Applied Digital (APLD) 10-Q16 Jan 242024 Q2 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	6 Months Ended
Cover - shares	Nov. 30, 2023	Jan. 10, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Nov. 30, 2023
Document Transition Report	false
Entity File Number	001-31968
Entity Registrant Name	APPLIED DIGITAL CORPORATION
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	95-4863690
Entity Address, Address Line One	3811 Turtle Creek Boulevard
Entity Address, Address Line Two	Suite 2100
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75219
City Area Code	214
Local Phone Number	556-2465
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	APLD
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		122,044,737
Entity Central Index Key	0001144879
Current Fiscal Year End Date	--05-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Nov. 30, 2023	May 31, 2023
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
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
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
Other long-term related party liabilities	0	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	155,658	59,517
Noncontrolling interest	0	10,162
Total stockholders' equity including noncontrolling interest	155,658	69,679
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	480,654	263,957
Nonrelated Party
Current liabilities:
Customer deposits	36,833	32,559
Deferred revenue	50,051	47,168
Long-term debt	33,501	33,222
Related Party
Current liabilities:
Customer deposits	3,811	3,811
Deferred revenue	1,953	1,524
Long-term debt	$ 0	$ 35,257

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Nov. 30, 2023	May 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	166,666,667	166,666,667
Common stock, shares issued (in shares)	122,734,060	100,927,358
Common stock, shares outstanding (in shares)	117,732,332	95,925,630
Treasury stock, (in shares)	5,001,728	5,001,728

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Revenue:
Total revenue	$ 42,203	$ 12,340	$ 78,527	$ 19,264
Costs and expenses:
Cost of revenues	29,222	11,812	53,620	17,905
Selling, general and administrative	21,075	27,226	38,127	32,245
Loss from legal settlement	80	0	2,380	0
Total costs and expenses	50,377	39,038	94,127	50,150
Operating loss	(8,174)	(26,698)	(15,600)	(30,886)
Interest expense, net	2,355	364	4,430	709
Loss on extinguishment of debt	0	0	2,353	94
Net loss before income tax expenses	(10,529)	(27,062)	(22,383)	(31,689)
Income tax expense (benefit)	0	(312)	0	(280)
Net loss	(10,529)	(26,750)	(22,383)	(31,409)
Net loss attributable to noncontrolling interest	0	(133)	(397)	(261)
Net loss attributable to Applied Digital Corporation	$ (10,529)	$ (26,617)	$ (21,986)	$ (31,148)
Basic net loss per share attributable to Applied Digital Corporation (in dollars per share)	$ (0.10)	$ (0.28)	$ (0.21)	$ (0.33)
Diluted net loss per share attributable to Applied Digital Corporation (in dollars per share)	$ (0.10)	$ (0.28)	$ (0.21)	$ (0.33)
Basic weighted average number of shares outstanding (in shares)	109,663,030	93,422,427	105,067,375	93,263,266
Diluted weighted average number of shares outstanding (in shares)	109,663,030	93,422,427	105,067,375	93,263,266
Datacenter hosting revenue \| Nonrelated Party
Revenue:
Total revenue	$ 34,119	$ 8,747	$ 64,106	$ 13,086
Datacenter hosting revenue \| Related Party
Revenue:
Total revenue	3,634	3,593	7,819	6,178
Cloud services revenue
Revenue:
Total revenue	$ 4,450	$ 0	$ 6,602	$ 0

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) - USD ($) $ in Thousands	Total	Stockholders’ Equity	Common Stock	Treasury Stock	Additional Paid in Capital	Accumulated Deficit	Noncontrolling interest
Beginning balance, common stock (in shares) at May. 31, 2022			97,837,703
Beginning balance at May. 31, 2022	$ 79,235	$ 72,259	$ 98	$ (62)	$ 128,293	$ (56,070)	$ 6,976
Beginning balance, treasury stock (in shares) at May. 31, 2022				(36,296)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued from award vestings & stock awards (in shares)			1,110,379
Shares issued from award vestings	0		$ 1		(1)
Stock-based compensation	22,398	22,398			22,398
Capital contribution to noncontrolling interest	$ 1,746
Common stock forfeited (in shares)	4,965,432
Net loss	$ (31,409)	(31,148)				(31,148)	(261)
Ending balance, common stock (in shares) at Nov. 30, 2022			98,948,082
Ending balance at Nov. 30, 2022	71,970	63,509	$ 99	$ (62)	150,690	(87,218)	8,461
Ending balance, treasury stock (in shares) at Nov. 30, 2022				(5,001,728)
Beginning balance, common stock (in shares) at Aug. 31, 2022			97,837,703
Beginning balance at Aug. 31, 2022	76,901	68,307	$ 98	$ (62)	128,872	(60,601)	8,594
Beginning balance, treasury stock (in shares) at Aug. 31, 2022				(5,001,728)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued from award vestings & stock awards (in shares)			1,110,379
Shares issued from award vestings			$ 1		(1)
Stock-based compensation	21,819	21,819			21,819
Net loss	(26,750)	(26,617)				(26,617)	(133)
Ending balance, common stock (in shares) at Nov. 30, 2022			98,948,082
Ending balance at Nov. 30, 2022	$ 71,970	63,509	$ 99	$ (62)	150,690	(87,218)	8,461
Ending balance, treasury stock (in shares) at Nov. 30, 2022				(5,001,728)
Beginning balance, common stock (in shares) at May. 31, 2023	95,925,630		100,927,358
Beginning balance at May. 31, 2023	$ 69,679	59,517	$ 101	$ (62)	160,194	(100,716)	10,162
Beginning balance, treasury stock (in shares) at May. 31, 2023	(5,001,728)			(5,001,728)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued in offering, net of costs (in shares)			14,787,598
Shares issued in offering, net of costs	$ 97,922	97,922	$ 16		97,906
Shares issued from award vestings & stock awards (in shares)			5,534,837
Shares issued from award vestings	0		$ 5		(5)
Stock-based compensation	10,440	10,440			10,440
Net loss	$ (22,383)	(21,986)				(21,986)	(397)
Extinguishment of noncontrolling interest (in shares)			1,484,267
Extinguishment of noncontrolling interest		(9,765)	$ (1)		(9,764)		9,765
Ending balance, common stock (in shares) at Nov. 30, 2023	117,732,332		122,734,060
Ending balance at Nov. 30, 2023	$ 155,658	155,658	$ 123	$ (62)	278,299	(122,702)	0
Ending balance, treasury stock (in shares) at Nov. 30, 2023	(5,001,728)			(5,001,728)
Beginning balance, common stock (in shares) at Aug. 31, 2023			110,850,885
Beginning balance at Aug. 31, 2023	$ 127,948	127,948	$ 110	$ (62)	240,073	(112,173)	0
Beginning balance, treasury stock (in shares) at Aug. 31, 2023				(5,001,728)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued in offering, net of costs (in shares)			6,879,070
Shares issued in offering, net of costs	33,440	33,440	$ 8		33,432
Shares issued from award vestings & stock awards (in shares)			5,004,105
Shares issued from award vestings	0		$ 5		(5)
Stock-based compensation	4,799	4,799			4,799
Net loss	$ (10,529)	(10,529)				(10,529)
Ending balance, common stock (in shares) at Nov. 30, 2023	117,732,332		122,734,060
Ending balance at Nov. 30, 2023	$ 155,658	$ 155,658	$ 123	$ (62)	$ 278,299	$ (122,702)	$ 0
Ending balance, treasury stock (in shares) at Nov. 30, 2023	(5,001,728)			(5,001,728)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
CASH FLOW FROM OPERATING ACTIVITIES
Net loss	$ (22,383)	$ (31,409)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	21,284	2,704
Stock-based compensation	10,440	22,398
Deferred income taxes	0	(280)
Loss on extinguishment of debt	2,353	94
Amortization of debt issuance costs	352	0
Loss on abandonment of assets	189	0
Changes in operating assets and liabilities:
Accounts receivable	(225)	(49)
Prepaid expenses and other current assets	495	(1,061)
Accounts payable	6,442	(6,844)
Accrued liabilities	2,093	1,099
Lease assets and liabilities	(16,904)	(220)
Sales and use tax payable	(1,626)	865
Other assets	(1,040)	0
CASH FLOW PROVIDED BY OPERATING ACTIVITIES	9,056	27,979
CASH FLOW FROM INVESTING ACTIVITIES
Purchases of property and equipment and other assets	(45,830)	(70,305)
Finance lease prepayments	(19,388)	0
Purchases of investments	(390)	0
CASH USED IN INVESTING ACTIVITIES	(65,608)	(70,305)
CASH FLOW FROM FINANCING ACTIVITIES
Repayment of finance leases	(13,071)	(778)
Payment of deferred financing costs	0	(378)
Tax payments for restricted stock upon vesting	0	(43)
Noncontrolling interest contributions	0	1,747
Proceeds from issuance of common stock, net of costs	97,922	0
CASH FLOW PROVIDED BY FINANCING ACTIVITIES	47,612	14,101
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(8,940)	(28,225)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD	43,574	46,299
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	34,634	18,074
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid	4,370	707
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES
Operating right-of-use assets obtained by lease obligation	69,329	0
Finance right-of-use assets obtained by lease obligation	96,946	6,925
Property and equipment in accounts payable	23,572	3,466
Conversion of non-controlling interest	9,765	0
Nonrelated Party
Changes in operating assets and liabilities:
Customer deposits	4,274	14,784
Deferred revenue	2,883	25,147
CASH FLOW FROM FINANCING ACTIVITIES
Borrowings of long-term debt	4,732	21,711
Repayments of long-term debt	(4,471)	(8,158)
Related Party
Changes in operating assets and liabilities:
Customer deposits	0	381
Deferred revenue	429	370
CASH FLOW FROM FINANCING ACTIVITIES
Borrowings of related party debt	8,000	0
Repayment of related party debt	$ (45,500)	$ 0

Business and Organization

Business and Organization	6 Months Ended
Business and Organization	Nov. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Organization	Business and Organization Applied Digital Corporation (the “Company”), is a designer, builder, and operator of digital infrastructure providing cost-competitive solutions to customers. The Company has three reportable segments. Financial information for each segment is contained in Note 10 - Business Segments.

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	6 Months Ended
Basis of Presentation and Significant Accounting Policies	Nov. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies	Basis of Presentation and Significant Accounting Policies Principles of Consolidation The accompanying interim unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"), including the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in the Company's annual consolidated financial statements on Form 10-K have been condensed or omitted. The condensed consolidated balance sheet as of May 31, 2023 has been derived from the audited consolidated financial statements as of that date, but does not include all disclosures required for audited annual financial statements. In the Company’s opinion, all necessary adjustments have been made for the fair presentation of the results of the interim periods presented. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year. For further information, please refer to and read these interim unaudited condensed consolidated financial statements in conjunction with the Company's audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 2023 filed with the SEC on August 2, 2023. Significant Accounting Policies and Use of Estimates Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ significantly from those estimates. The most significant accounting estimates inherent in the preparation of the Company’s financial statements include estimates of the valuation allowance associated with the Company’s deferred tax assets. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification 606, Revenue from Contracts with Customers. Datacenter Hosting Revenue The Company provides energized space to customers who locate their hardware within the Company’s co-hosting facility. All datacenter hosting performance obligations are achieved simultaneously by providing the hosting environment for the customers’ operations. Customers pay a fixed rate to the Company in exchange for a managed hosting environment supported by customer-provided equipment. Revenue is recognized based on the contractual fixed rate, net of any credits for non-performance, over the term of the agreements. Any ancillary revenue for maintenance or installation services is at a point in time when the maintenance or installation service is complete. As these services are directly attributable to the Company’s datacenter hosting service, this revenue is captured within the datacenter hosting revenue caption in our condensed consolidated statements of operations. Customer contracts include advance payment terms. All advanced service payments are recorded as deferred revenue and are recognized as revenue once the related service is provided. Cloud Services Revenue The Company also provides managed cloud infrastructure services to customers, such as artificial intelligence and machine learning developers, to help develop their advanced products. Customers pay a fixed rate to the Company in exchange for managed cloud services supported by Company-provided equipment. Revenues are recognized based on the fixed rate, net of any credits for non-performance, over the term of the agreements. Segments The Company has identified three reportable segments: cloud services (“Cloud services”), high-performance compute hosting (“HPC hosting”), and datacenter hosting (“Datacenter hosting”). The Company’s chief operating decision-maker evaluates performance, makes operating decisions and allocates resources on both a consolidated basis and on the basis of these three reportable segments. Intercompany transactions between segments are excluded for management reporting purposes. The Datacenter hosting segment operates datacenters to provide energized space to crypto mining customers. Customer-owned hardware is installed in the Company’s facilities and the Company provides operational and maintenance services for a fixed fee. The Cloud services segment operates through our Sai Computing brand and provides cloud services to customers, such as artificial intelligence and machine learning developers, to develop their advanced products. Customers pay a fixed rate to the Company in exchange for a managed hosting environment supported by Company-provided equipment. The HPC hosting segment designs, builds, and operates datacenters which are designed to support high-compute applications using advanced and sophisticated infrastructures to provide services to customers. See Note 3 - Basis of Presentation and Significant Accounting Policies to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended May 31, 2023, as filed with the SEC, for additional information regarding the Company’s significant accounting policies and use of estimates. Recent Accounting Pronouncements We reviewed all recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact on our consolidated financial statements. Reclassifications We have reclassified certain prior period revenue amounts from datacenter hosting revenue to related party datacenter hosting revenue on our condensed consolidated statements of operations. We have also reclassified amounts from accounts payable and accrued expenses and prepaid expenses and other current assets to accounts payable, accrued expenses, prepaid expenses, and other current assets as well as from customer deposits and deferred revenue to the associated related party caption lines and from prepaid expenses and other current assets to other assets in our condensed consolidated balance sheets to conform to our current period presentation. Lastly, we have reclassified interest income from selling, general and administrative to interest expense, net in our condensed consolidated statement of operations to conform to our current period presentation. These reclassifications had no impact on reported net income, cash flows, or total assets and liabilities. Cash, Cash Equivalents, and Restricted Cash Cash, cash equivalents, and restricted cash within the consolidated balance sheets that are included in the consolidated statements of cash flows as of November 30, 2023 and May 31, 2023 were as follows (in thousands): November 30, 2023 May 31, 2023 Net Cash & Equivalents $ 9,217 $ 28,999 Restricted Cash 25,416 14,575 Total Cash & Cash Equivalents $ 34,633 $ 43,574

Property and Equipment

Property and Equipment	6 Months Ended
Property and Equipment	Nov. 30, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment consisted of the following as of November 30, 2023, and May 31, 2023 (in thousands): Estimated Useful Life November 30, May 31, Electric generation and transformers 15 years $ 13,169 $ 4,655 Other equipment and fixtures 5 years - 7 years 5,074 1,684 Construction in progress 70,846 106,226 Information systems and software 5 years 41,295 21,173 Land and building Land 6,213 2,152 Land improvements 15 years 1,391 1,293 Building 39 years 129,815 63,350 Leasehold improvements 3 years - 7 years 468 — Total cost of property and equipment 268,271 200,533 Accumulated depreciation (9,763) (4,940) Property and equipment, net $ 258,508 $ 195,593 Depreciation expense totaled $2.6 million and $4.9 million for the three and six months ended November 30, 2023 and $0.8 million and $1.7 million for the three and six months ended November 30, 2022.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	6 Months Ended
Revenue from Contracts with Customers	Nov. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	Revenue from Contracts with Customers Below is a summary of the Company’s revenue concentration by major customers for the three and six months ended November 30, 2023 and 2022, respectively. Three Months Ended November 30, Six Months Ended November 30, 2023 2022 2023 2022 Customer A 70 % — % 69 % — % Customer B — % 27 % — % 22 % Customer C — % 33 % — % 34 % Customer D — % 16 % — % 18 % Customer E — % 13 % — % 14 % Customer F — % 12 % — % 13 % Customer G 11 % — % — % — % Deferred Revenue As of November 30, 2023, the Company had $52.0 million in deferred revenue (inclusive of related party deferred revenue), which represents the Company’s remaining performance obligations, and expects to recognize the entire balance within the next 12 months. Changes in the Company's deferred revenue balances for the six months ended November 30, 2023 and 2022, respectively, are shown in the following tables (in thousands): Six Months Ended November 30, 2023 November 30, 2022 Balance, beginning of period $ 48,692 $ 3,877 Advance billings 81,839 44,646 Revenue recognized (78,527) (19,264) Other adjustments — 135 Less: Related party balances (1,953) (1,639) Balance, end of period $ 50,051 $ 27,755 Customer Deposits Changes in the Company's customer deposits balances for the six months ended November 30, 2023 and 2022, respectively, are shown in the following table (in thousands): Six Months Ended November 30, 2023 November 30, 2022 Balance, beginning of period $ 36,370 $ 9,524 Customer deposits received 4,274 15,300 Customer deposits refunded — — Other adjustments — (135) Less: Related party balances (3,811) (1,940) Balance, end of period $ 36,833 $ 22,749

Related Party Transactions

Related Party Transactions	6 Months Ended
Related Party Transactions	Nov. 30, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Related Party Revenue The following table illustrates related party revenue for the three and six months ended November 30, 2023 and November 30, 2022 (in thousands): Three Months Ended November 30, Six Months Ended November 30, 2023 2022 2023 2022 Customer D* $ 1,986 $ 1,996 $ 4,319 $ 3,446 Customer E** $ 1,648 $ 1,596 $ 3,500 $ 2,732 * Customer D is a subsidiary of an entity which is deemed to beneficially own over 5% of the Company's outstanding common stock ** Customer E is 60% owned by an individual who is deemed to beneficially own over 5% of the Company's outstanding common stock The following table illustrates related party deferred revenue and deposits balances as of November 30, 2023 and May 31, 2023 (in thousands): Customer D balances as of Customer E balances as of November 30, 2023 May 31, 2023 November 30, 2023 May 31, 2023 Deferred revenue $ 1,470 $ 1,474 $ 483 $ 50 Customer Deposits $ 2,450 $ 2,450 $ 1,361 $ 1,361 Related Party Sublease Income The Company receives sublease income from B. Riley Asset Management, which is also a wholly-owned subsidiary of B. Riley Financial, Inc. Mr. Cummins, the CEO of the Company, is also the President of B. Riley Asset Management. The following table illustrates related party revenue for the three and six months ended November 30, 2023 and November 30, 2022 (in thousands): Three Months Ended November 30, Six Months Ended November 30, 2023 2022 2023 2022 Sublease Income $ 24 $ 30 $ 47 $ 58 B. Riley Loan

Debt

Debt	6 Months Ended
Debt	Nov. 30, 2023
Debt Disclosure [Abstract]
Debt	Debt Long-term debt consisted of the following components (in thousands): Interest Rate Maturity Date November 30, 2023 May 31, 2023 Starion term loan 6.50% July 25, 2027 $ 11,428 $ 12,786 Vantage Garden City loan 6.15% April 26, 2028 13,427 10,074 Starion Ellendale loan 7.48% February 3, 2028 17,974 19,728 Other long-term debt 372 354 Deferred financing costs, net of amortization (421) (3,012) Less: Current portion of term loan (9,279) (7,950) Long-term debt, net $ 33,501 $ 31,980 Remaining Principal Payments Below is a summary of the remaining principal payments due over the life of the term loans as of November 30, 2023 (in thousands): Remainder of FY24 $ 4,645 FY25 9,768 FY26 10,441 FY27 11,150 FY28 7,197 Total $ 43,201 Letters of Credit

Stockholders' Equity

Stockholders' Equity	6 Months Ended
Stockholders' Equity	Nov. 30, 2023
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Equity Plans On October 9, 2021, the Company’s Board of Directors approved two equity incentive plans, which the Company’s stockholders approved on January 20, 2022. The two plans consist of the 2022 Incentive Plan, previously referred to in the Company’s SEC filings as the 2021 Incentive Plan (the “Incentive Plan”), which provides for grants of various equity awards to the Company’s employees and consultants, and the 2022 Non-Employee Director Stock Plan previously referred to in the Company’s SEC filings as the 2021 Non-Employee Director Stock Plan (the “Director Plan” and, together with the Incentive Plan, the “Plans”), which provides for grants of restricted stock to non-employee directors and for deferral of cash and stock compensation if such deferral provisions are activated at a future date. As of November 30, 2023, the Company had issued awards for approximately 14.2 million shares of common stock of the Company (the “Common Stock”) under the plans. During the three and six months ended November 30, 2023 the Company recognized $4.8 million and $10.4 million in stock-based compensation. Restricted Stock Awards The following is a summary of the activity and balances for unvested restricted stock awards granted for the six months ended November 30, 2023: Number of Shares Weighted Average Grant Date Fair Value Per Share Outstanding as of May 31, 2023 380,955 $ 2.22 Granted 202,110 4.75 Vested (380,955) 2.22 Forfeited — — Outstanding as of November 30, 2023 202,110 $ 4.75 As of November 30, 2023, total remaining expense to be recognized related to these awards was $0.9 million and the weighted average remaining recognition period for the unvested awards was 0.9 years. Restricted Stock Units The following is a summary of the activity and balances for unvested restricted stock units granted for the six months ended November 30, 2023: Number of Shares Weighted Average Grant Date Fair Value Per Share Outstanding as of May 31, 2023 12,465,935 $ 2.53 Granted 1,564,400 7.38 Vested (5,377,778) 2.64 Forfeited (305,110) 2.43 Outstanding as of November 30, 2023 8,347,447 $ 3.42 As of November 30, 2023, total remaining expense to be recognized related to these awards was $29.2 million and the weighted average remaining recognition period for the unvested awards was 2.1 years. Public Offering During the six months ended November 30, 2023, the Company began issuing and selling common stock under an "at the market" sale agreement pursuant to which the Company may sell up to $125 million in aggregate proceeds of Common Stock. As of November 30, 2023, the Company has sold approximately 14.8 million shares. Net proceeds, less commission and legal fees of approximately $3.3 million, were approximately $97.9 million. Extinguishment of Noncontrolling Interest On August 31, 2023, pursuant to the joint venture agreement, the minority partner in 1.21 Gigawatts LLC exercised the option to exchange their interest in the joint venture for approximately 1.5 million shares for a value of $9.8 million of the Company’s common stock. The Company is now the sole member of 1.21 Gigawatts LLC and will report all activity as attributable to the Company in future periods.

Leases

Leases	6 Months Ended
Leases	Nov. 30, 2023
Leases [Abstract]
Leases	Leases The Company enters into leases for equipment, office space, and land. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company presents operating and finance right of use assets and liabilities separately on the balance sheet as their own captions, with the liabilities split between current and long-term, respectively. Components of lease expense were as follows (in thousands): Three Months Ended Six Months Ended November 30, 2023 November 30, 2022 November 30, 2023 November 30, 2022 Operating lease cost: Operating lease expense $ 2,486 $ 82 $ 2,970 $ 164 Short-term lease expense 80 105 207 223 Total operating lease cost 2,566 187 3,177 387 Finance lease expense: Amortization of right-of-use assets (1) 10,860 735 16,490 1,033 Interest on lease liabilities 1,659 183 2,741 292 Total finance lease cost 12,519 918 19,231 1,325 Variable lease cost 40 — 77 — Sublease Income (24) (30) (47) (58) Total net lease cost $ 15,101 $ 1,075 $ 22,438 $ 1,654 (1) Amortization of right-of-use assets is included within depreciation expense, and is recorded within cost of revenues and selling, general and administrative expense in the condensed consolidated statements of operations. The following table represents the Company’s future minimum lease payments as of November 30, 2023: Operating Leases Finance Leases Total Remainder of FY24 $ 6,605 $ 24,341 $ 30,946 FY25 13,562 47,340 60,902 FY26 14,031 12,108 26,139 FY27 14,166 188 14,354 FY28 14,360 180 14,540 Thereafter 12,441 89,944 102,385 Total lease payments 75,165 174,101 249,266 Less: imputed interest (13,954) (94,548) (108,502) Total lease liabilities 61,211 79,553 140,764 Less: Current portion of lease liability (8,887) (42,805) (51,692) Long-term portion of lease liability $ 52,324 $ 36,748 $ 89,072 Supplemental cash flow and other information related to leases is as follows: Six Months Ended November 30, 2023 November 30, 2022 Weighted-average years remaining (in years): Finance leases 5.5 years 28.6 years Operating leases 5.7 years 3.9 years Weighted-average discount rate: Finance leases 8.8 % 8.0 % Operating leases 7.9 % 12.5 %
Leases	Leases The Company enters into leases for equipment, office space, and land. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company presents operating and finance right of use assets and liabilities separately on the balance sheet as their own captions, with the liabilities split between current and long-term, respectively. Components of lease expense were as follows (in thousands): Three Months Ended Six Months Ended November 30, 2023 November 30, 2022 November 30, 2023 November 30, 2022 Operating lease cost: Operating lease expense $ 2,486 $ 82 $ 2,970 $ 164 Short-term lease expense 80 105 207 223 Total operating lease cost 2,566 187 3,177 387 Finance lease expense: Amortization of right-of-use assets (1) 10,860 735 16,490 1,033 Interest on lease liabilities 1,659 183 2,741 292 Total finance lease cost 12,519 918 19,231 1,325 Variable lease cost 40 — 77 — Sublease Income (24) (30) (47) (58) Total net lease cost $ 15,101 $ 1,075 $ 22,438 $ 1,654 (1) Amortization of right-of-use assets is included within depreciation expense, and is recorded within cost of revenues and selling, general and administrative expense in the condensed consolidated statements of operations. The following table represents the Company’s future minimum lease payments as of November 30, 2023: Operating Leases Finance Leases Total Remainder of FY24 $ 6,605 $ 24,341 $ 30,946 FY25 13,562 47,340 60,902 FY26 14,031 12,108 26,139 FY27 14,166 188 14,354 FY28 14,360 180 14,540 Thereafter 12,441 89,944 102,385 Total lease payments 75,165 174,101 249,266 Less: imputed interest (13,954) (94,548) (108,502) Total lease liabilities 61,211 79,553 140,764 Less: Current portion of lease liability (8,887) (42,805) (51,692) Long-term portion of lease liability $ 52,324 $ 36,748 $ 89,072 Supplemental cash flow and other information related to leases is as follows: Six Months Ended November 30, 2023 November 30, 2022 Weighted-average years remaining (in years): Finance leases 5.5 years 28.6 years Operating leases 5.7 years 3.9 years Weighted-average discount rate: Finance leases 8.8 % 8.0 % Operating leases 7.9 % 12.5 %

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Nov. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Energy Commitment The Company also has a minimum commitment of approximately $89.2 million related to the energy services agreement for its Jamestown, North Dakota co-hosting facility with a remaining term of approximately 3.2 years as of November 30, 2023. Claims and Litigation From time to time, the Company may be involved in litigation relating to claims arising out of operations in the normal course of business. On August 12, 2023, a putative securities class action complaint, captioned McConnell v. Applied Digital Corporation, Wesley Cummins and David Rench , No. 3:23-cv-1805, was filed in the U.S. District Court for the Northern District of Texas, Dallas Division against Applied Digital Corporation (the “Company”) and two of its officers, Chief Executive Officer Wesley Cummins and Chief Financial Officer David Rench, asserting violations of Sections 10(b) and 20(a) of the Securities Exchange Act. The complaint alleges that the defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, the complaint alleges that the Company overstated the profitability of its datacenter hosting business and its ability to successfully transition into a low-cost cloud services provider and that the Company’s board of directors was not “independent” within the meaning of NASDAQ listing rules. On November 15, 2023, a putative securities complaint, captioned Robert Weich v. Wes Cummins, Chuck Hastings, Kelli McDonald, Douglas Miller, Virginia Moore, and Richard Nottenburg, No. A-23-881629-C, was filed in the U.S. District Court for Clark County, Nevada against certain members of Applied Digital Corporation’s Board of Directors and two of its officers, Chief Executive Officer Wesley Cummins and Chief Financial Officer David Rench, asserting breaches of fiduciary duties and unjust enrichment from April 2022 through the present. The complaint alleges that the defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, the complaint alleges that the Company overstated the profitability of its datacenter hosting business and its ability to successfully transition into a low-cost cloud services provider and that the Company’s board of directors was not “independent” within the meaning of NASDAQ listing rules. The Company is unable to estimate a range of loss, if any, that could result were there to be an adverse final decision in this action. If an unfavorable action were to occur, it is possible that the impact could be material to the Company’s results of operations in the period(s) in which any such outcome becomes probable and estimable. As of November 30, 2023, there were no other pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of the Company’s consolidated operations. There are also no legal proceedings in which any of the Company’s management or affiliates is an adverse party or has a material interest adverse to the Company’s interest. Settlement of Potential Claim During the second quarter of fiscal year 2024, the Company entered into a settlement agreement with respect to employment-related claims by a former executive. The terms of the settlement included payment to the claimant of $2.3 million, which is included in Loss on legal settlement on our condensed consolidated statements of operations.

Business Segments

Business Segments	6 Months Ended
Business Segments	Nov. 30, 2023
Segment Reporting [Abstract]
Business Segments	Business Segments Revenue by segment (excluding HPC hosting as that segment has no revenue) was as follows (in thousands): Three Months Ended Six Months Ended November 30, 2023 November 30, 2022 November 30, 2023 November 30, 2022 Datacenter hosting segment $ 37,753 $ 12,340 $ 71,925 $ 19,264 Cloud services segment 4,450 — 6,602 — Total revenue $ 42,203 $ 12,340 $ 78,527 $ 19,264 Segment profit (loss) and a reconciliation to net loss before income tax expenses is as follows (in thousands): Three Months Ended Six Months Ended November 30, 2023 November 30, 2022 November 30, 2023 November 30, 2022 Segment Profit (Loss): Datacenter hosting segment $ 10,846 $ (14,236) $ 19,804 $ (15,101) Cloud services segment (11,719) — (19,129) — HPC hosting segment (908) — (1,662) — Total segment loss (1,781) (14,236) (987) (15,101) Other (1) (6,393) (12,462) (14,613) (15,785) Interest expense, net 2,355 364 4,430 709 Loss on debt extinguishment — — 2,353 94 Net loss before income tax expenses $ (10,529) $ (27,062) $ (22,383) $ (31,689) (1) Other includes corporate related items not allocated to reportable segments. We also provide the following additional segment disclosures (in thousands): Three Months Ended Six Months Ended November 30, 2023 November 30, 2022 November 30, 2023 November 30, 2022 Depreciation and amortization: Datacenter hosting segment $ 4,365 $ 1,568 $ 7,564 $ 2,692 Cloud services segment 8,782 — 13,290 — HPC hosting segment 184 — 311 — Other (1) 93 — 119 12 Total depreciation and amortization $ 13,424 $ 1,568 $ 21,284 $ 2,704 (1) Other includes corporate related items not allocated to reportable segments. Information on segment assets and a reconciliation to consolidated assets are as follows (in thousands): November 30, 2023 May 31, 2023 Datacenter hosting segment $ 232,747 $ 224,447 Cloud services segment 166,536 3,127 HPC hosting segment 54,748 10,949 Total segment assets 454,031 238,523 Other (1) 26,623 25,434 Total assets $ 480,654 $ 263,957 (1) Other includes corporate related items not allocated to reportable segments.

Earnings Per Share

Earnings Per Share	6 Months Ended
Earnings Per Share	Nov. 30, 2023
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic net income (loss) per share (“EPS”) of common stock is computed by dividing the Company’s net earnings (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted EPS reflects the potential dilution that could occur if the securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Potentially dilutive securities are excluded from the computation of diluted net loss per share as their inclusion would be anti-dilutive. The table below shows the calculation for earnings per share: Three Months Ended Six Months Ended November 30, 2023 November 30, 2022 November 30, 2023 November 30, 2022 Net loss $ (10,529) $ (26,750) $ (22,383) $ (31,409) Net loss attributable to noncontrolling interest — (133) (397) (261) Net loss attributable to Applied Digital Corporation $ (10,529) $ (26,617) $ (21,986) $ (31,148) Basic and diluted net loss per share attributable to Applied Digital Corporation $ (0.10) $ (0.28) $ (0.21) $ (0.33) Basic and diluted weighted average number of shares outstanding 109,663,030 93,422,427 105,067,375 93,263,266

Subsequent Events

Subsequent Events	6 Months Ended
Subsequent Events	Nov. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events At-The-Market Common Stock Offering The Company completed sales of common stock under the “at the market” common stock sale agreement dated June 26, 2023. The Company sold approximately 4.2 million shares subsequent to November 30, 2023. Net proceeds from these sales, less commission fees of approximately $0.7 million, are approximately $23.1 million. Indemnification Agreements On January 13, 2024, the Company entered into an individual Indemnification Agreement with each member of its Board of Directors. The Indemnification Agreements generally provide that the Company will indemnify the indemnitees, to the fullest extent permitted by applicable law, against liabilities that may arise by reason of their status with, or service to, the Company. The Indemnification Agreements also generally provide that the Company advance expenses incurred by the indemnitees as a result of any proceeding related to such matters. Conditional Agreement On January 15, 2024, the Company entered into a conditional agreement to provide HPC datacenter capacity at its Ellendale, North Dakota campus, subject to finalization of definitive lease documents. The conditional agreement is for a total of 100 MWs for a term of 10 years, with a total value of approximately $2.2 billion over such 10 year term. The conditional agreement is conditioned upon each party securing satisfactory financing for the completion of construction, with the ability of each party to terminate within 45 days, without penalty, if the condition is not satisfied. Other Agreements Subsequent to November 30, 2023, the Company entered into three additional agreements for services in our cloud services and datacenter hosting segments totaling a combined $104.4 million over a weighted average term of 32 months.

Basis of Presentation and Sig_2

Basis of Presentation and Significant Accounting Policies (Policies)	6 Months Ended
	Nov. 30, 2023
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying interim unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"), including the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in the Company's annual consolidated financial statements on Form 10-K have been condensed or omitted. The condensed consolidated balance sheet as of May 31, 2023 has been derived from the audited consolidated financial statements as of that date, but does not include all disclosures required for audited annual financial statements. In the Company’s opinion, all necessary adjustments have been made for the fair presentation of the results of the interim periods presented. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year. For further information, please refer to and read these interim unaudited condensed consolidated financial statements in conjunction with the Company's audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 2023 filed with the SEC on August 2, 2023.
Significant Accounting Policies and Use of Estimates	Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ significantly from those estimates. The most significant accounting estimates inherent in the preparation of the Company’s financial statements include estimates of the valuation allowance associated with the Company’s deferred tax assets.
Revenue Recognition	Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification 606, Revenue from Contracts with Customers. Datacenter Hosting Revenue The Company provides energized space to customers who locate their hardware within the Company’s co-hosting facility. All datacenter hosting performance obligations are achieved simultaneously by providing the hosting environment for the customers’ operations. Customers pay a fixed rate to the Company in exchange for a managed hosting environment supported by customer-provided equipment. Revenue is recognized based on the contractual fixed rate, net of any credits for non-performance, over the term of the agreements. Any ancillary revenue for maintenance or installation services is at a point in time when the maintenance or installation service is complete. As these services are directly attributable to the Company’s datacenter hosting service, this revenue is captured within the datacenter hosting revenue caption in our condensed consolidated statements of operations. Customer contracts include advance payment terms. All advanced service payments are recorded as deferred revenue and are recognized as revenue once the related service is provided. Cloud Services Revenue
Segments	Segments The Company has identified three reportable segments: cloud services (“Cloud services”), high-performance compute hosting (“HPC hosting”), and datacenter hosting (“Datacenter hosting”). The Company’s chief operating decision-maker evaluates performance, makes operating decisions and allocates resources on both a consolidated basis and on the basis of these three reportable segments. Intercompany transactions between segments are excluded for management reporting purposes. The Datacenter hosting segment operates datacenters to provide energized space to crypto mining customers. Customer-owned hardware is installed in the Company’s facilities and the Company provides operational and maintenance services for a fixed fee. The Cloud services segment operates through our Sai Computing brand and provides cloud services to customers, such as artificial intelligence and machine learning developers, to develop their advanced products. Customers pay a fixed rate to the Company in exchange for a managed hosting environment supported by Company-provided equipment. The HPC hosting segment designs, builds, and operates datacenters which are designed to support high-compute applications using advanced and sophisticated infrastructures to provide services to customers.
Recent Accounting Pronouncements	Recent Accounting Pronouncements
Reclassifications	Reclassifications We have reclassified certain prior period revenue amounts from datacenter hosting revenue to related party datacenter hosting revenue on our condensed consolidated statements of operations. We have also reclassified amounts from accounts payable and accrued expenses and prepaid expenses and other current assets to accounts payable, accrued expenses, prepaid expenses, and other current assets as well as from customer deposits and deferred revenue to the associated related party caption lines and from prepaid expenses and other current assets to other assets in our condensed consolidated balance sheets to conform to our current period presentation. Lastly, we have reclassified interest income from selling, general and administrative to interest expense, net in our condensed consolidated statement of operations to conform to our current period presentation. These reclassifications had no impact on reported net income, cash flows, or total assets and liabilities.

Basis of Presentation and Sig_3

Basis of Presentation and Significant Accounting Policies (Tables)	6 Months Ended
	Nov. 30, 2023
Accounting Policies [Abstract]
Schedule of Cash, Cash Equivalents and Restricted Cash	Cash, cash equivalents, and restricted cash within the consolidated balance sheets that are included in the consolidated statements of cash flows as of November 30, 2023 and May 31, 2023 were as follows (in thousands): November 30, 2023 May 31, 2023 Net Cash & Equivalents $ 9,217 $ 28,999 Restricted Cash 25,416 14,575 Total Cash & Cash Equivalents $ 34,633 $ 43,574

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
Property and Equipment (Tables)	Nov. 30, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consisted of the following as of November 30, 2023, and May 31, 2023 (in thousands): Estimated Useful Life November 30, May 31, Electric generation and transformers 15 years $ 13,169 $ 4,655 Other equipment and fixtures 5 years - 7 years 5,074 1,684 Construction in progress 70,846 106,226 Information systems and software 5 years 41,295 21,173 Land and building Land 6,213 2,152 Land improvements 15 years 1,391 1,293 Building 39 years 129,815 63,350 Leasehold improvements 3 years - 7 years 468 — Total cost of property and equipment 268,271 200,533 Accumulated depreciation (9,763) (4,940) Property and equipment, net $ 258,508 $ 195,593

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	6 Months Ended
Revenue from Contracts with Customers (Tables)	Nov. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedules of Concentration of Risk, by Risk Factor	Below is a summary of the Company’s revenue concentration by major customers for the three and six months ended November 30, 2023 and 2022, respectively. Three Months Ended November 30, Six Months Ended November 30, 2023 2022 2023 2022 Customer A 70 % — % 69 % — % Customer B — % 27 % — % 22 % Customer C — % 33 % — % 34 % Customer D — % 16 % — % 18 % Customer E — % 13 % — % 14 % Customer F — % 12 % — % 13 % Customer G 11 % — % — % — %
Schedule of Deferred Revenue	Changes in the Company's deferred revenue balances for the six months ended November 30, 2023 and 2022, respectively, are shown in the following tables (in thousands): Six Months Ended November 30, 2023 November 30, 2022 Balance, beginning of period $ 48,692 $ 3,877 Advance billings 81,839 44,646 Revenue recognized (78,527) (19,264) Other adjustments — 135 Less: Related party balances (1,953) (1,639) Balance, end of period $ 50,051 $ 27,755
Schedule of Customer Deposits	Changes in the Company's customer deposits balances for the six months ended November 30, 2023 and 2022, respectively, are shown in the following table (in thousands): Six Months Ended November 30, 2023 November 30, 2022 Balance, beginning of period $ 36,370 $ 9,524 Customer deposits received 4,274 15,300 Customer deposits refunded — — Other adjustments — (135) Less: Related party balances (3,811) (1,940) Balance, end of period $ 36,833 $ 22,749

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
Related Party Transactions (Tables)	Nov. 30, 2023
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	The following table illustrates related party revenue for the three and six months ended November 30, 2023 and November 30, 2022 (in thousands): Three Months Ended November 30, Six Months Ended November 30, 2023 2022 2023 2022 Customer D* $ 1,986 $ 1,996 $ 4,319 $ 3,446 Customer E** $ 1,648 $ 1,596 $ 3,500 $ 2,732 * Customer D is a subsidiary of an entity which is deemed to beneficially own over 5% of the Company's outstanding common stock ** Customer E is 60% owned by an individual who is deemed to beneficially own over 5% of the Company's outstanding common stock The following table illustrates related party deferred revenue and deposits balances as of November 30, 2023 and May 31, 2023 (in thousands): Customer D balances as of Customer E balances as of November 30, 2023 May 31, 2023 November 30, 2023 May 31, 2023 Deferred revenue $ 1,470 $ 1,474 $ 483 $ 50 Customer Deposits $ 2,450 $ 2,450 $ 1,361 $ 1,361 Three Months Ended November 30, Six Months Ended November 30, 2023 2022 2023 2022 Sublease Income $ 24 $ 30 $ 47 $ 58

Debt (Tables)

Debt (Tables)	6 Months Ended
Debt (Tables)	Nov. 30, 2023
Debt Disclosure [Abstract]
Schedule of Long-Term Debt Instruments	Long-term debt consisted of the following components (in thousands): Interest Rate Maturity Date November 30, 2023 May 31, 2023 Starion term loan 6.50% July 25, 2027 $ 11,428 $ 12,786 Vantage Garden City loan 6.15% April 26, 2028 13,427 10,074 Starion Ellendale loan 7.48% February 3, 2028 17,974 19,728 Other long-term debt 372 354 Deferred financing costs, net of amortization (421) (3,012) Less: Current portion of term loan (9,279) (7,950) Long-term debt, net $ 33,501 $ 31,980
Schedule of Maturities of Long-Term Debt	Below is a summary of the remaining principal payments due over the life of the term loans as of November 30, 2023 (in thousands): Remainder of FY24 $ 4,645 FY25 9,768 FY26 10,441 FY27 11,150 FY28 7,197 Total $ 43,201

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
Stockholders' Equity (Tables)	Nov. 30, 2023
Equity [Abstract]
Schedule of Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity	The following is a summary of the activity and balances for unvested restricted stock awards granted for the six months ended November 30, 2023: Number of Shares Weighted Average Grant Date Fair Value Per Share Outstanding as of May 31, 2023 380,955 $ 2.22 Granted 202,110 4.75 Vested (380,955) 2.22 Forfeited — — Outstanding as of November 30, 2023 202,110 $ 4.75 The following is a summary of the activity and balances for unvested restricted stock units granted for the six months ended November 30, 2023: Number of Shares Weighted Average Grant Date Fair Value Per Share Outstanding as of May 31, 2023 12,465,935 $ 2.53 Granted 1,564,400 7.38 Vested (5,377,778) 2.64 Forfeited (305,110) 2.43 Outstanding as of November 30, 2023 8,347,447 $ 3.42

Leases (Tables)

Leases (Tables)	6 Months Ended
Leases (Tables)	Nov. 30, 2023
Leases [Abstract]
Schedule Of Components Of Lease Expense, Supplemental Cash Flow Information And Other Information	Components of lease expense were as follows (in thousands): Three Months Ended Six Months Ended November 30, 2023 November 30, 2022 November 30, 2023 November 30, 2022 Operating lease cost: Operating lease expense $ 2,486 $ 82 $ 2,970 $ 164 Short-term lease expense 80 105 207 223 Total operating lease cost 2,566 187 3,177 387 Finance lease expense: Amortization of right-of-use assets (1) 10,860 735 16,490 1,033 Interest on lease liabilities 1,659 183 2,741 292 Total finance lease cost 12,519 918 19,231 1,325 Variable lease cost 40 — 77 — Sublease Income (24) (30) (47) (58) Total net lease cost $ 15,101 $ 1,075 $ 22,438 $ 1,654 (1) Amortization of right-of-use assets is included within depreciation expense, and is recorded within cost of revenues and selling, general and administrative expense in the condensed consolidated statements of operations. Supplemental cash flow and other information related to leases is as follows: Six Months Ended November 30, 2023 November 30, 2022 Weighted-average years remaining (in years): Finance leases 5.5 years 28.6 years Operating leases 5.7 years 3.9 years Weighted-average discount rate: Finance leases 8.8 % 8.0 % Operating leases 7.9 % 12.5 %
Schedule Of Future Minimum Operating Lease Payments	The following table represents the Company’s future minimum lease payments as of November 30, 2023: Operating Leases Finance Leases Total Remainder of FY24 $ 6,605 $ 24,341 $ 30,946 FY25 13,562 47,340 60,902 FY26 14,031 12,108 26,139 FY27 14,166 188 14,354 FY28 14,360 180 14,540 Thereafter 12,441 89,944 102,385 Total lease payments 75,165 174,101 249,266 Less: imputed interest (13,954) (94,548) (108,502) Total lease liabilities 61,211 79,553 140,764 Less: Current portion of lease liability (8,887) (42,805) (51,692) Long-term portion of lease liability $ 52,324 $ 36,748 $ 89,072
Schedule Of Future Minimum Finance Lease Payments	The following table represents the Company’s future minimum lease payments as of November 30, 2023: Operating Leases Finance Leases Total Remainder of FY24 $ 6,605 $ 24,341 $ 30,946 FY25 13,562 47,340 60,902 FY26 14,031 12,108 26,139 FY27 14,166 188 14,354 FY28 14,360 180 14,540 Thereafter 12,441 89,944 102,385 Total lease payments 75,165 174,101 249,266 Less: imputed interest (13,954) (94,548) (108,502) Total lease liabilities 61,211 79,553 140,764 Less: Current portion of lease liability (8,887) (42,805) (51,692) Long-term portion of lease liability $ 52,324 $ 36,748 $ 89,072

Business Segments (Tables)

Business Segments (Tables)	6 Months Ended
Business Segments (Tables)	Nov. 30, 2023
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Revenue by segment (excluding HPC hosting as that segment has no revenue) was as follows (in thousands): Three Months Ended Six Months Ended November 30, 2023 November 30, 2022 November 30, 2023 November 30, 2022 Datacenter hosting segment $ 37,753 $ 12,340 $ 71,925 $ 19,264 Cloud services segment 4,450 — 6,602 — Total revenue $ 42,203 $ 12,340 $ 78,527 $ 19,264 We also provide the following additional segment disclosures (in thousands): Three Months Ended Six Months Ended November 30, 2023 November 30, 2022 November 30, 2023 November 30, 2022 Depreciation and amortization: Datacenter hosting segment $ 4,365 $ 1,568 $ 7,564 $ 2,692 Cloud services segment 8,782 — 13,290 — HPC hosting segment 184 — 311 — Other (1) 93 — 119 12 Total depreciation and amortization $ 13,424 $ 1,568 $ 21,284 $ 2,704 (1) Other includes corporate related items not allocated to reportable segments. Information on segment assets and a reconciliation to consolidated assets are as follows (in thousands): November 30, 2023 May 31, 2023 Datacenter hosting segment $ 232,747 $ 224,447 Cloud services segment 166,536 3,127 HPC hosting segment 54,748 10,949 Total segment assets 454,031 238,523 Other (1) 26,623 25,434 Total assets $ 480,654 $ 263,957 (1) Other includes corporate related items not allocated to reportable segments.
Schedule of Segment Profit and a Reconciliation to Net Income (Loss) Before Income Tax Expenses	Segment profit (loss) and a reconciliation to net loss before income tax expenses is as follows (in thousands): Three Months Ended Six Months Ended November 30, 2023 November 30, 2022 November 30, 2023 November 30, 2022 Segment Profit (Loss): Datacenter hosting segment $ 10,846 $ (14,236) $ 19,804 $ (15,101) Cloud services segment (11,719) — (19,129) — HPC hosting segment (908) — (1,662) — Total segment loss (1,781) (14,236) (987) (15,101) Other (1) (6,393) (12,462) (14,613) (15,785) Interest expense, net 2,355 364 4,430 709 Loss on debt extinguishment — — 2,353 94 Net loss before income tax expenses $ (10,529) $ (27,062) $ (22,383) $ (31,689) (1) Other includes corporate related items not allocated to reportable segments.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
Earnings Per Share (Tables)	Nov. 30, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The table below shows the calculation for earnings per share: Three Months Ended Six Months Ended November 30, 2023 November 30, 2022 November 30, 2023 November 30, 2022 Net loss $ (10,529) $ (26,750) $ (22,383) $ (31,409) Net loss attributable to noncontrolling interest — (133) (397) (261) Net loss attributable to Applied Digital Corporation $ (10,529) $ (26,617) $ (21,986) $ (31,148) Basic and diluted net loss per share attributable to Applied Digital Corporation $ (0.10) $ (0.28) $ (0.21) $ (0.33) Basic and diluted weighted average number of shares outstanding 109,663,030 93,422,427 105,067,375 93,263,266

Business and Organization (Deta

Business and Organization (Details)	6 Months Ended
Business and Organization (Details)	Nov. 30, 2023 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	3

Basis of Presentation and Sig_4

Basis of Presentation and Significant Accounting Policies - Additional Information (Details)	6 Months Ended
	Nov. 30, 2023 segment
Accounting Policies [Abstract]
Number of reportable segments	3

Basis of Presentation and Sig_5

Basis of Presentation and Significant Accounting Policies - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Nov. 30, 2023	May 31, 2023
Accounting Policies [Abstract]
Net Cash & Equivalents	$ 9,217	$ 28,999
Restricted cash	25,416	14,575
Total Cash & Cash Equivalents	$ 34,633	$ 43,574

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Nov. 30, 2023	May 31, 2023
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	$ 268,271	$ 200,533
Accumulated depreciation	(9,763)	(4,940)
Property and equipment, net	$ 258,508	195,593
Electric generation and transformers
Property, Plant and Equipment [Line Items]
Estimated Useful Life	15 years
Total cost of property and equipment	$ 13,169	4,655
Other equipment and fixtures
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	$ 5,074	1,684
Other equipment and fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Other equipment and fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	7 years
Construction in progress
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	$ 70,846	106,226
Information systems and software
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Total cost of property and equipment	$ 41,295	21,173
Land
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	$ 6,213	2,152
Land improvements
Property, Plant and Equipment [Line Items]
Estimated Useful Life	15 years
Total cost of property and equipment	$ 1,391	1,293
Building
Property, Plant and Equipment [Line Items]
Estimated Useful Life	39 years
Total cost of property and equipment	$ 129,815	63,350
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	$ 468	$ 0
Leasehold improvements \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Leasehold improvements \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	7 years

Property and Equipment - Narrat

Property and Equipment - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation	$ 2.6	$ 0.8	$ 4.9	$ 1.7

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Schedule of Concentration Risk by Major Customer (Details) - Customer Concentration Risk - Revenue Benchmark	3 Months Ended		6 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Customer A
Concentration Risk [Line Items]
Concentration risk	70%	0%	69%	0%
Customer B
Concentration Risk [Line Items]
Concentration risk	0%	27%	0%	22%
Customer C
Concentration Risk [Line Items]
Concentration risk	0%	33%	0%	34%
Customer D
Concentration Risk [Line Items]
Concentration risk	0%	16%	0%	18%
Customer E
Concentration Risk [Line Items]
Concentration risk	0%	13%	0%	14%
Customer F
Concentration Risk [Line Items]
Concentration risk	0%	12%	0%	13%
Customer G
Concentration Risk [Line Items]
Concentration risk	11%	0%	0%	0%

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Narrative (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-01 $ in Millions	Nov. 30, 2023 USD ($)
Revenue, Major Customer [Line Items]
Revenue, remaining performance obligation, amount	$ 52
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Schedule of Deferred Revenue (Details) - USD ($) $ in Thousands	6 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Movement in Deferred Revenue [Roll Forward]
Balance, beginning of period	$ 48,692	$ 3,877
Advance billings	81,839	44,646
Revenue recognized	(78,527)	(19,264)
Other adjustments	0	135
Related Party
Movement in Deferred Revenue [Roll Forward]
Less: Related party balances	(1,953)	(1,639)
Nonrelated Party
Movement in Deferred Revenue [Roll Forward]
Balance, end of period	$ 50,051	$ 27,755

Revenue from Contracts with C_6

Revenue from Contracts with Customers - Schedule of Customer Deposits (Details) - USD ($) $ in Thousands	6 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
Customer Deposits [Roll Forward]
Balance, beginning of period	$ 36,370	$ 9,524
Customer deposits received	4,274	15,300
Customer deposits refunded	0	0
Other adjustments	0	(135)
Related Party
Customer Deposits [Roll Forward]
Less: Related party balances	(3,811)	(1,940)
Nonrelated Party
Customer Deposits [Roll Forward]
Balance, end of period	$ 36,833	$ 22,749

Related Party Transactions - Re

Related Party Transactions - Related Party Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022	May 31, 2023	May 31, 2022
Related Party Transaction [Line Items]
Total revenue	$ 42,203	$ 12,340	$ 78,527	$ 19,264
Deferred revenue					$ 48,692	$ 3,877
Customer D
Related Party Transaction [Line Items]
Related party ownership interests			5%
Customer D \| Related Party
Related Party Transaction [Line Items]
Total revenue	1,986	1,996	$ 4,319	3,446
Deferred revenue	1,470		1,470		1,474
Customer Deposits	2,450		$ 2,450		2,450
Customer E
Related Party Transaction [Line Items]
Related party ownership interests			60%
Customer E \| Related Party
Related Party Transaction [Line Items]
Total revenue	1,648	$ 1,596	$ 3,500	$ 2,732
Deferred revenue	483		483		50
Customer Deposits	$ 1,361		$ 1,361		$ 1,361
Customer E by Individual
Related Party Transaction [Line Items]
Related party ownership interests			5%

Related Party Transactions - Su

Related Party Transactions - Sublease Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Related Party Transaction [Line Items]
Sublease Income	$ 24	$ 30	$ 47	$ 58
Related Party
Related Party Transaction [Line Items]
Sublease Income	$ 24	$ 30	$ 47	$ 58

Related Party Transactions - B.

Related Party Transactions - B. Riley Loan (Details) - B. Riley Loan and Security Agreement - Medium-term Notes $ in Millions	6 Months Ended
	Nov. 30, 2023 USD ($)
Related Party Transaction [Line Items]
Borrowings of related party debt	$ 8
Repayment of related party debt	44.5
Interest expense associated with loan	0.5
Total remaining unused capacity	$ 5.5

Debt - Schedule of Long-Term De

Debt - Schedule of Long-Term Debt (Details) - Medium-term Notes - USD ($) $ in Thousands	Nov. 30, 2023	May 31, 2023
Debt Instrument [Line Items]
Long-term debt, gross	$ 43,201
Deferred financing costs, net of amortization	(421)	$ (3,012)
Less: Current portion of term loan	(9,279)	(7,950)
Long-term debt, net	$ 33,501	31,980
Starion term loan
Debt Instrument [Line Items]
Interest rate	6.50%
Long-term debt, gross	$ 11,428	12,786
Vantage Garden City loan
Debt Instrument [Line Items]
Interest rate	6.15%
Long-term debt, gross	$ 13,427	10,074
Starion Ellendale loan
Debt Instrument [Line Items]
Interest rate	7.48%
Long-term debt, gross	$ 17,974	19,728
Other long-term debt
Debt Instrument [Line Items]
Long-term debt, gross	$ 372	$ 354

Debt - Schedule of Maturities o

Debt - Schedule of Maturities of Long-Term Debt (Details) - Medium-term Notes $ in Thousands	Nov. 30, 2023 USD ($)
Debt Instrument [Line Items]
Remainder of FY24	$ 4,645
FY25	9,768
FY26	10,441
FY27	11,150
FY28	7,197
Total	$ 43,201

Debt - Narrative (Details)

Debt - Narrative (Details) $ in Millions	Nov. 30, 2023 USD ($)
Letter of Credit
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity	$ 25.4

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) $ in Thousands		3 Months Ended	6 Months Ended
Stockholders' Equity - Narrative (Details) $ in Thousands	Aug. 31, 2023 USD ($) shares	Nov. 30, 2023 USD ($) shares	Nov. 30, 2023 USD ($) shares	Nov. 30, 2022 USD ($)	Oct. 09, 2021 plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equity incentive plans \| plan					2
Gross proceeds from sale			$ 125,000
Number of shares sold in transaction (in shares) \| shares			14,800,000
Payments of stock issuance costs			$ 3,300
Issuance of common stock			97,922	$ 0
Extinguishment of noncontrolling interest (in shares) \| shares	1,500,000
Stockholders’ Equity
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Extinguishment of noncontrolling interest	$ (9,800)		9,765
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock compensation expense		$ 29,200	$ 29,200
Unrecognized stock compensation expense, period for recognition			2 years 1 month 6 days
Restricted Stock Units (RSUs) And Restricted Stock Awards (RSAs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants to date (in shares) \| shares		14,200,000	14,200,000
Stock-based compensation recognized		$ 4,800	$ 10,400
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock compensation expense		$ 900	$ 900
Unrecognized stock compensation expense, period for recognition			10 months 24 days

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Restricted Stock Awards (Details) - Restricted Stock Awards	6 Months Ended
	Nov. 30, 2023 $ / shares shares
Number of Shares
Outstanding at beginning of period (in shares) \| shares	380,955
Granted (in shares) \| shares	202,110
Vested (in shares) \| shares	(380,955)
Forfeited (in shares) \| shares	0
Outstanding at end of period (in shares) \| shares	202,110
Weighted Average Grant Date Fair Value Per Share
Weighted average grant date fair value, outstanding at beginning of period (in dollars per share) \| $ / shares	$ 2.22
Granted (in dollars per share) \| $ / shares	4.75
Vested (in dollars per share) \| $ / shares	2.22
Forfeited (in dollars per share) \| $ / shares	0
Weighted average grant date fair value, outstanding at end of period (in dollars per share) \| $ / shares	$ 4.75

Stockholders' Equity - Schedu_2

Stockholders' Equity - Schedule of Restricted Stock Awards & Units (Details) - Restricted Stock Units (RSUs) - $ / shares	6 Months Ended
	Nov. 30, 2023	May 31, 2023
Number of Shares
Outstanding at beginning of period (in shares)	12,465,935
Granted (in shares)	1,564,400
Vested (in shares)	(5,377,778)
Forfeited (in shares)	(305,110)
Outstanding at end of period (in shares)	8,347,447
Weighted Average Grant Date Fair Value Per Share
Weighted average grant date fair value, outstanding at beginning of period (in dollars per share)	$ 3.42	$ 2.53
Granted (in dollars per share)	7.38
Vested (in dollars per share)	2.64
Forfeited (in dollars per share)	2.43
Weighted average grant date fair value, outstanding at end of period (in dollars per share)	$ 3.42

Leases - Components of Lease Ex

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Operating lease cost:
Operating lease expense	$ 2,486	$ 82	$ 2,970	$ 164
Short-term lease expense	80	105	207	223
Total operating lease cost	2,566	187	3,177	387
Finance lease expense:
Amortization of right-of-use assets	10,860	735	16,490	1,033
Interest on lease liabilities	1,659	183	2,741	292
Total finance lease cost	12,519	918	19,231	1,325
Variable lease cost	40	0	77	0
Sublease Income	(24)	(30)	(47)	(58)
Total net lease cost	$ 15,101	$ 1,075	$ 22,438	$ 1,654

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Nov. 30, 2023	May 31, 2023
Operating Leases
Remainder of FY24	$ 6,605
FY25	13,562
FY26	14,031
FY27	14,166
FY28	14,360
Thereafter	12,441
Total lease payments	75,165
Less: imputed interest	(13,954)
Total lease liabilities	61,211
Less: Current portion of lease liability	(8,887)	$ (320)
Long-term portion of lease liability	52,324	1,005
Finance Leases
Remainder of FY24	24,341
FY25	47,340
FY26	12,108
FY27	188
FY28	180
Thereafter	89,944
Total lease payments	174,101
Less: imputed interest	(94,548)
Total lease liabilities	79,553
Less: Current portion of lease liability	(42,805)	(5,722)
Long-term portion of lease liability	36,748	$ 8,334
Total
Remainder of FY24	30,946
FY25	60,902
FY26	26,139
FY27	14,354
FY28	14,540
Thereafter	102,385
Total lease payments	249,266
Less: imputed interest	(108,502)
Total lease liabilities	140,764
Less: Current portion of lease liability	(51,692)
Long-term portion of lease liability	$ 89,072

Leases - Schedule of Supplement

Leases - Schedule of Supplemental Cash Flow and Other Information (Details)	Nov. 30, 2023	Nov. 30, 2022
Weighted-average years remaining (in years):
Finance leases	5 years 6 months	28 years 7 months 6 days
Operating leases	5 years 8 months 12 days	3 years 10 months 24 days
Weighted-average discount rate:
Finance leases	8.80%	8%
Operating leases	7.90%	12.50%

Leases - Narrative (Details)

Leases - Narrative (Details) $ in Millions	Nov. 30, 2023 USD ($)
Lessee, Lease, Description [Line Items]
Operating lease, not yet commenced, minimum payments	$ 130.4
Minimum
Lessee, Lease, Description [Line Items]
Operating lease, not yet commenced, term of contract	2 years
Maximum
Lessee, Lease, Description [Line Items]
Operating lease, not yet commenced, term of contract	7 years

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) $ in Thousands		6 Months Ended
	Nov. 30, 2023 USD ($)	Nov. 30, 2023 USD ($)
Purchase Commitment, Excluding Long-Term Commitment [Line Items]
Service contract, term		3 years 2 months 12 days
Mediation Related To The Threatened Claim Of Sexual Harassment \| Settled Litigation \| Former Executive
Purchase Commitment, Excluding Long-Term Commitment [Line Items]
Settlement amount	$ 2,300
Energy Service
Purchase Commitment, Excluding Long-Term Commitment [Line Items]
Contractual obligation	$ 89,200	$ 89,200

Business Segments - Schedule of

Business Segments - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022	May 31, 2023
Segment Reporting Information [Line Items]
Total revenue	$ 42,203	$ 12,340	$ 78,527	$ 19,264
Total depreciation and amortization	13,424	1,568	21,284	2,704
Total assets	480,654		480,654		$ 263,957
Cloud services segment
Segment Reporting Information [Line Items]
Total revenue	4,450	0	6,602	0
Operating Segments
Segment Reporting Information [Line Items]
Total assets	454,031		454,031		238,523
Operating Segments \| Datacenter hosting segment
Segment Reporting Information [Line Items]
Total revenue	37,753	12,340	71,925	19,264
Total depreciation and amortization	4,365	1,568	7,564	2,692
Total assets	232,747		232,747		224,447
Operating Segments \| Cloud services segment
Segment Reporting Information [Line Items]
Total revenue	4,450	0	6,602	0
Total depreciation and amortization	8,782	0	13,290	0
Total assets	166,536		166,536		3,127
Operating Segments \| HPC hosting segment
Segment Reporting Information [Line Items]
Total revenue	0	0	0	0
Total depreciation and amortization	184	0	311	0
Total assets	54,748		54,748		10,949
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Total depreciation and amortization	93	$ 0	119	$ 12
Corporate, Non-Segment \| Other
Segment Reporting Information [Line Items]
Total assets	$ 26,623		$ 26,623		$ 25,434

Business Segments - Schedule _2

Business Segments - Schedule of Segment Profit and a Reconciliation to Net Income (Loss) Before Income Tax Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Segment Reporting Information [Line Items]
Total segment loss	$ (8,174)	$ (26,698)	$ (15,600)	$ (30,886)
Interest expense, net	2,355	364	4,430	709
Loss on extinguishment of debt	0	0	2,353	94
Net loss before income tax expenses	(10,529)	(27,062)	(22,383)	(31,689)
Operating Segments
Segment Reporting Information [Line Items]
Total segment loss	(1,781)	(14,236)	(987)	(15,101)
Operating Segments \| Datacenter hosting segment
Segment Reporting Information [Line Items]
Total segment loss	10,846	(14,236)	19,804	(15,101)
Operating Segments \| Cloud services segment
Segment Reporting Information [Line Items]
Total segment loss	(11,719)	0	(19,129)	0
Operating Segments \| HPC hosting segment
Segment Reporting Information [Line Items]
Total segment loss	(908)	0	(1,662)	0
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Other	$ (6,393)	$ (12,462)	$ (14,613)	$ (15,785)

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Earnings Per Share [Abstract]
Net loss	$ (10,529)	$ (26,750)	$ (22,383)	$ (31,409)
Net loss attributable to noncontrolling interest	0	(133)	(397)	(261)
Net loss attributable to Applied Digital Corporation	$ (10,529)	$ (26,617)	$ (21,986)	$ (31,148)
Basic net loss per share attributable to Applied Digital Corporation (in dollars per share)	$ (0.10)	$ (0.28)	$ (0.21)	$ (0.33)
Diluted net loss per share attributable to Applied Digital Corporation (in dollars per share)	$ (0.10)	$ (0.28)	$ (0.21)	$ (0.33)
Basic weighted average number of shares outstanding (in shares)	109,663,030	93,422,427	105,067,375	93,263,266
Diluted weighted average number of shares outstanding (in shares)	109,663,030	93,422,427	105,067,375	93,263,266

Subsequent Events (Details)

Subsequent Events (Details) $ in Thousands		1 Months Ended	2 Months Ended	3 Months Ended		6 Months Ended
Subsequent Events (Details) $ in Thousands	Jan. 15, 2024 USD ($) MW	Jan. 11, 2024 USD ($)	Jan. 16, 2024 USD ($) agreement	Nov. 30, 2023 USD ($)	Nov. 30, 2022 USD ($)	Nov. 30, 2023 USD ($)	Nov. 30, 2022 USD ($)
Subsequent Event [Line Items]
Gross proceeds from sale						$ 125,000
Payments of stock issuance costs						3,300
Proceeds from issuance of common stock, net of costs						97,922	$ 0
Revenue from agreements				$ 42,203	$ 12,340	78,527	19,264
Cloud services revenue
Subsequent Event [Line Items]
Revenue from agreements				$ 4,450	$ 0	$ 6,602	$ 0
Subsequent Event
Subsequent Event [Line Items]
Gross proceeds from sale		$ 4,200
Payments of stock issuance costs		700
Proceeds from issuance of common stock, net of costs		$ 23,100
Subsequent Event \| Cloud services revenue
Subsequent Event [Line Items]
Number of agreements \| agreement			3
Revenue from agreements			$ 104,400
Other agreements, weighted-average term			32 months
Subsequent Event \| Ellendale, North Dakota \| HPC hosting segment
Subsequent Event [Line Items]
Conditional agreement, megawatts provided \| MW	100
Conditional agreement, term of contract	10 years
Conditional agreement, payment to be received	$ 2,200,000
Conditional agreement, option to terminate	45 days