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

About 桃汁影院, Inc.

桃汁影院, 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. For more information, visit www.aspu.com.

Contact Information:

Hayden IR
Kimberly Rogers
(385) 831-7337

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

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

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including our resumption of growth in Fiscal 2025. The words 鈥渂elieve,鈥� 鈥渕ay,鈥� 鈥渆stimate,鈥� 鈥渃ontinue,鈥� 鈥渁nticipate,鈥� 鈥渋ntend,鈥� 鈥渟hould,鈥� 鈥減lan,鈥� 鈥渃ould,鈥� 鈥渢arget,鈥� 鈥減otential,鈥� 鈥渋s likely,鈥� 鈥渨ill,鈥� 鈥渆xpect鈥� and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include the availability of cash to support resumption of marketing, the effectiveness of the marketing, the state of the economy during fiscal 2025 and successful resolution of ongoing regulatory matters.Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

About 桃汁影院, Inc.

桃汁影院, 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. For more information, visit .

Contact Information:

Hayden IR
Kimberly Rogers
(385) 831-7337

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

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

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

About 桃汁影院, Inc.

桃汁影院, 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. For more information, visit .

Contact Information:

Hayden IR
Kimberly Rogers
(385) 831-7337

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

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

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

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

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including our resumption of growth in Fiscal 2025. The words 鈥渂elieve,鈥� 鈥渕ay,鈥� 鈥渆stimate,鈥� 鈥渃ontinue,鈥� 鈥渁nticipate,鈥� 鈥渋ntend,鈥� 鈥渟hould,鈥� 鈥減lan,鈥� 鈥渃ould,鈥� 鈥渢arget,鈥� 鈥減otential,鈥� 鈥渋s likely,鈥� 鈥渨ill,鈥� 鈥渆xpect鈥� and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include the availability of cash to support resumption of marketing, the effectiveness of the marketing, the state of the economy during fiscal 2025 and successful resolution of ongoing regulatory matters. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

About 桃汁影院, Inc.

桃汁影院, 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. For more information, visit www.aspu.com.

Contact Information:

Hayden IR
Kimberly Rogers
(385) 831-7337

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

NEW YORK, Jan. 18, 2024 (GLOBE NEWSWIRE) -- 桃汁影院, Inc. (OTCQB: ASPU) (鈥淎GI鈥� or the "Company"), an education technology holding company, today announced financial results for its second quarter fiscal year 2024 ended October 31, 2023.

Second Quarter Fiscal Year 2024 Summary Results

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

² Non-GAAP financial measures. See reconciliations of GAAP to non-GAAP financial measures under 鈥淣on-GAAP鈥�Financial Measures鈥� starting on page 5.

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

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

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

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

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

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

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

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

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

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

_____________________
NM 鈥� Not meaningful

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

_____________________________
TTM 鈥� Trailing twelve months

Operating Metrics

New Student Enrollments

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

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

New student enrollments, bookings and ARPU for Q2鈥�24 versus Q2鈥�23 are shown below (rounding differences may occur):

_____________________
¹ 鈥淏ookings鈥� are defined by multiplying Lifetime Value (LTV) by new student enrollments for each operating unit. 鈥淎RPU鈥� is defined by dividing total Bookings by total new student enrollments for each operating unit.

Total Active Student Body

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

Nursing Students

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

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

Liquidity

On October 31, 2023, the Company had unrestricted cash of $1.9 million and restricted cash of $4.1 million. Included in the unrestricted cash balance is $1.5 million related to the Second Amendment to the 15% Debentures under which the purchasers agreed to unrestrict $1.5 million of restricted cash associated with the Debentures. Subsequent to the closing of the quarter, AGI received $1 million from the reduction of the surety bond required by the state of Arizona. Additionally, prior to the end of January 2024, the Company is anticipating a $3.9 million student financial aid reimbursement from the Department of Education (鈥淒oE鈥�) which will allow the Company to pay down $1.5 million of the Debenture principal. After the Debenture principal repayment, the unrestricted cash balance is projected to exceed $2.0 million. Variability in the unrestricted cash balance is primarily due to the timing of financial aid reimbursements from the DoE under the Heightened Cash Monitoring 2 (鈥淗CM2鈥�) method of financial aid reimbursement.听听 HCM2 requires the Company to make disbursements to students from its own institutional funds, and a request is then submitted to the DoE for reimbursement of those funds.

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

Additional Information

For additional information on the financial statements and performance, please refer to the 桃汁影院, Inc. Quarterly Report for the second quarter of fiscal year 2024 published on the Company鈥檚 website at , or the OTC Markets 桃汁影院 Quote page under the tab.

Conference Call

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

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

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

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

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

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

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:

_____________________
NM 鈥� Not meaningful

Definitions

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

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

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

Adjusted EBITDA Margin 鈥� is defined as Adjusted EBITDA divided by revenue. We believe Adjusted EBITDA margin is useful for management, analysts and investors as this measure allows for a more meaningful comparison between our performance and that of our competitors. Adjusted EBITDA margin has certain limitations in that it does not take into account the impact to our consolidated statement of operations of certain expenses.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including our liquidity, receipt of payment from the U.S. Department of Education, our continuing generating positive cash flow from operations, and our estimates as to Lifetime Value, bookings and ARPU, changes in enrollments and the expected use of proceeds from the drawdown under the revolving credit facility. The words 鈥渂elieve,鈥� 鈥渕ay,鈥� 鈥渆stimate,鈥� 鈥渃ontinue,鈥� 鈥渁nticipate,鈥� 鈥渋ntend,鈥� 鈥渟hould,鈥� 鈥減lan,鈥� 鈥渃ould,鈥� 鈥渢arget,鈥� 鈥減otential,鈥� 鈥渋s likely,鈥� 鈥渨ill,鈥� 鈥渆xpect鈥� and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include the continued demand of nursing students and for new programs, student attrition, national and local economic factors including the potential impact of COVID-19, influenza and other respiratory viruses on the economy, the effectiveness of our future marketing campaigns, our reliance on third parties which may have differing priorities, the continued government spending on healthcare, any regulatory risks including the reauthorization of Aspen University by its accreditor, continued improvement in NCLEX scores, competition from nursing schools in local markets, the competitive impact from the trend of major non-profit universities using online education and consolidation among our competitors. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

About 桃汁影院, Inc.

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

Investor Relations Contact

Kim Rogers
Managing Director
Hayden IR
385-831-7337听

GAAP Financial Statements

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:

听

Conference Call Information:

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

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

About 桃汁影院, Inc.:

桃汁影院, 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. For more information, visit .

Investor Relations Contact:

Kimberly Rogers
Hayden IR
(385) 831-7337

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

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

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

About 桃汁影院, Inc.

桃汁影院, 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. For more information, visit .

Contact Information:

Hayden IR
Kimberly Rogers
(385) 831-7337

NEW YORK, Sept. 29, 2023 (GLOBE NEWSWIRE) -- 桃汁影院, Inc. (OTC Pink: ASPU) (鈥淎GI or the Company鈥�), an education technology holding company, today announced financial results for its first quarter fiscal year 2024 ended July 31, 2023.

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

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

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

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

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

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

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

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

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

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

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

^{________________________________}
NM - Not meaningful

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

Operating Metrics

New Student Enrollments

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

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

New student enrollments, bookings and ARPU for Q1鈥�24 versus Q1鈥�23 are shown below (rounding differences may occur):

_____________________
¹ 鈥淏ookings鈥� are defined by multiplying LTV by new student enrollments for each operating unit. 鈥淎RPU鈥� is defined by dividing total Bookings by total new student enrollments for each operating unit.

Total Active Student Body

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

Nursing Students

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

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

Liquidity

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

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

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

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

Additional Information

For additional information on the financial statements and performance, please refer to the 桃汁影院, Inc. Quarterly Report for the first quarter of fiscal year 2024 published on the Company鈥檚 website at www.aspu.com, on the All OTC Filings page under Financial Info.

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

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

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

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

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:

^{________________________________}
NM - Not meaningful

Definitions

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

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

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

Adjusted EBITDA Margin 鈥� defined as Adjusted EBITDA divided by revenue. We believe Adjusted EBITDA margin is useful for management, analysts and investors as this measure allows for a more meaningful comparison between our performance and that of our competitors. Adjusted EBITDA margin has certain limitations in that it does not take into account the impact to our consolidated statement of operations of certain expenses.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our perceived positioning for substantial growth, anticipated trends including with respect to future demand for nurses, anticipated record fall enrollments for both universities, our goal to maintain positive EBITDA and improved cash flow, the planned marketing spend in fiscal year 2024, and our liquidity. All statements other than statements of historical facts contained in this report, including statements regarding our future financial position, liquidity, business strategy and plans and objectives of management for future operations, are forward-looking statements. The words 鈥渂elieve,鈥� 鈥渕ay,鈥� 鈥渆stimate,鈥� 鈥渃ontinue,鈥� 鈥渁nticipate,鈥� 鈥渋ntend,鈥� 鈥渟hould,鈥� 鈥減lan,鈥� 鈥渃ould,鈥� 鈥渢arget,鈥� 鈥減otential,鈥� 鈥渋s likely,鈥� 鈥渨ill,鈥� 鈥渆xpect鈥� and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors, uncertainties and risks that may cause actual results to differ materially from these forward-looking statements include, without limitation, our ability to enroll new students and generate revenue given the prior sharp reduction in marketing, the continued demand of nursing students for our programs, our ability to successfully resolve the regulatory matters involving agencies in Arizona and elsewhere, our ability to maintain and grow enrollments in our active programs with increased marketing, the continued attraction of online learning as the COVID-19 pandemic has receded, student attrition, national and local economic factors including a possible recession and increasing unemployment, uncertainties arising from high inflation, Federal Reserve interest rate increases, the banking crisis, and the Russian invasion of Ukraine including its effect on the U.S. economy, the competitive impact from the trend of major non-profit universities using online education and consolidation among our competitors, the timing of DOE payments, regulatory risks including those related to the Arizona Board of Nursing actions which caused us to agree to teach out our pre-licensure students and the myriad of risks which may affect our ability to maintain our operations, advance our business plan, manage our costs, grow our revenue, and repay our obligations as and when they come due. Further information on the risks and uncertainties affecting our business is contained in our filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended April 30, 2022. However, we no longer file reports with the SEC, and we undertake no obligation to publicly update or revise any forward-looking statements, nor the risks and uncertainties which qualify them, whether as the result of new information, future events or otherwise. Investors are also urged to review our periodic reports made with the OTC Markets Group, Inc., which we also make available on our corporate website.

About 桃汁影院, Inc.

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

Investor Relations Contact

Kim Rogers
Managing Director
Hayden IR
385-831-7337听

GAAP Financial Statements

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:

Michael Mathews, Chairman and CEO of 桃汁影院, stated, "We are thrilled to announce the successful closure of this financing with the JGB team, which has significantly improved 桃汁影院's financial position. This will enable us to effectively manage changes in the timing of financial aid-related cash flow and pay off our outstanding $5 million line of credit. As we continue to work towards achieving our goals, marketing is a key catalyst to increasing enrollment in our highly sought-after Aspen University post-licensure nursing degree programs and USU鈥檚 MSN-FNP (Family Nurse Practitioner) degree program, among others. With the implementation of cost reductions which improves our cash flow from operations, we now have the opportunity to increase our marketing budget and position the company to continue maintaining a positive Adjusted EBITDA."

The 36-month debentures, issued on May 11, 2023, bear interest at 15% per annum, are paid monthly, and are not convertible. The AGI鈥檚 obligations under the debentures are secured by substantially all of AGI鈥檚 and its subsidiaries鈥� assets. The debentures also contain customary affirmative and negative covenants, events of defaults and other customary terms for senior secured debentures. Each warrant entitles the holder to purchase one share of the company鈥檚 common stock at an exercise price of US $0.01 per share for five-years following the closing date of the offering.

The company has filed its Quarterly Report on Form 10-Q for the three months ended January 31, 2023, with the Securities and Exchange Commission today, May 16, 2023. for further details on the terms and covenants related to this financing agreement, please refer to the footnote section in the 10-Q.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the plan to increase marketing and continue to achieve positive Adjusted EBITDA. The words 鈥渂elieve,鈥� 鈥渕ay,鈥� 鈥渆stimate,鈥� 鈥渃ontinue,鈥� 鈥渁nticipate,鈥� 鈥渋ntend,鈥� 鈥渟hould,鈥� 鈥減lan,鈥� 鈥渃ould,鈥� 鈥渢arget,鈥� 鈥減otential,鈥� 鈥渋s likely,鈥� 鈥渨ill,鈥� 鈥渆xpect鈥� and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include our ability to enroll new students and generate revenue from our new marketing program, the impact of a declining economy, inflation, higher interest rates, the banking crisis, the continued attraction of online learning as COVID-19 has receded, student attrition, the competitive impact from the trend of non-profit universities using online education and consolidation among our competitors. Other risks are included in our filings with the SEC including our Form 10-K for the year ended April 30, 2022. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

About 桃汁影院, Inc.

桃汁影院, 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. For more information, visit .

Contact Information:

Hayden IR
Kimberly Rogers
(385) 831-7337

Aspen University Statement
March 24, 2023

On the evening of March 23, 2023, Aspen University and the Arizona Board of Nursing (鈥渢he Board鈥�) signed an Amendment to the September 2022 Consent Agreement that permits the teach-out of the BSN Pre-licensure program to continue. On behalf of the Pre-licensure students and university administration, we are appreciative to the Board for the opportunity to move forward.

Aspen is committed to working closely with the Board, our Consultant and Ombudsperson to ensure that the program 鈥減rovides minimum instruction and learning opportunities, including clinical opportunities, to meet basic standards of educational practice and legal requirements,鈥� as required by the Consent Agreement. We are thankful to be able to establish a process by which we can work cooperatively with the Board to address any concerns about the program they may have.

We are deeply grateful to students who have tirelessly advocated for their education, our supportive Governor and Legislators, and all others who have assisted in this effort.

About 桃汁影院, Inc.:

桃汁影院, 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. For more information, visit .

Investor Relations Contact:

Kimberly Rogers
Hayden IR
(385) 831-7337

The Company currently anticipates that it will file with the Securities and Exchange Commission (the 鈥淪EC鈥�) a Form 25, Notification of Removal of Listing and/or Registration Under Section 12(b) the Exchange Act, relating to the delisting and deregistration on or about March 23, 2023, with the delisting of its common stock taking effect no earlier than ten days thereafter. As a result, the Company expects that the last trading day of its common stock on the Nasdaq Capital Market will be on or about March 31, 2023. Further, on or about April 30, 2023, the Company intends to file a Form 15 with the SEC to suspend the Company's reporting obligations under Section 15(d) of the Exchange Act.

The Company anticipates significant financial savings as a result of this decision. In addition, delisting and deregistration provide several benefits to the Company and its stockholders including lower operating costs, reduced management time commitment for compliance and reporting activities, and a simplified corporate governance structure.

The Company expects that its common stock will be quoted on the Pink Sheets platform or another market operated by OTC Markets Group Inc. (the 鈥淥TC鈥�). The Company intends to continue providing information to its stockholders and taking actions within its control to facilitate the quoting of its common stock on the Pink Sheets or another OTC market, so that a trading market may continue to exist for its common stock. However, there is no guarantee that a broker will continue to make a market in the common stock or that trading of the common stock will continue on an OTC market or elsewhere.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including the anticipated savings from the elimination of SEC reporting obligations. The words 鈥渂elieve,鈥� 鈥渕ay,鈥� 鈥渆stimate,鈥� 鈥渃ontinue,鈥� 鈥渁nticipate,鈥� 鈥渋ntend,鈥� 鈥渟hould,鈥� 鈥減lan,鈥� 鈥渃ould,鈥� 鈥渢arget,鈥� 鈥減otential,鈥� 鈥渋s likely,鈥� 鈥渨ill,鈥� 鈥渆xpect鈥� and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include an unfavorable resolution of the ongoing issues affecting Aspen University with the Arizona Board of Nursing. Other risks are included in our filings with the SEC including our Form 10-K for the year ended April 30, 2022 and other reports we have filed. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

About 桃汁影院, Inc.

桃汁影院, 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. For more information, visit .听

Contact Information:

Hayden IR
Kimberly Rogers
(385) 831-7337
听

NEW YORK, Dec. 13, 2022 (GLOBE NEWSWIRE) -- 桃汁影院, Inc. (Nasdaq: ASPU) (鈥淎GI鈥� or the 鈥淐ompany鈥�), an education technology holding company, today announced financial results for its second quarter fiscal year 2023 ended October 31, 2022.

Second Quarter Fiscal Year 2023 Summary Results

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¹ GAAP gross profit calculation includes marketing and promotional costs, instructional costs and services, and amortization expense of $0.5 million and $0.5 million, and $1.0 million and $0.9 million for the three and six months ended October 31, 2022 and 2021, respectively.
² Non-GAAP financial measures. See reconciliations of GAAP to non-GAAP financial measures under "Non-GAAP鈥�Financial Measures" starting on page 5.

鈥淲e are encouraged by our second quarter results which reflect the impact of reduced marketing and general and administrative spend as part of our restructuring initiative that we launched in the prior quarter,鈥� said Michael Mathews, Chairman, and CEO of AGI. 鈥淕ross margin improved by 900 basis points on lower revenue, and we narrowed our net loss and delivered positive adjusted EBITDA. USU鈥檚 revenue grew 9%, due to continued strong demand for the MSN-FNP program, which helped to offset the expected decline in AU revenue coming from the teach-out of our BSN pre-licensure program and lower marketing spend.鈥�

鈥淭he restructuring initiated in the first quarter of fiscal year 2023 reduced cash used in operations in the second quarter by $4.6 million, enabling AGI to generate positive operating cash flow of $1 million,鈥� continued Mr. Mathews. 鈥淎t the end of Q2, we issued an 8-K stating that AGI and the Arizona State Board for Private Postsecondary Education entered into a revised stipulated agreement that reduces AU鈥檚 surety bond requirement from $18.3 million to $5.5 million and requires a teach-out of the core component of the pre-licensure program, among other requirements. As a result, our surety bond provider has recently agreed to return $1.5 million of the $5 million cash previously being held as collateral, providing additional cash for operations.鈥�

Mr. Mathews concluded, 鈥淎s previously stated, we engaged Lampert Capital Advisors to assist with securing an accounts receivable (AR) financing agreement. After conducting due diligence on our accounts receivable, Lampert has begun outreach to prospective lenders.鈥�

Fiscal Q2 2023 Financial and Operational Results (compared to Fiscal Q2 2022)

Revenue decreased by 10% to $17.1 million compared to $18.9 million. The following table presents the Company鈥檚 revenue, both per-subsidiary and total:

AU revenue decreased by $2.4 million or 19% in Fiscal Q2 2023 compared to Fiscal Q2 2022, with the pre-licensure program accounting for $0.5 million of the decrease. The remainder of the decrease is primarily due to lower post-licensure enrollments attributed to lower marketing spend related to the restructuring initiated in Fiscal Q1 2023. The active student body at AU decreased from 11,184 at October 31, 2021 to 7,973 at October 31, 2022.

USU revenue increased 9% compared to Fiscal Q2 2022 due primarily to USU's MSN-FNP program, the USU post-licensure degree program with the highest concentration of students and the highest LTV. The active student body at USU decreased from 3,134 at October 31, 2021 to 2,984 at October 31, 2022.

GAAP gross profit increased 6% to $10.2 million in Fiscal Q2 2023 compared to $9.7 million Fiscal Q2 2022, and sequentially 25% from $8.2 million in Fiscal Q1 2023. The increases were primarily due to lower cost of revenue associated with the marketing spend decrease to $0.8 million in Fiscal Q2 2023, down from $4.0 million in Fiscal Q2 2022 and $4.5 million in Fiscal Q1 2023. The reduction in marketing spend is part of the Company鈥檚 Fiscal Q2 2023 restructuring initiatives.

Gross margin was 60% compared to 51% in Fiscal Q2 2022 and 43% in Fiscal Q1 2023. AU gross margin was 60% versus 50%, and USU gross margin was 67% versus 58%.

During Fiscal Q2 2023, AU instructional costs and services represented 34% of AU revenue, and USU instructional costs and services represented 29% of USU revenue. During Fiscal Q2 2023, AU marketing and promotional costs represented 2% of AU revenue, while USU marketing and promotional costs represented 3% of USU revenue.

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

Net loss decreased 20% to $(2.3) million in Fiscal Q2 2023 compared to a loss of $(2.9) million Fiscal Q2 2022. The decrease was primarily due to the improvement in the gross margin. Also included in the Fiscal Q2 2023 net loss are spend reductions of approximately $4.5 million related to the restructuring plan implemented in Fiscal Q2 2023 consisting of a $3.7 million decrease in marketing spend and a $0.8 million decrease is general and administrative and other spend. Offsetting the Fiscal Q2 2023 decrease in general and administrative spend related to the restructuring are increases in stock compensation costs due to the reversal of expense for performance awards in Fiscal Q1 2022 and costs related to regulatory matters. Included in the AGI net loss is interest expense of $0.7 million compared to $0.1 million. The Fiscal Q2 2023 interest expense includes a 1% commitment fee of $0.2 million on the undrawn 2022 Revolving Credit Facility, which will not repeat in subsequent quarters.

The following tables present the Company鈥檚 Non-GAAP measures, both per subsidiary and total. See reconciliations of GAAP to non-GAAP financial measures under 鈥淣on-GAAP鈥揊inancial Measures鈥� starting on page 5.

Operating Metrics

New Student Enrollments

New student enrollments decreased 46% year-over-year from 2,380 to 1,290. Over the past five quarters, new student enrollments were impacted by the enrollment stoppage at our pre-licensure campuses and the reduction in marketing spend.

Five quarters of new student enrollments are shown below:

New student enrollments, bookings and ARPU for Q2鈥�23 versus Q2鈥�22 are shown below (rounding differences may occur):

_____________________
¹ 鈥淏ookings鈥� are defined by multiplying Lifetime Value (LTV) by new student enrollments for each operating unit. 鈥淎verage Revenue Per Enrollment鈥� (ARPU) is defined by dividing total Bookings by total new student enrollments for each operating unit.

Total Active Student Body

AGI's active degree-seeking student body, including AU and USU, declined 23% year-over-year to 10,957 from 14,318. AU's total active student body decreased by 29% year-over-year to 7,973 from 11,184. On a year-over-year basis, USU's total active student body decreased by 5% to 2,984 from 3,134.

Five quarters of total active student body is shown below:

Nursing Students

Students seeking nursing degrees were 9,392, or 86% of total active students at both universities. Of the students seeking nursing degrees, 8,269 are RNs studying to earn an advanced degree, including 5,517 at Aspen University and 2,752 at USU. In contrast, the remaining 1,123 nursing students are enrolled in Aspen University鈥檚 BSN Pre-Licensure program. The majority of the year-over-year Aspen University nursing student body decrease is a result of the enrollment stoppage and teach out of the pre-licensure program and the $3.1 million reduction in marketing spend in the second quarter of fiscal 2023 as compared to the same quarter of fiscal 2022.

Liquidity

At October 31, 2022, the Company had unrestricted cash of $2.3 million and restricted cash of $6.4 million. The restricted cash balance includes $5 million for an approximately $18.3听million surety bond required by the Arizona State Board for Postsecondary Education, which was reduced to $5.5 million on October 31, 2022 in a revised stipulated agreement.

In a subsequent event following the close of the quarter on October 31, 2022, the surety bond firm recently agreed to return to the Company $1.5 million of the $5 million restricted cash they were holding as collateral for the bond, which will be used for general operating purposes.

Cash flow used in operations for the six months ended October 31, 2022 was $2.6 million. Approximately $2.3 million of cash used in operations is attributed to our EBITDA loss and $0.3 million is attributed to changes in working capital primarily related to increases in short-term and long-term monthly payment plan accounts receivable and deferred revenue. Management believes the Company is positioned to generate positive operating cash flow in the second half of fiscal 2023 as a result of the restructuring plan initiated late in the first quarter of fiscal 2023.

Conference Call

桃汁影院, Inc. will host a conference call to discuss its second quarter fiscal year 2023 results on Tuesday, December 13, 2022, at 4:30 pm ET. 桃汁影院, Inc. will issue a press release reporting results after the market closes on that day. The conference call can be accessed by dialing toll-free (877) 704-4453 (U.S.) or (201) 389-0920 (International), passcode 13734314.

Subsequent to the call, a transcript of the audio cast will be available from the Company鈥檚 website at www.aspu.com. A dial-in replay will be available starting at 7:30 pm ET on December 13, 2022 through 11:59 pm ET on December 20, 2022, which can be accessed by dialing toll-free (844) 512-2921 (U.S.) or (412) 317-6671 (International), passcode 13734314.

For additional information on the financial statements and performance, please refer to the 桃汁影院, Inc. Form 10-Q for the second quarter of fiscal year 2023 and Q2 2023 Financial Results Presentation published on the Company鈥檚 website at , on the Presentations page under Company Info.

Non-GAAP 鈥� 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鈥檚 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 company under applicable rules of the Securities and Exchange Commission (the 鈥淪EC鈥�).

AGI defines Adjusted EBITDA as EBITDA excluding: (1) bad debt expense; (2) stock-based compensation; and (3) non-recurring charges.

The following table presents a reconciliation of net loss to EBITDA and Adjusted EBITDA and of net income (loss) margin to the Adjusted EBITDA margin:

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:

_____________________
NM 鈥� Not meaningful

Definitions

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

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

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

Adjusted EBITDA Margin 鈥� is defined as Adjusted EBITDA divided by revenue. We believe Adjusted EBITDA margin is useful for management, analysts and investors as this measure allows for a more meaningful comparison between our performance and that of our competitors. Adjusted EBITDA margin has certain limitations in that it does not take into account the impact to our consolidated statement of operations of certain expenses.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including the expected impact of our efforts to reduce expenses, our ability to generate positive operating cash flow in the second half of fiscal 2023, continued strong demand for the MSN-FNP program, and our plans and efforts to locate and close an accounts receivable facility, and liquidity. The words 鈥渂elieve,鈥� 鈥渕ay,鈥� 鈥渆stimate,鈥� 鈥渃ontinue,鈥� 鈥渁nticipate,鈥� 鈥渋ntend,鈥� 鈥渟hould,鈥� 鈥減lan,鈥� 鈥渃ould,鈥� 鈥渢arget,鈥� 鈥減otential,鈥� 鈥渋s likely,鈥� 鈥渨ill,鈥� 鈥渆xpect鈥� and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include management鈥檚 ability to navigate the challenges we face due to adverse regulatory developments and our ability to prepare and execute a viable business strategy following those events, the continued demand of nursing students for our programs, student attrition, national and local economic factors, competition from nursing schools in local markets, the competitive impact from the trend of major non-profit universities using online education and consolidation among our competitors, and the myriad of risks which may affect our ability to close an accounts receivable financing ranging from locating a willing lender to contractual difficulties including covenants which prevent us from closing a facility. Other risks are included in our filings with the SEC including our Form 10-K for the year ended April 30, 2022. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

About 桃汁影院, Inc.

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

Investor Relations Contact

Kim Rogers
Managing Director
Hayden IR
385-831-7337听

GAAP Financial Statements

ASPEN GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

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