EXHIBIT 99.1

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FOR IMMEDIATE RELEASE:  September 9, 2019



Aspen Group Reports Record Revenue of $10.4 Million in the First Quarter Fiscal Year 2020, an Increase of 43% Year-over-Year


Gross Margin Increases 1,000 Basis Points to 56%; Cash Used in Operations Declines by 50% Year-over-Year



NEW YORK, NY –September 9, 2019 - Aspen Group, Inc. (Nasdaq: ASPU)( “the Company or AGI”), an education technology holding company, today announced financial results for its 2020 fiscal first quarter ended July 31, 2019.


First Quarter Fiscal Year 2020 Summary


 

 

Three months ended

 

 

 

 

(in millions)

 

July 31, 2019

 

 

July 31, 2018

 

 

% Change

 

Revenue

 

$

10.4

 

 

$

7.2

 

 

 

43

%

Gross profit

 

$

5.8

 

 

$

3.3

 

 

 

74

%

Gross profit margin (%)

 

 

56

%

 

 

46

%

 

 

1,000 basis points

 

Operating Income (Loss)

 

$

(1.6

)

 

$

(2.9

)

 

 

43

%

Net Income (Loss)

 

$

(2.1

)

 

$

(2.8

)

 

 

27

%

Cash Used in Operations

 

$

(1.7

)

 

$

(3.4

)

 

 

50

%

EBITDA (Loss)

 

$

(1.0

)

 

$

(2.3

)

 

 

58

%

Adjusted EBITDA (Loss)

 

$

(0.1

)

 

$

(1.8

)

 

 

95

%


First Quarter Performance Highlights


·

New student enrollments increased to 1,929 or 46% year-over-year

o

Aspen University (AU) new student enrollments increased to 1,415 or 29% year-over-year

o

United States University (USU) new student enrollments increased to 514 or 133% year-over-year

·

Weighted average cost of enrollment declined 18%

·

Bookings increased 83% to $26.9 million

·

Average revenue per enrollment (ARPU) increased 24% to $13,919


Michael Mathews, Chairman and CEO of AGI, commented, “Fiscal 2020 is off to a strong start with record revenue and enrollments in our seasonally weakest summer quarter. By focusing our marketing spend on delivering enrollment growth in the degree programs with the highest lifetime value (LTV), we expanded bookings in the quarter by 83% and increased our average revenue per enrollment, or ARPU, by 24%. For the remainder of fiscal year 2020 we expect to continue to focus on these highest LTV degree programs in order to accelerate our long-term growth. We are on track to deliver annual revenue growth over 34% in fiscal year 2020, based on anticipated year-over-year enrollment growth of approximately 25% and bookings forecasted to grow 35% to approximately $89 million. We now expect the company to achieve positive Adjusted EBITDA in the second fiscal quarter and for the foreseeable future.”




1



 


Fiscal 2020 First Quarter Financial and Operational Results:


AGI delivered 1,929 new student enrollments for the fiscal quarter ended July 31, 2019, a 46% increase year-over-year. Aspen University accounted for 1,415 new student enrollments (including 198 Doctoral enrollments and 276 Pre-licensure Bachelor of Science in Nursing (“BSN”) Arizona campus enrollments). USU accounted for 514 new student enrollments (primarily Family Nurse Practitioner (“FNP”) enrollments), a 133% increase year-over-year. Enrollments for Aspen University’s Pre-Licensure BSN program increased 48% sequentially as the university began accepting enrollments for prerequisite students taking online courses in anticipation of entering the HonorHealth final two-year core campus program that is expected to launch on September 17, 2019.


In the charts below, we have provided a comparison of enrollments and bookings* from Q1 fiscal year 2019 to Q1 fiscal year 2020.  The company’s enrollments rose 46% year-over-year, while bookings increased 83% year-over-year. This translates to a 24% average revenue per user (ARPU)* increase year-over-year, from $11,185 to $13,919, driven by the company’s focused marketing spending on the highest LTV degree programs during the quarter.


 

 

Lifetime Value (LTV)

 

 

Q1 FY'2019

 

 

Q1 FY'2019

 

 

Q1 FY'2020

 

 

Q1 FY'2020

 

 

 

Per Enrollment

 

 

Enrollments

 

 

Bookings

 

 

Enrollments

 

 

Bookings

 

AU Online (Nursing + Other) Unit

 

$

7,350

 

 

 

882

 

 

$

6,482,700

 

 

 

941

 

 

$

6,916,350

 

AU (Doctoral) Unit

 

$

12,600

 

 

 

118

 

 

$

1,486,800

 

 

 

198

 

 

$

2,494,800

 

AU (Pre-Licensure BSN) Unit

 

$

30,000

 

 

 

93

 

 

$

2,790,000

 

 

 

276

 

 

$

8,280,000

 

USU (FNP + Other) Unit

 

$

17,820

 

 

 

221

 

 

$

3,938,220

 

 

 

514

 

 

$

9,159,480

 

Total

 

 

 

 

 

 

1,314

 

 

$

14,697,720

 

 

 

1,929

 

 

$

26,850,630

 

Average Revenue Per User (ARPU)

 

 

 

 

 

 

 

 

 

$

11,185

 

 

 

 

 

 

$

13,919

 


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*“Bookings” are defined by multiplying LTV by new student enrollments for each operating unit. “Average Revenue Per

User or (ARPU)” is defined by dividing total bookings by total enrollments.


AGI’s overall active student body (including both Aspen University and USU) grew 34% year-over-year from 7,274 to 9,752 students as of July 31, 2019.


Of the 9,752 total active students at both universities, 82% or 8,002 students are degree-seeking Nursing students.


Aspen University’s total active degree-seeking student body grew 25% year-over-year from 6,590 to 8,261 students. Aspen’s School of Nursing grew 36% year-over-year, from 4,863 to 6,595 active students, which includes 670 active students in the BSN Pre-Licensure program in Phoenix, AZ. Aspen University students paying tuition and fees through a monthly payment method grew by 17% year-over-year, from 4,769 to 5,580 students. Those 5,580 students paying through a monthly payment method represent 68% of Aspen University’s total active student body.


USU’s total active student body grew sequentially from 1,148 to 1,491 students or a sequential increase of 30%. On a year-over-year basis, USU’s total active student body grew from 684 to 1,491 students or 118%. USU’s MSN-FNP active student body grew sequentially from 970 to 1,294 students or a sequential increase of 33%. USU’s MSN-FNP program now represents 87% of USU’s active student body. USU students paying tuition and fees through a monthly payment method grew from 758 to 1,053 students sequentially. The 1,053 students paying through a monthly payment method represent 71% of USU’s total active student body.




2



 


Following the end of the fiscal first quarter of 2020, the Company announced a significant enrollment milestone of exceeding 10,000 total active students at Aspen University and United States University combined.


Revenues increased to $10,357,982 for the fiscal quarter ended July 31, 2019, an increase of 43% as compared to the prior fiscal year first quarter. USU accounted for approximately 26% and Aspen University’s Pre-Licensure BSN program accounted for approximately 8% of overall Company revenues.


Gross profit increased to $5,765,328 for the fiscal quarter ended July 31, 2019 or 56% gross margin. Aspen University gross profit represented 59% of Aspen University revenues for the fiscal quarter, while USU gross profit equaled 55% of USU revenues during the fiscal quarter. Aspen University instructional costs and services represented 18% of Aspen University revenues for the fiscal quarter, while USU instructional costs and services equaled 28% of USU revenues during the fiscal quarter. Aspen University marketing and promotional costs represented 20% of Aspen University revenues for the fiscal quarter, while USU marketing and promotional costs equaled 17% of USU revenues during the fiscal quarter.


Net loss applicable to shareholders was ($2,075,282) or diluted net loss per share of ($0.11). Aspen University generated $0.9 million of net income for the fiscal quarter, while USU experienced a net loss of ($0.4) million in the fiscal quarter. AGI corporate incurred $2.6 million of expenses for the first quarter.


EBITDA, a non-GAAP financial measure, was a loss of ($958,364) or (9%) as a percentage of revenue. Adjusted EBITDA, a non-GAAP financial measure, was a loss of ($86,099) or (1%) as a percentage of revenue. Aspen University generated $1.6 million of Adjusted EBITDA for the fiscal quarter, while USU experienced an Adjusted EBITDA loss of ($10,006) in the fiscal quarter. AGI corporate contributed $1.6 million of expenses toward the ($86,099) Adjusted EBITDA result for the fiscal quarter.


The Company used cash of $1.7 million in operations in the fiscal quarter, as compared to using $3.4 million in the prior fiscal year first quarter, an improvement of 50% year-over-year.


Conference Call:


AGI will host a conference call to discuss its fiscal year 2020 first quarter financial results and business outlook on Monday, September 9th, 2019, at 4:30 p.m. (ET). The conference call can be accessed by dialing toll-free (844) 452-6823 (U.S.) or (731) 256-5216 (international), passcode 2587764. Subsequent to the call, a transcript of the audiocast will be available from the Company’s 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 2587764.


Non-GAAP – Financial Measures:


This press release includes both financial measures in accordance with the 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 Adjusted EBITDA and EBITDA, each of which are non-GAAP financial measures. We believe that both management and shareholders benefit from referring to these 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 comparisons.  Our management recognizes that the non-GAAP financial measures have inherent limitations because of the excluded items described below.


AGI defines Adjusted EBITDA as earnings (or loss) from continuing operations before the items in the table below including non-recurring charges of $132,949 in fiscal quarter ended July 31, 2019 and $188,665 in fiscal quarter ended July 31, 2018. Adjusted EBITDA is an important measure of our operating performance because it allows management, investors and analysts to evaluate and assess our core operating results from period-to-period after removing the impact of items of a non-operational nature that affect comparability.




3



 


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.


The following table presents a reconciliation of Adjusted EBITDA to net loss allocable to common shareholders, a GAAP financial measure:


 

 

 

 

 

Quarter Ended

July 31,

 

 

 

 

 

 

2019

 

 

2018

 

Net loss

 

 

 

 

 

$

(2,075,282

)

 

$

(2,837,276

)

Interest expense, net of interest income

 

 

 

 

 

 

420,067

 

 

 

40,353

 

Taxes

 

 

 

 

 

 

90,277

 

 

 

 

Depreciation & amortization

 

 

 

 

 

 

606,574

 

 

 

498,105

 

EBITDA (loss)

 

 

 

 

 

 

(958,364

)

 

 

(2,298,818

)

Bad debt expense

 

 

 

 

 

 

240,899

 

 

 

121,805

 

Non-recurring charges

 

 

 

 

 

 

132,949

 

 

 

188,665

 

Stock-based compensation

 

 

 

 

 

 

498,417

 

 

 

209,976

 

Adjusted EBITDA (Loss)

 

 

 

 

 

$

(86,099

)

 

$

(1,778,372

)


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.


Forward-Looking Statements:


This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including statements regarding our continued focus on the highest LTV units, sustained revenue growth, enrollment growth, achieving and maintaining positive Adjusted EBITDA for the foreseeable future, and forecasted bookings. 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 high demand for nurses, the continued effectiveness of our marketing efforts, unanticipated delays in opening new campuses, failure to continue to obtain enrollments at low acquisition costs and keeping instructional costs down, potential student attrition and national and local economic factors. Other risks are included in our filings with the SEC including our Form 10-K for the year ended April 30, 2019. 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.


Investor Relations Contact:


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







4



 


ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS


 

 

July 31, 2019

 

 

April 30, 2019

 

 

 

 

(Unaudited)

 

 

 

 

 

Assets

  

  

                    

  

  

 

                    

  

Current assets:

 

 

 

 

 

 

 

 

Cash

 

$

7,243,580

 

 

$

9,519,352

 

Restricted cash

 

 

452,021

 

 

 

448,400

 

Accounts receivable, net of allowance of $1,484,559 and $1,247,031, respectively

 

 

10,786,265

 

 

 

10,656,470

 

Prepaid expenses

 

 

546,767

 

 

 

410,745

 

Other receivables

 

 

1,435

 

 

 

2,145

 

Total current assets

 

 

19,030,068

 

 

 

21,037,112

 

 

 

 

 

 

 

 

 

 

Property and equipment:

 

 

 

 

 

 

 

 

Call center equipment

 

 

245,715

 

 

 

193,774

 

Computer and office equipment

 

 

330,267

 

 

 

327,621

 

Furniture and fixtures

 

 

1,430,349

 

 

 

1,381,271

 

Software

 

 

4,765,597

 

 

 

4,314,198

 

 

 

 

6,771,928

 

 

 

6,216,864

 

Less accumulated depreciation and amortization

 

 

(2,083,277

)

 

 

(1,825,524

)

Total property and equipment, net

 

 

4,688,651

 

 

 

4,391,340

 

Goodwill

 

 

5,011,432

 

 

 

5,011,432

 

Intangible assets, net

 

 

8,266,667

 

 

 

8,541,667

 

Courseware, net

 

 

145,063

 

 

 

161,930

 

Accounts receivable, secured - net of allowance of $625,963 and $625,963, respectively

 

 

45,329

 

 

 

45,329

 

Long term contractual accounts receivable

 

 

4,249,969

 

 

 

3,085,243

 

Debt issue cost, net

 

 

271,162

 

 

 

300,824

 

Right of use lease asset

 

 

7,996,585

 

 

 

 

Deposits and other assets

 

 

562,594

 

 

 

629,626

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

50,267,520

 

 

$

43,204,503

 



(Continued)





5



 


ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (CONTINUED)


 

 

July 31, 2019

 

 

April 30, 2019

 

 

 

 

(Unaudited)

 

 

 

 

 

Liabilities and Stockholders’ Equity

  

  

                    

  

  

 

                    

  

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,588,331

 

 

$

1,699,221

 

Accrued expenses

 

 

577,755

 

 

 

651,418

 

Deferred revenue

 

 

2,681,037

 

 

 

2,456,865

 

Refunds due students

 

 

1,591,632

 

 

 

1,174,501

 

Deferred rent, current portion

 

 

53,140

 

 

 

47,436

 

Convertible notes payable, current portion

 

 

50,000

 

 

 

50,000

 

Right of use lease liability, current portion

 

 

1,100,411

 

 

 

 

Other current liabilities

 

 

279,411

 

 

 

270,786

 

Total current liabilities

 

 

7,921,717

 

 

 

6,350,227

 

 

 

 

 

 

 

 

 

 

Senior secured loan payable, net of discount of $287,626 and $353,328 respectively

 

 

9,712,374

 

 

 

9,646,672

 

Right of use lease liability

 

 

7,095,695

 

 

 

 

Deferred rent

 

 

704,689

 

 

 

746,176

 

Total liabilities

 

 

25,434,475

 

 

 

16,743,075

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies – see Note 10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value; 1,000,000 shares authorized,

 

 

 

 

 

 

 

 

0 issued and outstanding at July 31, 2019 and April 30, 2019

 

 

 

 

 

 

Common stock, $0.001 par value; 40,000,000 shares authorized

 

 

 

 

 

 

 

 

18,913,527 issued and 18,896,443 outstanding at July 31, 2019

 

 

 

 

 

 

 

 

18,665,551 issued and 18,648,884 outstanding at April 30, 2019

 

 

18,914

 

 

 

18,666

 

Additional paid-in capital

 

 

69,146,123

 

 

 

68,562,727

 

Treasury stock (16,667 shares)

 

 

(70,000

)

 

 

(70,000

)

Accumulated deficit

 

 

(44,261,992

)

 

 

(42,049,965

)

Total stockholders’ equity

 

 

24,833,045

 

 

 

26,461,428

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

50,267,520

 

 

$

43,204,503

 








6



 


ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

July 31,

 

 

 

 

 

 

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

$

10,357,982

 

 

$

7,221,305

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues (exclusive of depreciation and amortization shown separately below)

 

 

 

 

 

 

 

 

 

 

4,353,058

 

 

 

3,752,392

 

General and administrative

 

 

 

 

 

 

 

 

 

 

7,037,150

 

 

 

5,824,132

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

606,574

 

 

 

498,105

 

Total operating expenses

 

 

 

 

 

 

 

 

 

 

11,996,782

 

 

 

10,074,629

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

 

 

 

 

 

 

 

 

 

(1,638,800

)

 

 

(2,853,324

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

 

 

 

 

 

 

 

 

22,802

 

 

 

56,401

 

Interest expense

 

 

 

 

 

 

 

 

 

 

(423,689

)

 

 

(40,353

)

Total other income/(expense), net

 

 

 

 

 

 

 

 

 

 

(400,887

)

 

 

16,048

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

 

 

 

 

 

 

 

 

(2,039,687

)

 

 

(2,837,276

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

35,595

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

$

(2,075,282

)

 

$

(2,837,276

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share allocable to common stockholders - basic and diluted

 

 

 

 

 

 

 

 

 

$

(0.11

)

 

$

(0.15

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common stock outstanding - basic and diluted

 

 

 

 

 

 

 

 

 

 

18,733,317

 

 

 

18,317,830

 








7



 


ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

 (Unaudited)


 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Total

 

 

 

Common Stock

 

 

Paid-In

 

 

Treasury

 

 

Accumulated

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Stock

 

 

Deficit

 

 

Equity

 

Balance at April 30, 2019

 

 

18,665,551

 

 

$

18,666

 

 

$

68,562,727

 

 

$

(70,000

)

 

$

(42,049,965

)

 

$

26,461,428

 

 

  

  

                    

  

  

 

                    

  

  

 

                    

  

  

 

                    

  

  

 

                    

  

  

 

                    

 

Stock-based compensation

 

 

 

 

 

 

 

 

498,417

 

 

 

 

 

 

 

 

 

498,417

 

Common stock issued for cashless stock options exercised

 

 

101,894

 

 

 

102

 

 

 

(102

)

 

 

 

 

 

 

 

 

 

Common stock issued for stock options exercised for cash

 

 

21,876

 

 

 

22

 

 

 

45,168

 

 

 

 

 

 

 

 

 

45,190

 

Common stock issued for cashless warrant exercise

 

 

19,403

 

 

 

19

 

 

 

(19

)

 

 

 

 

 

 

 

 

 

Amortization of warrant based cost

 

 

 

 

 

 

 

 

9,440

 

 

 

 

 

 

 

 

 

9,440

 

Amortization of restricted stock issued for service

 

 

 

 

 

 

 

 

30,597

 

 

 

 

 

 

 

 

 

30,597

 

Restricted Stock Issued for Services, subject to vesting

 

 

104,803

 

 

 

105

 

 

 

(105

)

 

 

 

 

 

 

 

 

 

Cumulative effect of Adoption of ASC 842

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(136,745

)

 

 

(136,745

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,075,282

)

 

 

(2,075,282

)

Balance at July 31, 2019

 

 

18,913,527

 

 

$

18,914

 

 

$

69,146,123

 

 

$

(70,000

)

 

$

(44,261,992

)

 

$

24,833,045

 


 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Total

 

 

 

Common Stock

 

 

Paid-In

 

 

Treasury

 

 

Accumulated

 

 

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Stock

 

 

Deficit

 

 

Equity

 

Balance at April 30, 2018

 

 

18,333,521

 

 

$

18,334

 

 

$

66,557,005

 

 

$

(70,000

)

 

$

(32,771,748

)

 

$

33,733,591

 

 

  

  

                    

  

  

 

                    

  

  

 

                    

  

  

 

                    

  

  

 

                    

  

  

 

                    

 

Stock-based compensation

 

 

 

 

 

 

 

 

209,976

 

 

 

 

 

 

 

 

 

209,976

 

Common stock issued for cashless stock options exercised

 

 

5,230

 

 

 

5

 

 

 

(5

)

 

 

 

 

 

 

 

 

 

Common stock issued for stock options exercised for cash

 

 

2,689

 

 

 

2

 

 

 

7,815

 

 

 

 

 

 

 

 

 

7,817

 

Purchase of treasury stock, net of broker fees

 

 

 

 

 

 

 

 

 

 

 

(7,370,000

)

 

 

 

 

 

(7,370,000

)

Re-sale of treasury stock, net of broker fees

 

 

 

 

 

 

 

 

 

 

 

7,370,000

 

 

 

 

 

 

7,370,000

 

Fees associated with equity raise

 

 

 

 

 

 

 

 

(29,832

)

 

 

 

 

 

 

 

 

(29,832

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,837,276

)

 

 

(2,837,276

)

Balance at July 31, 2018

 

 

18,341,440

 

 

$

18,341

 

 

$

66,744,959

 

 

$

(70,000

)

 

$

(35,609,024

)

 

$

31,084,276

 








8



 


ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


 

 

Three months ended

 

 

 

July 31,

 

 

 

2019

 

 

2018

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(2,075,282

)

 

$

(2,837,276

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Bad debt expense

 

 

240,899

 

 

 

121,805

 

Depreciation and amortization

 

 

606,574

 

 

 

498,105

 

Stock-based compensation

 

 

498,417

 

 

 

209,976

 

Warrants issued for services

 

 

9,440

 

 

 

 

Loss on asset disposition

 

 

20,240

 

 

 

 

Amortization of debt discounts

 

 

65,702

 

 

 

 

Amortization of debt issue costs

 

 

29,662

 

 

 

 

Amortization of prepaid shares for services

 

 

 

 

 

8,285

 

Non-cash payments to investor relations firm

 

 

30,597

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(1,535,420

)

 

 

(1,592,941

)

Prepaid expenses

 

 

(136,022

)

 

 

(229,168

)

Other receivables

 

 

710

 

 

 

173,475

 

Other assets

 

 

67,032

 

 

 

 

Accounts payable

 

 

(110,890

)

 

 

(728,230

)

Accrued expenses

 

 

(73,663

)

 

 

10,401

 

Deferred rent

 

 

(35,783

)

 

 

217,433

 

Refunds due students

 

 

417,131

 

 

 

302,609

 

Deferred revenue

 

 

224,172

 

 

 

430,015

 

Right of use assets, net

 

 

62,776

 

 

 

 

Other liabilities

 

 

8,625

 

 

 

27,301

 

Net cash used in operating activities

 

 

(1,685,083

)

 

 

(3,388,210

)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of courseware and accreditation

 

 

(2,275

)

 

 

(42,917

)

Purchases of property and equipment

 

 

(629,983

)

 

 

(735,757

)

Net cash used in investing activities

 

 

(632,258

)

 

 

(778,674

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Disbursements for equity offering costs

 

 

 

 

 

(29,832

)

Proceeds of stock options exercised and warrants exercised

 

 

45,190

 

 

 

7,817

 

Purchase of treasury stock, net of broker fees

 

 

 

 

 

(7,370,000

)

Re-sale of treasury stock, net of broker fees

 

 

 

 

 

7,370,000

 

Net cash provided by (used in) financing activities

 

 

45,190

 

 

 

(22,015

)

 

 

 

 

 

 

 

 

 

Net (decrease) in cash and cash equivalents

 

 

(2,272,151

)

 

 

(4,188,899

)

Cash, restricted cash, and cash equivalents at beginning of period

 

 

9,967,752

 

 

 

14,803,065

 

Cash and cash equivalents at end of period

 

$

7,695,601

 

 

$

10,614,166

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure cash flow information

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

324,861

 

 

$

 

Cash paid for income taxes

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing and financing activities

 

 

 

 

 

 

 

 

Common stock issued for services

 

$

178,447

 

 

$

 




9



 


ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(Unaudited)


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


 

 

Three months ended

 

 

 

July 31,

 

 

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

Cash

 

$

7,243,580

 

 

$

10,423,660

 

Restricted cash

 

 

452,021

 

 

 

190,506

 

Total cash and restricted cash

 

$

7,695,601

 

 

$

10,614,166

 






10