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Discontinued Operations | 12 Months Ended
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May 31, 2025
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations During the year ended May 31, 2025, the Company determined that the Cloud Services Business met the criteria to be classified as “held for sale,” as the Board of Directors approved further plans for the sale of the segment. The potential sale of the Cloud Services Business represents a strategic shift in the Company’s operations and financial results. As such, the Company reported the Cloud Services Business as discontinued operations for the fiscal year ended May 31, 2025 in accordance with ASC 205-20, Discontinued Operations. The Company expects the sale of the Cloud Services Business to occur within 12 months from the date it met the held for sale criteria. The financial results of the Cloud Services Business are presented as net loss from discontinued operations on the consolidated statements of operations. The following table presents the major components of the financial results of the Cloud Services Business for the periods presented (in thousands):
| Fiscal Year Ended
| May 31, 2025 |  | May 31, 2024 |  | May 31, 2023
Revenue | $ | 84,376 |  |  | $ | 28,957 |  |  | $ | — |
Cost of revenues | 115,308 |  |  | 41,687 |  |  | — |
Selling, general and administrative | 24,813 |  |  | 52,756 |  |  | 1,091 |
(Gain) on abandonment of assets | (414) |  |  | — |  |  | — |
Operating loss from discontinued operations | (55,331) |  |  | (65,486) |  |  | (1,091) |
Interest expense | 17,399 |  |  | 9,809 |  |  | 27 |
Net loss from discontinued operations before income tax expense | (72,730) |  |  | (75,295) |  |  | (1,118) |
Income tax expense | — |  |  | — |  |  | — |
Net loss from discontinued operations | $ | (72,730) |  |  | $ | (75,295) |  |  | $ | (1,118) |
As of May 31, 2025, the assets and liabilities of the Cloud Services Business are classified as current in our consolidated balance sheets, as it is probable that the sale will occur within one year. The following table represents the aggregated carrying amounts of classes of assets and liabilities that are classified as held for sale on the consolidated balance sheets for the periods presented (in thousands):
| Fiscal Year Ended
| May 31, 2025 |  | May 31, 2024
Assets: |  |  |
Cash and cash equivalents | $ | 2,398 |  |  | $ | — |
Accounts receivable | 3,788 |  |  | — |
Prepaid expenses and other current assets | 223 |  |  | 333 |
Property and equipment, net | 10,922 |  |  | 11,278 |
Operating lease right of use asset, net | 91,374 |  |  | 152,090 |
Finance lease right of use asset, net | 195,495 |  |  | 209,933 |
Other assets | — |  |  | 581 |
Total current assets held for sale | 304,200 |  |  | 374,215 |
Liabilities: |  |  |
Accounts payable | 3,962 |  |  | 11,589 |
Accrued liabilities | 572 |  |  | 1,580 |
Current portion of operating lease liability | 16,093 |  |  | 21,101 |
Current portion of finance lease liability | 133,406 |  |  | 102,400 |
Current deferred revenue | 3,594 |  |  | 31,178 |
Long-term portion of operating lease liability | 58,420 |  |  | 108,668 |
Long-term portion of finance lease liability | — |  |  | 59,907 |
Total current liabilities held for sale | $ | 216,047 |  |  | $ | 336,423 |
The following table presents significant non-cash items and capital expenditures of discontinued operations for the periods presented (in thousands):
| Fiscal Year Ended
| May 31, 2025 |  | May 31, 2024 |  | May 31, 2023
Depreciation and amortization | $ | 80,656 |  |  | $ | 57,883 |  |  | $ | 154 |
Stock-based compensation | (1,463) |  |  | 10,135 |  |  | — |
Purchases of property and equipment and other assets | (190) |  |  | (10,600) |  |  | (260) |
Finance lease prepayments | 1,190 |  |  | (46,378) |  |  | — |
Operating right-of-use assets obtained by lease obligation | 20,280 |  |  | 158,508 |  |  | — |
Finance right-of-use assets obtained by lease obligation | 64,358 |  |  | 217,818 |  |  | 3,021 |
Property and equipment in AP and accrued liabilities | 1,387 |  |  | 1,172 |  |  | — |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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