v3.26.1
Income Taxes (Tables) - Applied Digital Cloud Corporation [Member]
 12 Months Ended
May 31, 2025
Restructuring Cost and Reserve [Line Items]  
Schedule of Income Taxes Expenses

Income tax expense for the fiscal years ended May 31, 2025 and 2024 consisted of the following (in thousands):

 

   May 31, 2025   May 31, 2024 
Current expense (benefit)          
Federal  $—  $— 
Foreign   —    — 
State   —    — 
Total current expense  $—    — 
Deferred expense (benefit)          
Federal  $—    — 
Foreign   —    — 
State   —    — 
Total deferred (benefit) expense   —    — 
Total income tax (benefit) expense  $—   $— 
Schedule of Effective Income Tax Rate

The following table reconciles the statutory rate to our effective tax rate for the fiscal years ended May 31, 2025 and 2024:

 

   May 31, 2025   May 31, 2024 
Expected income tax rate at the U.S. statutory rate   21.0%   21.0%
Stock-based compensation   0.1%   4.4%
State income taxes, net of federal tax benefit   4.4%   4.4%
Change in valuation allowance   (25.5)%   (29.8)%
Effective income tax rate   —%   —%
Schedule of Deferred Tax Assets and Liabilities

 

   May 31, 2025   May 31, 2024 
Deferred tax assets          
Net operating loss  $43,712   $25,252 
Lease liability   18,903    32,920 
Interest disallowance carryforward   6,800    2,420 
Other   (305)   190 
Deferred tax assets, gross   69,110    60,782 
Less: valuation allowance   (41,228)   (22,726)
Total deferred tax assets, net  $27,882   $38,056 
           
Deferred tax liabilities          
Property and equipment  $(4,702)  $527 
Right of use assets   (23,180)   (38,583)
Total deferred tax liability, net   (27,882)   (38,056)
Net deferred tax asset  $—   $—