Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Apr. 30, 2022
Leases [Abstract]  
Leases Leases
The Company determines if a contract contains a lease at inception. The Company has 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 the New Brunswick Province in Canada. These leases expire at various dates through April 2031, and 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. As permitted by ASC 842, leases with an initial term of twelve months or less are not recorded on the accompanying consolidated balance sheet. The Company does not have any financing leases.
As of April 30, 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 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 sheets at April 30, 2022 and 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 years ended April 30, 2022 and 2021, the amortization expense for these leasehold improvements was $661,131 and $306,217, respectively.

Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for the years ended April 30, 2022 and 2021, was $3,868,333 and $2,775,000, respectively, which is included in general and administrative expenses in the consolidated statements of operations.

ROU assets are summarized below:
April 30,
2022 2021
ROU assets - Operating facility leases $ 15,958,721  $ 14,308,296 
Less: accumulated amortization (3,312,771) (1,593,433)
Total ROU assets $ 12,645,950  $ 12,714,863 

Operating lease obligations, related to the ROU assets are summarized below:
April 30,
2022 2021
Total lease liabilities $ 22,517,355  $ 19,946,229 
Reduction of lease liabilities (3,671,466) (1,617,600)
Total operating lease obligations $ 18,845,889  $ 18,328,629 

The following is a schedule by future minimum lease payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of April 30, 2022 (a) (by fiscal year).
Maturity of Lease Obligations Lease Payments
2023 $ 4,323,543 
2024 4,021,638 
2025 3,805,716 
2026 3,911,083 
2027 3,991,386 
Thereafter 7,971,839 
Total future minimum lease payments 28,025,205 
Less: imputed interest (9,179,316)
Present value of operating lease liabilities $ 18,845,889 
(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 its lease signed but not yet commenced.
April 30,
Balance Sheet Classification 2022 2021
Operating lease obligations, current portion $ 2,036,570  $ 2,029,821 
Operating lease obligations, less current portion 16,809,319  16,298,808 
Total operating lease obligations $ 18,845,889  $ 18,328,629 

April 30,
Other Information 2022 2021
Weighted average remaining lease term (in years) 6.81 7.46
Weighted average discount rate 12  % 12  %