勒貊勛圖. (ASPU) News /rss The latest news released by 勒貊勛圖. (ASPU) en-us Equisolve Investor Relations Suite https://s3.amazonaws.com/equisolve-dev4/aspen/files/theme/images/logo-sm.png 勒貊勛圖. (ASPU) News /rss 88 31 勒貊勛圖. Announces Up-listing to OTCQB Market /news/detail/465/aspen-group-inc-announces-up-listing-to-otcqb-market Wed, 22 Jan 2025 14:55:00 -0500 /news/detail/465/aspen-group-inc-announces-up-listing-to-otcqb-market NEW YORK, Jan. 22, 2025 (GLOBE NEWSWIRE) -- 勒貊勛圖. ("AGI") (OTC Market: ASPU), an education technology holding company, today announced its successful up-listing to the OTCQB Venture Market (the "OTCQB") effective for trading January 22, 2025. 勒貊勛圖 will continue to trade under the ticker symbol "ASPU."

The transition from Expert Market to the OTCQB was due to the filing of its fourth quarter fiscal year 2024, first quarter fiscal year 2025 and second quarter fiscal year 2025 financial results and meeting other OTC Markets QB listing qualifications. 勒貊勛圖s financial results and other filings are available under the disclosure tab on the Companys OTC Market quote page.

The OTCQB is operated by the OTC Markets Group and recognized by the Securities and Exchange Commission (SEC) as an established public market that provides investors with the data they need to analyze, value, and trade securities. 勒貊勛圖's membership in the OTC Markets Group will assist in diversifying its shareholder base worldwide.

About 勒貊勛圖.

勒貊勛圖. 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. For more information, visit .

Contact Information:

Hayden IR
Kimberly Rogers
(385) 831-7337


Source: 勒貊勛圖 Inc. ]]>
勒貊勛圖 Reports Positive Cash from Operations Fiscal Year-to-Date /news/detail/464/aspen-group-reports-positive-cash-from-operations-fiscal-year-to-date Mon, 16 Dec 2024 16:29:00 -0500 /news/detail/464/aspen-group-reports-positive-cash-from-operations-fiscal-year-to-date Q2 Fiscal 2025 Highlights

  • Reports revenue of $11.5 Million
  • Gross margin increased to 71% from 63%
  • Net loss of $(4.2) million reflects $(4.9) million one-time non-cash lease related impairment charges for right-of-use assets and tenant leasehold improvements
  • Adjusted EBITDA improved by 42% year-over-year due to continued cost controls

PHOENIX, Dec. 16, 2024 (GLOBE NEWSWIRE) -- 勒貊勛圖. (OTC Markets: ASPU) (AGI or the "Company"), an education technology holding company, today announced financial results for its second quarter fiscal year 2025 ended October 31, 2024.

Second Quarter Fiscal Year 2025 Summary Results

Three Months Ended October 31, Six Months Ended October 31,
$ in millions, except per share data 2024 2023 2024 2023
Revenue $ 11.5 $ 13.8 $ 泭22.8 $ 28.5
Gross Profit1 $ 8.1 $ 8.7 $ 15.6 $ 18.5
Gross Margin (%)1 71 % 63 % 69 % 65 %
Operating Income (Loss) $ (4.8 ) $ (0.5 ) $ (5.5 ) $ (0.2 )
Net Income (Loss) Available to Common Stockholders 2 $ (4.2 ) $ (1.6 ) $ (4.4 ) $ (2.3 )
Earnings (Loss) per Share Available to Common Stockholders $ (0.16 ) $ (0.06 ) $ (0.17 ) $ (0.09 )
EBITDA3 $ (3.0 ) $ 0.4 $ (1.9 ) $ 1.8
Adjusted EBITDA3 $ 1.5 $ 1.1 $ 2.0 $ 3.0

_______________________泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭
1 GAAP gross profit calculation includes marketing and promotional costs, instructional costs and services, and amortization expense of $0.5 million and $0.5 million, and $0.9 million and $1.0 million for the three and six months ended October 31, 2024 and 2023, respectively.

2 Net income (loss) in fiscal Q2 2025 and year-to-date fiscal 2025 includes a noncash impairment charge of $(4.9) million. Additionally, fiscal Q2 2025 and year-to-date fiscal 2025 contain a non-cash gain of $1.1 million and $1.9 million, respectively, related to the change in the fair value of put warrant liability. See further explanation on page 2.

3 Non-GAAP financial measures. See reconciliations of GAAP to non-GAAP financial measures under Non-GAAPFinancial Measures starting on page 5.

We made significant strides toward stabilizing our revenue in the second quarter of fiscal 2025 while achieving positive cash flow through disciplined cost management, said Michael Mathews, Chairman and CEO of AGI. Despite maintaining a disciplined marketing spend, we achieved notable improvements in our financial performance, particularly gross margin. Our gross margin expanded primarily due to the lower instructional costs from completing the AU Pre-licensure BSN program teach-out and increased efficiencies in USUs instructional operations. Additionally, restructuring efforts reduced general and administrative expenses by 14% year-over-year. While our net loss was impacted by a one-time, noncash leasehold impairment charge, the lower instructional costs and expense reduction initiatives in the second quarter collectively drove a 42% year-over-year improvement in Adjusted EBITDA for the quarter and delivered modest year-to-date positive cash from operations.

Mr. Mathews concluded, As of the filing of our quarterly report for the first quarter fiscal year 2025 with OTC Market, AGI is now fully compliant with the QB listing requirements. We have recently begun the process to resume trading on the OTCQB.

Fiscal Q2 2025 Financial and Operational Results (compared to Fiscal Q2 2024)

Revenue decreased by 17% to $11.5 million compared to $13.8 million. The following table presents the Companys revenue, both per-subsidiary and total:

Three Months Ended October 31,
2024 $ Change % Change 2023
AU $ 4,773,693 $ (2,519,431 ) (35)% $ 7,293,124
USU 6,686,086 150,363 2% 6,535,723
Revenue $ 11,459,779 $ (2,369,068 ) (17)% $ 13,828,847


Aspen University's (AU) revenue decline of $2.5 million, or 35%, reflects the completion of the teach-out of the pre-licensure program and lower post-licensure enrollments in prior quarters as a result of the decrease in marketing spend initiated in late Fiscal Q1 2023. The active student body at AU decreased by 33% year-over-year to 3,827 at October 31, 2024 from 5,679 at October 31, 2023.

United States University (USU) revenue was up 2% compared to the prior period. MSN-FNP program enrollments decreased in the quarter due to lower marketing spend initiated in late Fiscal Q1 2023. Lower enrollments were offset by higher revenue per student driven by more students entering their second year of the MSN-FNP program, which includes clinical rotations, and by tuition increases. The active student body at USU decreased by 6% to 2,560 at October 31, 2024 from 2,733 at October 31, 2023.

GAAP gross profit decreased 7% to $8.1 million compared to $8.7 million primarily due to the overall student body decrease of 24%.泭泭 Gross margin was 71% compared to 63%. AU's gross margin was 67% versus 61%, and USU's gross margin was 74% versus 67%. The increase in gross margin is the result of lower instructional costs from completing the AU Pre-licensure BSN program teach-out, increased efficiencies in USUs instructional operations and lower marketing spend.

AU instructional costs and services represented 26% of AU revenue, and USU instructional costs and services represented 23% of USU revenue. AU marketing and promotional costs represented 1% of AU revenue, and USU marketing and promotional costs represented 1% of USU revenue.

In Fiscal Q2 2025 and year-to-date Fiscal 2025, our bottom line was materially impacted by a $4.9 million non-cash right-of-use assets and tenant leasehold improvements impairment charge. The charge is the result of the fact that AU is no longer able to utilize space for BSN Pre-licensure operations due to the completion of the teach-out. The charge represents the entirety of the remaining impairment exposure due to the teach-out. The impact of the charge to our operating expenses, net loss and EBITDA is presented in the following table:

Three Months Ended October 31, Six Months Ended October 31,
2024 $ Change % Change 2023 2024 $ Change % Change 2023
Impairments of right-of-use assets and tenant leasehold improvements $ 4,937,154 $ 4,937,154 NM $ $ 4,937,154 $ 4,937,154 NM $

_____________________
NM Not meaningful

The following tables present the Companys net income (loss), both per subsidiary and total:

Three Months Ended October 31, 2024
Consolidated AGI Corporate AU USU
Net income (loss) available to common stockholders $ (4,153,422 ) $ (935,442 ) $ (5,350,264 ) $ 2,132,284
Net loss per share available to common stockholders $ (0.16 )


Three Months Ended October 31, 2023
Consolidated AGI Corporate AU USU
Net income (loss) available to common stockholders $ 泭泭泭泭泭泭泭泭(1,611,813 ) $ 泭泭泭泭泭泭泭泭(3,807,821 ) $ 泭泭泭泭泭泭泭泭581,707泭泭泭泭泭泭泭泭 $ 1,614,301
Net loss per share available to common stockholders $ 泭泭泭泭泭泭泭泭(0.06 )


The following tables present the Companys Non-GAAP Financial Measures, both per subsidiary and total. See reconciliations of GAAP to non-GAAP financial measures under Non-GAAPFinancial Measures starting on page 5.

Three Months Ended October 31, 2024
Consolidated AGI Corporate AU USU
EBITDA $(2,962,755) $(496,585) $(4,747,931) $2,281,761
EBITDA Margin (26)% NM (99)% 34%
Adjusted EBITDA $1,549,020 $(1,478,554) $515,798 $2,511,776
Adjusted EBITDA Margin 14% NM 11% 38%


Three Months Ended October 31, 2023
Consolidated AGI Corporate AU USU
EBITDA $419,073 $(2,680,982) $1,339,102 $1,760,953
EBITDA Margin 3% NM 18% 27%
Adjusted EBITDA $1,087,205 $(2,487,843) $1,585,674 $1,989,374
Adjusted EBITDA Margin 8% NM 22% 30%


Adjusted EBITDA improved by $0.5 million due to the reduction in instructional costs and services related to the teach-out of the pre-licensure program, increased instructional efficiencies at USU and a decrease in general and administrative costs attributed to our restructurings.

Operating Metrics

New Student Enrollments

Total enrollments for AGI decreased 30% from Fiscal Q2 2024 but increased 15% sequentially, despite the reduction in internet advertising spend across all programs to maintenance levels. The sequential increase in enrollments reflected an unusually strong month of August as prospective students enrolled prior to an annual tuition increase which took effect in September 2024.

New student enrollments at AU decreased 37% year-over-year and at USU decreased 19% year-over-year. The new student enrollment decrease year-over-year was primarily impacted by our reduction in marketing spend. We anticipate the resumption of marketing spend in late Fiscal 2025 at a level necessary to provide enrollments needed to grow the student body and allow for the generation of positive operating cash flow.

New student enrollments for the past five quarters are shown below:

Q2'24 Q3'24 Q4'24 Q1'25 Q2'25
Aspen University 808 473 427 413 508
USU 548 325 370 410 442
Total 1,356 798 797 823 950

Total Active Student Body

AGIs active degree-seeking student body, including AU and USU, declined 24% year-over-year to 6,387 at October泭31, 2024 from 8,412 at October泭31, 2023. AU's total active student body decreased by 33% year-over-year to 3,827 at October泭31, 2024 from 5,679 at October泭31, 2023. On a year-over-year basis, USU's total active student body decreased by 6% to 2,560 at October泭31, 2024 from 2,733 at October泭31, 2023.

Total active student body for the past five quarters is shown below:

Q2'24 Q3'24 Q4'24 Q1'25 Q2'25
Aspen University 5,679 5,146 4,559 4,145 3,827
USU 2,733 2,503 2,489 2,477 2,560
Total 8,412 7,649 7,048 6,622 6,387

Nursing Students

Nursing student body for the past five quarters is shown below.

Q2'24 Q3'24 Q4'24 Q1'25 Q2'25
Aspen University 4,470 4,032 3,526 3,198 2,948
USU 2,432 2,270 2,262 2,254 2,300
Total 6,902 6,302 5,788 5,452 5,248


Liquidity

The Fiscal Q2 2025 ending unrestricted cash balance was $0.8 million. The following three factors will help us continue to stabilize operating cash flow in the second half of Fiscal 2025. First, effective August 16, 2024, AU transitioned from the Heightened Cash Monitoring 2 (HCM2) to the Heightened Cash Monitoring 1 (HCM1) method of receiving student financial aid payments from the U.S Department of Education. This transition allows AU to disburse student financial aid using institutional funds and immediately draw down reimbursement by submitting disbursement records, eliminating payment delays and resulting in more consistent unrestricted cash balances. Second, we renegotiated the 15% Senior Secured Debentures in November 2024, reducing ongoing principal payments and changing the timing of principal payments from monthly to quarterly. Finally, the Company initiated a fourth restructuring late in the fourth quarter of calendar 2024, projected to reduce annual operating expenses by over $1.5 million.

Cost reductions associated with the four restructuring plans and other corporate cost reductions were implemented to ensure that the company will have sufficient cash to meet its working capital needs for the next 12 months.

Non-GAAP Financial Measures

This press release includes both financial measures in accordance with 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 companys 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 EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures. We believe that management, analysts, and shareholders benefit from referring to the following non-GAAP financial measures to evaluate and assess our core operating results from period-to-period after removing the impact of items that affect comparability. Our management recognizes that the non-GAAP financial measures have inherent limitations because of the excluded items described below.

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.

AGI defines Adjusted EBITDA as EBITDA excluding: (1) bad debt expense; (2) stock-based compensation; (3) severance; (4) impairments of right-of-use assets and tenant leasehold improvements and (5) non-recurring (income) charges. The following table presents a reconciliation of net income (loss) to EBITDA and Adjusted EBITDA and of net income (loss) margin to the Adjusted EBITDA margin:

Three Months Ended October 31,
2024 2023
Net loss $ 泭泭泭泭泭泭泭泭(4,146,365 ) $ 泭泭泭泭泭泭泭泭(1,611,813 )
Interest expense, net 342,490 1,040,720
Taxes 46,225 40,076
Depreciation and amortization 794,895 950,090
EBITDA (2,962,755 ) 419,073
Bad debt expense 450,000 450,000
Stock-based compensation 98,245 218,132
Severance 35,522
Impairments of right-of-use assets and tenant leasehold improvements 4,937,154
Non-recurring income - Other (1,009,146 )
Adjusted EBITDA $ 1,549,020 $ 1,087,205
Net income / loss Margin (36 )%泭 (12 )%泭
Adjusted EBITDA Margin 14 %泭 8 %泭


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

Three Months Ended October 31, 2024
Consolidated AGI Corporate AU USU
Net income (loss) $ 泭泭泭泭泭泭泭泭(4,146,365 ) $ 泭泭泭泭泭泭泭泭(928,386 ) $ (5,350,264 ) $ 2,132,285
Interest expense, net 342,490 342,490
Taxes 46,225 15,479 25,900 4,846
Depreciation and amortization 794,895 73,832 576,433 144,630
EBITDA 泭泭泭泭泭泭泭泭(2,962,755 ) (496,585 ) (4,747,931 ) 2,281,761
Bad debt expense 450,000 225,000 225,000
Stock-based compensation 98,245 94,819 1,954 1,472
Severance 35,522 8,357 23,622 3,543
Impairments of right-of-use assets and tenant leasehold improvements 4,937,154 4,937,154
Non-recurring (income) charges - Other (1,009,146 ) (1,085,145 ) 75,999
Adjusted EBITDA $ 1,549,020 $ (1,478,554 ) $ 515,798 $ 2,511,776


Net income (loss) Margin (36)% NM (112)% 32 %
Adjusted EBITDA Margin 14 % NM 11 % 38 %

___________________
NM Not meaningful

Three Months Ended October 31, 2023
Consolidated AGI Corporate AU USU
Net income (loss) $ (1,611,813 ) $ (3,807,821 ) $ 581,707 $ 1,614,301
Interest expense, net 1,040,720 1,040,720
Taxes 40,076 7,997 18,601 13,478
Depreciation and amortization 950,090 78,122 738,794 133,174
EBITDA 419,073 (2,680,982 ) 1,339,102 泭 1,760,953
Bad debt expense 450,000 225,000 225,000
Stock-based compensation 218,132 193,139 21,572 3,421
Adjusted EBITDA $ 1,087,205 $ 泭泭泭泭泭泭泭泭(2,487,843 ) $ 1,585,674 $ 1,989,374


Net income (loss) Margin (12)% NM 8 % 25 %
Adjusted EBITDA Margin 8 % NM 22 % 30 %


Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including the impact of our operating and debt restructurings, results of our resumption of marketing spend, and our liquidity. 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. The results anticipated by any or all of these forward-looking statements might not occur. Important factors, uncertainties and risks that may cause actual results to differ materially from these forward-looking statements include, without limitation, the impact from our fourth restructuring plan, the effectiveness of our future marketing, our ability to sublease our remaining leases other than our executive offices and necessary space used by AU and USU, the continued high demand for nurses for our new programs and in general, student attrition, national and local economic factors including the labor market shortages, and competition from other online universities including the competitive impact from the trend of major non-profit universities using online education. . We undertake no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.

About 勒貊勛圖.

勒貊勛圖. 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泭

GAAP Financial Statements


ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

October 31, 2024 April 30, 2024
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 827,780 $ 1,531,425
Restricted cash 338,002 1,088,002
Accounts receivable, net of allowance of $5,436,207 and $4,560,378, respectively 18,463,099 19,686,527
Prepaid expenses 674,081 502,751
Other current assets 986,357 1,785,621
Total current assets 21,289,319 24,594,326
Property and equipment:
Computer equipment and hardware 888,566 886,152
Furniture and fixtures 1,974,271 1,974,271
Leasehold improvements 4,594,239 6,553,314
Instructional equipment 529,299 529,299
Software 9,347,651 8,784,996
17,334,026 18,728,032
Less: accumulated depreciation and amortization (10,348,986 ) (9,542,520 )
Total property and equipment, net 6,985,040 9,185,512
Goodwill 5,011,432 5,011,432
Intangible assets, net 7,900,000 7,900,000
Courseware and accreditation, net 333,120 363,975
Long-term contractual accounts receivable 18,619,202 17,533,030
Operating lease right-of-use assets, net 5,512,553 10,639,838
Deposits and other assets 693,193 718,888
Total assets $ 66,343,859 $ 75,947,001



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

October 31, 2024 April 30, 2024
(Unaudited)
Liabilities and Stockholders Equity
Liabilities:
Current liabilities:
Accounts payable $ 1,238,506 $ 2,311,360
Accrued expenses 3,311,273 2,880,478
Advances on tuition 2,166,683 2,030,501
Deferred tuition 3,780,213 4,881,546
Due to students 2,293,614 2,558,492
Current portion of long-term debt 2,000,000 2,284,264
Operating lease obligations, current portion 2,498,289 2,608,534
Other current liabilities 511,449 86,495
Total current liabilities 17,800,027 19,641,670
Long-term debt, net 6,184,328 6,776,506
Operating lease obligations, less current portion 13,760,114 14,999,687
Put warrants liabilities 58,461 1,964,593
Other long-term liabilities 287,930 287,930
Total liabilities 38,090,860 43,670,386
Commitments and contingencies
Stockholders equity:
Preferred stock, $0.001 par value; 1,000,000 shares authorized,
10,000 issued and 10,000 outstanding at October泭31, 2024 and April泭30, 2024 10 10
Common stock, $0.001 par value; 85,000 shares authorized,
26,959,681 issued and 26,959,681 outstanding at October泭31, 2024
25,701,603 issued and 25,701,603 outstanding at April泭30, 2024 26,960 25,702
Additional paid-in capital 122,170,403 121,921,048
Accumulated deficit (93,944,374 ) (89,670,145 )
Total stockholders equity 28,252,999 32,276,615
Total liabilities and stockholders equity $ 66,343,859 $ 75,947,001


ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months Ended October 31, Six Months Ended October 31,
2024 2023 2024 2023
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenue $ 11,459,779 $ 13,828,847 $ 22,788,616 $ 28,468,719
Operating expenses:
Cost of revenue (exclusive of depreciation and amortization shown separately below) 2,885,895 4,584,193 6,233,120 8,977,048
General and administrative 7,237,555 8,371,546 14,564,889 16,842,424
Impairments of right-of-use assets and tenant leasehold improvements 4,937,154 4,937,154
Bad debt expense 450,000 450,000 900,000 900,000
Depreciation and amortization 794,895 950,090 1,614,899 1,913,302
Total operating expenses 16,305,499 14,355,829 28,250,062 28,632,774
Operating loss (4,845,720 ) (526,982 ) (5,461,446 ) (164,055 )
Other income (expense):
Interest expense (342,490 ) (1,040,720 ) (689,660 ) (1,977,201 )
Change in fair value of put warrant liability 1,085,145 1,906,132
Other income (expense), net 2,925 (4,035 ) 16,762 14,252
Total other income (expense), net 745,580 (1,044,755 ) 1,233,234 (1,962,949 )
Loss before income taxes (4,100,140 ) (1,571,737 ) (4,228,212 ) (2,127,004 )
Income tax expense 46,225 40,076 46,017 124,247
Net loss (4,146,365 ) (1,611,813 ) (4,274,229 ) (2,251,251 )
Dividends attributable to preferred stock (7,057 ) (148,209 )
Net loss available to common stockholders $ (4,153,422 ) $ (1,611,813 ) $ (4,422,438 ) $ (2,251,251 )
Net loss per share - basic and diluted available to common stockholders $ (0.16 ) $ (0.06 ) $ (0.17 ) $ (0.09 )
Weighted average number of common stock outstanding - basic and diluted 26,692,457 25,548,046 26,308,766 25,557,646


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

Six Months Ended October 31,
2024 2023
(Unaudited) (Unaudited)
Cash flows from operating activities:
Net loss $ (4,274,229 ) $ (2,251,251 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Bad debt expense 900,000 900,000
Depreciation and amortization 1,614,899 1,913,302
Stock-based compensation 190,836 305,581
Change in fair value of put warrant liability (1,906,132 )
Amortization of warrant-based cost 7,000 14,000
Amortization of debt issuance costs 156,020
Amortization of debt discounts 193,020
Non-cash lease benefit 107,696 (399,201 )
Impairments of right-of-use assets and tenant leasehold improvements 4,937,154
Changes in operating assets and liabilities:
Accounts receivable (762,744 ) (5,763,185 )
Prepaid expenses (171,330 ) (19,140 )
Other current assets 799,264 (1,852,817 )
Deposits and other assets 25,695 (384,030 )
Accounts payable (1,072,854 ) 665,283
Accrued expenses 430,795 565,915
Due to students (264,878 ) (89,095 )
Advances on tuition and deferred tuition (965,151 ) 1,272,532
Other current liabilities 424,954 578,940
Net cash provided by (used in) operating activities 20,975 (4,194,126 )
Cash flows from investing activities:
Purchases of courseware and accreditation (33,110 ) 泭泭泭泭泭泭泭泭(120,863 )
Purchases of property and equipment (565,068 ) 泭泭泭泭泭泭泭泭(558,565 )
Net cash used in investing activities (598,178 ) 泭泭泭泭泭泭泭泭(679,428 )
Cash flows from financing activities:
Repayment of portion of 15% Senior Secured Debentures (721,066 ) 泭泭泭泭泭泭泭泭(100,000 )
Proceeds from 15% Senior Secured Debentures, net of original issuance discount and fees 10,451,080
Repayment of 2018 Credit Facility (5,000,000 )
Payments of debt issuance costs (155,376 ) (195,661 )
Net cash (used in) provided by financing activities (876,442 ) 5,155,419



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

Six Months Ended October 31,
2024 2023
(Unaudited) (Unaudited)
Net (decrease) increase in cash, cash equivalents and restricted cash $ 泭泭泭泭泭泭泭泭(1,453,645 ) $ 泭泭281,865
Cash, cash equivalents and restricted cash at beginning of period 2,619,427 5,724,467
Cash, cash equivalents and restricted cash at end of period $ 1,165,782 $ 6,006,332
Supplemental disclosure of cash flow information:
Cash paid for interest $ 689,660 $ 1,639,701
Cash paid for income taxes $ 46,017 $ 24,525
Supplemental disclosure of non-cash investing and financing activities:
Accrued dividends $ 148,209 $
Relative fair value of warrants issued as part of the 15% Senior Secured Debentures $ 154,000


The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the accompanying consolidated balance sheet to the total amounts shown in the accompanying unaudited consolidated statements of cash flows:

October 31,
2024 2023
(Unaudited) (Unaudited)
Cash and cash equivalents $ 827,780 $ 1,906,332
Restricted cash 338,002 4,100,000
Total cash, cash equivalents and restricted cash $ 1,165,782 $ 6,006,332

Source: 勒貊勛圖 Inc. ]]>
勒貊勛圖 Delivers Positive Cash Flow from Operations in Fiscal Q1 2025 /news/detail/463/aspen-group-delivers-positive-cash-flow-from-operations-in-fiscal-q1-2025 Fri, 06 Dec 2024 09:13:00 -0500 /news/detail/463/aspen-group-delivers-positive-cash-flow-from-operations-in-fiscal-q1-2025
  • Reports Revenue of $11.3 Million in Fiscal Q1 2025
  • Further restructured operating expenses and debt to preserve cash and position the company for sustained positive EBITDA
  • Successfully resolved outstanding regulatory issues during calendar year 2024
  • Completion of teach-out for all AU BSN Pre-licensure students as of September 2024
  • Demand for post-licensure nursing degrees remains strong
  • PHOENIX, Dec. 06, 2024 (GLOBE NEWSWIRE) -- 勒貊勛圖. (OTC Markets: ASPU) (AGI), an education technology holding company, today announced financial results for its first quarter of fiscal year 2025 ended July 31, 2024.

    First Quarter Fiscal Year 2025 Summary Results

    Three Months Ended July 31,
    $ in millions, except per share data 2024 2023
    Revenue $ 11.3 $ 14.6
    Gross Profit1 $ 7.5 $ 9.8
    Gross Margin (%)1 66 % 67 %
    Net Income (Loss) Available to Common Stockholders $ (0.3 ) $ (0.6 )
    Earnings (Loss) per Share Available to Common Stockholders $ (0.01 ) $ (0.03 )
    EBITDA2 $ 1.0 $ 1.3
    Adjusted EBITDA2 $ 0.4 $ 1.9

    _______________________泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭
    1 GAAP gross profit calculation includes marketing and promotional costs, instructional costs and services, and amortization expense of $0.5 million and $0.5 million for the three months ended July 31, 2024 and 2023, respectively.

    2 Non-GAAP financial measures. See reconciliations of GAAP to non-GAAP financial measures under "Non-GAAPFinancial Measures" starting on page 4.

    Over the past year, AGI has successfully addressed its key regulatory challenges, including the removal of Aspen Universitys show cause directive by the Distance Education Accrediting Commission (DEAC) and AUs transition off the HCM2 financial aid payment method with the Department of Education, said Michael Mathews, Chairman and CEO of AGI. Furthermore, we recently took steps to further reduce our operating expenses, and we restructured our debt, positioning the company to achieve positive cash flow and positive EBITDA and Adjusted EBITDA. These measures collectively strengthen our liquidity and position us for sustained financial stability, enabling AGI to reinvest in marketing and drive student enrollment growth by the end of fiscal year 2025.

    Mr. Mathews continued, Following the completion of AUs BSN Pre-licensure program teach-out in September 2024, our focus has shifted to positioning the company to expand enrollment in our traditional post-licensure nursing programs, with particular concentration on USUs MSN-FNP program, now our highest LTV program at $17,820 per enrollment. With over a million RNs expected to exit the profession by 2030 due to retirement or burnout, and healthcare demand steadily increasing, addressing the need for FNPs remains a critical priority.

    Fiscal Q1 2025 Financial and Operational Results (compared to Fiscal Q1 2024)

    Revenue decreased 23% to $11.3 million compared to $14.6 million. The following table presents the Companys revenue, both per subsidiary and total:

    Three Months Ended July 31,
    2024 $ Change % Change 2023
    AU $ 4,791,904 $ (2,931,021 ) (38 )% $ 7,722,925
    USU 6,536,933 (380,014 ) (5 )% 6,916,947
    Revenue $ 11,328,837 $ (3,311,035 ) (23 )% $ 14,639,872

    Aspen University (AU) revenue decreased by $2.9 million or 38%, with the Phoenix BSN Pre-Licensure program accounting for $1.45 million of the decrease. The active student body at AU decreased from 6,001 at July 31, 2023 to 4,145 at July 31, 2024 due to the continued maintenance level of marketing spend.

    United States University (USU) revenue decreased 5% due primarily to a modest active student body decrease in USU's MSN-FNP program, the USU degree program with the highest concentration of students. The active student body at USU decreased from 2,590 at July 31, 2023 to 2,477 at July 31, 2024 due to the continued maintenance level of marketing spend.

    GAAP gross profit decreased 23% to $7.5 million compared to $9.8 million, primarily due to lower revenue. Gross margin was 66% compared to 67%. AU gross margin was 61% versus 62% of AU revenue, and USU gross margin was 71% versus 72% of USU revenue.

    AU instructional costs and services represented 31% of AU revenue, and USU instructional costs and services represented 26% of USU revenue. AU marketing and promotional costs represented 2% of AU revenue, while USU marketing and promotional costs represented 1% of USU revenue.

    The following tables present the Companys net income (loss) available to common stockholders, both per subsidiary and total:

    Three Months Ended July 31, 2024
    Consolidated AGI Corporate AU USU
    Net (loss) income available to common stockholders $ (269,016 ) $ (1,584,916 ) $ (491,022 ) $ 1,806,922
    Net loss per share available to common stockholders $ (0.01 )


    Three Months Ended July 31, 2023
    Consolidated AGI Corporate AU USU
    Net (loss) income available to common stockholders $ (639,438 ) $ (3,805,601 ) $ 646,376 $ 2,519,787
    Net loss per share available to common stockholders $ (0.03 )

    The following tables present the Companys Non-GAAP measures, both per subsidiary and total. See reconciliations of GAAP to non-GAAP financial measures under Non-GAAPFinancial Measures starting on page 4.

    Three Months Ended July 31, 2024
    Consolidated AGI Corporate AU USU
    EBITDA $ 1,039,102 $ (1,018,946 ) $ 112,814 $ 1,945,234
    EBITDA Margin 9 % NM 2 % 30 %
    Adjusted EBITDA 447,615 (1,635,054 ) (99,794 ) 2,182,463
    Adjusted EBITDA Margin 4 % NM (2 )% 33 %
    _______________
    NM Not meaningful
    Three Months Ended July 31, 2023
    Consolidated AGI Corporate AU USU
    EBITDA $ 1,344,405 $ (2,738,712 ) $ 1,427,102 $ 2,656,015
    EBITDA Margin 9 % NM 18 % 38 %
    Adjusted EBITDA 1,881,854 (2,691,840 ) 1,685,160 2,888,534
    Adjusted EBITDA Margin 13 % NM 22 % 42 %

    Liquidity

    The Fiscal Q1 2025 ending unrestricted cash balance of approximately $1.3 million resulted from the timing of financial aid payments received from the Department of Education (DOE). The following three factors will help improve cash flow in the second half of Fiscal 2025. First, effective August 16, 2024, AU transitioned from the Heightened Cash Monitoring 2 (HCM2) to the Heightened Cash Monitoring 1 (HCM1) method of receiving student financial aid payments from the DOE. This transition allows AU to disburse student financial aid using institutional funds and immediately draw down reimbursement by submitting disbursement records, eliminating payment delays and resulting in more consistent unrestricted cash balances. Second, we renegotiated the 15% Senior Secured Debentures in November 2024, reducing ongoing principal payments and changing the timing of principal payments from monthly to quarterly. Finally, the Company initiated a fourth restructuring in the fourth quarter of calendar 2024, projected to reduce annual operating expenses by over $1.5 million.

    Cost reductions associated with the four restructuring plans and other corporate cost reductions were implemented to ensure that the company will have sufficient cash to meet its working capital needs for the next 12 months.

    Operating Metrics

    New Student Enrollments

    On a Company-wide basis, new student enrollments were down 19% year-over-year, but increased 3% sequentially. New student enrollments at AU decreased 34% year-over-year and at USU increased 5% year-over-year. The year-over-year company-wide decrease in new student enrollments is primarily the result of the on-going maintenance level of marketing spend. We anticipate we will increase marketing spend in late Fiscal 2025 to a level necessary to provide enrollments needed to grow the student body and increase positive operating cash flow.

    New student enrollments for the past five quarters are shown below:

    Q1'24 Q2'24 Q3'24 Q4'24 Q1'25
    AU 626 808 473 427 413
    USU 389 548 325 370 410
    Total 1,015 1,356 798 797 823

    Total Active Student Body

    Total active student body for the past five quarters is shown below:

    Q1'24 Q2'24 Q3'24 Q4'24 Q1'25
    AU 6,001 5,679 5,146 4,559 4,145
    USU 2,590 2,733 2,503 2,489 2,477
    Total 8,591 8,412 7,649 7,048 6,622

    Nursing Students

    Nursing student body for the past five quarters are shown below:

    Q1'24 Q2'24 Q3'24 Q4'24 Q1'25
    AU 4,766 4,470 4,032 3,526 3,198
    USU 2,349 2,432 2,270 2,262 2,254
    Total 7,115 6,902 6,302 5,788 5,452

    Non-GAAP Financial Measures

    This press release includes both financial measures in accordance with 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 companys 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 EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Gross Profit, which are non-GAAP financial measures. We believe that management, analysts and shareholders benefit from referring to the following non-GAAP financial measures to evaluate and assess our core operating results from period-to-period after removing the impact of items that affect comparability. Our management recognizes that the non-GAAP financial measures have inherent limitations because of the excluded items described below.

    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.

    AGI defines Adjusted EBITDA as EBITDA excluding: (1) bad debt expense; (2) stock-based compensation; (3) severance; and (4) non-recurring charges. The following table presents a reconciliation of net loss to EBITDA and Adjusted EBITDA and of net income (loss) margin to Adjusted EBITDA Margin:

    Three Months Ended July 31,
    2024 2023
    Net loss $ (127,864 ) $ (639,438 )
    Interest expense, net 347,170 936,460
    Taxes (208 ) 84,171
    Depreciation and amortization 820,004 963,212
    EBITDA 1,039,102 1,344,405
    Bad debt expense 450,000 450,000
    Stock-based compensation 210,091 87,449
    Severance 50,707
    Non-recurring charges - Other (1,302,285 )
    Adjusted EBITDA $ 447,615 $ 1,881,854
    Net loss Margin (1 )% (4 )%
    Adjusted EBITDA Margin 1 4 % 13 %

    _______________________

    1 Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue. Adjusted EBITDA margin has certain limitations in that it does not take into account the impact on our consolidated statement of operations of certain expenses.

    The following tables present a reconciliation of Net income (loss) to EBITDA and Adjusted EBITDA and of Net loss margin to Adjusted EBITDA margin by subsidiary:

    Three Months Ended July 31, 2024
    Consolidated AGI Corporate AU USU
    Net income (loss) $ (127,864 ) $ (1,443,764 ) $ (491,022 ) $ 1,806,922
    Interest expense, net 347,170 347,170
    Taxes (208 ) 92 (300 )
    Depreciation and amortization 820,004 77,556 603,836 138,612
    EBITDA 1,039,102 (1,018,946 ) 112,814 1,945,234
    Bad debt expense 450,000 225,000 225,000
    Stock-based compensation 210,091 201,754 6,865 1,472
    Severance 50,707 3,125 36,825 10,757
    Non-recurring charges - Other (1,302,285 ) (820,987 ) (481,298 )
    Adjusted EBITDA $ 447,615 $ (1,635,054 ) $ (99,794 ) $ 2,182,463
    Net income (loss) Margin (1 )% NM (10 )% 28 %
    Adjusted EBITDA Margin 4 % NM (2 )% 33 %

    _______________________
    NM - Not meaningful

    Three Months Ended July 31, 2023
    Consolidated AGI Corporate AU USU
    Net income (loss) $ (639,438 ) $ (3,805,601 ) $ 646,376 $ 2,519,787
    Interest expense, net 936,460 936,481 (6 ) (15 )
    Taxes 84,171 54,766 19,425 9,980
    Depreciation and amortization 963,212 75,642 761,307 126,263
    EBITDA 1,344,405 (2,738,712 ) 1,427,102 2,656,015
    Bad debt expense 450,000 225,000 225,000
    Stock-based compensation 87,449 46,872 33,058 7,519
    Adjusted EBITDA $ 1,881,854 $ (2,691,840 ) $ 1,685,160 $ 2,888,534
    Net income (loss) Margin (4 )% NM 8 % 36 %
    Adjusted EBITDA Margin 13 % NM 22 % 42 %

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including the impact of our operating and debt restructurings and expected positive operating cash flow and positive EBITDA and future growth. 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. The results anticipated by any or all of these forward-looking statements might not occur. Important factors, uncertainties and risks that may cause actual results to differ materially from these forward-looking statements include, without limitation, the impact from our last restructuring plan. our ability to sublease our remaining leases other than our executive offices and necessary space used by AU and USU, the continued high demand for nurses for our new programs and in general, student attrition, national and local economic factors including the labor market shortages, competition from other online universities including the competitive impact from the trend of major non-profit universities using online education , the effectiveness of our future marketing and the impact of any Federal Reserve interest rate changes on the economy. We undertake no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.

    About 勒貊勛圖.

    勒貊勛圖. 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泭

    GAAP Financial Statements

    ASPEN GROUP, INC. AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    July 31, 2024 April 30, 2024
    (Unaudited)
    Assets
    Current assets:
    Cash and cash equivalents $ 1,308,843 $ 1,531,425
    Restricted cash 1,088,002 1,088,002
    Accounts receivable, net of allowance of $5,005,236 and $4,560,378, respectively 18,738,129 19,686,527
    Prepaid expenses 508,752 502,751
    Other current assets 1,417,092 1,785,621
    Total current assets 23,060,818 24,594,326
    Property and equipment:
    Computer equipment and hardware 888,566 886,152
    Furniture and fixtures 1,974,271 1,974,271
    Leasehold improvements 6,553,314 6,553,314
    Instructional equipment 529,299 529,299
    Software 9,072,488 8,784,996
    19,017,938 18,728,032
    Less: accumulated depreciation and amortization (10,331,034 ) (9,542,520 )
    Total property and equipment, net 8,686,904 9,185,512
    Goodwill 5,011,432 5,011,432
    Intangible assets, net 7,900,000 7,900,000
    Courseware and accreditation, net 353,065 363,975
    Long-term contractual accounts receivable 17,550,272 17,533,030
    Operating lease right-of-use assets, net 9,598,303 10,639,838
    Deposits and other assets 699,470 718,888
    Total assets $ 72,860,264 $ 75,947,001

    (Continued)

    ASPEN GROUP, INC. AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS (CONTINUED)
    July 31, 2024 April 30, 2024
    (Unaudited)
    Liabilities and Stockholders Equity
    Liabilities:
    Current liabilities:
    Accounts payable $ 2,115,294 $ 2,311,360
    Accrued expenses 3,099,740 2,880,478
    Advances on tuition 2,300,046 2,030,501
    Deferred tuition 3,344,645 4,881,546
    Due to students 2,419,963 2,558,492
    Current portion of long-term debt 2,915,863 2,284,264
    Operating lease obligations, current portion 2,264,213 2,608,534
    Other current liabilities 488,991 86,495
    Total current liabilities 18,948,755 19,641,670
    Long-term debt, net 5,994,907 6,776,506
    Operating lease obligations, less current portion 14,259,290 14,999,687
    Put warrants liabilities 1,143,606 1,964,593
    Other long-term liabilities 287,930 287,930
    Total liabilities 40,634,488 43,670,386
    Commitments and contingencies
    Stockholders equity:
    Preferred stock, $0.001 par value; 1,000,000 shares authorized, 10,000 issued and 10,000 outstanding at July泭31, 2024 and April泭30, 2024 10 10
    Common stock, $0.001 par value; 85,000,000 shares authorized, 25,932,255 issued and 25,932,255 outstanding at July泭31, 2024
    25,701,603 issued and 25,701,603 outstanding at April泭30, 2024 25,932 25,702
    Additional paid-in capital 121,997,843 121,921,048
    Accumulated deficit (89,798,009 ) (89,670,145 )
    Total stockholders equity 32,225,776 32,276,615
    Total liabilities and stockholders equity $ 72,860,264 $ 75,947,001


    ASPEN GROUP, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)
    Three Months Ended July 31,
    2024 2023
    (Unaudited) (Unaudited)
    Revenue $ 11,328,837 $ 14,639,872
    Operating expenses:
    Cost of revenue (exclusive of depreciation and amortization shown separately below) 3,347,225 4,392,855
    General and administrative 7,327,334 8,470,878
    Bad debt expense 450,000 450,000
    Depreciation and amortization 820,004 963,212
    Total operating expenses 11,944,563 14,276,945
    Operating (loss) income (615,726 ) 362,927
    Other income (expense):
    Interest expense (347,170 ) (936,481 )
    Change in fair value of put warrant liability 820,987
    Other income, net 13,837 18,287
    Total other income (expense), net 487,654 (918,194 )
    Loss before income taxes (128,072 ) (555,267 )
    Income tax (benefit) expense (208 ) 84,171
    Net loss (127,864 ) (639,438 )
    Dividends attributable to preferred stock (141,152 )
    Net loss available to common stockholders $ (269,016 ) $ (639,438 )
    Net loss per share - basic and diluted available to common stockholders $ (0.01 ) $ (0.03 )
    Weighted average number of common stock outstanding - basic and diluted 25,929,218 25,567,351


    ASPEN GROUP, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
    Three Months Ended July 31,
    2024 2023
    (Unaudited) (Unaudited)
    Cash flows from operating activities:
    Net loss $ (127,864 ) $ (639,438 )
    Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
    Bad debt expense 450,000 450,000
    Depreciation and amortization 820,004 963,212
    Stock-based compensation 151,341 87,449
    Change in fair value of put warrant liability (820,987 )
    Amortization of warrant-based cost 7,000 7,000
    Amortization of debt issuance costs 73,174
    Amortization of debt discounts 77,208
    Non-cash lease benefit (124,499 ) (196,720 )
    Changes in operating assets and liabilities:
    Accounts receivable 481,156 (2,915,225 )
    Prepaid expenses (6,001 ) (34,123 )
    Other current assets 368,529 (3,210,237 )
    Deposits and other assets 19,418 (571,014 )
    Accounts payable (196,066 ) 180,041
    Accrued expenses 219,262 214,859
    Due to students (138,529 ) 186,030
    Advances on tuition and deferred tuition (1,267,356 ) 812,637
    Other current liabilities 402,496 (88,317 )
    Net cash provided by (used in) operating activities 237,904 (4,603,464 )
    Cash flows from investing activities:
    Purchases of courseware and accreditation (20,580 ) (28,020 )
    Purchases of property and equipment (289,906 ) (291,632 )
    Net cash used in investing activities (310,486 ) (319,652 )
    Cash flows from financing activities:
    Repayment of portion of 15% Senior Secured Debentures (150,000 )
    Proceeds from 15% Senior Secured Debentures, net of original issuance discount and fees 10,451,080
    Repayment of 2018 Credit Facility (5,000,000 )
    Payments of debt issuance costs (195,661 )
    Net cash (used in) provided by financing activities $ (150,000 ) $ 5,255,419

    (Continued)


    ASPEN GROUP, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
    (Unaudited)
    Three Months Ended July 31,
    2024 2023
    (Unaudited) (Unaudited)
    Net (decrease) increase in cash, cash equivalents and restricted cash $ (222,582 ) $ 332,303
    Cash, cash equivalents and restricted cash at beginning of period 2,619,427 5,724,467
    Cash, cash equivalents and restricted cash at end of period $ 2,396,845 $ 6,056,770
    Supplemental disclosure of cash flow information:
    Cash paid for interest $ 345,413 $ 671,031
    Cash (refunded) paid for income taxes $ (208 ) $ 59,172
    Supplemental disclosure of non-cash investing and financing activities:
    Accrued dividends $ 141,152 $
    Relative fair value of warrants issued as part of the 15% Senior Secured Debentures $ $ 154,000

    The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the accompanying consolidated balance sheet to the total amounts shown in the accompanying unaudited consolidated statements of cash flows:

    July 31,
    2024 2023
    (Unaudited) (Unaudited)
    Cash and cash equivalents $ 1,308,843 $ 217,370
    Restricted cash 1,088,002 5,839,400
    Total cash, cash equivalents and restricted cash $ 2,396,845 $ 6,056,770

    Source: 勒貊勛圖 Inc. ]]>
    Aspen University Removed from HCM2 Payment Method /news/detail/462/aspen-university-removed-from-hcm2-payment-method Mon, 19 Aug 2024 16:01:00 -0400 /news/detail/462/aspen-university-removed-from-hcm2-payment-method PHOENIX, Aug. 19, 2024 (GLOBE NEWSWIRE) -- 勒貊勛圖. ("AGI" or the Company) (OTCQB: ASPU), an education technology holding company, announced today that Aspen University ("AU") has been removed from the Heightened Cash Monitoring 2 ("HCM2") status by the U.S. Department of Education (DOE). Effective August 16, 2024, AU transitioned to Heightened Cash Monitoring 1 ("HCM1") status.

    Under the previous HCM2 payment method, AU had to disburse student financial aid from its own institutional funds. AU was then required to submit a Reimbursement Payment Request (the Request) to the DOE, and reimbursement was received only after the DOE completed its review of the Request. With the transition to HCM1, AU will still need to disburse student financial aid from its own institutional funds, but AU can now submit disbursement records to the DOE system and immediately draw down the funds to cover those disbursements. This shift from HCM2 to HCM1 is expected to reduce the variability of the Companys unrestricted cash balances.

    About 勒貊勛圖.

    勒貊勛圖. 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. For more information, visit www.aspu.com.

    Contact Information:

    Hayden IR
    Kimberly Rogers
    (385) 831-7337


    Source: 勒貊勛圖 Inc. ]]>
    Aspen University Announces the Distance Education Accrediting Commission has Vacated its Show Cause Directive Effective Immediately /news/detail/461/aspen-university-announces-the-distance-education-accrediting-commission-has-vacated-its-show-cause-directive-effective-immediately Mon, 22 Jul 2024 08:00:00 -0400 /news/detail/461/aspen-university-announces-the-distance-education-accrediting-commission-has-vacated-its-show-cause-directive-effective-immediately PHOENIX, July 22, 2024 (GLOBE NEWSWIRE) -- 勒貊勛圖. ("AGI" or the Company) (OTCQB: ASPU), an education technology holding company, announced today that on July 19, 2024, the Company received notification from the Distance Education Accrediting Commission (the Commission) regarding its decision to vacate the show cause directive previously issued to Aspen University (Aspen) on February 1, 2023.

    Upon careful review of the record, the Commission determined that Aspen has made substantial progress toward demonstrating compliance with DEAC standards. Accordingly, the Commission voted to vacate the show cause directive. DEAC requested that Aspen keep the Commission informed on the status of the teach-out of students who are completing the Nursing Pre-licensure program through September 2024 and continue providing monthly and quarterly reports through January 2025.

    The Commission also determined that Aspen is making satisfactory progress in addressing the accreditation standards that remain under a deferred review of the institutions application to renew accreditation. The Commission will proceed to review additional documentation to be submitted by Aspen for consideration at its January 2025 meeting.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including our resumption of growth in Fiscal 2025. 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 availability of cash to support resumption of marketing, the effectiveness of the marketing, the state of the economy during fiscal 2025 and successful resolution of ongoing regulatory matters.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 勒貊勛圖.

    勒貊勛圖. 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. For more information, visit .

    Contact Information:

    Hayden IR
    Kimberly Rogers
    (385) 831-7337


    Source: 勒貊勛圖 Inc. ]]>
    勒貊勛圖. Receives Stockholder Approval to Increase the Number of Shares of Common Stock Authorized /news/detail/460/aspen-group-inc-receives-stockholder-approval-to-increase-the-number-of-shares-of-common-stock-authorized Mon, 10 Jun 2024 16:01:00 -0400 /news/detail/460/aspen-group-inc-receives-stockholder-approval-to-increase-the-number-of-shares-of-common-stock-authorized PHOENIX, June 10, 2024 (GLOBE NEWSWIRE) -- 勒貊勛圖. ("AGI" or the Company) (OTCQB: ASPU), an education technology holding company, today announced that the Company received approval of an amendment to the Certificate of Incorporation of the Company to increase the number of shares of common stock authorized to 85 million shares. Michael Mathews, Chief Executive Officer and Chairman of the Board, presided at the special stockholder meeting earlier today.

    According to Broadridge, the virtual stockholder meeting platform provider, 18,215,780 shares of the Companys common stock were represented at the meeting. Each share was entitled to one vote, establishing a quorum with shares representing approximately 71% of the Companys outstanding voting power, either in person or by proxy. The proposal to approve an amendment to the Certificate of Incorporation (the Charter Amendment) of the Company to increase the number of shares of common stock authorized to 85 million shares was approved by a majority of the votes cast. Specifically, around 17,108,012 votes were in favor, representing approximately 94% of the shares voted on this proposal and approximately 67% of the total outstanding shares of common stock. Approximately 1,053,133 votes were cast against the proposal, and approximately 54,635 shares abstained. The affirmative vote of a majority of the votes cast was required to approve this proposal, which was approved by the Companys stockholders. Abstentions had no impact on the outcome of this proposal.

    Broadridge's information also confirmed that there were enough votes to approve all the proposals presented to the stockholders, rendering a vote on Proposal 2 unnecessary.

    The Charter Amendment was with the Secretary of State of the State of Delaware on June 10, 2024.

    About 勒貊勛圖.

    勒貊勛圖. 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. For more information, visit .

    Contact Information:

    Hayden IR
    Kimberly Rogers
    (385) 831-7337


    Source: 勒貊勛圖 Inc. ]]>
    勒貊勛圖. Amends Debentures /news/detail/459/aspen-group-inc-amends-debentures Thu, 02 May 2024 16:01:00 -0400 /news/detail/459/aspen-group-inc-amends-debentures Converts $10 million of Convertible Debt to Equity

    PHOENIX, May 02, 2024 (GLOBE NEWSWIRE) -- 勒貊勛圖. ("AGI" or the Company) (OTCQB: ASPU), an education technology holding company, today announced it entered into third and fourth amendments to its Senior Secured Debentures issued May 11, 2023 with JGB Management Inc. (JGB). The amendments, among other things, reduce the Companys debt principal repayment obligations by up to nine months, provide for the prepayment of $500,000 of principal utilizing restricted cash, and made the Debentures convertible into common stock at $0.50 per share.

    The Company also announced the signing of an agreement with the holders of $10 million of its convertible notes under which the Company issued the holders a new series of preferred stock convertible into common stock at $0.50 per share. The exchange eliminated associated interest and principal payment obligations.

    The debenture amendments and convertible notes exchange agreement reduce debt service obligations, strengthen the companys balance sheet, and provide it with more financial flexibility to further execute its business operations. For further information, please see the , filed May 2, 2024, on the OTC Markets website.

    Michael Mathews, Chairman and CEO of 勒貊勛圖, stated, "We are pleased to announce the successful execution of amendments to our private placement with JGB. Reducing our near-term debt service obligations allows us to maintain a stable cash position while demonstrating our dedication to servicing our debt. Furthermore, exchanging our convertible notes for preferred stock significantly strengthens the equity position on our balance sheet while also further enhancing cash flow by eliminating related cash interest and principal payments. We believe these changes demonstrate financial responsibility and position us to resume growth in Fiscal 2025.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including our resumption of growth in Fiscal 2025. 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 availability of cash to support resumption of marketing, the effectiveness of the marketing, the state of the economy during fiscal 2025 and successful resolution of ongoing regulatory matters. 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 勒貊勛圖.

    勒貊勛圖. 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. For more information, visit www.aspu.com.

    Contact Information:

    Hayden IR
    Kimberly Rogers
    (385) 831-7337


    Source: 勒貊勛圖 Inc. ]]>
    勒貊勛圖 Reports Revenue of $13.8 Million for Second Quarter Fiscal 2024 /news/detail/458/aspen-group-reports-revenue-of-13-8-million-for-second-quarter-fiscal-2024 Thu, 18 Jan 2024 16:01:00 -0500 /news/detail/458/aspen-group-reports-revenue-of-13-8-million-for-second-quarter-fiscal-2024 Q2 Fiscal 2024 Highlights

    • Gross margin increased by 300 basis points to 63%
    • Operating loss improved 66% to ($0.5) million from ($1.5) million
    • Narrowed net loss to ($1.6) million from ($2.3) million
    • 4th consecutive quarter of positive EBITDA; generated positive cash from operations
    • AGI total enrollment grew by 5% YoY and 34% sequentially; USU enrollment rose by 8% YoY

    NEW YORK, Jan. 18, 2024 (GLOBE NEWSWIRE) -- 勒貊勛圖. (OTCQB: ASPU) (AGI or the "Company"), an education technology holding company, today announced financial results for its second quarter fiscal year 2024 ended October 31, 2023.

    Second Quarter Fiscal Year 2024 Summary Results

    Three Months Ended October 31, Six Months Ended October 31,
    $ in millions, except per share data 2023 2022 2023 2022
    Revenue $ 13.8 $ 17.1 $ 28.5 $ 36.0
    Gross Profit1 $ 8.7 $ 10.2 $ 18.5 $ 18.4
    Gross Margin (%)1 63 % 60 % 65 % 51 %
    Operating Income (Loss) $ (0.5 ) $ (1.5 ) $ (0.2 ) $ (4.7 )
    Net Income (Loss) $ (1.6 ) $ (2.3 ) $ (2.3 ) $ (6.0 )
    Earnings (Loss) per Share $ (0.06 ) $ (0.09 ) $ (0.09 ) $ (0.24 )
    EBITDA2 $ 0.4 $ (0.6 ) $ 1.8 $ (2.8 )
    Adjusted EBITDA2 $ 1.1 $ 0.5 $ 3.0 $ (0.6 )

    _______________________泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭
    1 GAAP gross profit calculation includes marketing and promotional costs, instructional costs and services, and amortization expense of $0.5 million and $0.5 million, and $1.0 million and $1.0 million for the three and six months ended October 31, 2023 and 2022, respectively.

    2 Non-GAAP financial measures. See reconciliations of GAAP to non-GAAP financial measures under Non-GAAPFinancial Measures starting on page 5.

    In the second quarter of fiscal year 2024, we narrowed our net loss by 30% on a year-over-year basis, delivered our fourth consecutive quarter of positive EBITDA and generated cash from operations, said Michael Mathews, Chairman and CEO of AGI. Healthcare industry dynamics continue to create high demand for postgraduate nursing degrees from RNs. Notably, enrollments at Aspen University and United States University increased over the past two quarters with minimal internet marketing spend, a testament to the value of our programs and the strength of our university brands. As we near completion of the Aspen University pre-licensure program teach-out, we remain focused on sustaining positive cash flow from operations. We anticipate the pre-licensure teach-out will be substantially completed in Arizona by the end of January and completed in all other states by mid-year 2024.
    Mr. Mathews concluded, Currently, we are graduating our final, and largest cohorts from the Phoenix pre-licensure program, and I am thrilled to announce that the NCLEX first-time pass rate in Arizona for the fourth calendar quarter ended December 31, 2023 has increased to 89% (N=93/105). The improvement reflects our ongoing commitments to increased program rigor and improved student test preparation.

    Fiscal Q2 2024 Financial and Operational Results (compared to Fiscal Q2 2023)

    Revenue decreased by 19% to $13.8 million compared to $17.1 million. The following table presents the Companys revenue, both per-subsidiary and total:

    Three Months Ended October 31,
    2023 $ Change % Change 2022
    AU $ 7,293,124 $ (3,048,779 ) (29)% $ 10,341,903
    USU 6,535,723 (196,921 ) (3)% 6,732,644
    Revenue $ 13,828,847 $ (3,245,700 ) (19)% $ 17,074,547

    Aspen University's (AU) revenue decline of $3.0 million, or 29%, reflects the enrollment stoppage at the pre-licensure program campuses, which accounted for $2.3 million of the decrease, and lower post-licensure enrollments in prior quarters as a result of the decrease in marketing spend initiated in late Q1 Fiscal 2023. The active student body at AU decreased by 29% year-over-year to 5,679 at October 31, 2023 from 7,973 at October 31, 2022.

    United States University (USU) revenue was down 3% compared to the prior period. MSN-FNP program enrollments decreased in previous quarters due to lower marketing spend initiated in late Q1 Fiscal 2023. Lower enrollments were offset by higher revenue per student driven by more students entering their second year of the MSN-FNP program, which includes clinical rotations, and by tuition increases. The active student body at USU decreased by 8% to 2,733 at October 31, 2023 from 2,984 at October 31, 2022.

    GAAP gross profit decreased 15% to $8.7 million compared to $10.2 million primarily due to lower revenue associated with the teach-out of the pre-licensure program.

    Gross margin was 63% compared to 60%. AU's gross margin was 61% versus 60%, and USU's gross margin was 67% versus 67%. The increase in gross margin is the result of lower marketing spend and lower instructional costs and services associated with the enrollment stoppage in the pre-licensure program.

    AU instructional costs and services represented 31% of AU revenue, and USU instructional costs and services represented 30% of USU revenue. AU marketing and promotional costs represented 3% of AU revenue, and USU marketing and promotional costs represented 2% of USU revenue.

    The following tables present the Companys net income (loss), both per subsidiary and total:

    Three Months Ended October 31, 2023
    Consolidated AGI Corporate AU USU
    Net income (loss) $ (1,611,813 ) $ (3,807,821 ) $ 581,707 $ 1,614,301
    Net loss per share $ (0.06 )


    Three Months Ended October 31, 2022
    Consolidated AGI Corporate AU USU
    Net income (loss) $ (2,293,640 ) $ (5,150,209 ) $ 1,067,885 $ 1,788,684
    Net loss per share $ (0.09 )

    The following tables present the Companys Non-GAAP Financial Measures, both per subsidiary and total. See reconciliations of GAAP to non-GAAP financial measures under Non-GAAPFinancial Measures starting on page 5.

    Three Months Ended October 31, 2023
    Consolidated AGI Corporate AU USU
    EBITDA $419,073 $(2,680,982) $1,339,102 $1,760,953
    EBITDA Margin 3% NM 18% 27%
    Adjusted EBITDA $1,087,205 $(2,487,843) $1,585,674 $1,989,374
    Adjusted EBITDA Margin 8% NM 22% 30%

    _____________________
    NM Not meaningful

    Three Months Ended October 31, 2022
    Consolidated AGI Corporate AU USU
    EBITDA $(603,364) $(4,362,762) $1,852,192 $1,907,206
    EBITDA Margin (4)% NM 18% 28%
    Adjusted EBITDA $537,339 $(3,726,004) $2,114,530 $2,148,813
    Adjusted EBITDA Margin 3% NM 20% 32%

    EBITDA improved by $1.0 million in Fiscal Q2 2024 to $0.4 million from a loss of $0.6 million. The improvement was primarily due to cost controls implemented in conjunction with the two restructurings implemented in Fiscal Q2 2023 and Fiscal Q4 2023 and the reduction of marketing spend to maintenance levels initiated in Fiscal Q1 2023. Included in Fiscal Q2 2024 EBITDA are general and administrative spend reductions of approximately $2.5 million, including $1.5 million related to decreased headcount associated with the restructuring plans. Additionally, marketing spend reductions of approximately $0.5 million are included in Q2 2024 EBITDA. Total EBITDA for the last four fiscal quarters was $2.7 million, as depicted in the table below:

    Q3'23 Q4'23 Q1'24 Q2'24 TTM
    Net loss $ (1,555,040 ) $ (783,954 ) $ (639,438 ) $ (1,611,813 ) $ (4,590,245 )
    EBITDA $ 116,162 $ 812,041 $ 1,344,405 $ 419,073 $ 2,691,681

    _____________________________
    TTM Trailing twelve months

    Operating Metrics

    New Student Enrollments

    Total enrollments for AGI increased 5% from Q2 Fiscal `23 and 34% sequentially, despite the reduction in internet advertising spend across all programs to maintenance levels. The increase in enrollments reflects the demand for postgraduate nursing degrees, our unique and affordable monthly payment plans and students obtaining legacy pricing prior to September 2023 tuition price increases. By the end of Fiscal `24, we anticipate the resumption of marketing spend to a level necessary to provide enrollments needed to resume growth of the student body in fiscal 2025 while allowing for the generation of positive operating cash flow.

    New student enrollments for the past five quarters are shown below:

    Q2'23 Q3'23 Q4'23 Q1'24 Q2'24
    Aspen University 784 695 574 626 808
    USU 506 374 360 389 548
    Total 1,290 1,069 934 1,015 1,356

    New student enrollments, bookings and ARPU for Q224 versus Q223 are shown below (rounding differences may occur):

    First Quarter Bookings1and Average Revenue Per Enrollment (ARPU)1
    Q2'23
    Enrollments
    Q2'23 Bookings1 Q2'24
    Enrollments
    Q2'24 Bookings1 Percent Change
    Total Bookings
    & ARPU
    1
    Aspen University 784 $ 8,450,250 808 $ 6,663,300
    USU 506 9,016,920 548 9,765,360
    Total 1,290 $ 17,467,170 1,356 $ 16,428,660 (6)%
    ARPU $ 13,540 $ 12,116 (11)%

    _____________________
    1 Bookings are defined by multiplying Lifetime Value (LTV) by new student enrollments for each operating unit. ARPU is defined by dividing total Bookings by total new student enrollments for each operating unit.

    Total Active Student Body

    Total active student body for the past five quarters is shown below:

    Q2'23 Q3'23 Q4'23 Q1'24 Q2'24
    Aspen University 7,973 7,232 6,670 6,001 5,679
    USU 2,984 2,724 2,729 2,590 2,733
    Total 10,957 9,956 9,399 8,591 8,412

    Nursing Students

    As of October 31, 2023, 6,902 of 8,412, or 82%, of all active students across both universities are degree-seeking nursing students. Of the students seeking nursing degrees, 6,624 are RNs studying to earn an advanced degree, including 4,192 at Aspen University and 2,432 at USU. The remaining 278 nursing students are enrolled in Aspen Universitys BSN Pre-licensure program in the Phoenix, Austin, Tampa and Nashville metros. The majority of the year-over-year Aspen University nursing student body decrease is a result of the enrollment stoppage and teach out of the pre-licensure program and the reduction in marketing spend to maintenance levels.

    Nursing student body for the past five quarters is shown below.

    Q2'23 Q3'23 Q4'23 Q1'24 Q2'24
    Aspen University 6,640 5,899 5,392 4,766 4,470
    USU 2,752 2,450 2,490 2,349 2,432
    Total 9,392 8,349 7,882 7,115 6,902

    Liquidity

    On October 31, 2023, the Company had unrestricted cash of $1.9 million and restricted cash of $4.1 million. Included in the unrestricted cash balance is $1.5 million related to the Second Amendment to the 15% Debentures under which the purchasers agreed to unrestrict $1.5 million of restricted cash associated with the Debentures. Subsequent to the closing of the quarter, AGI received $1 million from the reduction of the surety bond required by the state of Arizona. Additionally, prior to the end of January 2024, the Company is anticipating a $3.9 million student financial aid reimbursement from the Department of Education (DoE) which will allow the Company to pay down $1.5 million of the Debenture principal. After the Debenture principal repayment, the unrestricted cash balance is projected to exceed $2.0 million. Variability in the unrestricted cash balance is primarily due to the timing of financial aid reimbursements from the DoE under the Heightened Cash Monitoring 2 (HCM2) method of financial aid reimbursement.泭泭 HCM2 requires the Company to make disbursements to students from its own institutional funds, and a request is then submitted to the DoE for reimbursement of those funds.

    Cash provided by operations in Q2 Fiscal `24 was $0.4 million due to the receipt of HCM2 payments, and management believes the Company is positioned to continue generating positive operating cash flows during the remainder of Fiscal 2024 as a result of ongoing HCM2 cash receipts and ongoing cost controls. Cash used in operations for the six months ended October 31, 2023 was $4.2 million. The Company generated approximately $0.8 million of cash from the net loss adjusted for non-cash activities and used approximately $5.0 million of cash from changes in working capital primarily related to the timing of HCM2 payments and increased long-term monthly payment plan accounts receivable related to increased enrollments.

    Additional Information

    For additional information on the financial statements and performance, please refer to the 勒貊勛圖. Quarterly Report for the second quarter of fiscal year 2024 published on the Companys website at , or the OTC Markets 勒貊勛圖 Quote page under the tab.

    Conference Call

    勒貊勛圖. will host a conference call to discuss its second quarter fiscal year 2024 results and business outlook on Thursday, January 18, 2024, at 4:30 pm ET. 勒貊勛圖. will issue a press release reporting results after the market closes on that day. The conference call can be accessed by dialing toll-free (877) 704-4453 (U.S.) or (201) 389-0920 (International), passcode 13743216.

    Subsequent to the call, a transcript of the audio cast will be available from the Companys website at . There will also be a seven-day dial-in replay which can be accessed by dialing toll-free (844) 512-2921 (U.S.) or (412) 317-6671 (International), passcode 13743216.

    Non-GAAP Financial Measures

    This press release includes both financial measures in accordance with 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 companys 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 EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures. We believe that management, analysts, and shareholders benefit from referring to the following non-GAAP financial measures to evaluate and assess our core operating results from period-to-period after removing the impact of items that affect comparability. Our management recognizes that the non-GAAP financial measures have inherent limitations because of the excluded items described below.

    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.

    AGI defines Adjusted EBITDA as EBITDA excluding: (1) bad debt expense; (2) stock-based compensation; (3) severance; and (4) non-recurring charges or income. The following table presents a reconciliation of net income (loss) to EBITDA and Adjusted EBITDA and of net income (loss) margin to the Adjusted EBITDA margin:

    Three Months Ended
    October 31, 2022 January 31, 2023 April 31, 2023 July 31, 2023 October 31, 2023
    Net loss $ (2,293,640 ) $ (1,555,040 ) $ (783,954 ) $ (639,438 ) $ (1,611,813 )
    Interest expense, net 708,705 714,801 639,517 936,460 1,040,720
    Taxes 46,501 37,249 22,677 84,171 40,076
    Depreciation and amortization 935,070 919,152 933,801 963,212 950,090
    EBITDA (603,364 ) 116,162 812,041 1,344,405 419,073
    Bad debt expense 450,000 450,000 450,000 450,000 450,000
    Stock-based compensation 458,336 394,510 387,452 87,449 218,132
    Severance 149,043
    Non-recurring charges - Other 232,367
    Adjusted EBITDA $ 537,339 $ 960,672 $ 1,798,536 $ 1,881,854 $ 1,087,205
    Net loss Margin (13)% (12)%
    Adjusted EBITDA Margin (3)% 8%

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

    Three Months Ended October 31, 2023
    Consolidated AGI Corporate AU USU
    Net income (loss) $ (1,611,813 ) $ (3,807,821 ) $ 581,707 $ 1,614,301
    Interest expense, net 1,040,720 1,040,720
    Taxes 40,076 7,997 18,601 13,478
    Depreciation and amortization 950,090 78,122 738,794 133,174
    EBITDA 419,073 (2,680,982 ) 1,339,102 1,760,953
    Bad debt expense 450,000 225,000 225,000
    Stock-based compensation 218,132 193,139 21,572 3,421
    Adjusted EBITDA $ 1,087,205 $ (2,487,843 ) $ 1,585,674 $ 1,989,374
    Net income (loss) Margin (12)% NM 8% 25%
    Adjusted EBITDA Margin 8% NM 22% 30%

    _____________________
    NM Not meaningful

    Three Months Ended October 31, 2022
    Consolidated AGI Corporate AU USU
    Net income (loss) $ (2,293,640 ) $ (5,150,209 ) $ 1,067,885 $ 1,788,684
    Interest expense, net 708,705 710,237 (1,239 ) (293 )
    Taxes 46,501 8,350 27,776 10,375
    Depreciation and amortization 935,070 68,860 757,770 108,440
    EBITDA (603,364 ) (4,362,762 ) 1,852,192 1,907,206
    Bad debt expense 450,000 225,000 225,000
    Stock-based compensation 458,336 404,391 37,338 16,607
    Non-recurring charges - Other 232,367 232,367
    Adjusted EBITDA $ 537,339 $ (3,726,004 ) $ 2,114,530 $ 2,148,813
    Net income (loss) Margin (13)% NM 10% 27%
    Adjusted EBITDA Margin 3% NM 20% 32%

    Definitions

    Lifetime Value ("LTV") is calculated as the weighted average total amount of tuition and fees paid by every new student that enrolls in the Companys universities, after giving effect to attrition.

    Bookings is defined by multiplying LTV by new student enrollments for each operating unit.

    Average Revenue per Enrollment ("ARPU") is defined by dividing total bookings by total enrollments.

    Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue. We believe Adjusted EBITDA margin is useful for management, analysts and investors as this measure allows for 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 our liquidity, receipt of payment from the U.S. Department of Education, our continuing generating positive cash flow from operations, and our estimates as to Lifetime Value, bookings and ARPU, changes in enrollments and the expected use of proceeds from the drawdown under the revolving credit facility. 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 and for new programs, student attrition, national and local economic factors including the potential impact of COVID-19, influenza and other respiratory viruses on the economy, the effectiveness of our future marketing campaigns, our reliance on third parties which may have differing priorities, the continued government spending on healthcare, any regulatory risks including the reauthorization of Aspen University by its accreditor, continued improvement in NCLEX scores, competition from nursing schools in local markets, the competitive impact from the trend of major non-profit universities using online education and consolidation among our competitors. 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 勒貊勛圖.

    勒貊勛圖. 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泭

    GAAP Financial Statements


    ASPEN GROUP, INC. AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    October 31, 2023 April 30, 2023
    (Unaudited)
    Assets
    Current assets:
    Cash and cash equivalents $ 1,906,332 $ 1,353,635
    Restricted cash 4,100,000 4,370,832
    Accounts receivable, net of allowance of $3,862,420 and $3,506,895, respectively 22,654,843 22,121,237
    Prepaid expenses 629,040 609,900
    Other current assets 4,921,735 3,068,918
    Total current assets 34,211,950 31,524,522
    Property and equipment:
    Computer equipment and hardware 1,643,665 1,655,130
    Furniture and fixtures 2,190,450 2,169,090
    Leasehold improvements 8,052,440 8,055,363
    Instructional equipment 756,568 756,568
    Software 12,180,811 11,648,505
    24,823,934 24,284,656
    Less: accumulated depreciation and amortization (13,765,150 ) (11,922,435 )
    Total property and equipment, net 11,058,784 12,362,221
    Goodwill 5,011,432 5,011,432
    Intangible assets, net 7,900,000 7,900,000
    Courseware, net 360,628 291,438
    Long-term contractual accounts receivable 17,334,007 13,004,428
    Deferred financing costs 73,897
    Operating lease right-of-use assets, net 12,585,726 13,431,074
    Deposits and other assets 594,566 210,536
    Total assets $ 89,057,093 $ 83,809,548


    ASPEN GROUP, INC. AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS (CONTINUED)
    October 31, 2023 April 30, 2023
    (Unaudited)
    Liabilities and Stockholders Equity
    Liabilities:
    Current liabilities:
    Accounts payable $ 2,916,185 $ 2,250,902
    Accrued expenses 2,921,285 2,355,370
    Advances on tuition 2,377,593 2,975,680
    Deferred tuition 4,762,952 2,892,333
    Due to students 2,535,736 2,624,831
    Current portion of long-term debt 4,684,290 5,000,000
    Operating lease obligations, current portion 2,497,946 2,502,810
    Other current liabilities 688,268 109,328
    Total current liabilities 23,384,255 20,711,254
    Long-term debt, net 15,535,401 10,000,000
    Operating lease obligations, less current portion 16,311,827 17,551,512
    Total liabilities 55,231,483 48,262,766
    Commitments and contingencies
    Stockholders equity:
    Preferred stock, $0.001 par value; 1,000,000 shares authorized,
    0 issued and 0 outstanding at October泭31, 2023 and April泭30, 2023
    Common stock, $0.001 par value; 60,000,000 shares authorized,
    25,548,046 issued and 25,548,046 outstanding at October泭31, 2023
    25,592,802 issued and 25,437,316 outstanding at April泭30, 2023 24,061 25,593
    Additional paid-in capital 112,144,189 113,429,992
    Treasury stock (0 shares at October泭31, 2023 and 155,486 shares at April泭30, 2023) (1,817,414 )
    Accumulated deficit (78,342,640 ) (76,091,389 )
    Total stockholders equity 33,825,610 35,546,782
    Total liabilities and stockholders equity $ 89,057,093 $ 83,809,548


    ASPEN GROUP, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)
    Three Months Ended October 31, Six Months Ended October 31,
    2023 2022 2023 2022
    (Unaudited) (Unaudited) (Unaudited) (Unaudited)
    Revenue $ 13,828,847 $ 17,074,547 $ 28,468,719 $ 35,968,460
    Operating expenses:
    Cost of revenue (exclusive of depreciation and amortization shown separately below) 4,584,193 6,347,008 8,977,048 16,552,559
    General and administrative 8,371,546 10,883,118 16,842,424 21,415,138
    Bad debt expense 450,000 450,000 900,000 800,000
    Depreciation and amortization 950,090 935,070 1,913,302 1,856,178
    Total operating expenses 14,355,829 18,615,196 28,632,774 40,623,875
    Operating loss (526,982 ) (1,540,649 ) (164,055 ) (4,655,415 )
    Other income (expense):
    Interest expense (1,040,720 ) (710,372 ) (1,977,201 ) (1,291,665 )
    Other (expense) income, net (4,035 ) 3,882 14,252 15,291
    Total other expense, net (1,044,755 ) (706,490 ) (1,962,949 ) (1,276,374 )
    Loss before income taxes (1,571,737 ) (2,247,139 ) (2,127,004 ) (5,931,789 )
    Income tax expense 40,076 46,501 124,247 76,822
    Net loss $ (1,611,813 ) $ (2,293,640 ) $ (2,251,251 ) $ (6,008,611 )
    Net loss per share - basic and diluted $ (0.06 ) $ (0.09 ) $ (0.09 ) $ (0.24 )
    Weighted average number of common stock outstanding - basic and diluted 25,548,046 25,282,947 25,557,646 25,242,833


    ASPEN GROUP, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
    Six Months Ended October 31,
    2023 2022
    (Unaudited) (Unaudited)
    Cash flows from operating activities:
    Net loss $ (2,251,251 ) $ (6,008,611 )
    Adjustments to reconcile net loss to net cash used in operating activities:
    Bad debt expense 900,000 800,000
    Depreciation and amortization 1,913,302 1,856,178
    Stock-based compensation 305,581 504,666
    Amortization of warrant-based cost 14,000 14,000
    Amortization of deferred financing costs 156,020 269,133
    Amortization of debt discounts 193,020 59,000
    Non-cash lease benefit (399,201 ) (229,809 )
    Common stock issued for services 24,500
    Tenant improvement allowances 418,280
    Changes in operating assets and liabilities:
    Accounts receivable (5,763,185 ) (3,761,463 )
    Prepaid expenses (19,140 ) (242,310 )
    Other current assets (1,852,817 ) (26,956 )
    Deposits and other assets (384,030 ) 41,608
    Accounts payable 665,283 921,112
    Accrued expenses 565,915 326,053
    Due to students (89,095 ) (898,160 )
    Advances on tuition and deferred tuition 1,272,532 2,882,106
    Other current liabilities 578,940 424,685
    Net cash used in operating activities (4,194,126 ) (2,625,988 )
    Cash flows from investing activities:
    Purchases of courseware and accreditation (120,863 ) (48,532 )
    Disbursements for reimbursable leasehold improvements (418,280 )
    Purchases of property and equipment (558,565 ) (842,044 )
    Net cash used in investing activities (679,428 ) (1,308,856 )
    Cash flows from financing activities:
    Proceeds from 15% Senior Secured Debentures, net of original issuance discount 11,000,000
    Repayment of 2018 Credit Facility (5,000,000 )
    Repayment of portion of 15% Senior Secured Debentures (100,000 )
    Payments of deferred financing costs (744,581 ) (60,833 )
    Payment of commitment fee for 2022 Credit Facility (200,000 )
    Proceeds from sale of common stock, net of underwriter costs 9,535
    Net cash provided by (used in) financing activities 5,155,419 (251,298 )


    ASPEN GROUP, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
    (Unaudited)
    Six Months Ended October 31,
    2023 2022
    (Unaudited) (Unaudited)
    Net increase (decrease) in cash, cash equivalents and restricted cash $ 281,865 $ (4,186,142 )
    Cash, cash equivalents and restricted cash at beginning of period 5,724,467 12,916,147
    Cash, cash equivalents and restricted cash at end of period $ 6,006,332 $ 8,730,005
    Supplemental disclosure of cash flow information:
    Cash paid for interest $ 1,639,701 $ 802,167
    Cash paid for income taxes $ 24,525 $ 22,522
    Supplemental disclosure of non-cash investing and financing activities:
    Warrants issued as part of the 15% Senior Secured Debentures $ 154,000 $
    Warrants issued as part of the 15% Senior Secured Debentures as amended $ 56,496 $

    The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the accompanying consolidated balance sheet to the total amounts shown in the accompanying unaudited consolidated statements of cash flows:

    October 31,
    2023 2022
    (Unaudited) (Unaudited)
    Cash and cash equivalents $ 1,906,332 $ 2,306,480
    Restricted cash 4,100,000 6,423,525
    Total cash, cash equivalents and restricted cash $ 6,006,332 $ 8,730,005



    Source: 勒貊勛圖 Inc. ]]>
    勒貊勛圖. to Report Financial Results for the Second Quarter of Fiscal Year 2024 on January 18, 2024 /news/detail/457/aspen-group-inc-to-report-financial-results-for-the-second-quarter-of-fiscal-year-2024-on-january-18-2024 Thu, 04 Jan 2024 08:00:00 -0500 /news/detail/457/aspen-group-inc-to-report-financial-results-for-the-second-quarter-of-fiscal-year-2024-on-january-18-2024 NEW YORK, Jan. 04, 2024 (GLOBE NEWSWIRE) -- 勒貊勛圖. (勒貊勛圖 or AGI) (Nasdaq: ASPU), an education technology holding company, today announced that it will report financial results for the period ended October 31, 2023, on Thursday, January 18, 2024 at 4:30 pm ET.

    Conference Call Information:

    勒貊勛圖. will host a conference call to discuss its second quarter fiscal year 2024 results and business outlook on Thursday, January 18, 2024, at 4:30 pm ET. 勒貊勛圖. will issue a press release reporting results after the market closes on that day. The conference call can be accessed by dialing toll-free (877) 704-4453 (U.S.) or (201) 389-0920 (International), passcode 13743216.

    Subsequent to the call, a transcript of the audio cast will be available from the Companys website at . There will also be a seven day dial-in replay which can be accessed by dialing toll-free (844) 512-2921 (U.S.) or (412) 317-6671 (International), passcode 13743216.

    About 勒貊勛圖.:

    勒貊勛圖. 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. For more information, visit .

    Investor Relations Contact:

    Kimberly Rogers
    Hayden IR
    (385) 831-7337


    Source: 勒貊勛圖 Inc. ]]>
    勒貊勛圖. Announces Up-listing to OTCQB Market /news/detail/456/aspen-group-inc-announces-up-listing-to-otcqb-market Wed, 18 Oct 2023 08:00:00 -0400 /news/detail/456/aspen-group-inc-announces-up-listing-to-otcqb-market NEW YORK, Oct. 18, 2023 (GLOBE NEWSWIRE) -- 勒貊勛圖. ("AGI") (OTCQB: ASPU), an education technology holding company, today announced its successful up-listing from the OTC Pink Market to the OTCQB Venture Market (the "OTCQB") effective for trading October 18, 2023 at the open. 勒貊勛圖 will continue to trade under the ticker symbol "ASPU."

    The OTCQB, operated by OTC Markets Group, Inc., is a premier market designed for developing and entrepreneurial companies in the United States and abroad committed to providing investors with improved market visibility to enhance trading liquidity. To be eligible for trading on the OTCQB, companies must be current in their financial reporting with the Securities and Exchange Commission (the "SEC") or OTC Markets Group, Inc., pass a minimum bid price test, maintain audited financials through a PCAOB registered firm, and undergo company verification and management certification on an annual basis.

    The OTCQB is operated by the OTC Markets Group and recognized by the SEC as an established public market providing data that investors need to analyze, value and trade securities. Being part of the OTC Markets Group will assist in diversifying 勒貊勛圖's shareholder base worldwide.

    Michael Mathews, Chairman and CEO of 勒貊勛圖, stated, "We are pleased to have completed our up-listing to the OTCQB. With additional compliance and quality standards, the OTCQB provides investors with improved visibility to enhance trading decisions. We believe this achievement will increase the exposure of 勒貊勛圖 to a broader range of investors."

    About 勒貊勛圖.

    勒貊勛圖. 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. For more information, visit .

    Contact Information:

    Hayden IR
    Kimberly Rogers
    (385) 831-7337


    Source: 勒貊勛圖 Inc. ]]>
    勒貊勛圖 Reports Revenue of $14.6 Million and Operating Income of $0.4 million for First Quarter Fiscal 2024 /news/detail/455/aspen-group-reports-revenue-of-14-6-million-and-operating-income-of-0-4-million-for-first-quarter-fiscal-2024 Fri, 29 Sep 2023 14:14:00 -0400 /news/detail/455/aspen-group-reports-revenue-of-14-6-million-and-operating-income-of-0-4-million-for-first-quarter-fiscal-2024
  • Reduces net loss to $(0.6) million
  • Third consecutive quarter of positive EBITDA; increased to $1.3 million, or 9% margin, in Q124
  • Gross margin increased to 67% from 43% in the year ago quarter as a result of implementation of restructuring plans
  • New Student Enrollments for Aspen University and USU increased sequentially, reflecting increasing market demand for online nursing programs
  • Secured $12.4 million debt financing in Q124 before discount, fees and other financing expenses
  • NEW YORK, Sept. 29, 2023 (GLOBE NEWSWIRE) -- 勒貊勛圖. (OTC Pink: ASPU) (AGI or the Company), an education technology holding company, today announced financial results for its first quarter fiscal year 2024 ended July 31, 2023.

    First Quarter Fiscal Year 2024 Summary Results Three Months Ended July 31,
    $ in millions, except per share data 2023 2022
    Revenue $ 14.6 $ 18.9
    Gross Profit1 $ 9.8 $ 8.2
    Gross Margin (%)1 67 % 43 %
    Operating Income (Loss) $ 0.4 $ (3.1 )
    Net Income (Loss) $ (0.6 ) $ (3.7 )
    Earnings (Loss) per Share $ (0.03 ) $ (0.15 )
    EBITDA2 $ 1.3 $ (2.2 )
    Adjusted EBITDA2 $ 1.9 $ (1.2 )

    _______________________泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭泭
    1 GAAP gross profit calculation includes marketing and promotional costs, instructional costs and services, and amortization expense of $0.5 million and $0.5 million for the three months ended July 31, 2023 and 2022, respectively.

    2 Non-GAAP financial measures. See reconciliations of GAAP to non-GAAP financial measures under "Non-GAAPFinancial Measures" starting on page 5.


    勒貊勛圖 has made remarkable progress on the bottom line by delivering our third consecutive quarter of reduced net loss, resulting in record positive EBITDA of $1.3 million in the fiscal first quarter, said Michael Mathews, Chairman and CEO of AGI. We continue to position our operational business units for sustainable growth as we wind down our pre-licensure campuses. Our near-term strategy focuses on revitalizing our post-licensure nursing programs by working through our existing pipeline and benefiting from the strong demand for these degrees. In addition, enrollments in the quarter increased sequentially at both Aspen University and USU, and we are anticipating record fall post-licensure nursing enrollments for both universities. Our near-term financial goals are to maintain positive EBITDA and neutral to slightly positive cash flow from operations during the remainder of fiscal year 2024.

    Fiscal Q1 2024 Financial and Operational Results (compared to Fiscal Q1 2023)

    Revenue decreased 23% to $14.6 million compared to $18.9 million. The following table presents the Companys revenue, both per subsidiary and total:

    Three Months Ended July 31,
    2023 $ Change % Change 2022
    AU $ 7,722,925 $ (4,225,169 ) (35)% $ 11,948,094
    USU 6,916,947 (28,872 ) % 6,945,819
    Revenue $ 14,639,872 $ (4,254,041 ) (23)% $ 18,893,913


    Aspen University (AU) revenue decline of $4.2 million or 35% reflects the enrollment stoppage at the pre-licensure program campuses, which accounted for $2.8 million of the decrease, and lower post-licensure enrollments from the effect of decreased marketing spend initiated late in Q1 Fiscal 2023. The active student body at AU decreased by 34% year-over-year to 6,001 at July泭31, 2023 from 9,133 at July泭31, 2022.

    United States University (USU) revenue was flat compared to the prior period. MSN-FNP program enrollments decreased due to lower marketing spend initiated in late Q1 Fiscal 2023. Lower enrollments were offset by higher revenue per student driven by more students entering their second year of the MSN-FNP program, which includes clinical rotations. The active student body at USU decreased by 11% to 2,590 at July泭31, 2023 from 2,915 at July泭31, 2022.

    GAAP gross profit increased 19% to $9.8 million compared to $8.2 million due primarily to lower cost of revenue associated with the decrease in marketing spend beginning in Q1 Fiscal 2023. Gross margin was 67% compared to 43%. AU gross margin was 62% versus 39%, and USU gross margin was 72% versus 56%.

    AU instructional costs and services represented 33% of AU revenue, and USU instructional costs and services represented 27% of USU revenue. AU marketing and promotional costs represented less than 1% of AU revenue, and USU marketing and promotional costs represented less than 1% of USU revenue.

    The following tables present the Companys net (loss) income, both per subsidiary and total:

    Three Months Ended July 31, 2023
    Consolidated AGI Corporate AU USU
    Net income (loss) $ (639,438 ) $ (3,805,601 ) $ 646,376 $ 2,519,787
    Net loss per share $ (0.03 )


    Three Months Ended July 31, 2022
    Consolidated AGI Corporate AU USU
    Net income (loss) $ (3,714,971 ) $ (4,898,587 ) $ (209,429 ) $ 1,393,045
    Net loss per share $ (0.15 )


    The following tables present the Companys Non-GAAP measures, both per subsidiary and total. See reconciliations of GAAP to non-GAAP financial measures under Non-GAAPFinancial Measures starting on page 5.

    Three Months Ended July 31, 2023
    Consolidated AGI Corporate AU USU
    EBITDA $1,344,405 $(2,738,712) $1,427,102 $2,656,015
    EBITDA Margin 9% NM 18% 38%
    Adjusted EBITDA $1,881,854 $(2,691,840) $1,685,160 $2,888,534
    Adjusted EBITDA Margin 13% NM 22% 42%

    ________________________________
    NM - Not meaningful

    Three Months Ended July 31, 2022
    Consolidated AGI Corporate AU USU
    EBITDA $(2,182,962) $(4,242,266) $549,458 $1,509,846
    EBITDA Margin (12)% NM 5% 22%
    Adjusted EBITDA $(1,176,700) $(3,657,664) $826,382 $1,654,582
    Adjusted EBITDA Margin (6)% NM 7% 24%


    EBITDA improved by $3.5 million in Fiscal Q1 2024 to $1.3 million from a loss of $2.2 million. The improvement was primarily due to cost controls implemented in conjunction with the two restructurings implemented in Fiscal Q2 2023 and Fiscal Q4 2023 and the reduction of marketing spend to maintenance levels initiated in Fiscal Q1 2023. Included in Fiscal Q1 2024 EBITDA are general and administrative spend reductions of approximately $1.5 million related to decreased headcount associated with the restructuring plans and marketing spend reductions of $4.5 million. Fiscal Q1 2024 is the third consecutive quarter of increased positive EBITDA. EBITDA for the last four fiscal quarters is as follows:

    Q2'23 Q3'23 Q4'23 Q1'24
    Net loss $ (2,293,640 ) $ (1,555,040 ) $ (783,954 ) $ (639,438 )
    EBITDA $ (603,364 ) $ 116,162 $ 812,041 $ 1,344,405


    Operating Metrics

    New Student Enrollments

    New student enrollments at AU decreased 28% year-over-year and at USU decreased 13% year-over-year reflecting lower marketing advertising spend across all programs to maintenance levels. We anticipate the resumption of marketing spend in the second half of fiscal 2024 at a level which management believes will be necessary to provide enrollments needed to grow the student body and allow for the generation of positive operating cash flow.

    New student enrollments for the past five quarters are shown below:

    Q1'23 Q2'23 Q3'23 Q4'23 Q1'24
    Aspen University 868 784 695 574 626
    USU 447 506 374 360 389
    Total 1,315 1,290 1,069 934 1,015

    New student enrollments, bookings and ARPU for Q124 versus Q123 are shown below (rounding differences may occur):

    First Quarter Bookings1 and Average Revenue Per Enrollment (ARPU)1
    Q1'23 Enrollments Q3'22 Bookings 1 Q1'24 Enrollments Q3'23 Bookings 1 Percent Change Total Bookings & ARPU 1
    Aspen University 868 $ 10,882,200 626 $ 5,115,600
    USU 447 $ 7,965,540 389 $ 6,931,980
    Total 1,315 $ 18,847,740 1,015 $ 12,047,580 (36)%
    ARPU $ 14,333 $ 11,870 (17)%

    _____________________
    1 Bookings are defined by multiplying LTV by new student enrollments for each operating unit. ARPU is defined by dividing total Bookings by total new student enrollments for each operating unit.


    Total Active Student Body

    Total active student body for the past five quarters is shown below:

    Q1'23 Q2'23 Q3'23 Q4'23 Q1'24
    Aspen University 9,133 7,973 7,232 6,670 6,001
    USU 2,915 2,984 2,724 2,729 2,590
    Total 12,048 10,957 9,956 9,399 8,591


    Nursing Students

    As of July泭31, 2023, 7,115 of 8,591 or 83% of all active students across both universities are degree-seeking nursing students. Of the students seeking nursing degrees, 6,765 are RNs studying to earn an advanced degree, including 4,416 at Aspen University and 2,349 at USU. The remaining 350 nursing students are enrolled in Aspen Universitys BSN Pre-licensure program in the Phoenix, Austin, Tampa and Nashville metros. The majority of the year-over-year Aspen University nursing student body decrease is a result of the enrollment stoppage and teach out of the pre-licensure program and the reduction in marketing spend to maintenance levels.

    Nursing student body for the past five quarters is shown below:

    Q1'23 Q2'23 Q3'23 Q4'23 Q1'24
    Aspen University 7,686 6,640 5,899 5,392 4,766
    USU 2,708 2,752 2,450 2,490 2,349
    Total 10,394 9,392 8,349 7,882 7,115


    Liquidity

    At July 31, 2023, the Company had unrestricted cash of $0.2 million and restricted cash of $5.8 million. As of September 28, 2023, the Companys unrestricted cash balance had increased to $1.9 million. Variability in our unrestricted cash balance is due to the timing of financial aid reimbursements from the DoE.

    On February 8, 2023, AU received notification from the DoE that effective February 7, 2023 the DoE had placed AU on the HCM2 method of financial aid reimbursement. Under the HCM2 method of payment, AU may continue to obligate funds under the federal student financial assistance programs. A school placed on HCM2 no longer receives funds under the Advance Payment Method. After a school on HCM2 makes disbursements to students from its own institutional funds, a request must be submitted to the DoE for reimbursement of those funds. The transition to HCM2 created variability in our unrestricted cash balance because receipt of the first payment under the program is generally delayed due to extended DoE review time.泭 In August 2023 and September 2023, we received the second and third reimbursement payments under HCM2 of approximately $2.9 million and $1.9 million, respectively, which substantially increased our unrestricted cash balance.泭Consequently, now that AU has received three payments under HCM2, we have experienced shorter review times.

    On May 12, 2023, in order to provide liquidity for the transition to HCM2, the Company entered into a Securities Purchase Agreement pursuant to which it sold approximately $12.4 million in the aggregate principal amount of 15% Senior Secured Debentures (Debentures) and five-year warrants for total gross proceeds of approximately $11 million, representing an 11% original issue discount on the Debentures, before deducting offering fees and expenses. Approximately $5 million of the proceeds from the offering were used to repay outstanding borrowings under the Companys prior credit facility dated November 5, 2018, $2.0 million is required to be kept as restricted cash, and after paying fees and expenses associated with this offering, the remaining proceeds are being used for working capital needs.

    Cash flow used in operations for the quarter ended July 31, 2023 was $4.6 million. We generated approximately $0.8 million of cash from our net loss adjusted for non-cash activities, and we used approximately $5.4 million of cash from changes in working capital primarily related to the timing of HCM2 payments and increased long-term monthly payment plan accounts receivable. The use of cash from working capital changes is expected to change to a source of cash in our fiscal second quarter due to the receipt of the second, third and possibly the fourth HCM2 payments. Management believes the Company is positioned to generate positive operating cash flow during the remainder of Fiscal 2024 as a result of ongoing cost controls and the two restructuring plans implemented in Fiscal 2023.

    Additional Information

    For additional information on the financial statements and performance, please refer to the 勒貊勛圖. Quarterly Report for the first quarter of fiscal year 2024 published on the Companys website at www.aspu.com, on the All OTC Filings page under Financial Info.

    Non-GAAP Financial Measures

    This press release includes both financial measures in accordance with 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 companys 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 EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures. We believe that management, analysts, and shareholders benefit from referring to the following non-GAAP financial measures to evaluate and assess our core operating results from period-to-period after removing the impact of items that affect comparability. Our management recognizes that the non-GAAP financial measures have inherent limitations because of the excluded items described below.

    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.

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

    Three Months Ended
    July 31, 2022 October 31, 2022 January 31, 2023 April 31, 2023 July 31, 2023
    Net loss $ (3,714,971 ) $ (2,293,640 ) $ (1,555,040 ) $ (783,954 ) $ (639,438 )
    Interest expense, net 580,580 708,705 714,801 639,517 936,460
    Taxes 30,321 46,501 37,249 22,677 84,171
    Depreciation and amortization 921,108 935,070 919,152 933,801 963,212
    EBITDA (2,182,962 ) (603,364 ) 116,162 812,041 1,344,405
    Bad debt expense 350,000 450,000 450,000 450,000 450,000
    Stock-based compensation 46,330 458,336 394,510 387,452 87,449
    Severance 125,000 149,043
    Non-recurring charges (income) - Other 484,932 232,367
    Adjusted EBITDA $ (1,176,700 ) $ 537,339 $ 960,672 $ 1,798,536 $ 1,881,854
    Net loss Margin (20)% (4)%
    Adjusted EBITDA Margin (6)% 13%


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

    Three Months Ended July 31, 2023
    Consolidated AGI Corporate AU USU
    Net income (loss) $ (639,438 ) $ (3,805,601 ) $ 646,376 $ 2,519,787
    Interest expense, net 936,460 936,481 (6 ) (15 )
    Taxes 84,171 54,766 19,425 9,980
    Depreciation and amortization 963,212 75,642 761,307 126,263
    EBITDA 1,344,405 (2,738,712 ) 1,427,102 2,656,015
    Bad debt expense 450,000 225,000 225,000
    Stock-based compensation 87,449 46,872 33,058 7,519
    Adjusted EBITDA $ 1,881,854 $ (2,691,840 ) $ 1,685,160 $ 2,888,534
    Net income (loss) Margin (4)% NM 8% 36%
    Adjusted EBITDA Margin 13% NM 22% 42%

    ________________________________
    NM - Not meaningful

    Three Months Ended July 31, 2022
    Consolidated AGI Corporate AU USU
    Net income (loss) $ (3,714,971 ) $ (4,898,587 ) $ (209,429 ) $ 1,393,045
    Interest expense, net 580,580 581,279 (578 ) (121 )
    Taxes 30,321 5,600 14,721 10,000
    Depreciation and amortization 921,108 69,442 744,744 106,922
    EBITDA (2,182,962 ) (4,242,266 ) 549,458 1,509,846
    Bad debt expense 350,000 225,000 125,000
    Stock-based compensation 46,330 (25,330 ) 51,924 19,736
    Severance 125,000 125,000
    Non-recurring charges - Other 484,932 484,932
    Adjusted EBITDA $ (1,176,700 ) $ (3,657,664 ) $ 826,382 $ 1,654,582
    Net income (loss) Margin (20)% NM (2)% 20%
    Adjusted EBITDA Margin (6)% NM 7% 24%


    Definitions

    Lifetime Value ("LTV") is the weighted average total amount of tuition and fees paid by every new student that enrolls in the Companys universities, after giving effect to attrition.

    Bookings defined by multiplying LTV by new student enrollments for each operating unit.

    Average Revenue per Enrollment ("ARPU") defined by dividing total Bookings by total enrollments for each operating unit.

    Adjusted EBITDA Margin defined as Adjusted EBITDA divided by revenue. We believe Adjusted EBITDA margin is useful for management, analysts and investors as this measure allows for 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 statements regarding our perceived positioning for substantial growth, anticipated trends including with respect to future demand for nurses, anticipated record fall enrollments for both universities, our goal to maintain positive EBITDA and improved cash flow, the planned marketing spend in fiscal year 2024, and our liquidity. All statements other than statements of historical facts contained in this report, including statements regarding our future financial position, liquidity, business strategy and plans and objectives of management for future operations, are forward-looking statements. 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, uncertainties and risks that may cause actual results to differ materially from these forward-looking statements include, without limitation, our ability to enroll new students and generate revenue given the prior sharp reduction in marketing, the continued demand of nursing students for our programs, our ability to successfully resolve the regulatory matters involving agencies in Arizona and elsewhere, our ability to maintain and grow enrollments in our active programs with increased marketing, the continued attraction of online learning as the COVID-19 pandemic has receded, student attrition, national and local economic factors including a possible recession and increasing unemployment, uncertainties arising from high inflation, Federal Reserve interest rate increases, the banking crisis, and the Russian invasion of Ukraine including its effect on the U.S. economy, the competitive impact from the trend of major non-profit universities using online education and consolidation among our competitors, the timing of DOE payments, regulatory risks including those related to the Arizona Board of Nursing actions which caused us to agree to teach out our pre-licensure students and the myriad of risks which may affect our ability to maintain our operations, advance our business plan, manage our costs, grow our revenue, and repay our obligations as and when they come due. Further information on the risks and uncertainties affecting our business is contained in our filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended April 30, 2022. However, we no longer file reports with the SEC, and we undertake no obligation to publicly update or revise any forward-looking statements, nor the risks and uncertainties which qualify them, whether as the result of new information, future events or otherwise. Investors are also urged to review our periodic reports made with the OTC Markets Group, Inc., which we also make available on our corporate website.

    About 勒貊勛圖.

    勒貊勛圖. 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泭


    GAAP Financial Statements

    ASPEN GROUP, INC. AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    July 31, 2023 April 30, 2023
    (Unaudited)
    Assets
    Current assets:
    Cash and cash equivalents $ 217,370 $ 1,353,635
    Restricted cash 5,839,400 4,370,832
    Accounts receivable, net of allowance of $3,554,460 and $3,506,895, respectively 21,820,749 22,121,237
    Prepaid expenses 644,023 609,900
    Other current assets 6,279,155 3,068,918
    Total current assets 34,800,697 31,524,522
    Property and equipment:
    Computer equipment and hardware 1,655,130 1,655,130
    Furniture and fixtures 2,190,450 2,169,090
    Leasehold improvements 8,055,363 8,055,363
    Instructional equipment 756,568 756,568
    Software 11,913,878 11,648,505
    24,571,389 24,284,656
    Less: accumulated depreciation and amortization (12,855,415 ) (11,922,435 )
    Total property and equipment, net 11,715,974 12,362,221
    Goodwill 5,011,432 5,011,432
    Intangible assets, net 7,900,000 7,900,000
    Courseware, net 294,125 291,438
    Long-term contractual accounts receivable 15,770,141 13,004,428
    Deferred financing costs 148,867 73,897
    Operating lease right-of-use assets, net 13,017,763 13,431,074
    Deposits and other assets 781,550 210,536