Aspen Group Inc.

09/18/2025 | Press release | Distributed by Public on 09/18/2025 09:01

Aspen Group Delivers Positive Net Income in Fourth Quarter Fiscal 2025

Aspen Group Delivers Positive Net Income in Fourth Quarter Fiscal 2025

Download as PDF September 18, 2025

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Annual Report
Fiscal Year Ended Apr 30, 2025

Q4 Fiscal 2025 Highlights (compared to Q4 Fiscal year 2024)

  • Net income of $0.6 million and positive operating cash flow of $0.6 million
  • Total revenue growth of 6% to $11.6 million
  • Lowered operating expense by $4.7 million to deliver operating income of $1.4 million
  • Delivers positive Adjusted EBITDA of $2.0 million as compared to ($0.7) million
  • Restructuring and efficiency gains are expected to drive positive operating cash flow in FY 2026

PHOENIX -September 17, 2025 - Aspen Group, Inc. (OTCQB: ASPU) ("AGI" or the "Company"), an education technology holding company, today announced financial results for its fourth quarter fiscal year 2025 ended April 30, 2025.

Fourth Quarter Fiscal Year 2025 Summary Results

Three Months Ended April 30,

Twelve Months Ended April 30,

$ in millions, except per share data

2025

2024

2025

2024

Revenue

$ 11.6

$ 10.9

$ 45.3

$ 51.4

Gross Profit1

$ 8.2

$ 7.0

$ 31.3

$ 33.6

Gross Margin (%)1

71 %

64 %

69 %

65 %

Operating Income (Loss)

$ 1.4

$ (4.0)

$ (0.7)

$ (6.0)

Net Income (Loss) 2

$ 0.6

$ (7.4)

$ (1.5)

$ (13.6)

Earnings (Loss) per Share

$ 0.02

$ (0.29)

$ (0.07)

$ (0.53)

EBITDA3

$ 1.7

$ (5.6)

$ 2.9

$ (4.8)

Adjusted EBITDA3

$ 2.0

$ (0.7)

$ 5.7

$ 2.5

_______________________

1 GAAP gross profit calculation includes marketing and promotional costs, instructional costs and services, and amortization expense of $0.4 million and $0.5 million, and $1.8 million and $1.6 million for the three and twelve months ended April 30, 2025 and 2024, respectively.

2 See reconciliations of Net income (loss) to EBITDA and Adjusted EBITDA under "Non-GAAP-Financial Measures" starting on page 5 for details of non-recurring non-cash charges for lease impairments, changes in fair value of the put warrant liability, and the loss on debt extinguishment included in Net income (loss).

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

Michael Mathews, Chairman and CEO of AGI, stated: "We ended FY2025 with strong momentum, delivering positive net income and cash flow in the fourth quarter. Growth in organic enrollments and tuition increases in our Family Nurse Practitioner program drove a higher gross margin at USU, while disciplined instructional spending and the full benefit of prior cost restructurings lifted AGI's overall gross margin. These improvements resulted in a 12% operating margin and our first quarterly profit. For the full year, we significantly narrowed our net loss to $1.5 million, down from $13.6 million in FY 2024. Managing cash remains a top priority, and we expect the continued benefits of our restructurings and efficiency initiatives to generate positive operating cash flow in Fiscal 2026. This will allow us to resume marketing spend at the right level to support the enrollment growth. Our progress reflects not only the strength of our operational model, but also the positive impact of our strategic enhancements on the business over the past year."

Mr. Mathews added, "We have proven we can operate with minimal cash burn while increasing our operating income through disciplined cost control. In Fiscal 2026, we anticipate returning to enrollment growth with increased marketing spend and the continued success of our enrollment advisors, while also maintaining tight cash management. We entered the new fiscal year on a solid foundation, positioned for sustainable growth."

Fiscal Q4 2025 Financial and Operational Results (compared to Fiscal Q4 2024)

Revenue increased by 6% to $11.6 million compared to $10.9 million. The following table presents the Company's revenue, both per-subsidiary and total:

Three Months Ended April 30,

2025

$ Change

% Change

2024

AU

$ 4,397,499

$ (708,651)

(14)%

$ 5,106,150

USU

7,171,999

1,409,413

24%

5,762,586

Revenue

$ 11,569,498

$ 700,762

6%

$ 10,868,736

Aspen University's ("AU") revenue decline of $0.7 million, or 14%, reflects the completion of the teach-out of the pre-licensure program and lower post-licensure enrollments as a result of the decrease in marketing spend initiated in late Fiscal Q1 2023.

United States University ("USU") revenue was up 24% compared to the prior year period. MSN-FNP program enrollments increased quarter-over-quarter due to regular seasonality and strong organic leads during the quarter. Additionally, USU's performance was supported by strong demand from existing students returning from inactive status and higher revenue per student driven by more students entering their second year of the MSN-FNP program, which includes clinical rotations, and by tuition increases.

GAAP gross profit increased by $1.2 million to $8.2 million primarily due to higher revenue at USU due to increased revenue per student combined with reduced cost of revenue driven by increased efficiencies in the use of faculty. Consolidated gross margin was 71% compared to 64%, AU's gross margin was 67% versus 65%, and USU's gross margin was 74% versus 64%. The increase in gross margin is the result of higher revenue at USU combined with lower instructional costs from completing the AU BSN Pre-licensure program teach-out and increased efficiencies in the usage of faculty at both AU and USU.

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

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

Three Months Ended April 30, 2025

Consolidated

AGI Corporate

AU

USU

Net income (loss) available to common stockholders

$ 616,848

$ (1,870,177)

$ 305,213

$ 2,181,812

Net income per share available to common stockholders

$ 0.02

Three Months Ended April 30, 2024

Consolidated

AGI Corporate

AU

USU

Net income (loss) available to common stockholders

$ (7,447,068)

$ (7,056,305)

$ (1,924,899)

$ 1,534,136

Net loss per share available to common stockholders

$ (0.29)

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

Three Months Ended April 30, 2025

Consolidated

AGI Corporate

AU

USU

EBITDA

$1,653,591

$(1,473,450)

$794,562

$2,332,479

EBITDA Margin

14%

NM

18%

33%

Adjusted EBITDA

$1,994,269

$(1,740,083)

$1,170,507

$2,563,845

Adjusted EBITDA Margin

17%

NM

27%

36%

__________________

NM - Not meaningful

Three Months Ended April 30, 2024

Consolidated

AGI Corporate

AU

USU

EBITDA

$(5,622,156)

$(6,015,312)

$(1,276,726)

$1,669,882

EBITDA Margin

52%

NM

(25)%

29%

Adjusted EBITDA

$(689,339)

$(2,208,484)

$126,371

$1,392,774

Adjusted EBITDA Margin

(6)%

NM

2%

24%

Adjusted EBITDA improved by $2.7 million due to increased revenue per student at USU and the reduction in instructional costs and services related to the teach-out of the pre-licensure program, increased instructional efficiencies at AU and USU and a decrease in general and administrative costs attributed to our restructurings.

Operating Metrics

New Student Enrollments

On a Company-wide basis, new student enrollments were down 24% year-over-year. New student enrollments at AU decreased 18% year-over-year and at USU decreased 30% year-over-year. New student enrollments were primarily impacted by our reduction of marketing spend to a maintenance level. As a result of the restructurings and increased instructional efficiencies, we anticipate the resumption of marketing spend in Fiscal 2026 at a level necessary to provide enrollments needed to grow the student body and allow for the generation of positive operating cash flow.

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

Q4'24

Q1'25

Q2'25

Q3'25

Q4'25

Aspen University

427

413

508

359

350

USU

370

410

442

196

258

Total

797

823

950

555

608

Total Active Student Body

AGI's active degree-seeking student body, including AU and USU, declined 18% year-over-year to 5,809 at April 30, 2025 from 7,048 at April 30, 2024. AU's total active student body decreased by 26% year-over-year to 3,375 at April 30, 2025 from 4,559 at April 30, 2024. On a year-over-year basis, USU's total active student body decreased by 2% to 2,434 at April 30, 2025 from 2,489 at April 30, 2024.

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

Q4'24

Q1'25

Q2'25

Q3'25

Q4'25

Aspen University

4,559

4,145

3,827

3,564

3,375

USU

2,489

2,477

2,560

2,475

2,434

Total

7,048

6,622

6,387

6,039

5,809

Nursing Students

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

Q4'24

Q1'25

Q2'25

Q3'25

Q4'25

Aspen University

3,526

3,198

2,948

2,745

2,606

USU

2,262

2,254

2,300

2,297

2,254

Total

5,788

5,452

5,248

5,042

4,860

Liquidity

The Fiscal Q4 2025 ending unrestricted cash balance was $0.7 million. As of September 12, 2025, the Company had $0.4 million of unrestricted cash on hand. On September 15, 2025, we implemented a fifth restructuring plan, that will result in additional cash benefits for the Company starting in late October 2025. The restructuring resulted in the elimination of approximately 80 positions within AU and AGI. The resulting additional on-going quarterly compensation-related savings will be approximately $1.7 million beginning in late October 2025.

Our restructuring efforts were designed to achieve break-even to positive annual operating cash flows, which will permit the resumption of marketing spend at a level that we expect will renew growth in our post-licensure nursing student body. In Fiscal Q4 2025, we had positive cash flow from operations of $0.6 million.

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

Non-GAAP - Financial Measures

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

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

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

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

Three Months Ended April 30,

For the Years Ended April 30,

2025

2024

2025

2024

Net income (loss)

$ 616,848

$ (7,447,068)

$ (1,544,892)

$ (13,578,756)

Interest expense, net

325,603

1,010,121

1,368,892

4,979,486

Taxes

6,381

(74,404)

56,149

78,374

Depreciation and amortization

704,759

889,195

3,055,568

3,718,621

EBITDA

1,653,591

(5,622,156)

2,935,717

(4,802,275)

Provision for credit losses

600,000

744,661

1,950,000

2,094,661

Stock-based compensation

(706,895)

149,735

(291,548)

677,392

Severance

13,876

-

135,526

-

Impairments of right-of-use assets and tenant leasehold improvements

-

1,421,096

1,848,209

1,526,410

Loss on debt extinguishment

-

2,053,417

-

2,053,417

Change in fair value of put warrant liability

433,697

599,438

(537,072)

505,989

Non-recurring charges (income) - Other

-

(35,530)

(387,298)

402,568

Adjusted EBITDA

$ 1,994,269

$ (689,339)

$ 5,653,534

$ 2,458,162

Net loss Margin

5 %

(69) %

(3) %

(26) %

EBITDA Margin

14 %

(52) %

6 %

(9) %

Adjusted EBITDA Margin

17 %

(6) %

12 %

5 %

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

Three Months Ended April 30, 2025

Consolidated

AGI Corporate

AU

USU

Net income (loss)

$ 616,848

$ (1,870,177)

$ 305,213

$ 2,181,812

Interest expense, net

325,603

325,603

-

-

Taxes

6,381

2,369

3,962

50

Depreciation and amortization

704,759

68,755

485,387

150,617

EBITDA

1,653,591

(1,473,450)

794,562

2,332,479

Provision for credit losses

600,000

-

375,000

225,000

Stock-based compensation

(706,895)

(705,230)

(2,612)

947

Severance

13,876

4,900

3,557

5,419

Change in fair value of put warrant liability

433,697

433,697

-

-

Adjusted EBITDA

$ 1,994,269

$ (1,740,083)

$ 1,170,507

$ 2,563,845

Net income margin

5 %

NM

7 %

30 %

EBITDA margin

14 %

NM

18 %

33 %

Adjusted EBITDA margin

17 %

NM

27 %

36 %

_____________________

NM - Not meaningful

Three Months Ended April 30, 2024

Consolidated

AGI Corporate

AU

USU

Net income (loss)

$ (7,447,068)

$ (7,056,305)

$ (1,924,899)

$ 1,534,136

Interest expense (income), net

1,010,121

1,010,121

-

-

Taxes

(74,404)

(49,108)

(13,778)

(11,518)

Depreciation and amortization

889,195

79,980

661,951

147,264

EBITDA

(5,622,156)

(6,015,312)

(1,276,726)

1,669,882

Bad debt expense

744,661

-

1,077,468

(332,807)

Stock-based compensation

149,735

143,505

4,531

1,699

Impairments of right-of-use assets and tenant leasehold improvements

1,421,096

1,214,398

206,698

-

Loss on debt extinguishment

2,053,417

2,053,417

-

-

Change in fair value of put warrant liability

599,438

599,438

-

-

Non-recurring charges (income) - Other

(35,530)

(203,930)

114,400

54,000

Adjusted EBITDA

$ (689,339)

$ (2,208,484)

$ 126,371

$ 1,392,774

Net income (loss) margin

(69) %

NM

(38) %

27 %

EBITDA margin

(52) %

NM

(25) %

29 %

Adjusted EBITDA margin

(6) %

NM

2 %

24 %

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the impact from and cost savings resulting from the fifth restructuring, our future marketing spend and the success of our future marketing efforts, positive operating cash flow in Fiscal 2026, and our future 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.

The results anticipated by any or all of these forward-looking statements might not occur. Important factors, uncertainties and risks that may cause actual results to differ materially from these forward-looking statements include, without limitation, the accuracy of our estimates relating to our fifth restructuring plan, the effectiveness of our increased marketing, our ability to sublease our remaining leases other than our executive offices and necessary space used by AU and USU, the continued high demand for nurses for our new programs and in general, student attrition, national and local economic factors including the labor market shortages and the possibility of an economic recession, the failure to obtain approval from the National Council for State Authorization Reciprocity Agreements, competition from other online universities including the competitive impact from the trend of major non-profit universities using online education and consolidation among our competitors, our ability to obtain and maintain the necessary regulatory approvals for the merger of AU into USU, the impact of U.S. tariff policy and any Federal Reserve interest rate changes on inflation, unfavorable regulatory changes, and our failure to continue obtaining enrollments at low acquisition costs and keeping teaching and administrative costs down. We undertake no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.

About Aspen Group, Inc.

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

Investor Relations Contact

Kim RogersManaging DirectorHayden IR385-831-7337 [email protected]

GAAP Financial Statements

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

April 30,

2025

2024

Assets

Current assets:

Cash and cash equivalents

$ 736,871

$ 1,531,425

Restricted cash

338,002

1,088,002

Accounts receivable, net of allowance of $5,731,139 and $4,560,378, respectively

17,167,346

19,686,527

Prepaid expenses

443,366

502,751

Other current assets

518,171

1,785,621

Total current assets

19,203,756

24,594,326

Property and equipment:

Computer equipment and hardware

894,251

886,152

Furniture and fixtures

1,974,271

1,974,271

Leasehold improvements

5,621,087

6,553,314

Instructional equipment

529,299

529,299

Software

7,527,066

8,784,996

16,545,974

18,728,032

Accumulated depreciation and amortization

(9,907,309)

(9,542,520)

Property and equipment, net

6,638,665

9,185,512

Goodwill

5,011,432

5,011,432

Intangible assets

7,900,000

7,900,000

Courseware and accreditation, net

256,994

363,975

Long-term contractual accounts receivable

19,846,823

17,533,030

Operating lease right-of-use assets, net

7,250,407

10,639,838

Deposits and other assets

657,850

718,888

Total assets

$ 66,765,927

$ 75,947,001

(Continued)

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (CONTINUED)

April 30,

2025

2024

Liabilities and Stockholders' Equity

Liabilities:

Current liabilities:

Accounts payable

$ 2,055,173

$ 2,311,360

Accrued expenses

2,483,520

2,880,478

Advances on tuition

2,235,332

2,030,501

Deferred tuition

2,535,533

4,881,546

Due to students

2,115,581

2,558,492

Operating lease obligations, current portion

2,811,471

2,608,534

Debt, current portion

2,000,000

2,284,264

Other current liabilities

185,296

86,495

Total current liabilities

16,421,906

19,641,670

Long-term debt, net

5,224,524

6,776,506

Operating lease obligations, less current portion

12,398,678

14,999,687

Warrant liabilities

1,427,521

1,964,593

Other long-term liabilities

327,402

287,930

Total liabilities

35,800,031

43,670,386

Commitments and contingencies

Stockholders' equity:

Preferred stock, $0.001 par value; 1,000,000 shares authorized, 10,000 issued and outstanding at both April 30, 2025 and 2024, respectively

10

10

Common stock, $0.001 par value; 85,000,000 shares authorized, 28,389,531 and 25,701,603 issued and outstanding at April 30, 2025 and 2024, respectively

28,390

25,702

Additional paid-in capital

122,152,533

121,921,048

Accumulated deficit

(91,215,037)

(89,670,145)

Total stockholders' equity

30,965,896

32,276,615

Total liabilities and stockholders' equity

$ 66,765,927

$ 75,947,001

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

Years Ended April 30,

2025

2024

Revenue, net

$ 45,302,082

$ 51,395,302

Operating expenses:

Cost of revenue (exclusive of depreciation and amortization shown separately below)

12,190,949

16,232,385

General and administrative

26,889,423

33,497,456

Impairments of right-of-use assets and tenant leasehold improvements

1,848,209

1,526,410

Loss on asset dispositions

35,984

308,055

Provision for credit losses

1,950,000

2,094,661

Depreciation and amortization

3,055,568

3,718,621

Total operating expenses

45,970,133

57,377,588

Operating loss

(668,051)

(5,982,286)

Other income (expense):

Interest expense

(1,368,892)

(4,979,507)

Loss on debt extinguishment

-

(2,053,417)

Change in fair value of put warrant liability

537,072

(505,989)

Other income, net

11,128

20,817

Total other expense, net

(820,692)

(7,518,096)

Loss before income taxes

(1,488,743)

(13,500,382)

Income tax expense

56,149

78,374

Net loss

(1,544,892)

(13,578,756)

Dividends attributable to preferred stock

(370,600)

(59,836)

Net loss available to common stockholders

$ (1,915,492)

$ (13,638,592)

Net loss per share - basic and diluted available to common stockholders

$ (0.07)

$ (0.53)

Weighted average number of common shares outstanding - basic and diluted

27,140,245

25,590,919

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

YEARS ENDED APRIL 30, 2025 AND 2024

Preferred Stock

Common Stock

Additional
Paid-In
Capital

Treasury Stock

Accumulated

Deficit

Total
Stockholders'
Equity

Shares

Amount

Shares

Amount

Balance as of April 30, 2023

-

$ -

25,592,802

$ 25,593

$ 113,429,992

$ (1,817,414)

$ (76,091,389)

$ 35,546,782

Stock-based compensation

-

-

-

-

677,392

-

-

677,392

Common stock issued for vested restricted stock units

-

-

239,287

239

(239)

-

-

-

Common stock issued for services

-

-

25,000

25

1,833

-

-

1,858

Cancellation of treasury stock

-

-

(155,486)

(155)

(1,817,259)

1,817,414

-

-

Amortization of warrant-based cost issued for services

-

-

-

-

28,000

-

-

28,000

Accrued dividends

-

-

-

-

(59,836)

-

-

(59,836)

Conversion of Convertible Notes into preferred stock

10,000

10

-

-

9,999,990

-

-

10,000,000

Relative fair value of warrants issued in connection with the 15% Debentures

-

-

-

-

154,000

-

-

154,000

Reclassification of warrants to put liability

-

-

-

-

(500,825)

-

-

(500,825)

Warrant modifications

-

-

-

-

8,000

-

-

8,000

Net loss

-

-

-

-

-

-

(13,578,756)

(13,578,756)

Balance as of April 30, 2024

10,000

$ 10

25,701,603

$ 25,702

$ 121,921,048

$ -

$ (89,670,145)

$ 32,276,615

Stock-based compensation

-

-

-

-

256,786

-

-

256,786

Common stock issued for vested restricted stock units

-

-

340,516

341

(341)

-

-

-

Amortization of warrant-based cost issued for services

-

-

-

-

7,000

-

-

7,000

Warrants issued in connection with the 15% Debentures Amendment #6

-

-

-

-

12,965

-

-

12,965

Common Stock issued for accrued dividends

-

-

2,347,412

2,347

(2,347)

-

-

-

Accrued dividends

-

-

-

-

(42,578)

-

-

(42,578)

Net loss

-

-

-

-

-

-

(1,544,892)

(1,544,892)

Balance as of April 30, 2025

10,000

$ 10

28,389,531

$ 28,390

$ 122,152,533

$ -

$ (91,215,037)

$ 30,965,896

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Years Ended April 30,

2025

2024

Cash flows from operating activities:

Net loss

$ (1,544,892)

$ (13,578,756)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Provision for credit losses

1,950,000

2,094,661

Depreciation and amortization

3,055,568

3,718,621

Stock-based compensation

256,786

677,392

Change in fair value of put warrant liability

(537,072)

505,989

Amortization of warrant-based cost

7,000

28,000

Warrant modification

-

8,000

Amortization of debt issuance costs

53,160

1,275,377

Amortization of debt discounts

-

405,342

Loss on debt extinguishment

-

2,053,417

Common stock issued for services

-

1,858

Loss on asset dispositions

35,984

308,055

Non-cash lease benefit

(318,971)

(850,467)

Impairments of right-of-use assets and tenant leasehold improvements

1,848,209

1,526,410

Changes in operating assets and liabilities:

Accounts receivable

(1,744,612)

(4,188,553)

Prepaid expenses

59,385

107,149

Other current assets

1,267,450

1,283,297

Deposits and other assets

61,038

(508,352)

Accounts payable

(256,187)

60,458

Accrued expenses

(396,958)

415,503

Due to students

(442,911)

(66,339)

Advances on tuition and deferred tuition

(2,141,182)

1,044,034

Other current liabilities

98,801

(22,833)

Other long-term liabilities

39,472

37,930

Net cash provided by (used in) operating activities

1,350,068

(3,663,807)

Cash flows from investing activities:

Purchases of courseware and accreditation

(57,210)

(182,750)

Purchases of property and equipment

(960,969)

(1,147,429)

Net cash used in investing activities

(1,018,179)

(1,330,179)

Cash flows from financing activities:

Repayment of portion of 15% Senior Secured Debentures

(1,721,066)

(3,328,973)

Payments of debt issuance costs

(155,377)

(233,161)

Proceeds from 15% Senior Secured Debentures, net of original issuance discount and fees

-

10,451,080

Repayment of 2018 Credit Facility

-

(5,000,000)

Advance from related party

-

200,000

Repayment of advance from related party

-

(200,000)

Net cash (used in) provided by financing activities

(1,876,443)

1,888,946

Net decrease in cash and cash equivalents

(1,544,554)

(3,105,040)

Cash, cash equivalents and restricted cash at beginning of year

2,619,427

5,724,467

Cash, cash equivalents and restricted cash at end of year

$ 1,074,873

$ 2,619,427

(Continued)

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(Unaudited)

Years Ended April 30,

2025

2024

Supplemental disclosure cash flow information:

Cash paid for interest

$ 1,315,733

$ 3,289,824

Cash paid for income taxes

$ 56,149

$ 98,343

Supplemental disclosure of non-cash investing and financing activities:

Accrued dividends

$ 102,412

$ 59,836

Relative fair value of warrants issued as part of the 15% Senior Secured Debentures

$ 12,965

$ 154,000

Common stock issued for accrued dividends

$ 328,025

$ -

Reclassification of put warrants issued as part of the 15% Senior Secured Debentures from equity to liabilities

$ -

$ 500,825

Issuance of put warrants as part of the 15% Senior Secured Debentures

$ -

$ 1,964,593

Exchange of $10 million Convertible Notes from debt to equity

$ -

$ 10,000,000

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

April 30,

2025

2024

Cash and cash equivalents

$ 736,871

$ 1,531,425

Restricted cash

338,002

1,088,002

Total cash and cash equivalents and restricted cash

$ 1,074,873

$ 2,619,427

Released September 18, 2025

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