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Note 7. Subsequent º£½Ç¹Ù·½app

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”). 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.

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).