• 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 - 好色TV. (OTCQB: ASPU) (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

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

² See reconciliations of Net income (loss) to EBITDA and Adjusted EBITDA under 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 in Net income (loss). 听

³ 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 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:

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.

__________________

NM 鈥� Not meaningful

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Nursing Students

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

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

_____________________

NM 鈥� Not meaningful

听

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 好色TV.听

好色TV. 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

(Continued)

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (CONTINUED)听

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS听

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS鈥� EQUITY

YEARS ENDED APRIL听30, 2025 AND 2024听

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)听

听(Continued)

ASPEN GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(Unaudited)听

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

This merger is a strategic move to enhance the company鈥檚 long-term sustainability by uniting the unique strengths and rich legacies of both institutions. By merging the two school鈥檚 resources, faculty, and academic programs, the company will be able to offer students a wider array of courses, new research opportunities, and expanded career pathways.

The Board of Trustees of both AU and USU have approved the merger. The institutions are required to obtain regulatory confirmation and/or approval for this merger, including from their accrediting bodies and the U.S. Department of Education. During the regulatory approval process over the following months, AU students will continue their programs without disruption. However, once regulatory approvals for the merger are obtained, AU will become part of USU, and students will be transferred accordingly to USU.

About 好色TV.

好色TV. 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

• Gross margin increased by 400 basis points to 68%
• Lowered operating expense by $3.3 million to deliver operating income of $0.4 million
• Net loss of $(0.9) million reflects a $(0.9) million non-cash fair value adjustment of put warrants
• Delivers positive Adjusted EBITDA of $1.7 million as compared to $0.2 million

PHOENIX, March 13, 2025 (GLOBE NEWSWIRE) -- 好色TV. (OTCQB: ASPU) (鈥淎GI鈥� or the "Company"), an education technology holding company, today announced financial results for its third quarter fiscal year 2025 ended January 31, 2025.

Third Quarter Fiscal Year 2025 Summary Results

_______________________
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 $1.4 million and $1.5 million for the three and nine months ended January 31, 2025 and 2024, respectively.
2 Net income (loss) in Fiscal Q3 2025 and Fiscal year 2025 includes a non-cash (loss) gain of $(935,363) and $970,769, respectively, related to the change in the fair value of put warrant liability.
3 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 4.

Michael Mathews, Chairman and CEO of AGI, stated: 鈥淭he third quarter showcased strong internal performance. First, we have experienced stabilization in sequential revenue levels at both Aspen University and United States University over the past four quarters with only a maintenance marketing spend rate. Second, management鈥檚 commitment to effective cost management and operational efficiency resulted in the year-over-year improvement in gross margin and the reduction in operating expenses. These factors worked together to yield positive operating income and operating cash flow of $0.7 million. The third quarter net loss was entirely attributed to a non-cash expense of $935,000 due to the fair value adjustment of put warrants, attributed to gains in AGI鈥檚 share price during the quarter. Moreover, we are pleased to report Adjusted EBITDA of $1.7 million.鈥�

Mr. Mathews added, 鈥淲e are particularly encouraged by the recent renewal of Aspen University鈥檚 accreditation by the Distance Education Accrediting Commission through January 2029. The demand for Aspen University鈥檚 online post-licensure nursing degree programs and the United States University鈥檚 family nurse practitioner program remains steady, despite our limited marketing spend rate.鈥�

Fiscal Q3 2025 Financial and Operational Results (compared to Fiscal Q3 2024)

Revenue decreased by 9% to $10.9 million compared to $12.1 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 $1.7 million, or 28%, 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 10% compared to the prior year period. MSN-FNP program enrollments decreased in the quarter due to regular seasonal fluctuations and lower marketing spend initiated in late Fiscal Q1 2023. Lower new enrollments were offset 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 decreased $0.2 million to $7.5 million primarily due to the overall student body decrease of 21%.听听 Gross margin was 68% compared to 64%. AU's gross margin was 67% versus 61%, and USU's gross margin was 70% versus 68%. The increase in gross margin is the result of 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 25% of AU revenue, and USU instructional costs and services represented 27% of USU revenue. AU marketing and promotional costs represented 2% of AU revenue, and USU marketing and promotional costs represented 1% of USU revenue.

In Fiscal Q3 2025, net income and EBITDA were impacted by a $0.9 million non-cash expense related to the fair value adjustment of the put warrants, attributed to gains in Aspen Group鈥檚 share price in the quarter. At the end of each quarter if our stock price has increased, we will incur a charge; contrarily, if our stock price has decreased, we will incur a gain from the put warrants.

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 4.

Adjusted EBITDA improved by $1.5 million due to the reduction in instructional costs and services related to the teach-out of the pre-licensure program, increased instructional efficiencies at AU and USU and a decrease in general and administrative costs attributed to our restructurings.

Operating Metrics

New Student Enrollments

Total enrollments for AGI decreased 30% from Fiscal Q3 2024. The year-over-year company-wide decrease of new student enrollments is primarily the result of the on-going maintenance level of marketing spend. As a result of the restructurings and increased instructional efficiencies, we anticipate we will increase marketing spend in Fiscal 2026 to a level necessary to provide enrollments needed to grow the student body and increase positive operating cash flow.

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

Total Active Student Body

AGI鈥檚 active degree-seeking student body, including AU and USU, declined 21% year-over-year to 6,039 at January听31, 2025 from 7,649 at January听31, 2024. AU's total active student body decreased by 31% year-over-year to 3,564 at January听31, 2025 from 5,146 at January听31, 2024. On a year-over-year basis, USU's total active student body decreased by 1% to 2,475 at January听31, 2025 from 2,503 at January听31, 2024.

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

Nursing Students

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

Liquidity

The Fiscal Q3 2025 ending unrestricted cash balance was $0.8 million. We implemented the following during Fiscal Q3 2025 to help us further stabilize on-going cash flow. First, we renegotiated the 15% Senior Secured Debentures in October 2024, reducing ongoing principal payments and changing the timing of principal payments from monthly to quarterly. Second, the Company initiated a fourth restructuring late in the fourth quarter of calendar 2024, which is projected to reduce annual operating expenses by over $1.5 million.

Cost reductions associated with the four restructuring plans and other corporate cost reductions were implemented to 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.

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

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

AGI defines Adjusted EBITDA as EBITDA excluding: (1) bad debt expense; (2) stock-based compensation; (3) severance; (4) impairments of right-of-use assets and tenant leasehold improvements and (5) non-recurring 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:

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}

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including the increase in marketing spend and the impact on our future cash flows, the impact of our operating and debt restructurings, and our 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. 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 impact from our fourth restructuring plan, the effectiveness of our future 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听for our new programs and in general, student attrition, national and local economic factors including the labor market shortages, competition from other online universities including the competitive impact from the trend of major non-profit universities using online education and state regulation if the U.S. Department of Education is eliminated or implements an enhanced deregulatory effort toward for-profit universities. 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 好色TV.

好色TV. 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

(Continued)

(Continued)

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:

Accreditation by DEAC is a reliable indicator of the value and quality of the distance education that an institution offers. In receiving this renewal of accreditation, AU has demonstrated its commitment to educational standards and ethical business practices that assure quality, accountability, and improvement in higher education.

About DEAC

DEAC is a private, non-profit organization founded in 1926 that operates as an institutional accreditor of distance education institutions. Accreditation by DEAC covers all distance education activities within an institution, and it provides accreditation from the secondary school level through professional doctoral degree-granting institutions. DEAC鈥檚 geographic area of accreditation activities includes all states within the United States and international locations.

About 好色TV.

好色TV. 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
Kim@HaydenIR.com

The transition from Expert Market to the OTCQB was due to the filing of its fourth quarter fiscal year 2024, first quarter fiscal year 2025 and second quarter fiscal year 2025 financial results and meeting other OTC Markets QB listing qualifications. Aspen Group鈥檚 financial results and other filings are available under the disclosure tab on the Company鈥檚 OTC Market quote page.

The OTCQB is operated by the OTC Markets Group and recognized by the Securities and Exchange Commission (SEC) as an established public market that provides investors with the data they need to analyze, value, and trade securities. Aspen Group's membership in the OTC Markets Group will assist in diversifying its shareholder base worldwide.

About 好色TV.

好色TV. 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

• Reports revenue of $11.5 Million
• Gross margin increased to 71% from 63%
• Net loss of $(4.2) million reflects $(4.9) million one-time non-cash lease related impairment charges for right-of-use assets and tenant leasehold improvements
• Adjusted EBITDA improved by 42% year-over-year due to continued cost controls

PHOENIX, Dec. 16, 2024 (GLOBE NEWSWIRE) -- 好色TV. (OTC Markets: ASPU) (鈥淎GI鈥� or the "Company"), an education technology holding company, today announced financial results for its second quarter fiscal year 2025 ended October 31, 2024.

Second Quarter Fiscal Year 2025 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 $0.9 million and $1.0 million for the three and six months ended October 31, 2024 and 2023, respectively.

² Net income (loss) in fiscal Q2 2025 and year-to-date fiscal 2025 includes a noncash impairment charge of $(4.9) million. Additionally, fiscal Q2 2025 and year-to-date fiscal 2025 contain a non-cash gain of $1.1 million and $1.9 million, respectively, related to the change in the fair value of put warrant liability. See further explanation on page 2.

³ 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.

鈥淲e made significant strides toward stabilizing our revenue in the second quarter of fiscal 2025 while achieving positive cash flow through disciplined cost management,鈥� said Michael Mathews, Chairman and CEO of AGI. 鈥淒espite maintaining a disciplined marketing spend, we achieved notable improvements in our financial performance, particularly gross margin. Our gross margin expanded primarily due to the lower instructional costs from completing the AU Pre-licensure BSN program teach-out and increased efficiencies in USU鈥檚 instructional operations. Additionally, restructuring efforts reduced general and administrative expenses by 14% year-over-year. While our net loss was impacted by a one-time, noncash leasehold impairment charge, the lower instructional costs and expense reduction initiatives in the second quarter collectively drove a 42% year-over-year improvement in Adjusted EBITDA for the quarter and delivered modest year-to-date positive cash from operations.鈥�

Mr. Mathews concluded, 鈥淎s of the filing of our quarterly report for the first quarter fiscal year 2025 with OTC Market, AGI is now fully compliant with the QB listing requirements. We have recently begun the process to resume trading on the OTCQB.鈥�

Fiscal Q2 2025 Financial and Operational Results (compared to Fiscal Q2 2024)

Revenue decreased by 17% to $11.5 million compared to $13.8 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 $2.5 million, or 35%, reflects the completion of the teach-out of the pre-licensure program and lower post-licensure enrollments in prior quarters as a result of the decrease in marketing spend initiated in late Fiscal Q1 2023. The active student body at AU decreased by 33% year-over-year to 3,827 at October 31, 2024 from 5,679 at October 31, 2023.

United States University (鈥淯SU鈥�) revenue was up 2% compared to the prior period. MSN-FNP program enrollments decreased in the quarter due to lower marketing spend initiated in late Fiscal Q1 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 6% to 2,560 at October 31, 2024 from 2,733 at October 31, 2023.

GAAP gross profit decreased 7% to $8.1 million compared to $8.7 million primarily due to the overall student body decrease of 24%.听听 Gross margin was 71% compared to 63%. AU's gross margin was 67% versus 61%, and USU's gross margin was 74% versus 67%. The increase in gross margin is the result of lower instructional costs from completing the AU Pre-licensure BSN program teach-out, increased efficiencies in USU鈥檚 instructional operations and lower marketing spend.

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.

In Fiscal Q2 2025 and year-to-date Fiscal 2025, our bottom line was materially impacted by a $4.9 million non-cash right-of-use assets and tenant leasehold improvements impairment charge. The charge is the result of the fact that AU is no longer able to utilize space for BSN Pre-licensure operations due to the completion of the teach-out. The charge represents the entirety of the remaining impairment exposure due to the teach-out. The impact of the charge to our operating expenses, net loss and EBITDA is presented in the following table:

_____________________
NM 鈥� Not meaningful

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.

Adjusted EBITDA improved by $0.5 million due to the reduction in instructional costs and services related to the teach-out of the pre-licensure program, increased instructional efficiencies at USU and a decrease in general and administrative costs attributed to our restructurings.

Operating Metrics

New Student Enrollments

Total enrollments for AGI decreased 30% from Fiscal Q2 2024 but increased 15% sequentially, despite the reduction in internet advertising spend across all programs to maintenance levels. The sequential increase in enrollments reflected an unusually strong month of August as prospective students enrolled prior to an annual tuition increase which took effect in September 2024.

New student enrollments at AU decreased 37% year-over-year and at USU decreased 19% year-over-year. The new student enrollment decrease year-over-year was primarily impacted by our reduction in marketing spend. We anticipate the resumption of marketing spend in late Fiscal 2025 at a level necessary to provide enrollments needed to grow the student body and allow for the generation of positive operating cash flow.

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

Total Active Student Body

AGI鈥檚 active degree-seeking student body, including AU and USU, declined 24% year-over-year to 6,387 at October听31, 2024 from 8,412 at October听31, 2023. AU's total active student body decreased by 33% year-over-year to 3,827 at October听31, 2024 from 5,679 at October听31, 2023. On a year-over-year basis, USU's total active student body decreased by 6% to 2,560 at October听31, 2024 from 2,733 at October听31, 2023.

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

Nursing Students

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

Liquidity

The Fiscal Q2 2025 ending unrestricted cash balance was $0.8 million. The following three factors will help us continue to stabilize operating cash flow in the second half of Fiscal 2025. First, effective August 16, 2024, AU transitioned from the Heightened Cash Monitoring 2 (HCM2) to the Heightened Cash Monitoring 1 (HCM1) method of receiving student financial aid payments from the U.S Department of Education. This transition allows AU to disburse student financial aid using institutional funds and immediately draw down reimbursement by submitting disbursement records, eliminating payment delays and resulting in more consistent unrestricted cash balances. Second, we renegotiated the 15% Senior Secured Debentures in November 2024, reducing ongoing principal payments and changing the timing of principal payments from monthly to quarterly. Finally, the Company initiated a fourth restructuring late in the fourth quarter of calendar 2024, projected to reduce annual operating expenses by over $1.5 million.

Cost reductions associated with the four restructuring plans and other corporate cost reductions were implemented to 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.

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

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

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

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: