Aspen Group Reports Record Revenue of $67.8 million or 38% Growth in Fiscal Year 2021

  • BSN Pre-Licensure and USU fourth quarter 2021 revenue accounted for 51% of consolidated revenue
  • Introduces Full-year Guidance for Fiscal 2022

NEW YORK, July 13, 2021 (GLOBE NEWSWIRE) -- July 13, 2021 - Aspen Group, Inc. (Nasdaq: ASPU) (“AGI”), an education technology holding company, today announced financial results for its fourth quarter and fiscal year ended April 30, 2021, and introduced guidance for revenue, Net income (loss), GAAP earnings per share, EBITDA and Adjusted EBITDA for fiscal year 2022.

Fourth Quarter and Full Year 2021 Summary Results Table

 Three Months Ended Twelve Months Ended
$ in millions, except per share data (rounding differences may occur)April 30,
2021
April 30,
2020
April 30,
2021
April 30,
2020
Revenue$19.1$14.1$67.8$49.1
GAAP Gross Profit1$9.9$8.4$36.9$28.9
GAAP Gross Margin (%)152%59%54%59%
Operating Income (Loss)($2.3)($0.3)($8.2)($4.0)
Net Income (Loss)($2.3)($0.7)($10.4)($5.7)
Earnings (Loss) per Share($0.09)($0.03)($0.44)($0.29)
EBITDA Profit/(Loss) 2($1.4)$0.2($6.0)($1.6)
Adjusted EBITDA Profit/(Loss) 2$0.6$1.4$1.3$2.7

1 GAAP gross profit calculation includes marketing and promotional costs, instructional costs & services, and amortization expense.
2 Non-GAAP financial measure. See reconciliations of GAAP to non-GAAP financial measures under “Non-GAAPFinancial Measures” starting on page 5.

“Aspen Group finished the fiscal year with solid momentum in our three business units, which produced 35% year-over-year revenue growth in the fourth quarter and 38% for the full year. Each of our business units delivered impressive growth, with USU’s MSN-FNP and Aspen University’s BSN Pre-Licensure programs being the most significant contributors,” said Michael Mathews, Chairman and CEO of AGI. “We are introducing full year guidance and a plan to manage expenses while continuing to deliver industry-leading growth rates. This gives us a clear line of sight to reducing losses and cash burn, with the goal of achieving profitability in Q4 of fiscal year 2022.”

Fiscal Q4 2021 Financial and Operational Results (versus Fiscal Q4 2020)

Revenues increased 35% to $19.1 million for Fiscal Q4 2021, compared to $14.1 million in Fiscal Q4 2020. USU accounted for 30%, and AU’s BSN Pre-Licensure program accounted for 21% of the Company’s consolidated revenues.

Gross profit increased by 19% to $9.9 million or 52% gross margin for Fiscal Q4 2021 versus $8.4 million or 59% gross margin in Fiscal Q4 2020. The year-over-year gross margin decrease was an expected result following the launch of three new BSN Pre-Licensure campuses and gross margin is expected to improve throughout Fiscal Year 2022. AU gross margin represented 52% of AU revenues for Fiscal Q4 2021, and USU gross margin represented 57% of USU revenues for Fiscal Q4 2021.

AU instructional costs and services represented 24% of AU revenues for Fiscal Q4 2021, while USU instructional costs and services represented 25% of USU revenues for Fiscal Q4 2021. AU marketing and promotional costs represented 21% of AU revenues for Fiscal Q4 2021, while USU marketing and promotional costs represented 18% of USU revenues for Fiscal Q4 2021.

Net loss was ($2.3 million) or net loss per basic share of ($0.09) for Fiscal Q4 2021 versus ($0.7 million) or ($0.03) for the prior-year period. For Fiscal Q4 2021, AU generated $1.4 million of net income, and USU generated $1.0 million of net income. AGI corporate incurred a net loss of ($4.7 million) for Fiscal Q4 2021.

EBITDA, a non-GAAP financial measure, was ($1.4 million) or (8%) margin in Fiscal Q4 2021, as compared to EBITDA of $0.2 million or 2% margin in Fiscal Q4 2020. Adjusted EBITDA, a non-GAAP financial measure, was $0.6 million or 3% margin in Fiscal Q4 2021, as compared to $1.4 million or 10% margin in the prior-year period.

AU generated EBITDA of $2.2 million or 16% margin and Adjusted EBITDA of $2.6 million or 20% margin for Fiscal Q4 2021. In Fiscal Q4 2021, AU’s BSN Pre-Licensure program accounted for $0.9 million of the $2.2 million EBITDA generated at AU, operating at an EBITDA margin of 24%, which is the highest EBITDA margin unit of the Company. USU generated EBITDA of $1.1 million or 19% margin and $1.4 million of Adjusted EBITDA or 24% margin in the Fiscal Q4 2021. AGI corporate incurred EBITDA of ($4.7 million) and Adjusted EBITDA of ($3.3 million) for Fiscal Q4 2021, which includes $1.1 million of one-time expense items.

Fiscal Year 2021 Full Year Financial and Operational Results (versus Fiscal Year 2020)

Revenues increased 38% to $67.8 million for Fiscal Year 2021, compared to $49.1 million in the prior year. For Fiscal Year 2021, USU accounted for 29%, and AU’s BSN Pre-Licensure program accounted for 21% of the Company’s consolidated revenues.

Gross profit increased by 28% to $36.9 million or 54% gross margin for Fiscal Year 2021 versus $28.9 million or 59% gross margin in the prior year. For Fiscal Year 2021, AU gross margin represented 55% of AU revenues, and USU gross margin represented 58% of USU revenues.

For Fiscal Year 2021, AU instructional costs and services represented 22% of AU revenues, while USU instructional costs and services represented 25% of USU revenues. AU marketing and promotional costs represented 20% of AU revenues for Fiscal Year 2021, while USU marketing and promotional costs represented 18% of USU revenues.

Net loss was ($10.4 million) or net loss per basic share of ($0.44) for Fiscal Year 2021 versus ($5.7 million) or ($0.29) in the prior year period. AU generated $7.3 million of net income, and USU generated $2.9 million of net income in Fiscal Year 2021. AGI corporate incurred a net loss of ($20.7 million) for Fiscal Year 2021.

EBITDA, a non-GAAP financial measure, was ($6.0 million) or (9%) margin in Fiscal Year 2021 as compared to EBITDA of ($1.6 million) or (3%) margin in the prior year period. Adjusted EBITDA, a non-GAAP financial measure, was $1.3 million or 2% margin in Fiscal Year 2021 compared to Adjusted EBITDA of $2.7 million or 6% margin in the prior year.

AU generated EBITDA of $9.5 million or 20% margin and Adjusted EBITDA of $11.6 million or 24% margin for Fiscal Year 2021. AU’s BSN Pre-Licensure program accounted for $4.1 million of the $9.5 million EBITDA generated at AU, operating at an EBITDA margin of 29%, the highest margin unit of the Company. USU generated EBITDA of $3.1 million or 16% margin and $3.6 million of Adjusted EBITDA or 18% margin in the Fiscal Year 2021. AGI corporate incurred EBITDA of ($18.6 million), and Adjusted EBITDA of ($14.0 million), which reflects $2.7 million of one-time expense items.

Liquidity

At April 30, 2021, the Company reported unrestricted cash and cash equivalents of $8.5 million and total liquidity of $13.5 million, including our undrawn $5 million credit facility, which was a decrease of unrestricted cash and cash equivalents of $5.8 million for the full fiscal year 2021 or a sequential decrease from Fiscal Q3 2021 of $1.5 million.

Outlook for Fiscal Year 2022

Mr. Mathews continued, “We see several growth drivers for fiscal 2022. We expect that the move to double cohorts for our high-LTV BSN Pre-Licensure program at our main Phoenix campus will increase revenue from the Phoenix metro to approximately $18 million, which offsets the lower planned enrollments in the Phoenix metro due to the pipeline of first-year (pre-professional nursing) PPN online students nearing its target capacity. Another growth driver will be USU’s MSN-FNP program, our second highest LTV program, where the tremendous growth we have seen to date is expected to continue. The third growth driver will be continued enrollment growth and class starts at our new BSN Pre-licensure campuses in Austin, Tampa, and Nashville.”

“The Company is introducing today a business plan that we are calling ‘Aspen 2.0.’ Aspen 2.0 is designed to deliver maximum efficiency as defined by revenue earned from each marketing dollar spent. Growth spending will be focused on our highest efficiency businesses to accelerate the growth in these units, with decreased spending in our lowest efficiency unit (an area where high growth is not essential), specifically, we plan to reduce marketing spending in our traditional AU Nursing + Unit. In addition, we plan to reduce spending in our Phoenix metro BSN Pre-Licensure, which is nearing capacity. Those marketing dollars will be redirected towards high LTV programs, specifically our three new BSN Pre-Licensure metros, AU’s online doctoral programs, and USU’s MSN-FNP program.

We’re forecasting that this ‘maximum efficiency’ spending plan will result in roughly a 1% total enrollment increase, translating to an increase of bookings year-over-year of 6%, from $143.4 million to $151.3 million, which continues to set the Company up for consistent, sustained growth in the coming years. Moreover, this spending plan is forecasted to decrease our advertising spending to approximately 17% of revenue in fiscal 2022, down from 19% in fiscal 2021.

Lastly, we plan to delay our next BSN Pre-Licensure campus launch to the Spring of 2022, or approximately at the end of fiscal year 2022. Our next metro launch will be in a Tier 1 market with a population larger than the Phoenix metro. The combination of reducing advertising spend growth and pushing out the next BSN Pre-Licensure campus launch gives us a clear line of sight to increasing leverage, lowering cash burn and reducing losses in fiscal 2022. We believe this will permit us to achieve our near-term goal of GAAP profitability and turning cash flow positive by the fourth quarter of fiscal 2022.”

The table below shows the Company’s guidance for fiscal year 2022:

(Dollar amounts in millions except EPS)Guidance RangeGrowth Rate (%)1YoY Increase1
Revenue$85.0$88.027.0%+$18.7
Net Income (Loss)2($4.5)($3.0)64%+$6.7
GAAP Earnings (Loss) per Share2($0.18)($0.12)66%+$0.29
EBITDA3($1.6)$0.490%+$5.4
Adjusted EBITDA3$2.0$4.0137%+$1.7

1 Year-over-year growth rate or increase is calculated from the mid-point of the guidance range.
2 The Company anticipates positive GAAP net income and earnings per share in the fourth quarter of fiscal year 2022.
3 Non-GAAP financial measure. See reconciliations of GAAP to Non-GAAP financial measures under “Non-GAAP–Financial Measures” starting on page 5.

The table below shows the actual advertising spend, enrollments and bookings by university for fiscal year 2021 and estimated advertising spend, enrollments and bookings by university for fiscal year 2022, as well as forecasted year-over-year changes.

Advertising Budgets, Enrollments and Bookings by University

 Fiscal Year 2021
(actual)
Fiscal Year 2022
(forecast)
(Dollar amounts in millions)Advertising SpendEnrollmentsBookingsAdvertising SpendEnrollmentsBookings
AU Total$9.36,975$101.6$10.06,470*$98.7
Forecasted Change (%)   8%(-7%)(-3%)
USU (primarily MSN-FNP)$3.52,346$41.8$4.42,950$52.6
Forecasted Change (%)   26%26%26%
Universities Total$12.89,321$143.4$14.49,420$151.3
As a % of Total Revenue19%  17%  
Forecasted Change (%)   13%1%6%

*AU has begun proactively reducing spend and enrollments in the BSN Pre-Licensure Phoenix market given the pipeline of first-year Pre-Professional Nursing (PPN) online students in the Phoenix metro is nearing its 1,650 target capacity. Consequently, AU projects ~1,000 BSN Pre-Licensure enrollments in the Phoenix metro in FY’22, a reduction from ~1,600 in FY’21.

Fiscal Q4 2021 Earnings Conference Call Details:

Aspen Group will host a conference call to discuss its fourth quarter and full-year fiscal 2021 financial results and business outlook on Tuesday, July 13, 2021, at 4:30 p.m. (ET). 

The conference call can be accessed by dialing toll-free (844) 452-6823 (US) or (731) 256-5216 (international), passcode 4168399. After the call, a transcript of the audio cast will be available on the Company’s website at ir.aspen.edu. There will also be a seven-day dial-in replay which can be accessed by dialing toll-free (855) 859-2056 (US) or (404) 537-3406 (international), passcode 4168399.

Non-GAAP – Financial Measures:

This press release includes both financial measures in accordance with the Generally Accepted Accounting Principles, or GAAP, as well as non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternatives to net income (loss), operating income (loss), and cash flow from operating activities, liquidity or any other financial measures. They may not be indicative of the historical operating results of AGI nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP.

Our management uses and relies on Adjusted EBITDA and EBITDA, each of which are non-GAAP financial measures. We believe that both management and shareholders benefit from referring to these non-GAAP financial measures in planning, forecasting and analyzing future periods. Our management uses these non-GAAP financial measures in evaluating its financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management recognizes that the non-GAAP financial measures have inherent limitations because of the excluded items described below.

AGI defines Adjusted EBITDA as earnings (or loss) from operations before the items in the table below. It is important to note that there were $1,134,629 of non-recurring charges for the fiscal quarter ended April 30, 2021 compared to $77,000 in the fiscal quarter ended April 30, 2020. Adjusted EBITDA is an important measure of our operating performance because it allows management, investors and analysts to evaluate and assess our core operating results from period-to-period after removing the impact of items of a non-recurring nature that affect comparability.

We have included a reconciliation of our non-GAAP financial measures to the most comparable financial measures calculated in accordance with GAAP. We believe that providing the non-GAAP financial measures, together with the reconciliation to GAAP, helps investors make comparisons between AGI and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measure and the corresponding GAAP measure provided by each Company under applicable SEC rules.

AGI defines Adjusted EBITDA as EBITDA excluding: (1) bad debt expense; (2) stock-based compensation; and (3) other non-recurring charges. The following table presents a reconciliation of net loss to EBITDA and Adjusted EBITDA:

 Three Months Ended April 30, For the Year Ended April 30,
 2021 2020 2021 2020
Net loss$(2,319,986) $(664,563) $(10,448,973) $(5,659,065)
Interest expense, net13,369  393,471  2,031,545  1,818,078 
Taxes(12,446) (10,688) 32,644  51,820 
Depreciation and amortization874,111  493,268  2,426,365  2,203,461 
EBITDA(1,444,952) 211,488  (5,958,419) (1,585,706)
Bad debt expense566,540  780,005  2,268,540  1,431,210 
Stock-based compensation382,936  300,740  2,203,822  1,641,984 
Non-recurring charges – Other stock-based compensation555,321    1,754,263  474,324 
Non-recurring charges – Severance303,870    347,870  218,750 
Non-recurring charges – Other275,438  77,000  650,875  526,998 
Adjusted EBITDA$639,153  $1,369,233  $1,266,951  $2,707,560 

The following tables present a reconciliation of net income (loss) to EBITDA and Adjusted EBITDA by business unit:

 Three Months Ended April 30, 2021
 Consolidated AGI Corporate Aspen BSN Pre-Licensure AU Online AU Total USU
Net income (loss)$(2,319,986) $(4,736,579) $831,192   $557,608   $1,388,800   $1,027,793  
Interest expense, net13,369   13,486   —   —   —   (117)
Taxes(12,446) (14,250) —   2,064   2,064   (260)
Depreciation and amortization874,111   15,691   114,618   671,517   786,135   72,285  
EBITDA(1,444,952) (4,721,652) 945,810   1,231,189   2,176,999   1,099,701  
Bad debt expense566,540   —   —   340,000   340,000   226,540  
Stock-based compensation382,936   275,938   —   75,605   75,605   31,393  
Non-recurring charges – Other stock-based compensation555,321   555,321   —   —   —   —  
Non-recurring charges – Severance303,870   303,870   —   —   —   —  
Non-recurring charges – Other275,438   239,438   —  36,000   36,000   —  
Adjusted EBITDA$639,153   $(3,347,085) $945,810   $1,682,794   $2,628,604   $1,357,634  


 Year Ended April 30, 2021
 Consolidated AGI Corporate Aspen BSN Pre-Licensure AU Online AU Total USU
Net income (loss)$(10,448,973) $(20,666,448) $3,895,576  $3,386,117  $7,281,693  $2,935,782 
Interest expense, net2,031,545  2,031,745        (200)
Taxes32,644      32,644  32,644   
Depreciation and amortization2,426,365  57,713  189,618  2,020,548  2,210,166  158,486 
EBITDA(5,958,419) (18,576,990) 4,085,194  5,439,309  9,524,503  3,094,068 
Bad debt expense2,268,540      1,862,000  1,862,000  406,540 
Stock-based compensation2,203,822  1,845,683    210,771  210,771  147,368 
Non-recurring charges – Other stock-based compensation1,754,263  1,754,263         
Non-recurring charges – Severance347,870  347,870         
Non-recurring charges – Other650,875  614,875    36,000  36,000   
Adjusted EBITDA$1,266,951  $(14,014,299) $4,085,194  $7,548,080  $11,633,274  $3,647,976 

Guidance for Fiscal Year 2022

The following table presents a reconciliation of net loss to EBITDA and Adjusted EBITDA for fiscal year 2022 Guidance ranges (dollar amounts in millions):

 Fiscal Year 2022
Guidance Range
Net loss($4.5) - ($3.0)
Interest expense, net0.1 
Taxes 
Depreciation and amortization2.8 - 3.3
EBITDA($1.6) - $0.4
Bad debt expense1.0 
Stock-based compensation2.7 
Non-recurring charges(0.1) 
Adjusted EBITDA$2.0 - $4.0

Definitions

Bookings - defined by multiplying Lifetime Value by new student enrollments for each operating unit.

LTV or Lifetime Value - Lifetime Value is the weighted average total amount of tuition and fees paid by every new student that enrolls in the Company’s universities, after giving effect to attrition.

EBITDA Margin - is defined as EBITDA divided by revenues. We believe EBITDA margin is useful for analysts and investors as this measure allows a more meaningful comparison between our performance and that of our competitors. EBITDA margin has certain limitations in that it does not take into account the impact to our consolidated statement of operations of certain expenses.

Adjusted EBITDA Margin - is defined as Adjusted EBITDA divided by revenues. We believe Adjusted EBITDA margin is useful for analysts and investors as this measure allows a more meaningful comparison between our performance and that of our competitors. Adjusted EBITDA margin has certain limitations in that it does not take into account the impact to our consolidated statement of operations of certain expenses.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including the Company’s expected future operating results including its goal of achieving profitability in the fourth quarter of Fiscal 2022, the expected growth in Fiscal 2022 and the drivers for such growth, the expected increase in revenue from the Phoenix metro and its anticipated impact on our results, our plans to reduce advertising spending year-over-year in the AU Nursing + Unit and in our BSN Pre-Licensure Phoenix metro, and redirect that advertising spend towards our highest LTV programs, our expectations with respect to future increased leverage, lower cash burn, and reduced losses, anticipated changes in enrollments and bookings in fiscal 2022, the anticipated continued growth in the USU’s MSN-FNP program and the expected timing of the next BSN Pre-Licensure campus launch. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include the continued demand of nursing students for the new programs, student attrition, any further spread of COVID-19, national and local economic factors including the future impact of the COVID-19 pandemic on the economy, the competitive impact from the trend of major non-profit universities using online education, the receipt of necessary regulatory approvals for the new campus, and the risk that the Company’s assumptions with respect to its fiscal year 2022 performance may be incorrect. Other risks are included in our filings with the SEC including our Form 10-K for the year ended April 30, 2021. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

About Aspen Group, Inc.:

Aspen Group, Inc. is an education technology holding company that leverages its infrastructure and expertise to allow its two universities, Aspen University and United States University, to deliver on the vision of making college affordable again.

Investor Relations Contact:

Kim Rogers
Managing Director
Hayden IR
385-831-7337 
Kim@HaydenIR.com


GAAP Financial Statements

ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

 April 30,
 2021 2020
Assets   
    
Current assets:   
Cash and cash equivalents$8,513,290  $14,350,554 
Restricted cash5,152,789  3,556,211 
Accounts receivable, net of allowance of $3,289,816 and $1,758,920, respectively16,724,744  14,326,791 
Prepaid expenses1,077,831  941,671 
Other receivables  23,097 
Other current assets68,529  173,090 
Total current assets31,537,183  33,371,414 
    
Property and equipment:   
Computer equipment and hardware956,463  649,927 
Furniture and fixtures1,705,101  1,007,099 
Leasehold improvements5,729,324  867,024 
Instructional equipment421,039  301,842 
Software8,488,635  6,162,770 
Construction in progress247,767   
 17,548,329  8,988,662 
Less: accumulated depreciation and amortization(4,892,987) (2,841,019)
Total property and equipment, net12,655,342  6,147,643 
Goodwill5,011,432  5,011,432 
Intangible assets, net7,908,360  7,900,000 
Courseware, net187,296  111,457 
Accounts receivable, net of allowance of $625,963, and $625,963, respectively45,329  45,329 
Long term contractual accounts receivable10,249,833  6,701,136 
Debt issue cost, net18,056  182,418 
Operating lease right of use assets, net12,714,863  6,412,851 
Deposits and other assets479,212  355,831 
Total assets$80,806,906  $66,239,511 

(Continued)


ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (CONTINUED)

 April 30,
 2021 2020
Liabilities and Stockholders’ Equity   
Current liabilities:   
Accounts payable$1,466,488  $1,505,859 
Accrued expenses2,040,896  900,643 
Deferred revenue6,825,014  3,712,994 
Due to students2,747,484  2,371,844 
Operating lease obligations, current portion2,029,821  1,683,252 
Other current liabilities307,921  182,481 
Total current liabilities15,417,624  10,357,073 
    
Convertible notes, net of discount of $0 and $1,550,854, respectively  8,449,146 
Operating lease obligations, less current portion16,298,808  5,685,335 
Total liabilities31,716,432  24,491,554 
    
Commitments and contingencies   
    
Stockholders’ equity:   
Preferred stock, $0.001 par value; 1,000,000 shares authorized,   
0 issued and 0 outstanding at April 30, 2021 and April 30, 2020   
Common stock, $0.001 par value; 40,000,000 shares authorized,   
25,066,297 issued and 24,910,811 outstanding at April 30, 2021   
21,770,520 issued and 21,753,853 outstanding at April 30, 202025,067  21,771 
Additional paid-in capital109,040,824  89,505,216 
Treasury stock (155,486 and 16,667 shares, respectively)(1,817,414) (70,000)
Accumulated deficit(58,158,003) (47,709,030)
Total stockholders’ equity49,090,474  41,747,957 
Total liabilities and stockholders’ equity$80,806,906  $66,239,511 


ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

 Years Ended April 30,
 2021 2020
Revenues$67,812,520  $49,061,080 
    
Operating expenses   
Cost of revenues (exclusive of depreciation and amortization shown separately below)29,453,733  19,135,302 
General and administrative41,908,030  30,329,520 
Bad debt expense2,268,540  1,431,210 
Depreciation and amortization2,426,365  2,203,461 
Total operating expenses76,056,668  53,099,493 
    
Operating loss(8,244,148) (4,038,413)
    
Other income (expense):   
Other (expense) income(120,800) 249,246 
Interest expense(2,051,381) (1,818,078)
Total other expense, net(2,172,181) (1,568,832)
    
Loss before income taxes(10,416,329) (5,607,245)
    
Income tax expense32,644  51,820 
    
Net loss$(10,448,973) $(5,659,065)
    
Net loss per share - basic and diluted$(0.44) $(0.29)
    
Weighted average number of common shares outstanding - basic and diluted23,757,656  19,708,708 


ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
YEARS ENDED APRIL 30, 2021 AND 2020

 Common Stock Additional
Paid-In
Capital
 Treasury
Stock
Accumulated
Deficit
Total
Stockholders’
Equity
 Shares Amount
Balance as of April 30, 201918,665,551  $18,666  $68,562,727  $(70,000) $(42,049,965) $26,461,428  
Stock-based compensation    2,116,309      2,116,309  
Amortization of restricted stock issued for services    122,250      122,250  
Common stock issued for cashless exercise of stock options190,559  191  (191)       
Common stock issued for stock options exercised for cash277,678  278  962,372      962,650  
Common stock issued for cashless warrant exercise76,929  77  (77)       
Amortization of warrant based cost issued for services    36,719      36,719  
Restricted stock issued for services, subject to vesting144,803  144  (144)       
Common stock issued for equity raise, net of underwriter costs of $1,222,3712,415,000  2,415  16,042,464      16,044,879  
Other offering costs    (51,282)     (51,282) 
Beneficial conversion feature on Convertible Debt    1,692,309      1,692,309  
Common stock short swing reclamation    21,760      21,760  
Net loss        (5,659,065) (5,659,065) 
Balance as of April 30, 202021,770,520  $21,771  $89,505,216  $(70,000) $(47,709,030) $41,747,957  
Stock-based compensation    3,958,085      3,958,085  
Common stock issued for stock options exercised for cash1,389,463  1,389  4,485,272  (1,817,414)   2,669,247  
Common stock issued for cashless exercise of stock options34,773  35  (35)       
Common stock issued for conversion of Convertible Notes1,398,602  1,399  9,998,601      10,000,000  
Common stock issued for vested restricted stock units295,557  296  (296)       
Common stock issued for warrants exercised for cash192,049  192  1,081,600      1,081,792  
Common stock issued for services2,000  2  19,898      19,900  
Modification charge for warrants exercised    25,966      25,966  
Amortization of warrant based cost issued for services    36,500      36,500  
Cancellation of treasury stock(16,667) (17) (69,983) 70,000      
Net loss        (10,448,973) (10,448,973) 
Balance as of April 30, 202125,066,297  $25,067  $109,040,824  $(1,817,414) $(58,158,003) $49,090,474  


ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

 Years Ended April 30,
 2021 2020
Cash flows from operating activities:   
Net loss$(10,448,973) $(5,659,065)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:   
Bad debt expense2,268,540  1,431,210 
Depreciation and amortization2,426,365  2,203,461 
Stock-based compensation3,958,085  2,116,309 
Amortization of warrant based cost36,500  36,719 
Amortization of debt discounts1,550,854  261,128 
Amortization of debt issue costs164,362  118,406 
Modification charge for warrants exercised25,966   
Common stock issued for services19,900  122,250 
Loss on asset disposition  3,918 
Gain on extinguishment of debt  (50,000)
Lease (benefit) expense(27,796) 162,127 
Tenant improvement allowances received from landlords4,685,826   
Changes in operating assets and liabilities:   
Accounts receivable(8,215,190) (8,717,424)
Prepaid expenses(136,160) (530,926)
Other receivables23,097  (20,952)
Other current assets104,561  (173,090)
Deposits and other assets(164,341) 273,792 
Accounts payable(39,371) (193,362)
Accrued expenses1,140,253  501,699 
Due to students375,640  1,197,343 
Deferred revenue3,112,020  1,256,129 
Other current liabilities125,440  (88,305)
Net cash provided by (used in) operating activities985,578  (5,748,633)
    
Cash flows from investing activities:   
Purchase of finite life intangible assets(8,500)  
Purchases of courseware and accreditation(120,408) (13,851)
Purchases of property and equipment(8,848,395) (3,276,510)
Net cash used in investing activities(8,977,303) (3,290,361)
    
Cash flows from financing activities:   
Proceeds from warrants exercised1,081,792   
Proceeds from stock options exercised2,669,247  962,650 
Proceeds from sale of common stock net of underwriter costs  16,044,879 
Disbursements for equity offering costs  (51,282)
Common stock short swing reclamation  21,760 
Net cash provided by financing activities3,751,039  16,978,007 

(Continued)


ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

 Years Ended April 30,
 2021 2020
Net (decrease) increase in cash and cash equivalents$(4,240,686) $7,939,013 
Cash, cash equivalents and restricted cash at beginning of year17,906,765  9,967,752 
Cash, cash equivalents and restricted cash at end of year$13,666,079  $17,906,765 
    
Supplemental disclosure cash flow information:   
Cash paid for interest$310,958  $1,208,285 
Cash paid for income taxes$57,208  $51,820 
    
Supplemental disclosure of non-cash investing and financing activities:   
Common stock issued for conversion of Convertible Notes$10,000,000  $ 
Common stock issued for services$  $178,477 
Beneficial conversion feature on Convertible Debt$  $1,692,309 
Gain on extinguishment of debt$  $50,000 

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheet that sum to the same such amounts shown in the consolidated statement of cash flows:

 April 30,
 2021 2020
Cash and cash equivalents$8,513,290  $14,350,554 
Restricted cash5,152,789  3,556,211 
Total cash and cash equivalents and restricted cash$13,666,079  $17,906,765 

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