Annual report pursuant to Section 13 and 15(d)

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
Apr. 30, 2014
Dec. 31, 2012
Cash flows from operating activities:        
Net loss $ (1,402,982) $ (2,213,119) $ (5,350,348) $ (6,010,734)
Less income (loss) from discontinued operations (111,927) 148,513 84,663 136,310
Loss from continuing operations (1,291,055) (2,361,632) (5,435,011) (6,147,044)
Adjustments to reconcile net loss to net cash used in operating activities:        
Bad debt expense 37,000 32,955 154,732 133,907
Receivable collateral valuation reserve       123,647 502,315
Amortization of debt issuance costs       131,657 266,473
Amortization of debt discount       294,640   
Gain on disposal of property and equipment    (5,879)    (5,879)
Depreciation and amortization 159,269 121,812 474,752 397,923
Loss on settlement of accrued interest    3,339    3,339
Issuance of convertible notes in exchange for services rendered    38,175    38,175
Stock-based compensation 154,062 81,605 608,429 347,657
Warrant modification expense       156,952   
Common shares and warrants issued for services rendered       285,084 113,000
Changes in operating assets and liabilities, net of effects of acquisition:        
Accounts receivable (288,117) (30,001) (439,834) (327,524)
Prepaid expenses 27,107 (44,683) 50,456 (89,265)
Other current assets 69,000 210    (68,790)
Other assets          (18,622)
Accounts payable 97,609 727,214 141,378 (186,701)
Accrued expenses 52,658 191,532 15,405 252,771
Deferred rent 10,593 (1,073) (10,418) (4,291)
Title IV funds in transit       34,238   
Deferred revenue 121,933 114,162 (251,071) 200,846
Other current liabilities (69,000)       69,000
Net cash used in operating activities (918,941) (1,132,264) (3,664,964) (4,522,710)
Cash flows from investing activities:        
Cash acquired as part of merger    (378)    337
Purchases of property and equipment (166,214) (200,933) (386,027) (479,846)
Purchases of courseware    (8,200) (6,500) (25,300)
Increase in restricted cash (181)    (603,125) (264,992)
Proceeds received from officer loan repayments    150,000    150,000
Net cash used in investing activities (166,395) (59,511) (995,652) (619,801)
Cash flows from financing activities:        
Proceeds from (repayments on) line of credit, net    (8,215)    16,785
Proceeds from issuance of common shares and warrants, net 1,041,540    750,000 3,025,236
Principal payments on notes payable       (25,000)   
Proceeds received from issuance of convertible notes and warrants    1,059,000 1,639,298 1,706,000
Proceeds from related party for convertible notes          600,000
Proceeds from related party for note       1,000,000   
Disbursements for debt issuance costs    (112,020) (48,240) (266,473)
Proceeds from warrant exercise       804,049   
Payments for line of credit       (5,824)   
Proceeds from note payable          22,000
Disbursements to purchase treasury shares          (202,000)
Net cash provided by financing activities 1,041,540 938,765 4,114,283 4,901,548
Cash flows from discontinued operations:        
Cash flows from operating activities 191,540 78,398 68,731 51,599
Net cash provided by discontinued operations 191,540 78,398 68,731 51,599
Net increase (decrease) in cash and cash equivalents 147,744 (174,612) (477,602) (189,364)
Cash and cash equivalents at beginning of period 577,238 766,602 724,982 766,602
Cash and cash equivalents at end of period 724,982 591,990 247,380 577,238
Supplemental disclosure of cash flow information:        
Cash paid for interest 1,494 2,681    273,781
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 accounts payable    11,650    11,650
Issuance of common shares for prepaid services       216,000   
Warrant value recorded as debt issue cost       94,316   
Warrant value recorded as debt discount       $ 389,565