Transition report pursuant to Rule 13a-10 or 15d-10

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 4 Months Ended 12 Months Ended
Apr. 30, 2013
Apr. 30, 2012
Dec. 31, 2012
Dec. 31, 2011
Cash flows from operating activities:        
Net loss $ (1,402,982) $ (2,213,119) $ (6,010,734) $ (2,135,573)
Income (loss) from discontinued operations, net of income taxes (111,927) 148,513 136,310 457,566
Loss from continuing operations (1,291,055) (2,361,632) (6,147,044) (2,593,139)
Adjustments to reconcile net loss to net cash used in operating activities:        
Bad debt expense 37,000 32,955 133,907 21,200
Receivable collateral valuation service       502,315   
Amortization of debt issuance costs       266,473   
Gain on disposal of property and equipment    (5,879) (5,879)   
Depreciation and amortization 159,269 121,812 397,923 264,082
Loss on settlement of accrued interest    3,339 3,339   
Issuance of convertible notes in exchange for services rendered    38,175 38,175 22,000
Stock-based compensation 154,062 81,605 347,657   
Common shares and warrants issued for services rendered       113,000   
Changes in operating assets and libilities, net of effects of acquisition:        
Accounts receivable (288,117) (30,001) (327,524) 468,424
Accounts receivable, secured - related party          7,376
Prepaid expenses 27,107 (44,683) (89,265) (97,474)
Other current assets 69,000 210 (68,790) (210)
Other assets       (18,622)   
Accounts payable 97,609 727,214 (186,701) 390,628
Accrued expenses 52,658 191,532 252,771 (123,338)
Deferred rent 10,593 (1,073) (4,291) (2,324)
Deferred revenue 121,933 114,162 200,846 (36,555)
Other current liabilities (69,000)    69,000   
Net cash used in operating activities (918,941) (1,132,264) (4,522,710) (1,679,330)
Cash flow from investing activities:        
Cash acquired as part of merger    (378) 337 3,200
Purchases of property and equipment (166,214) (200,933) (479,846) (1,060,887)
Purchases of courseware    (8,200) (25,300) (54,090)
Increase in restricted cash (181)    (264,992)   
Advances to officer for note receivable          (388,210)
Proceeds received from officer loan repayment    150,000 150,000 238,210
Net cash used in investing activities (166,395) (59,511) (619,801) (1,261,777)
Cash flows from financing activities:        
Proceeds from (repayments on) line of credit, net    (8,215) 16,785 (10,284)
Proceeds from issuance of common shares and warrants, net 1,041,540    3,025,236   
Principal payment on note payable          (30,871)
Proceeds received from issuance of convertible notes and warrants    1,059,000 1,706,000 255,000
Proceeds from related party for convertible notes       600,000 73,000
Disbursemenents for debt issuance costs    (112,020) (266,473)   
Proceeds from issuance of series A, D and E preferred stock          3,469,985
Payments for stockholder rescissions          (165,000)
Proceeds from note payable       22,000   
Disbursements to purchase treasury shares       (202,000) (761,200)
Net cash provided by financing activities 1,041,540 938,765 4,901,548 2,830,630
Cash flows from discontinued operations:        
Cash flows from operating activities 191,540 78,398 51,599 582,241
Net cash provided by discontinued operations 191,540 78,398 51,599 582,241
Net increase (decrease) in cash and cash equivalents 147,744 (174,612) (189,364) 471,764
Cash and cash equivalents at beginning of year 577,238 766,602 766,602 294,838
Cash and cash equivalents at end of year 724,982 591,990 577,238 766,602
Supplemental disclosure of cash flow information:        
Cash paid for interest 1,494 2,681 273,718 34,804
Cash paid for income taxes            
Supplemental disclosure of non-cash investing and financing activities:        
Conversion of all preferred shares into common shares    3,469,985 3,469,985   
Conversion of convertible notes payable into common shares    20,000 1,775,825   
Issuance of stock options to officers to settle accrued payroll       238,562   
Conversion of loans payable to convertible notes payable    200,000 200,000   
Issuance of common shares and warrants to settle accrued interest       70,654   
Issuance of stock options to officers to settle note payable    22,000 22,000   
Liabilities assumed in recapitalization    21,206 21,206   
Settlement of notes payable by disposal of property and equipment    15,151 15,151   
Issuance of convertible notes payable to pay for accounts payable    11,650 11,650   
Conversion of convertible notes payable into Preferred Series B shares          $ 350,000