SEGMENTS

3 Months Ended

Mar. 31, 2025

SEGMENTS [Abstract]

SEGMENTS

10. SEGMENTS

The Company manages its business, evaluates performance and allocates resources based on two reportable business segments, Campus Operations and Transitional.

Campus Operations – The Campus Operations segment includes campuses that are continuing in operation and contribute to the Company’s core operations and performance. All of the campuses continuing in operation are classified in this segment. The majority of the campuses offer programs across various areas of study.

Transitional – The Transitional segment refers to campuses that are marked for closure and are currently being taught out, in addition to campuses that are held-for-sale or sold. The net assets of the Summerlin, Las Vegas campus were classified as held for sale as of December 31, 2024 and written down by $1.1 million in the fourth quarter of 2024.  On January 1, 2025, the Company completed the sale of its Summerlin, Las Vegas campus, and no gain or loss was recognized on the sale. Operating results for the Summerlin campus were classified within the Transitional segment.

The individual operating segments have been aggregated into the two main reportable segments based on the method by which our Chief Operating Decision Maker (“CODM”) evaluates performance and allocates resources and as a result of the Company’s judgment, that the reporting units have similar products, production processes, types of customers, methods of distribution, regulatory environment and economic characteristics. The Company’s CODM is comprised of a team of executives deemed the “Executive Committee” which is made up of the following individuals:

1. Scott Shaw – Chief Executive Officer and Director

2. Brian Meyers – Executive Vice President, Chief Financial Officer, and Treasurer

The CODM assesses segment financial performance by reviewing segment revenue and segment operating income, which includes certain Corporate overhead allocations relating directly to the segments disclosed. Some of the allocated costs include the centralization of the Company’s financial aid process, national sales and receivables and default costs. The CODM will make decisions to allocate resources based on the review of monthly, quarterly and annual financial information categorized by segment. The financial information is presented to the CODM using actual-to-actual results and budget-to-actual results.

We evaluate performance based on operating results.  Adjustments to reconcile segment results with consolidated results are included in the caption “Corporate,” which primarily includes unallocated corporate activity

Summary financial information by reporting segment is as follows:

	Three Months Ended March 31,
	Consolidated						Campus Operations					Transitional					Corporate
	2025			2024			2025			2024		2025		2024			2025			2024
REVENUE	$	117,506		$	103,366		$	117,506		$	101,321	$	-	$	2,045		$	-		$	-
COSTS AND EXPENSES:
Instructional		23,015			22,511			23,015			21,895		-		616			-			-
Books and Tools		7,709			6,350			7,709			6,053		-		297			-			-
Facilities		13,085			11,389			13,085			11,157		-		232			-			-
Depreciation		3,600			2,773			3,600			2,753		-		20			-			-
Educational services and facilities		47,409			43,023			47,409			41,858		-		1,165			-			-
Sales and marketing		19,701			19,758			19,701			19,381		-		377			-			-
Student services		6,237			5,511			6,237			5,278		-		233			-			-
Bad debt		11,835			12,213			11,799			11,954		-		259			36			-
Administrative		28,969			22,819			10,943			10,242		-		295			18,026			12,283
Depreciation		162			191			-			-		-		-			162			191
Selling, general and administrative		66,904			60,492			48,680			46,854		-		1,164			18,224			12,474
(Gain) loss on sale of assets		(220	)		309			(254	)		-		-		-			34			309
Total costs and expenses		114,093			103,824			95,835			88,712		-		2,329			18,258			12,783
OPERATING INCOME (LOSS)	$	3,413		$	(458	)	$	21,671		$	12,609	$	-	$	(284	)	$	(18,258	)	$	(12,783	)