Aspen Group, Inc. (NASDAQ:ASPU) Q2 2024 Earnings Call Transcript

And we issued JGB penny warrants equal to 4% of the outstanding stock of AGI. Subsequent to the closing of the quarter, we received $1 million from the reduction of the surety bond required by the state of Arizona. Additionally, as Mike mentioned, we anticipate the receipt of a $3.9 million reimbursement from Department of Education for student financial aid prior to the end of January 2024. After the receipt of the Department of Education payment, the company’s unrestricted cash balance is projected to exceed $2 million. Cash used in operations for the first six months of fiscal 2024 was $4.2 million. Importantly though, cash generated from operations for the second quarter was positive $409,000. In the first quarter, we used $4.6 million of cash in operations due to delays in receiving government student financial aid payments after our placement on the HCM2 payment method and due to increased student AR as strong enrollments increased use of the monthly payment plan.

In the second quarter, we generated $409,000 of cash from operations due to the processing of two HCM2 payments totaling $4.8 million and the impact of ongoing cost savings, which were offset by an increase in student accounts receivable due to continued strong enrollments. We had CapEx spend during the first six months of $600,000 primarily related to capitalized software. Cash generated from financing activities for six months was $5.2 million due to cash provided by the 15% Debentures offset by the repayment of outstanding borrowings under the $5 million credit facility, repayment of a portion of the outstanding 15% Debentures, and expenses associated with the Debenture offering. With respect to our share count, the weighted average number of common basic shares outstanding at the end of the quarter was 25,548,046 versus 25,305,363 in the year-ago quarter.

We are not providing guidance at this time. That concludes our prepared remarks. I will now turn the call back to the operator for questions. Operator, please open the call for Q&A.

Operator:

Michael Mathews: Thank you, everyone, for joining our second quarter fiscal ‘24 earnings call. Look forward to speaking with you again In our in our Q3 earnings call in March. Have a good day. Thank you.

Operator: Ladies and gentlemen, this does include today’s teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.