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Business Segments (Tables)

12 Months Ended

May 31, 2024

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Revenue by segment (excluding the HPC Hosting Business as that segment has no revenue) was as follows (in thousands):

			Fiscal year ended
			May 31, 2024						May 31, 2023
Data Center Hosting Business			$	136,618					$	55,392
Cloud Services Business			28,957						—
Total revenue			$	165,575					$	55,392

We also provide the following additional segment disclosures (in thousands):

			Fiscal year ended
			May 31, 2024						May 31, 2023
Depreciation and amortization:
Data Center Hosting Business			$	19,948					$	7,025
Cloud Services Business			57,883						154
HPC Hosting Business			1,233						59
Other (1)			296						29
Total depreciation and amortization (2)			$	79,360					$	7,267
Capital expenditures:
Data Center Hosting Business			$	38,266					$	135,946
Cloud Services Business			80,082						390
HPC Hosting Business			207,299						9,813
Other (1)			$	4,291					$	(1,164)
Total capital expenditures			$	329,938					$	144,985

(1)Other includes corporate related items not allocated to reportable segments.

(2)Includes amortization of the finance lease right-of-use assets.

Information on segment assets and a reconciliation to consolidated assets are as follows (in thousands):

			Fiscal year ended
			May 31, 2024						May 31, 2023
Data Center Hosting Business			$	145,222					$	224,447
Cloud Services Business			374,216						3,127
HPC Hosting Business			220,648						10,949
Total segment assets			740,086						238,523
Other (1)			22,781						25,434
Total assets			$	762,867					$	263,957

(1) Other includes corporate related items not allocated to reportable segments.

Schedule of Segment Profit and a Reconciliation to Net Income (Loss) Before Income Tax Expenses

Segment profit (loss) and a reconciliation to net loss before income tax expenses is as follows (in thousands):

			Fiscal year ended
			May 31, 2024						May 31, 2023
Segment profit (loss)
Data Center Hosting Business (1)			$	4,660					$	(18,252)
Cloud Services Business			(65,781)						(1,091)
HPC Hosting Business			(4,817)						(246)
Total segment loss			(65,938)						(19,589)
Other (2)			(33,085)						(24,466)
Operating loss			(99,023)						(44,055)
Interest expense, net			26,832						1,980
Change in fair value of debt			7,401						—
Change in fair value of related party debt			13,812						—
Loss on debt extinguishment			2,507						94
Net loss before income tax expenses			$	(149,575)					$	(46,129)

(1)The fiscal year ended May 31, 2024 includes $21.7 million loss on held for sale classification related to the sale of the Garden City facility, as well as $2.8 million of accelerated depreciation and $1.4 million of accelerated amortization related to damaged transformers at the Company’s Ellendale facility that have been rendered obsolete. See "Note 5 - Asset Disposition" and "Note 3 - Property and Equipment", respectively, for further discussion of these events.

(2)Other includes corporate related items not allocated to reportable segments.

X

- Definition

Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment.

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- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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