Applied Digital (APLD) 11 Oct 222023 Q1 Earnings call transcript

Good afternoon, and welcome to Applied Blockchain's First Fiscal Quarter 2023 Conference Call. My name is Paul and I will be your operator today.

Before this call, Applied Blockchain issued its financial results for the first quarter of fiscal 2023 ended August 31, 2022 in a press release, a copy of which will be furnished in a report on Form 10-Q filed with the SEC and will be available in the Investor Relations section of the company's website.

Joining us on today's call are Applied Blockchain's Chairman and CEO, Wes Cummins; and CFO, David Rench.

Following their remarks, we will open the call for questions.

Grampp Group Jeff brief make begin, statement. introductory we from will Gateway a Before Mr. proceed. please Grampp,

operator. you, Blockchain's conference quarter Applied everyone, fiscal XXXX Thank call. afternoon, first Good and welcome to

their making today uncertainties. be to begins Before and would securities statements may remarks, of involve some we're that a considered like number management statements remind formal under everyone law forward-looking we and risks

cause our factors caution results could a there of statements. which that to we events in materially actual number you those many result, control, are differ beyond As a are of described which forward-looking and from the

detailed disclaim and in after except forward-looking our required more statements obligation update to any and made to relating disclosures statements, and forward-looking are release made, to Securities public filings or circumstances occur undertaking For our that risks, statements or uncertainties events earnings with law. the forward-looking the We please reflect as the Commission. see date the assumptions Exchange by

prospectus. Commission financial uncertainties not and our encourage you descriptions disclosures detailed as filings well consider under the including business, GAAP We non-GAAP earnings the identified as measures carefully discuss uncertainties and applicable also you to released refer metrics as in to Exchange and read IPO will limited factors and and you our Securities these our circumstances, for variable risks other and of tables and but with We to our reconciliation disclosures risk our to metrics. caption

for section being in that via Securities I is Blockchain's available recorded the like visiting SEC sec.gov. the You call Applied and would made will link Investor Commission be a by free everyone remind website may Exchange Relations website. available and get Applied of filings replay Blockchain for to at this

Blockchain's I Wes and CEO, Wes? like turn Applied to Chairman to the Cummins. would over call Now,

our us fiscal Thanks, Thank call. for first good for Jeff, afternoon, everyone. joining you conference quarter and XXXX

the of in of coming at which high of range guidance $X.X in EBITDA with $X.X million to million of the a end Our $X.X to $X.X $X.X guidance loss. $X.X EBITDA solid at our of results quarter adjusted were our million adjusted million, coming with loss revenue for of and million favorably compares million

relative guidance of financial hosting model, execution which only a multiyear and and Our shareholders that out our our consistency reflects to the is on steady our provides performance with revenue basis. predictability contracted business

is and between North in We energize Garden total expected are will Dakota evaluating that capacity I bring the now drive a and data equipment center out of ended megawatt full Jamestown a our Jamestown expect data two Outside Also, which executing XX% remain These XX, the since operated currently Therefore, a City, everyone Jamestown, to our our in long-term site, cash our mind almost expected. facility the Dakota. for margin generation powering previously remind fiscal has facility want unexpected August, to dynamics high the our at our sustainable when next-generation operating flow we for laser-focused XXX that in keep our capacity reflect build our facilities Texas important to to sites, North did Ellendale, not to to of July XXXX results, as megawatts. during made megawatt XXX XXX quarter it megawatt of facility mid-XXXX, due first August facility the substation these August repairs in were quarter operating quarter been facility. disclosed at first on fiscal only most results of XXX and center failure company. contribution hosting

context is of to expect and EBITDA once annualized believe on to $XXX think of which out online, current to a fully contracted value. largest compelling already at adjusted Weather we the weather. in We're has million, I our is what approvals of been good North in about enterprise timing need run date, we capacity arriving. this approval Dakota all I factors be would agreements working prior and Dakota. is through to highlight Texas the regulatory like which energization, we process to risk While cold to multi-year rate but concrete North weather to quite in be pour and the extremely the regulatory

to so entire working commend especially Applied crews and I diligently Our this challenges to executing an the operations difficult supply personnel chain operating overall persistent team environment well happen. are and want amidst make with for inflation.

well our by entry to industry, items in Our curve team. high-performance ordering into advance experience and certain our stayed any team of long ourselves the delays on we avoid computing prided the the have ahead to lead-time meaningful related capabilities has of Since construction. hosting

walk my So, providing will I'm financials been pleased David our David? so turn been we've in to to unfortunately timelines. industry I now able execute before you call has closing meet through to that an well challenged over CFO, to that Rench, remarks. our the

Wes, and everyone. good you, Thank afternoon,

employees $X.X in the high equates Before I hosting brought million. providing XX% the online meaningful have quarters revenues was EBITDA, Adjusted an powering note North $X.X of profit, for will quarter for the first or the our of were from a attributable directly or has been share million, on the in first of for $X.X facility. did year fiscal first of to of $XXX,XXX a entirely first unexpected an weighted facility share and capacity of EBITDA guidance Wes fiscal for fiscal not million. to expected $X.X as was year-over-year XX.X the a phases in quarter and depreciation revenues and a which the costs and event. compares. for $XXX,XXX and non-GAAP fiscal August any as I fiscal measure, fiscal at of average the depreciation of operations million. million fiscal Revenues expense, count of Jamestown, amortization personnel to expenses hosting and our at revenue. of million of general facility first XX.X our of at first for loss to for would XXXX mentioned, $X.XX third million, the compares share our which in $X.X net generated quarter and the costs, Adjusted generate to Operating million which of million Dakota, working a loss based per of per which, year begin quarter $X like Hosting operations were like since of fourth million. at from $X.XX comparable quarter's to fully weighted stock-based hosting in average non-GAAP was million share million on due end adjusted Applied since selling, loss was Cost and Adjusted includes $X.X of were Blockchain a diluted ago of compensation Jamestown quarter the XXXX last of basic of million, quarter the $X.X in first consisting of failure of remarks, our the was we diluted Jamestown first the quarter was Note XX% not quarter fiscal substation $XXX,XXX $X.X amortization guidance quarter a range be $X.X XXXX expenses $X.X between energy were administrative call, equipment XXXX. basic the the continuing during favorably a the the $XXX,XXX in which my revenues, gross XXXX count facility. range that loss and we of made based diluted XXXX during of million, Repairs the were that, loss period, fiscal only and quarter $X.X measure, operating part $X.X to facility Net operated during about loss basic to million, expenses.

$XX.X our of on fiscal we $XX.X in and balance quarter and debt. equivalents with the million Lastly, in million cash first ended sheet, XXXX

first the their fiscal are the of CapEx to a commercially revenue, to upfront deposits which inflow in amounted arrangements major prepayments. of impact the deposits it build we timing million $XX.X upfront the no helps year benefit million contracts, million to is In in with as prepayments net us structure the and net that and for the collectively with $XX During our to due certain back funding over of with cash amortized we customers revenue but the XXXX, recognition, almost our first deferred flow of that in cash and centers. to customer needs customer data our received contract $X.X quarter incorporate company our cash

XXXX. We the quarter all common IPO also in a to as shares reminder, outstanding we stock outstanding. And XX.X preferred stock our April approximately converted with fully concurrent with our million ended

uncertainty we This as can a however, with not our turning guidance, give on quarter. and quarters decided have around expectations. be Now EBITDA energization two past do, want range to our to guidance due timing in of next for impact timing to explicit the facilities. dramatic transparent revenue new We to for an the of for the we have the have

which megawatt other second assuming revenue to of is full Any November, of ended the quarter, at expectation. revenue, capacity per $XX our of quarter capacity fiscal generate generate on our X.X rate about of our the approximately amount XXXX expect For times will is a site we energized Jamestown during that Jamestown it million at a remains basis.

possibly do megawatts soon to expect quarterly when QX as fiscal in That of We We future, as year. financial will completes announce resume are this the energized. summary. my guidance

the Now, for to I remarks. will Wes over closing call turn

David. you, Thank

for want it open cover goals we to initiatives and company. Before of to Q&A, couple a the I key our

November we we've year for ago the energizing almost we To multi-year which will put facilities to relates of should during as that out business Achievement goal our are speak. agreement. focused simply of We objective proposed contracted the two a which megawatts us would XXXX. us Meeting this this company and year. shareholders to up is rate. first the had executing have key Once this milestone need of vote the all no would on our quarters name same up $XXX at company give for about recent the data operational, on Applied several of run already XX this, model which been the of to Digital, capacity The lined annualized constructing Annual First, hosting next the and be three our calendar a change at major General on revenue. EBITDA we execute over capacity are next customers remaining achieve only million a standing XXX centers,

change power name that large broader require more applications. and computing reflect our that Our will serve customers services accurately business offerings

computing customer relating applications computing intelligence a to miners which current market large these artificial power applications base, larger processing, high include image and compromise our much we rendering, performance to see opportunity machine learning. While can Bitcoin pertaining graphics

Bitcoin miners, value generation in industries believe to from that demand While operating adjacent in capabilities robust continue we there still we revenue base and centers. to leverage see can building diversifying next our is expertise our data and

cost, and be are active I significant Glove can contracts to high various best best-in-class to returning leveraged assets in can power are of require performance computing cost keep to efficiency have use few with time in potential And we I locations provide, committed are our digital high when in megawatts cold are any with Ultimately, numerous to providing landscape. HPC our power access our infrastructure ultra-low megawatts, the infrastructure we a contemplating all We White having from that for needs customers and about the within application. performance sites of only our what and think Dakota. customers discussions reliable company's case needs North Service broader that potentially highest power. high hundreds amount ranging to and a computing assets. to build digital spend I of low stages what These

application is stop first but it mining, The there. won't Bitcoin

the and the take found time business will of. dedication I've position for HPC difficult excited believe a would to running allow as of complement area as turmoil, next team but We're application extremely possibly all a of base work. more industry. than business. strong to our like will the take To goes survive This our will in well, expect we early applications have will first a We're I your with thank many believe the to be us it's non-crypto company in close, not our this be will large have only we this ever our the We application early we our customer to advantage to I'm been clearly questions. a I future for hard pilot Operator? for month. to be happy second all and members scale If of and now an program what grow what learning a year. machine that could position be in

Thank Instructions] you. [Operator

with with Our Please first B. Lucas your proceed Riley is question question. Securities. from Pipes

exactly on Dakota regulatory very Is it bit related? with first you touch appreciate outlook regulatory operator Thank visibility delays near concrete touch with I I taking to much the What of on guidance. related? front on holding the full possible would you ERCOT cold. question. Thanks everyone. in things Texas. weather turning wanted the you some the it term And then right, afternoon that. appreciate good they're and the for my mentioned North bit and the in lack a there? on Is I color additional on up is a But state can of pouring

for work And Thank two much it continue on when So color days on concrete too how to pouring many concrete? left? you have very cold get your these you topics. does of do

the Lucas. appreciate Thanks I question.

first, one the load I in flexible the to of first through companies go the we're on Texas. So large program think

lot So recently progress. kind Texas a and past few parties to come actually September made there's February. on of We've been started in things more going I but a We've We've position of in we're the multiple multiple this get a those. that think had dealing back good in timeframe, in up on - roadblocks we we're with.

these -- Texas with it's in we parties. which WETT, entity in parties have Oncor working you all where kind is So it's it's of this West called of ERCOT, we're have interconnect three W-E-T-T we and and an and

of Texas. close don't But we of meetings gigawatts in in-person In I feeling I've of was areas. in with the about two XX something there, month. it but I applications them maybe CoinDesk certain there's in you've it getting I'm neighborhood think pretty this in optimistic if in and to have end fact, the know other seen seen almost publications,

of think projects that that to to wall one it or just can but going maybe you delayed something the has come see separate online, of two kind from against company of that because people other kind And like maybe of yourself ours. sell if so lot gigawatts I think I those a realistically, to a have are throwing they is people

an through from in So I of to I on were February. If kind think absolute that. it through case is early November think that do we I we're ways handicap first If part position of worst would could I staged when we quite does so. get a to at get get get site anywhere delayed a to say instead turned of really and this, about out, things be to we'll approvals what turn-ons the energize the full

amount So target. it's give still of want details. don't moving a huge to I a

concrete, really schedule on completed November year the able pouring into regulatory with XX. so but we I we there, having were think I but that last gave the we discussions to. same quite we we are we right discussions meaningful a year in -- and all of bodies the go bit that of In last about North and need we're Dakota, State were could

always to told from I time to XX good is be been by. think is natives what there kind of October, finished I've a try

only And And ten gating able probably we this flag be as pour, if one fast that did we're pour, we pouring we don't of again so of we pour goes start, until March get that's but once If pads the want or won't now. generally, get to the really April. factors. then I to it

with be but Dakota. us, that's winter. it of that is would one going the in construction to then in the deal cold We that's out but issues for case problem love so North maybe think the I And weather, slide a June. don't for until you to definitely

appreciate Texas construction That's very development Really on waiving while question A helpful. this you're follow-up the Are it. side. approval? you continuing regulatory

the we approval through. It's is a through it. confident regulatory issue don't it. feel a we've any think The wouldn't Yes. lot the timing. really through that process. a I largely to there's get been just We're matter - process in of there's It's I work approval. of

say XX% site. have the And mean, so would on complete I we're -- we I

to the we'll So ready we're be minute approved. that energize basically

are -- it. is question there. in And about given maybe out very bit that. then counterparty about And counterparties helpful. risk. Thank much counterparties correct a topic risk go you. who largest Thank in of you your your my it, you. today, speak the or three the industry you Can then kind four and for evaluating Got Thank my very call It's obviously how counterparty second on, stress the you environment? a

a that's question. think relevant I No, really

There that in that's North customer Bitmain operating company. site. are in largest our the now companies the investors right some that's is Dakota and other are So

been Dakota. largest our pools all Bitcoin Dakota. disclosed, course of I that's North one saying the mining which in is world, don't FXPool, our I is in one of counterparties. of So GMR mind Then of North of those confident customers feel one is the customers in in

think I turned time a own that is announced any as Bitcoin due you all or the others on have over think I'm the access the of problem they is far in a look the not with that it's call analysts a as do Marathon. all best balance I the We've this if industry. I debt think almost opinion piece lot well. the in to sheet. anything other is I best I have and we've for a certain outstanding publicly of counterparties, four a traded have plaguing think large massive industry. given have the like your about lot one access capital really a problem didn't it Marathon Lucas, into of capital over very They public price, miners the now. fast company lot relatively do And don't markets as of one And the better one the last years miners has obviously than which and at financing, industry. be other year But the They the think clean is of equipment that this the especially would but really amortizations of you

So I the but on I lot really in struggling them, because of monitor, that's mean a basis, companies there's almost it's that the feel something daily good and we exposures primary are that we a that industry. have about

Very helpful. and of really appreciate best Wes, your color luck.

Thanks.

Thank you.

proceed with Please Brendler question is with question. A. Davidson. Our Chris from next D. your

Hi. afternoon. Thanks, good

some Just on I competitive of bit little business, recent a just of more given the Lucas' overall constrained environment, just a of some follow-up questions amid guess hosting some even news demand may supplies. the be on there

So I'm sit just capacity? I to on you conditions challenging the more parsing of the out take mentioned in of to be to additional your some side curious, opportunity and able terms think you where advantage color demand

question. any don't Thanks We offer. for additional capacity the really now have right to

in So are We're market seeking - filed it's do. power actively capacity. the looking publicized customers of And sites stuff still additional about not some power there site. we're there's for well bankruptcy. We're location. there's course, It's out looking competitor the Good for good for that for good really one other same always at sites. location, we that

customer out in on again those. take many, the say of our basically this cost. reiterate, in of that there's the advantage power yet. here, in think I've spread just right? middle. and that's found anything business, of the side, will we're biggest there's we're purchasing focused side We're that biggest we're time we Then there's But all the part talked at a of moving offering that's a lease there. market and the lot contracting, lot properties we're power many about I to the the that other, spend our with and I'll lot I that's a looking of I distressed haven't other

I and sign a didn't lot of rate might whatever think contracts companies last or signed out it went variable year or contracts be.

just And good that kind so power very of assets in their have remote I'm that contracts. sites some don't seeing locations hosting

look. are a advantage good And I is and but continue know those of think don't in assets we're position to to there very still that. of so we're we'll that worth And distressed take much. pretty that we're I a lot But looking, seeing

As balance you in side. on quarter, sheet see of ourselves the think our the end the have especially kept fairly sheet at clean the industry, balance I we

it's of sure. been air No, for a breath fresh

Just a like. bit little confused

that and was, question talked is you So slightly opportunities much Bitcoin capacity? the larger, guess my space. than about bigger we And hosting economics last talked space chunks there I different an the about HPC, in I is the were think time HPC

sort toe HPC ones? getting you're of way some the is contracts big pursuing and not in maybe the are as of of as Bitcoin a So like your

this way. it view I So

I power think And Bitcoin given we spent and we the go with contracts has time getting to about a really said, lot leverage So good attractive of these like sites build out. on what how then focused us And that. really opportunity sites lot I a are in I do attractive think locations.

big XXX building So that obviously, we're beachhead, megawatts we've this got in Bitcoin.

other We I But expect not I think grow. that other that if there's times. assets attractive. for best is One, just applications to highest about of sites If Bitcoin. applications are at are to our diversification think continue use there's all our case

applications myself And on The plus For is of megawatt. largest megawatt. but some shareholder all HPC then like is it five is, plus per shareholders. we're revenue I I EBITDA think per look when seeing five of basis, times is me, megawatt the per the two, times a our the

the for but I this that So a perspective. large extremely as expect the us. take and in But is later I attractive expect based a market, XX% we this machine be application that and scale application sky do to definitely economic to from one this and say well here really is we GPU think position running but that's goes go XX% a then I key one it maybe something limit, maybe I wouldn't a potential this of year position that in be is it's a if attractive think But that in expand month. And we the more blend we'll be forward. an early a an as the pilot is is then have see as learning ways to

- the same the of And infrastructure think low Intel so AMD honestly. we significant we're can application out or spending on But power, if based NVIDIA that, some code be cost to time figure these amount time sites, about that a running you AMD, location, we're be cost GPUs, going the servers. based same we're ultra-low to going to run running when or

So for some going necessarily equipment ultra-low It's focused to on HPC. on infrastructure really that's cost helpful, no one's kind have Hopefully digital advantage of the us. more Chris.

No, sort struggling it's XX% super given helpful. gross expected. It's as Thanks power that that? for the question low color. are The really And that -- to mining a just run Should came cost just higher so rate? here -- one was, in quarter, also -- peers was is does of margin nice impacted quick given go the reduce was me numbers by I non-GAAP with. good that my from let that this question. profit see capacity or your at And

at didn't would Jamestown go our from can for staffed. can stays quarter, hour So the but fully lay month-to-month year The roughly over the fluctuate one We like I it bit we last thing reported, just we were and a it the off. point people quarter-to-quarter out that site, power change little same. a

that staff with we of there million because some the definite of gross basically was And $XX so line amount the million. run staff will in revenue margin versus the same $X.X inefficiency

there. So there's leverage some

much. so Thanks Great.

you. Thank

from Please is Company. and your Todaro proceed John Needham with with question. question next Our

of The continue concerns guys' issues that is to is from is going in can kind you kind Texas, forward? taking How viewpoint for push that closed it's moving say big regulatory how of the question. Texas something new I be kind your through? to it of or those Thanks are sites for my Great. -- market guess

No, I think don't Texas.

was and think perspective is bit our there pause to from work trying a the of a I then moving. machine and through

very Texas issue governor really Texas in had Texas has Everyone to been on think I I also been issues the forward. closed has very grid. but publicized think supportive. some was was very new moving sites last the XX, that don't the here has February any I So big way supportive, widely mean, of for has

there, that moving. stable don't the I So new to machine make think added. being body sites. Texas to definitely and just wants I large grid these regulatory loads think But the is the the sure think - is ERCOT there's is I close are

not go to got Okay, facility just doesn't And XX any through. XX, possibility there's are already just so really that that It down energizing really permitting in you. constructed, delay that bedrooms comes to confirm, right?

working the It's just time through process.

then HPC because those Bitcoin could is or HPC Dakotas And Okay, broadly, per it that mining? mining just capability facility to for this facility? in a contracted facility, with outfitted are Bitcoin over the the the being more noticed one bit versus little you of related context versus a great. little give completely just facility new bit more into cost to looks cost might the And megawatt I've it turning some there. like Is the additional ones. the second past

all something $XXX a of that on per specific know, seeing it's think the there lot other areas. other is megawatt the but million going for you're you John Is seeing more Bitcoin. don't about to news you're some be should I Maybe any that? in with wraps million cost that construction talk spending so just come $XXX items line that of that the kind in

In up pretty some a secondary on we some versus discount transformers been. have market purchased for we we're switchgear seeing significant the equipment recently that fact, show what

we'll in lower. think not be I if able to run line So that

you. Got

articles. Yes, relation media to in of those Okay. some yes,

be along far program the on contracted has the furthest that There's been guess then clear, that side. And great. so month that's just side. pilot and that to HPC on nothing done Okay, I could this be

Yes.

you still We'll connectivity, What higher we that but have. a tolerate with fiber program. pilot can to So Tier is data low a higher can on do will applications very we have focus environment a it like do good step be X take a for infrastructure environment. centers that cost further, latency need really somewhat to this other what latency than

with down doing machine the it's because so lot the significantly. partner potential our that bring them with doing to And we're people through a very working but cost to be learning exciting we'll of the of work has we're it or

but very it's early, So excited it. about

And as up we scale idea. and with hopefully to the bit this as so that a potential. scale we'll and up. pretty I'm have good have the then then later pretty in year really hopefully a larger this excited month early pilot little move 'XX We'll that

taking for it. Understood. and Got you Thank the quarter. congrats on guys questions my

Thanks, John.

Thank you.

is your Securities. Please of Mike proceed with next from question Our Grondahl Northland question.

Hi guys.

today, or of clarifying to In today? well pour couple from if of think what how North is as concrete day Dakota, a you questions. goes more everything end do have the do of Just you many days

the We're end be for like mean, shooting days, end shooting October. It forward that, right the all October. I could dealing of things rain well construction if could what goes there with outside, but you're we're maybe right. be here's of now

Got it.

a I weather. So the on you've got got little of bit cushion it. depending

A the we're out and generally to of really experience crews quickly. we mean, ton in this the our a going start that's knock start with Yes. I a been once done. of pretty groundwork lot position to

Sounds good.

of In have when would regulatory able good. Texas, when energize headaches, delays, been if Sounds these to do you sort not there Texas? were -- you

now to pretty first We would have of to now the and able been close November. to energize between

would be where So every through about those megawatts these, like XX.X you're can say to Jamestown will bring we online week I ramps, right? if be trying It week. in we per but work did would staged

by start and that's sooner, we the look later, wracked everything ready said, And have approval. what go it'll if to time we get like start we if can have should like. So we I to

go stuff. I except No, regulatory Fair. good. it mean sounds like to that's ready this for

Yes.

yes. And then -

Is the You four I incremental the you kind site, know early you're plate, guys fourth talk on XXX too for number have that it to fourth like? too. your megawatts looking project, about, what of know, a the does lot but or look

It is location good us. we a a maybe seeing someone looking little make site like attractive again site already of us. for shown being is else are And one of said, up I that's I'm to that lot assets that everything. early. those at has I like power, a I to said, bit cost mean find low very stable, We want a sure we're

instead. So that take it might form

Got it. Got it.

thanks Hi, Okay. guys.

Thanks.

Thank you.

Please from Craig with next with your Our question George question. proceed Hallum. is Sutton

of for you're more about are is a up your and hoping George. pipeline addition This companies commentary of Adam pipeline pipeline? was megawatts. making the on it HPC detail little taking Hi, in the you was on to Wes, few how my go-to-market types building there to I that you're encouraging thought I could megawatts that questions. that really how the for great. provide approaching Thanks XXX

Yes.

early hyperscalers from mean, I but educational So, the really X institutions to from is this world. days, discussions top in anywhere

of kind it's that and together. if work range broad talking is be seen really Adam these a comes I like to that to applications it's can how was But about, So and don't think get price hard on anyone offer can compete will we're encouraged infrastructure we locations be I'm we it that the can. very for the for I that the that us with to in. in we

high these the be some numbers if of but performance percent or and of operated And stuff going electricity. half equipment split - we've you you're would run we or at is still to working then running the running a of compute, some doing through, versus of you that, centers And actually amount that that these, electricity. to of XX/XX is those these out this data half control climate been we're AC. haven't kind through XX-plus power and and Just the significant when look

cool, use think would air can then if air provide climates we I cost the hard can HPC. we cool, with power compete so cost basis low and to of cold for then it anyone this lot for in with And just a that all if where we be also do can not

with X, change on great. any building forward approach to this going there thinking how and And you're opportunity construction. in site going there terms That's X, site this Is strategic with your of X opportunity?

there they're because big it's going there's could you've spend buildings looked that like at of these, So have, additional right steel be, now to cost if in on the time the kind structures.

to to talk working going over So would look right if I that needed, to look that's switch the early also then on be would applications you new we GPU in and that those, it's about it pretty to exactly like. modifications if think specifically what what for have decided teams build now, sites, like, but the

works look the new talk then up sites the let's and focused through make pilot what this - get and we'll pilot little sure bit like. scale a and ready Let's about more to be much

Great. Thanks guys.

you. Thank

Brown question Please with next proceed with question. Markets. Our Lake from is Rob Capital Street your

afternoon. Good

expected complete them point? at talk about into to do you Just expect sites, wanted CapEx the to what the remaining two need this put you to

have do David you that. let I'll

Yes.

on prepayments we're customers loans, required bank So finish capital the we'll sheet, collecting the in use to and we the the community have of balance from that CapEx. will cash some combination a

And I'll there. in add

point a point And So out complete draw experience - capital. started at to barely to had yet in have we've like Texas this we that's loan is construction always is haven't Texas. for the I that then – we that is XX% this

that's $XX from the that, we there so that the And we've for million construction. was that $X.X so million. bank million site with the was to in that experience Jamestown, we're Rob, up another same another -- about expand then $XX million $XX is But able once And operational, had million site. to had, $XX and

in So the able And $XX double be once size, $XX we're given starting go million. to Texas, we it's should million. then operational, to with

we used of So yet. that any haven't

when on we coming you as as prepays, site come site think sheet, think position Ellendale at cash debt in balance about for far we're that. goes, the the Texas customer So XX-ish XX side good for eventually plus in build the plus on the to a and in the

facility much got of CapEx one? And but basically, Texas CapEx the that the Dakota Okay. like CapEx, the got whole most you've you to go on feel then North pretty you've spent,

Yes.

Okay.

the been amount actually the been - - has a of amount there, right there's of fair switchgear, procurement it's building done. right? has to spent transformer fair The a procurement You're

there have you So right spent XX% probably now.

Okay.

Okay, that contract other it good. And some Dakota there? the your compared length us then now of the release a is How signed. you of what's I Power contract Could give sense the contract? said is to of you think in press North

talk about it's ever a don't year We pricing, but deal. it's very and pricing attractive five

Okay. it over. you. turn Thank I'll

you. Thank

is from Please Kevin next H.C. Our Wainwright. with of your proceed with question question. Dede

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comments. Cummins Thank our any closing to question-and-answer for the would like back you. This call I Wes turn now concludes to over session.

to for your for next interest Thank you, look to everyone operator. speaking and quarter. you Thanks forward participation and

conference. today's concludes This

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