diluted Net Loss per share was $(0.15), as compared to $0.00 in the prior fiscal year;
- EBITDA, a non-GAAP financial measure, totaled $(1,588,565);
- Adjusted EBITDA, a non-GAAP financial measure, totaled $(597,305);
Fiscal 2018 Third Quarter Financial and Operational Highlights:*
泭 | 泭 | Aspen University | 泭 | United States University |
泭 | 泭 | Q3 FY2018 | 泭 | Q3 FY2018 |
New Student Enrollments | 泭 | 1,164 | 泭 | 103* |
Active Student Body | 泭 | 6,066 | 泭 | 446 |
-College of Nursing Students | 泭 | 4,401 | 泭 | 326 |
Monthly Payment Method Students | 泭 | 4,194 | 泭 | 204 |
For the third quarter, revenues increased 53% to $5,701,958 as compared to $3,735,626 for the same period the prior year. GAAP Gross Profit increased to $2,900,633 or 51% Gross Margin. Net loss applicable to shareholders was ($2,147,945) or Diluted Net Loss per share of $(0.15). EBITDA, a non-GAAP financial measure, was $(1,588,565) or (28%). Adjusted EBITDA, a non-GAAP financial measure, was $(597,305) or (10%).
One-time expenses related to the acquisition of United States University totaled $610,219, which represented an increase in the companys EPS loss by an additional $(0.04).
Aspen University increased its internet advertising spend rate sequentially by approximately $167,000 or 17%, primarily the result of a spending increase at the Doctoral level during the month of January. Additionally, the company launched a 9-person outside sales force in January, initially targeting the San Diego, Los Angeles, Phoenix and NY Metropolitan areas. These two sales & marketing investment initiatives are designed to drive incremental enrollment growth in the upcoming 2019 fiscal year, consequently the companys gross margin and marketing efficiency ratios are expected to moderately decline short-term as a result.
*All comparatives include USU financial results for the two month period from December 1, 2017 January 31, 2018.
Excluding the $610,219 one-time USU acquisition expenses, G&A increased sequentially by $900,750. The acquisition of United States University accounted for over three-quarters of the G&A increase, as the companys non-faculty full-time staff rose from 110 to 142 employees. The majority of the remaining increase was a one-time expense of legal fees related to the HEMG NJ bankruptcy proceeding in which the company is a creditor. On a year-over-year basis, G&A rose by 119%, from $2,133,074 to $4,677,359.
The following table presents gross profit calculated in accordance with GAAP:
泭 | 泭 | For the Quarters Ended | |||||
泭 | 泭 | January 31, | |||||
泭 | 泭 | 2018* | 泭 | 泭 | 2017 | ||
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | ||
Revenues | 泭 | $ | 5,701,958 | 泭 | 泭 | $ | 3,735,626 |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Costs of revenues (exclusive of amortization shown separately) | 泭 | 泭 | 2,665,664 | 泭 | 泭 | 泭 | 1,359,131 |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Amortization expenses excluded from cost of revenues | 泭 | 泭 | 135,661 | 泭 | 泭 | 泭 | 119,577 |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
GAAP gross profit | 泭 | $ | 2,900,633 | 泭 | 泭 | $ | 2,256,918 |
The following table presents a reconciliation of EBITDA and Adjusted EBITDA to Net loss, a GAAP financial measure:
泭 | 泭 | For the Quarters Ended | 泭 | |||||
泭 | 泭 | January 31, | 泭 | |||||
泭 | 泭 | 2018* | 泭 | 泭 | 2017 | 泭 | ||
Net income (loss) | 泭 | $ | (2,147,945 | ) | 泭 | $ | 7,377 | 泭 |
Interest expense, net of interest income | 泭 | 泭 | 211,486 | 泭 | 泭 | 泭 | 78,317 | 泭 |
Depreciation & amortization | 泭 | 泭 | 347,894 | 泭 | 泭 | 泭 | 132,727 | 泭 |
EBITDA (loss) | 泭 | 泭 | (1,588,565 | ) | 泭 | 泭 | 218,421 | 泭 |
Bad debt expense | 泭 | 泭 | 132,644 | 泭 | 泭 | 泭 | (25,680 | ) |
USU Acquisition expenses | 泭 | 泭 | 610,219 | 泭 | 泭 | 泭 | 泭 | |
Non-recurring charges | 泭 | 泭 | 85,853 | 泭 | 泭 | 泭 | 146,809 | 泭 |
Stock-based compensation | 泭 | 泭 | 162,544 | 泭 | 泭 | 泭 | 96,498 | 泭 |
Adjusted EBITDA (Loss) | 泭 | $ | (597,305 | ) | 泭 | $ | 436,048 | 泭 |
Fiscal Year 2018 Fourth Quarter Business Update:
The company expects to have approximately 70 enrollment advisors employed by early-April, approximately one month ahead of its original fiscal year-end target date. Consequently, the company intends to increase its internet marketing monthly spend rate to over $600,000 beginning with the month of April.
Revenues for fiscal year 2018 fourth quarter are expected to increase by at least $1 million sequentially, or over $6.7 million.
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 companys 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, operating income, and cash flow from operating activities, liquidity or any other financial measures. They may not be indicative of the historical operating results of Aspen Group 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 Adjusted EBITDA and EBITDA, each of which are non-GAAP financial measures. We believe that both management and shareholders benefit from referring to the following non-GAAP financial measures in planning, forecasting and analyzing future periods. Our management uses these non-GAAP financial measures in evaluating its financial and operational decision making and as a means to evaluate period-to-period comparison.泭 Our management recognizes that the non-GAAP financial measures have inherent limitations because of the excluded items described above.
Aspen Group defines Adjusted EBITDA as earnings (or loss) from continuing operations before the items in the table above. Aspen Group excludes these expenses because they are non-cash or non-recurring in nature.
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 Aspen Group 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.
Conference Call:
Aspen Group, Inc. will host a conference call to discuss its fiscal year 2018 third quarter (ending January 31, 2018) financial results and business outlook on Thursday, March 15, 2018, at 4:30 p.m. (ET).泭 The conference call can be accessed by dialing toll-free泭(844) 452-6823泭(U.S.) or泭(731) 256-5216泭(international), passcode 6565836. Subsequent to the call, a transcript of the audiocast will be available from the Companys website at ir.aspen.edu. There will also be a 7 day dial-in replay which can be accessed by dialing toll-free (855) 859-2056 or (404) 537-3406 (international), passcode 6565836.
About Aspen Group, Inc.:
Aspen Group, Inc. is a publicly held, for-profit post-secondary education company headquartered in New York, NY.泭 It owns two accredited universities, Aspen University and United States University. Aspen Groups vision is to make college affordable again in America.
Aspen Universitys mission is to offer any motivated college-worthy student the opportunity to receive a high quality, responsibly priced distance-learning education for the purpose of achieving sustainable economic and social benefits for themselves and their families. Aspen University is dedicated to providing the highest quality education experiences taught by top-tier faculty - 54% of Aspen Universitys faculty hold doctoral degrees. To learn more about Aspen University, visit www.aspen.edu.
United States University began its institutional history in 1997 as InterAmerican College. In 2010, the school was renamed to United States University and recently moved its campus into the heart of San Diego. United States University is regionally accredited by the Accrediting Commission for Senior Colleges and Universities of the Western Association of Schools and Colleges, offering bachelor and master level degree programs in nursing, education, health science, and business & management. To learn more about United States University, visit www.usuniversity.edu.
Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including USU students electing monthly payment plans as have AU students, the expected short-term impact of internet and outside sales expenses and future marketing spend rate and fourth quarter anticipated revenues. 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 unexpected difficulties integrating United States University, a change in the effectiveness of our marketing and changes in the economy. Further information on our risk factors is contained in our filings with the SEC, including our Form 10-K for the year ended April 30, 2017. 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.
Company Contact:
Aspen Group, Inc.
Michael Mathews, CEO
914-906-9159
ASPEN GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | ||||||||
泭 | ||||||||
泭 | 泭 | January 31, | 泭 | 泭 | April 30, | 泭 | ||
泭 | 泭 | 2018 | 泭 | 泭 | 2017 | 泭 | ||
泭 | 泭 | (Unaudited) | 泭 | 泭 | 泭 | 泭 | ||
Assets | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | ||
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | ||
Current assets: | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | ||
Cash and cash equivalents | 泭 | $ | 3,803,080 | 泭 | 泭 | $ | 2,756,217 | 泭 |
Restricted cash | 泭 | 泭 | 190,506 | 泭 | 泭 | 泭 | 泭 | |
Accounts receivable, net of allowance of $544,492 and $328,864, respectively | 泭 | 泭 | 8,592,958 | 泭 | 泭 | 泭 | 4,434,862 | 泭 |
Prepaid expenses | 泭 | 泭 | 288,640 | 泭 | 泭 | 泭 | 133,531 | 泭 |
Promissory note receivable | 泭 | 泭 | 泭 | 泭 | 泭 | 900,000 | 泭 | |
Other receivables | 泭 | 泭 | 233,862 | 泭 | 泭 | 泭 | 81,464 | 泭 |
Accrued interest receivable | 泭 | 泭 | 泭 | 泭 | 泭 | 8,000 | 泭 | |
Total current assets | 泭 | 泭 | 13,109,046 | 泭 | 泭 | 泭 | 8,314,074 | 泭 |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Property and equipment: | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Call center equipment | 泭 | 泭 | 96,305 | 泭 | 泭 | 泭 | 53,748 | 泭 |
Computer and office equipment | 泭 | 泭 | 130,137 | 泭 | 泭 | 泭 | 103,649 | 泭 |
Furniture and fixtures | 泭 | 泭 | 712,209 | 泭 | 泭 | 泭 | 255,984 | 泭 |
Software | 泭 | 泭 | 2,590,297 | 泭 | 泭 | 泭 | 2,131,344 | 泭 |
泭 | 泭 | 泭 | 3,528,948 | 泭 | 泭 | 泭 | 2,544,725 | 泭 |
Less accumulated depreciation and amortization | 泭 | 泭 | (1,161,030 | ) | 泭 | 泭 | (1,090,010 | ) |
Total property and equipment, net | 泭 | 泭 | 2,367,918 | 泭 | 泭 | 泭 | 1,454,715 | 泭 |
Goodwill | 泭 | 泭 | 5,011,432 | 泭 | 泭 | 泭 | 泭 | |
Intangible assets, net | 泭 | 泭 | 9,916,667 | 泭 | 泭 | 泭 | 泭 | |
Courseware, net | 泭 | 泭 | 137,557 | 泭 | 泭 | 泭 | 145,477 | 泭 |
Accounts receivable, secured - related party, net of allowance of $625,963, and $625,963, respectively | 泭 | 泭 | 45,329 | 泭 | 泭 | 泭 | 45,329 | 泭 |
Long term contractual receivable | 泭 | 泭 | 935,878 | 泭 | 泭 | 泭 | 657,542 | 泭 |
Other assets | 泭 | 泭 | 585,206 | 泭 | 泭 | 泭 | 56,417 | 泭 |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Total assets | 泭 | $ | 32,109,033 | 泭 | 泭 | $ | 10,673,554 | 泭 |
ASPEN GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (CONTINUED) | ||||||||
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | ||
泭 | 泭 | January 31, | 泭 | 泭 | April 30, | 泭 | ||
泭 | 泭 | 2018 | 泭 | 泭 | 2017 | 泭 | ||
泭 | 泭 | (Unaudited) | 泭 | 泭 | 泭 | 泭 | ||
Liabilities and Stockholders Equity | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Current liabilities: | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Accounts payable | 泭 | $ | 1,273,990 | 泭 | 泭 | $ | 756,701 | 泭 |
Accrued expenses | 泭 | 泭 | 596,633 | 泭 | 泭 | 泭 | 262,911 | 泭 |
Deferred revenue | 泭 | 泭 | 4,156,550 | 泭 | 泭 | 泭 | 1,354,989 | 泭 |
Refunds due students | 泭 | 泭 | 730,722 | 泭 | 泭 | 泭 | 310,576 | 泭 |
Deferred rent, current portion | 泭 | 泭 | 7,429 | 泭 | 泭 | 泭 | 11,200 | 泭 |
Convertible notes payable- related party, current portion | 泭 | 泭 | 1,000,000 | 泭 | 泭 | 泭 | 泭 | |
Convertible notes payable, current portion | 泭 | 泭 | 50,000 | 泭 | 泭 | 泭 | 50,000 | 泭 |
Other current liabilities | 泭 | 泭 | 186,134 | 泭 | 泭 | 泭 | 泭 | |
Total current liabilities | 泭 | 泭 | 8,001,458 | 泭 | 泭 | 泭 | 2,746,377 | 泭 |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Convertible note payable - related party | 泭 | 泭 | 1,000,000 | 泭 | 泭 | 泭 | 泭 | |
Senior secured term loan, net of discount | 泭 | 泭 | 6,769,932 | 泭 | 泭 | 泭 | 泭 | |
Warrant Liability | 泭 | 泭 | 泭 | 泭 | 泭 | 52,500 | 泭 | |
Deferred rent | 泭 | 泭 | 60,295 | 泭 | 泭 | 泭 | 34,437 | 泭 |
Total liabilities | 泭 | 泭 | 15,831,685 | 泭 | 泭 | 泭 | 2,833,314 | 泭 |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Commitments and contingencies | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | ||
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Stockholders equity: | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Common stock, $0.001 par value; 250,000,000 shares authorized, | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
15,072,332 issued and 15,055,665 outstanding at January 31, 2018 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
13,504,012 issued and 13,487,345 outstanding at April 30, 2017 | 泭 | 泭 | 15,072 | 泭 | 泭 | 泭 | 13,504 | 泭 |
Additional paid-in capital | 泭 | 泭 | 45,439,538 | 泭 | 泭 | 泭 | 33,607,423 | 泭 |
Treasury stock (16,667 shares) | 泭 | 泭 | (70,000 | ) | 泭 | 泭 | (70,000 | ) |
Accumulated deficit | 泭 | 泭 | (29,107,262 | ) | 泭 | 泭 | (25,710,687 | ) |
Total stockholders equity | 泭 | 泭 | 16,277,348 | 泭 | 泭 | 泭 | 7,840,240 | 泭 |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Total liabilities and stockholders equity | 泭 | $ | 32,109,033 | 泭 | 泭 | $ | 10,673,554 | 泭 |
ASPEN GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||||
泭 | ||||||||||||||||
泭 | 泭 | For the | 泭 | 泭 | For the | 泭 | ||||||||||
泭 | 泭 | Three Months Ended | 泭 | 泭 | Nine Months Ended | 泭 | ||||||||||
泭 | 泭 | January 31, | 泭 | 泭 | January 31, | 泭 | ||||||||||
泭 | 泭 | 2018 | 泭 | 泭 | 2017 | 泭 | 泭 | 2018 | 泭 | 泭 | 2017 | 泭 | ||||
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | ||||
Revenues | 泭 | $ | 5,701,958 | 泭 | 泭 | $ | 3,735,626 | 泭 | 泭 | $ | 14,796,483 | 泭 | 泭 | $ | 9,957,467 | 泭 |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Operating expenses | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Cost of revenues (exclusive of depreciation and amortization shown separately below) | 泭 | 泭 | 2,665,664 | 泭 | 泭 | 泭 | 1,359,131 | 泭 | 泭 | 泭 | 6,282,814 | 泭 | 泭 | 泭 | 3,490,046 | 泭 |
General and administrative | 泭 | 泭 | 4,677,359 | 泭 | 泭 | 泭 | 2,133,074 | 泭 | 泭 | 泭 | 10,975,085 | 泭 | 泭 | 泭 | 6,228,554 | 泭 |
Program review settlement expense | 泭 | 泭 | 泭 | 泭 | 泭 | 25,000 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 25,000 | 泭 | ||
Depreciation and amortization | 泭 | 泭 | 347,894 | 泭 | 泭 | 泭 | 132,727 | 泭 | 泭 | 泭 | 631,969 | 泭 | 泭 | 泭 | 422,782 | 泭 |
Total operating expenses | 泭 | 泭 | 7,690,917 | 泭 | 泭 | 泭 | 3,649,932 | 泭 | 泭 | 泭 | 17,889,868 | 泭 | 泭 | 泭 | 10,166,382 | 泭 |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Operating (loss) income | 泭 | 泭 | (1,988,959 | ) | 泭 | 泭 | 85,694 | 泭 | 泭 | 泭 | (3,093,385 | ) | 泭 | 泭 | (208,915 | ) |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Other income (expense): | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Other income | 泭 | 泭 | 46,179 | 泭 | 泭 | 泭 | 1,684 | 泭 | 泭 | 泭 | 88,067 | 泭 | 泭 | 泭 | 3,047 | 泭 |
Gain on extinguishment of warrant liability | 泭 | 泭 | 52,500 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 52,500 | 泭 | 泭 | 泭 | 泭 | ||
Interest expense | 泭 | 泭 | (257,665 | ) | 泭 | 泭 | (80,001 | ) | 泭 | 泭 | (443,757 | ) | 泭 | 泭 | (175,662 | ) |
Total other expense, net | 泭 | 泭 | (158,986 | ) | 泭 | 泭 | (78,317 | ) | 泭 | 泭 | (303,190 | ) | 泭 | 泭 | (172,615 | ) |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
(Loss) income before income taxes | 泭 | 泭 | (2,147,945 | ) | 泭 | 泭 | 7,377 | 泭 | 泭 | 泭 | (3,396,575 | ) | 泭 | 泭 | (381,530 | ) |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Income tax expense (benefit) | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | ||||
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Net (loss) income | 泭 | $ | (2,147,945 | ) | 泭 | $ | 7,377 | 泭 | 泭 | $ | (3,396,575 | ) | 泭 | $ | (381,530 | ) |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Net (loss) income per share allocable to common stockholders - basic | 泭 | $ | (0.15 | ) | 泭 | $ | 0.00 | 泭 | 泭 | $ | (0.25 | ) | 泭 | $ | (0.03 | ) |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Net (loss) income per share allocable to common stockholders - diluted | 泭 | $ | (0.15 | ) | 泭 | $ | 0.00 | 泭 | 泭 | $ | (0.25 | ) | 泭 | $ | (0.03 | ) |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Weighted average number of common shares outstanding: basic | 泭 | 泭 | 14,491,634 | 泭 | 泭 | 泭 | 11,467,345 | 泭 | 泭 | 泭 | 13,862,992 | 泭 | 泭 | 泭 | 11,419,270 | 泭 |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Weighted average number of common shares outstanding: diluted | 泭 | 泭 | 14,491,634 | 泭 | 泭 | 泭 | 13,040,970 | 泭 | 泭 | 泭 | 13,862,992 | 泭 | 泭 | 泭 | 11,419,270 | 泭 |
ASPEN GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY FOR THE NINE MONTHS ENDED JANUARY 31, 2018 (Unaudited) | ||||||||||||||||||||||||
泭 | ||||||||||||||||||||||||
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | Additional | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | Total | 泭 | ||||||
泭 | 泭 | Common Stock | 泭 | 泭 | Paid-In | 泭 | 泭 | Treasury | 泭 | 泭 | Accumulated | 泭 | 泭 | Stockholders' | 泭 | |||||||||
泭 | 泭 | Shares | 泭 | 泭 | Amount | 泭 | 泭 | Capital | 泭 | 泭 | Stock | 泭 | 泭 | Deficit | 泭 | 泭 | Equity | 泭 | ||||||
Balance at April 30, 2017 | 泭 | 泭 | 13,504,012 | 泭 | 泭 | $ | 13,504 | 泭 | 泭 | $ | 33,607,423 | 泭 | 泭 | $ | (70,000 | ) | 泭 | $ | (25,710,687 | ) | 泭 | $ | 7,840,240 | 泭 |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Fees associated with equity raise | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | (14,033 | ) | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | (14,033 | ) | ||||
Restricted stock issued for services | 泭 | 泭 | 10,000 | 泭 | 泭 | 泭 | 10 | 泭 | 泭 | 泭 | 88,690 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 88,700 | 泭 | ||
Stock-based compensation | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 466,468 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 466,468 | 泭 | ||||
Common stock issued for acquisition | 泭 | 泭 | 1,203,209 | 泭 | 泭 | 泭 | 1,203 | 泭 | 泭 | 泭 | 10,214,041 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 10,215,244 | 泭 | ||
Common stock issued for cashless warrant exercises | 泭 | 泭 | 162,072 | 泭 | 泭 | 泭 | 162 | 泭 | 泭 | 泭 | (162 | ) | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | |||
Common stock issued for warrants exercised for cash | 泭 | 泭 | 79,442 | 泭 | 泭 | 泭 | 79 | 泭 | 泭 | 泭 | 143,410 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 143,489 | 泭 | ||
Common stock issued for stock options exercised | 泭 | 泭 | 113,597 | 泭 | 泭 | 泭 | 114 | 泭 | 泭 | 泭 | 455,273 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 455,387 | 泭 | ||
Warrants issued with senior secured term loan | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 478,428 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 478,428 | 泭 | ||||
Net loss, for the Nine months ended January 31, 2018 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | (3,396,575 | ) | 泭 | 泭 | (3,396,575 | ) | ||||
Balance at January 31, 2018 | 泭 | 泭 | 15,072,332 | 泭 | 泭 | $ | 15,072 | 泭 | 泭 | $ | 45,439,538 | 泭 | 泭 | $ | (70,000 | ) | 泭 | $ | (29,107,262 | ) | 泭 | $ | 16,277,348 | 泭 |
ASPEN GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||
泭 | ||||||||
泭 | 泭 | For the | 泭 | |||||
泭 | 泭 | Nine months ended | 泭 | |||||
泭 | 泭 | January 31, | 泭 | |||||
泭 | 泭 | 2018 | 泭 | 泭 | 2017 | 泭 | ||
Cash flows from operating activities: | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | ||
Net loss | 泭 | $ | (3,396,575 | ) | 泭 | $ | (381,530 | ) |
Adjustments to reconcile net loss to net cash used in operating activities: | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Bad debt expense (recovery) | 泭 | 泭 | 298,144 | 泭 | 泭 | 泭 | (25,680 | ) |
Gain on extinguishment of warrant liability | 泭 | 泭 | (52,500 | ) | 泭 | 泭 | 泭 | |
Depreciation and amortization | 泭 | 泭 | 631,969 | 泭 | 泭 | 泭 | 422,782 | 泭 |
Loss on asset disposal | 泭 | 泭 | 27,590 | 泭 | 泭 | 泭 | 泭 | |
Stock-based compensation | 泭 | 泭 | 466,468 | 泭 | 泭 | 泭 | 253,833 | 泭 |
Amortization of debt discounts | 泭 | 泭 | 99,726 | 泭 | 泭 | 泭 | 15,625 | 泭 |
Amortization of prepaid shares for services | 泭 | 泭 | 37,039 | 泭 | 泭 | 泭 | 52,500 | 泭 |
Warrant buyback expense | 泭 | 泭 | 泭 | 泭 | 泭 | 206,000 | 泭 | |
Changes in operating assets and liabilities: | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Accounts receivable | 泭 | 泭 | (4,534,118 | ) | 泭 | 泭 | (2,331,140 | ) |
Prepaid expenses | 泭 | 泭 | (59,451 | ) | 泭 | 泭 | 28,715 | 泭 |
Accrued interest receivable | 泭 | 泭 | (45,400 | ) | 泭 | 泭 | 泭 | |
Other receivables | 泭 | 泭 | (152,398 | ) | 泭 | 泭 | 泭 | |
Other assets | 泭 | 泭 | (528,789 | ) | 泭 | 泭 | (25,241 | ) |
Accounts payable | 泭 | 泭 | 366,044 | 泭 | 泭 | 泭 | 875,110 | 泭 |
Accrued expenses | 泭 | 泭 | 218,476 | 泭 | 泭 | 泭 | 105,111 | 泭 |
Deferred rent | 泭 | 泭 | 22,087 | 泭 | 泭 | 泭 | 17,318 | 泭 |
Refunds due students | 泭 | 泭 | 420,146 | 泭 | 泭 | 泭 | 124,912 | 泭 |
Deferred revenue | 泭 | 泭 | 2,340,461 | 泭 | 泭 | 泭 | 562,643 | 泭 |
Other liabilities | 泭 | 泭 | 186,134 | 泭 | 泭 | 泭 | 泭 | |
Net cash used in operating activities | 泭 | 泭 | (3,654,947 | ) | 泭 | 泭 | (99,042 | ) |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Cash flows from investing activities: | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Cash paid in asset acquisition | 泭 | 泭 | (2,589,719 | ) | 泭 | 泭 | 泭 | |
Proceeds from promissory note interest receivable | 泭 | 泭 | 53,400 | 泭 | 泭 | 泭 | 泭 | |
Increase in restricted cash | 泭 | 泭 | (190,506 | ) | 泭 | 泭 | 泭 | |
Purchases of courseware | 泭 | 泭 | (33,369 | ) | 泭 | 泭 | (6,550 | ) |
Purchases of property and equipment | 泭 | 泭 | (1,171,473 | ) | 泭 | 泭 | (565,306 | ) |
Proceeds from promissory note receivable | 泭 | 泭 | 900,000 | 泭 | 泭 | 泭 | 泭 | |
Net cash used in investing activities | 泭 | 泭 | (3,031,667 | ) | 泭 | 泭 | (571,856 | ) |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Cash flows from financing activities: | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Warrant Buyback | 泭 | 泭 | 泭 | 泭 | 泭 | (400,000 | ) | |
Borrowing of bank line of credit | 泭 | 泭 | 泭 | 泭 | 泭 | 247,000 | 泭 | |
Payments for bank line of credit | 泭 | 泭 | 泭 | 泭 | 泭 | (248,783 | ) | |
Borrowing of third party line of credit | 泭 | 泭 | 泭 | 泭 | 泭 | 1,250,000 | 泭 | |
Third party line of credit financing costs | 泭 | 泭 | 泭 | 泭 | 泭 | (60,000 | ) | |
Proceeds of warrant and stock options exercised | 泭 | 泭 | 598,876 | 泭 | 泭 | 泭 | 泭 | |
Offering costs paid on debt financing | 泭 | 泭 | (351,366 | ) | 泭 | 泭 | 泭 | |
Disbursements for equity offering costs | 泭 | 泭 | (14,033 | ) | 泭 | 泭 | (4,017 | ) |
Proceeds from senior secured term loan | 泭 | 泭 | 7,500,000 | 泭 | 泭 | 泭 | 泭 | |
Net cash provided by financing activities | 泭 | 泭 | 7,733,477 | 泭 | 泭 | 泭 | 784,200 | 泭 |
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Net increase in cash | 泭 | 泭 | 1,046,863 | 泭 | 泭 | 泭 | 113,302 | 泭 |
Cash at beginning of period | 泭 | 泭 | 2,756,217 | 泭 | 泭 | 泭 | 783,796 | 泭 |
Cash at end of period | 泭 | $ | 3,803,080 | 泭 | 泭 | $ | 897,098 | 泭 |
ASPEN GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (Unaudited) | ||||||||
泭 | 泭 | 泭 | 泭 | |||||
泭 | 泭 | For the | 泭 | |||||
泭 | 泭 | Nine months ended | 泭 | |||||
泭 | 泭 | January 31, | 泭 | |||||
泭 | 泭 | 2018 | 泭 | 泭 | 2017 | 泭 | ||
Supplemental disclosure of cash flow information: | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Cash paid for interest | 泭 | $ | 316,781 | 泭 | 泭 | $ | 145,105 | 泭 |
Cash paid for income taxes | 泭 | $ | 泭 | 泭 | $ | 泭 | ||
泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Supplemental disclosure of non-cash investing and financing activities | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 | 泭 |
Warrants issued as part of senior secured loan | 泭 | $ | 478,428 | 泭 | 泭 | $ | 泭 | |
Assets acquired net of liabilities assumed for non-cash consideration | 泭 | $ | 12,215,244 | 泭 | 泭 | $ | 泭 | |
Common stock issued for services | 泭 | $ | 泭 | 泭 | $ | 62,002 | 泭 | |
Warrant derivative liability | 泭 | $ | 泭 | 泭 | $ | 52,500 | 泭 |
泭
Released March 15, 2018