Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Apr. 30, 2015
Apr. 30, 2014
Cash flows from operating activities:    
Net loss $ (4,268,288) $ (5,350,348)
Less income from discontinued operations   84,663
Loss from continuing operations $ (4,268,288) (5,435,011)
Adjustments to reconcile net loss to net cash used in operating activities:    
Bad debt expense $ 156,165 154,732
Receivable collateral valuation reserve   123,647
Amortization of debt issuance costs $ 75,458 131,657
Amortization of debt discount 166,241 294,640
Depreciation and amortization 528,496 $ 474,752
Extinguishment of debentures 416,587  
Stock-based compensation 456,871 $ 608,429
Warrant modification expense 333,323 156,952
Common shares and warrants issued for services rendered 70,258 285,084
Changes in operating assets and liabilities:    
Accounts receivable (564,614) $ (439,834)
Accounts receivable, secured - related party 101,502  
Prepaid expenses (75,710) $ 50,456
Other assets (1,498)  
Accounts payable (275,674) $ 141,378
Accrued expenses 29,198 15,405
Deferred rent (13,699) (10,418)
Refunds due students (7,382) 34,238
Deferred revenue 131,300 (251,071)
Net cash used in operating activities (2,741,466) (3,664,964)
Cash flows from investing activities:    
Purchases of property and equipment (379,492) (386,027)
Purchases of courseware (143,753) (6,500)
Increase in restricted cash (254,187) (603,125)
Net cash used in investing activities (777,432) (995,652)
Cash flows from financing activities:    
Proceeds from issuance of common shares and warrants, net 5,547,826 750,000
Principal payments on notes payable $ (25,000) (25,000)
Proceeds received from issuance of convertible notes and warrants   $ 1,639,298
Repayment of note $ (2,240,000)  
Proceeds from loan from related party   $ 1,000,000
Disbursements for debt issuance costs   (48,240)
Proceeds from warrant exercise $ 2,268,670 804,049
Payments for line of credit (186) $ (5,824)
Disbursements for equity offering costs (125,579)  
Net cash provided by financing activities 5,425,731 $ 4,114,283
Cash flows from discontinued operations:    
Cash flows from discontinued operations 5,250 68,731
Net cash provided by discontinued operations 5,250 68,731
Net increase (decrease) in cash and cash equivalents 1,912,083 (477,602)
Cash and cash equivalents at beginning of year 247,380 724,982
Cash and cash equivalents at end of year 2,159,463 247,380
Supplemental disclosure of cash flow information:    
Cash paid for interest $ 240,264 $ 173,989
Cash paid for income taxes    
Supplemental disclosure of non-cash investing and financing activities:    
Issuance of common stock from conversion of notes $ 100,000  
Issuance of common shares for prepaid services   $ 216,000
Warrant value recorded as debt issue cost   94,316
Warrant value recorded as debt discount   $ 389,565