Applied Digital Corp. Files 10-Q for Period Ending February 29, 2024

TL;DR

<b>Applied Digital Corp. filed its Q3 2024 10-Q report on April 11, 2024, detailing financial performance and corporate information.</b>

AI Summary

Applied Digital Corp. (APLD) filed a Quarterly Report (10-Q) with the SEC on April 11, 2024. The filing is a 10-Q for Applied Digital Corp. for the period ending February 29, 2024. The company was formerly known as Applied Blockchain, Inc. and Applied Science Products, Inc. The fiscal year end for Applied Digital Corp. is May 31. The company's business address is in Dallas, Texas. The filing was submitted on April 11, 2024.

Why It Matters

For investors and stakeholders tracking Applied Digital Corp., this filing contains several important signals. This 10-Q provides investors with the latest quarterly financial data for Applied Digital Corp., crucial for assessing performance and making investment decisions. Understanding the company's historical name changes and fiscal year-end is important for tracking its evolution and comparing financial periods accurately.

Risk Assessment

Risk Level: low — Applied Digital Corp. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant financial events or disclosures that would elevate the risk level.

Analyst Insight

Monitor future 10-Q filings for revenue growth, net income trends, and updates on operational expansion, particularly in the context of their data center and AI infrastructure business.

Key Numbers

• 2024-02-29 — Period End Date (Conformed period of report)
• 2024-04-11 — Filing Date (Date the 10-Q was filed)
• 05-31 — Fiscal Year End (Applied Digital Corp.'s fiscal year end)
• 214-556-2465 — Business Phone (Contact phone number for the company)

Key Players & Entities

• Applied Digital Corp. (company) — Filer and subject of the report
• Applied Blockchain, Inc. (company) — Former company name
• Applied Science Products, Inc. (company) — Former company name
• Dallas (location) — City of business address
• NV (location) — State of incorporation
• 2024-02-29 (date) — Conformed period of report
• 2024-04-11 (date) — Filed as of date
• 7374 (industry_code) — Standard Industrial Classification for Services-Computer Processing & Data Preparation

FAQ

Industry Context

Applied Digital Corp. operates in the Services-Computer Processing & Data Preparation industry, focusing on data centers and AI infrastructure.

Regulatory Implications

The filing is a standard 10-Q report under the Securities Exchange Act of 1934, requiring public companies to disclose quarterly financial information.

What Investors Should Do

1. Review the full 10-Q document for detailed financial statements and management's discussion and analysis.
2. Track future SEC filings for updates on revenue, profitability, and strategic initiatives.
3. Research the company's industry peers to benchmark performance and identify competitive positioning.

Key Dates

• 2024-02-29: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-04-11: Filing Date — Date the 10-Q was officially submitted to the SEC.
• 2021-04-23: Name Change — Date Applied Digital Corp. changed its name from Applied Blockchain, Inc.

Year-Over-Year Comparison

This filing is a standard quarterly report and does not provide direct comparative data to a previous filing within this extracted text.

Key Financial Figures

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

Filing Documents

• apld-20240229.htm (10-Q) — 1281KB
• ex311apldfy24q310-q.htm (EX-31.1) — 10KB
• ex312apldfy24q310-q.htm (EX-31.2) — 10KB
• ex321apldfy24q310-q.htm (EX-32.1) — 6KB
• ex322apldfy24q310-q.htm (EX-32.2) — 6KB
• 0001144879-24-000078.txt (&nbsp;) — 7337KB
• apld-20240229.xsd (EX-101.SCH) — 59KB
• apld-20240229_cal.xml (EX-101.CAL) — 109KB
• apld-20240229_def.xml (EX-101.DEF) — 361KB
• apld-20240229_lab.xml (EX-101.LAB) — 548KB
• apld-20240229_pre.xml (EX-101.PRE) — 483KB
• apld-20240229_htm.xml (XML) — 1048KB

- Financial Information

Part I - Financial Information Item 1.

Financial Statements

Financial Statements 1 Condensed Consolidated Balance Sheets as of February 29, 2024 and May 31, 2023 (unaudited) 1 Condensed Consolidated Statements of Operations for the three and nine months ended February 29, 2024 and February 28, 2023 (unaudited) 2 Condensed Consolidated Statements of Changes in Stockholders' Equity for the three and nine months ended February 29, 2024 and February 28, 2023 (unaudited) 3 Condensed Consolidated Statements of Cash Flows for the nine months ended February 29, 2024 and February 28, 2023 (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 21 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 32 Item 4.

Controls and Procedures

Controls and Procedures 32

- Other Information

Part II - Other Information Item 1.

Legal Proceedings

Legal Proceedings 34 Item 1A.

Risk Factors

Risk Factors 34 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 35 Item 3. Defaults Upon Senior Securities 35 Item 4. Mine Safety Disclosures 35 Item 5. Other Information 35 Item 6. Exhibits 36

Signatures

Signatures 37 Table of Contents

- 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) February 29, 2024 May 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 4,435 $ 28,999 Restricted cash 29,545 14,575 Accounts receivable 225 82 Prepaid expenses and other current assets 6,127 2,012 Current assets held for sale 65,369 — Total current assets 105,701 45,668 Property and equipment, net 211,172 195,593 Operating lease right of use assets, net 95,429 1,290 Finance lease right of use assets, net 189,627 14,303 Other assets 41,239 7,103 TOTAL ASSETS $ 643,168 $ 263,957 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 93,918 $ 6,446 Accrued liabilities 27,545 9,960 Current portion of operating lease liability 13,023 320 Current portion of finance lease liability 86,438 5,722 Current portion of debt 19,329 7,950 Customer deposits 32,410 32,560 Related party customer deposits 3,810 3,810 Deferred revenue 63,121 47,168 Related party deferred revenue 1,287 1,524 Current liabilities held for sale 8,279 — Total current liabilities 349,160 115,460 Long-term portion of operating lease liability 69,260 1,005 Long-term portion of finance lease liability 63,803 8,334 Long-term debt 24,845 33,222 Long-term related party loan 17,612 35,257 Other long-term related party liabilities — 1,000 Total liabilities 524,680 194,278 Commitments and contingencies Stockholders' equity: Common stock, $ 0.001 par value, 166,666,667 shares authorized, 127,486,937 shares issued and 122,417,839 shares outstanding at February 29, 2024, and 100,927,358 shares issued and 95,925,630 shares outstanding at May 31, 2023 127 101 Treasury stock, 5,069,098 shares at February 29, 2024 and 5,001,728 shares at May 31, 2023, at cost ( 62 ) ( 62 ) Additional paid in capital 303,963 160,194 Accumulated deficit ( 185,540 ) ( 100,716 ) Total stock

View Full Filing

View this 10-Q filing on SEC EDGAR