Applied Digital (APLD) 10-K 29 Aug 22 2022 FY Annual report Financial data

Cover

Cover - USD ($) $ in Millions	12 Months Ended
	May 31, 2022	Aug. 25, 2022	Nov. 30, 2021
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	May 31, 2022
Current Fiscal Year End Date	--05-31
Document Transition Report	false
Entity File Number	001-31968
Entity Registrant Name	APPLIED BLOCKCHAIN, INC.
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	95-4863690
Entity Address, Address Line One	3811 Turtle Creek Blvd.
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	427-1704
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	APLD
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
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 Public Float			$ 175.1
Entity Common Stock, Shares Outstanding		94,238,937
Documents Incorporated by Reference	None.
Entity Central Index Key	0001144879
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false

Audit Information

Audit Information	12 Months Ended
	May 31, 2022
Auditor Information [Abstract]
Auditor Name	Marcum LLP
Auditor Location	New York, NY
Auditor Firm ID	688

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	May 31, 2022	May 31, 2021
Current Assets:
Cash and cash equivalents	$ 46,299	$ 11,750
Accounts receivable	227	0
Utility deposits	1,450	0
Prepaid expenses and other current assets	1,336	5
Total current assets	49,312	11,755
Right of use asset, net	6,408	0
Deposit on equipment	0	3,277
Property and equipment, net	64,260	20
TOTAL ASSETS	119,980	15,052
Current Liabilities:
Accounts payable and accrued liabilities	13,244	249
Accrued dividends	0	116
Current portion of lease liability	1,004	0
Current portion of notes payable	1,333	0
Related party notes payable	0	2,135
Customer deposits	9,524	0
Deferred revenue	3,877	0
Other current liabilities	16	0
Total current liabilities	28,998	2,500
Deferred tax liability	540	0
Long-term portion of lease liability	5,310	0
Long-term notes payable	5,897	0
Total liabilities	40,745	2,500
Commitments and contingencies
Mezzanine equity:
Series C, convertible and redeemable preferred stock	0	15,135
Stockholders’ deficit:
Common stock, $.001 par value, 166,666,667 shares authorized, 97,837,798 and 1,511,061 issued and outstanding, respectively	98	2
Additional paid in capital	128,293	13,881
Treasury stock, 36,300 shares, at cost	(62)	(62)
Accumulated deficit	(56,070)	(21,623)
Total stockholders’ equity (deficit) attributable to Applied Blockchain, Inc.	72,259	(2,583)
Noncontrolling interest	6,976	0
Total Mezzanine equity and stockholders' deficit	79,235	12,552
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY	119,980	15,052
Series C Convertible Preferred Stock
Mezzanine equity:
Series C, convertible and redeemable preferred stock	0	15,135
Series A Convertible Preferred Stock
Stockholders’ deficit:
Convertible preferred stock	0	3,370
Series B Convertible Preferred Stock
Stockholders’ deficit:
Convertible preferred stock	$ 0	$ 1,849

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	May 31, 2022	May 31, 2021
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)	97,837,798	1,511,061
Common stock, shares outstanding (in shares)	97,837,798	1,511,061
Treasury stock, (in shares)	36,300	36,300
Series C Convertible Preferred Stock
Temporary equity, par value (in dollars per share)	$ 0.001	$ 0.001
Temporary equity authorized (in shares)	0	660,000
Temporary equity issued (in shares)	0	660,000
Temporary equity outstanding (in shares)	0	660,000
Series A Convertible Preferred Stock
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	70,000	70,000
Preferred stock, shares outstanding (in shares)	0	27,195
Preferred stock, shares issued (in shares)	0	27,195
Series B Convertible Preferred Stock
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	50,000	50,000
Preferred stock, shares outstanding (in shares)	0	17,087
Preferred stock, shares issued (in shares)	0	17,087

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	May 31, 2022	May 31, 2021
Income Statement [Abstract]
Hosting revenue	$ 8,549	$ 0
Cost of revenues	9,506	0
Gross loss	(957)	0
Costs and expenses:
Selling, general and administrative	7,555	332
Stock-based compensation	12,337	0
Depreciation and amortization	49	0
Total costs and expenses	19,941	332
Operating loss	(20,898)	(332)
Other (expense) income:
Interest expense	(112)	(236)
Gain on extinguishment of accounts payable	406	0
Loss on extinguishment of debt	(1,342)	0
Total other expense	(1,048)	(236)
Net loss from continuing operations before income tax expenses	(21,946)	(568)
Income tax expenses	(540)	0
Net loss from continuing operations	(22,486)	(568)
Net loss from discontinued operations, net of income taxes	(1,044)	0
Net loss including noncontrolling interests	(23,530)	(568)
Net Loss attributable to noncontrolling interest	10	0
Net loss attributable to Applied Blockchain	$ (23,520)	$ (568)
Basic and diluted net loss per share:
Continuing Operations - basic ( in dollars per share)	$ (0.39)	$ (0.38)
Continuing Operations - diluted ( in dollars per share)	(0.39)	(0.38)
Discontinued Operations - basic ( in dollars per share)	(0.02)	0
Discontinued Operations - diluted ( in dollars per share)	(0.02)	0
Basic net loss per share (in dollars per share)	(0.41)	(0.38)
Diluted net loss per share (in dollars per share)	$ (0.41)	$ (0.38)
Basic weighted average number of shares outstanding (in shares)	57,121,096	1,511,061
Diluted weighted average number of shares outstanding (in shares)	57,121,096	1,511,061

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Stockholders’ Equity	Common Stock	Additional Paid in Capital	Treasury Stock	Accumulated Deficit	Noncontrolling interest	Series C Convertible Preferred Stock	Series D Convertible Preferred Stock	Series A Convertible Preferred Stock	Series A Convertible Preferred Stock Preferred Stock	Series B Convertible Preferred Stock	Series B Convertible Preferred Stock Preferred Stock	Series A and B Preferred Stock	Series A and B Preferred Stock Common Stock	Series A and B Preferred Stock Additional Paid in Capital	Series C and D Preferred Stock	Series C and D Preferred Stock Stockholders’ Equity	Series C and D Preferred Stock Common Stock	Series C and D Preferred Stock Additional Paid in Capital
Beginning balance (in shares) at May. 31, 2020								0	0
Beginning balance at May. 31, 2020	$ 0							$ 0	$ 0
Increase (Decrease) in Temporary Equity [Roll Forward]
Issuance of Preferred Stock (in shares)								660,000
Issuance of preferred stock	16,500							$ 16,500
Issuance costs	(1,365)							$ (1,365)
Ending balance (in shares) at May. 31, 2021								660,000	0
Ending balance at May. 31, 2021	15,135							$ 15,135	$ 0
Beginning balance, preferred stock (in shares) at May. 31, 2020											27,195		17,087
Beginning balance, common stock (in shares) at May. 31, 2020			1,511,061
Beginning balance at May. 31, 2020	(2,015)	$ (2,015)	$ 2	$ 13,881	$ (62)	$ (21,055)	$ 0				$ 3,370		$ 1,849
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss attributable to Applied Blockchain	$ (568)	(568)				(568)
Ending balance, preferred stock (in shares) at May. 31, 2021										27,195	27,195	17,087	17,087
Ending balance, common stock (in shares) at May. 31, 2021	1,511,061		1,511,061
Ending balance at May. 31, 2021		(2,583)	$ 2	13,881	(62)	(21,623)	0				$ 3,370		$ 1,849
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Ending balance	$ 12,552
Issuance of Preferred Stock (in shares)									1,380,000
Issuance of preferred stock	34,500								$ 34,500
Issuance costs	(2,927)								$ (2,927)
Preferred Stock Dividends Accrued (in shares)								25,633	53,587
Preferred Stock Dividends Accrued	1,981							$ 641	$ 1,340
Conversion of Series C and D preferred stock (in shares)								(685,633)	(1,433,587)
Conversion of Series C and D preferred stock	(48,689)							$ (15,776)	$ (32,913)
Ending balance (in shares) at May. 31, 2022								0	0
Ending balance at May. 31, 2022	0							$ 0	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Extinguishment of Debt (in shares)			5,083,828
Extinguishment of debt	3,478	3,478	$ 5	3,473
Issuance of Dividends to Preferred Stock (in shares)											60,822		29,772
Issuance of dividends to preferred stock	115	115				(8,946)					$ 6,082		$ 2,979
Conversion of Preferred Stock (in shares)											(88,017)		(46,859)		28,765,308				36,440,783
Conversion of preferred stock											$ (9,452)		$ (4,828)	$ 0	$ 29	$ 14,251	$ 0	$ 48,689	$ 36	$ 48,653
Service agreement stock compensation (in shares)			18,036,723
Service agreement stock compensation	12,337	12,337	$ 18	12,319
Preferred Stock Dividends Accrued	0	(1,981)				(1,981)
Initial public offering of common stock (in shares)			8,000,000
Initial public offering of common stock	40,000	40,000	$ 8	39,992
Offering costs of initial public offering	(4,276)	(4,276)		(4,276)
Contributions by noncontrolling interest	6,986						6,986
Net loss attributable to Applied Blockchain	$ (23,530)	(23,520)				(23,520)	(10)
Ending balance, preferred stock (in shares) at May. 31, 2022										0	0	0	0
Ending balance, common stock (in shares) at May. 31, 2022	97,837,798		97,837,703
Ending balance at May. 31, 2022	$ 79,235	$ 72,259	$ 98	$ 128,293	$ (62)	$ (56,070)	$ 6,976				$ 0		$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Ending balance	$ 79,235

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	May 31, 2022	May 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss attributable to Applied Blockchain	$ (23,520)	$ (568)
Net loss from discontinued operations, net of income taxes	(1,044)	0
Net loss attributable to noncontrolling interests	(10)	0
Net loss from continuing operations	(22,486)	(568)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,009	1
Accrued paid in kind interest	0	236
Loss on extinguishment of debt	1,342	0
Gain on extinguishment of accounts payable	(406)	0
Stock-Based compensation for service agreement	12,337	0
Amortization of right of use asset	111	0
Deferred tax	540	0
Increase (Decrease) in Operating Capital [Abstract]
Accounts receivable	(227)	0
Utility deposits	(1,450)	0
Prepaid expenses and other current assets	(1,331)	0
Customer deposits	9,524	0
Deferred revenue	3,877	0
Accounts payable and accrued liabilities	6,745	248
Payments of operating leases	(310)	0
Net cash provided by operating activities of continuing operations	9,275	(83)
Net cash used in operating activities of discontinued operations	(10,147)	0
NET CASH PROVIDED BY OPERATING ACTIVITIES	(872)	(83)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(58,251)	(20)
Deposit on equipment	3,277	(3,282)
Net cash used in investing activities of continuing operations	(54,974)	(3,302)
Net cash provided by investing activities of discontinued operations	9,103	0
NET CASH USED IN INVESTING ACTIVITIES	(45,871)	(3,302)
CASH FLOWS FROM FINANCING ACTIVITIES
Initial public offering of common stock	40,000	0
Issuance of preferred stock	34,500	16,500
Repayment of finance leases	(221)	0
Proceeds from issuance of term loan	7,324	0
Issuance costs for term loan	(94)	0
Contributions by noncontrolling interest	6,986	0
Net cash provided by financing activities of continuing operations	81,292	15,135
Net cash provided by financing activities of discontinued operations	0	0
NET CASH PROVIDED BY FINANCING ACTIVITIES	81,292	15,135
NET INCREASE IN CASH AND CASH EQUIVALENTS	34,549	11,750
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	11,750	0
CASH AND CASH EQUIVALENTS, END OF YEAR	46,299	11,750
Less: Cash and cash equivalents of discontinued operations	0	0
Cash and cash equivalents of continuing operations	46,299	11,750
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest Paid	112	236
Taxes Paid	0	0
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]
Non-cash dividends paid in-kind	11,042	0
Right-of-use asset obtained by lease obligation	8,879	0
Fixed assets in accounts payable	6,998	0
Preferred Stock
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance costs for stock	(2,927)	(1,365)
Common Stock
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance costs for stock	$ (4,276)	$ 0

BUSINESS AND ORGANIZATION

BUSINESS AND ORGANIZATION	12 Months Ended
	May 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BUSINESS AND ORGANIZATION	BUSINESS AND ORGANIZATION Applied Blockchain, Inc. (the “Company”) is a builder and operator of next-generation data centers across North America, which provide substantial computing power to blockchain infrastructure and support Bitcoin mining. The Company has a colocation business model where customers place hardware they own into the Company’s facilities and the Company provides full operational and maintenance services for a fixed fee. The Company typically enters into long term fixed rate contracts with our customers. In the third quarter of the fiscal year ended May 31, 2022, the Company approved plans to sell all crypto mining equipment and cease all crypto mining operations. The results of these operations, financial position, and cash flows have been presented as discontinued operations and the related assets and liabilities. Refer to Note 14 – Discontinued Operations for additional information, including accounting policies, about the Company’s discontinued operations. The Company was originally incorporated in Nevada in May 2001. Effective April 14, 2021, the Company’s name was changed to Applied Blockchain, Inc. from Applied Science Products, Inc. During the year ended May 31, 2021, the Company formed two subsidiaries, Shanghai Sparkly Ore Tech, Ltd and Applied Blockchain, Ltd. Shanghai Sparkly Ore Tech, Ltd is a wholly owned foreign entity in China. Applied Blockchain, Ltd., a Cayman limited company, managed the Company’s digital wallet. During the year ending May 31, 2022, the Company formed five new wholly-owned subsidiaries, APLD Hosting, LLC, Applied Talent Resources LLC, APLD-JTND Phase II, LLC, APLD-Rattlesnake Den I, LLC, and APLD-Rattlesnake Den II, LLC. In June 2021, we formed APLD Hosting, LLC, in Nevada. APLD Hosting is entering into agreements to own and operate our co-hosting facilities. On November 2, 2021, we formed Applied Talent Resources LLC in Nevada to employ and manage our employees, employee staffing among our entities and projects and employment related plans and policies. On November 8, 2021, we formed APLD-JTND Phase II, LLC and on November 15, 2021, we formed APLD-Rattlesnake Den I, LLC and APLD-Rattlesnake Den II, LLC, each of which is a Delaware limited liability company formed to build and operate a co-hosting facility. In the third quarter of the fiscal year ending May 31, 2022, the Company entered into a joint venture agreement to form 1.21 Gigawatts, LLC (“the joint venture entity”), with Antpool Capital Asset Investment, L.P., an affiliate of Bitmain Technologies. Applied Blockchain and Antpool intend to leverage their combined resources and expertise to initially build up to 1.5 Gigawatts (GW) of datacenter hosting capacity over the next 24 months. The Company has a majority interest in the joint venture entity and therefore the results of the joint venture entity will be consolidated in the Company’s financial statements. Reverse Stock Split The Company’s board of directors approved a reverse split of shares of the Company’s common stock on a one-for-six basis, which was effected on April 12, 2022 (the “Reverse Stock Split”). All references to Common Stock, options to purchase common stock, restricted stock units, share data, per share data and related information contained in the condensed consolidated financial statements have been retrospectively adjusted to reflect the effect of the Reverse Stock Split for all periods presented. No fractional shares of the Company’s common stock were issued in connection with the Reverse Stock Split. Any fractional share resulting from the Reverse Stock Split was rounded down to the nearest whole share and the affected holder received cash in lieu of such fraction share. Initial Public Offering On April 13, 2022, the Company announced its initial public offering of 8,000,000 shares of its common stock at $5.00 per share. The shares began trading on The Nasdaq Global Select Market on April 13, 2022, under the ticker symbol “APLD.”The net proceeds received by the Company from the offering (after deducting underwriting discounts and commission and estimated offering expenses) were approximately $36 million. The Company intends to use the net proceeds to lease or purchase additional property on which to build additional co-hosting facilities, to construct those facilities, to enter into additional energy service agreements for each additional site and for funding its working capital and general corporate purposes.

LIQUIDITY AND FINANCIAL CONDITI

LIQUIDITY AND FINANCIAL CONDITION	12 Months Ended
	May 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
LIQUIDITY AND FINANCIAL CONDITION	LIQUIDITY AND FINANCIAL CONDITIONAs of May 31, 2022, the Company had approximate cash and cash equivalents of $46.3 million and working capital of $20.3 million. In April 2022, the Company raised $40.0 million in gross proceeds from our initial public offering of Common Stock. Historically, the Company has incurred losses and has relied on equity financings to fund its operations. Based on analysis of cash flows, current net working capital, and expected operations revenues, the Company believes its current cash on hand is sufficient to meet its operating and capital requirement for at least next twelve months from the date these financial statements are issued.

BASIS OF PRESENTATION AND SIGNI

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	May 31, 2022
Accounting Policies [Abstract]
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation: The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). The accompanying consolidated financial statements of the Company include the accounts of the Company and its wholly owned and controlled subsidiaries. Consolidated subsidiaries results are included from the date the subsidiary was formed or acquired. Noncontrolling interests in consolidated subsidiaries in the consolidated financial statements represent non-controlling stockholders' proportionate share of the operations in such subsidiaries. Intercompany investments, balances and transactions have been eliminated in the consolidated financial statements. The Company’s consolidated operating subsidiaries include wholly-owned Shanghai Sparkly Ore Technology, Ltd, Applied Blockchain, Ltd., APLD-JTND Phase II, LLC, APLD-Rattlesnake Den I LLC, APLD-Rattlesnake Den II LLC, APLD Hosting, LLC, Applied Talent Resources LLC, as well the Company’s majority interest in 1.21 Gigawatts, LLC. Use of Estimates The preparation of 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 estimate inherent in the preparation of the Company’s financial statements is the valuation allowance associated with the Company’s deferred tax assets. Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers ("ASC 606"). The Company provides energized space to customers who locate their hardware within the Company’s co-hosting facility. All performance obligations are achieved simultaneously by providing the hosting environment for the customers’ operations. Hosting revenue is recorded monthly in fixed amounts, net of credits, based on the terms of the hosting agreements. Customer contracts include advance payment terms. Advanced payments are recorded as deferred revenue until the related service is provided. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less at the date of acquisition to be cash equivalents. Our cash equivalents in excess of federally insured limits potentially subject us to concentrations of credit risk, although we believe they are subject to minimal risk. The Company has restricted cash related to its letter of credit totally $7.5 million. The company is required to keep this balance in a separate account for the duration of the letter of credit agreement, which lasts through January 2024. The following tables reconciles cash and cash equivalents and restricted cash to presentation on the balance sheet as of May 31, 2022, and May 31, 2021 (in thousands) May 31, 2022 May 31, 2021 Cash and Cash Equivalents $ 38,798 $ 11,750 Restricted Cash $ 7,501 $ — Total Cash and Cash Equivalents $ 46,299 $ 11,750 Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The cost of maintenance and repairs is charged to operations as incurred, whereas significant improvements that extend the life of an asset are capitalized. Lease Accounting The Company accounts for its leases under ASC 842, Leases (“ASC 842”). Accordingly, the Company determines whether an arrangement contains a lease at the inception of the arrangement. If a lease is determined to exist, the term of such lease is assessed based on the date on which the underlying asset is made available for the Company’s use by the lessor. The Company’s assessment of the lease term reflects the non-cancelable term of the lease, inclusive of any rent-free periods and/or periods covered by early-termination options which the Company is reasonably certain of not exercising, as well as periods covered by renewal options which the Company is reasonably certain of exercising. The Company also determines lease classification as either operating or finance at lease commencement, which governs the pattern of expense recognition and the presentation reflected in the consolidated statements of operations over the lease term. For leases with a term exceeding 12 months, a lease liability is recorded on the Company’s consolidated balance sheet at lease commencement reflecting the present value of its fixed minimum payment obligations over the lease term. A corresponding right-of-use (“ROU”) asset equal to the initial lease liability is also recorded, adjusted for any prepaid rent and/or initial direct costs incurred in connection with execution of the lease and reduced by any lease incentives received. For purposes of measuring the present value of its fixed payment obligations for a given lease, the Company uses its incremental borrowing rate, determined based on information available at lease commencement, as rates implicit in its leasing arrangements are typically not readily determinable. The Company’s incremental borrowing rate reflects the rate it would pay to borrow and incorporates the term and economic environment of the associated lease. For the Company’s operating leases, fixed lease payments are recognized as lease expense on a straight-line basis over the lease term. For leases with an initial term of 12 months or less, any fixed lease payments are recognized on a straight-line basis over the lease term and are not recognized on the Company’s consolidated balance sheet as an accounting policy election. Leases qualifying for the short-term lease exception were insignificant. Variable lease costs are recognized as incurred. Income Taxes ASC Topic 740, Income Taxes, (“ASC 740”), clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The benefit of a tax position is recognized in the financial statements in the period during which based on all available evidence, management believes it is most likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure, and transition. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s consolidated financial statements. Recent Accounting Pronouncements The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its consolidated financial statements and assures that there are proper controls in place to ascertain that the Company’s consolidated financial statements properly reflect the change. In August 2020, the FASB issued ASU No. 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) : Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, and it also simplifies the diluted earnings per share calculation in certain areas. This ASU is effective for annual reporting periods beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. This update permits the use of either the modified retrospective or fully retrospective method of transition. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements and related disclosures. In September 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, ASU 2016-13 eliminates the probable initial recognition threshold in current GAAP; and instead requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current GAAP; however, this ASU requires that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects companies holding financial assets and net investment in leases that are not accounted for at fair value through net income. The ASU 2016-13 amendments affect loans, debt securities, trade receivables, net investments in leases, off balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 was originally effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. In November 2019, the FASB approved a delay of the required implementation date of ASU 2016-13 for smaller reporting companies, including the Company, resulting in a required implementation date for the Company of June 1, 2023. Early adoption will continue to be permitted. We are currently evaluating the impact this ASU will have on its consolidated financial statements and related disclosures.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	May 31, 2022
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	PROPERTY AND EQUIPMENT (in thousands) Estimated Useful Life May 31, May 31, Hosting Equipment Electric Generation and Transformers 15 years 4,338 — Other Equipment and Fixtures 5-7 years 588 21 Construction in Progress 18,305 — Information Systems and Software 5 years 9,608 — Land & Building Land 1,074 — Land Improvements 15 years 1,180 — Building 39 years 30,176 — Total cost of property and equipment 65,269 21 Accumulated Depreciation (1,009) (1) Property Plant and Equipment, Net $ 64,260 $ 20

REVENUE FROM CONTRACTS WITH CUS

REVENUE FROM CONTRACTS WITH CUSTOMERS	12 Months Ended
	May 31, 2022
Revenue from Contract with Customer [Abstract]
REVENUE FROM CONTRACTS WITH CUSTOMERS	REVENUE FROM CONTRACTS WITH CUSTOMERS The Company recognizes revenue when promised services are transferred to customers in an amount that reflects the consideration to which the Company expects to be received in exchange for those services. The Company notes all revenue recognized from continuing operations during the quarter was received through hosting revenue. Below is a summary of the Company’s revenue concentration by major customer for the year ended May 31, 2022 and 2021. Year Ended May 31, Customer 2022 2021 Customer A 41 % — % Customer B 16 % — % Customer C 15 % — % Customer D 15 % — % Customer E 13 % — % Remaining Performance Obligations As of May 31, 2022, the Company had $3.9 million in deferred revenue, which represents the Company’s remaining performance obligations. The Company expects to recognize all of this revenue within the next 12 months. Deferred Revenue Changes in the Company's deferred revenue balances for the years ended May 31, 2022 and 2021, respectively, are shown in the following table: (in thousands) Balance at June 1, 2020 $ — Advance billings $ — Revenue recognized $ — Other adjustments $ — Balance at May 31, 2021 $ — Advance billings $ 12,426 Revenue recognized $ (8,549) Other adjustments $ — Balance at May 31, 2022 $ 3,877 Customer Deposits Changes in the Company's customer deposits balances for the years ended May 31, 2022 and 2021, respectively, are shown in the following table: (in thousands) Balance at June 1, 2020 $ — Customer deposits received $ — Customer deposits refunded $ — Balance at May 31, 2021 $ — Customer deposits received $ 9,524 Customer deposits refunded $ — Balance at May 31, 2022 $ 9,524

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	May 31, 2022
Debt Disclosure [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS Related Party Policy Parties are considered related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions. Related Party Note Payable A related party note payable was held by the CEO of the Company during the years ended May 31, 2022, and 2021. Pursuant to an exchange agreement effective June 12, 2021, the outstanding debt principal of $470,000 and accrued interest of $1.6 million was converted to 5.1 million shares of Common Stock with a fair value of $0.75 per share which resulted in a loss on extinguishment of $1.3 million. Upon the consummation of the Exchange Agreement, the note payable was surrendered and cancelled; all rights including rights to accrued interest due were extinguished. Related Party Revenue

DEBT

DEBT	12 Months Ended
	May 31, 2022
Debt Disclosure [Abstract]
DEBT	DEBT Letter of Credit As of May 31, 2022, the Company had a letter of credit totaling $7.5 million. As discussed in Footnote 3, the Company is required to maintain this amount in a separate cash balance, and therefore the cash is restricted. The Company did not have a letter of credit as of May 31, 2021. Further, the Company has no unused lines of credit as of May 31, 2022 or May 31, 2021, respectively. Term Loan On March 11, 2022, the Company and Applied Hosting, LLC (“Hosting”), a wholly-owned subsidiary of the Company, entered into a term loan agreement (the “VBT Loan Agreement”) by and among Hosting, as the borrower, Vantage Bank Texas, as lender (the “VBT Lender”) and the Company as guarantor. Pursuant to the Loan Agreement, on March 11, 2022, Hosting entered into a promissory note agreement (the “ VBT Note”) and borrowed $7.5 million for a five The VBT Loan Agreement and VBT Note contain customary representations and warranties and events of default. In addition, the VBT Note contains certain affirmative and negative covenants and other terms and conditions for a facility of this type. The effective interest rate for the VBT Note was 5.6% and 0% for the years ended May 31, 2022 and 2021, respectively. Below is a summary of the remaining principal payments due over the life of the VBT note as of May 31, 2022 Year Principal Payments (in thousands) FY23 $ 1,333 FY24 1,409 FY25 1,490 FY26 1,576 FY27 1,382 Total VBT Term Loan Remaining Payments $ 7,190 Also on March 11, 2022, the Company entered into a continuing guaranty agreement (the “VBT Guaranty Agreement”) with the VBT Lender, pursuant to which the Company agreed to guaranty Hosting’s indebtedness and obligations under the VBT Loan Agreement. The VBT Term Loan is secured by a mortgage on the Property pursuant to a Mortgage, Security Agreement and Fixture Financing Statement (the “VBT Mortgage”), dated March 11, 2022, by and between Hosting and the VBT Lender, and a security interest in the all accounts receivable, rents and servicing agreements relating to the property and equipment as set forth in or required by the VBT Loan Agreement. In connection with the VBT Note, the Company incurred debt issuance costs of $93,939. Below is a summary of total debt, including current debt and deferred financing fees related to the VBT Note, for the year ended May 31, 2022, and 2021. (in thousands) Year ended Year ended May 31, May 31, Term Loan Balance $7,324 $— Less: Deferred Issuance Costs (94) — Less: Current portion of Term Loan (1,333) — Long-term Portion of Term Loan $5,897 $—

INCOME TAXES

INCOME TAXES	12 Months Ended
	May 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company recorded income tax expense of $540,000 for the year ended May 31, 2022, compared to no expense for the year ended May 31, 2021. The Company’s effective tax rate was (2.4%) and 0% for the year ended May 31, 2022 and 2021, respectively. The following table presents current and deferred tax expense for the year ended May 31, 2022, and 2021 Year ended Year ended May 31, May 31, Current expense (benefit) Federal $ — $ — Foreign — — State — — Total current benefit $ — $ — Deferred expense (benefit) Federal $ 540 $ — Foreign — — State — — Total deferred expense $ 540 — Total income tax expense $ 540 $ — The following table reconciles the statutory rate to our effective tax rate:: May 31, May 31, Expected income tax expense (benefit) at U.S. statutory rate 21.0 % 21 % Federal income tax benefit 0.6 % — % Permanent differences (0.9 %) — % Current and deferred state taxes 3.9 % — % Change in valuation allowance (27.0 %) (21.0 %) Income Tax Expense / (Benefit) (2.4 %) 0 % Deferred income taxes reflect the temporary differences between the amounts at which assets and liabilities are recorded for financial reporting purposes and the amounts utilized for tax purposes. The primary components of the temporary differences that gave rise to the Company’s deferred tax assets and liabilities are as follows for the year ended May 31, 2022, and 2021: May 31, May 31, Deferred Tax Assets: Intangibles $ 78 $ — Lease Adjustment 2,080 — Federal Net Operating Loss 9,158 175 Charitable Contributions 17 — Passthrough Entities 13 — Valuation Allowance (6,393) (175) Total Net Deferred Tax Asset $ 4,953 $ — Deferred Tax Liability Property, Plant, and Equipment $ (3,407) $ — Lease Adjustment (2,086) — Total Net Deferred Tax Asset $ (5,493) $ — Deferred Tax Liability, Net $ (540) $ — The Company had federal tax net operating losses of $35.6 million and $568,000 at May 31, 2022 and 2021, respectively. The May 31, 2021 and May 31, 2022 losses can both be carried forward indefinitely. A valuation allowance is provided when it is more likely than not that some portion or the entire net deferred tax asset will not be realized. The Company has recorded an increase in the valuation allowance of $6.2 million and $120,000 as of May 31, 2022 and 2021, respectively. The Company has provided a valuation allowance for the portion of the deferred tax assets that it has determined are not more likely than not to be recognized. The valuation allowance is primarily attributable to deferred tax assets for net operating losses that management believes are more likely than not to expire prior to being realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income of the appropriate character (i.e., capital or ordinary) during the period in which the temporary differences become deductible. Management considers, among other things, the scheduled reversals of deferred tax liabilities and the history of positive taxable income in evaluating the realizability of the deferred tax assets. Management believes that it is not likely that the results of future operations will generate sufficient taxable income to realize its deferred tax assets. Under the provisions of the Internal Revenue Code, certain substantial changes in the Company’s ownership, including a sale of the Company or significant changes in ownership due to sales of equity, may have limited, or may limit in the future, the amount of net operating loss carryforwards that could be used annually to offset future taxable income. The Company did not have any unrecognized tax benefits for the years ended May 31, 2022, and 2021, respectively. The Company recognizes interest expense related to unrecognized tax benefits in income tax expense. The Company did not have any interest expense or expense for penalties related to unrecognized tax benefits for the reported periods.

REDEEMABLE EQUITY

REDEEMABLE EQUITY	12 Months Ended
	May 31, 2022
Temporary Equity Disclosure [Abstract]
REDEEMABLE EQUITY	REDEEMABLE EQUITY Series C Preferred Stock As of May 31, 2021, 660,000 shares of Series C Preferred Stock were outstanding. The shares of Series C Preferred Stock were convertible into shares of Common Stock. These shares were offered and sold to certain “accredited investors” in a private placement without registration of the shares under Rule 506 of the Securities Act and the rules and regulations promulgated thereunder. The Series C Preferred Stock was entitled to participate on an as-converted basis in any dividends paid to the holders of Common Stock. The Series C Preferred Stock was entitled to Paid-in-kind (“PIK”) Dividends which accrued based on a percentage of the Stated Value, which ranged from 10-15% per annum, depending on when the Company filed a registration statement for its common stock, and when the registration statement was declared effective by the SEC and the common stock began trading on a public market. The Company accrued PIK dividends at 12% per annum of the Stated Value from December 15, 2021, until April 12, 2022, when the Company's registration statement was declared effective by the SEC. The Series C Preferred Stock did not accrue any other PIK Dividends. The Series C Preferred Stock was subject to automatic conversion on the date on which the Company's registration statement was declared effective by the SEC (the “Conversion Date”), at which point all outstanding shares of Series C Preferred Stock were automatically converted (without payment of additional consideration) into such number of fully paid and non-assessable shares of common stock as determined by dividing the Stated Value of such shares by the Conversion Price of $0.75 in effect on the Conversion Date. All rights with respect to the Series C Preferred Stock terminated on the Conversion Date. Pursuant to the automatic conversion provision, 685,633 Shares of Series C Preferred Shares, which included 25,633 shares issued to settle PIK dividends, were converted to Common Stock on April 12, 2022. Upon conversion, the Company issued 22,865,857 shares of Common Stock to the holders of Series C Preferred Stock. Series D Preferred Stock 1,380,000 Shares of Series D Preferred Stock were issued during the year ended May 31, 2022 for gross proceeds of $34,500. The Company incurred $2,927 of issuance costs related to the Series D Preferred Stock. The shares of Series D Preferred Stock were convertible into shares of Common Stock. These shares were offered and sold to certain “accredited investors” and non-U.S. Persons in a private placement without registration of the shares under Regulation D and Regulation S of the Securities Act. The Series D Preferred stock ranked pari passu with the Series C Preferred Stock. The Series D Preferred Stock accrued PIK dividends under the same terms as the Series C Preferred Stock. The Company accrued PIK dividends at 12% of the stated value of the Series D Preferred Stock from December 15, 2021 to April 12, 2022, when the Company's registration statement was declared effective. The Series D Preferred Stock was subject to automatic conversion on the Conversion Date. All shares of Series D Preferred Stock were automatically converted (without payment of additional consideration) into such number of fully paid and non-assessable shares of Common Stock as determined by dividing the Stated Value by the Conversion Price of $2.64 in effect on such Conversion Date. All rights with respect to the Series D Preferred Stock terminated on the Conversion Date. Pursuant to the automatic conversion provision, 1,433,587 Shares of Series D Preferred Shares, which included 53,587 shares issued to settle PIK dividends, were converted to Common Stock on April 12, 2022. Upon conversion, the Company issued 13,575,634 shares of Common Stock to the holders of Series D Preferred Stock. As of May 31, 2022, there are no shares of Series D or Series C Preferred Stock outstanding.

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT)	12 Months Ended
	May 31, 2022
Equity [Abstract]
STOCKHOLDERS' EQUITY (DEFICIT)	STOCKHOLDERS’ EQUITY (DEFICIT) Common Stock The Company is authorized to issue 166,666,667 shares of Common Stock at 0.001 par value per share. As of May 31, 2022 and 2021, 97,837,798 and 1,511,061 shares of Common Stock were outstanding, respectively. Equity Compensation On January 18, 2022, the Company issued (i) an aggregate of 600,000 shares of restricted stock, consisting of 100,000 shares to each of its non-employee directors and (ii) an aggregate of 766,666 shares of restricted stock to three executives, in all cases as compensatory grants for services rendered to the Board or the Company. Each of the awards vests upon the completion of service conditions for specified times and a performance condition for the occurrence of an effective registration statement covering the resale of the shares of common stock comprising the stock award with the Securities and Exchange Commission (the “SEC”). The Company will recognize the cost of the restricted stock based on the grant date fair value of the awards over the related vesting terms using a straight-line method when it is probable that the performance condition of an effective registration statement for the reserved underlying shares will be met. The fair value of the restricted stock was estimated to be $11.0 million. The Company's restricted stock shares are considered to be nonvested share awards. On January 14, 2022, the Company granted an aggregate of 1,791,666 restricted stock units (“RSUs”) to three consultants, in all cases as compensatory grants for consulting services rendered to the Company which contain performance conditions that affect vesting. The performance conditions specify that the RSUs are achieved based on specific thresholds of power to become available in the Company’s colocation hosting facility and also upon the occurrence of an effective registration statement covering the resale of the shares of common stock comprising the stock award shares with the SEC. The Company will recognize the cost of these RSUs based on the grant date fair value of the awards when it is probable that the performance conditions will be achieved over the related vesting terms. The fair value of these RSUs was estimated to be $14.4 million. The fair value of the shares of common stock underlying equity compensation has been determined by using a third-party valuation specialist to assist management in its determination. Management determines the fair value of the Company’s Common Stock by considering a number of objective and subjective factors including: the valuation of comparable companies, sales of redeemable convertible preferred stock to unrelated third parties, the Company’s operating and financial performance, and general and industry specific economic outlook, amongst other factors. The Company estimated the fair value of the Common Stock at issuance date using a Probability Weighted Expected Return Method (“PWERM”). The PWERM estimated the fair value assuming two possible outcomes, for which each discrete outcome is probability weighted to arrive at a weighted-average value. The Company weighted two different scenarios as follow: Scenario Weight Public Company scenario (“listing scenario”) 95 % Remain a private Company scenario (“private scenario”) 5 % As the performance condition of an effective registration statement covering the resale of the shares of common stock comprising the restricted stock and RSUs to officers, non-employee directors, and consultants has not been met as of May 31, 2022, no expense has been recognized for the year ended May 31, 2022. Share-Based Compensation In March 2021, the Company entered into service agreements collectively with GMR Limited, Xsquared Holding Limited (“SparkPool”), and Valuefinder to provide cryptocurrency mining management, equipment, and other services to assist with the mining operation of the Company during 2021 and 2022. In exchange, the Company agreed to issue Common Stock shares as shown below and included in the agreement. All shares were issued in June 2021. Service Provider Common Stock Valuefinder 3,156,427 SparkPool 7,440,148 GMR 7,441,648 Total 18,038,223 The fair value of the share-based compensation issued was calculated using the fair value of outstanding equity using the option pricing method, weighted as shown below. All shares issued under the agreement were vested immediately. Class of Stock Option Pricing Fair Value Weight Common Stock $ 0.402 8 % Conversion Price of Series C Shares 0.780 92 % Weighted-average fair value $ 0.750 Series A Convertible Preferred Stock Each share of Series A Convertible Preferred Stock (“Series A Preferred Stock”) had a liquidating value of $100 per share, was convertible into 1,429 shares of Common Stock of the Company (subject to adjustment) and paid a cash dividend of 8% or a dividend in kind of 10%. The dividends accrued quarterly and were based on the original purchase price of the Series A Preferred Stock. All shares of Series A Preferred Stock were converted, effective June 12, 2021, to shares of Common Stock. 6,809,833 shares of Common Stock were issued in exchange for the Series A Convertible Preferred Stock upon this conversion. Series B Convertible Preferred Stock Each share of Series B Convertible Preferred Stock (“Series B Preferred Stock”) has a liquidating value of $100 per share, is convertible into 1,000 shares of Common Stock of the Company (subject to adjustment) and pays a cash dividend of 8% or a dividend in kind of 10%. The dividends are accrued quarterly and are based on the original purchase price of the Series B Preferred Stock. All shares of Series B Preferred Stock were converted, effective June 12, 2021, to shares of Common Stock. 6,809,833 shares of Common Stock were issued in exchange for the Series B Convertible Preferred Stock upon this conversion. Series C Convertible Preferred Stock Each share of Series C Convertible Preferred Stock (“Series C Preferred Stock”) has a liquidating value of $25 per share, is convertible into 1,000 shares of Common Stock of the Company (subject to adjustment) and pays a dividend in kind of 10%. The dividends are accrued quarterly and are based on the original purchase price of the Series C Preferred Stock. All shares of Series C Preferred Stock were converted, effective April 12, 2022, to shares of Common Stock. 22,865,857 shares of Common Stock were issued in exchange for the Series C Convertible Preferred Stock upon this conversion. Series D Convertible Preferred Stock Each share of Series D Convertible Preferred Stock (“Series D Preferred Stock”) has a liquidating value of $25 per share, is convertible into 1,000 shares of Common Stock of the Company (subject to adjustment) and pays a dividend in kind of 10%. The dividends are accrued quarterly and are based on the original purchase price of the Series D Preferred Stock. All shares of Series D Preferred Stock were converted, effective April 12, 2022, to shares of Common Stock. 13,575,634 shares of Common Stock were issued in exchange for the Series D Convertible Preferred Stock upon this conversion. Equity Plan Approval On October 9, 2021, our Board approved two equity incentive plans, which our stockholders approved on January 20, 2022. The two plans consist of the 2022 Incentive Plan, previously referred to in our SEC filings as the 2021 Incentive Plan (the “Incentive Plan”), which provides for grants of various equity awards to our employees and consultants, and the 2022 Non-Employee Director Stock Plan previously referred to in our 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 May 31, 2022, no awards had been granted under either plan.

LEASES

LEASES	12 Months Ended
	May 31, 2022
Leases [Abstract]
LEASES	LEASES As of May 31, 2022, the Company had an operating lease liability and right of use asset for its office space that expires in October 2026. The Company also entered into several finance leases for equipment and land as of May 31, 2022. As of May 31, 2022, the Company did have one significant finance lease balance related to a land lease related to the Company's Garden City, TX facility. The Company has elected the short-term lease exception and therefore, only recognized lease liabilities and right of use assets for leases longer than one year. The Company has also elected the practical expedient of not separating lease components from non-lease components for its real estate leases. As of May 31, 2022, and May 31, 2021, the balance of the right of use assets were $6.4 million and $0, respectively, and the balance of the lease liability is $6.3 million and $0, respectively, for the Company’s office lease, land lease, and its leased equipment. The calculation of these lease assets and liabilities includes minimum lease payments over the remaining lease term. Any variable lease payments are excluded from the amounts and are recognized in the period in which those obligations are incurred. Operating lease assets are included as right of use assets, net on the Balance Sheet. The current portion of lease liabilities are presented as current portion of lease liability on the Balance Sheet with the remainder included as long-term portion of lease liability on the Balance Sheet. Balance sheet presentation of lease assets and liabilities, net is as follows: Lease Type Consolidated Balance Sheet Presentation May 31, 2022 Operating Lease Assets Right of use asset, net $ 1,110 Finance lease assets Right of use asset, net 5,298 Total lease assets $ 6,408 Operating Lease liabilities Current portion of operating lease liability 191 Operating Lease liabilities Long-term portion of lease Liability 936 Total Operating Lease Liabilities $ 1,127 Finance lease liabilities Current portion of lease liability $ 813 Finance Lease liabilities Long-term portion of lease liability 4,374 Total Finance Lease Liabilities $ 5,187 Total lease liabilities $ 6,314 The Company presents lease costs under ASC 842 is as follows: Lease Type Consolidated Statements of Operations Presentation Year Ended Operating lease expense Selling, General and Administrative $ 328 Finance lease expense: Amortization of ROU assets related to revenue production Cost of Sales 85 Amortization of ROU assets not related to revenue production Depreciation and Amortization Expense 26 Interest on finance leases Interest Expense 50 Short-term lease expense Selling, General and Administrative 126 Variable lease expense Selling, General and Administrative — Total Lease Cost $ 615 The following table represents the Company’s future minimum operating lease payments as of May 31, 2022, under ASC 842 (in thousands): Year Operating Leases Finance Leases Total FY23 $ 318 $ 1,189 $ 1,507 FY24 326 1,193 1,519 FY25 334 558 892 FY26 342 169 511 FY27 144 174 318 Beyond — 87,324 87,324 Total $ 1,464 $ 90,607 $ 92,071 Present value of lease liabilities $ 1,127 $ 5,187 $ 6,314 Less: Current portion of lease liability $ 191 $ 813 $ 1,004 Long-term portion of lease liability $ 936 $ 4,374 $ 5,310 Supplemental cash flow and other information related to leases is as follows: Operating Leases Finance Leases Weighted-average years remaining 4 years 57 years Weighted-average discount rate 12.50 % 7.98 % Cash paid for the amounts included in the measurement of lease liabilities: Operating cash flows $ 310 $ 50 Financing cash flows $ — $ 221
LEASES	LEASES As of May 31, 2022, the Company had an operating lease liability and right of use asset for its office space that expires in October 2026. The Company also entered into several finance leases for equipment and land as of May 31, 2022. As of May 31, 2022, the Company did have one significant finance lease balance related to a land lease related to the Company's Garden City, TX facility. The Company has elected the short-term lease exception and therefore, only recognized lease liabilities and right of use assets for leases longer than one year. The Company has also elected the practical expedient of not separating lease components from non-lease components for its real estate leases. As of May 31, 2022, and May 31, 2021, the balance of the right of use assets were $6.4 million and $0, respectively, and the balance of the lease liability is $6.3 million and $0, respectively, for the Company’s office lease, land lease, and its leased equipment. The calculation of these lease assets and liabilities includes minimum lease payments over the remaining lease term. Any variable lease payments are excluded from the amounts and are recognized in the period in which those obligations are incurred. Operating lease assets are included as right of use assets, net on the Balance Sheet. The current portion of lease liabilities are presented as current portion of lease liability on the Balance Sheet with the remainder included as long-term portion of lease liability on the Balance Sheet. Balance sheet presentation of lease assets and liabilities, net is as follows: Lease Type Consolidated Balance Sheet Presentation May 31, 2022 Operating Lease Assets Right of use asset, net $ 1,110 Finance lease assets Right of use asset, net 5,298 Total lease assets $ 6,408 Operating Lease liabilities Current portion of operating lease liability 191 Operating Lease liabilities Long-term portion of lease Liability 936 Total Operating Lease Liabilities $ 1,127 Finance lease liabilities Current portion of lease liability $ 813 Finance Lease liabilities Long-term portion of lease liability 4,374 Total Finance Lease Liabilities $ 5,187 Total lease liabilities $ 6,314 The Company presents lease costs under ASC 842 is as follows: Lease Type Consolidated Statements of Operations Presentation Year Ended Operating lease expense Selling, General and Administrative $ 328 Finance lease expense: Amortization of ROU assets related to revenue production Cost of Sales 85 Amortization of ROU assets not related to revenue production Depreciation and Amortization Expense 26 Interest on finance leases Interest Expense 50 Short-term lease expense Selling, General and Administrative 126 Variable lease expense Selling, General and Administrative — Total Lease Cost $ 615 The following table represents the Company’s future minimum operating lease payments as of May 31, 2022, under ASC 842 (in thousands): Year Operating Leases Finance Leases Total FY23 $ 318 $ 1,189 $ 1,507 FY24 326 1,193 1,519 FY25 334 558 892 FY26 342 169 511 FY27 144 174 318 Beyond — 87,324 87,324 Total $ 1,464 $ 90,607 $ 92,071 Present value of lease liabilities $ 1,127 $ 5,187 $ 6,314 Less: Current portion of lease liability $ 191 $ 813 $ 1,004 Long-term portion of lease liability $ 936 $ 4,374 $ 5,310 Supplemental cash flow and other information related to leases is as follows: Operating Leases Finance Leases Weighted-average years remaining 4 years 57 years Weighted-average discount rate 12.50 % 7.98 % Cash paid for the amounts included in the measurement of lease liabilities: Operating cash flows $ 310 $ 50 Financing cash flows $ — $ 221

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	May 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Commitments As of May 31, 2022, the Company has commitments related to its term loan and lease agreements , which have been disclosed in Note 7 - Term Loan and Note 11 - Leases , respectively. The Company also has a commitment of approximately $24.2 million related to the energy services agreement for its first cohosting facility as of May 31, 2022. The minimum term of this agreement is five years, and will remain in effect on a year-to-year basis unless terminated by either party by notice given at least 365 calendar days in advance of termination. The commitment is fully due within the next fiscal year, as the company commits to specific power consumption on an annual basis as part of the energy services agreement. The Company purchased approximately $8.1 million and $0 in power under the energy services agreement for the fiscal years ended May 31, 2022 and May 31, 2021, respectively. The Company has no other commitments or contingencies as of May 31, 2022. Claims and Litigation

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	May 31, 2022
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. Refer to Note 9 - Redeemable Equity for details on outstanding classes of preferred shares. Earnings per share for the year ended May 31, 2022 and 2021 are shown in the following table: Basic and diluted income (loss) per share: Year Ended May 31, 2022 May 31, 2021 Net loss from continuing operations $ (22,486) $ (568) Net loss from discontinued operations, net of income taxes (1,044) — Net Loss including noncontrolling interests (23,530) (568) Net Loss attributable to noncontrolling interest 10 — Net loss attributable to Applied Blockchain $ (23,520) $ (568) Continuing operations $ (0.39) $ (0.38) Discontinued operations $ (0.02) $ — Basic and diluted net loss per share $ (0.41) $ (0.38) Basic and diluted weighted average number of shares outstanding 57,121,096 1,511,061

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	12 Months Ended
	May 31, 2022
Discontinued Operations and Disposal Groups [Abstract]
DISCONTINUED OPERATIONS	DISCONTINUED OPERATIONS During February 2022, the Company implemented plans to cease all cryptomining operations and start the sale process of all cryptomining equipment. The assets sold were reflective of the entire mining reportable segment. As the Company completed the sale of the assets shortly after the quarter ended February 28, 2022, the Company used the sale price and actual costs to sale to determine actual carrying value of the assets held for sale, and recorded a loss to write the assets down to their fair value. On March 9, 2022, the Company ceased all crypto mining operations and completed the sale of all crypto mining equipment in service. Total proceeds from the sale of the equipment were $1.6 million. The Company has no plans to return to crypto mining operations in the future as the Company grows. Operating results of discontinued operations are summarized below: Year Ended May 31, 2022 May 31, 2021 Cryptoasset Mining Revenue 3,038 — Mining Revenue Pool Fees 51 — Cryptoasset Mining Revenue, Net 2,987 — Cost of Sales 1,611 — Gross Profit 1,376 — Impairment of Cryptocurrency Assets (393) — Gain on Sale of Fixed Assets 1,229 — Loss on Asset Reclass to Discontinued Operations (3,256) — Net Loss from Discontinued Operations (1,044) — The Company recognizes revenue at the spot price of the cryptoasset when mined. The Company then tracks any gain or loss from the time the cryptoasset was mined to the time when it was ultimately sold or converted. The sale or conversion generally results in a realized gain or loss at the time of sale or conversion. The sale or conversion of cryptoassets results in the receipt of cash consideration. As of May 31, 2022 and 2021, the Company did not hold any cryptoassets. For the year ended May 31, 2022, and 2021, the Company recorded impairment expense of $393,000 and $0, respectively. The following table presents a summary of cryptoasset activity for the year ended May 31, 2022. Year Ended Beginning Balance - May 31, 2021 $ — Cryptoassets earned through mining 3,038 Mining pool operating fees (51) Cryptoassets sold or converted (3,380) Impairment of Cryptocurrency Assets 393 Ending Balance - May 31, 2022 $ — Additional Cryptomining Accounting Policies Cryptoassets Cryptoassets are included in current assets in the accompanying consolidated balance sheets. Cryptoassets are classified as indefinite-lived intangible assets in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles — Goodwill and Other, and are accounted for in connection with the Company’s revenue recognition policy detailed above and in Note 5 - Revenue from Contracts with Customers . Management will evaluate market conditions on a quarterly basis. When events or circumstance identified through this process indicate that cryptoassets may be impaired, they are tested for impairment. Impairment, if any, is recognized for the difference between the fair value of the underlying cryptoasset and the carrying amount of the cryptoasset. Fair value is measured using the quoted price of the cryptoasset at the time its fair value is being measured. Cryptoassets awarded to the Company through its mining activities are included within the operating activities in the accompanying consolidated statements of cash flows. Gains from the sales of cryptoassets are recorded in other income (expense) in the accompanying consolidated statements of operations. The Company accounts for its gains in accordance with the first in, first out (“FIFO”) method of accounting. Cryptoasset mining revenue The Company had entered into cryptoasset mining pools by executing contracts with the mining pool operators to provide computing power to the mining pool. The contracts are terminable at any time by either party and the Company’s enforceable right to compensation only begins when the Company provides computing power to the mining pool operator. In exchange for providing computing power, the Company is entitled to a theoretical fractional share of the cryptoasset award the mining pool operator receives (less service fees to the mining pool operator which are recorded as a reduction of revenue) for successfully adding a block to the blockchain. The Company’s fractional share is based on the proportion of computing power the Company contributed to the mining pool operator to the total computing power contributed by all mining pool participants in solving the current algorithm. Providing computing power in cryptoasset transaction verification services is an output of the Company’s ordinary activities. The provision of providing such computing power is the only performance obligation in the Company’s contracts with mining pool operators and is satisfied over the time it takes to mine each block. The transaction consideration the Company receives, if any, is noncash consideration, which the Company receives on a daily basis and measures at fair value on the date received using the average price of the cryptoasset during the date, which is not materially different than the fair value at contract inception or the time the Company has earned the award from the pools. The consideration is all variable. Because validation awards are not known until a block is placed, the consideration is constrained until the mining pool operator successfully places a block (by being the first to solve an algorithm) and the Company receives confirmation of the consideration it will receive, at which time revenue is recognized. It is not probable that a significant reversal of revenue will occur. Fair value of the cryptoasset award received is determined using the quoted price on the Company’s primary exchange of the related cryptoasset. As noted above, the Company ceased all crypto mining operations and completed the sale of all crypto mining equipment in service on March 9, 2022.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	May 31, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Sparkpool Share Cancellation On June 6, 2022, through a letter agreement between the Company and Sparkpool, Sparkpool agreed to forfeit to the Company shares of Common Stock that had been issued pursuant to the service agreement executed on March 19, 2021, which is described in Note 10 - Stockholders' Equity (Deficit) . Sparkpool ceased providing the contracted services for the Company, and agreed to forfeit shares to compensate for future services that will not be rendered. As a result of this agreement, 4,965,432 shares of Common Stock were forfeited and canceled by the Company, reducing the number of shares of Common Stock outstanding. Marathon Digital Hosting Agreement On July 12, 2022, the Company entered into a five-year hosting contract with Marathon Digital Holdings, Inc. ("Marathon") for 200-Megawatts ("MW") of mining capacity. As a result of this arrangement, the Company will supply Marathon with 90 MW of hosting capacity at its facility in Texas and at least 110 MW of hosting capacity at its second facility in North Dakota. As part of this agreement, the Company has also provided Marathon with the option to increase hosting capacity utilizing up to an additional 70 MW in North Dakota, which would increase the total amount of hosting across all of the Company's facilities to 270 megawatts if the option is exercised. New Term Loan Agreement On July 25, 2022, Hosting entered into a Loan Agreement with Starion Bank (“Starion Lender”) and the Company as Guarantor (the “Starion Loan Agreement”). The Starion Loan Agreement provides for a term loan (the “Starion Term Loan”) in the principal amount of $15 million with a maturity date of July 25, 2027. The Starion Loan Agreement contains customary covenants, representations and warranties and events of default. Advances on the Starion Term Loan shall not exceed the principal total of $15 million. The first advance on the Starion Term Loan was made at the time the Starion Loan Agreement was entered into and was not to exceed 80% of the total principal amount of the Loan, or $12 million. The remaining 20% balance of this Loan shall be available for advance following Hosting's proof of 100% intended operating capacity at the Property. The Starion Loan Agreement provides for an interest rate of 6.50% per annum. The City of Jamestown, North Dakota and Stutsman County’s Economic Development Fund provides a multimillion-dollar economic development program, available to assist with expanding or relocating businesses. As part of financial packages, the Jamestown Stutsman Development Corporation (JSDC) makes direct loans, equity investments, and interest buy-downs to businesses. Contingent upon such incentives, the Company expects the effective interest rate of the Starion Term Loan to be less than 6.50% per annum after different state funds are applied to the Loan, pending final approval. Deferred financing costs related to the Starion Term Loan totals $10,000. The Loan is secured by a mortgage on the Property, and a security interest in the substantially all of the assets of Hosting as set forth in the Security Agreement dated as of July 25, 2022 by and between Hosting and the Starion Lender and a security interest in the form of a collateral assignment of the Company’s rights and interests in a master hosting agreement related to the Property and records and data relating thereto as set forth in the Security Agreement dated as of July 25, 2022 by and among Hosting, the Company as Grantor and the Starion Lender. In addition, the Company unconditionally guaranteed Hosting's obligations to the Starion Lender, including under the Starion Term Loan, pursuant to an Unlimited Commercial Corporate Guaranty of the Company dated as of July 25, 2022. VBT Term Loan Repayment On August 5, 2022, the VBT Term Loan was paid off in full and the VBT Term Loan Agreement and the associated VBT Mortgage were terminated. Land Purchase

BASIS OF PRESENTATION AND SIG_2

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	May 31, 2022
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation: The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). The accompanying consolidated financial statements of the Company include the accounts of the Company and its wholly owned and controlled subsidiaries. Consolidated subsidiaries results are included from the date the subsidiary was formed or acquired. Noncontrolling interests in consolidated subsidiaries in the consolidated financial statements represent non-controlling stockholders' proportionate share of the operations in such subsidiaries. Intercompany investments, balances and transactions have been eliminated in the consolidated financial statements. The Company’s consolidated operating subsidiaries include wholly-owned Shanghai Sparkly Ore Technology, Ltd, Applied Blockchain, Ltd., APLD-JTND Phase II, LLC, APLD-Rattlesnake Den I LLC, APLD-Rattlesnake Den II LLC, APLD Hosting, LLC, Applied Talent Resources LLC, as well the Company’s majority interest in 1.21 Gigawatts, LLC.
Use of Estimates	Use of Estimates
Revenue Recognition	Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers ("ASC 606"). The Company provides energized space to customers who locate their hardware within the Company’s co-hosting facility. All performance obligations are achieved simultaneously by providing the hosting environment for the customers’ operations. Hosting revenue is recorded monthly in fixed amounts, net of credits, based on the terms of the hosting agreements. Customer contracts include advance payment terms. Advanced payments are recorded as deferred revenue until the related service is provided.
Cash and Cash Equivalents	Cash and Cash Equivalents
Property and Equipment	Property and Equipment
Lease Accounting	Lease Accounting The Company accounts for its leases under ASC 842, Leases (“ASC 842”). Accordingly, the Company determines whether an arrangement contains a lease at the inception of the arrangement. If a lease is determined to exist, the term of such lease is assessed based on the date on which the underlying asset is made available for the Company’s use by the lessor. The Company’s assessment of the lease term reflects the non-cancelable term of the lease, inclusive of any rent-free periods and/or periods covered by early-termination options which the Company is reasonably certain of not exercising, as well as periods covered by renewal options which the Company is reasonably certain of exercising. The Company also determines lease classification as either operating or finance at lease commencement, which governs the pattern of expense recognition and the presentation reflected in the consolidated statements of operations over the lease term. For leases with a term exceeding 12 months, a lease liability is recorded on the Company’s consolidated balance sheet at lease commencement reflecting the present value of its fixed minimum payment obligations over the lease term. A corresponding right-of-use (“ROU”) asset equal to the initial lease liability is also recorded, adjusted for any prepaid rent and/or initial direct costs incurred in connection with execution of the lease and reduced by any lease incentives received. For purposes of measuring the present value of its fixed payment obligations for a given lease, the Company uses its incremental borrowing rate, determined based on information available at lease commencement, as rates implicit in its leasing arrangements are typically not readily determinable. The Company’s incremental borrowing rate reflects the rate it would pay to borrow and incorporates the term and economic environment of the associated lease. For the Company’s operating leases, fixed lease payments are recognized as lease expense on a straight-line basis over the lease term. For leases with an initial term of 12 months or less, any fixed lease payments are recognized on a straight-line basis over the lease term and are not recognized on the Company’s consolidated balance sheet as an accounting policy election. Leases qualifying for the short-term lease exception were insignificant. Variable lease costs are recognized as incurred.
Income Taxes	Income Taxes ASC Topic 740, Income Taxes, (“ASC 740”), clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The benefit of a tax position is recognized in the financial statements in the period during which based on all available evidence, management believes it is most likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure, and transition.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its consolidated financial statements and assures that there are proper controls in place to ascertain that the Company’s consolidated financial statements properly reflect the change. In August 2020, the FASB issued ASU No. 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) : Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, and it also simplifies the diluted earnings per share calculation in certain areas. This ASU is effective for annual reporting periods beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. This update permits the use of either the modified retrospective or fully retrospective method of transition. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements and related disclosures. In September 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, ASU 2016-13 eliminates the probable initial recognition threshold in current GAAP; and instead requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current GAAP; however, this ASU requires that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects companies holding financial assets and net investment in leases that are not accounted for at fair value through net income. The ASU 2016-13 amendments affect loans, debt securities, trade receivables, net investments in leases, off balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 was originally effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. In November 2019, the FASB approved a delay of the required implementation date of ASU 2016-13 for smaller reporting companies, including the Company, resulting in a required implementation date for the Company of June 1, 2023. Early adoption will continue to be permitted. We are currently evaluating the impact this ASU will have on its consolidated financial statements and related disclosures.
Cryptoassets	Cryptoassets Cryptoassets are included in current assets in the accompanying consolidated balance sheets. Cryptoassets are classified as indefinite-lived intangible assets in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles — Goodwill and Other, and are accounted for in connection with the Company’s revenue recognition policy detailed above and in Note 5 - Revenue from Contracts with Customers . Management will evaluate market conditions on a quarterly basis. When events or circumstance identified through this process indicate that cryptoassets may be impaired, they are tested for impairment. Impairment, if any, is recognized for the difference between the fair value of the underlying cryptoasset and the carrying amount of the cryptoasset. Fair value is measured using the quoted price of the cryptoasset at the time its fair value is being measured. Cryptoassets awarded to the Company through its mining activities are included within the operating activities in the accompanying consolidated statements of cash flows. Gains from the sales of cryptoassets are recorded in other income (expense) in the accompanying consolidated statements of operations. The Company accounts for its gains in accordance with the first in, first out (“FIFO”) method of accounting.
Crypto Mining Revenue	Cryptoasset mining revenue The Company had entered into cryptoasset mining pools by executing contracts with the mining pool operators to provide computing power to the mining pool. The contracts are terminable at any time by either party and the Company’s enforceable right to compensation only begins when the Company provides computing power to the mining pool operator. In exchange for providing computing power, the Company is entitled to a theoretical fractional share of the cryptoasset award the mining pool operator receives (less service fees to the mining pool operator which are recorded as a reduction of revenue) for successfully adding a block to the blockchain. The Company’s fractional share is based on the proportion of computing power the Company contributed to the mining pool operator to the total computing power contributed by all mining pool participants in solving the current algorithm. Providing computing power in cryptoasset transaction verification services is an output of the Company’s ordinary activities. The provision of providing such computing power is the only performance obligation in the Company’s contracts with mining pool operators and is satisfied over the time it takes to mine each block. The transaction consideration the Company receives, if any, is noncash consideration, which the Company receives on a daily basis and measures at fair value on the date received using the average price of the cryptoasset during the date, which is not materially different than the fair value at contract inception or the time the Company has earned the award from the pools. The consideration is all variable. Because validation awards are not known until a block is placed, the consideration is constrained until the mining pool operator successfully places a block (by being the first to solve an algorithm) and the Company receives confirmation of the consideration it will receive, at which time revenue is recognized. It is not probable that a significant reversal of revenue will occur. Fair value of the cryptoasset award received is determined using the quoted price on the Company’s primary exchange of the related cryptoasset.

BASIS OF PRESENTATION AND SIG_3

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	May 31, 2022
Accounting Policies [Abstract]
Schedule of Cash and Cash Equivalents	The following tables reconciles cash and cash equivalents and restricted cash to presentation on the balance sheet as of May 31, 2022, and May 31, 2021 (in thousands) May 31, 2022 May 31, 2021 Cash and Cash Equivalents $ 38,798 $ 11,750 Restricted Cash $ 7,501 $ — Total Cash and Cash Equivalents $ 46,299 $ 11,750

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	May 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, Net	Property and equipment consisted of the following as of May 31, 2022 and 2021: (in thousands) Estimated Useful Life May 31, May 31, Hosting Equipment Electric Generation and Transformers 15 years 4,338 — Other Equipment and Fixtures 5-7 years 588 21 Construction in Progress 18,305 — Information Systems and Software 5 years 9,608 — Land & Building Land 1,074 — Land Improvements 15 years 1,180 — Building 39 years 30,176 — Total cost of property and equipment 65,269 21 Accumulated Depreciation (1,009) (1) Property Plant and Equipment, Net $ 64,260 $ 20

REVENUE FROM CONTRACTS WITH C_2

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	12 Months Ended
	May 31, 2022
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 customer for the year ended May 31, 2022 and 2021. Year Ended May 31, Customer 2022 2021 Customer A 41 % — % Customer B 16 % — % Customer C 15 % — % Customer D 15 % — % Customer E 13 % — %
Schedule of Deferred Revenue	Changes in the Company's deferred revenue balances for the years ended May 31, 2022 and 2021, respectively, are shown in the following table: (in thousands) Balance at June 1, 2020 $ — Advance billings $ — Revenue recognized $ — Other adjustments $ — Balance at May 31, 2021 $ — Advance billings $ 12,426 Revenue recognized $ (8,549) Other adjustments $ — Balance at May 31, 2022 $ 3,877
Schedule of Customer Deposits	Changes in the Company's customer deposits balances for the years ended May 31, 2022 and 2021, respectively, are shown in the following table: (in thousands) Balance at June 1, 2020 $ — Customer deposits received $ — Customer deposits refunded $ — Balance at May 31, 2021 $ — Customer deposits received $ 9,524 Customer deposits refunded $ — Balance at May 31, 2022 $ 9,524

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	May 31, 2022
Debt Disclosure [Abstract]
Schedule of Maturities of Long-Term Debt	Below is a summary of the remaining principal payments due over the life of the VBT note as of May 31, 2022 Year Principal Payments (in thousands) FY23 $ 1,333 FY24 1,409 FY25 1,490 FY26 1,576 FY27 1,382 Total VBT Term Loan Remaining Payments $ 7,190
Schedule of Long-Term Debt Instruments	Below is a summary of total debt, including current debt and deferred financing fees related to the VBT Note, for the year ended May 31, 2022, and 2021. (in thousands) Year ended Year ended May 31, May 31, Term Loan Balance $7,324 $— Less: Deferred Issuance Costs (94) — Less: Current portion of Term Loan (1,333) — Long-term Portion of Term Loan $5,897 $—

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	May 31, 2022
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	The following table presents current and deferred tax expense for the year ended May 31, 2022, and 2021 Year ended Year ended May 31, May 31, Current expense (benefit) Federal $ — $ — Foreign — — State — — Total current benefit $ — $ — Deferred expense (benefit) Federal $ 540 $ — Foreign — — State — — Total deferred expense $ 540 — Total income tax expense $ 540 $ —
Schedule of Effective Income Tax Rate Reconciliation	The following table reconciles the statutory rate to our effective tax rate:: May 31, May 31, Expected income tax expense (benefit) at U.S. statutory rate 21.0 % 21 % Federal income tax benefit 0.6 % — % Permanent differences (0.9 %) — % Current and deferred state taxes 3.9 % — % Change in valuation allowance (27.0 %) (21.0 %) Income Tax Expense / (Benefit) (2.4 %) 0 %
Schedule of Deferred Tax Assets and Liabilities	The primary components of the temporary differences that gave rise to the Company’s deferred tax assets and liabilities are as follows for the year ended May 31, 2022, and 2021: May 31, May 31, Deferred Tax Assets: Intangibles $ 78 $ — Lease Adjustment 2,080 — Federal Net Operating Loss 9,158 175 Charitable Contributions 17 — Passthrough Entities 13 — Valuation Allowance (6,393) (175) Total Net Deferred Tax Asset $ 4,953 $ — Deferred Tax Liability Property, Plant, and Equipment $ (3,407) $ — Lease Adjustment (2,086) — Total Net Deferred Tax Asset $ (5,493) $ — Deferred Tax Liability, Net $ (540) $ —

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT) (Tables)	12 Months Ended
	May 31, 2022
Equity [Abstract]
Schedule of Scenarios Weighted to Estimate the Fair Value of Common Stock	The Company weighted two different scenarios as follow: Scenario Weight Public Company scenario (“listing scenario”) 95 % Remain a private Company scenario (“private scenario”) 5 %
Breakout of Service Providers Included in Share-Based Compensation Service Agreement and Shares Committed	Service Provider Common Stock Valuefinder 3,156,427 SparkPool 7,440,148 GMR 7,441,648 Total 18,038,223
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The fair value of the share-based compensation issued was calculated using the fair value of outstanding equity using the option pricing method, weighted as shown below. All shares issued under the agreement were vested immediately. Class of Stock Option Pricing Fair Value Weight Common Stock $ 0.402 8 % Conversion Price of Series C Shares 0.780 92 % Weighted-average fair value $ 0.750

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	May 31, 2022
Leases [Abstract]
Balance sheet presentation of lease assets and liabilities	Balance sheet presentation of lease assets and liabilities, net is as follows: Lease Type Consolidated Balance Sheet Presentation May 31, 2022 Operating Lease Assets Right of use asset, net $ 1,110 Finance lease assets Right of use asset, net 5,298 Total lease assets $ 6,408 Operating Lease liabilities Current portion of operating lease liability 191 Operating Lease liabilities Long-term portion of lease Liability 936 Total Operating Lease Liabilities $ 1,127 Finance lease liabilities Current portion of lease liability $ 813 Finance Lease liabilities Long-term portion of lease liability 4,374 Total Finance Lease Liabilities $ 5,187 Total lease liabilities $ 6,314
Summary of lease cost, supplemental cash flow and other information	The Company presents lease costs under ASC 842 is as follows: Lease Type Consolidated Statements of Operations Presentation Year Ended Operating lease expense Selling, General and Administrative $ 328 Finance lease expense: Amortization of ROU assets related to revenue production Cost of Sales 85 Amortization of ROU assets not related to revenue production Depreciation and Amortization Expense 26 Interest on finance leases Interest Expense 50 Short-term lease expense Selling, General and Administrative 126 Variable lease expense Selling, General and Administrative — Total Lease Cost $ 615 Supplemental cash flow and other information related to leases is as follows: Operating Leases Finance Leases Weighted-average years remaining 4 years 57 years Weighted-average discount rate 12.50 % 7.98 % Cash paid for the amounts included in the measurement of lease liabilities: Operating cash flows $ 310 $ 50 Financing cash flows $ — $ 221
Schedule of future minimum finance lease payments	The following table represents the Company’s future minimum operating lease payments as of May 31, 2022, under ASC 842 (in thousands): Year Operating Leases Finance Leases Total FY23 $ 318 $ 1,189 $ 1,507 FY24 326 1,193 1,519 FY25 334 558 892 FY26 342 169 511 FY27 144 174 318 Beyond — 87,324 87,324 Total $ 1,464 $ 90,607 $ 92,071 Present value of lease liabilities $ 1,127 $ 5,187 $ 6,314 Less: Current portion of lease liability $ 191 $ 813 $ 1,004 Long-term portion of lease liability $ 936 $ 4,374 $ 5,310
Schedule of future minimum operating lease payments	The following table represents the Company’s future minimum operating lease payments as of May 31, 2022, under ASC 842 (in thousands): Year Operating Leases Finance Leases Total FY23 $ 318 $ 1,189 $ 1,507 FY24 326 1,193 1,519 FY25 334 558 892 FY26 342 169 511 FY27 144 174 318 Beyond — 87,324 87,324 Total $ 1,464 $ 90,607 $ 92,071 Present value of lease liabilities $ 1,127 $ 5,187 $ 6,314 Less: Current portion of lease liability $ 191 $ 813 $ 1,004 Long-term portion of lease liability $ 936 $ 4,374 $ 5,310

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	May 31, 2022
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Earnings per share for the year ended May 31, 2022 and 2021 are shown in the following table: Basic and diluted income (loss) per share: Year Ended May 31, 2022 May 31, 2021 Net loss from continuing operations $ (22,486) $ (568) Net loss from discontinued operations, net of income taxes (1,044) — Net Loss including noncontrolling interests (23,530) (568) Net Loss attributable to noncontrolling interest 10 — Net loss attributable to Applied Blockchain $ (23,520) $ (568) Continuing operations $ (0.39) $ (0.38) Discontinued operations $ (0.02) $ — Basic and diluted net loss per share $ (0.41) $ (0.38) Basic and diluted weighted average number of shares outstanding 57,121,096 1,511,061

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	12 Months Ended
	May 31, 2022
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Operating results of discontinued operations are summarized below: Year Ended May 31, 2022 May 31, 2021 Cryptoasset Mining Revenue 3,038 — Mining Revenue Pool Fees 51 — Cryptoasset Mining Revenue, Net 2,987 — Cost of Sales 1,611 — Gross Profit 1,376 — Impairment of Cryptocurrency Assets (393) — Gain on Sale of Fixed Assets 1,229 — Loss on Asset Reclass to Discontinued Operations (3,256) — Net Loss from Discontinued Operations (1,044) — Year Ended Beginning Balance - May 31, 2021 $ — Cryptoassets earned through mining 3,038 Mining pool operating fees (51) Cryptoassets sold or converted (3,380) Impairment of Cryptocurrency Assets 393 Ending Balance - May 31, 2022 $ —

BUSINESS AND ORGANIZATION - Nar

BUSINESS AND ORGANIZATION - Narrative (Details) $ / shares in Units, $ in Millions			12 Months Ended
	Apr. 13, 2022 USD ($) $ / shares shares	Apr. 12, 2022	May 31, 2022 subsidiary	May 31, 2021 subsidiary
Subsidiary or Equity Method Investee [Line Items]
Number of subsidiaries				2
Number of subsidiaries created			5
Stock split		0.1667
IPO
Subsidiary or Equity Method Investee [Line Items]
Number of shares issued in IPO | shares	8,000,000
IPO price per share (in dollars per share) | $ / shares	$ 5
Consideration received on sale of stock | $	$ 36

LIQUIDITY AND FINANCIAL CONDI_2

LIQUIDITY AND FINANCIAL CONDITION (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Apr. 30, 2022	May 31, 2022	May 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents of continuing operations		$ 46,299	$ 11,750
Working capital		20,300
Initial public offering of common stock	$ 40,000	$ 40,000	$ 0

BASIS OF PRESENTATION AND SIG_4

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands	May 31, 2022	May 31, 2021
Accounting Policies [Abstract]
Restricted Cash	$ 7,501	$ 0

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	May 31, 2022	May 31, 2021
Accounting Policies [Abstract]
Cash and cash equivalents	$ 38,798	$ 11,750
Restricted Cash	7,501	0
Total Cash and Cash Equivalents	$ 46,299	$ 11,750

PROPERTY AND EQUIPMENT - Schedu

PROPERTY AND EQUIPMENT - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2022	May 31, 2021
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	$ 65,269	$ 21
Accumulated Depreciation	(1,009)	(1)
Property Plant and Equipment, Net	$ 64,260	20
Electric Generation and Transformers
Property, Plant and Equipment [Line Items]
Estimated Useful Life	15 years
Total cost of property and equipment	$ 4,338	0
Other Equipment and Fixtures
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	$ 588	21
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	$ 18,305	0
Information Systems and Software
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Total cost of property and equipment	$ 9,608	0
Land
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	$ 1,074	0
Land Improvements
Property, Plant and Equipment [Line Items]
Estimated Useful Life	15 years
Total cost of property and equipment	$ 1,180	0
Building
Property, Plant and Equipment [Line Items]
Estimated Useful Life	39 years
Total cost of property and equipment	$ 30,176	$ 0

PROPERTY AND EQUIPMENT - Narrat

PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2022	May 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 1,000	$ 1

REVENUE FROM CONTRACTS WITH C_3

REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Concentration Risk by Major Customer (Details) - Revenue Benchmark - Customer Concentration Risk	12 Months Ended
	May 31, 2022	May 31, 2021
Customer A
Concentration Risk [Line Items]
Concentration risk	41%	0%
Customer B
Concentration Risk [Line Items]
Concentration risk	16%	0%
Customer C
Concentration Risk [Line Items]
Concentration risk	15%	0%
Customer D
Concentration Risk [Line Items]
Concentration risk	15%	0%
Customer E
Concentration Risk [Line Items]
Concentration risk	13%	0%

REVENUE FROM CONTRACTS WITH C_4

REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) $ in Millions	May 31, 2022 USD ($)
Revenue, Major Customer [Line Items]
Revenue, remaining performance obligation, amount	$ 3.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-06-01
Revenue, Major Customer [Line Items]
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 ($)	12 Months Ended
	May 31, 2022	May 31, 2021
Contract with Customer, Liability [Roll Forward]
Balance, beginning of the period	$ 0	$ 0
Advance billings	12,426,000	0
Revenue recognized	(8,549,000)	0
Other adjustments	0	0
Balance, end of the period	$ 3,877,000	$ 0

REVENUE FROM CONTRACTS WITH C_6

REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Customer Deposits (Details) - USD ($)	12 Months Ended
	May 31, 2022	May 31, 2021
Customer Deposits [Roll Forward]
Balance, beginning of period	$ 0	$ 0
Customer deposits received	9,524,000	0
Customer deposits refunded	0	0
Balance, end of period	$ 9,524,000	$ 0

RELATED PARTY TRANSACTIONS - Na

RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions		12 Months Ended
	Jun. 12, 2021	May 31, 2022	May 31, 2021
Note Payable [Line Items]
Loss on extinguishment of debt		$ 1,342	$ 0
Affiliated Entity
Note Payable [Line Items]
Notes payable, related parties	$ 470
Debt conversion, converted instrument, shares issued, fair value, per share (in dollars per share)	$ 0.75
Loss on extinguishment of debt	$ 1,300
Affiliated Entity | Minority Member of 1.21 Gigawatts
Note Payable [Line Items]
Revenue from customer		3,500	0
Advance billings		1,700	0
Due to related parties		$ 1,700	$ 0
Affiliated Entity | Convertible Common Stock
Note Payable [Line Items]
Debt conversion, converted instrument, shares issued (in shares)	5.1
Affiliated Entity | Interest Payable
Note Payable [Line Items]
Due to related parties	$ 1,600

DEBT - Narrative (Details)

DEBT - Narrative (Details) - USD ($)	12 Months Ended
	May 31, 2022	Mar. 11, 2022	May 31, 2021
Letter of Credit
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity	$ 7,500,000		$ 0
Vantage Bank Texas (VBT) Promissory Note | Medium-term Notes
Debt Instrument [Line Items]
Promissory note amount		$ 7,500,000
Term	5 years
Interest rate		5%
Debt instrument, interest rate, effective percentage	5.60%		0%
Debt issuance costs, gross	$ 93,939

DEBT - Schedule of Maturities o

DEBT - Schedule of Maturities of Long-Term Debt (Details) $ in Thousands	May 31, 2022 USD ($)
Debt Instrument [Line Items]
Total VBT Term Loan Remaining Payments	$ 7,190
Vantage Bank Texas (VBT) Promissory Note | Medium-term Notes
Debt Instrument [Line Items]
FY23	1,333
FY24	1,409
FY25	1,490
FY26	1,576
FY27	$ 1,382

DEBT - Schedule of Long-Term De

DEBT - Schedule of Long-Term Debt Instruments (Details) - Vantage Bank Texas (VBT) Promissory Note - Medium-term Notes - USD ($) $ in Thousands	May 31, 2022	May 31, 2021
Debt Instrument [Line Items]
Term Loan Balance	$ 7,324	$ 0
Less: Deferred Issuance Costs	(94)	0
Less: Current portion of Term Loan	(1,333)	0
Long-term Portion of Term Loan	$ 5,897	$ 0

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2022	May 31, 2021
Operating Loss Carryforwards [Line Items]
Income tax expenses	$ 540	$ 0
Effective income tax rate reconciliation, percent	(2.40%)	0%
Increase in valuation allowance	$ 6,200	$ 120
Unrecognized tax benefits	0	0
Income tax penalties and interest expense	0	0
Federal
Operating Loss Carryforwards [Line Items]
Federal tax net operating losses	$ 35,600	$ 568

INCOME TAXES - Schedule of Comp

INCOME TAXES - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2022	May 31, 2021
Current expense (benefit)
Federal	$ 0	$ 0
Foreign	0	0
State	0	0
Total current benefit	0	0
Deferred expense (benefit)
Federal	540	0
Foreign	0	0
State	0	0
Total deferred expense	540	0
Total income tax expense	$ 540	$ 0

INCOME TAXES - Schedule of Effe

INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	May 31, 2022	May 31, 2021
Income Tax Disclosure [Abstract]
Expected income tax expense (benefit) at U.S. statutory rate	21%	21%
Federal income tax benefit	0.60%	0%
Permanent differences	(0.90%)	0%
Current and deferred state taxes	3.90%	0%
Change in valuation allowance	(27.00%)	(21.00%)
Income Tax Expense / (Benefit)	(2.40%)	0%

INCOME TAXES - Schedule of Defe

INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	May 31, 2022	May 31, 2021
Deferred Tax Assets:
Intangibles	$ 78	$ 0
Lease Adjustment	2,080	0
Federal Net Operating Loss	9,158	175
Charitable Contributions	17	0
Passthrough Entities	13
Valuation Allowance	(6,393)	(175)
Total Net Deferred Tax Asset	4,953
Deferred Tax Liability
Property, Plant, and Equipment	(3,407)	0
Lease Adjustment	(2,086)	0
Total Net Deferred Tax Asset	(5,493)	0
Deferred Tax Liability, Net	$ (540)	$ 0

REDEEMABLE EQUITY - Narrative (

REDEEMABLE EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Apr. 12, 2022	May 31, 2022	May 31, 2021	May 31, 2020
Temporary Equity [Line Items]
Issuance of preferred stock		$ 34,500	$ 16,500
Issuance Costs of Series D preferred Stock		$ 2,927	$ 1,365
Series C Convertible Preferred Stock
Temporary Equity [Line Items]
Temporary equity outstanding (in shares)		0	660,000	0
Conversion price (in dollars per share)		$ 0.75
Conversion of stock, shares converted (in shares)	685,633
Shares converted to settle PIK dividends	25,633
Conversion of stock, shares issued (in shares)	22,865,857
Issuance of Preferred Stock (in shares)			660,000
Issuance of preferred stock			$ 16,500
Issuance Costs of Series D preferred Stock			$ 1,365
Series C Convertible Preferred Stock | Dividend rate, option one | Minimum
Temporary Equity [Line Items]
Paid-in-kind dividend rate			10%
Series C Convertible Preferred Stock | Dividend rate, option one | Maximum
Temporary Equity [Line Items]
Paid-in-kind dividend rate			15%
Series C Convertible Preferred Stock | Dividend rate, option two
Temporary Equity [Line Items]
Paid-in-kind dividend rate	12%
Series D Convertible Preferred Stock
Temporary Equity [Line Items]
Temporary equity outstanding (in shares)		0	0	0
Paid-in-kind dividend rate	12%
Conversion price (in dollars per share)		$ 2.64
Conversion of stock, shares converted (in shares)	1,433,587
Shares converted to settle PIK dividends	53,587
Conversion of stock, shares issued (in shares)	13,575,634
Issuance of Preferred Stock (in shares)		1,380,000
Issuance of preferred stock		$ 34,500
Issuance Costs of Series D preferred Stock		$ 2,927

STOCKHOLDERS' EQUITY (DEFICIT_2

STOCKHOLDERS' EQUITY (DEFICIT) - Additional Information (Details) $ / shares in Units, $ in Millions	Jan. 18, 2022 USD ($) shares	Jan. 14, 2022 USD ($) shares	Jun. 12, 2021 $ / shares shares	May 31, 2022 $ / shares shares	Oct. 09, 2021 plan	May 31, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares authorized (in shares)				166,666,667		166,666,667
Common stock, par value (in dollars per share) | $ / shares				$ 0.001		$ 0.001
Common stock, shares outstanding (in shares)				97,837,798		1,511,061
Number of equity incentive plans | plan					2
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)		1,791,666
Fair value of RSUs | $	$ 11	$ 14.4
Restricted Stock Units (RSUs) | Nonemployee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)	600,000
Grants in period per individual (in shares)	100,000
Restricted Stock Units (RSUs) | Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)	766,666
Series A Convertible Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock, convertible, shares issuable per share (in shares)			1,429
Preferred stock dividend rate			8%
Dividends, paid-in-kind, percent			10%
Shares issued upon conversion (in shares)			6,809,833
Liquidation value (in dollars per share) | $ / shares			$ 100
Series B Convertible Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock, convertible, shares issuable per share (in shares)			1,000
Preferred stock dividend rate			8%
Dividends, paid-in-kind, percent			10%
Shares issued upon conversion (in shares)			6,809,833
Liquidation value (in dollars per share) | $ / shares			$ 100
Series C Convertible Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock, convertible, shares issuable per share (in shares)			1,000
Dividends, paid-in-kind, percent			10%
Liquidation preference (in dollars per share) | $ / shares				$ 25
Series D Convertible Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock, convertible, shares issuable per share (in shares)			1,000
Dividends, paid-in-kind, percent			10%
Liquidation preference (in dollars per share) | $ / shares				$ 25

STOCKHOLDERS' EQUITY (DEFICIT_3

STOCKHOLDERS' EQUITY (DEFICIT) - Schedule of Scenarios Weighted to Estimate the Fair Value of Common Stock (Details)	May 31, 2022
Listing Scenario
Class of Stock [Line Items]
Common Stock, fair value assumption, scenario weight	95%
Private Scenario
Class of Stock [Line Items]
Common Stock, fair value assumption, scenario weight	5%

STOCKHOLDERS' EQUITY (DEFICIT_4

STOCKHOLDERS' EQUITY (DEFICIT) - Breakout of Service Providers Included in Service Agreement and Shares Committed (Details) - shares	May 31, 2022	Jun. 30, 2021	May 31, 2021
Class of Stock [Line Items]
Common stock, shares issued (in shares)	97,837,798	18,038,223	1,511,061
Valuefinder
Class of Stock [Line Items]
Common stock, shares issued (in shares)		3,156,427
SparkPool
Class of Stock [Line Items]
Common stock, shares issued (in shares)		7,440,148
GMR
Class of Stock [Line Items]
Common stock, shares issued (in shares)		7,441,648

STOCKHOLDERS' EQUITY (DEFICIT_5

STOCKHOLDERS' EQUITY (DEFICIT) - Schedule of Option Pricing Assumptions (Details)	May 31, 2022 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option Pricing Fair Value (in dollars per share)	$ 0.750
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option Pricing Fair Value (in dollars per share)	$ 0.402
Weight	8%
Series C Convertible Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option Pricing Fair Value (in dollars per share)	$ 0.780
Weight	92%

LEASES - Narrative (Details)

LEASES - Narrative (Details) - USD ($) $ in Thousands	May 31, 2022	May 31, 2021
Leases [Abstract]
Right of use asset, net	$ 6,408	$ 0
Lease liability	$ 6,314	$ 0

LEASES - Balance sheet presenta

LEASES - Balance sheet presentation of lease assets and liabilities (Details) - USD ($) $ in Thousands	May 31, 2022	May 31, 2021
Lease Assets
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Total lease assets
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Total lease assets
Operating Lease Assets	$ 1,110
Finance lease assets	5,298
Total lease assets	$ 6,408	$ 0
Operating Lease Liabilities
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Current portion of lease liability
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Long-term portion of lease liability
Operating Lease liabilities	$ 191
Operating Lease, Liability, Noncurrent	936
Total Operating Lease Liabilities	$ 1,127
Finance Lease Liabilities
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Current portion of lease liability
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Long-term portion of lease liability
Finance lease liabilities	$ 813
Long-term portion of lease liability	4,374
Total Finance Lease Liabilities	5,187
Total lease liabilities	$ 6,314	$ 0

LEASES - Summary of lease cost

LEASES - Summary of lease cost (Details) $ in Thousands	12 Months Ended
	May 31, 2022 USD ($)
Lessee, Lease, Description [Line Items]
Operating lease expense	$ 328
Finance lease expense:
Interest on finance leases	50
Short-term lease expense	126
Variable lease expense	0
Total Lease Cost	615
Cost of Sales
Finance lease expense:
Amortization of ROU assets	85
Depreciation and Amortization Expense
Finance lease expense:
Amortization of ROU assets	$ 26

LEASES - Schedule of future min

LEASES - Schedule of future minimum lease payments (Details) - USD ($) $ in Thousands	May 31, 2022	May 31, 2021
Operating Leases
FY23	$ 318
FY24	326
FY25	334
FY26	342
FY27	144
Beyond	0
Total	1,464
Present value of lease liabilities	1,127
Less: Current portion of lease liability	191
Long-term portion of lease liability	936
Finance Leases
FY23	1,189
FY24	1,193
FY25	558
FY26	169
FY27	174
Beyond	87,324
Total	90,607
Present value of lease liabilities	5,187
Less: Current portion of lease liability	813
Long-term portion of lease liability	4,374
Total
FY23	1,507
FY24	1,519
FY25	892
FY26	511
FY27	318
Beyond	87,324
Total	92,071
Total lease liabilities	6,314	$ 0
Less: Current portion of lease liability	1,004	0
Long-term portion of lease liability	$ 5,310	$ 0

LEASES - Summary of supplementa

LEASES - Summary of supplemental cash flow and other information (Details) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2022	May 31, 2021
Leases [Abstract]
Operating lease, weighted average remaining lease term	4 years
Finance lease, weighted average remaining lease term	57 years
Operating lease, weighted average discount rate	12.50%
Finance lease, weighted average discount rate	7.98%
Operating cash flows, operating lease	$ 310	$ 0
Operating cash flows, finance lease	50
Financing cash flows	$ 221	$ 0

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	May 31, 2022	May 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Contractual obligation	$ 24,200
Service contract, term	5 years
Power purchased	$ 8,100	$ 0
Other commitment	$ 0

EARNINGS PER SHARE - Schedule o

EARNINGS PER SHARE - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	May 31, 2022	May 31, 2021
Earnings Per Share [Abstract]
Net loss from continuing operations	$ (22,486)	$ (568)
Net loss from discontinued operations, net of income taxes	(1,044)	0
Net loss including noncontrolling interests	(23,530)	(568)
Net Loss attributable to noncontrolling interest	10	0
Net loss attributable to Applied Blockchain	$ (23,520)	$ (568)
Continuing Operations - basic ( in dollars per share)	$ (0.39)	$ (0.38)
Continuing Operations - diluted ( in dollars per share)	(0.39)	(0.38)
Discontinued Operations - basic ( in dollars per share)	(0.02)	0
Discontinued Operations - diluted ( in dollars per share)	(0.02)	0
Basic net loss per share (in dollars per share)	(0.41)	(0.38)
Diluted net loss per share (in dollars per share)	$ (0.41)	$ (0.38)
Basic weighted average number of shares outstanding (in shares)	57,121,096	1,511,061
Diluted weighted average number of shares outstanding (in shares)	57,121,096	1,511,061

DISCONTINUED OPERATIONS - Narra

DISCONTINUED OPERATIONS - Narrative (Details) - Discontinued Operations, Held-for-sale - Mining Segment - Mining Segment - USD ($)	3 Months Ended		12 Months Ended
	May 31, 2022	May 31, 2021	May 31, 2022	May 31, 2021	Mar. 09, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of equipment					$ 1,600,000
Cryptoassets	$ 0	$ 0	$ 0	$ 0
Impairment of cryptocurrency assets	$ 393,000	$ 0	$ 393,000	$ 0

DISCONTINUED OPERATIONS - Opera

DISCONTINUED OPERATIONS - Operating Results (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	May 31, 2022	May 31, 2021	May 31, 2022	May 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net Loss from Discontinued Operations			$ (1,044)	$ 0
Discontinued Operations, Held-for-sale | Mining Segment | Mining Segment
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cryptoasset Mining Revenue	$ 3,038	$ 0
Mining Revenue Pool Fees	51	0	51
Cryptoasset Mining Revenue, Net	2,987	0
Cost of Sales	1,611	0
Gross Profit	1,376	0
Impairment of Cryptocurrency Assets	(393)	0	$ (393)	$ 0
Gain on Sale of Fixed Assets	1,229	0
Loss on Asset Reclass to Discontinued Operations	(3,256)	0
Net Loss from Discontinued Operations	$ (1,044)	$ 0

DISCONTINUED OPERATIONS - Crypt

DISCONTINUED OPERATIONS - Cryptoasset Activity (Details) - Discontinued Operations, Held-for-sale - Mining Segment - Mining Segment - USD ($)	3 Months Ended		12 Months Ended
	May 31, 2022	May 31, 2021	May 31, 2022	May 31, 2021
Disposal Group, Including Discontinued Operation, Intangible Assets [Roll Forward]
Beginning balance			$ 0
Cryptoassets earned through mining			3,038,000
Mining pool operating fees	$ (51,000)	$ 0	(51,000)
Cryptoassets sold or converted			(3,380,000)
Impairment of Cryptocurrency Assets	393,000	0	393,000	$ 0
Ending balance	$ 0	$ 0	$ 0	$ 0

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details)			12 Months Ended
	Aug. 08, 2022 USD ($) a	Jul. 12, 2022 MW	May 31, 2022	Aug. 15, 2022 MW	Jul. 25, 2022 USD ($)	Jun. 06, 2022 shares
Subsequent Event [Line Items]
Service contract, term			5 years
Forecast
Subsequent Event [Line Items]
Building				200
Subsequent Event
Subsequent Event [Line Items]
Service contract, term		5 years
Mining capacity		200
Mining capacity, maximum		270
Area of land | a	40
Land purchased | $	$ 1,000,000
Subsequent Event | Loan Agreement | Medium-term Notes
Subsequent Event [Line Items]
Term loan | $					$ 15,000,000
Advance threshold, percent					80%
First advance threshold, amount | $					$ 12,000,000
Advance threshold remaining, percent					20%
Intended operating capacity, percent					100%
Interest rate					6.50%
Less: Deferred Issuance Costs | $					$ 10,000
Subsequent Event | TEXAS
Subsequent Event [Line Items]
Mining capacity		90
Subsequent Event | NORTH DAKOTA
Subsequent Event [Line Items]
Mining capacity		110
Additional mining capacity		70
Subsequent Event | SparkPool
Subsequent Event [Line Items]
Stock forfeited and canceled (in shares) | shares						4,965,432