Applied Digital Corp. Files Q1 2025 10-Q

TL;DR

APLD Q1 10-Q filed. Financials for period ending Aug 31, 2024 are out.

AI Summary

Applied Digital Corp. filed its 10-Q for the period ending August 31, 2024. The company, formerly known as Applied Blockchain, Inc., is incorporated in Nevada and headquartered in Dallas, Texas. This filing covers the first quarter of their fiscal year, which ends on May 31st. The company's SIC code is 7374 for Computer Processing & Data Preparation.

Why It Matters

This filing provides investors with the latest financial performance and operational updates for Applied Digital Corp. during its first fiscal quarter.

Risk Assessment

Risk Level: medium — The company has a history of name changes and operates in the technology sector, which can be volatile.

Key Players & Entities

• Applied Digital Corp. (company) — Filer of the 10-Q
• August 31, 2024 (date) — End of reporting period
• May 31 (date) — Fiscal year end
• Dallas, Texas (location) — Company headquarters
• Applied Blockchain, Inc. (company) — Former company name

FAQ

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share APLD Nasdaq Global Select Mar
• $0.7 million — ludes related party interest expense of $0.7 million for the three months ended August 31, 2

Filing Documents

• apld-20240831.htm (10-Q) — 1151KB
• ex1016-firstamendmenttopro.htm (EX-10.16) — 52KB
• ex311apldfy25q110-q.htm (EX-31.1) — 10KB
• ex312apldfy25q110-q.htm (EX-31.2) — 10KB
• ex321apldfy25q110-q.htm (EX-32.1) — 6KB
• ex322apldfy25q110-q.htm (EX-32.2) — 6KB
• 0001144879-24-000253.txt ( ) — 7572KB
• apld-20240831.xsd (EX-101.SCH) — 60KB
• apld-20240831_cal.xml (EX-101.CAL) — 102KB
• apld-20240831_def.xml (EX-101.DEF) — 392KB
• apld-20240831_lab.xml (EX-101.LAB) — 691KB
• apld-20240831_pre.xml (EX-101.PRE) — 565KB
• apld-20240831_htm.xml (XML) — 908KB

- Financial Information

Part I - Financial Information Item 1.

Financial Statements

Financial Statements 1 Condensed Consolidated Balance Sheets as of August 31, 2024 and May 31, 2024 (unaudited) 1 Condensed Consolidated Statements of Operations for the three months ended August 31, 2024 and August 31, 2023 (unaudited) 2 Condensed Consolidated Statements of Changes in Series E Redeemable an d Series F Converti ble P referred Stock and Stockholders' Equity for the three months ended August 31, 2024 and August 31, 2023 (unaudited) 3 Condensed Consolidated Statements of Cash Flows for the three months ended August 31, 2024 and August 31, 2023 (unaudited) 4 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 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 36 Item 4.

Controls and Procedures

Controls and Procedures 36

- Other Information

Part II - Other Information Item 1.

Legal Proceedings

Legal Proceedings 38 Item 1A.

Risk Factors

Risk Factors 38 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 3. Defaults Upon Senior Securities 39 Item 4. Mine Safety Disclosures 39 Item 5. Other Information 39 Item 6. Exhibits 40

Signatures

Signatures 42 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) August 31, 2024 May 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 58,215 $ 3,339 Restricted cash 21,342 21,349 Accounts receivable 2,298 3,847 Prepaid expenses and other current assets 2,063 1,343 Current assets held for sale 192 384 Total current assets 84,110 30,262 Property and equipment, net 478,249 340,381 Operating lease right of use assets, net 147,148 153,611 Finance lease right of use assets, net 200,649 218,683 Other assets 27,576 19,930 TOTAL ASSETS $ 937,732 $ 762,867 LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 140,264 $ 116,117 Accrued liabilities 26,723 26,282 Current portion of operating lease liability 22,393 21,705 Current portion of finance lease liability 112,079 107,683 Current portion of debt 6,892 10,082 Current portion of debt, at fair value 30,464 35,836 Customer deposits 13,676 13,819 Related party customer deposits — 1,549 Deferred revenue 16,867 37,674 Related party deferred revenue — 1,692 Due to customer 17,211 13,002 Other current liabilities 96 96 Total current liabilities 386,665 385,537 Long-term portion of operating lease liability 103,871 109,740 Long-term portion of finance lease liability 43,841 63,288 Long-term debt 106,227 79,472 Total liabilities 640,604 638,037 Commitments and contingencies (Note 11) Temporary equity Series E preferred stock, $ 0.001 par value, 2,000,000 shares authorized, 301,673 shares issued and outstanding at August 31, 2024, and no shares authorized, issued or outstanding at May 31, 2024 6,932 — Series F preferred stock, 0.001 par value, 53,191 shares authorized, issued and outstanding at August 31, 2024, and no shares authorized, issued or outstanding at May 31, 2024 48,350 — Stockholders' equity: Common stock, $ 0.001

View Full Filing

View this 10-Q filing on SEC EDGAR