v3.25.2
Business Segments
 12 Months Ended
May 31, 2025
Segment Reporting [Abstract]  
Business Segments Business Segments
The Company's business is made up of two operating segments: the Data Center Hosting Business and the HPC Hosting Business. These segments represent management's view of the business for which separate financial information is available and evaluated regularly by the Chief Operating Decision Maker ("CODM"), which is the Company’s Chief Executive Officer.
The Company's CODM evaluates performance and makes operating decisions primarily based on revenue and segment profit (loss) on a consolidated basis and for each of the Company's reportable segments. Operating results by segment include costs or expenses directly attributable to each segment, which include selling, general, and administrative expenses, (gain)/loss on classification of held for sale, (gain)/loss on sale of assets, and (gain)/loss from legal settlement. The Company derives the segment results from its internal management reporting system. The accounting policies the Company uses to derive reportable segment results are the same as those used for external reporting purposes. Segment revenues and segment profit are regularly reviewed by the CODM and compared against historical results, forecast and budget information in order to make decisions about how to allocate capital and other resources to each segment.
The Company does not allocate loss on conversion of debt, loss on change in fair value of debt, loss on change in fair value of related party debt, loss on change in fair value of warrants, loss on change in fair value of related party warrants, loss on legal settlement, or income tax expense to these segments for internal reporting purposes, as the Company does not believe that allocating these expenses is beneficial in evaluating segment performance. The "Other" includes corporate related items not allocated to reportable segments for purposes of making operating decisions or assessing financial performance.
In accordance with applicable accounting guidance, the results of the Cloud Services Business are presented as discontinued operations in the consolidated statements of operations and, as such, have been excluded from both continuing operations and segment results for all periods presented. See "Note 5 - Discontinued Operations" for operations and segment results for the Cloud Services Business.
The following tables present segment information, including revenue by segment and segment profit (loss) for the fiscal years ended May 31, 2025, 2024, and 2023 (in thousands):
Fiscal Year Ended May 31, 2025
Data Center Hosting Business
HPC Hosting Business
Revenue$142,267 $— 
Related party revenue1,926 — 
Total segment revenue
144,193 — 
Costs and expenses
Cost of revenues100,744 143 
Selling, general and administrative3,006 11,943 
(Gain) on classification of held for sale
(24,616)— 
Loss on sale of assets1,132 — 
Total costs and expenses80,266 12,086 
Segment profit (loss)
$63,927 $(12,086)
Fiscal Year Ended May 31, 2024
Data Center Hosting Business
HPC Hosting Business
Revenue$121,858 $— 
Related party revenue14,761 — 
Total segment revenue
136,619 — 
Costs and expenses
Cost of revenues106,023 50 
Selling, general and administrative10,367 4,761 
Loss on classification of held for sale15,417 — 
Total costs and expenses131,807 4,811 
Segment profit (loss)
$4,812 $(4,811)
Fiscal Year Ended May 31, 2023
Data Center Hosting Business
HPC Hosting Business
Revenue$40,984 $— 
Related party revenue14,408 — 
Total segment revenue
55,392 — 
Costs and expenses
Cost of revenues44,374 — 
Selling, general and administrative29,200 246 
Total costs and expenses73,574 246 
Segment loss
$(18,182)$(246)
The following table presents a reconciliation to net loss from continuing operations before income tax expense (in thousands):
Fiscal Year Ended
May 31, 2025May 31, 2024May 31, 2023
Segment profit (loss)
Data Center Hosting Business
$63,927 $4,812 $(18,182)
HPC Hosting Business(12,086)(4,811)(246)
Total segment profit (loss)
51,841 1 (18,428)
Other (1)
(68,686)(32,853)(24,483)
Operating loss(16,845)(32,852)(42,911)
Interest expense, net14,739 17,708 2,006 
Loss on conversion of debt
33,612 — — 
Loss on change in fair value of debt
85,439 7,401 — 
Loss on change in fair value of related party debt
— 8,116 — 
Loss on extinguishment of debt
1,177 — 94 
Loss on extinguishment of related party debt
— 2,507 — 
Loss on change in fair value of warrants
6,421 — — 
Loss on change in fair value of related party warrants
— 5,696 — 
Net loss from continuing operations before income tax expense
$(158,233)$(74,280)$(45,011)
(1)Other includes corporate related items not allocated to reportable segments.
We also provide the following additional segment disclosures (in thousands):
Fiscal Year Ended
May 31, 2025May 31, 2024May 31, 2023
Depreciation and amortization:
Data Center Hosting Business
$13,312 $19,948 $7,025 
HPC Hosting Business
3,733 1,233 59 
Other (1)
244 296 29 
Total depreciation and amortization (2)
$17,289 $21,477 $7,113 
Capital expenditures:
Data Center Hosting Business
$9,320 $38,266 $135,946 
HPC Hosting Business
976,506 207,299 9,813 
Other (1)
— 4,291 (1,164)
Total capital expenditures$985,826 $249,856 $144,595 
(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, 2025May 31, 2024
Data Center Hosting Business
$141,764 $145,222 
HPC Hosting Business
1,363,341 220,648 
Total segment assets1,505,105 365,870 
Cloud Services Business (Discontinued operations)
304,466 374,216 
Other (1)
60,519 22,781 
Total assets$1,870,090 $762,867 
(1) Other includes corporate related items not allocated to reportable segments.