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<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b>Note 1.</b> <b>Nature of Operations and Going Concern</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b>Overview</b> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in; text-align: justify"><font style="background-color: white">Aspen
Group, Inc. (the “Company”, or “Aspen”) is a development stage company, founded in Florida on February
23, 2010, under the name Hidden Ladder, Inc. On June 21, 2011, the Company changed its name to Elite Nutritional Brands, Inc. On
July 27, 2011, David Johnson sold 41,200,000 shares of the Company’s common stock to Don Ptalis, the Company’s new
CEO and Director for a purchase price of $5,000, which source was his own funds. As a result, the percentage of voting securities
of the Company beneficially owned directly or indirectly by Mr. Ptalis was 84.12%. On July 29, 2011, David Johnson resigned as
the President, CEO and Sole Director of the Company, and Daniel McKelvy resigned as the Assistant Secretary of the Company in order
to pursue other business interests. Effective July 29, 2011, Don Ptalis was appointed as the Company’s new CEO and Director.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in; text-align: justify"><font style="background-color: white"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in; text-align: justify"><font style="background-color: white">On
February 15, 2012, Elite Nutritional Brands, Inc. redomesticated by merging into Aspen Group, Inc., a newly formed Delaware corporation
with no assets or liabilities, with Aspen being the surviving corporation. </font>On March 13, 2012 (the “recapitalization
date”), Aspen Group, Inc. acquired Aspen University Inc., an operating company, in a reverse merger transaction accounted
for as a recapitalization of Aspen University Inc. (the “Recapitalization” or the “Reverse Merger”) (See
Note 7).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in; text-align: justify"><font style="background-color: white"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b>Going Concern</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in; text-align: justify"><font style="background-color: white">Th</font>e
accompanying financial statements have been prepared assuming that the Company will continue as a going
concern. Through February 29, 2012, the Company was in the development stage and has not carried on any significant
operations and has generated no revenues.  The Company had a net loss of $28,078 and negative cash flows from
operations of $31,584 for the year ended February 29, 2012 and has incurred losses since inception aggregating
$41,624.   Although subsequent to year-end,  the Company consummated a reverse merger transaction with a
private entity, Aspen University Inc., that private entity also has had historical net losses and net cash used in operating
activities. (see Note 7).  Management's plan includes a current capital raise and actions to increase profitability of
current operations. These matters, among others, raise substantial doubt about the ability of the Company to continue as a
going concern.   The financial statements do not include any adjustments relating to the recovery of the recorded
assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going
concern. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in; text-align: justify"><font style="background-color: white"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in; text-align: justify"><font style="background-color: white"> </font></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in; text-align: justify"><b>Note 2. Significant Accounting Policies</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b>Use of Estimates</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">The preparation of the financial statements in conformity
with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make
estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ from those
estimates. Significant estimates in the accompanying financial statements include the valuation allowance on deferred tax assets.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b>Cash and Cash Equivalents</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">The Company considers all highly liquid investments with maturities
of three months or less at the time of purchase to be cash equivalents.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">On November 9, 2010, the FDIC issued a Final Rule implementing
section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act that provides for unlimited insurance coverage of
noninterest-bearing transaction accounts. Beginning December 31, 2010, through December 31, 2012, all noninterest-bearing transaction
accounts are fully insured, regardless of the balance of the account, at all FDIC-insured institutions. The unlimited insurance
coverage is available to all depositors, including consumers, businesses, and governmental entities. This unlimited insurance
coverage is separate from, and in addition to, the insurance coverage provided to a depositor’s other deposit accounts held
at an FDIC-insured institution. A noninterest-bearing transaction account is a deposit account where interest is neither accrued
nor paid; depositors are permitted to make an unlimited number of transfers and withdrawals; and the bank does not reserve the
right to require advance notice of an intended withdrawal.<b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">The Company maintains its cash in bank and financial institution
deposits that at times may exceed federally insured limits. The Company has not experienced any losses in such accounts through
February 29, 2012. There were no balances in excess of FDIC insured levels as of February 29, 2012 and February 28, 2011.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b>Fair Value Measurements</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">Fair value is the exchange price that would be received for
an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability
in an orderly transaction between market participants. The Company classifies assets and liabilities recorded at fair value
under the fair value hierarchy based upon the observability of inputs used in valuation techniques.  Observable inputs
(highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally
developed market assumptions. The fair value measurements are classified under the following hierarchy:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets and liabilities in active markets;</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">Level 2—Observable inputs, other than quoted market prices, that are either directly or indirectly observable in the marketplace for identical or similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities; and </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">Level 3—Unobservable inputs that are supported by little or no market activity that are significant to the fair value of assets or liabilities.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">The estimated fair value of certain financial instruments,
including cash and cash equivalents and accounts payable and accrued expenses are carried at historical cost basis, which approximates
their fair values because of the short-term nature of these instruments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b>Income Taxes</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">The Company uses the asset and liability method to compute
the differences between the tax basis of assets and liabilities and the related financial amounts. Valuation allowances are established,
when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. The Company has deferred
tax assets and liabilities that reflect the net tax effects of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets are subject to periodic
recoverability assessments. Realization of the deferred tax assets, net of deferred tax liabilities, is principally dependent upon
achievement of projected future taxable income.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">The Company records a liability for unrecognized tax benefits
resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company accounts for uncertainty in income
taxes using a two-step approach for evaluating tax positions. Step one, recognition, occurs when the Company concludes that a tax
position, based solely on its technical merits, is more likely than not to be sustained upon examination. Step two, measurement,
is only addressed if the position is more likely than not to be sustained. Under step two, the tax benefit is measured as the largest
amount of benefit, determined on a cumulative probability basis, which is more likely than not to be realized upon ultimate settlement.
The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b>Net Loss Per Share </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">Net loss per common share is based on the weighted average
number of shares of common stock outstanding during each year.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">Common stock equivalents, including a variable amount of shares
underlying $20,000 (a minimum of 20,000 common shares as of February 29, 2012) and $0 of convertible notes payable for the years
ended February 29, 2012 and February 28, 2011, respectively, are not considered in diluted loss per share because the effect would
be anti-dilutive. These common stock equivalents may dilute future earnings per share (See Note 7).</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b>Recent Accounting Pronouncements</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">In October 2009, the Financial Accounting Standards Board
("FASB") issued Accounting Standards Update (“ASU”) 2009-13, which amends Accounting Standards Codification
("ASC") Topic 605, Revenue Recognition.  This update changes the requirements for establishing separate units of
accounting in a multiple element arrangement and requires the allocation of arrangement consideration to each deliverable based
on the relative selling price. ASU 2009-13 is effective for revenue arrangements entered into in fiscal years beginning on or after
June 15, 2010. The Company adopted ASU 2009-13 effective March 1, 2011, and such adoption did not have a material effect on
the Company's financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">In December 2010, the FASB issued ASU 2010-28, which amends
ASC Topic 350, Intangibles-Goodwill and Other. This update amends the criteria for performing Step 2 of the goodwill impairment
test for reporting units with zero or negative carrying amounts and requires performing Step 2 if qualitative factors indicate
that it is more likely than not that a goodwill impairment exists. The amendments in the update are effective for fiscal years
beginning on or after December 15, 2010. The Company adopted ASU 2010-28 effective March 1, 2011, and such adoption did not
have a material effect on the Company's financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">In December 2010, the FASB issued ASU 2010-29, which amends
ASC Topic 805, Business Combinations, which clarifies that, when presenting comparative financial statements, SEC registrants should
disclose revenue and earnings of the combined entity as though any current period business combinations had occurred as of the
beginning of the comparable prior annual reporting period only. The update also expands the supplemental pro forma disclosures
to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the
business combination included in the reported pro forma revenue and earnings. ASU 2010-29 is effective prospectively for material
(either on an individual or aggregate basis) business combinations entered into in fiscal years beginning on or after December 15, 2010,
with early adoption permitted. The Company adopted ASU 2010-29 effective March 1, 2011, and such adoption did not have a material
effect on the Company's financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">In June 2011, the FASB, issued ASU 2011-05, which amends ASC
Topic 220, Comprehensive Income, which requires an entity to present the total of comprehensive income, the components of net income,
and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate
but consecutive statements. It eliminates the option to present components of other comprehensive income as part of the statement
of changes in stockholders' equity. The ASU does not change the items which must be reported in other comprehensive income, how
such items are measured or when they must be reclassified to net income. This ASU is effective for interim and annual periods beginning
after December 15, 2011. The Company will adopt ASU 2011-05 effective March 1, 2012, and such adoption is not expected to have
a material effect on the Company's financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">In September 2011, the FASB issued ASU 2011-08, which amends
ASC Topic 350, Intangibles-Goodwill and Other, to allow entities to use a qualitative approach to determine whether it is more
likely than not that the fair value of a reporting unit is less than its carrying value. If after performing the qualitative assessment
an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then
performing the two-step impairment test is unnecessary. However, if an entity concludes otherwise, then it is required to perform
the first step of the two-step goodwill impairment test. The amendments are effective for annual and interim goodwill impairment
tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted, including for annual and interim
goodwill impairment tests performed as of a date before September 15, 2011, if an entity’s financial statements for the most
recent annual or interim period have not yet been issued or, for nonpublic entities, have not yet been made available for issuance.
The Company will adopt ASU 2011-08 effective March 1, 2012, and such adoption is not expected to have a material effect on the
Company’s financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">In December 2011, the FASB issued ASU 2011-12, which amends
ASC Topic 220, Comprehensive Income, to defer certain aspects of ASU 2011-05. The new guidance is effective for fiscal years, and
interim periods within those years, beginning after December 15, 2011. The Company will adopt this guidance, along with ASU 2011-05,
on March 1, 2012, and such adoption is not expected to have a material impact on the Company’s financial statements.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b>Note 3. Convertible Notes Payable</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><font style="background-color: white">On September 26, 2011,
the Company issued a convertible note with a face value totaling $10,000, bearing interest of 10% per annum, maturing December
26, 2011. The holder shall have the right, at its option and simultaneously with the first closing thereof, to convert all or a
portion of the principal amount of this note into shares of the Company’s common stock at the conversion price of the next
equity offering of the Company. </font><font style="color: black">The convertible note was past due as of December 26, 2011 and,
accordingly, the Company was in default (See Note 7).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><font style="background-color: white">On December 12, 2011,
the Company issued a convertible note with a face value totaling $10,000, bearing interest of 10% per annum, maturing February
12, 2012. The holder shall have the right, at its option and simultaneously with the first closing thereof, to convert all or a
portion of the principal amount of this note into shares of the Company’s common stock at the conversion price of the next
equity offering of the Company. </font><font style="color: black">The convertible note was past due as of February 12, 2012 and,
accordingly, the Company was in default (See Note 7).</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">Notes payable consisted of the following at February 29, 2012:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td>Notes payable</td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">February 29, 2012</td></tr>
<tr style="vertical-align: bottom">
<td style="width: 70%; text-align: left">Note payable - originating September 26, 2011; no monthly payments required; bearing interest at 10%; in default since maturity at December 26, 2011 [A]</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">10,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">Note payable - originating December 12, 2011; no monthly payments required; bearing interest at 10%; in default since maturity at February 12, 2012 [A]</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">10,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td>Total</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">20,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">Less: Current maturities</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(20,000</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt">Amount due after one year</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td>[A] - in default as of February 29, 2012.</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b>Note 4. Stockholders’ Equity (Deficiency)</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b>Stock Splits</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">On June 21, 2011, the Company effected a 12 for 1 forward
stock split of the Company’s outstanding common shares to all stockholders of record as of the close of business on June
20, 2011. No cash was paid or distributed as a result of the forward stock split and no fractional shares were issued. All fractional
shares which would otherwise be required to be issued as a result of the forward stock split were rounded up to the nearest whole
share. All references to the Company’s outstanding shares and per share information for all periods in the accompanying financial
statements and footnotes have been retroactively adjusted to give effect to the forward stock split.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">On February 15, 2012, as part of the redomestication and merger
of <font style="background-color: white">Elite Nutritional Brands, Inc. into Aspen Group, Inc., </font>the Company effected a 1
for 2.5 reverse stock split of the Company’s outstanding common shares. No cash was paid or distributed as a result of the
reverse stock split and no fractional shares were issued. All fractional shares which would otherwise be required to be issued
as a result of the reverse stock split were rounded up to the nearest whole share. All references to the Company’s outstanding
shares and per share information have been retroactively adjusted to give effect to the reverse stock split.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b>Authorized Shares</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">On February 14, 2012, Aspen Group, Inc., the Delaware corporation,
amended its certificate of incorporation whereby the capital structure was changed to 130,000,000 shares consisting of: (i) 120,000,000
shares of common stock having a par value of $0.001 per share, and (ii) 10,000,000 shares of preferred stock having a par value
of $0.001 per share.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b>Common Shares</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">On February 27, 2010, the Company issued 43,200,000 common
shares to its founders in exchange for cash proceeds of $9,000 to the Company. The issuance of the shares was made to the sole
officer and director of the Company and an individual who is a sophisticated and accredited investor, therefore, the issuance
was exempt from registration of the Securities Act of 1933 by reason of Section 4 (2) of that Act.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">On October 20, 2010, the Company
issued 5,760,000 common shares in exchange for cash proceeds of $12,000.</p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in; text-align: justify"><b>Note 6. Income Taxes</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">The components of income tax expense (benefit) are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center">For the</td>
<td style="text-align: center"> </td>
<td style="text-align: center">For the</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center">Year Ended</td>
<td style="text-align: center"> </td>
<td style="text-align: center">Year Ended</td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle"> </td>
<td style="vertical-align: middle"> </td>
<td style="border-bottom: windowtext 0.5pt solid; vertical-align: bottom; text-align: center">February 29, 2012</td>
<td style="vertical-align: bottom"> </td>
<td style="border-bottom: windowtext 0.5pt solid; vertical-align: bottom; text-align: center">February 28, 2011</td></tr>
<tr>
<td colspan="2" style="vertical-align: middle">Current:</td>
<td style="vertical-align: middle"> </td>
<td style="vertical-align: bottom; text-align: center"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: bottom; text-align: center"> </td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: middle">Federal</td>
<td style="vertical-align: middle"> $                             -</td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle"> $                             -</td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: middle">State</td>
<td style="border-bottom: windowtext 0.5pt solid; vertical-align: middle">                                -</td>
<td style="vertical-align: bottom"> </td>
<td style="border-bottom: windowtext 0.5pt solid; vertical-align: middle">                                -</td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle"> </td>
<td style="vertical-align: middle"> </td>
<td style="border-bottom: windowtext 0.5pt solid; vertical-align: middle; border-top-color: windowtext; border-top-width: 0.5pt">                                -</td>
<td style="vertical-align: bottom"> </td>
<td style="border-bottom: windowtext 0.5pt solid; vertical-align: middle; border-top-color: windowtext; border-top-width: 0.5pt">                                -</td></tr>
<tr>
<td colspan="3" style="vertical-align: middle">Deferred:</td>
<td style="vertical-align: middle"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle"> </td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: middle">Federal</td>
<td style="vertical-align: middle">                                -</td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle">                                -</td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: middle">State</td>
<td style="border-bottom: windowtext 0.5pt solid; vertical-align: middle">                                -</td>
<td style="vertical-align: bottom"> </td>
<td style="border-bottom: windowtext 0.5pt solid; vertical-align: middle">                                -</td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle"> </td>
<td style="vertical-align: middle"> </td>
<td style="border-bottom: windowtext 0.5pt solid; vertical-align: middle; border-top-color: windowtext; border-top-width: 0.5pt">                                -</td>
<td style="vertical-align: bottom"> </td>
<td style="border-bottom: windowtext 0.5pt solid; vertical-align: middle; border-top-color: windowtext; border-top-width: 0.5pt">                                -</td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: middle">Total Income tax expense (benefit)</td>
<td style="border-bottom: windowtext 2pt double; vertical-align: middle"> $                             -</td>
<td style="vertical-align: bottom"> </td>
<td style="border-bottom: windowtext 2pt double; vertical-align: middle"> $                             -</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">Significant components of the Company's deferred income tax
assets and liabilities are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"></p>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr>
<td style="vertical-align: bottom; text-align: center"> </td>
<td style="vertical-align: middle; text-align: center"> </td>
<td style="vertical-align: middle; text-align: center"> </td>
<td style="border-bottom: windowtext 0.5pt solid; vertical-align: bottom; text-align: center">February 29, 2012</td>
<td style="vertical-align: bottom"> </td>
<td style="border-bottom: windowtext 0.5pt solid; vertical-align: bottom; text-align: center">February 28, 2011</td></tr>
<tr>
<td colspan="3" style="vertical-align: bottom">Deferred tax assets:</td>
<td style="vertical-align: middle"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle"> </td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: middle">Net operating loss</td>
<td style="vertical-align: middle"> $                    14,152</td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle"> $                      4,606</td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle"> </td>
<td style="vertical-align: middle">Total deferred tax assets</td>
<td style="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; vertical-align: middle">                       14,152</td>
<td style="vertical-align: bottom"> </td>
<td style="border-top: windowtext 0.5pt solid; border-bottom: windowtext 0.5pt solid; vertical-align: middle">                         4,606</td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle"> </td>
<td style="vertical-align: middle"> </td>
<td style="vertical-align: middle"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle"> </td></tr>
<tr>
<td colspan="3" style="vertical-align: bottom">Valuation allowance:</td>
<td style="vertical-align: middle"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle"> </td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="vertical-align: middle">Beginning of year</td>
<td style="vertical-align: middle">                       (4,606)</td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle">                       (1,224)</td></tr>
<tr>
<td style="vertical-align: middle"> </td>
<td colspan="2" style="vertical-align: middle">(Increase) decrease during year</td>
<td style="border-bottom: windowtext 0.5pt solid; vertical-align: middle">                       (9,546)</td>
<td style="vertical-align: bottom"> </td>
<td style="border-bottom: windowtext 0.5pt solid; vertical-align: middle">                       (3,382)</td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle"> </td>
<td style="vertical-align: middle">Ending balance</td>
<td style="border-bottom: windowtext 0.5pt solid; vertical-align: middle; border-top-color: windowtext; border-top-width: 0.5pt">                     (14,152)</td>
<td style="vertical-align: bottom"> </td>
<td style="border-bottom: windowtext 0.5pt solid; vertical-align: middle; border-top-color: windowtext; border-top-width: 0.5pt">                       (4,606)</td></tr>
<tr>
<td style="vertical-align: middle"> </td>
<td style="vertical-align: middle"> </td>
<td style="vertical-align: middle"> </td>
<td style="vertical-align: middle"> </td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle"> </td></tr>
<tr>
<td colspan="3" style="vertical-align: middle">Net deferred tax asset</td>
<td style="border-bottom: windowtext 2pt double; vertical-align: middle"> $                             -</td>
<td style="vertical-align: bottom"> </td>
<td style="border-bottom: windowtext 2pt double; vertical-align: middle"> $                             -</td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">A valuation allowance is established if it is more likely
than not that all or a portion of the deferred tax asset will not be realized.  The Company recorded a valuation allowance
in fiscal 2012 and 2011 due to the uncertainty of realization.  Management believes that based upon its projection of future
taxable operating income for the foreseeable future and its recent change in business and change in control, it is more likely
than not that the Company will not be able to realize the tax benefit associated with deferred tax assets.  The net change
in the valuation allowance during the years ended February 29, 2012 and February 28, 2011 was an increase of $9,546 and $3,382,
respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">At February 29, 2012, the Company had $41,624 of net operating
loss carryforwards which will expire from 2029 to 2031. The Company believes its tax positions are all highly certain of being
upheld upon examination. As such, the Company has not recorded a liability for unrecognized tax benefits. As of February 29, 2012,
tax years 2010 through 2012 remain open for IRS audit. The Company has received no notice of audit from the Internal Revenue Service
for any of the open tax years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">A reconciliation of income tax computed at the U.S. statutory
rate to the effective income tax rate is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: center">For the</td>
<td> </td>
<td style="text-align: center">For the</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: center">Year Ended</td>
<td> </td>
<td style="text-align: center">Year Ended</td></tr>
<tr>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle"> </td>
<td style="vertical-align: middle"> </td>
<td style="border-bottom: windowtext 0.5pt solid; vertical-align: bottom; text-align: center">February 29, 2012</td>
<td style="vertical-align: bottom"> </td>
<td style="border-bottom: windowtext 0.5pt solid; vertical-align: bottom; text-align: center">February 28, 2011</td></tr>
<tr>
<td colspan="3" style="vertical-align: middle">Statutory  U.S. federal income tax rate</td>
<td style="vertical-align: middle; text-align: right">34.0%</td>
<td style="vertical-align: bottom"> </td>
<td style="vertical-align: middle; text-align: right">34.0%</td></tr>
<tr>
<td colspan="3" style="vertical-align: middle">Change in valuation allowance</td>
<td style="border-bottom: windowtext 0.5pt solid; text-align: right; vertical-align: middle">                         (34.0)</td>
<td style="vertical-align: bottom"> </td>
<td style="border-bottom: windowtext 0.5pt solid; text-align: right; vertical-align: middle">                         (34.0)</td></tr>
<tr>
<td colspan="3" style="vertical-align: middle">Effective income tax rate</td>
<td style="border-bottom: windowtext 2pt double; vertical-align: middle; text-align: right">0.0%</td>
<td style="vertical-align: bottom"> </td>
<td style="border-bottom: windowtext 2pt double; vertical-align: middle; text-align: right">0.0%</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"><b>Note 7. Subsequent Events</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">On March 13, 2012 (the “recapitalization date”),
Aspen Group, Inc. acquired Aspen University Inc., an operating company, in a reverse merger transaction accounted for as a recapitalization
of Aspen University Inc. (the “Recapitalization” or the “Reverse Merger”). <font style="color: black">The
common and preferred stockholders of Aspen University Inc. received 25,515,204 common shares of Aspen Group, Inc. in exchange for
100% of the capital stock of Aspen University Inc. For accounting purposes, Aspen University Inc. is the acquirer and Aspen Group,
Inc. is the acquired company. Accordingly, after completion of the recapitalization, the historical operations of the Company are
those of Aspen University Inc. and the operations since the recapitalization date are those of Aspen University Inc. and Aspen
Group, Inc. The assets and liabilities of both companies are combined at historical cost on the recapitalization date.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0.5in">On April 26, 2012 and April 30, 2012, convertible notes payable
aggregating $20,000 were converted into 20,000 common shares of the Company (See Note 3).</p>
<p style="margin: 0pt"></p>
48960000
FY
35295204