Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Jul. 31, 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 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 July 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 97% of the total future minimum lease payments.
Operating lease 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 July 31, 2022 and April 30, 2022. 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 months ended July 31, 2022 and 2021, the amortization expense for these leasehold improvements was $173,698 and $150,387, respectively.
Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for the three months ended July 31, 2022 and 2021 was $1,010,512 and $936,737, respectively, which is included in general and administrative expenses in the consolidated statements of operations.
ROU assets are summarized below:
July 31, 2022 April 30, 2022
ROU assets - Operating facility leases $ 16,135,178  $ 15,958,721 
Less: accumulated amortization (3,773,471) (3,312,771)
Total ROU assets $ 12,361,707  $ 12,645,950 
Operating lease obligations, related to the ROU assets are summarized below:
July 31, 2022 April 30, 2022
Total lease liabilities $ 22,693,812  $ 22,517,355 
Reduction of lease liabilities (4,290,574) (3,671,466)
Total operating lease obligations $ 18,403,238  $ 18,845,889 
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 July 31, 2022 (a) (by fiscal year).
Maturity of Lease Obligations Lease Payments
2023 (remaining) $ 3,150,097 
2024 4,021,638 
2025 3,805,716 
2026 3,911,083 
2027 3,991,386 
Thereafter 7,971,840 
Total future minimum lease payments 26,851,760 
    Less: imputed interest (8,448,522)
Present value of operating lease liabilities $ 18,403,238 
(a) Lease payments exclude $3.7 million of legally binding minimum lease payments for the new BSN Pre-Licensure campus location in Atlanta, Georgia and excludes $1.5 million of legally binding lease payments for the new USU campus location in San Diego, California. Both leases were signed, but not yet commenced.

Balance Sheet Classification July 31, 2022 April 30, 2022
Operating lease obligations, current portion $ 2,123,914  $ 2,036,570 
Operating lease obligations, less current portion 16,279,324  16,809,319 
Total operating lease obligations $ 18,403,238  $ 18,845,889 
Other Information July 31, 2022 April 30, 2022
Weighted average remaining lease term (in years) 6.58 6.81
Weighted average discount rate 12  % 12  %