|9 Months Ended|
Jan. 31, 2020
|Subsequent Events [Abstract]|
|Subsequent Event||Subsequent Events
In March 2020, USU received a letter from the DOE stating that it is releasing substantially all of its existing letter of credit of $261,057 in connection with USU's most recent Compliance Audit. USU is still required to maintain a letter of credit of approximately $10,000 as restricted cash.
On March 1, 2020, the statute of limitations expired to enforce payment on a $50,000 convertible note which matured on March 1, 2014. Therefore, the Company is not liable to pay this loan and will treat this as a debt extinguishment in the fourth quarter of fiscal 2020.
On February 4, 2020, the Company approved the following grants of RSUs to the executive officers of the Company under the Company’s 2018 Equity Incentive Plan: 100,000 RSUs to the Chief Executive Officer, 75,000 RSUs to each of the Chief Financial Officer, Chief Operating Officer, and Chief Academic Officer, and 50,000 to the Chief Nursing Officer.
Each RSU represents the right to receive one share of the Company’s common stock. The RSUs vest subject to the Company's common stock achieving certain price targets within four years of the grant date as described below. The price targets are: (i) if the closing price of the Company’s common stock is at least $9 for 20 consecutive trading days, 10% of the RSUs will vest immediately; (ii) if the closing price of the Company’s common stock is at least $10 for 20 consecutive trading days, 25% of the RSUs will vest immediately; and (iii) if the closing price of the Company’s common stock is at least $12 for 20 consecutive trading days, all of the unvested RSUs will vest immediately. On the grant date, the closing price of the Company’s common stock on The Nasdaq Global Market was $9.49 per share representing an estimated fair value of $3,559,000. As the RSUs vest, the Company will deliver the underlying shares.In February 2020, the Company signed a definitive lease agreement for a new Aspen University BSN Pre-Licensure campus location in Tampa, Florida. Prior to commencing its Tampa campus operations, Aspen is required to obtain approval by the Florida Board of Nursing and the Florida Commission on Independent Education. Initial required regulatory filings have been submitted.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef