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Quarterly report pursuant to Section 13 or 15(d)

Revenues

v3.20.4
Revenues
 9 Months Ended
Jan. 31, 2021
Revenue from Contract with Customer [Abstract] Ìý
Revenues Revenues
Revenues consist primarily of tuition and fees derived from courses taught by the Company online as well as from related educational resources that the Company provides to its students, such as access to our online materials and learning management system. The Company’s educational programs have starting and ending dates that differ from its fiscal quarters. Therefore, at the end of each fiscal quarter, a portion of revenue from these programs is not yet earned and is therefore deferred. The Company also charges students fees for library and technology costs, which are recognized over the related service period and are not considered separate performance obligations. Other services, books, and exam fees are recognized as services are provided or when goods are received by the student. The Company’s contract liabilities are reported as deferred revenue and due to students. Deferred revenue represents the amount of tuition, fees, and other student invoices in excess of the portion recognized as revenue and it is included in current liabilities in the accompanying unaudited consolidated balance sheets.
The following table represents our revenues disaggregated by the nature and timing of services:
Three Months Ended
January 31,		 Nine Months Ended
January 31,
Ìý 2021 2020 2021 2020
Tuition - recognized over period of instruction
$ 14,580,439Ìý $ 11,177,421Ìý $ 42,922,429Ìý $ 31,275,504Ìý
Course fees - recognized over period of instruction
1,834,251Ìý 1,194,947Ìý 5,220,308Ìý 3,240,160Ìý
Book fees - recognized at a point in time
44,468Ìý 23,195Ìý 129,643Ìý 64,611Ìý
Exam fees - recognized at a point in time
69,500Ìý 61,500Ìý 219,055Ìý 177,015Ìý
Service fees - recognized at a point in time
96,179Ìý 80,877Ìý 270,009Ìý 224,597Ìý
Ìý $ 16,624,837Ìý $ 12,537,940Ìý $ 48,761,444Ìý $ 34,981,887Ìý
Contract Balances and Performance Obligations
The Company recognizes deferred revenue as a student participates in a course which continues past the consolidated balance sheet date. At JanuaryÌý31, 2021, deferred revenue was $5,600,371 which is future revenue that has not yet been earned for courses in progress. Funds due to students was $2,243,690 at JanuaryÌý31, 2021, which mainly represents Title IV funds due to students after deducting their tuition payments.
Of the total revenue earned during the three and nine months ended JanuaryÌý31, 2021, approximately $8.6 million and $3.7Ìýmillion came from revenues which were deferred at October 31, 2020 and AprilÌý30, 2020, respectively.
When the Company begins providing the performance obligation by beginning instruction in a course, a contract receivable is created, resulting in accounts receivable. The Company accounts for receivables in accordance with ASC 310, Receivables. The Company uses the portfolio approach, as discussed below.
AGI records an allowance for doubtful accounts for estimated losses resulting from the inability, failure or refusal of its students to make required payments, which includes financial aid funds advanced to a student for amounts in excess of the student’s cost of tuition and related fees, which are due back from the students. AGI determines the adequacy of its allowance for doubtful accounts using an allowance method based on an analysis of its historical bad debt experience, current economic trends, and the aging of the accounts receivable and student status. AGI applies reserves to its receivables based upon an estimate of the risk presented by the age of the receivables and student status. AGI writes off accounts receivable balances at the time the balances are deemed uncollectible. AGI continues to reflect accounts receivable with an offsetting allowance as long as management believes there is a reasonable possibility of collection.
Cash Receipts
Our students finance costs through a variety of funding sources, including, among others, monthly payment plans, installment plans, federal loan and grant programs (Title IV), employer reimbursement, and various veterans and military funding and grants, and cash payments. Most students elect to use our monthly payment plan. This plan allows them to make continuous monthly payments during the length of their program and through the length of their payment plan. Title IV and military funding typically arrives during the period of instruction. Students who receive reimbursement from employers typically do so after completion of a course. Students who choose to pay cash for a class typically do so before beginning the class.
Significant Judgments
We analyze revenue recognition on a portfolio approach under ASC 606-10-10-4. Significant judgment is utilized in determining the appropriate portfolios to assess for meeting the criteria to recognize revenue under ASC Topic 606. We have determined that all of our students can be grouped into one portfolio. Students behave similarly, regardless of their payment method. Enrollment agreements and refund policies are similar for all of our students. We do not expect that revenue earned for the portfolio is significantly different as compared to revenue that would be earned if we were to assess each student contract separately.
The Company maintains institutional tuition refund policies, which provides for all or a portion of tuition to be refunded if a student withdraws during stated refund periods. Certain states in which students reside impose separate, mandatory refund policies, which override the Company’s policy to the extent in conflict. If a student withdraws at a time when a portion or none of the tuition is refundable, then in accordance with its revenue recognition policy, the Company recognizes as revenue the tuition that was not refunded. Since the Company recognizes revenue pro-rata over the term of the course and because, under its institutional refund policy, the amount subject to refund is never greater than the amount of the revenue that has been deferred, under the Company’s accounting policies revenue is not recognized with respect to amounts that could potentially be refunded.
The Company had revenues from students outside the United States representing 1.48% and 1.32% of consolidated revenues for the three and nine months ended JanuaryÌý31, 2021, respectively. The Company had revenues from students outside the United States representing 1.90% of consolidated revenues for both the three and nine months ended JanuaryÌý31, 2020.