Aspen Group Delivers Positive Net Income in Fourth Quarter Fiscal 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 鈥揝eptember 17, 2025 - Aspen Group, Inc. (OTCQB: 51吃瓜网) (鈥淎GI鈥� 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

听	Three Months Ended April 30,			听	Twelve Months Ended April 30,
*$ in millions, except per share data*	2025	听	2024	听	2025	听	2024
Revenue	$听听听听听听 11.6听听听	听	$听听听听听听 10.9听听听	听	$听听听听听听 45.3听听听	听	$听听听听听听 51.4听听听
Gross Profit¹	$听听听听听听听听 8.2听听听	听	$听听听听听听听听 7.0听听听	听	$听听听听听听 31.3听听听	听	$听听听听听听 33.6听听听
Gross Margin (%)¹	71 %	听	64 %	听	69 %	听	65 %
Operating Income (Loss)	$听听听听听听听听 1.4听听听	听	$听听听听听听 (4.0)听听	听	$听听听听听听 (0.7)听听	听	$听听听听听听 (6.0)听听
Net Income (Loss)²	$听听听听听听听 0.6听听听	听	$听听听听听听 (7.4)听听	听	$听听听听听听 (1.5)听听	听	$听听听听听听 (13.6)听听
Earnings (Loss) per Share	$听听听听听听0.02听听听	听	$听听听听听 (0.29)听	听	$听听听听听 (0.07)听听	听	$听听听听听 (0.53)听听
EBITDA³	$听听听听听听听听 1.7听听听	听	$听听听听听听 (5.6)听听	听	$听听听听听听 2.9听听听听	听	$听听听听听听 (4.8)听听
Adjusted EBITDA³	$听听听听听听听听 2.0听听听	听	$听听听听听听 (0.7)听听	听	$听听听听听听听听 5.7听听听	听	$听听听听听听听听 2.5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听听}

¹GAAP 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.

²See reconciliations of Net income (loss) to EBITDA and Adjusted EBITDA under 鈥淣on-GAAP鈥�Financial Measures鈥� 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 inNet income (loss). 听

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

Michael Mathews, Chairman and CEO of AGI, stated: 鈥淲e 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鈥檚 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. 听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.鈥�

Mr. Mathews added, 鈥淲e 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.鈥�

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鈥檚 revenue, both per-subsidiary and total:

听	Three Months Ended April 30,
听	2025	听	$ Change	听	% Change	听	2024
AU	$听听 4,397,499	听	$听听 (708,651)	听	(14)%	听	$听听 5,106,150
USU	听听听听 7,171,999	听	听听 1,409,413	听	24%	听	听听听 5,762,586
Revenue	$ 11,569,498	听	$听听听 700,762	听	6%	听	$ 10,868,736

Aspen University's (鈥淎U鈥�) 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 (鈥淯SU鈥�) 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鈥檚 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.听 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.听

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

听	Three Months Ended April 30, 2025
听	Consolidated	听	AGI Corporate	听	AU	听	USU
Net income (loss) available to common stockholders	$听听听 616,848	听	$听 (1,870,177)	听	$听 305,213	听	$听听听 2,181,812
听听听听 Net income per share available to common stockholders	$听听听听听听听听听听 0.02	听	听	听	听	听	听
听	Three Months Ended April 30, 2024
听	Consolidated	听	AGI Corporate	听	AU	听	USU
Net income (loss) available to common stockholders	$听 (7,447,068)	听	$听 (7,056,305)	听	$ 听听(1,924,899)	听	$听听听 1,534,136
听听 Net loss per share available to common stockholders	$听听听听听听听听 (0.29)	听	听	听	听	听	听

听听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 4.

听	Three Months Ended April 30, 2025
听	Consolidated	听	AGI Corporate	听	AU	听	USU
EBITDA	$1,653,591	听	$(1,473,450)	听	$794,562	听	$2,332,479
听听听听 EBITDA Margin	14%	听	NM	听	18%	听	33%
Adjusted EBITDA	$1,994,269	听	$(1,740,083)	听	$1,170,507	听	$2,563,845
听听听听 Adjusted EBITDA Margin	17%	听	NM	听	27%	听	36%

__________________

NM 鈥� Not meaningful

听	Three Months Ended April 30, 2024
听	Consolidated	听	AGI Corporate	听	AU	听	USU
EBITDA	$(5,622,156)	听	$(6,015,312)	听	$(1,276,726)	听	$1,669,882
听听听听 EBITDA Margin	52%	听	NM	听	(25)%	听	29%
Adjusted EBITDA	$(689,339)	听	$(2,208,484)	听	$126,371	听	$1,392,774
听听听听 Adjusted EBITDA Margin	(6)%	听	NM	听	2%	听	24%

听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.听

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.听

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

听	Q4'24	听	Q1'25	听	Q2'25	听	Q3'25	听	Q4'25
Aspen University	听听听听听听听听 427	听	听听听听听听听听 413	听	听听听听听听听听 508	听	听听听听听听听听 359	听	听听听听听听听听 350
USU	听听听听听听听听 370	听	听听听听听听听听 410	听	听听听听听听听听 442	听	听听听听听听听听 196	听	听听听听听听听听 258
Total	听听听听听听听听 797	听	听听听听听听听听 823	听	听听听听听听听听 950	听	听听听听听听听听 555	听	听听听听听听听听 608

听Total Active Student Body

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

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

听	Q4'24	听	Q1'25	听	Q2'25	听	Q3'25	听	Q4'25
Aspen University	听听听听听听 4,559	听	听听听听听听 4,145	听	听听听听听听 3,827	听	听听听听听听 3,564	听	听听听听 3,375
USU	听听听听听听 2,489	听	听听听听听听 2,477	听	听听听听听听 2,560	听	听听听听听听 2,475	听	听听听听 2,434
Total	听听听听听听 7,048	听	听听听听听听 6,622	听	听听听听听听 6,387	听	听听听听听听 6,039	听	听听听听 5,809

听Nursing Students

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

听	Q4'24	听	Q1'25	听	Q2'25	听	Q3'25	听	Q4'25
Aspen University	听听听听听听 3,526	听	听听听听听听 3,198	听	听听听听听听 2,948	听	听听听听听听 2,745	听	听听听听听听 2,606
USU	听听听听听听 2,262	听	听听听听听听 2,254	听	听听听听听听 2,300	听	听听听听听听 2,297	听	听听听听听听 2,254
Total	听听听听听听 5,788	听	听听听听听听 5,452	听	听听听听听听 5,248	听	听听听听听听 5,042	听	听听听听听听 4,860

Liquidity听

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.听

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.听 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 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.听

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.听

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:

听	Three Months Ended April 30,			听	For the Years Ended April 30,
听	2025	听	2024	听	2025	听	2024
Net income (loss)	$听听听听听 616,848	听	$听 (7,447,068)	听	$听 (1,544,892)	听	$ (13,578,756)
Interest expense, net	听听听听听听听 325,603	听	听听听听 1,010,121	听	听听听听 1,368,892	听	听听听听 4,979,486
Taxes	听听听听听听听听听听 6,381	听	听听听听听听听 (74,404)	听	听听听听听听听听听 56,149	听	听听听听听听听听 78,374
Depreciation and amortization	听听听听听听听 704,759	听	听听听听听听听 889,195	听	听听听听 3,055,568	听	听听听听 3,718,621
EBITDA	听听听听 1,653,591	听	听听听 (5,622,156)	听	听听听听 2,935,717	听	听听听 (4,802,275)
Provision for credit losses	听听听听听听听 600,000	听	听听听听听听听 744,661	听	听听听听 1,950,000	听	听听听听 2,094,661
Stock-based compensation	听听听听听 (706,895)	听	听听听听听听听 149,735	听	听听听听听 (291,548)	听	听听听听听听听 677,392
Severance	听听听听听听听听听 13,876	听	听听听听听听听听听听听听听听鈥�	听	听听听听听听听 135,526	听	听听听听听听听听听听听听听听鈥�
Impairments of right-of-use assets and tenant leasehold improvements	听听听听听听听听听听听听听听鈥�	听	听听听听 1,421,096	听	听听听听 1,848,209	听	听听听听 1,526,410
Loss on debt extinguishment	听听听听听听听听听听听听听听鈥�	听	听听听听 2,053,417	听	听听听听听听听听听听听听听听鈥�	听	听听听听 2,053,417
Change in fair value of put warrant liability	听听听听听听听 433,697	听	听听听听听听听 599,438	听	听听听听听 (537,072)	听	听听听听听听听 505,989
Non-recurring charges (income) - Other	听听听听听听听听听听听听听听鈥�	听	听听听听听听听 (35,530)	听	听听听听听 (387,298)	听	听听听听听听听 402,568
Adjusted EBITDA	$听听听 1,994,269	听	$听听听听 (689,339)	听	$听听听 5,653,534	听	$听听 2,458,162

Net loss Margin	5 %	听	(69) %	听	(3) %	听	(26) %
EBITDA Margin	14 %	听	(52) %	听	6 %	听	(9) %
Adjusted EBITDA Margin	17 %	听	(6) %	听	12 %	听	5 %

听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:

听	Three Months Ended April 30, 2025
听	Consolidated	听	AGI Corporate	听	AU	听	USU
Net income (loss)	$听听听听听 616,848	听	$听听听听 (1,870,177)	听	$听听听听听 305,213	听	$听听听 2,181,812
Interest expense, net	听听听听听听 325,603	听	听听听听听听听听听听 325,603	听	听听听听听听听听听听听听听听鈥�	听	听听听听听听听听听听听听听听听鈥�
Taxes	听听听听听听听听听听 6,381	听	听听听听听听听听听听听听听 2,369	听	听听听听听听听听听听 3,962	听	听听听听听听听听听听听听听听听 50
Depreciation and amortization	听听听听听听 704,759	听	听听听听听听听听听听听 68,755	听	听听听听听听听 485,387	听	听听听听听听听 150,617
EBITDA	听听听听 1,653,591	听	听听听听听听 (1,473,450)	听	听听听听听听听 794,562	听	听听听听听 2,332,479
Provision for credit losses	听听听听听听 600,000	听	听听听听听听听听听听听听听听听听听鈥�	听	听听听听听听听 375,000	听	听听听听听听听 225,000
Stock-based compensation	听听听听听 (706,895)	听	听听听听听听听听 (705,230)	听	听听听听听听听听听 (2,612)	听	听听听听听听听听听听听听听 947
Severance	听听听听听听听听 13,876	听	听听听听听听听听听听听听听 4,900	听	听听听听听听听听听听 3,557	听	听听听听听听听听听听 5,419
Change in fair value of put warrant liability	听听听听听听 433,697	听	听听听听听听听听听听 433,697	听	听听听听听听听听听听听听听听鈥�	听	听听听听听听听听听听听听听听听鈥�
Adjusted EBITDA	$听听 1,994,269	听	$听听听听 (1,740,083)	听	$听听听 1,170,507	听	$听听听 2,563,845

听

Net income margin	5 %	听	NM	听	7 %	听	30 %
EBITDA margin	14 %	听	NM	听	18 %	听	33 %
Adjusted EBITDA margin	17 %	听	NM	听	27 %	听	36 %

_____________________

NM 鈥� Not meaningful

听	Three Months Ended April 30, 2024
听	Consolidated	听	AGI Corporate	听	AU	听	USU
Net income (loss)	$听 (7,447,068)	听	$听听听听 (7,056,305)	听	$听 (1,924,899)	听	$听听听 1,534,136
Interest expense (income), net	听听听听 1,010,121	听	听听听听听听听 1,010,121	听	听听听听听听听听听听听听听听鈥�	听	听听听听听听听听听听听听听听听鈥�
Taxes	听听听听听听听 (74,404)	听	听听听听听听听听听 (49,108)	听	听听听听听听听 (13,778)	听	听听听听听听听 (11,518)
Depreciation and amortization	听听听听听听听 889,195	听	听听听听听听听听听听听 79,980	听	听听听听听听听 661,951	听	听听听听听听听 147,264
EBITDA	听听听 (5,622,156)	听	听听听听听 (6,015,312)	听	听听听 (1,276,726)	听	听听听听听 1,669,882
Bad debt expense	听听听听听听听 744,661	听	听听听听听听听听听听听听听听听听听鈥�	听	听听听听 1,077,468	听	听听听听听听 (332,807)
Stock-based compensation	听听听听听听听 149,735	听	听听听听听听听听听 143,505	听	听听听听听听听听听听 4,531	听	听听听听听听听听听听听 1,699
Impairments of right-of-use assets and tenant leasehold improvements	听听听听 1,421,096	听	听听听听听听听 1,214,398	听	听听听听听听听 206,698	听	听听听听听听听听听听听听听听听鈥�
Loss on debt extinguishment	听听听听 2,053,417	听	听听听听听听听 2,053,417	听	听听听听听听听听听听听听听听鈥�	听	听听听听听听听听听听听听听听听鈥�
Change in fair value of put warrant liability	听听听听听听听 599,438	听	听听听听听听听听听 599,438	听	听听听听听听听听听听听听听听鈥�	听	听听听听听听听听听听听听听听听鈥�
Non-recurring charges (income) - Other	听听听听听听听 (35,530)	听	听听听听听听听听 (203,930)	听	听听听听听听听 114,400	听	听听听听听听听听听 54,000
Adjusted EBITDA	$听听听 (689,339)	听	$听听听听 (2,208,484)	听	$听听听听听 126,371	听	$听听听 1,392,774

听

Net income (loss) margin	(69) %	听	NM	听	(38) %	听	27 %
EBITDA margin	(52) %	听	NM	听	(25) %	听	29 %
Adjusted EBITDA margin	(6) %	听	NM	听	2 %	听	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.听听

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.听

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听 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.听

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听

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

GAAP Financial Statements

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS听

听	April 30,
听	2025	听	2024
Assets	听	听	听
Current assets:	听	听	听
Cash and cash equivalents	$听听听听 736,871	听	$听听 1,531,425
Restricted cash	听听听听听听 338,002	听	听听听 1,088,002
Accounts receivable, net of allowance of $5,731,139 and $4,560,378, respectively	听听 17,167,346	听	听听 19,686,527
Prepaid expenses	听听听听听听 443,366	听	听听听听听听 502,751
Other current assets	听听听听听听 518,171	听	听听听 1,785,621
Total current assets	听听 19,203,756	听	听听 24,594,326
听	听	听	听
Property and equipment:	听	听	听
听听 Computer equipment and hardware	听听听听听听 894,251	听	听听听听听听 886,152
听听 Furniture and fixtures	听听听 1,974,271	听	听听听 1,974,271
听听 Leasehold improvements	听听听 5,621,087	听	听听听 6,553,314
听听 Instructional equipment	听听听听听听 529,299	听	听听听听听听 529,299
听听 Software	听听听 7,527,066	听	听听听 8,784,996
听	听听 16,545,974	听	听听 18,728,032
Accumulated depreciation and amortization	听听 (9,907,309)	听	听听 (9,542,520)
听听听听听 Property and equipment, net	听听听 6,638,665	听	听听听 9,185,512
Goodwill	听听听 5,011,432	听	听听听 5,011,432
Intangible assets	听听听 7,900,000	听	听听听 7,900,000
Courseware and accreditation, net	听听听听听听 256,994	听	听听听听听听 363,975
Long-term contractual accounts receivable	听听 19,846,823	听	听听 17,533,030
Operating lease right-of-use assets, net	听听听 7,250,407	听	听听 10,639,838
Deposits and other assets	听听听听听听 657,850	听	听听听听听听 718,888
Total assets	$ 66,765,927	听	$ 75,947,001

(Continued)

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (CONTINUED)听

听	April 30,
听	2025	听	2024
Liabilities and Stockholders鈥� Equity	听	听	听
Liabilities:	听	听	听
Current liabilities:	听	听	听
Accounts payable	$听听 2,055,173	听	$听听 2,311,360
Accrued expenses	听听听 2,483,520	听	听听听 2,880,478
Advances on tuition	听听听 2,235,332	听	听听听 2,030,501
Deferred tuition	听听听 2,535,533	听	听听听 4,881,546
Due to students	听听听 2,115,581	听	听听听 2,558,492
Operating lease obligations, current portion	听听听 2,811,471	听	听听听 2,608,534
Debt, current portion	听听听 2,000,000	听	听听听 2,284,264
Other current liabilities	听听听听听听 185,296	听	听听听听听听听听 86,495
Total current liabilities	听听 16,421,906	听	听听 19,641,670
听	听	听	听
Long-term debt, net	听听听 5,224,524	听	听听听 6,776,506
Operating lease obligations, less current portion	听听 12,398,678	听	听听 14,999,687
Warrant liabilities	听听听 1,427,521	听	听听听 1,964,593
Other long-term liabilities	听听听听听听 327,402	听	听听听听听听 287,930
Total liabilities	听听 35,800,031	听	听听 43,670,386
听	听	听	听
Commitments and contingencies	听	听	听
听	听	听	听
Stockholders鈥� equity:	听	听	听
听	听	听	听
Preferred stock, $0.001 par value; 1,000,000 shares authorized, 10,000 issued and outstanding at both April听30, 2025 and 2024, respectively	听听听听听听听听听听听听听 10	听	听听听听听听听听听听听听听 10
Common stock, $0.001 par value; 85,000,000 shares authorized, 28,389,531 and 25,701,603 issued and outstanding at April听30, 2025 and 2024, respectively	听听听听听听听听 28,390	听	听听听听听听听听 25,702
Additional paid-in capital	122,152,533	听	121,921,048
Accumulated deficit	(91,215,037)	听	(89,670,145)
Total stockholders鈥� equity	听听 30,965,896	听	听听 32,276,615
Total liabilities and stockholders鈥� equity	$ 66,765,927	听	$ 75,947,001

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS听

听	Years Ended April 30,
听	2025	听	2024
Revenue, net	$ 45,302,082	听	$听听听 51,395,302
听	听	听	听
Operating expenses:	听	听	听
Cost of revenue (exclusive of depreciation and amortization shown separately below)	听听 12,190,949	听	听听听听 16,232,385
General and administrative	听听 26,889,423	听	听听听听 33,497,456
Impairments of right-of-use assets and tenant leasehold improvements	听听听 1,848,209	听	听听听听听听 1,526,410
Loss on asset dispositions	听听听听听听听听 35,984	听	听听听听听听听听听 308,055
Provision for credit losses	听听听 1,950,000	听	听听听听听听 2,094,661
Depreciation and amortization	听听听 3,055,568	听	听听听听听听 3,718,621
Total operating expenses	听听 45,970,133	听	听听听听 57,377,588
听	听	听	听
Operating loss	听听听听 (668,051)	听	听听听听听 (5,982,286)
听	听	听	听
Other income (expense):	听	听	听
Interest expense	听听 (1,368,892)	听	听听听听听 (4,979,507)
Loss on debt extinguishment	听听听听听听听听听听听听听鈥�	听	听听听听听 (2,053,417)
Change in fair value of put warrant liability	听听听听听听 537,072	听	听听听听听听听 (505,989)
Other income, net	听听听听听听听听 11,128	听	听听听听听听听听听听 20,817
Total other expense, net	听听听听 (820,692)	听	听听听听听 (7,518,096)
听	听	听	听
Loss before income taxes	听听 (1,488,743)	听	听听听 (13,500,382)
听	听	听	听
Income tax expense	听听听听听听听听 56,149	听	听听听听听听听听听听 78,374
听	听	听	听
Net loss	听听 (1,544,892)	听	听听听 (13,578,756)
听	听	听	听
Dividends attributable to preferred stock	听听听听 (370,600)	听	听听听听听听听听听 (59,836)
听	听	听	听
Net loss available to common stockholders	$ (1,915,492)	听	$听 (13,638,592)
听	听	听	听
Net loss per share - basic and diluted available to common stockholders	$听听听听听听听听 (0.07)	听	$听听听听听听听听听听 (0.53)
听	听	听	听
Weighted average number of common shares outstanding - basic and diluted	听听 27,140,245	听	听听听听 25,590,919

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS鈥� EQUITY

YEARS ENDED APRIL听30, 2025 AND 2024听

听

Preferred Stock

听

Common Stock

听

Additional
Paid-In
Capital

听

Treasury Stock

听

Accumulated

Deficit

听

Total
Stockholders'
Equity

听

Shares

听

Amount

听

Shares

听

Amount

听

Balance as of April 30, 2023

听听听听听听听听听听听听听鈥斕�

听

$听听听听听听鈥斕�

听

25,592,802听

听

$听 25,593听

听

$ 113,429,992听听

听

$听 (1,817,414)

听

$听 (76,091,389)

听

$听听 35,546,782听

Stock-based compensation

听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听鈥斕�

听

听听听听听听听听听 677,392听

听

听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听 677,392听

Common stock issued for vested restricted stock units

听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听鈥斕�

听

听听听听听 239,287听

听

听听听听听听听听听 239听

听

听听听听听听听听听听听听听听听 (239)

听

听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听听听听听鈥斕�

Common stock issued for services

听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听鈥斕�

听

听听听听听听听 25,000听

听

听听听听听听听听听听听 25听

听

听听听听听听听听听听听听听 1,833听

听

听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听 1,858听

Cancellation of treasury stock

听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听鈥斕�

听

听听听 (155,486)

听

听听听听听听听 (155)

听

听听听 (1,817,259)

听

听听听 1,817,414听

听

听听听听听听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听听听听听鈥斕�

Amortization of warrant-based cost issued for services

听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听 28,000听

听

听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听 28,000听

Accrued dividends

听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听鈥斕�

听

听听听听听听听听听 (59,836)

听

听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听 (59,836)

Conversion of Convertible Notes into preferred stock

听听听听听 10,000听听听听听

听

听听听听听听听听听 10听

听

听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听鈥斕�

听

听听听听听 9,999,990听

听

听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听听听听听听鈥斕�

听

听听听听 10,000,000听

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

听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听鈥斕�

听

听听听听听听听听听 154,000听

听

听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听 154,000听

Reclassification of warrants to put liability

听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听鈥斕�

听

听听听听听听听 (500,825)

听

听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听 (500,825)

Warrant modifications

听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听 8,000听

听

听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听 8,000听

Net loss

听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听鈥斕�

听

听听听 (13,578,756)

听

听听 (13,578,756)

Balance as of April 30, 2024

听听听听听 10,000听听听听听

听

$听听听听听听 10听

听

25,701,603听

听

$听 25,702听

听

$ 121,921,048听听

听

$听听听听听听听听听听听听听听鈥斕�

听

$听 (89,670,145)

听

$听听 32,276,615听

Stock-based compensation

听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听鈥斕�

听

听听听听听听听听听 256,786听

听

听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听 256,786听

Common stock issued for vested restricted stock units

听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听鈥斕�

听

听听听听听 340,516听

听

听听听听听听听听听 341听

听

听听听听听听听听听听听听听听听 (341)

听

听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听听听听听鈥斕�

Amortization of warrant-based cost issued for services

听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听 7,000听

听

听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听 7,000听

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

听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听 12,965听

听

听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听 12,965听

Common Stock issued for accrued dividends

听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听鈥斕�

听

听听 2,347,412听

听

听听听听听听 2,347听

听

听听听听听听听听听听听 (2,347)

听

听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听听听听听鈥斕�

Accrued dividends

听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听鈥斕�

听

听听听听听听听听听 (42,578)

听

听听听听听听听听听听鈥�

听

听听听听听听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听 (42,578)

Net loss

听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听听听听听听听听听听听鈥斕�

听

听听听听听听 (1,544,892)

听

听听听听 (1,544,892)

Balance as of April 30, 2025

听听听听听 10,000听听听听听

听

$听听听听听听 10听

听

28,389,531听

听

$听 28,390听

听

$ 122,152,533听听

听

$听听听听听听听听听听听听听听鈥斕�

听

$听 (91,215,037)

听

$听听 30,965,896听

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)听

听	Years Ended April 30,
听	2025	听	2024
Cash flows from operating activities:	听	听	听
Net loss	$听听听听听听 (1,544,892)	听	$听听听听 (13,578,756)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:	听	听	听
Provision for credit losses	听听听听听听听听听听 1,950,000	听	听听听听听听听听听听 2,094,661
Depreciation and amortization	听听听听听听听听听听 3,055,568	听	听听听听听听听听听听 3,718,621
Stock-based compensation	听听听听听听听听听听听听听 256,786	听	听听听听听听听听听听听听听 677,392
Change in fair value of put warrant liability	听听听听听听听听听听听 (537,072)	听	听听听听听听听听听听听听听 505,989
Amortization of warrant-based cost	听听听听听听听听听听听听听听听听听 7,000	听	听听听听听听听听听听听听听听听 28,000
Warrant modification	听听听听听听听听听听听听听听听听听听听听听听鈥�	听	听听听听听听听听听听听听听听听听听 8,000
Amortization of debt issuance costs	听听听听听听听听听听听听听听听 53,160	听	听听听听听听听听听听 1,275,377
Amortization of debt discounts	听听听听听听听听听听听听听听听听听听听听听听鈥�	听	听听听听听听听听听听听听听 405,342
Loss on debt extinguishment	听听听听听听听听听听听听听听听听听听听听听听鈥�	听	听听听听听听听听听听 2,053,417
Common stock issued for services	听听听听听听听听听听听听听听听听听听听听听听鈥�	听	听听听听听听听听听听听听听听听听听 1,858
Loss on asset dispositions	听听听听听听听听听听听听听听听 35,984	听	听听听听听听听听听听听听听 308,055
Non-cash lease benefit	听听听听听听听听听听听 (318,971)	听	听听听听听听听听听听听 (850,467)
Impairments of right-of-use assets and tenant leasehold improvements	听听听听听听听听听听 1,848,209	听	听听听听听听听听听听 1,526,410
Changes in operating assets and liabilities:	听	听	听
Accounts receivable	听听听听听听听听 (1,744,612)	听	听听听听听听听听 (4,188,553)
Prepaid expenses	听听听听听听听听听听听听听听听 59,385	听	听听听听听听听听听听听听听 107,149
Other current assets	听听听听听听听听听听 1,267,450	听	听听听听听听听听听听 1,283,297
Deposits and other assets	听听听听听听听听听听听听听听听 61,038	听	听听听听听听听听听听听 (508,352)
Accounts payable	听听听听听听听听听听听 (256,187)	听	听听听听听听听听听听听听听听听 60,458
Accrued expenses	听听听听听听听听听听听 (396,958)	听	听听听听听听听听听听听听听 415,503
Due to students	听听听听听听听听听听听 (442,911)	听	听听听听听听听听听听听听听 (66,339)
Advances on tuition and deferred tuition	听听听听听听听听 (2,141,182)	听	听听听听听听听听听听 1,044,034
Other current liabilities	听听听听听听听听听听听听听听听 98,801	听	听听听听听听听听听听听听听 (22,833)
Other long-term liabilities	听听听听听听听听听听听听听听听 39,472	听	听听听听听听听听听听听听听听听 37,930
Net cash provided by (used in) operating activities	听听听听听听听听听听 1,350,068	听	听听听听听听听听 (3,663,807)
听	听	听	听
Cash flows from investing activities:	听	听	听
Purchases of courseware and accreditation	听听听听听听听听听听听听听 (57,210)	听	听听听听听听听听听听听 (182,750)
Purchases of property and equipment	听听听听听听听听听听听 (960,969)	听	听听听听听听听听 (1,147,429)
Net cash used in investing activities	听听听听听听听听 (1,018,179)	听	听听听听听听听听 (1,330,179)
听	听	听	听
Cash flows from financing activities:	听	听	听
Repayment of portion of 15% Senior Secured Debentures	听听听听听听听听 (1,721,066)	听	听听听听听听听听 (3,328,973)
Payments of debt issuance costs	听听听听听听听听听听听 (155,377)	听	听听听听听听听听听听听 (233,161)
Proceeds from 15% Senior Secured Debentures, net of original issuance discount and fees	听听听听听听听听听听听听听听听听听听听听听听鈥�	听	听听听听听听听听 10,451,080
Repayment of 2018 Credit Facility	听听听听听听听听听听听听听听听听听听听听听听鈥�	听	听听听听听听听听 (5,000,000)
Advance from related party	听听听听听听听听听听听听听听听听听听听听听听鈥�	听	听听听听听听听听听听听听听 200,000
Repayment of advance from related party	听听听听听听听听听听听听听听听听听听听听听听鈥�	听	听听听听听听听听听听听 (200,000)
Net cash (used in) provided by financing activities	听听听听听听听听 (1,876,443)	听	听听听听听听听听听听 1,888,946
Net decrease in cash and cash equivalents	听听听听听听听听 (1,544,554)	听	听听听听听听听听 (3,105,040)
Cash, cash equivalents and restricted cash at beginning of year	听听听听听听听听听听 2,619,427	听	听听听听听听听听听听 5,724,467
Cash, cash equivalents and restricted cash at end of year	$听听听听听听听听 1,074,873	听	$听听听听听听听听 2,619,427

听(Continued)

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(Unaudited)听

听	Years Ended April 30,
听	2025	听	2024
听	听	听	听
Supplemental disclosure cash flow information:	听	听	听
Cash paid for interest	$听听 1,315,733	听	$听听 3,289,824
Cash paid for income taxes	$听听听听听听 56,149	听	$听听听听听听 98,343
听	听	听	听
Supplemental disclosure of non-cash investing and financing activities:	听	听	听
Accrued dividends	$听听听听 102,412	听	$听听听听听听 59,836
Relative fair value of warrants issued as part of the 15% Senior Secured Debentures	$听听听听听听 12,965	听	$听听听听 154,000
Common stock issued for accrued dividends	$听听听听 328,025	听	$听听听听听听听听听听听听鈥�
Reclassification of put warrants issued as part of the 15% Senior Secured Debentures from equity to liabilities	$听听听听听听听听听听听听鈥�	听	$听听听听 500,825
Issuance of put warrants as part of the 15% Senior Secured Debentures	$听听听听听听听听听听听听鈥�	听	$听听 1,964,593
Exchange of $10 million Convertible Notes from debt to equity	$听听听听听听听听听听听听鈥�	听	$ 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:

听	April 30,
听	2025	听	2024
Cash and cash equivalents	$听听听听 736,871	听	$听听 1,531,425
Restricted cash	听听听听听听 338,002	听	听听听 1,088,002
Total cash and cash equivalents and restricted cash	$听听 1,074,873	听	$听听 2,619,427

听

Released September 17, 2025

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