Applied Digital Corp. Files 10-Q for Period Ending November 30, 2023

AI Summary

Applied Digital Corp. (APLD) filed a Quarterly Report (10-Q) with the SEC on January 16, 2024. The company filed a 10-Q report for the period ending November 30, 2023. Applied Digital Corp. was formerly known as Applied Blockchain, Inc. until April 23, 2021. The company's fiscal year ends on May 31. The filing covers the period from June 1, 2023, to November 30, 2023. The company is classified under SIC code 7374 for Services-Computer Processing & Data Preparation.

Why It Matters

For investors and stakeholders tracking Applied Digital Corp., this filing contains several important signals. This filing provides investors with the latest quarterly financial data, crucial for assessing the company's performance and making informed investment decisions. Understanding the company's operational segments, such as Datacenter Hosting and Cloud Services, is key to evaluating its growth strategy and market position.

Risk Assessment

Risk Level: medium — Applied Digital Corp. shows moderate risk based on this filing. The company's business is in computer processing and data preparation, a sector that can be subject to rapid technological changes and competitive pressures, requiring continuous innovation and investment.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-Q to understand Applied Digital Corp.'s current financial health and future prospects.

Key Numbers

• 2023-11-30 — Reporting Period End Date (Conformed period of report)
• 2024-01-16 — Filing Date (Filed as of date)
• 0531 — Fiscal Year End (Fiscal year end)
• 20210423 — Name Change Date (Date of name change from Applied Blockchain, Inc.)

Key Players & Entities

• Applied Digital Corp. (company) — Filer name
• Applied Blockchain, Inc. (company) — Former company name
• NV (location) — State of incorporation
• Dallas (location) — Business address city
• TX (location) — Business address state
• 75219 (location) — Business address zip
• 214-556-2465 (phone) — Business phone number
• 7374 (other) — Standard Industrial Classification

FAQ

Key Dates

• 2023-11-30: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-01-16: Filing Date — Date the 10-Q was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides investors with an update on the company's financial performance and operations during the quarter.)

SIC Code

Standard Industrial Classification code used to classify businesses. (Helps categorize Applied Digital Corp. within the Services-Computer Processing & Data Preparation industry.)

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share APLD Nasdaq Global Select Mar

Filing Documents

• apld-20231130.htm (10-Q) — 1130KB
• a101apld-indemnityagreemen.htm (EX-10.1) — 80KB
• ex311apldfy24q210-q.htm (EX-31.1) — 10KB
• ex312apldfy24q210-q.htm (EX-31.2) — 10KB
• ex321apldfy24q210-q.htm (EX-32.1) — 6KB
• ex322apldfy24q210-q.htm (EX-32.2) — 6KB
• a991apldellendaleanchorten.htm (EX-99.1) — 7KB
• image_0a.jpg (GRAPHIC) — 11KB
• 0001144879-24-000010.txt ( ) — 6325KB
• apld-20231130.xsd (EX-101.SCH) — 45KB
• apld-20231130_cal.xml (EX-101.CAL) — 95KB
• apld-20231130_def.xml (EX-101.DEF) — 255KB
• apld-20231130_lab.xml (EX-101.LAB) — 508KB
• apld-20231130_pre.xml (EX-101.PRE) — 369KB
• apld-20231130_htm.xml (XML) — 905KB

- Financial Information

Part I - Financial Information Item 1.

Financial Statements

Financial Statements 1 Condensed Consolidated Balance Sheets as of November 30, 2023 and May 31, 2023 (unaudited) 1 Condensed Consolidated Statements of Operations for the three and six months ended November 30 , 2023 and November 30 , 2022 (unaudited) 2 Condensed Consolidated Statements of Changes in Stockholders' Equity for the three and six months ended November 30, 2023 and November 30, 2022 (unaudited) 3 Condensed Consolidated Statements of Cash Flows for the six months ended November 30, 2023 and November 30, 2022 (unaudited) 5 Notes to the Condensed Consolidated Financial Statements (unaudited) 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 14 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 24 Item 4.

Controls and Procedures

Controls and Procedures 24

- Other Information

Part II - Other Information Item 1.

Legal Proceedings

Legal Proceedings 25 Item 1A.

Risk Factors

Risk Factors 25 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25 Item 3. Defaults Upon Senior Securities 25 Item 4. Mine Safety Disclosures 25 Item 5. Other Information 25 Item 6. Exhibits 26

Signatures

Signatures 27 Table of Conten ts

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements APPLIED DIGITAL CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share and par value data) November 30, 2023 May 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 9,217 $ 28,999 Restricted cash 25,416 14,575 Accounts receivable 307 82 Prepaid expenses and other current assets 1,517 2,012 Total current assets 36,457 45,668 Property and equipment, net 258,508 195,593 Operating lease right of use assets, net 73,373 1,290 Finance lease right of use assets, net 95,199 14,303 Other assets 17,117 7,103 TOTAL ASSETS $ 480,654 $ 263,957 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 38,262 $ 6,446 Accrued liabilities 10,538 8,330 Current portion of operating lease liability 8,887 320 Current portion of finance lease liability 42,805 5,722 Current portion of debt 9,279 7,950 Customer deposits 36,833 32,559 Related party customer deposits 3,811 3,811 Deferred revenue 50,051 47,168 Related party deferred revenue 1,953 1,524 Sales and use tax payable 4 1,630 Total current liabilities 202,423 115,460 Long-term portion of operating lease liability 52,324 1,005 Long-term portion of finance lease liability 36,748 8,334 Long-term debt 33,501 33,222 Long-term related party loan — 35,257 Other long-term related party liabilities — 1,000 Total liabilities 324,996 194,278 Commitments and contingencies Stockholders' equity: Common stock, $ 0.001 par value, 166,666,667 shares authorized, 122,734,060 shares issued and 117,732,332 shares outstanding at November 30, 2023, and 100,927,358 shares issued and 95,925,630 shares outstanding at May 31, 2023 123 101 Treasury stock, 5,001,728 shares at November 30, 2023 and 5,001,728 shares at May 31, 2023, at cost ( 62 ) ( 62 ) Additional paid in capital 278,299 160,194 Accumulated deficit ( 122,702 ) ( 100,716 ) Total stockholders' equity attributable to Applied Digital Corporation 1

View Full Filing

View this 10-Q filing on SEC EDGAR