I noticed I have 27 boardmarks, why are you bm me...... I am a newb!
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phenomenal mention on this previously Rig.
some volume today..... Man oh Man do I wish I had some shares from .15 cents
still watching?
AS_PU .18 x.189
For profit school have taken a beating this year. This school has had some strong growth in terms of amount of students enrolling for Nursing programs.
Stocktrade posted some excellent information:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=118499574
Mon, 09 Nov 2015 21:50:21 GMT ~ Aspen Group to Present at the LD Micro Main Event 2015
[GlobeNewswire] - NEW YORK, Nov. 09, 2015-- Aspen Group, Inc., parent of Aspen University, a nationally accredited online postsecondary education company, announced today that Chairman and CEO Michael Mathews will present ...
read full: http://finance.yahoo.com/news/aspen-group-present-ld-micro-215021057.html
*********************************************************
Thu, 05 Nov 2015 13:02:12 GMT ~ ASPEN GROUP, INC. Files SEC form 8-K, Regulation FD Disclosure, Financial Statements and Exhibits
read full: http://biz.yahoo.com/e/151105/aspu8-k.html
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Wed, 04 Nov 2015 13:00:00 GMT ~ Aspen University Announces New Student Enrollments Rise 110% YoY
[GlobeNewswire] - Preliminary Fiscal Second Quarter Revenue Increases Over 54% YoY. Aspen’ s Degree-Seeking Student Body Hits 4,000; Forecasting 5,000 Students by Fiscal Year End, April 30, 2016. NEW YORK, Nov. 04, 2015-- ...
read full: http://finance.yahoo.com/news/aspen-university-announces-student-enrollments-130000195.html
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Tue, 06 Oct 2015 12:00:00 GMT ~ Aspen University’s Debtless Education Solution Exceeds a Majority of Its Tuition Revenues Only 18 Months Following Inception
[GlobeNewswire] - 52% of Tuition Revenues in September Paid Through Monthly Payment Methods. Recurring Monthly Tuition Billing Now Exceeds $275,000. NEW YORK, Oct. 06, 2015-- Aspen Group, Inc., a nationally accredited online ...
read full: http://finance.yahoo.com/news/aspen-university-debtless-education-solution-120000805.html
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Wed, 16 Sep 2015 17:04:05 GMT ~ ASPEN GROUP, INC. Financials
read full: http://finance.yahoo.com/q/is?s=aspu
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$ASPU charts
basic chart ## source: stockcharts.com
basic chart ## source: stockscores.com
big daily chart ## source: stockcharts.com
big weekly chart ## source: stockcharts.com
$ASPU company information
## source: otcmarkets.com
Link: http://www.otcmarkets.com/stock/ASPU/company-info
Ticker: $ASPU
OTC Market Place: OTCQB
CIK code: 0001487198
Company name: Aspen Group Inc.
Company website: http://www.aspen.edu
Incorporated In: DE, USA
Business Description: Aspen Group, Inc. owns Aspen University Inc., a nationally accredited, online post-secondary education company established in 1987. Aspen University's mission is to become an institution of choice for adult learners by offering cost-effective, comprehensive and relevant online education. We are dedicated to helping our students exceed their personal and professional objectives in a socially conscious and economically sensible way. One of the key differences between Aspen University and other publicly-traded, exclusively online for-profit universities is that 87% of our full-time, degree-seeking students (as of December 31, 2013) are enrolled in a graduate degree program (master or doctorate degree program). Aspen University is accredited by the Accrediting Commission of the Distance Education and Training Council (DETC). The Accrediting Commission of the Distance Education and Training Council is listed by the U.S. Department of Education as a nationally recognized accrediting agency, and is a recognized member of the Council for Higher Education Accreditation (CHEA).Less >>
$ASPU share structure
## source: otcmarkets.com
Market Value: $23,770,084 a/o Nov 13, 2015
Shares Outstanding: 128,486,938 a/o Sep 10, 2015
Float: 78,582,932 a/o Aug 24, 2015
Authorized Shares: 250,000,000 a/o Aug 24, 2015
Par Value: No Par Value
$ASPU extra dd links
Company name: Aspen Group Inc.
Company website: http://www.aspen.edu
## STOCK DETAILS ##
After Hours Quote (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/after-hours
Option Chain (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/option-chain
Historical Prices (yahoo.com): http://finance.yahoo.com/q/hp?s=ASPU+Historical+Prices
Company Profile (yahoo.com): http://finance.yahoo.com/q/pr?s=ASPU+Profile
Industry (yahoo.com): http://finance.yahoo.com/q/in?s=ASPU+Industry
## COMPANY NEWS ##
Market Stream (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/stream
Latest news (otcmarkets.com): http://www.otcmarkets.com/stock/ASPU/news - http://finance.yahoo.com/q/h?s=ASPU+Headlines
## STOCK ANALYSIS ##
Analyst Research (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/analyst-research
Guru Analysis (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/guru-analysis
Stock Report (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/stock-report
Competitors (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/competitors
Stock Consultant (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/stock-consultant
Stock Comparison (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/stock-comparison
Investopedia (investopedia.com): http://www.investopedia.com/markets/stocks/ASPU/?wa=0
Research Reports (otcmarkets.com): http://www.otcmarkets.com/stock/ASPU/research
Basic Tech. Analysis (yahoo.com): http://finance.yahoo.com/q/ta?s=ASPU+Basic+Tech.+Analysis
Barchart (barchart.com): http://www.barchart.com/quotes/stocks/ASPU
DTCC (dtcc.com): http://search2.dtcc.com/?q=Aspen+Group+Inc.&x=10&y=8&sp_p=all&sp_f=ISO-8859-1
Spoke company information (spoke.com): http://www.spoke.com/search?utf8=%E2%9C%93&q=Aspen+Group+Inc.
Corporation WIKI (corporationwiki.com): http://www.corporationwiki.com/search/results?term=Aspen+Group+Inc.&x=0&y=0
WHOIS (domaintools.com): http://whois.domaintools.com/http://www.aspen.edu
Alexa (alexa.com): http://www.alexa.com/siteinfo/http://www.aspen.edu#
Corporate website internet archive (archive.org): http://web.archive.org/web/*/http://www.aspen.edu
## FUNDAMENTALS ##
Call Transcripts (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/call-transcripts
Annual Report (companyspotlight.com): http://www.companyspotlight.com/library/companies/keyword/ASPU
Income Statement (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/financials?query=income-statement
Revenue/EPS (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/revenue-eps
SEC Filings (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/sec-filings
Edgar filings (sec.gov): http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001487198&owner=exclude&count=40
Latest filings (otcmarkets.com): http://www.otcmarkets.com/stock/ASPU/filings
Latest financials (otcmarkets.com): http://www.otcmarkets.com/stock/ASPU/financials
Short Interest (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/short-interest
Dividend History (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/dividend-history
RegSho (regsho.com): http://www.regsho.com/tools/symbol_stats.php?sym=ASPU&search=search
OTC Short Report (otcshortreport.com): http://otcshortreport.com/index.php?index=ASPU
Short Sales (otcmarkets.com): http://www.otcmarkets.com/stock/ASPU/short-sales
Key Statistics (yahoo.com): http://finance.yahoo.com/q/ks?s=ASPU+Key+Statistics
Insider Roster (yahoo.com): http://finance.yahoo.com/q/ir?s=ASPU+Insider+Roster
Income Statement (yahoo.com): http://finance.yahoo.com/q/is?s=ASPU
Balance Sheet (yahoo.com): http://finance.yahoo.com/q/bs?s=ASPU
Cash Flow (yahoo.com): http://finance.yahoo.com/q/cf?s=ASPU+Cash+Flow&annual
## HOLDINGS ##
Major holdings (cnbc.com): http://data.cnbc.com/quotes/ASPU/tab/8.1
Insider transactions (yahoo.com): http://finance.yahoo.com/q/it?s=ASPU+Insider+Transactions
Insider transactions (secform4.com): http://www.secform4.com/insider-trading/ASPU.htm
Insider transactions (insidercrow.com): http://www.insidercow.com/history/company.jsp?company=ASPU
Ownership Summary (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/ownership-summary
Institutional Holdings (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/institutional-holdings
Insiders (SEC Form 4) (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/insider-trades
Insider Disclosure (otcmarkets.com): http://www.otcmarkets.com/stock/ASPU/insider-transactions
## SOCIAL MEDIA AND OTHER VARIOUS SOURCES ##
PST (pennystocktweets.com): http://www.pennystocktweets.com/stocks/profile/ASPU
Market Watch (marketwatch.com): http://www.marketwatch.com/investing/stock/ASPU
Bloomberg (bloomberg.com): http://www.bloomberg.com/quote/ASPU:US
Morningstar (morningstar.com): http://quotes.morningstar.com/stock/s?t=ASPU
Bussinessweek (businessweek.com): http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=ASPU
$ASPU DD Notes ~ http://www.ddnotesmaker.com/ASPU
What Catches my eye
Historical Prices
Date Open High Low Close Volume Adj
Close
2015/11/17 0.1899 0.1899 0.1899 0.1899 26,020 0.1899
2015/11/16 0.1899 0.1899 0.1875 0.1899 1,102 0.1899
2015/11/13 0.18 0.19 0.17 0.19 84,193 0.19
2015/11/12 0.1799 0.1799 0.1799 0.1799 1,100 0.1799
2015/11/11 0.1801 0.1899 0.17 0.1725 65,376 0.1725
2015/11/10 0.18 0.20 0.1751 0.1899 1,370,487 0.1899 big volume day highest volume since July
2015/11/09 0.17 0.1799 0.16 0.1799 250,538 0.1799
2015/11/06 0.17 0.17 0.16 0.17 69,720 0.17
2015/11/05 0.16 0.16 0.16 0.16 158,924 0.16
2015/11/04 0.15 0.16 0.15 0.16 445,179 0.16
2015/11/03 0.15 0.16 0.1495 0.1495 103,700 0.1495
2015/11/02 0.1475 0.16 0.1475 0.1501 56,106 0.1501
2015/10/30 0.16 0.16 0.15 0.1501 15,200 0.1501
2015/10/29 0.14 0.17 0.14 0.16 366,450 0.16
2015/10/28 0.1449 0.16 0.1431 0.14 108,565 0.14
2015/10/27 0.1448 0.1449 0.1448 0.1449 32,500 0.1449
2015/10/26 0.14 0.1449 0.1201 0.1449 35,265 0.1449
2015/10/23 0.12 0.1365 0.12 0.13 80,450 0.13
2015/10/22 0.15 0.15 0.13 0.13 420,580 0.13
2015/10/21 0.13 0.14 0.13 0.14 384,245 0.14
2015/10/20 0.12 0.13 0.12 0.1236 171,764 0.1236
2015/10/19 0.12 0.13 0.12 0.13 5,048 0.13
2015/10/16 0.13 0.14 0.12 0.14 213,995 0.14
2015/10/15 0.13 0.14 0.13 0.1335 93,000 0.1335
2015/10/14 0.14 0.14 0.14 0.14 - 0.14
2015/10/13 0.1211 0.14 0.1211 0.14 15,000 0.14
2015/10/12 0.13 0.13 0.13 0.13 91,300 0.13
2015/10/09 0.13 0.14 0.1266 0.13 185,700 0.13
2015/10/08 0.14 0.14 0.13 0.13 146,000 0.13
2015/10/07 0.1288 0.13 0.1288 0.13 16,000 0.13
2015/10/06 0.13 0.13 0.13 0.13 83,554 0.13
2015/10/05 0.13 0.13 0.13 0.13 12,770 0.13
2015/10/02 0.13 0.13 0.13 0.1285 41,385 0.1285
2015/10/01 0.1176 0.1305 0.1175 0.13 260,043 0.13 -> the low
2015/09/30 0.12 0.1215 0.12 0.12 271,000 0.12
2015/09/29 0.12 0.13 0.12 0.12 89,870 0.12
2015/09/28 0.13 0.13 0.12 0.12 40,000 0.12
2015/09/25 0.13 0.13 0.12 0.13 106,270 0.13
2015/09/24 0.13 0.14 0.1285 0.13 82,705 0.13
2015/09/23 0.13 0.14 0.13 0.13 47,720 0.13
2015/09/22 0.1375 0.1375 0.13 0.13 48,000 0.13
2015/09/21 0.14 0.14 0.14 0.1375 40,692 0.1375
2015/09/18 0.14 0.14 0.1345 0.14 82,367 0.14
2015/09/17 0.14 0.14 0.1337 0.14 88,900 0.14
2015/09/16 0.15 0.15 0.1402 0.1402 105,000 0.1402
2015/09/15 0.15 0.15 0.15 0.15 610,000 0.15
2015/09/14 0.15 0.15 0.1410 0.15 126,684 0.15
2015/09/11 0.16 0.16 0.1488 0.1488 351,409 0.1488
2015/09/10 0.1501 0.15 0.15 0.15 59,700 0.15
2015/09/09 0.1479 0.1555 0.1455 0.15 520,800 0.15
2015/09/08 0.1473 0.1479 0.1473 0.1473 33,899 0.1473
2015/09/04 0.15 0.1495 0.15 0.1495 29,539 0.1495
2015/09/03 0.1485 0.1485 0.1485 0.1485 20,000 0.1485
2015/09/02 0.15 0.15 0.1485 0.1485 198,100 0.1485
2015/09/01 0.15 0.15 0.1485 0.1485 6,434 0.1485
2015/08/31 0.15 0.15 0.15 0.15 68,075 0.15
2015/08/28 0.15 0.15 0.15 0.15 70,300 0.15
2015/08/27 0.15 0.15 0.15 0.15 95,000 0.15
2015/08/26 0.15 0.15 0.1451 0.15 49,155 0.15
2015/08/25 0.1451 0.15 0.1451 0.15 34,200 0.15
2015/08/24 0.16 0.16 0.1451 0.15 551,014 0.15
2015/08/21 0.16 0.16 0.16 0.16 59,505 0.16
2015/08/20 0.17 0.17 0.16 0.17 16,800 0.17
2015/08/19 0.17 0.1678 0.16 0.1678 110,573 0.1678
2015/08/18 0.16 0.16 0.16 0.16 160,850 0.16
2015/08/17 0.17 0.17 0.17 0.17 7,000 0.17
2015/08/14 0.17 0.17 0.17 0.17 10,000 0.17
2015/08/13 0.17 0.17 0.17 0.17 - 0.17
2015/08/12 0.17 0.17 0.17 0.17 16,517 0.17
2015/08/11 0.17 0.17 0.17 0.17 131,700 0.17
2015/08/10 0.18 0.18 0.18 0.18 44,465 0.18
2015/08/07 0.18 0.18 0.17 0.18 127,550 0.18
2015/08/06 0.18 0.18 0.17 0.18 523,830 0.18
2015/08/05 0.18 0.18 0.17 0.18 96,595 0.18
2015/08/04 0.18 0.18 0.18 0.18 37,691 0.18
2015/08/03 0.18 0.19 0.18 0.18 53,536 0.18
2015/07/31 0.18 0.18 0.18 0.18 27,500 0.18
2015/07/30 0.18 0.18 0.1720 0.1799 312,583 0.1799
2015/07/29 0.1711 0.18 0.16 0.18 455,771 0.18
2015/07/28 0.18 0.18 0.17 0.1711 290,798 0.1711
2015/07/27 0.1413 0.1720 0.1401 0.17 744,109 0.17
2015/07/24 0.1352 0.14 0.1352 0.14 6,500 0.14
2015/07/23 0.1351 0.1410 0.1351 0.1352 126,300 0.1352
2015/07/22 0.13 0.14 0.13 0.1351 216,016 0.1351
2015/07/21 0.15 0.15 0.093 0.14 3,143,791 0.14
2015/07/20 0.15 0.16 0.1401 0.15 27,488 0.15
2015/07/17 0.1515 0.16 0.14 0.15 406,776 0.15
2015/07/16 0.1648 0.1648 0.16 0.16 22,000 0.16
2015/07/15 0.1638 0.1681 0.1615 0.1615 15,928 0.1615
2015/07/14 0.17 0.17 0.16 0.16 7,099 0.16
2015/07/13 0.15 0.16 0.15 0.16 43,613 0.16
2015/07/10 0.16 0.16 0.16 0.16 40,750 0.16
2015/07/09 0.1689 0.18 0.15 0.1575 692,153 0.1575
2015/07/08 0.17 0.1739 0.17 0.1739 25,900 0.1739
2015/07/07 0.17 0.1795 0.17 0.1795 48,301 0.1795
2015/07/06 0.18 0.18 0.1665 0.18 122,174 0.18
2015/07/02 0.18 0.18 0.17 0.18 37,125 0.18
2015/07/01 0.16 0.18 0.16 0.1796 144,000 0.1796
2015/06/30 0.1622 0.17 0.15 0.17 154,600 0.17
2015/06/29 0.16 0.1675 0.16 0.1622 33,648 0.1622
Is your figure correct? You bought at 5.60?
I just recently noticed this stock and have been doing a bit more research. Seems like I am one of a couple of people expressing any interest in this company.
Hi Paul you still here?
Aspen Group, Inc. to Announce Fiscal 2016 2nd Quarter Results on Wednesday, December 2nd
4:01 pm ET November 17, 2015 (Globe Newswire) Print
Aspen Group, Inc. (OTCQB:ASPU), parent of Aspen University, a nationally accredited online postsecondary education company, will host a conference call to discuss its fiscal year 2016 second quarter (ending October 31, 2015) financial results and business outlook on Wednesday, December 2, 2015, at 5:00 p.m. (ET). Aspen will issue a press release reporting results after the market closes on Wednesday, December 2.
The conference call can be accessed by dialing toll-free (844) 452-6823 (U.S.) or (731) 256-5216 (international). Subsequent to the call, a transcript of the audiocast will be available from the Company's website at ir.aspen.edu.
About Aspen Group, Inc. (OTCQB:ASPU)
Aspen Group, Inc. is an online postsecondary education company. Aspen University's mission is to offer any motivated college-worthy student the opportunity to receive a high-quality, responsibly priced distance-learning education for the purpose of achieving sustainable economic and social benefits for themselves and their families. Aspen is dedicated to providing the highest quality education experiences taught by top-tier faculty - 60 percent of our adjunct faculty hold doctoral degrees. To learn more about Aspen University, visit www.aspen.edu.
Media Contact:
Aspen Group, Inc.
Michael Mathews, CEO
914-906-9159
http://resource.globenewswire.com/Resource/Download/df26e2a8-d305-441f-b6eb-9e83758129f5?size=1
Additional accumulation today.
Hoss you still keeping track of this one?
This was the transcript of the most recent conference call, still have leg work to do this weekend to comb through additional items including their rate of cash burn.
http://seekingalpha.com/symbol/ASPU
"Aspen Group's (ASPU) CEO Michael Mathews on Q1 2016 Results - Earnings Call Transcript
Sep. 10, 2015 8:13 PM ET | About: Aspen Group Inc. (ASPU)
Aspen Group Inc. (OTCQB:ASPU) Q1 2016 Results Earnings Conference Call September 10, 2015 5:00 PM ET
Operator
Good day ladies and gentlemen and welcome to the Aspen Group Incorporated’s Fiscal First Quarter Conference Call.
At this time all participant lines are in a listen-only mode to reduce background noise. But later we will be conducting a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder today's conference call is being recorded.
I would now like to introduce your fist speaker for today Janet Gill, Chief Financial Officer. You have the floor ma’am.
Janet Gill - CFO
Okay. Thank you, Andrew. Good afternoon all. Thank you for joining us today for Aspen Group's fiscal year 2016 first quarter earnings call.
Please note that the company's remarks made during this call, including answers to questions include forward-looking statements which are subject to various risks and uncertainties. These include statements relating to expectations from our nursing programs, new student enrollment, increase in marketing spend, and forecasts including growth in revenue, gross margins and adjusted-EBITDA.
Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. A discussion of risks and uncertainties related to our business is contained in our filings with the Securities and Exchange Commission, particularly the section titled Risk Factors in our Form 10-K filed on July 28, 2015. Aspen Group disclaims any obligation to update any forward-looking statement as a result of future development.
Also, I'd like to remind you that during the course of this conference call, we will discuss adjusted EBITDA and adjusted gross profit, which are non-GAAP measures when we're talking about the company's performance. Reconciliation to the most directly comparable GAAP financial measures are provided in the tables in the press release issued by the company today. There will be a transcript of this conference call available for one year at the company's website.
I would now like to turn the call over to the Chairman and CEO of Aspen Group, Mr. Michael Mathews.
Michael Mathews - CEO
Thank you, Janet. I'll begin today by reviewing the financial highlights of our first quarter. Then, I'll provide a business update focusing on the growth of our school of nursing. After my prepared remarks, we'll then turn to Q&A.
To open, quarterly revenues were $1,705,861, which represents an increase of 46% year over year. Aspen Group's gross profit for the first quarter increased 32% from the comparable prior year period to $799,232 or 47% margin.
Our adjusted gross profit, exclusive of depreciation and amortization increased 29% from the comparable prior year period to $931,752 or a 55% margin. On a sequential basis, our gross margins marginally declined by 3 percentage points from 50% to 47%, which was expected as we increased our marketing spend rate by 15% sequentially.
Just as a reminder when we materially increase our marketing spend in a given quarter, margins will typically soften in that quarter given that it takes on average 60 to 90 days to generate a new student enrollment once a new lead hits our enrollment center. Our adjusted EBITDA resulted in a loss of $299,625, a sequential decline of 12%.
Finally, net loss applicable to shareholders was minus $718,706 or a loss per share of $0.01. That's a sequential improvement of 30%.
From a balance sheet perspective, Aspen ended the quarter with a cash balance of approximately $2.8 million, which includes $1,122,485 of restricted cash. Finally, our total stockholders' equity ended at a positive $1,958,414.
Now let’s discuss our business progress, specifically the rapid growth in our school of nursing. Let’s start by looking back a year ago.
In July 2014, Aspen had 920 students enrolled in our School of Nursing. Two quarters later, Aspen grew by 231 nursing students to 1,151 students.
However, in the April quarter, we added 223 nursing students, and in the July quarter just ended we added another 230 nursing students, meaning that our historical quarterly grow rate of our nursing student body in the last two quarters has essentially doubled.
Two thirds of our nursing enrollment growth in the past six months comes from our newly CCNE accredited RN to BSN program. Specifically, our RN to BSN program has grown by 300 students in this timeframe from 139 to 439 BSN students.
As a result of the acceleration of growth caused by our BSN program, in the past year, our Nursing student body has grown by 74%, delivering 69% of Aspen’s overall student body growth. Consequentially, Aspen School of Nursing now represents 44% of Aspen’s total student body, and it’s projected to become a majority of our student body sometime early in calendar year 2016.
Well, let’s dig a little deeper in order for you to understand why Aspen is so focused on becoming predominately a nursing school. The first reason is our lower cost of acquisition. Many of the nurses that reach out to Aspen are communicated and they’re required to obtain their BSN by a specific deadline.
So not only it's an advanced degree and opportunity to increase one’s income, but in many cases in the nursing sector getting an advanced degree is necessary to ensure long-term employment.
It's for this reason that in some media [ph] channels, Aspen enjoyed double the conversion rates with nursing leads, and for example MBA student leads.
Second, while 44% of Aspen’s student body are now nursing students, they actually represent a majority of our revenues today at 52% meaning that the lifetime value or the LTV is higher among nursing students compared to non-nursing students. Why is that?
Well, our nursing students are more active than students in our other four schools as they take on average approximately 18% more courses per year than our non-nursing students.
So to recap, our cost of acquisition is significantly lower for nursing students while our nursing students are more active than other students delivering higher annualized revenues and higher LTVs. So it's no surprise that given these comparative metrics, Aspen for the foreseeable future will continue to focus almost exclusively on growing its nursing school.
In fact, we’re projecting that by the end of 2016, approximately two thirds of our student body will be nursing students delivering over 75% of Aspen’s revenues.
I’d like to end my prepared remarks today with an exciting data point. As mentioned earlier, this past quarter, our student body increased by a net 300 students growing from 3,309 to 3,609 total students. Unbelievably, among the entire student body, the University is adding on average net 75 students every month to one of our debtless education monthly payment methods.
That's net 225 students on average per quarter, which means our monthly payment students are increasing at roughly 75% of the rate of the overall student body growth. That metric provides crystal clear evidence that working professionals will choose the debt-free alternative if they are given a monthly payment method to pay for their educations.
That ends our prepared comments for this afternoon. Now we’d like to open the call to address any questions.
Question-and-Answer Session
Operator
[Operator Instructions] Our first question is from the line of Brett Reiss from Janney Montgomery. Your line is open.
Brett Reiss - Janney Montgomery
Hi Michael, hi Ms. Gill.
Janet Gill - CFO
Hi Brett.
Brett Reiss - Janney Montgomery
Hi, could you modestly increase prices without derailing the great growth you’re enjoying?
Michael Mathews - CEO
Hi Brett, it’s Mike Matthews. We certainly could. There is no question. I guess the critical question Brett would be what is the maximum amount of monthly spend that a working professional can put into their monthly budget.
And in our humble opinion, we think that limit is $325 after doing a number of different studies, that's the number we arrived at which obviously then backs into $975 over a term over a three month period…
Brett Reiss - Janney Montgomery
Michael you cut off a little bit, and we’re not trying to do so. Michael forgive me you cut off maybe the last 45 seconds of what you said, you cut out. I think towards the tail end, you’re not planning to raise prices?
Michael Mathews - CEO
Yes so yes, what we said was that we did a lot of research to offset what we felt was the proper amount that a working professional would be able to put into their budget to pay for their education, and we think the limit is $325 per month.
Brett Reiss - Janney Montgomery
Okay.
Michael Mathews - CEO
And so as a consequence to that, this model is working so beautifully that we have no intent in the future of changing the model.
Brett Reiss - Janney Montgomery
Okay. What keeps you up, is there anything that keeps you up at night that could derail this meteoric growth that you’re enjoying, and it looks like you’ve got a runway to continue, but is there anything that concerns you or you’ve got a clear glide path?
Michael Mathews - CEO
Well, our largest shareholder and our largest investors in the past 12 months, they’ve made the point to me very clearly, and I agree with them that we have a window of opportunity and what we want to do is we want to capture that window of opportunity and take advantage of it while we’re doing so well and while we have a unique offering.
Obviously, at some point in time, a number of universities are likely to file a suite particularly when they see how well we’re doing.
But, we’re obviously capturing a significant amount of market share in the undergraduate nursing field today. But again, some of the older traditional non-profit universities, they have an operating cost structure and a G&A that doesn’t really allow them to offer this innovative approach.
So from a competitive standpoint, I’m worried more about more startup young type universities that would file suit that don’t have quite the G&A. So I hope that answers the question.
Brett Reiss - Janney Montgomery
Right. All right. Thank you. I’m going to drop back in queue. Thank you.
Michael Mathews - CEO
Thank you, Brett.
Operator
Thank you. Our next question is from the line of [Mark Finsky] [ph]. Your line is open
Unidentified Analyst
Oh yes. Good afternoon and thanks for taking my questions. I just have three broad questions. I guess the first is in terms of the operating leverage of the model, I think in prior releases or in your Investor presentation, you kind of hinted at 5,000 enrolled students kind of being somewhat of a magic number for you and in terms of starting to get some meaningful leverage. Are you still kind of committed to that level?
Michael Mathews - CEO
Yeah, and thanks for the question Mark. So first I will say that we’re absolutely forecasting to have over 5,000 students one year out based on our enrollment growth and the success that we’ve enjoyed in the last several quarters.
As I’m sure everyone is aware, the company is focused on growth given the window of opportunities we’re enjoying. As you guys can all see, the cash burn has declined to less than a $100,000 per month even as the company continues to grow its marketing budget sequentially by double-digits.
So in terms of operating leverage first, the moderate increase to our G&A this year will be primarily through growing our enrollment center, and overall you should expect our G&A to increase at the current level of less than 25% year-over-year.
That means that when a university hits a quarterly revenue run rate in the $2.25 million range, which we’re getting close to of course, we expect to begin generating cash at that level even given the planned marketing spend increases.
In terms of long-term operating leverage, we’re forecasting to generate over 15% adjusted EBITDA margin when our quarterly revenues are in the $3.75 million range and we’re forecasting over 30% of adjusted EBITDA margins when our quarterly revenues are in the $6 million range. So that's to give you an idea in terms of operating leverage over time.
Unidentified Analyst
Okay. Thank you very much for that specificity. My second question gets to your marketing and frankly your remarkable low cost of student acquisition from your marketing.
And I know you’ve hinted in the past, but you have some inherent advantages versus the bigger players out there in terms of doing your marketing internally. But is it also just reflective of your senior team in terms of their internet advertising experience?
Michael Mathews - CEO
Yes, there’s no question that my experience at having both InnerClick over a four-year period and selling at the Yahoo obviously we have a very special team of Internet advertising professionals.
But I have to say there is three or four critical factors through what’s making this such a special business and such a special model. The first of course is what you hit on, which is we are from my point of view we're probably the most efficient university in the country that’s generating a student lead.
The second thing that we’re doing is we’re extremely focused on nursing and as we announced earlier today, over three quarters of the growth of the student body are registered nurse enrollments.
And that these our BSN program, which was of course accredited by the CCNE back in November. That program is growing approximately twice as fast as our MSN program, which of course grew quite nicely over the last few years.
And why is that? Well because nearly half of the RNs in America today don’t get hold of BSN and many healthcare organizations are setting deadlines for their RNs to get their BSN by 2020. So the demand for obtaining BSN degrees is very, very strong.
And secondly, when you combine that with our unique debtless education solution, we’re offering BSN students the ability to pay for their education at $250 a month over 39 months.
Then we have a recipe for what’s unfolding, which is the fact that Aspen is rapidly growing market share within the undergraduate nursing field. So its Internet advertising expertise coupled with -- we’re targeting I think the strongest demand marketplace in the higher education sector combined with having the most unique offer in the marketplace. This is what happens when those three factors are coming together.
Unidentified Analyst
Okay. That’s very helpful and that leads into my last question and the success for the RN to BSN program. Can you speak in broad terms in terms of the industry and the number of states that are increasingly requiring their nurses to have BSNs has that little bit accelerated or do you see it accelerating even more?
Michael Mathews - CEO
Yeah no, let me explain that, that’s a great question. Well let me backup, today approximately 13% of nurses hold the Masters level degree or higher. The problem now is only 55% of registered nurses hold a Bachelors degree or higher.
So approximately 45% of registered nurses don’t yet hold a Bachelors degree that’s about two million RNs that we’re currently targeting to help them get that Bachelors degree. Now most people think that the demand is based on legislative changes and that’s not the case at all.
This demand started with a white paper report that was published in 2010 by the Institute of Medicine and in that paper, they recommended that by 2020, the proportion of RNs with level degrees be at 80%.
Since that report, many healthcare organizations have inserted that goal into their operating plans by 2020. So that’s why such a large number of RNs have been told that they to get their BSN by 2020 in order to ensure their job security. So that’s really what's led to this demand and that’s why I don’t see the demand lighting up for a minimum three to five years.
Unidentified Analyst
Okay. That just leads to my final question then, I know that certain companies like large companies that they feel that they want to have their employees attain some more credential or specific skills, though contract with a particular online institution.
Could an opportunity like that present itself for you where let’s say a particular healthcare system might say here we need to -- we need these 100 RNs to get their BSNs let’s contract with Aspen. Could something -- is there the potential for a deal like that?
Michael Mathews - CEO
Yeah no, absolutely. So unfortunately we’re not able to publicly disclose the partnerships that we have with large healthcare organizations, within our contracts that sign they require that we don’t disclose this publicly.
But I can tell you that we have currently 15 corporate partnerships with some of the largest health organizations across America and in those agreements we’re offering their employee base a 10% discount off of our current tuition rate.
And we’re also working very closely with one of the largest unions in America and we’re seeing a number of nurses that are coming together in cohort fashion to enter Aspen University altogether at the same time in order to investigate a cheaper MSN.
So yes, we’re very active in the marketplace. We actually have an executive that's dedicated to helping us get corporate partnerships agreements completed and then ultimately once the agreement is completed then our next job is to get into those hospitals and set up tables and talk about our program person to person.
Unidentified Analyst
Got you. Okay. Thank you very much for taking my questions.
Operator
Thank you. [Operator Instructions] And looks like we have a follow-up from Brett Reiss from Janney Montgomery Scott. Your line is open.
Brett Reiss - Janney Montgomery
Yeah Michael, putting myself in the shoes of a registered nurse that we'll need one of these degrees, when you look at the price differential that you offer why -- unless it’s an older RN that maybe is not computer literate who would not choose to go with somebody like Aspen? Your pricing is just its so compelling, but not everyone is going to go in your direction? Who would not use you?
Michael Mathews - CEO
Well, I've said in the past that the conversion rates that we have on our nursing leads are just astounding. It’s in the range of 10% which is unheard of. So to answer your question, once we get a nurse on the phone and explain what our program is talking about our curriculum and the support that we provide, we also give a 45-minute orientation to our new students so that when they do enter the classroom they feel very comfortable, when they arrive, which is important because as you guys probably are aware that average age of registered nurses in America is today is 48 years old. So many of these students have not been to college over a decade or two.
And so there is -- they are concerned about jumping back in and so we have a very, very important system that takes place to help shuffle these folks in so they’re successful in their first course and then throughout their whole program.
So that's what they're challenged for us is ensuring that our students are comfortable and successful when they arrive, more so then talking them into Aspen, again if we have a nurse that decides not to join Aspen, its typically not because they’re going to go to another school. It's typically because they frankly don’t have the confidence level to go back to hire it.
Brett Reiss - Janney Montgomery
Right, right. Okay. Thanks.
Operator
Thank you. Our next question comes from the line of George Melas from MKH Management. Your line is open.
George Melas - MKH Management
Great, thank you. Mike and Janet, you’ve been increasing marketing spend to drive the growth of the business and you've achieved accelerating growth over the last three quarters. Do you see growth remaining in that 40% range or what would it take to continue growing at that rate in the market?
Michael Mathews - CEO
Our overall revenue growth rate you mean?
George Melas - MKH Management
Yes exactly you can answer the way you want to Mike.
Michael Mathews - CEO
Yes so and so further notice, I think every shareholder should be aware that the growth rate that we just announced is a growth rate that you should expect going forward. And so we're going to have a compound annual growth rate that's 40% plus for the foreseeable future.
George Melas - MKH Management
Excellent, what does it take for you to actually achieve this growth rate from both a marketing cost, from a call center spend and from sort of a G&A support expense?
Michael Mathews - CEO
Well for every $50,000 of spend per month in marketing, we typically -- we have to add somewhere in the vicinity of about five to six call center employees. So and the growth rate on the marketing spend, so if we increase the marketing spend by $50,000, it usually takes two to three quarters before we see the full effect of that spend because it takes 60-90 days to enroll a student and then that subsequent quarter is when they're taking their first course.
And as we continue to increase our spend rate sequentially by 10% to 15%, that's what's causing close to 50% year-over-year growth rate and again as we move from $5 million run rate to now $7 plus million run rate to a $10 million run rate as I said before, you’ll then start to see some nice operating leverage as we go.
George Melas - MKH Management
Okay. And what was your marketing spend in the quarter?
Michael Mathews - CEO
The quarter that just ended in July.
George Melas - MKH Management
Yeah exactly.
Michael Mathews - CEO
Yeah we spend approximately $150,000 a month.
George Melas - MKH Management
Okay, And do you see that remaining stable for a while or do you think that you will increase that?
Michael Mathews - CEO
No our plan is to continue to increase our marketing spend rate for the foreseeable future and you’re probably looking at round about 10% a quarter for several quarters.
George Melas - MKH Management
Okay. Thanks Mike.
Michael Mathews - CEO
Thank you.
Operator
[Operator Instructions] We just got a question from the line of [John Nicola] [ph]. Your line is open.
Unidentified Analyst
Yes being a shareholder I’m wondering when the profitability will be increased for the shareholder?
Michael Mathews - CEO
Could you repeat the question, I’m sorry.
Unidentified Analyst
Yes, I’m wondering when is it going to show up in the profitability for the shareholder in regards to the shares that they own.
Michael Mathews - CEO
Okay. Yeah so and I -- as I indicated earlier, when we are at a $2.25 million revenue run rate per quarter that’s when -- that’s approximately the range that we’ll begin generating cash. We just did of course $1.71 million and that $2.25 million figure is likely to be achieved before this fiscal year ends. So hopefully that gives you bit fairly specific understanding of how close we are.
Unidentified Analyst
So you’re considering that is around $50,000 before profitability then?
Michael Mathews - CEO
I’m not sure I understand the question.
Unidentified Analyst
You said they were at $1.75 million and were needing to go to $2.05?
Michael Mathews - CEO
$2.25.
Unidentified Analyst
$2.25, so we’re concerning you need to increase enrollment or that will increase into the what six months say to the end of 2016?
Michael Mathews - CEO
That’s about the right timeframe correct, approximately.
Unidentified Analyst
What about the debt structure?
Michael Mathews - CEO
The company has a line of credit of $250,000 with Chase and Manhattan Bank currently and that's our only external debt.
Unidentified Analyst
And what has that taken out per month?
Janet Gill - CFO
About a $1,000 a month.
Unidentified Analyst
I’m sorry would you repeat that please?
Michael Mathews - CEO
Yeah the interest on that is about a $1000 a month.
Janet Gill - CFO
Given $1300.
Unidentified Analyst
Okay. Thank you.
Michael Mathews - CEO
Thank you.
Operator
[Operator Instructions] And that looks like all the questions that we’re going to be getting for today. So I’d like to turn the conference back over to management for closing remarks.
Michael Mathews - CEO
Thanks everybody for your questions. I want to thank everyone for joining us this afternoon and the team here looks forward to talking with you again next quarter. Have a nice day.
Janet Gill - CFO
Bye, bye now. Take care.
Operator
Ladies and gentlemen, thank you again for your participation in today’s conference. This now concludes the program and you may all disconnect your telephone lines this time. Everyone have a great evening.
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Rain when you have the opportunity would you mind sharing your thoughts on ASPU? For profit Education online provider.
http://www.aspen.edu/
Mon, 09 Nov 2015 21:50:21 GMT ~ Aspen Group to Present at the LD Micro Main Event 2015
[GlobeNewswire] - NEW YORK, Nov. 09, 2015-- Aspen Group, Inc., parent of Aspen University, a nationally accredited online postsecondary education company, announced today that Chairman and CEO Michael Mathews will present ...
read full: http://finance.yahoo.com/news/aspen-group-present-ld-micro-215021057.html
*********************************************************
Thu, 05 Nov 2015 13:02:12 GMT ~ ASPEN GROUP, INC. Files SEC form 8-K, Regulation FD Disclosure, Financial Statements and Exhibits
read full: http://biz.yahoo.com/e/151105/aspu8-k.html
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Wed, 04 Nov 2015 13:00:00 GMT ~ Aspen University Announces New Student Enrollments Rise 110% YoY
[GlobeNewswire] - Preliminary Fiscal Second Quarter Revenue Increases Over 54% YoY. Aspen’ s Degree-Seeking Student Body Hits 4,000; Forecasting 5,000 Students by Fiscal Year End, April 30, 2016. NEW YORK, Nov. 04, 2015-- ...
read full: http://finance.yahoo.com/news/aspen-university-announces-student-enrollments-130000195.html
*********************************************************
Tue, 06 Oct 2015 12:00:00 GMT ~ Aspen University’s Debtless Education Solution Exceeds a Majority of Its Tuition Revenues Only 18 Months Following Inception
[GlobeNewswire] - 52% of Tuition Revenues in September Paid Through Monthly Payment Methods. Recurring Monthly Tuition Billing Now Exceeds $275,000. NEW YORK, Oct. 06, 2015-- Aspen Group, Inc., a nationally accredited online ...
read full: http://finance.yahoo.com/news/aspen-university-debtless-education-solution-120000805.html
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Wed, 16 Sep 2015 17:04:05 GMT ~ ASPEN GROUP, INC. Financials
read full: http://finance.yahoo.com/q/is?s=aspu
*********************************************************
$ASPU charts
basic chart ## source: stockcharts.com
basic chart ## source: stockscores.com
big daily chart ## source: stockcharts.com
big weekly chart ## source: stockcharts.com
$ASPU company information
## source: otcmarkets.com
Link: http://www.otcmarkets.com/stock/ASPU/company-info
Ticker: $ASPU
OTC Market Place: OTCQB
CIK code: 0001487198
Company name: Aspen Group Inc.
Company website: http://www.aspen.edu
Incorporated In: DE, USA
Business Description: Aspen Group, Inc. owns Aspen University Inc., a nationally accredited, online post-secondary education company established in 1987. Aspen University's mission is to become an institution of choice for adult learners by offering cost-effective, comprehensive and relevant online education. We are dedicated to helping our students exceed their personal and professional objectives in a socially conscious and economically sensible way. One of the key differences between Aspen University and other publicly-traded, exclusively online for-profit universities is that 87% of our full-time, degree-seeking students (as of December 31, 2013) are enrolled in a graduate degree program (master or doctorate degree program). Aspen University is accredited by the Accrediting Commission of the Distance Education and Training Council (DETC). The Accrediting Commission of the Distance Education and Training Council is listed by the U.S. Department of Education as a nationally recognized accrediting agency, and is a recognized member of the Council for Higher Education Accreditation (CHEA).Less >>
$ASPU share structure
## source: otcmarkets.com
Market Value: $24,399,670 a/o Nov 16, 2015
Shares Outstanding: 128,486,938 a/o Sep 10, 2015
Float: 78,582,932 a/o Aug 24, 2015
Authorized Shares: 250,000,000 a/o Aug 24, 2015
Par Value: No Par Value
$ASPU extra dd links
Company name: Aspen Group Inc.
Company website: http://www.aspen.edu
## STOCK DETAILS ##
After Hours Quote (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/after-hours
Option Chain (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/option-chain
Historical Prices (yahoo.com): http://finance.yahoo.com/q/hp?s=ASPU+Historical+Prices
Company Profile (yahoo.com): http://finance.yahoo.com/q/pr?s=ASPU+Profile
Industry (yahoo.com): http://finance.yahoo.com/q/in?s=ASPU+Industry
## COMPANY NEWS ##
Market Stream (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/stream
Latest news (otcmarkets.com): http://www.otcmarkets.com/stock/ASPU/news - http://finance.yahoo.com/q/h?s=ASPU+Headlines
## STOCK ANALYSIS ##
Analyst Research (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/analyst-research
Guru Analysis (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/guru-analysis
Stock Report (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/stock-report
Competitors (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/competitors
Stock Consultant (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/stock-consultant
Stock Comparison (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/stock-comparison
Investopedia (investopedia.com): http://www.investopedia.com/markets/stocks/ASPU/?wa=0
Research Reports (otcmarkets.com): http://www.otcmarkets.com/stock/ASPU/research
Basic Tech. Analysis (yahoo.com): http://finance.yahoo.com/q/ta?s=ASPU+Basic+Tech.+Analysis
Barchart (barchart.com): http://www.barchart.com/quotes/stocks/ASPU
DTCC (dtcc.com): http://search2.dtcc.com/?q=Aspen+Group+Inc.&x=10&y=8&sp_p=all&sp_f=ISO-8859-1
Spoke company information (spoke.com): http://www.spoke.com/search?utf8=%E2%9C%93&q=Aspen+Group+Inc.
Corporation WIKI (corporationwiki.com): http://www.corporationwiki.com/search/results?term=Aspen+Group+Inc.&x=0&y=0
WHOIS (domaintools.com): http://whois.domaintools.com/http://www.aspen.edu
Alexa (alexa.com): http://www.alexa.com/siteinfo/http://www.aspen.edu#
Corporate website internet archive (archive.org): http://web.archive.org/web/*/http://www.aspen.edu
## FUNDAMENTALS ##
Call Transcripts (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/call-transcripts
Annual Report (companyspotlight.com): http://www.companyspotlight.com/library/companies/keyword/ASPU
Income Statement (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/financials?query=income-statement
Revenue/EPS (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/revenue-eps
SEC Filings (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/sec-filings
Edgar filings (sec.gov): http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001487198&owner=exclude&count=40
Latest filings (otcmarkets.com): http://www.otcmarkets.com/stock/ASPU/filings
Latest financials (otcmarkets.com): http://www.otcmarkets.com/stock/ASPU/financials
Short Interest (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/short-interest
Dividend History (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/dividend-history
RegSho (regsho.com): http://www.regsho.com/tools/symbol_stats.php?sym=ASPU&search=search
OTC Short Report (otcshortreport.com): http://otcshortreport.com/index.php?index=ASPU
Short Sales (otcmarkets.com): http://www.otcmarkets.com/stock/ASPU/short-sales
Key Statistics (yahoo.com): http://finance.yahoo.com/q/ks?s=ASPU+Key+Statistics
Insider Roster (yahoo.com): http://finance.yahoo.com/q/ir?s=ASPU+Insider+Roster
Income Statement (yahoo.com): http://finance.yahoo.com/q/is?s=ASPU
Balance Sheet (yahoo.com): http://finance.yahoo.com/q/bs?s=ASPU
Cash Flow (yahoo.com): http://finance.yahoo.com/q/cf?s=ASPU+Cash+Flow&annual
## HOLDINGS ##
Major holdings (cnbc.com): http://data.cnbc.com/quotes/ASPU/tab/8.1
Insider transactions (yahoo.com): http://finance.yahoo.com/q/it?s=ASPU+Insider+Transactions
Insider transactions (secform4.com): http://www.secform4.com/insider-trading/ASPU.htm
Insider transactions (insidercrow.com): http://www.insidercow.com/history/company.jsp?company=ASPU
Ownership Summary (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/ownership-summary
Institutional Holdings (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/institutional-holdings
Insiders (SEC Form 4) (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/insider-trades
Insider Disclosure (otcmarkets.com): http://www.otcmarkets.com/stock/ASPU/insider-transactions
## SOCIAL MEDIA AND OTHER VARIOUS SOURCES ##
PST (pennystocktweets.com): http://www.pennystocktweets.com/stocks/profile/ASPU
Market Watch (marketwatch.com): http://www.marketwatch.com/investing/stock/ASPU
Bloomberg (bloomberg.com): http://www.bloomberg.com/quote/ASPU:US
Morningstar (morningstar.com): http://quotes.morningstar.com/stock/s?t=ASPU
Bussinessweek (businessweek.com): http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=ASPU
$ASPU DD Notes ~ http://www.ddnotesmaker.com/ASPU
Keeping Track of ASPU .1805 x .189 - Aspen Group -
For profit school have taken a beating this year. This school has had some strong growth in terms of amount of students enrolling for Nursing programs.
Stocktrade posted some excellent information:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=118499574
Mon, 09 Nov 2015 21:50:21 GMT ~ Aspen Group to Present at the LD Micro Main Event 2015
[GlobeNewswire] - NEW YORK, Nov. 09, 2015-- Aspen Group, Inc., parent of Aspen University, a nationally accredited online postsecondary education company, announced today that Chairman and CEO Michael Mathews will present ...
read full: http://finance.yahoo.com/news/aspen-group-present-ld-micro-215021057.html
*********************************************************
Thu, 05 Nov 2015 13:02:12 GMT ~ ASPEN GROUP, INC. Files SEC form 8-K, Regulation FD Disclosure, Financial Statements and Exhibits
read full: http://biz.yahoo.com/e/151105/aspu8-k.html
*********************************************************
Wed, 04 Nov 2015 13:00:00 GMT ~ Aspen University Announces New Student Enrollments Rise 110% YoY
[GlobeNewswire] - Preliminary Fiscal Second Quarter Revenue Increases Over 54% YoY. Aspen’ s Degree-Seeking Student Body Hits 4,000; Forecasting 5,000 Students by Fiscal Year End, April 30, 2016. NEW YORK, Nov. 04, 2015-- ...
read full: http://finance.yahoo.com/news/aspen-university-announces-student-enrollments-130000195.html
*********************************************************
Tue, 06 Oct 2015 12:00:00 GMT ~ Aspen University’s Debtless Education Solution Exceeds a Majority of Its Tuition Revenues Only 18 Months Following Inception
[GlobeNewswire] - 52% of Tuition Revenues in September Paid Through Monthly Payment Methods. Recurring Monthly Tuition Billing Now Exceeds $275,000. NEW YORK, Oct. 06, 2015-- Aspen Group, Inc., a nationally accredited online ...
read full: http://finance.yahoo.com/news/aspen-university-debtless-education-solution-120000805.html
*********************************************************
Wed, 16 Sep 2015 17:04:05 GMT ~ ASPEN GROUP, INC. Financials
read full: http://finance.yahoo.com/q/is?s=aspu
*********************************************************
$ASPU charts
basic chart ## source: stockcharts.com
basic chart ## source: stockscores.com
big daily chart ## source: stockcharts.com
big weekly chart ## source: stockcharts.com
$ASPU company information
## source: otcmarkets.com
Link: http://www.otcmarkets.com/stock/ASPU/company-info
Ticker: $ASPU
OTC Market Place: OTCQB
CIK code: 0001487198
Company name: Aspen Group Inc.
Company website: http://www.aspen.edu
Incorporated In: DE, USA
Business Description: Aspen Group, Inc. owns Aspen University Inc., a nationally accredited, online post-secondary education company established in 1987. Aspen University's mission is to become an institution of choice for adult learners by offering cost-effective, comprehensive and relevant online education. We are dedicated to helping our students exceed their personal and professional objectives in a socially conscious and economically sensible way. One of the key differences between Aspen University and other publicly-traded, exclusively online for-profit universities is that 87% of our full-time, degree-seeking students (as of December 31, 2013) are enrolled in a graduate degree program (master or doctorate degree program). Aspen University is accredited by the Accrediting Commission of the Distance Education and Training Council (DETC). The Accrediting Commission of the Distance Education and Training Council is listed by the U.S. Department of Education as a nationally recognized accrediting agency, and is a recognized member of the Council for Higher Education Accreditation (CHEA).Less >>
$ASPU share structure
## source: otcmarkets.com
Market Value: $23,770,084 a/o Nov 13, 2015
Shares Outstanding: 128,486,938 a/o Sep 10, 2015
Float: 78,582,932 a/o Aug 24, 2015
Authorized Shares: 250,000,000 a/o Aug 24, 2015
Par Value: No Par Value
$ASPU extra dd links
Company name: Aspen Group Inc.
Company website: http://www.aspen.edu
## STOCK DETAILS ##
After Hours Quote (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/after-hours
Option Chain (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/option-chain
Historical Prices (yahoo.com): http://finance.yahoo.com/q/hp?s=ASPU+Historical+Prices
Company Profile (yahoo.com): http://finance.yahoo.com/q/pr?s=ASPU+Profile
Industry (yahoo.com): http://finance.yahoo.com/q/in?s=ASPU+Industry
## COMPANY NEWS ##
Market Stream (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/stream
Latest news (otcmarkets.com): http://www.otcmarkets.com/stock/ASPU/news - http://finance.yahoo.com/q/h?s=ASPU+Headlines
## STOCK ANALYSIS ##
Analyst Research (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/analyst-research
Guru Analysis (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/guru-analysis
Stock Report (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/stock-report
Competitors (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/competitors
Stock Consultant (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/stock-consultant
Stock Comparison (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/stock-comparison
Investopedia (investopedia.com): http://www.investopedia.com/markets/stocks/ASPU/?wa=0
Research Reports (otcmarkets.com): http://www.otcmarkets.com/stock/ASPU/research
Basic Tech. Analysis (yahoo.com): http://finance.yahoo.com/q/ta?s=ASPU+Basic+Tech.+Analysis
Barchart (barchart.com): http://www.barchart.com/quotes/stocks/ASPU
DTCC (dtcc.com): http://search2.dtcc.com/?q=Aspen+Group+Inc.&x=10&y=8&sp_p=all&sp_f=ISO-8859-1
Spoke company information (spoke.com): http://www.spoke.com/search?utf8=%E2%9C%93&q=Aspen+Group+Inc.
Corporation WIKI (corporationwiki.com): http://www.corporationwiki.com/search/results?term=Aspen+Group+Inc.&x=0&y=0
WHOIS (domaintools.com): http://whois.domaintools.com/http://www.aspen.edu
Alexa (alexa.com): http://www.alexa.com/siteinfo/http://www.aspen.edu#
Corporate website internet archive (archive.org): http://web.archive.org/web/*/http://www.aspen.edu
## FUNDAMENTALS ##
Call Transcripts (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/call-transcripts
Annual Report (companyspotlight.com): http://www.companyspotlight.com/library/companies/keyword/ASPU
Income Statement (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/financials?query=income-statement
Revenue/EPS (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/revenue-eps
SEC Filings (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/sec-filings
Edgar filings (sec.gov): http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001487198&owner=exclude&count=40
Latest filings (otcmarkets.com): http://www.otcmarkets.com/stock/ASPU/filings
Latest financials (otcmarkets.com): http://www.otcmarkets.com/stock/ASPU/financials
Short Interest (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/short-interest
Dividend History (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/dividend-history
RegSho (regsho.com): http://www.regsho.com/tools/symbol_stats.php?sym=ASPU&search=search
OTC Short Report (otcshortreport.com): http://otcshortreport.com/index.php?index=ASPU
Short Sales (otcmarkets.com): http://www.otcmarkets.com/stock/ASPU/short-sales
Key Statistics (yahoo.com): http://finance.yahoo.com/q/ks?s=ASPU+Key+Statistics
Insider Roster (yahoo.com): http://finance.yahoo.com/q/ir?s=ASPU+Insider+Roster
Income Statement (yahoo.com): http://finance.yahoo.com/q/is?s=ASPU
Balance Sheet (yahoo.com): http://finance.yahoo.com/q/bs?s=ASPU
Cash Flow (yahoo.com): http://finance.yahoo.com/q/cf?s=ASPU+Cash+Flow&annual
## HOLDINGS ##
Major holdings (cnbc.com): http://data.cnbc.com/quotes/ASPU/tab/8.1
Insider transactions (yahoo.com): http://finance.yahoo.com/q/it?s=ASPU+Insider+Transactions
Insider transactions (secform4.com): http://www.secform4.com/insider-trading/ASPU.htm
Insider transactions (insidercrow.com): http://www.insidercow.com/history/company.jsp?company=ASPU
Ownership Summary (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/ownership-summary
Institutional Holdings (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/institutional-holdings
Insiders (SEC Form 4) (nasdaq.com): http://www.nasdaq.com/symbol/ASPU/insider-trades
Insider Disclosure (otcmarkets.com): http://www.otcmarkets.com/stock/ASPU/insider-transactions
## SOCIAL MEDIA AND OTHER VARIOUS SOURCES ##
PST (pennystocktweets.com): http://www.pennystocktweets.com/stocks/profile/ASPU
Market Watch (marketwatch.com): http://www.marketwatch.com/investing/stock/ASPU
Bloomberg (bloomberg.com): http://www.bloomberg.com/quote/ASPU:US
Morningstar (morningstar.com): http://quotes.morningstar.com/stock/s?t=ASPU
Bussinessweek (businessweek.com): http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=ASPU
$ASPU DD Notes ~ http://www.ddnotesmaker.com/ASPU
Bid has changed 3 times.... .1805 now
.1801 x .1899
Still keeping an eye on this one .181x.1899
Got a response back to my inquiry, apparently this is how the TA works:
Justeene Blankenship
10:05 AM (28 minutes ago)
to me
It is our policy not to release this information.
Justeene Blankenship
Action Stock Transfer
2469 E. Fort Union Blvd, Suite 214
Salt Lake City, UT 84121
(801) 274-1088 voice
(801) 274-1099 fax
jb@actionstocktransfer.com
www.actionstocktransfer.com
From:
Sent: Tuesday, November 17, 2015 7:12 AM
To: Justeene Blankenship <jb@actionstocktransfer.com>
Subject: Re: ASPU - Aspen Group
Hi Justeene just following up on this inquiry.
On Tue, Nov 10, 2015 at 8:31 PM,
thank you for your response, is the company not allowing action stock transfer to relay this information?
On Tuesday, November 10, 2015, Justeene Blankenship <jb@actionstocktransfer.com> wrote:
Please contact the Company for this information.
Justeene Blankenship
Action Stock Transfer
2469 E. Fort Union Blvd, Suite 214
Salt Lake City, UT 84121
(801) 274-1088 voice
(801) 274-1099 fax
jb@actionstocktransfer.com
www.actionstocktransfer.com
From:
Sent: Tuesday, November 10, 2015 1:28 PM
To: Justeene Blankenship <jb@actionstocktransfer.com>
Subject: ASPU - Aspen Group
Good Evening,
May I please request an update on the stock structure including O/S, A/S, Float for ASPU or Aspen Group.
Emailed the Stock TA for the updated SS and they redirected me to the company which I was not the most happy about.
One stock that might be an intriguing choice for investors right now is AMN Healthcare Services Inc. (AHS - Snapshot Report). This is because this security in the Medical Services space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.
This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Medical Services space as it currently has a Zacks Industry Rank of 16 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there.
Meanwhile, AMN Healthcare is actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm’s prospects in both the short and long term.
In fact, over the past month, current quarter estimates have risen from 32 cents per share to 41 cents per share, while current year estimates have risen from $1.36 per share to $1.58 per share. This has helped AHS to earn a Zacks Rank #1 (Strong Buy), further underscoring the company’s solid position.
So, if you are looking for a decent pick in a strong industry, consider AMN Healthcare. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment.
- See more at: http://www.zacks.com/stock/news/197842/amn-healthcare-services-ahs-strong-industry-solid-earnings-estimate-revisions#sthash.iNt87OCb.dpuf
1 day chart seems like 29.63-29.65 is the next resistance
From Zachs:
Surging Earnings Estimates Signal Good News for AMN Healthcare Services (AHS)
8:41 am ET November 12, 2015 (Zacks) Print
AMN Healthcare Services Inc. AHS is a firm in the Medical Services space that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.
These positive earnings estimate revisions suggest that analysts are becoming more optimistic on AHS’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that AMN Healthcare Services could be a solid choice for investors.
Current Quarter Estimates for AHS
In the past 30 days, 3 estimates have gone higher for AMN Healthcare Services while none have gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 32 cents a share 30 days ago, to 41 cents a share today, a move of 28.1%.
Current Year Estimates for AHS
Meanwhile, AMN Healthcare Services’ current year figures are also looking quite promising, with 3 estimates moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, increasing from $1.36 per share 30 days ago to $1.58 per share today, an increase of 16.2%.
Bottom Line
The stock has also started to move higher lately, adding 6.3% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #1 (Strong Buy) stock to profit in the near future.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AMN HLTHCR SVCS (AHS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
added some at 29.12 to lower average pps.
http://shortsqueeze.com/?symbol=ahs&submit=Short+Quote%99
Short Interest (Shares Short)
2,949,500
Short Interest (Shares Short) - Prior
2,184,600
Short % Increase / Decrease
35 %
Short Percent of Float
6.29 %
Short Interest Ratio (Days To Cover)
2.1
Shares Float
46,870,000
Trading Volume - Today
448,102
Trading Volume - Average
1,416,400
Trading Volume - Today vs. Average
31.64%
% Owned by Insiders
1.64%
% Owned by Institutions
93.00%
Earnings Per Share
1
PE Ratio
34
Market Cap.
$ 1,395,625,200
% From 52-Wk High ($ 37.47)
-19.72%
% From 52-Wk Low ($ 15.62)
92.57%
% From 200-Day MA ($ 30.20)
-0.41%
% From 50-Day MA ($ 30.09)
-0.02%
Sector
Services
Industry
Staffing & Outsourcing Services
Exchange
NY
Record Date
2015-Nov
Getting at 31.08 is looking a bit rough now, however, based on how 4Q is looking for Healthcare Staffing I think AHS will see previous highs.
Thinking about adding additional shares.
thank you so much for the review and guidance for technical
Seeing this reach back to its previous highs for 4th quarter.
Seems to be in that range right now
Georgie could I get your opinion on AS_PU if you have the opportunity or time?
do you have the ability put the buy vs sells?
I think it depends on the total amount of outstanding shares, I believe it based off a percentage. However, my knowledge in regards to these regulations and rules are limited.
While the PPS obviously is important, my thought is that is someone wants to put that much cash in they obviously have some type of inclination or motivation that there might be value, or expect to make some type of return on their investment.
did you see that 1 mill share order???
.1751 x .1899
Aspen Group to Present at the LD Micro Main Event 2015
4:49 pm ET November 9, 2015 (Globe Newswire) Print
Aspen Group, Inc. (OTCBB:ASPU), parent of Aspen University, a nationally accredited online postsecondary education company, announced today that Chairman and CEO Michael Mathews will present at the 8th annual LD Micro Main Event on Thursday, December 3rd at 12:30 PM PST/3:30 PM EST. The two day conference takes place December 2-3, 2015 at the Luxe Sunset Bel Air Hotel in Los Angeles, CA and will feature 200 companies in the small/micro-cap space and host more than 1000 attendees.
About Aspen Group, Inc. (OTCBB:ASPU)
Aspen Group, Inc. is an online postsecondary education company. Aspen University's mission is to offer any motivated college-worthy student the opportunity to receive a high-quality, responsibly priced distance-learning education for the purpose of achieving sustainable economic and social benefits for themselves and their families. Aspen is dedicated to providing the highest quality education experiences taught by top-tier faculty - 61 percent of our adjunct faculty hold doctoral degrees. To learn more about Aspen University, visit www.aspen.edu.
Media Contact:
Aspen Group, Inc.
Michael Mathews, CEO
914-906-9159
http://resource.globenewswire.com/Resource/Download/df26e2a8-d305-441f-b6eb-9e83758129f5?size=1
I still need to go through through financial and have not had the opportunity to do so yet, so I am sure there will be some items that will need to be addressed or of concern.
I went through the transcripts for all the conference calls yesterday, and just noticed the current pps is above the 200 MA at .17
volume at .17
INDEX
Last 10-Q need to go through....
http://www.otcmarkets.com/stock/ASPU/filings
PART I – FINANCIAL INFORMATION
Item 1.
Financial Statements .
1
Consolidated Balance Sheets
1
Consolidated Statements of Operations (Unaudited)
3
Consolidated Statements of Changes in Stockholders Equity (Deficiency) (Unaudited)
4
Consolidated Statements of Cash Flows (Unaudited)
5
Condensed Notes to Consolidated Financial Statements (Unaudited)
6
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
17
Item 3.
Quantitative and Qualitative Disclosures About Market Risk.
24
Item 4.
Controls and Procedures.
24
PART II – OTHER INFORMATION
Item 1.
Legal Proceedings.
25
Item 1A.
Risk Factors.
25
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds.
25
Item 3.
Defaults Upon Senior Securities.
25
Item 4.
Mine Safety Disclosures.
25
Item 5.
Other Information.
25
Item 6.
Exhibits.
25
SIGNATURES
26
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
July 31,
April 30,
2015
2015
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
1,672,730
$
2,159,463
Restricted cash
1,122,485
1,122,485
Accounts receivable, net of allowance of $311,342 and $279,453, respectively
1,285,959
1,058,339
Prepaid expenses
103,372
121,594
Total current assets
4,184,546
4,461,881
Property and equipment:
Call center equipment
132,798
132,798
Computer and office equipment
85,013
78,626
Furniture and fixtures
50,420
42,698
Library (online)
100,000
100,000
Software
2,336,196
2,244,802
2,704,427
2,598,924
Less accumulated depreciation and amortization
(1,512,646
)
(1,387,876
)
Total property and equipment, net
1,191,781
1,211,048
Courseware, net
195,727
173,311
Accounts receivable, secured - related party, net of allowance of $625,963, and $625,963, respectively
45,329
45,329
Other assets
26,677
26,679
Total assets
$
5,644,060
$
5,918,248
(Continued)
The accompanying condensed notes are an integral part of these unaudited consolidated financial statements.
1
ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (CONTINUED)
July 31,
April 30,
2015
2015
(Unaudited)
Liabilities and Stockholders’ Equity (Deficiency)
Current liabilities:
Accounts payable
$
454,430
$
179,109
Accrued expenses
218,244
173,663
Deferred revenue
759,281
784,818
Refunds Due Students
350,157
280,739
Deferred rent
3,751
7,751
Convertible notes payable, current portion
50,000
50,000
Total current liabilities
1,835,863
1,476,080
Line of credit
249,783
243,989
Loan payable officer - related party
1,000,000
1,000,000
Convertible notes payable - related party
600,000
600,000
Total liabilities
3,685,646
3,320,069
Commitments and contingencies - See Note 8
Stockholders’ equity (deficiency):
Common stock, $0.001 par value; 250,000,000 shares authorized, 128,486,938 issued and 128,286,938 outstanding at July 31, 2015, 128,253,605 issued and 128,053,605 outstanding at April 30, 2015
128,487
128,254
Additional paid-in capital
24,977,355
24,898,647
Treasury stock (200,000 shares)
(70,000
)
(70,000
)
Accumulated deficit
(23,077,428
)
(22,358,722
)
Total stockholders’ equity (deficiency)
1,958,414
2,598,179
Total liabilities and stockholders’ equity (deficiency)
$
5,644,060
$
5,918,248
The accompanying condensed notes are an integral part of these unaudited consolidated financial statements.
2
ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months
July 31,
2015
2014
Revenues
$
1,705,861
$
1,169,860
Operating expenses
Cost of revenues (exclusive of depreciation and amortization shown separately below)
774,109
449,098
General and administrative
1,477,617
1,200,216
Depreciation and amortization
143,459
125,607
Total operating expenses
2,395,185
1,774,921
Operating loss from operations
(689,324
)
(605,061
)
Other income (expense):
Other income
3,733
1,671
Interest expense
(33,115
)
(260,871
)
Total other expense, net
(29,382
)
(259,200
)
Loss from operations before income taxes
(718,706
)
(864,261
)
Income tax expense (benefit)
—
—
Net loss
$
(718,706
)
$
(864,261
)
Net loss per share allocable to common stockholders - basic and diluted
$
(0.01
)
$
(0.01
)
Weighted average number of common shares outstanding:
basic and diluted
128,188,025
73,818,014
The accompanying condensed notes are an integral part of these unaudited consolidated financial statements.
3
ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIENCY)
FOR THE THREE MONTHS ENDED JULY 31, 2015
(Unaudited)
Total
Additional
Stockholders'
Common Stock
Paid-In
Treasury
Accumulated
Equity
Shares
Amount
Capital
Stock
Deficit
(Deficiency)
Balance at April 30, 2015
128,253,605
$
128,254
$
24,898,647
$
(70,000
)
$
(22,358,722
)
$
2,598,179
Issuance of stock for services
233,333
233
(233
)
—
—
—
Stock-based compensation
—
—
72,941
—
—
72,941
Warrant Conversion Expense
—
—
6,000
—
—
6,000
Net loss, three months ended July 31, 2015
—
—
—
—
(718,706
)
(718,706
)
Balance at July 31, 2015
128,486,938
$
128,487
$
24,977,355
$
(70,000
)
$
(23,077,428
)
$
1,958,414
The accompanying condensed notes are an integral part of these unaudited consolidated financial statements.
4
ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
For the
Three Months Ended
July 31,
2015
2014
Cash flows from operating activities:
Net loss
$
(718,706
)
$
(864,261
)
Adjustments to reconcile net loss to net cash used in operating activities:
Bad debt expense
31,889
105,511
Amortization of debt issuance costs
—
56,440
Amortization of debt discount
—
124,343
Depreciation and amortization
143,459
125,607
Stock-based compensation
72,941
97,203
Warrant modification expense
6,000
—
Changes in operating assets and liabilities:
Accounts receivable
(259,509
)
(127,344
)
Prepaid expenses
18,221
(47,367
)
Other assets
2
—
Accounts payable
275,321
81,876
Accrued expenses
44,581
26,231
Deferred rent
(4,000
)
(3,179
)
Refunds due students
69,418
68,599
Deferred revenue
(25,537
)
(29,366
)
Net cash used in operating activities
(345,920
)
(385,707
)
Cash flows from investing activities:
Purchases of property and equipment
(105,503
)
(82,869
)
Purchases of courseware
(41,104
)
(38,823
)
Increase in restricted cash
—
(29,927
)
Net cash used in investing activities
(146,607
)
(151,619
)
Cash flows from financing activities:
Proceeds from (repayments on) line of credit, net
5,794
(147
)
Proceeds from issuance of common shares and warrants, net
—
1,781,500
Offering costs associated with private placement
—
(75,000
)
Net cash provided by financing activities
5,794
1,706,353
Net (decrease) increase in cash and cash equivalents
(486,733
)
1,169,027
Cash and cash equivalents at beginning of period
2,159,463
247,380
Cash and cash equivalents at end of period
$
1,672,730
$
1,416,407
Supplemental disclosure of cash flow information:
Cash paid for interest
$
28,876
$
70,307
Cash paid for income taxes
$
—
$
—
The accompanying condensed notes are an integral part of these unaudited consolidated financial statements.
5
ASPEN GROUP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
July 31, 2015
(Unaudited)
Note 1. Nature of Operations and Liquidity
Overview
Aspen Group, Inc. (together with its subsidiary, the “Company” or “Aspen”) is a holding company. Its subsidiary Aspen University Inc. was founded in Colorado in 1987 as the International School of Information Management. On September 30, 2004, it changed its name to Aspen University Inc. (“Aspen University”). On March 13, 2012, the Company was recapitalized in a reverse merger. All references to the Company or Aspen before March 13, 2012 are to Aspen University.
Aspen’s mission is to offer any motivated college-worthy student the opportunity to receive a high quality, responsibly priced distance-learning education for the purpose of achieving sustainable economic and social benefits for themselves and their families. Aspen is dedicated to providing the highest quality education experiences taught by top-tier professors - 60% of our adjunct professors hold doctorate degrees.
Because we believe higher education should be a catalyst to our students’ long-term economic success, we exert financial prudence by offering affordable tuition that is one of the greatest values in online higher education. Early in 2014, Aspen University unveiled a monthly payment plan aimed at reversing the college-debt sentence plaguing working-class Americans.
On November 10, 2014, Aspen University announced the Commission on Collegiate Nursing Education (“CCNE”) has granted accreditation to its Bachelor of Science in Nursing program (RN to BSN) until December 31, 2019.
Since 1993, we have been nationally accredited by the Distance Education and Accrediting Council (“DEAC”), a national accrediting agency recognized by the U.S. Department of Education (the “DOE”). On February 25, 2015, the DEAC informed Aspen University that it had renewed its accreditation for five years to January, 2019.
Basis of Presentation
A. Interim Financial Statements
The interim consolidated financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of the Company’s management, all adjustments (consisting of normal recurring adjustments and reclassifications and non-recurring adjustments) necessary to present fairly our results of operations for the three months ended July 31, 2015 and 2014, our cash flows for the three months ended July 31, 2015 and 2014, and our financial position as of July 31, 2015 have been made. The results of operations for such interim periods are not necessarily indicative of the operating results to be expected for the full year.
Certain information and disclosures normally included in the notes to the annual consolidated financial statements have been condensed or omitted from these interim consolidated financial statements. Accordingly, these interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Report on Form 10-K for the period ended April 30, 2015 as filed with the SEC on July 29, 2015. The April 30, 2015 balance sheet is derived from those statements.
6
ASPEN GROUP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
July 31, 2015
(Unaudited)
B. Liquidity
At July 31, 2015, the Company had a cash balance of approximately $2.8 million which includes $1.1 million of restricted cash. In April 2015, the Company offered a warrant conversion, through which the Company issued 14,747,116 shares, raising $2,268,670. In fiscal 2015, the Company completed an equity financing of $5,547,826. With the additional cash raised in the financing, the growth in the Company revenues and improving operating margins, the Company believes that it has sufficient cash to allow the Company to implement its long-term business plan.
Note 2. Significant Accounting Policies
Principles of Consolidation
The unaudited consolidated financial statements include the accounts of Aspen Group, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of the unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts in the unaudited consolidated financial statements. Actual results could differ from those estimates. Significant estimates in the accompanying unaudited consolidated financial statements include the allowance for doubtful accounts and other receivables, the valuation of collateral on certain receivables, amortization periods and valuation of courseware and software development costs, valuation of beneficial conversion features in convertible debt, valuation of stock-based compensation and the valuation allowance on deferred tax assets.
Cash and Cash Equivalents
For the purposes of the unaudited consolidated statements of cash flows, the Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents at July 31, 2015 and April 30, 2015 respectively. The Company maintains its cash in bank and financial institution deposits that at times may exceed federally insured limits of $250,000 per financial institution. The Company has not experienced any losses in such accounts from inception through July 31, 2015. As of July 31, 2015, there were deposits of $22,947, $1,274,409, and $940,012 in three institutions greater than the federally insured limits.
Restricted Cash
Restricted cash represents amounts pledged as security for letters of credit for transactions involving Title IV programs. The company considers $1,122,485 as restricted cash and that balance is shown as a current asset as of both July 31, 2015 and April 30, 2015.
Fair Value Measurements
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The Company classifies assets and liabilities recorded at fair value under the fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. The fair value measurements are classified under the following hierarchy:
Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets and liabilities in active markets;
7
ASPEN GROUP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
July 31, 2015
(Unaudited)
Level 2—Observable inputs, other than quoted market prices, that are either directly or indirectly observable in the marketplace for identical or similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities; and
Level 3—Unobservable inputs that are supported by little or no market activity that are significant to the fair value of assets or liabilities.
The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments.
Refunds Due Students
The Company receives Title IV funds from the Department of Education to cover tuition and living expenses. Until forwarded to the student, this amount is captured in a current liability account called Refunds Due Students. Typically, the funds are paid to the students within two weeks.
Revenue Recognition and Deferred Revenue
Revenues consist primarily of tuition and fees derived from courses taught by the Company online as well as from related educational resources that the Company provides to its students, such as access to our online materials and learning management system. Tuition revenue is recognized pro-rata over the applicable period of instruction. The Company allows a student to make three monthly tuition payments during each 10-week class. The Company maintains an institutional tuition refund policy, which provides for all or a portion of tuition to be refunded if a student withdraws during stated refund periods. Certain states in which students reside impose separate, mandatory refund policies, which override the Company’s policy to the extent in conflict. If a student withdraws at a time when a portion or none of the tuition is refundable, then in accordance with its revenue recognition policy, the Company recognizes as revenue the tuition that was not refunded. Since the Company recognizes revenue pro-rata over the term of the course and because, under its institutional refund policy, the amount subject to refund is never greater than the amount of the revenue that has been deferred, under the Company’s accounting policies revenue is not recognized with respect to amounts that could potentially be refunded. The Company’s educational programs have starting and ending dates that differ from its fiscal quarters. Therefore, at the end of each fiscal quarter, a portion of revenue from these programs is not yet earned and is therefore deferred. The Company also charges students annual fees for library, technology and other services, which are recognized over the related service period. Deferred revenue represents the amount of tuition, fees, and other student payments received in excess of the portion recognized as revenue and it is included in current liabilities in the accompanying consolidated balance sheets. Other revenues may be recognized as sales occur or services are performed.
Net Loss Per Share
Net loss per common share is based on the weighted average number of common shares outstanding during each period. Options to purchase 15,897,313 and 10,686,412 common shares, warrants to purchase 28,871,757 and 31,858,524 common shares, and $650,000 and $650,000 of convertible debt (convertible into 1,207,143 and 1,207,143 common shares, respectively) were outstanding during the three months ended July 31, 2015 and 2014, respectively, but were not included in the computation of diluted loss per share because the effects would have been anti-dilutive. The options, warrants and convertible debt are considered to be common stock equivalents and are only included in the calculation of diluted earnings per common share when their effect is dilutive.
Recent Accounting Pronouncements
Financial Accounting Standards Board, Accounting Standard Updates which are not effective until after July 31, 2015 are not expected to have a significant effect on the Company’s unaudited consolidated financial position or results of operations.
8
ASPEN GROUP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
July 31, 2015
(Unaudited)
Note 3. Secured Note and Accounts Receivable – Related Parties
On March 30, 2008 and December 1, 2008, the Company sold courseware pursuant to marketing agreements to Higher Education Management Group, Inc. (“HEMG”,) which was then a related party and principal stockholder of the Company. HEMG’s president is Mr. Patrick Spada, the former Chairman of the Company, in the amount of $455,000 and $600,000, respectively; UCC filings were filed accordingly. Under the marketing agreements, the receivables were due net 60 months. On September 16, 2011, HEMG pledged 772,793 Series C preferred shares (automatically converted to 654,850 common shares on March 13, 2012) of the Company as collateral for this account receivable which at that time had a remaining balance of $772,793. On March 8, 2012, due to the impending reduction in the value of the collateral as the result of the Series C conversion ratio and the Company’s inability to engage Mr. Spada in good faith negotiations to increase HEMG’s pledge, Michael Mathews, the Company’s CEO, pledged 117,943 common shares of the Company, owned personally by him, valued at $1.00 per share based on recent sales of capital stock as additional collateral to the accounts receivable, secured – related party. On March 13, 2012, the Company deemed the receivables stemming from the sale of courseware curricula to be in default. On April 4, 2012, the Company entered into an agreement with: (i) an individual, (ii) HEMG, and (iii) Mr. Patrick Spada. Under the agreement, (a) the individual purchased and HEMG sold to the individual 400,000 common shares of the Company at $0.50 per share; (b) the Company guaranteed it would purchase at least 600,000 common shares of the Company at $0.50 per share within 90 days of the agreement and the Company would use its best efforts to purchase from HEMG and resell to investors an additional 1,400,000 common shares of the Company at $0.50 per share within 180 days of the agreement; and (c) the Company waived any default of the accounts receivable, secured - related party and extended the due date to September 30, 2014. Based on proceeds received on September 28, 2012 under a private placement at $0.35 per unit (consisting of one share of common stock and one-half of a warrant exercisable at $0.50 per share), the value of the aforementioned collateral decreased. Accordingly, as of December 31, 2012, the Company recognized an allowance of $502,315 for this account receivable. Based on the reduction in value of the collateral to $0.19, the Company recognized an expense of $123,647 during the year ended April 30, 2014 as an additional allowance. As of July 31, 2015 and April 30, 2015, the balance of the account receivable, net of allowance, was $45,329.
HEMG has failed to pay to Aspen University any portion of the $772,793 amount due as of September 30, 2014, despite due demand for same. Consequently, on November 18, 2014 Aspen University filed a complaint vs. HEMG in the United States District Court for the District of New Jersey, to collect the full amount due to the Company. HEMG defaulted. In addition, Aspen University gave notice to HEMG that it intended to privately sell the 654,850 shares after March 10, 2015. On April 29, 2015, the Company sold those shares to a private investor for $0.155 per share or $101,502, which proceeds reduced the receivable balance to $671,291 with a remaining allowance of $625,963, resulting in a net receivable of $45,329. (See Notes 8 and 10)
Note 4. Property and Equipment
Property and equipment consisted of the following at July 31, 2015 and April 30, 2015:
July 31,
April 30,
2015
2015
Call center hardware
$
132,798
$
132,798
Computer and office equipment
85,013
78,626
Furniture and fixtures
50,420
42,698
Library (online)
100,000
100,000
Software
2,336,196
2,244,802
2,704,427
2,598,924
Accumulated depreciation and amortization
(1,512,646
)
(1,387,876
)
Property and equipment, net
$
1,191,781
$
1,211,048
9
ASPEN GROUP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
July 31, 2015
(Unaudited)
Software consisted of the following at July 31, 2015 and April 30, 2015:
July 31,
April 30,
2015
2015
Software
$
2,336,196
$
2,244,802
Accumulated amortization
(1,244,285
)
(1,130,453
)
Software, net
$
1,091,911
$
1,114,349
Amortization expense for all Property and Equipment as well as the portion for just software is presented for the three months ended July 31, 2015 and 2014:
For the
Three Months Ended
July 31,
2015
2014
Depreciation and Amortization Expense
124,770
105,395
Software Amortization Expense
113,832
95,977
The following is a schedule of estimated future amortization expense of software at July 31, 2015:
Year Ending April 30,
2016
$
349,584
2017
343,661
2018
210,626
2019
127,453
2020
60,587
Total
$
1,091,911
Note 5. Courseware
Courseware costs capitalized were $41,104 and $38,823 for the three months ended July 31, 2015 and 2014 respectively.
Courseware consisted of the following at July 31, 2015 and April 30, 2015:
July 31,
April 30,
2015
2015
Courseware
$
2,288,894
$
2,247,790
Accumulated amortization
(2,093,167
)
(2,074,479
)
Courseware, net
$
195,727
$
173,311
Amortization expense of courseware for the three months ended July 31, 2015 and 2014:
For the
Three Months Ended
July 31,
2015
2014
Amortization Expense
18,688
20,212
10
ASPEN GROUP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
July 31, 2015
(Unaudited)
The following is a schedule of estimated future amortization expense of courseware at July 31, 2015:
Year Ending April 30,
2016
$
46,134
2017
47,367
2018
39,278
2019
37,805
2020
25,143
Total
$
195,727
Note 6. Loan Payable Officer – Related Party
On June 28, 2013, the Company received $1,000,000 as a loan from the Company’s Chief Executive Officer. This loan was for a term of 6 months with an annual interest rate of 10%, payable monthly. Through various note extensions, the debt was extended to February 28, 2017. There was no accounting effect for these extensions.
Note 7. Convertible Notes, Convertible Notes – Related Party and Debenture Payable
On February 29, 2012, a loan payable of $50,000 was converted into a two-year convertible promissory note, bearing interest of 0.19% per annum. Beginning March 31, 2012, the note was convertible into common shares of the Company at the rate of $1.00 per share. The Company evaluated the convertible note and determined that, for the embedded conversion option, there was no beneficial conversion value to record as the conversion price is considered to be the fair market value of the common shares on the note issue date. The loan (now convertible promissory note) was originally due in February 2014. The amount due under this note has been reserved for payment upon the note being tendered to the Company by the note holder.
On March 13, 2012, the Company’s CEO loaned the Company $300,000 and received a convertible promissory note due March 31, 2013, bearing interest at 0.19% per annum. The note is convertible into common shares of the Company at the rate of $1.00 per share upon five days written notice to the Company. The Company evaluated the convertible note and determined that, for the embedded conversion option, there was no beneficial conversion value to record as the conversion price is considered to be the fair market value of the common shares on the note issue date. Through various note extensions, the debt was extended to February 28, 2017. There was no accounting effect for these modifications.
On August 14, 2012, the Company’s CEO loaned the Company $300,000 and received a convertible promissory note, payable on demand, bearing interest at 5% per annum. The note is convertible into shares of common stock of the Company at a rate of $0.35 per share (based on proceeds received on September 28, 2012 under a private placement at $0.35 per unit). The Company evaluated the convertible notes and determined that, for the embedded conversion option, there was no beneficial conversion value to record as the conversion price is considered to be the fair market value of the shares of common stock on the note issue date. Through various note extensions, the debt was extended to February 28, 2017. There was no accounting effect for these modifications.
Note 8. Commitments and Contingencies
Line of Credit
The Company maintains a line of credit with a bank, up to a maximum credit line of $250,000. The line of credit bears interest equal to the prime rate plus 0.50% (overall interest rate of 3.75% at July 31, 2015). The line of credit requires minimum monthly payments consisting of interest only. The line of credit is secured by all business assets, inventory, equipment, accounts, general intangibles, chattel paper, documents, instruments and letter of credit rights of the Company. The line of credit is for an unspecified time until the bank notifies the Company of the Final Availability Date, at which time monthly payments on the line of credit become the sum of: (a) accrued interest and (b) 1/60th of the unpaid principal balance immediately following the Final Availability Date, which equates to a five-year payment period. The balance due on the line of credit as of July 31, 2015 was $249,783. Since the earliest the line of credit is due and payable is over a five year period and the Company believes that it could obtain a comparable replacement line of credit elsewhere, the entire line of credit is included in long-term liabilities. The unused amount under the line of credit available to the Company at July 31, 2015 was $217.
11
ASPEN GROUP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
July 31, 2015
(Unaudited)
Employment Agreements
From time to time, the Company enters into employment agreements with certain of its employees. These agreements typically include bonuses, some of which are performance-based in nature. As of July 31, 2015, no performance bonuses have been earned.
Legal Matters
From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. As of July 31, 2015, except as discussed below, there were no other pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of our operations and there are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.
On February 11, 2013, HEMG and Mr. Spada sued the Company, certain senior management members and our directors in state court in New York seeking damages arising principally from (i) allegedly false and misleading statements in the filings with the SEC and the DOE where the Company disclosed that HEMG and Mr. Spada borrowed $2.2 million without board authority, (ii) the alleged breach of an April 2012 agreement whereby the Company had agreed, subject to numerous conditions and time limitations, to purchase certain shares of the Company from HEMG, and (iii) alleged diminution to the value of HEMG’s shares of the Company due to Mr. Spada’s disagreement with certain business transactions the Company engaged in, all with Board approval. On November 8, 2013, the state court in New York granted the Company’s motion to dismiss all of the derivative claims and all of the fiduciary duty claims. The state court in New York also granted the Company’s motion to dismiss the duplicative breach of good faith and fair dealing claim, as well as the defamation claim. The state court in New York denied the Company’s motion to dismiss as to the defamation per se claim. On December 10, 2013, the Company filed a series of counterclaims against HEMG and Mr. Spada in state court of New York. Discovery is currently being pursued by the parties. By decision and order dated August 4, 2014, the New York court denied HEMG and Spada’s motion to dismiss the fraud counterclaim the Company asserted against them. The New York court dismissed the Company’s related “money had and received”, “money lent” and “unjust enrichment” counterclaims as being duplicative of the fraud counterclaim; however by decision dated April 30, 2015, the Court reinstated the Company’s “money had and received”, “money lent” and “unjust enrichment” counterclaims, and denied HEMG’s and Spada’s second request for dismissal of the Company’s fraud counterclaim.
As previously reported, HEMG and Mr. Spada filed a derivative suit on behalf of the Company against certain former senior management member and our directors in state court in Delaware. The Company was a nominal defendant. The complaint was substantially similar to the complaint filed in state court of New York. On November 3, 2014, the Chancery Court of the State of Delaware dismissed the shareholders’ derivative lawsuit of Mr. Patrick Spada and Higher Education Management Group, Inc. against Aspen Group, Inc., certain members of the Company’s Board of Directors and former Chief Financial Officer (collectively, the “Defendants”). The Court granted the Defendant’s Motion to Dismiss in its entirety with prejudice. The Plaintiff’s have not taken an appeal and the time to do so has expired.
While the Company has been advised by its counsel that HEMG’s and Spada’s claims in the New York lawsuit is baseless, the Company cannot provide any assurance as to the ultimate outcome of the case. Defending the lawsuit will be expensive and will require the expenditure of time which could otherwise be spent on the Company’s business. While unlikely, if Mr. Spada’s and HEMG’s claims in the New York litigation were to be successful, the damages the Company could pay could potentially be material.
On November 18, 2014, the Company filed a complaint against HEMG in the United States District Court for the District of New Jersey for failure to pay (despite demand) to the Company any portion of the $772,793 amount overdue. The Company is seeking to collect the full amount due. HEMG failed to answer the complaint and as a result the Court entered a default against HEMG.
12
ASPEN GROUP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
July 31, 2015
(Unaudited)
On or about February 20, 2015, Aspen Group, Inc. filed a motion in the United States District Court, District of New Jersey, seeking the entry of a money judgment on default against Defendant, HEMG, in the amount of $772,793, plus interest, costs, disbursements, and any other relief the Court deems just and proper. Aspen University gave notice to HEMG that it intended to privately sell the 654,850 shares held as collateral after March 10, 2015. On April 29, 2015, the Company sold those shares to a private investor for $0.155 per share or $101,502, which proceeds reduced the receivable balance to $671,291. (See Note 3)
On August 13, 2015, a former employee filed a complaint against the Company in the United States District Court, District of Arizona, for breach of contract claiming that Plaintiff was terminated for “Cause” when no cause existed. Plaintiff is seeking the remaining amounts under her employment agreement, severance pay, bonuses, value of lost benefits, and the loss of the value of her stock options. The Company filed an answer to the complaint by the September 8, 2015 deadline.
Regulatory Matters
The Company’s subsidiary, Aspen University, is subject to extensive regulation by Federal and State governmental agencies and accrediting bodies. In particular, the Higher Education Act (the “HEA”) and the regulations promulgated thereunder by the DOE subject Aspen University to significant regulatory scrutiny on the basis of numerous standards that schools must satisfy to participate in the various types of federal student financial assistance programs authorized under Title IV of the HEA. Aspen University has had provisional certification to participate in the Title IV programs. That provisional certification imposes certain regulatory restrictions including, but not limited to, a limit of 1,200 student recipients for Title IV funding for the duration of the provisional certification. The provisional certification restrictions continue with regard to Aspen University’s participation in Title IV programs.
To participate in the Title IV programs, an institution must be authorized to offer its programs of instruction by the relevant agencies of the State in which it is located. An institution must also be authorized to offer its programs in the States where the institution offers postsecondary education through distance education. In addition, an institution must be accredited by an accrediting agency recognized by the DOE and certified as eligible by the DOE. The DOE will certify an institution to participate in the Title IV programs only after the institution has demonstrated compliance with the HEA and the DOE’s extensive academic, administrative, and financial regulations regarding institutional eligibility and certification. An institution must also demonstrate its compliance with these requirements to the DOE on an ongoing basis. Aspen University performs periodic reviews of its compliance with the various applicable regulatory requirements. As Title IV funds received in fiscal 2015 represented approximately 33% of the Company's cash basis revenues (including revenues from discontinued operations), as calculated in accordance with Department of Education guidelines, the loss of Title IV funding would have a material effect on the Company's future financial performance.
On March 27, 2012 and on August 31, 2012, Aspen University provided the DOE with letters of credit for which the due date was extended to December 31, 2013. On January 30, 2014, the DOE provided Aspen University with an option to become permanently certified by increasing the letter of credit to 50% of all Title IV funds received in the last program year, equaling $1,696,445, or to remain provisionally certified by increasing the 25% letter of credit to $848,225. Aspen informed the DOE of its desire to remain provisionally certified and posted the $848,225 letter of credit for the DOE on April 14, 2014. On February 26, 2015, Aspen University was informed by the DOE that it again has the option to become permanently certified by increasing the letter of credit to 50% of all Title IV funds received in the last program year, equaling $2,244,971, or to remain provisionally certified by increasing the existing 25% letter of credit to $1,122,485. Aspen informed the DOE on March 3, 2015 of its desire to remain provisionally certified and post the $1,122,485 letter of credit for the DOE by April 30, 2015. The DOE may impose additional or different terms and conditions in any final provisional program participation agreement that it may issue (See Note 2 “Restricted Cash”).
The HEA requires accrediting agencies to review many aspects of an institution's operations in order to ensure that the education offered is of sufficiently high quality to achieve satisfactory outcomes and that the institution is complying with accrediting standards. Failure to demonstrate compliance with accrediting standards may result in the imposition of probation, the requirements to provide periodic reports, the loss of accreditation or other penalties if deficiencies are not remediated.
13
ASPEN GROUP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
July 31, 2015
(Unaudited)
Because Aspen University operates in a highly regulated industry, it may be subject from time to time to audits, investigations, claims of noncompliance or lawsuits by governmental agencies or third parties, which allege statutory violations, regulatory infractions or common law causes of action.
On February 25, 2015, the DEAC informed Aspen University that it had renewed its accreditation for five years to January, 2019.
Return of Title IV Funds
An institution participating in Title IV programs must correctly calculate the amount of unearned Title IV program funds that have been disbursed to students who withdraw from their educational programs before completion and must return those unearned funds in a timely manner, no later than 45 days of the date the school determines that the student has withdrawn. Under Department regulations, failure to make timely returns of Title IV program funds for 5% or more of students sampled on the institution's annual compliance audit in either of its two most recently completed fiscal years can result in the institution having to post a letter of credit in an amount equal to 25% of its required Title IV returns during its most recently completed fiscal year. If unearned funds are not properly calculated and returned in a timely manner, an institution is also subject to monetary liabilities or an action to impose a fine or to limit, suspend or terminate its participation in Title IV programs.
Subsequent to a program review by the Department of Education, the Company recognized that it had not fully complied with all requirements for calculating and making timely returns of Title IV funds (R2T4). In November 2013, the Company returned a total of $102,810 of Title IV funds to the Department of Education.
Delaware Approval to Confer Degrees
Aspen University is a Delaware corporation. Delaware law requires an institution to obtain approval from the Delaware Department of Education (“Delaware DOE”) before it may incorporate with the power to confer degrees. In July 2012, Aspen received notice from the Delaware DOE that it is granted provisional approval status effective until June 30, 2015 and is currently in the process of applying for either an extension of its provisional approval status or obtain permanent approval status. Aspen University is authorized by the Colorado Commission on Education to operate in Colorado as a degree granting institution.
Letter of Credit
The Company maintains a letter of credit under a DOE requirement (See Note 2 “Restricted Cash”).
Note 9. Stockholders’ Equity (Deficiency)
Common Stock
On June 8, 2015, in exchange for the termination of a consulting agreement with a Director, the Company issued 300,000 restricted stock units (with the value of $50,400 based on the market value on the grant date). Two-thirds are fully vested and the remaining balance vests in six equal monthly installments commencing on June 30, 2015. At July 31, 2015, 233,333 shares were vested and the Company recorded an expense of $39,144.
14
ASPEN GROUP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
July 31, 2015
(Unaudited)
Warrants
A summary of the Company’s warrant activity during the three months ended July 31, 2015 is presented below:
Weighted
Weighted
Average
Average
Remaining
Aggregate
Number of
Exercise
Contractual
Intrinsic
Warrants
Shares
Price
Term
Value
Balance Outstanding, April 30, 2015
28,871,757
$
0.26
3.5
—
Granted
—
—
—
—
Exercised
—
—
—
—
Forfeited
—
—
—
—
Expired
—
—
—
—
Balance Outstanding, July 31, 2015
28,871,757
$
0.26
3.5
$
—
Exercisable, July 31, 2015
28,871,757
$
0.26
3.5
$
—
Certain of the Company’s warrants contain price protection. The Company evaluated whether the price protection provision of the warrant would cause derivative treatment. In its assessment, the Company determined that since its shares are not readily convertible to cash due to an inactive trading market, through April 30, 2015 the warrants are excluded from derivative treatment.
Stock Incentive Plan and Stock Option Grants to Employees and Directors
Immediately following the closing of the Reverse Merger, on March 13, 2012, the Company adopted the 2012 Equity Incentive Plan (the “Plan”) that provides for the grant of 9,300,000 shares, 14,300,000 effective July 2014 and 16,300,000 effective September 2014, in the form of incentive stock options, non-qualified stock options, restricted shares, stock appreciation rights and restricted stock units to employees, consultants, officers and directors. As of July 31, 2015, there were 927,687 shares remaining under the Plan for future issuance.
The Company estimates the fair value of share-based compensation utilizing the Black-Scholes option pricing model, which is dependent upon several variables such as the expected option term, expected volatility of the Company’s stock price over the expected term, expected risk-free interest rate over the expected option term, expected dividend yield rate over the expected option term, and an estimate of expected forfeiture rates. The Company believes this valuation methodology is appropriate for estimating the fair value of stock options granted to employees and directors which are subject to ASC Topic 718 requirements. These amounts are estimates and thus may not be reflective of actual future results, nor amounts ultimately realized by recipients of these grants. The Company recognizes compensation on a straight-line basis over the requisite service period for each award.
A summary of the Company’s stock option activity for employees and directors during the three months ended July 31, 2015 is presented below:
Weighted
Weighted
Average
Average
Remaining
Aggregate
Number of
Exercise
Contractual
Intrinsic
Options
Shares
Price
Term
Value
Balance Outstanding, April 30, 2015
14,206,412
$
0.21
3.5
$
103,000
Granted
2,000,000
$
0.17
4.9
—
Exercised
—
—
—
—
Forfeited
(504,099
)
$
0.35
2.2
—
Expired
—
—
—
—
Balance Outstanding, July 31, 2015
15,702,313
$
0.20
3.2
$
147,000
Exercisable, July 31, 2015
5,769,272
$
0.23
2.4
$
4,000
15
ASPEN GROUP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
July 31, 2015
(Unaudited)
On June 8, 2015, the Chief Academic Officer received a grant of 1,000,000 options which has a fair value of $60,000, the Chief Operating Officer received a grant of 700,000 options which has a fair value of $42,000 and the Chief Financial Officer received a grant of 300,000 options which has a fair value of $18,000. All of these options have an exercise price of $0.168 per share.
As of July 31, 2015, there was approximately $519,412 of unrecognized compensation costs related to nonvested share-based compensation arrangements. That cost is expected to be recognized over a weighted-average period of 3.2 years.
The Company recorded compensation expense of $72,941 for the 3 months ended July 31, 2015 in connection with employee stock options. The Company recorded compensation expense of $97,203 for the three months ended July 31, 2014 in connection with employee stock options.
Stock Option Grants to Non-Employees
There were no stock options granted to non-employees during the three months ended July 31, 2015. The Company recorded no compensation expense for the three months ended July 31, 2015 in connection with non-employee stock options.
There was no unrecognized compensation cost at July 31, 2015.
A summary of the Company's stock option activity for non-employees during the three months ended July 31, 2015 is presented below:
Weighted
Average
Average
Remaining
Aggregate
Number of
Exercise
Contractual
Intrinsic
Options
Shares
Price
Term
Value
Balance Outstanding, April 30, 2015
220,000
$
0.30
2.1
$
—
Granted
—
—
—
—
Exercised
—
—
—
—
Forfeited
(25,000
)
$
0.19
3.0
$
—
Expired
—
—
—
—
Balance Outstanding, July 31, 2015
195,000
$
0.31
1.7
$
—
Exercisable, July 31, 2015
195,000
$
0.31
1.7
$
—
Note 10. Related Party Transactions
See Note 3 for discussion of secured note and account receivable to related parties and see Notes 6 and 7 for discussion of loans payable and convertible notes payable to related parties.
16
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
You should read the following discussion in conjunction with our unaudited consolidated financial statements, which are included elsewhere in this Form 10-Q. Management’s Discussion and Analysis of Financial Condition and Results of Operations contain forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed in the Risk Factors contained in the Annual Report on Form 10-K filed on July 28, 2015 with the Securities and Exchange Commission, or the SEC.
All references to “we,” “our” and “us” refer to Aspen Group, Inc. and its subsidiaries (including Aspen), unless the context otherwise indicates. In referring to academic matters, these words refer solely to Aspen University.
Company Overview
Founded in 1987, Aspen’s mission is to offer any motivated college-worthy student the opportunity to receive a high quality, responsibly priced distance-learning education for the purpose of achieving sustainable economic and social benefits for themselves and their families. Aspen is dedicated to providing the highest quality education experiences taught by top-tier professors - 60% of our adjunct professors hold doctorate degrees.
Because we believe higher education should be a catalyst to our students’ long-term economic success, we exert financial prudence by offering affordable tuition that is one of the greatest values in online higher education. Last year, Aspen University unveiled a monthly payment plan aimed at reversing the college-debt sentence plaguing working-class Americans. The monthly payment plan offers bachelor students (except nursing) the opportunity to pay $250/month for 72 months ($18,000), nursing bachelor students (RN to BSN) $250/month for 39 months ($9,750), master students $325/month for 36 months ($11,700) and doctoral students $375 per month for 72 months ($27,000), interest free, thereby giving students the ability to earn a degree debt free.
Student Population
Aspen’s full-time degree-seeking student body increased year-over-year by 38% during the quarter ended July 31, 2015, from 2,624 to 3,609 students.
Our most popular school is our School of Nursing. Aspen’s School of Nursing has grown from 35% of our full-time, degree-seeking student body at July 31, 2014, to 44% of our full-time, degree-seeking student body at July 31, 2015. Aspen’s School of Nursing grew from 920 to 1,604 student’s year-over-year, which represented 69% of Aspen’s full-time degree-seeking student body growth. At July 31, 2015, Aspen’s School of Nursing included 439 students in the RN to BSN program and 1,165 students in the RN to MSN Bridge program or MSN program.
New Student Enrollment Overview
Since the launch of the BSN marketing campaign in mid-November, 2014, Aspen’s growth rate of new student enrollments has accelerated significantly. Typically, it takes 60-90 days for a new student lead to convert into an enrollment. However, Aspen began seeing BSN leads convert to new student enrollments at the beginning of January 2015, only six weeks following the marketing campaign launch.
Aspen has updated its definition of a new student enrollment to only report those new students that complete their first seven day assignment of their first course in their degree program. Based on that definition, below is a quarterly analysis of new student enrollments for the past six quarters, including the recent quarter ending July 31, 2015. Note that in the recent quarter ending July 31, 2015, new student enrollments were up 81% year-over-year, from 226 to 410.
New Student Enrollments
Fiscal Quarter End April 30, 2014
235
Fiscal Quarter End July 31, 2014
226
Fiscal Quarter End October 31, 2014
265
Fiscal Quarter End January 31, 2015
315
Fiscal Quarter End April 30, 2015
444
Fiscal Quarter End July 31, 2015
410
17
Results of Operations
For the Three Months Ended July 31, 2015 Compared with the Three Months Ended July 31, 2014
Revenue
Revenue from continuing operations for the three months ended July 31, 2015 (“2015 Quarter”) increased to $1,705,861 from $1,169,860 for the three months ended July 31, 2014 (“2014 Quarter”), an increase of 46%. The increase is primarily attributable to the growth in Aspen’s School of Nursing student enrollments and Nursing student class starts. Specifically, revenues from Aspen’s School of Nursing increased to $881,783 during the 2015 Quarter from $395,075 during the 2014 Quarter, an increase of 123%. Aspen’s School of Nursing for the first time now represents the majority of Aspen’s revenues at 52%.
Cost of Revenues (exclusive of amortization)
The Company’s cost of revenues consist of instructional costs and services and marketing and promotional costs.
Instructional Costs and Services
Instructional costs and services for the 2015 Quarter rose to $386,067 from $269,833 for the 2014 Quarter, an increase of $116,234 or 43%. As student enrollment levels increase, instructional costs and services should rise proportionately. However, as Aspen increases its full-time degree-seeking student enrollments and related class starts, the higher gross margins associated with such students should lead to the growth rate in instructional costs and services to lag that of overall revenue growth.
Marketing and Promotional
Marketing and promotional costs for the 2015 Quarter were $388,042 compared to $179,265 for the 2014 Quarter, an increase of $208,777 or 116%. This increase reflects an increased monthly internet advertising budget to $120,000, starting in May, 2014. The planned spending increase was previously announced following the CCNE accreditation announcement of Aspen’s BSN program in November, 2014.
As a result of the planned marketing spending increase in the 2015 quarter, Gross Profit was 47% of revenues or $799,232 for the 2015 Quarter compared to 52% of revenues or $604,572 for the 2014 Quarter. The increase of Gross Profit from $604,572 to $799,232 is an increase of $194,660 or 32% year-over-year. Gross Profit (exclusive of amortization), a non-GAAP financial measure, was 55% of revenues or $931,752 for the 2015 Quarter from 62% of revenues or $720,762 for the 2014 Quarter. The increase of Gross Profit (exclusive of amortization) from $720,762 to $931,752 is an increase of $210,990 or 29% year-over-year.
Costs and Expenses
General and Administrative
General and administrative costs for the 2015 Quarter were $1,477,617 compared to $1,200,216 during the 2014 Quarter, an increase of $277,401 or 23%. The increase is attributable primarily to higher payroll costs, primarily due to the staffing increase in the enrollment call center.
Depreciation and Amortization
Depreciation and amortization costs for the 2015 Quarter rose to $143,459 from $125,607 for the 2014 Quarter, an increase of $17,852 or 14%. The increase is primarily attributable to higher levels of capitalized technology costs.
18
Other Income (Expense)
Other income for the 2015 Quarter increased to $3,733 from $1,671 in the 2014 Quarter, an increase of $2,062 or 123%. The increase is primarily due to favorable foreign exchange. Interest expense decreased from $260,871 to $33,115, a decrease of $227,756 or 87%. The decrease is due to the elimination of the monthly interest to the Institutional Investor along with the amortization of the debt discount and the debt issuance costs.
Income Taxes
Income taxes expense (benefit) for the 2015 Quarter and 2014 Quarter was $0 as Aspen Group experienced operating losses in both periods. As management made a full valuation allowance against the deferred tax assets stemming from these losses, there was no tax benefit recorded in the statement of operations in both periods.
Net Loss
Net loss for the 2015 Quarter was ($718,706) as compared to ($864,261) for the 2014 Quarter, a decrease in the loss of $145,555 or approximately 17%. Contributing to this lower loss was the increase in revenues and gross profits in the 2015 Quarter, as well as lower interest expense in the 2015 Quarter.
Non-GAAP – Financial Measures
The following discussion and analysis 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, operating income, and cash flow from operating activities, liquidity or any other financial measures. They may not be indicative of the historical operating results of Aspen Group nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP.
Our management uses and relies on Adjusted EBITDA and Gross Profit (exclusive of depreciation and amortization), which are non-GAAP financial measures. We believe that both management and shareholders benefit from referring to the following non-GAAP financial measures in planning, forecasting and analyzing future periods. Our management uses these non-GAAP financial measures in evaluating its financial and operational decision making and as a means to evaluate period-to-period comparison. Our management recognizes that the non-GAAP financial measures have inherent limitations because of the described excluded items.
Aspen Group defines Adjusted EBITDA as earnings (or loss) from continuing operations before the items in the table below. Adjusted EBITDA is an important measure of our operating performance because it allows management, investors and analysts to evaluate and assess our core operating results from period-to-period after removing the impact of items of a non-operational nature that affect comparability.
We have included a reconciliation of our non-GAAP financial measures to the most comparable financial measure 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 Aspen Group and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measure and the corresponding GAAP measure provided by each company under applicable SEC rules.
19
The following table presents a reconciliation of Adjusted EBITDA to Net loss allocable to common shareholders, a GAAP financial measure:
Three Months Ended
07/31/2015
07/31/2014
Net loss allocable to common shareholders
$
(718,706
)
$
(864,261
)
Interest Expense, net of interest income
33,115
78,417
Loss from debt extinguishment
—
—
Bad Debt Expense
31,889
105,511
Depreciation & Amortization
143,459
125,608
Amortization of Debt Issue Costs
—
56,440
Amortization of Debt Discount
—
124,343
Warrant conversion exercise expense
6,000
—
Stock-based compensation
72,941
97,203
Non-recurring charges
131,677
23,019
Adjusted EBITDA (Loss)
$
(299,625
)
$
(253,720
)
The following table presents a reconciliation of adjusted Gross Profit (exclusive of amortization), a non-GAAP financial measure, to gross profit calculated in accordance with GAAP:
For the
Three Months Ended
July 31,
2015
2014
Revenues
$
1,705,861
$
1,169,860
Costs of revenues (exclusive of depreciation and amortization shown separately)
774,109
449,098
Gross profit (exclusive of depreciation and amortization)
931,752
720,762
Depreciation and amortization expenses excluded from cost of revenues
132,520
116,190
GAAP gross profit
$
799,232
$
604,572
Liquidity and Capital Resources
A summary of our cash flows is as follows:
For the
Three Months Ended
July 31,
2015
2014
Net cash used in operating activities
$
(345,920
)
$
(385,707
)
Net cash used in investing activities
(146,607
)
(151,619
)
Net cash provided by financing activities
5,794
1,706,353
Net increase (decrease) in cash and cash equivalents
$
(486,733
)
$
1,169,027
20
Net Cash Used in Operating Activities
Net cash used in operating activities during the 2015 Quarter totaled ($345,920) and resulted primarily from a net loss from continuing operations of ($718,706) offset by non-cash items of $254,288, comprised of $143,459 in depreciation and amortization, $72,941 of stock compensation expense and $31,889 of bad debt expense, and a net change in operating assets and liabilities of $118,498, of which the $275,321 increase in accounts payable was the most significant.
Net cash used in operating activities during the 2014 Quarter totaled ($385,707) and resulted primarily from a net loss from continuing operations of $(864,261) offset by non-cash items of $509,105 and a net change in operating assets and liabilities of $(30,550).
Net Cash Used in Investing Activities
Net cash used in investing activities during the 2015 Quarter totaled ($146,607) and resulted primarily from capitalized technology expenditures included in property and equipment.
Net cash used in investing activities during the 2014 Quarter totaled ($151,619), resulting primarily from capitalized technology expenditures included in property and equipment.
Net Cash Provided By Financing Activities
Net cash provided by financing activities during the 2015 Quarter totaled $5,794 which resulted primarily from a net increase in the line of credit at our bank.
Net cash provided by financing activities during the 2014 Quarter totaled $1,706,353 which resulted primarily from proceeds from the private placements of $1,781,500.
Historical Financings
Historically, our primary source of liquidity is cash receipts from tuition and the issuances of debt and equity securities. The primary uses of cash are payroll related expenses, professional expenses and instructional and marketing expenses.
On July 1, 2013, Mr. Michael Mathews, our Chief Executive Officer, loaned Aspen Group $1 million and was issued a $1 million promissory note. The promissory note bears 10% interest per annum, payable monthly in arrears. Mr. Mathews also holds two $300,000 convertible notes, one of which is convertible at $0.35 per share and the other at $1.00 per share. The due dates of all three notes held by Mr. Mathews were recently extended to February 28, 2017.
In September 2013, the Company sold a $2,240,000 Original Issue Discount Secured Convertible Debenture (the “Debenture”) and 6,736,842 five-year warrants (exercisable at $0.3325) in a private placement offering to an institutional investor. The Company received net proceeds of approximately $1.7 million from this offering.
On January 15, 2014, a warrant exercise offering was completed whereby 4,231,840 warrants were exercised at an exercise price of $0.19 per warrant. The total proceeds received were $804,049 and since the exercise price was discounted from the stated prices of either $0.50 or $0.3325. Related to this, additional 5,178,947 new warrants were issued at $0.19 per warrant as part of a price protection agreement with two investors.
On March 10, 2014, several members of the Board of Directors invested $600,000 in exchange for 3,157,895 shares of common stock and 3,157,895 warrants at $0.19 per share.
21
On July 29, 2014, in the first part of a two part private placement offering, seven accredited investors, including the Company’s Chief Financial Officer, paid a total of $1,631,500 in exchange for 10,525,809 shares of common stock and 5,262,907 five-year warrants exercisable at $0.19 per share. Aspen reimbursed expenses in total of $75,000 related to this offering. As a result of this private placement, on July 31, 2014, Aspen issued 3,473,259 shares of common stock to prior investors who had price protection on their investments, issued 2,662,139 warrants to a prior investor who had price protection on their investment and reduced the exercise and conversion price on 14,451,613 outstanding warrants and its outstanding Debenture to $0.155.
On September 4, 2014, Aspen raised $3,766,325 from the sale of 24,298,877 shares of common stock and 12,149,439 five-year warrants exercisable at $0.19 per share in the second part of a two part private placement offering to 15 accredited investors. The net proceeds to Aspen were approximately $3.7 million. With the proceeds from this offering, we pre-paid the full principal owed and interest due under the Debenture (described above).
In April 2015, Aspen raised $2,268,670 closed on its offering to warrant holders whereby it issued 14,747,116 shares of common stock to the holders in exchange for their early exercise of warrants at the reduced exercise price of $0.155. The Company received gross proceeds of $2,268,670, which included warrants exercised by the Company’s Chief Financial Officer.
Liquidity and Capital Resource Considerations
As of September 10, 2015, the Company had a cash balance of approximately $2.6 million (which includes $1,122,485 of restricted cash). With the additional cash raised in the early exercise of warrants in April 2015, the growth in the Company revenues and improving operating margins, the Company believes that it has sufficient cash to allow the Company to implement its long-term business plan.
Our cash balances are kept liquid to support our growing infrastructure needs. The majority of our cash is concentrated in large financial institutions.
Critical Accounting Policies and Estimates
In response to financial reporting release FR-60, Cautionary Advice Regarding Disclosure About Critical Accounting Policies, from the SEC, we have selected our more subjective accounting estimation processes for purposes of explaining the methodology used in calculating the estimate, in addition to the inherent uncertainties pertaining to the estimate and the possible effects on the our financial condition. The accounting estimates are discussed below and involve certain assumptions that, if incorrect, could have a material adverse impact on our results of operations and financial condition.
Revenue Recognition and Deferred Revenue
Revenue consisting primarily of tuition and fees derived from courses taught by Aspen online as well as from related educational resources that Aspen provides to its students, such as access to our online materials and learning management system. Tuition revenue is recognized pro-rata over the applicable period of instruction. Aspen maintains an institutional tuition refund policy, which provides for all or a portion of tuition to be refunded if a student withdraws during stated refund periods. Certain states in which students reside impose separate, mandatory refund policies, which override Aspen’s policy to the extent in conflict. If a student withdraws at a time when a portion or none of the tuition is refundable, then in accordance with its revenue recognition policy, Aspen recognizes as revenue the tuition that was not refunded. Since Aspen recognizes revenue pro-rata over the term of the course and because, under its institutional refund policy, the amount subject to refund is never greater than the amount of the revenue that has been deferred, under Aspen’s accounting policies revenue is not recognized with respect to amounts that could potentially be refunded. Aspen’s educational programs have starting and ending dates that differ from its fiscal quarters. Therefore, at the end of each fiscal quarter, a portion of revenue from these programs is not yet earned and is therefore deferred. Aspen also charges students annual fees for library, technology and other services, which are recognized over the related service period. Deferred revenue represents the amount of tuition, fees, and other student payments received in excess of the portion recognized as revenue and it is included in current liabilities in the accompanying consolidated balance sheets. Other revenue may be recognized as sales occur or services are performed.
22
Accounts Receivable and Allowance for Doubtful Accounts Receivable
All students are required to select both a primary and secondary payment option with respect to amounts due to Aspen for tuition, fees and other expenses. The most common payment option for Aspen’s students is personal funds or payment made on their behalf by an employer. In instances where a student selects financial aid as the primary payment option, he or she often selects personal cash as the secondary option. If a student who has selected financial aid as his or her primary payment option withdraws prior to the end of a course but after the date that Aspen’s institutional refund period has expired, the student will have incurred the obligation to pay the full cost of the course. If the withdrawal occurs before the date at which the student has earned 100% of his or her financial aid, Aspen will have to return all or a portion of the Title IV funds to the DOE and the student will owe Aspen all amounts incurred that are in excess of the amount of financial aid that the student earned and that Aspen is entitled to retain. In this case, Aspen must collect the receivable using the student’s second payment option.
For accounts receivable from students, Aspen records an allowance for doubtful accounts for estimated losses resulting from the inability, failure or refusal of its students to make required payments, which includes the recovery of financial aid funds advanced to a student for amounts in excess of the student’s cost of tuition and related fees. Aspen determines the adequacy of its allowance for doubtful accounts using a general reserve method based on an analysis of its historical bad debt experience, current economic trends, and the aging of the accounts receivable and student status. Aspen applies reserves to its receivables based upon an estimate of the risk presented by the age of the receivables and student status. Aspen writes off accounts receivable balances at the time the balances are deemed uncollectible. Aspen continues to reflect accounts receivable with an offsetting allowance as long as management believes there is a reasonable possibility of collection.
For accounts receivable from primary payors other than students, Aspen estimates its allowance for doubtful accounts by evaluating specific accounts where information indicates the customers may have an inability to meet financial obligations, such as bankruptcy proceedings and receivable amounts outstanding for an extended period beyond contractual terms. In these cases, Aspen uses assumptions and judgment, based on the best available facts and circumstances, to record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated are analyzed to determine the total amount of the allowance. Aspen may also record a general allowance as necessary.
Direct write-offs are taken in the period when Aspen has exhausted its efforts to collect overdue and unpaid receivables or otherwise evaluate other circumstances that indicate that Aspen should abandon such efforts.
Related Party Transactions
See Note 10 to our July 31, 2015 unaudited consolidated financial statements included herein for additional description of related party transactions that had a material effect on our consolidated financial statements.
Off Balance Sheet Arrangements
We do not engage in any activities involving variable interest entities or off-balance sheet arrangements.
New Accounting Pronouncements
See Note 2 to our July 31, 2015 unaudited consolidated financial statements included herein for discussion of recent accounting pronouncements.
Cautionary Note Regarding Forward Looking Statements
This report contains forward-looking statements including statements regarding growth and 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.
23
The results anticipated by any or all of these forward-looking statements might not occur. Important factors that could cause actual results to differ from those in the forward-looking statements include the failure to maintain regulatory approvals, competition, and ineffective media and/or marketing, failure to maintain growth in degree seeking students and the failure to generate sufficient revenue. Further information on our risk factors is contained in our filings with the SEC, including the Form 10-K filed on July 28, 2015. Any forward-looking statement made by us in this report 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 or revise any forward-looking statements, whether as the result of new information, future events or otherwise.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not applicable.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures . Our management carried out an evaluation, with the participation of our Principal Executive Officer and Principal Financial Officer, required by Rule 13a-15 or 15d-15 of the Securities Exchange Act of 1934 (the “Exchange Act”) of the effectiveness of our disclosure controls and procedures as defined in Rule 13a-15(e) or 15d-15(e) under the Exchange Act. Based on their evaluation, our Principal Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures are effective as of the end of the period covered by this report to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to our management, including our Principal Executive Officer and Principal Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Control Over Financial Reporting . There were no changes in our internal control over financial reporting as defined in Rule 13a-15(f) or 15d-15(f) under the Exchange Act that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
24
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. With the exception of the disclosure below, there were no material changes to our legal proceedings during the period covered by this report.
On August 13, 2015, a former employee filed a complaint against the Company in the United States District Court, District of Arizona, for breach of contract claiming that Plaintiff was terminated for “Cause” when no cause existed. Plaintiff is seeking the remaining amounts under her employment agreement, severance pay, bonuses, value of lost benefits, and the loss of the value of her stock options. The Company filed an answer to the complaint by the September 8, 2015 deadline.
ITEM 1A. RISK FACTORS
Not applicable to smaller reporting companies.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
On September 9, 2015, Mr. Michael Mathews, the Chairman of the Board and Chief Executive Officer of Aspen Group, extended the due dates of his three outstanding notes to February 28, 2017. Prior to the amendments, the outstanding notes had expirations dates of July 31, 2016. The securities were issued and sold in reliance upon the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933 and Rule 506(b) promulgated thereunder.
ITEM 6. EXHIBITS
See the Exhibit Index at the end of this report.
25
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Aspen Group, Inc.
September 10, 2015
By:
/s/ Michael Mathews
Michael Mathews
Chief Executive Officer
(Principal Executive Officer)
September 10, 2015
By:
/s/ Janet Gill
Janet Gill
Chief Financial Officer
(Principal Financial Officer)
26
EXHIBIT INDEX
Incorporated by Reference
Filed or Furnished
Exhibit #
Exhibit Description
Form
Date
Number
Herewith
3.1
Certificate of Amendment to Certificate of Incorporation, as amended
S-1
10/18/14
3.1
3.2
Bylaws
8-K
3/19/12
2.7
3.3
Amendment No. 1 to Bylaws
8-K
3/12/14
3.1
31.1
Certification of Principal Executive Officer (302)
Filed
31.2
Certification of Principal Financial Officer (302)
Filed
32.1
Certification of Principal Executive and Principal Financial Officer (906)
Furnished**
101.INS
XBRL Instance Document
Filed
101.SCH
XBRL Taxonomy Extension Schema Document
Filed
101.CAL
XBRL Taxonomy Extension Calculation Linkbase Document
Filed
101.DEF
XBRL Taxonomy Extension Definition Linkbase Document
Filed
101.LAB
XBRL Taxonomy Extension Label Linkbase Document
Filed
101.PRE
XBRL Taxonomy Extension Presentation Linkbase Document
Filed
———————
**
This exhibit is being furnished rather than filed and shall not be deemed incorporated by reference into any filing, in accordance with Item 601 of Regulation S-K.
Copies of this report (including the financial statements) and any of the exhibits referred to above will be furnished at no cost to our shareholders who make a written request to Aspen Group, Inc., at the address on the cover page of this report, Attention: Corporate Secretary.
27
Exhibit 31.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
I, Michael Mathews, certify that:
1.
I have reviewed this quarterly report on Form 10-Q of Aspen Group, Inc.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: September 10, 2015
/s/ Michael Mathews
Michael Mathews
Chief Executive Officer
(Principal Executive Officer)
Exhibit 31.2
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
I, Janet Gill, certify that:
1.
I have reviewed this quarterly report on Form 10-Q of Aspen Group, Inc.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: September 10, 2015
/s/ Janet Gill
Janet Gill
Chief Financial Officer
(Principal Financial Officer)
Exhibit 32.1
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the quarterly report of Aspen Group, Inc. (the “Company”) on Form 10-Q for the quarter ended July 31, 2015, as filed with the Securities and Exchange Commission on the date hereof, I, Michael Mathews, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:
1.
The quarterly report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and
2.
The information contained in the quarterly report fairly presents, in all material respects, the financial condition and results of operations of the Company.
/s/ Michael Mathews
Michael Mathews
Chief Executive Officer
(Principal Executive Officer)
Dated: September 10, 2015
In connection with the quarterly report of Aspen Group, Inc. (the “Company”) on Form 10-Q for the quarter ended July 31, 2015, as filed with the Securities and Exchange Commission on the date hereof, I, Janet Gill, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:
1.
The quarterly report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and
2.
The information contained in the quarterly report fairly presents, in all material respects, the financial condition and results of operations of the Company.
/s/ Janet Gill
Janet Gill
Chief Financial Officer
(Principal Financial Officer)
Dated: September 10, 2015
For profit colleges are taking massive about of heat due to debt, cost, and access to government money.
One of the things I like is their debt free plan, where you can pay a monthly price and graduate debt free. Considering how much money my undergrad cost me and still costing me, its interesting to see alternative ideas.
Went through some of the programs and their associated costs. MBA was 11,700 for tuition for a distance based education, a lot more affordable than I expected. However, because it is new I would not be sure of the value for the money at the same.
Would love to see additional certificate programs to actually give them a try, and I think it would help entice certificate student to full time programs because it gives people the opportunity to try them.
Insider buying and ownership:
awesome
Even with 4 million shares being sold (net difference) it still held it PPS and actually for most of the day buys vs sells were actually inverse.
When you consider this and the stock closed even, seem as it accumulation is occurring.