Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Jan. 31, 2022
Leases [Abstract]  
Leases Leases
We determine if a contract contains a lease at inception. We have entered into operating leases totaling approximately 191,328 square feet of office and classroom space in Phoenix, San Diego, New York City, Denver, Austin, Tampa, Nashville, Atlanta and New Brunswick Province in Canada. These leases expire at various dates through April 2031, the majority contain annual base rent escalation clauses. Most of these leases include options to terminate for a fee or extend for additional five-year periods. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company does not have any financing leases.

As of January 31, 2022, our longer term operating leases are located in Tampa, Phoenix, Austin and Nashville and are set to expire in six to eight years. These leases make up approximately 96% of the total future minimum lease payments.
Operating lease assets are right of use assets ("ROU assets"), which represent the right to use an underlying asset for the lease term. Operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating leases are included in "Operating lease right of use assets, net", "Operating lease obligations, current portion" and "Operating lease obligations, less current portion" in the consolidated balance sheet at January 31, 2022 and April 30, 2021. These assets and lease liabilities are recognized based on the present value of remaining lease payments over the lease term. Variable lease costs such as common area maintenance, property taxes and insurance are expensed as incurred. When the lease does not provide an implicit interest rate, the Company uses an incremental borrowing rate of 12% to determine the present value of the lease payments.
Lease incentives are deducted from the ROU assets. Incentives such as tenant improvement allowances are amortized as leasehold improvements, separately, over the life of the lease term. For the three and nine months ended January 31, 2022 and 2021, the amortization expense for these tenant improvement allowances was $177,259 and $0 and $483,872 and $0, respectively.
Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for the three and nine months ended January 31, 2022 and 2021 was $1,008,704 and $717,664 and $2,861,876 and $1,779,317, respectively, which is included in general and administrative expenses in the consolidated statements of operations.
ROU assets are summarized below:
January 31, 2022 April 30, 2021
ROU assets - Operating facility leases $ 15,958,721  $ 14,308,296 
Less: accumulated amortization (2,868,251) (1,593,433)
Total ROU assets $ 13,090,470  $ 12,714,863 

Operating lease obligations, related to the ROU assets are summarized below:
January 31, 2022 April 30, 2021
Total lease liabilities $ 22,509,568  $ 19,946,229 
Reduction of lease liabilities (3,085,191) (1,617,600)
Total operating lease obligations $ 19,424,377  $ 18,328,629 
The following is a schedule by fiscal years of future minimum lease payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of January 31, 2022 (a) (by fiscal year).
Maturity of Lease Obligations Lease Payments
2022 (remaining) $ 1,139,587 
2023 4,142,637 
2024 4,018,977 
2025 3,802,960 
2026 3,908,722 
Thereafter 11,963,226 
Total future minimum lease payments 28,976,109 
    Less: imputed interest (9,551,732)
Present value of operating lease liabilities $ 19,424,377 
(a) Lease payments exclude $3.7 million of legally binding minimum lease payments for the new BSN Pre-Licensure campus location in Atlanta, Georgia for the lease signed but not yet commenced.

Balance Sheet Classification January 31, 2022 April 30, 2021
Operating lease obligations, current portion $ 2,106,981  $ 2,029,821 
Operating lease obligations, less current portion 17,317,396  16,298,808 
Total operating lease liabilities $ 19,424,377  $ 18,328,629 
Other Information January 31, 2022
Weighted average remaining lease term (in years) 6.97
Weighted average discount rate 12  %