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


	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		—