v3.26.1
Business Segments
 12 Months Ended
May 31, 2026
Segment Reporting [Abstract]  
Business Segments Business Segments
As discussed above, prior to the May 2026 transaction, the Cloud Services Business was identified as a reportable segment. Following the May 2026 transaction and formation of ChronoScale, the Cloud Services Business is no longer a reportable segment because its activities are not regularly reviewed by the Chief Operating Decision Maker ("CODM"), which is the Company’s Chief Executive Officer, for purposes of resource allocation and performance assessment. As such, the results of ChronoScale, inclusive of the Cloud Services Business, which is now part of ChronoScale, are included in Other and are not separately presented as a segment for all periods presented.
As of May 31, 2026, 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 Company's CODM.
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, loss (gain) on classification of held for sale, loss on abandonment of assets, and 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 interest (income) expense, net, gain on change in fair value of derivatives, gain on change in fair value of investments, 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 extinguishment of debt, loss on extinguishment of related party debt, loss on change in fair value of warrants, loss on change in fair value of related party warrants 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 following tables present segment information, including revenue by segment and segment profit (loss) for the fiscal years ended May 31, 2026, 2025, and 2024 (in thousands):
Fiscal Year Ended May 31, 2026
Data Center Hosting Business
HPC Hosting Business
Revenue:
Services revenue$154,403 $270,602 
Data center rental and other revenue$— $114,702 
Total segment revenue
154,403 385,304 
Costs and expenses:
Services cost of revenue102,980 258,147 
Data center rental and other cost of revenue— 56,773 
Selling, general and administrative2,516 30,017 
Loss on abandonment of assets570 1,240 
Total costs and expenses106,066 346,177 
Segment profit $48,337 $39,127 
Fiscal Year Ended May 31, 2025
Data Center Hosting Business
HPC Hosting Business
Revenue:
Services revenue$142,267 $— 
Data center rental and other revenue$— $— 
Related party revenue1,926 — 
Total segment revenue144,193 — 
Costs and expenses:
Services cost of revenue100,744 143 
Data center rental and other cost of revenue— — 
Selling, general and administrative3,006 11,943 
Loss on classification of held for sale(24,616)— 
Loss on abandonment 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:
Services revenue$121,857 $— 
Data center rental and other revenue$— $— 
Related party revenue14,761 — 
Total segment revenue136,618 — 
Costs and expenses:
Services cost of revenue106,022 50 
Data center rental and other cost of revenue— — 
Selling, general and administrative10,367 4,761 
Loss on classification of held for sale15,417 — 
Total costs and expenses131,806 4,811 
Segment profit (loss)$4,812 $(4,811)
The following table presents a reconciliation to net loss from continuing operations before income tax expense (in thousands):
Fiscal Year Ended
May 31, 2026May 31, 2025May 31, 2024
Segment profit (loss)
Data Center Hosting Business$48,337 $63,927 $4,812 
HPC Hosting Business39,127 (12,086)(4,811)
Total segment profit 87,464 51,841 1 
Other (1)
(323,926)(124,016)(98,339)
Operating loss(236,462)(72,175)(98,338)
Interest expense, net29,516 32,139 27,517 
Gain on change in fair value of derivatives(75,818)— — 
Gain on change in fair value of investments(10,840)— — 
Loss on conversion of debt— 33,612 — 
Loss on change in fair value of debt— 85,439 7,401 
Loss on change in fair value of related party debt— — 8,116 
Loss on extinguishment of debt— 1,177 — 
Loss on extinguishment of related party debt— — 2,507 
Loss on change in fair value of warrants2,212 6,421 — 
Loss on change in fair value of related party warrants— — 5,696 
Net loss from continuing operations before income tax expenses$(181,532)$(230,963)$(149,575)
(1)Other includes corporate related items not allocated to reportable segments and ChronoScale.
The Company also provides the following additional segment disclosures (in thousands):
Fiscal Year Ended
May 31, 2026May 31, 2025May 31, 2024
Depreciation and amortization:
Data Center Hosting Business$12,888 $13,312 $19,948 
HPC Hosting Business34,414 3,733 1,233 
Other (1)
20,087 117,664 58,179 
Total depreciation and amortization (2)
$67,389 $134,709 $79,360 
Capital expenditures:
Data Center Hosting Business$(1,234)$9,320 $38,266 
HPC Hosting Business2,988,712 976,506 207,299 
Other (1)
54,678 995 84,373 
Total capital expenditures$3,042,156 $986,821 $329,938 
(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, 2026May 31, 2025
Data Center Hosting Business
$113,788 $141,764 
HPC Hosting Business
8,999,081 1,363,341 
Total segment assets9,112,869 1,505,105 
Other (1)
816,443 364,985 
Total assets$9,929,312 $1,870,090 
(1) Other includes corporate related items not allocated to reportable segments.