Aspen Group Inc

Greetings, and welcome to the Aspen Group, Inc. second quarter fiscal year 2024 earnings call. At this time, all participants are in a listen-only mode. The question-and-answer session will follow the formal presentation. If anyone should require operator assistance during a conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Rosanna Shulman, Corporate Controller. Thank you. You may begin.

Please note that the company's remarks made during this call, including answers to questions, include forward-looking statements which are subject to various risks and uncertainties. These statements include anticipated future enrollment and revenue trends, revenue growth, our proposed marketing and other spending trends, our future growth and growth strategy, the timing concerning completion of the pre-licensure teach-out, the timing of receipt of funding from the DOE, and generation of positive operating cash flow. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. A discussion of risks and uncertainties related to Aspen Group's business is contained in its filings with over-the-counter markets, including the quarterly report for the six months ended October 31, 2023, and in the press release issued this afternoon. Other risks include our reliance on third parties who may have different priorities, government spending on health care, which partially creates the demand for nurses, and our ability to sublist real estate we leased. Asking Group disclaims any obligation to update any forward-looking statement as a result of future development. Also, I'd like to remind you that during this conference call, the company will discuss EBITDA and adjusted EBITDA, which are non-GAAP financial measures, in talking about the company's performance. Reconciliation to the most directly comparable GAAP financial measures are provided in the tables in the press release issued by the company today. Please note that the press release is available on Aspen Group's website, aspu.com, on the IR calendar page under News Events. It also will be available at otcmarkets.com forward slash OTCQB. A transcript of this conference call will be available for one year on the company's website. Now I will turn the call over to Mr. Matthews.

Good afternoon, and thank you for joining our earnings conference call for the second quarter of fiscal year 2024. I'm looking forward to sharing some exciting updates and achievements from Aspen Group in terms of our income statement performance, balance sheet improvements, and operating results. Let's start with our financial performance. In Q2 fiscal year 24, we made significant progress in several key areas. We narrowed our net loss year over year by an impressive 30%, helped by our financial discipline amid the wind down of the Aspen University pre-licensure program. I'm delighted to announce that we achieved our fourth consecutive quarter of positive EBITDA. Additionally, we generated cash from operations during the second fiscal quarter. Enrollments at Aspen University and United States University have been on the rise over the past two quarters, even given our minimal internet advertising spend. We attribute this to the robust demand we continue to see in the healthcare industry, especially for postgraduate nursing degrees for registered nurses. Our online postgraduate degrees at Aspen and the highly coveted MSN FNP program at United States University provides students with flexible program and payment options, especially for working RNs, to attain advanced degrees and improve their career options. The enrollment growth not only reflects the value of our programs and our attractive monthly payment plans, but it also reflects the strength of our university brands. We instituted tuition increases effective September 1, 2023, And the sequential bump in Q2 enrollment certainly reflects a pull forward in advance of that increase. I'd like to switch now to our academic program achievements. We are proud to report that we are currently graduating our largest cohorts from the Aspen University BSN Prelicensure Program in Arizona. Notably, The NCLEX first-time pass rate in Arizona in the fourth calendar quarter ending December 31, 2023, has increased to an impressive 89%. To be specific, in the fourth calendar quarter, 93 of 105 first-time NCLEX takers in Arizona passed the exam. Additionally, in Texas, eight of nine first-time NCLEX takers passed in the fourth calendar quarter, reflecting an 89% first-time pass rate. Finally, in Tennessee, we had our first graduate take the NCLEX exam in the final week of the fourth quarter and passed on the first time. Our success in elevating the first-time pass rates for NCLEX scores in Arizona and other states underscores our steadfast dedication to enhancing program rigor and refining student test preparation alongside various other enhancements that positively impact the outcomes of all pre-licensure students at Aspen University. Finally, we expect the teach-out of our pre-licensure program to be completed in Arizona this month and in all remaining states by mid-2024. Turning to our financial transparency, we want to assure you that the parent company, AGI, has remained current with the required OTC Markets quarterly financial filings. You can find these filings on our quote page on the OTC Markets website under the Disclosures tab. We have fulfilled our stated commitment to deliver positive EBITDA and have achieved this goal for the fourth consecutive quarter. From a liquidity perspective, we have positive news as well. We generated over $400,000 of cash from operations in the quarter, which is attributed to our reduction of G&A spend and the receipt of two financial aid payments from the Department of Education at Aspen University. Prior to the end of January 2024, we are projecting an unrestricted cash balance exceeding $2 million. There are two factors contributing to the increase in projected unrestricted cash balance. First, The reduction of our surety bond in Arizona from $5.5 million to $2.5 million reduced our restricted cash balance by a million dollars. We are currently seeking an alternative bond provider to further reduce the amount of cash that is restricted with a $2.5 million bond, which could add an additional million dollars to our unrestricted cash balance. Second, we anticipate we will receive a substantial financial aid payment with the Department of Education of approximately $3.9 million prior to the end of January 2024. Lastly, I want to address two closely related subjects. First, the Distance Education Accrediting Commission, or D-ACT, show cause directive that was issued to Aspen University this past February. We underwent a special visit by a team of DEAC evaluators in October, which was implemented as part of the Show Cause Directive, as well as our 2023 reaccreditation requirement. We anticipate receiving the Commission's Show Cause and reaccreditation decision in approximately the next 60 days. Regarding Aspen University's Heightened Cash Management II, or HCM2, status, Recall that the U.S. Department of Education placed the university on this federal financial aid status in February, immediately following the D-Act show cause directive. Under HCM2, we successfully received four reimbursements thus far. And as previously noted, we anticipate receiving the fifth HCM2 reimbursement of 3.9 million by the end of January, 2024. In conclusion, The second quarter of fiscal year 2024 has been marked by financial stability, improved academic performance with regards to our Aspen University NCLEX first-time pass rates, and progress with our DX show cause and reaccreditation process and the Department of Education ACM2 reimbursements. There is one final legal item to note regarding the class action complaint in Arizona regarding the pre-licensure program. On January 9, 2024, a final settlement was approved by the Superior Court Judge in Arizona, whereby Aspen University agreed to pay $550,000 in exchange for release of all claims of the settlement class, inclusive of attorneys' fees and costs. $500,000 of the payment is covered by Aspen's E&O insurance policy, and the remaining $50,000 will be paid by Aspen University. Thank you for your continued support and confidence in Aspen Group. I will now hand the call over to Matt to cover the details of our second quarter financial results. Please go ahead, Matt.