Nature of Operations and Liquidity |
9 Months Ended |
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Jan. 31, 2020 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | 听 |
| Nature of Operations and Liquidity | Nature of Operations and Liquidity Overview
桃汁影院, Inc. (together with its subsidiaries, the 鈥淐ompany,鈥 鈥淎spen,鈥 or 鈥淎GI鈥) is a holding company, which has three subsidiaries. They are Aspen University Inc. (鈥淎spen University鈥) organized in 1987, Aspen Nursing, Inc. (鈥淎NI鈥) (a subsidiary of Aspen University) formed in October 2018 and United States University, Inc. (鈥淯SU鈥) formed in May 2017. USU was the vehicle we used to acquire United States University on December 1, 2017. (See Note 4). When we refer to USU in this Report, we refer to either the online university which has operated under the name United States University or our subsidiary which operates this university, as the context implies.
AGI 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. Because we believe higher education should be a catalyst to our students鈥 long-term economic success, we exert financial prudence by offering affordable tuition that is one of the greatest values in higher education. 听AGI鈥檚 primary focus relative to future growth is to target the high growth nursing profession, currently 84% of all students across both universities are degree-seeking nursing students.
Since 1993, Aspen University has been nationally accredited by the Distance Education and Accrediting Council (鈥淒EAC鈥), a national accrediting agency recognized by the U.S. Department of Education (the 鈥淒OE鈥). In February 2019, the DEAC informed Aspen University that it had renewed its accreditation for five years through January 2024.
Since 2009, USU has been regionally accredited by WASC Senior College and University Commission. (鈥淲SCUC鈥).
Both universities are qualified to participate under the Higher Education Act of 1965, as amended (HEA) and the Federal student financial assistance programs (Title IV, HEA programs). USU has a provisional certification resulting from the ownership change of control in connection with the acquisition by AGI on December 1, 2017.
Basis of Presentation
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 鈥淪EC鈥). In the opinion of the Company鈥檚 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 and nine months ended January听31, 2020 and 2019, our cash flows for the nine months ended January听31, 2020 and 2019, and our financial position as of January听31, 2020 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 Annual Report on Form 10-K for the fiscal year ended April听30, 2019 as filed with the SEC on July 9, 2019. The April听30, 2019 balance sheet is derived from those statements.
Liquidity
At January听31, 2020, the Company had a cash balance of $20,512,808 with an additional $456,211 in restricted cash.
On November 5, 2018 the Company entered into a year, $5,000,000 senior revolving credit facility. There is currently no outstanding balance under that facility. (See Note 6)
In March 2019, the Company entered into two loan agreements for a principal amount of $5听million each and received total proceeds of $10听million. 听In connection with the loan agreements, the Company issued 18 month senior secured promissory notes, with the right to extend the term of the loans for an additional 12 months subject to paying a 1% one-time extension fee. On January 23, 2020, the Term Loans were exchanged for convertible notes maturing January 22, 2023. (See Note 6)
On January 22, 2020, the Company closed on an underwritten offering under which the net proceeds were approximately $16听million and the condition precedent to the closing of the refinancing was satisfied. (See Note 6)
During the nine months ended January听31, 2020 the Company provided net cash of $11,001,267, which included using $3,825,265 in operating activities.
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