Current report

Income Taxes (Tables)

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   $ —     $ —