Aspen Group Reports Positive Cash from Operations Fiscal Year-to-Date
Aspen Group Inc. (ASPU) reported Q2 fiscal 2025 results with revenue of $11.5 million, down 17% year-over-year. The company's gross margin improved to 71% from 63%, while reporting a net loss of $(4.2) million, primarily due to a $(4.9) million one-time non-cash lease impairment charge. Adjusted EBITDA improved by 42% year-over-year.
The company's active student body decreased 24% to 6,387, with Aspen University's enrollment down 33% and USU's down 6%. Despite reduced marketing spend, total new student enrollments increased 15% sequentially. The company ended Q2 with $0.8 million in unrestricted cash and transitioned from HCM2 to HCM1 status for receiving student financial aid payments, which should improve cash flow.
Aspen Group Inc. (ASPU) ha riportato i risultati del secondo trimestre dell'anno fiscale 2025 con un fatturato di 11,5 milioni di dollari, in calo del 17% rispetto all'anno precedente. Il margine lordo dell'azienda è migliorato al 71%, rispetto al 63%, mentre è stata registrata una perdita netta di $(4,2) milioni, principalmente a causa di un addebito una tantum non monetario per degrado di leasing di $(4,9) milioni. L'EBITDA rettificato è aumentato del 42% rispetto all'anno precedente.
Il numero totale di studenti attivi è diminuito del 24%, scendendo a 6.387, con un calo del 33% nell'iscrizione di Aspen University e un calo del 6% in USU. Nonostante una spesa di marketing ridotta, le nuove iscrizioni sono aumentate del 15% rispetto al periodo precedente. L'azienda ha concluso il secondo trimestre con 0,8 milioni di dollari in contanti non vincolati ed è passata dallo stato HCM2 a HCM1 per ricevere pagamenti di aiuti finanziari per studenti, il che dovrebbe migliorare il flusso di cassa.
Aspen Group Inc. (ASPU) informó los resultados del segundo trimestre del año fiscal 2025 con ingresos de 11,5 millones de dólares, una disminución del 17% en comparación con el año anterior. El margen bruto de la empresa mejoró al 71% desde el 63%, mientras que se reportó una pérdida neta de $(4,2) millones, principalmente debido a un cargo no monetario único por deterioro de arrendamiento de $(4,9) millones. El EBITDA ajustado mejoró un 42% en comparación con el año anterior.
El número de estudiantes activos disminuyó un 24% a 6.387, con la matrícula de la Universidad Aspen bajando un 33% y la de USU un 6%. A pesar de la reducción en el gasto de marketing, las nuevas inscripciones de estudiantes aumentaron un 15% secuencialmente. La empresa terminó el segundo trimestre con 0,8 millones de dólares en efectivo sin restricciones y pasó de la condición HCM2 a HCM1 para recibir pagos de ayudas financieras para estudiantes, lo que debería mejorar el flujo de efectivo.
Aspen Group Inc. (ASPU)는 2025 회계연도 2분기 실적을 보고하며 수익이 1150만 달러로 전년 대비 17% 감소했다고 발표했습니다. 회사의 총 마진은 63%에서 71%로 개선되었으며, $(4.2) 백만의 순손실이 보고되었습니다. 이 손실은 주로 $(4.9) 백만의 일회성 비현금 임대 손상비용 때문입니다. 조정된 EBITDA는 전년 대비 42% 증가하였습니다.
학생 수는 6,387명으로 24% 감소했으며, Aspen University의 등록 학생 수는 33%, USU의 등록 학생 수는 6% 감소했습니다. 마케팅 지출이 줄어들었음에도 불구하고, 신규 학생 등록은 전분기 대비 15% 증가했습니다. 회사는 2분기를 마치며 80만 달러의 무제한 현금을 보유하고 있으며, 학생 재정 지원금을 수령하기 위해 HCM2에서 HCM1 상태로 전환하였습니다. 이는 현금 흐름 개선에 기여할 것입니다.
Aspen Group Inc. (ASPU) a annoncé les résultats du deuxième trimestre de l'exercice 2025, avec des revenus de 11,5 millions de dollars, en baisse de 17% par rapport à l'année précédente. La marge brute de l'entreprise s'est améliorée à 71%, contre 63%, tout en faisant état d'une perte nette de $(4,2) millions, principalement en raison d'une charge non monétaire unique liée à un amortissement de location de $(4,9) millions. L'EBITDA ajusté a augmenté de 42% par rapport à l'année précédente.
Le nombre d'étudiants actifs a diminué de 24% pour atteindre 6.387, avec une baisse de 33% des inscriptions à l'Université Aspen et de 6% à l'USU. Malgré une réduction des dépenses de marketing, le nombre total de nouvelles inscriptions d'étudiants a augmenté de 15% par rapport au trimestre précédent. L'entreprise a terminé le deuxième trimestre avec 0,8 million de dollars en liquidités non restreintes et a changé de statut de HCM2 à HCM1 pour percevoir les paiements d'aides financières pour les étudiants, ce qui devrait améliorer le flux de trésorerie.
Aspen Group Inc. (ASPU) hat die Ergebnisse des zweiten Quartals des Geschäftsjahres 2025 bekannt gegeben, mit einem Umsatz von 11,5 Millionen Dollar, was einem Rückgang von 17% im Vergleich zum Vorjahr entspricht. Die Bruttomarge des Unternehmens verbesserte sich auf 71% von 63%, während ein Nettoverlust von $(4,2) Millionen gemeldet wurde, hauptsächlich aufgrund eines einmaligen nicht zahlungswirksamen Mietwertminderungsaufwands in Höhe von $(4,9) Millionen. Das bereinigte EBITDA stieg im Vergleich zum Vorjahr um 42%.
Die aktive Studentenzahl sank um 24% auf 6.387, wobei die Einschreibung an der Aspen University um 33% und an der USU um 6% zurückging. Trotz reduzierter Marketingausgaben stiegen die Neuanmeldungen um 15% im Vergleich zum Vorquartal. Das Unternehmen schloss das zweite Quartal mit 0,8 Millionen Dollar an unbeschränkten Zahlungsmitteln ab und wechselte vom HCM2-Status zum HCM1-Status für den Erhalt von finanziellen Hilfszahlungen für Studenten, was den Cashflow verbessern sollte.
- Gross margin increased to 71% from 63%
- Adjusted EBITDA improved 42% year-over-year
- Sequential enrollment growth of 15% despite reduced marketing spend
- Transition to HCM1 status improving financial aid payment efficiency
- Implemented restructuring to reduce annual operating expenses by $1.5 million
- Revenue declined 17% to $11.5 million
- Net loss of $(4.2) million including $(4.9) million impairment charge
- Total active student body decreased 24% year-over-year
- Low cash balance of $0.8 million at quarter end
Q2 Fiscal 2025 Highlights
- Reports revenue of
$11.5 Million - Gross margin increased to
71% from63% - 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) -- Aspen Group, Inc. (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 | $ | 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 |
_______________________
1 GAAP gross profit calculation includes marketing and promotional costs, instructional costs and services, and amortization expense of
2 Net income (loss) in fiscal Q2 2025 and year-to-date fiscal 2025 includes a noncash impairment charge of
3 Non-GAAP financial measures. See reconciliations of GAAP to non-GAAP financial measures under “Non-GAAP–Financial 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 USU’s instructional operations. Additionally, restructuring efforts reduced general and administrative expenses by
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
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 | 6,535,723 | ||||||||
Revenue | $ | 11,459,779 | $ | (2,369,068 | ) | (17)% | $ | 13,828,847 |
Aspen University's (“AU”) revenue decline of
United States University (“USU”) revenue was up
GAAP gross profit decreased
AU instructional costs and services represented
In Fiscal Q2 2025 and year-to-date Fiscal 2025, our bottom line was materially impacted by a
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 Company’s 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 | $ | (1,611,813 | ) | $ | (3,807,821 | ) | $ | 581,707 | $ | 1,614,301 | |||
Net loss per share available to common stockholders | $ | (0.06 | ) |
The following tables present the Company’s Non-GAAP Financial Measures, both per subsidiary and total. See reconciliations of GAAP to non-GAAP financial measures under “Non-GAAP–Financial Measures” starting on page 5.
Three Months Ended October 31, 2024 | ||||||||
Consolidated | AGI Corporate | AU | USU | |||||
EBITDA | ||||||||
EBITDA Margin | (26)% | NM | (99)% | |||||
Adjusted EBITDA | ||||||||
Adjusted EBITDA Margin | NM |
Three Months Ended October 31, 2023 | ||||||||
Consolidated | AGI Corporate | AU | USU | |||||
EBITDA | ||||||||
EBITDA Margin | NM | |||||||
Adjusted EBITDA | ||||||||
Adjusted EBITDA Margin | NM |
Adjusted EBITDA improved by
Operating Metrics
New Student Enrollments
Total enrollments for AGI decreased
New student enrollments at AU decreased
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
AGI’s active degree-seeking student body, including AU and USU, declined
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
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 company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternatives to net income (loss), operating income (loss), and cash flow from operating activities, liquidity or any other financial measures. They may not be indicative of the historical operating results of AGI nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP.
Our management uses and relies on 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 | $ | (4,146,365 | ) | $ | (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 | )% | (12 | )% | ||||
Adjusted EBITDA Margin | 14 | % | 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, 2024 | ||||||||||||||
Consolidated | AGI Corporate | AU | USU | |||||||||||
Net income (loss) | $ | (4,146,365 | ) | $ | (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 | (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 | 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 | % |
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 Aspen Group, Inc.
Aspen Group, Inc. is an education technology holding company that leverages its infrastructure and expertise to allow its two universities, Aspen University and United States University, to deliver on the vision of making college affordable again.
Investor Relations Contact
Kim Rogers
Managing Director
Hayden IR
385-831-7337
Kim@HaydenIR.com
GAAP Financial Statements
ASPEN GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | |||||||
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 | 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, | |||||||
10,000 issued and 10,000 outstanding at October 31, 2024 and April 30, 2024 | 10 | 10 | |||||
Common stock, | |||||||
26,959,681 issued and 26,959,681 outstanding at October 31, 2024 | |||||||
25,701,603 issued and 25,701,603 outstanding at April 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 | ) | (120,863 | ) | |||
Purchases of property and equipment | (565,068 | ) | (558,565 | ) | |||
Net cash used in investing activities | (598,178 | ) | (679,428 | ) | |||
Cash flows from financing activities: | |||||||
Repayment of portion of | (721,066 | ) | (100,000 | ) | |||
Proceeds from | — | 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 | $ | (1,453,645 | ) | $ | 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 | $ | — | 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 |
FAQ
What was ASPU's revenue and gross margin in Q2 fiscal 2025?
How much did ASPU's student enrollment decline in Q2 2025?
What caused ASPU's $4.2 million net loss in Q2 2025?