EARNINGS PER SHARE

12 Months Ended

May 31, 2023

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. As of May 31, 2023, the Company had approximately 12.8 million shares of granted but unvested restricted stock and restricted stock units that would have a potentially dilutive effect on earnings per share.

Earnings per share for the year ended May 31, 2023 and 2022 are shown in the following table:


(in thousands, except for share and per share data)	Fiscal Year Ended
	May 31, 2023		May 31, 2022
Net loss from continuing operations	$	(45,606)	$	(22,486)
Net loss from discontinued operations, net of income taxes	—		(1,044)
Net Loss including noncontrolling interests	(45,606)		(23,530)
Net Loss attributable to noncontrolling interest	(960)		(10)
Net loss attributable to Applied Digital Corporation	$	(44,646)	$	(23,520)
Continuing operations	$	(0.49)	$	(0.39)
Discontinued operations	$	—	$	(0.02)
Basic and diluted net loss per share	$	(0.49)	$	(0.41)
Basic and diluted weighted average number of shares outstanding	93,976,233		57,121,096