|
Nevada
(State or other jurisdiction of incorporation or organization) |
| |
7370
(Primary Standard Industrial Classification Code Number) |
| |
95-4863690
(I.R.S. Employer Identification No.) |
|
|
Carol Sherman
Kelley Drye & Warren LLP Canterbury Green 201 Broad Street Stamford, CT 06901 Telephone: (203) 324-1400 Facsimile: (203) 327-2669 |
| |
Jonathan H. Talcott
E. Peter Strand Michael K. Bradshaw, Jr. Nelson Mullins Riley & Scarborough LLP 101 Constitution Ave, NW, Ste 900 Washington, DC 20001 Telephone: (202) 689-2806 Facsimile: (202) 689-2860 |
|
|
Large accelerated filer
☐
|
| |
Accelerated filer
☐
|
|
|
Non-accelerated filer
☒
|
| |
Smaller reporting company
☒
|
|
| | | |
Emerging growth company
☐
|
|
| | | | | ii | | | |
| | | | | ii | | | |
| | | | | ii | | | |
| | | | | 1 | | | |
| | | | | 10 | | | |
| | | | | 33 | | | |
| | | | | 35 | | | |
| | | | | 36 | | | |
| | | | | 37 | | | |
| | | | | 38 | | | |
| | | | | 42 | | | |
| | | | | 48 | | | |
| | | | | 58 | | | |
| | | | | 59 | | | |
| | | | | 60 | | | |
| | | | | 66 | | | |
| | | | | 78 | | | |
| | | | | 79 | | | |
| | | | | 81 | | | |
| | | | | 87 | | | |
| | | | | 89 | | | |
| | | | | 90 | | | |
| | | | | 95 | | | |
| | | | | 102 | | | |
| | | | | 103 | | | |
| | | | | 104 | | | |
| | | | | 106 | | |
| | |
0% Debt Finance
|
| |
30% Debt Finance
|
| |
70% Debt Finance
|
| |||||||||
Capital Expenditure per MW
|
| | | $ | 250,000 | | | | | $ | 250,000 | | | | | $ | 250,000 | | |
Total Capital Expenditure for 1.5GW
|
| | | $ | 375,000,000 | | | | | $ | 375,000,000 | | | | | $ | 375,000,000 | | |
Amount Financed with Debt
|
| | | $ | 0 | | | | | $ | 112,500,000 | | | | | $ | 262,500,000 | | |
Total Capital Contribution
|
| | | $ | 375,000,000 | | | | | $ | 262,500,000 | | | | | $ | 112,500,000 | | |
Capital Contribution by Antpool (20%)
|
| | | $ | 75,000,000 | | | | | $ | 42,500,000 | | | | | $ | 22,500,000 | | |
| | |
0% Debt Finance
|
| |
30% Debt Finance
|
| |
70% Debt Finance
|
| |||||||||
APLD Shares issuable upon Conversion of Antpool Capital Contributions at a $7.50 conversion price
|
| | | | 10,000,000 | | | | | | 7,000,000 | | | | | | 3,000,000 | | |
Shares Outstanding after this Offering plus Shares issuable to Antpool
|
| | | | 104,441,268 | | | | | | 101,441,268 | | | | | | 97,441,268 | | |
Percentage of APLD Common Stock if Antpool Converted all of its Capital Contributions
|
| | | | 9.6% | | | | | | 6.9% | | | | | | 3.1% | | |
| | |
As of November 30, 2021
|
| | | | |||||||||||||||
|
Actual
|
| |
Pro Forma
Prior To This Offering |
| |
Pro Forma As
Adjusted After This Offering |
| | |||||||||||||
|
(in thousands)
|
| | |||||||||||||||||||
| | | | | | |||||||||||||||||
Cash and cash equivalents
|
| | | $ | 14,045 | | | | | $ | 14,045 | | | | | $ | 68,687 | | | | ||
Mezzanine equity: | | | | | | | | | | | | | | | | | | | | | ||
Series C convertible and redeemable preferred stock,
$.001 par value, 660,000 shares authorized, issued and outstanding, 0 and 0 shares outstanding, respectively |
| | | | 15,135 | | | | | | — | | | | | | — | | | | ||
Series D convertible and redeemable preferred stock, $.001 par value, 1,380,000 shares authorized, issued and 0 and 0 shares outstanding, respectively
|
| | | | 31,574 | | | | | | — | | | | | | — | | | | ||
Stockholders’ equity | | | | | | | | | | | | | | | | | | | | | ||
Common stock, $.001 par value, 1,000,000,000, 166,666,666 and 166,666,666 shares authorized, respectively, and 320,381,519, 91,205,023 and 94,441,268 respectively shares issued and outstanding
|
| | | | 320 | | | | | | 91 | | | | | | 95 | | | | ||
Additional paid-in capital
|
| | | | 43,657 | | | | | | 92,601 | | | | | | 147,240 | | | | ||
Treasury Stock, 6,050 shares, at cost
|
| | | | (62) | | | | | | (62) | | | | | | (62) | | | | ||
Accumulated deficit
|
| | | | (44,837) | | | | | | (44,837) | | | | | | (44,837) | | | | ||
Total stockholders’ equity
|
| | | | (922) | | | | | | 47,793 | | | | | | 102,436 | | | | ||
Total capitalization
|
| | | | 45,787 | | | | | | 47,793 | | | | | | 102,436 | | | |
|
Assumed public offering price
|
| | | | | | | | | $ | 18.54 | | |
|
Historical actual net tangible book value before this offering
|
| | | $ | (0.02) | | | | | | | | |
|
Increase attributable to pro forma adjustment
|
| | | $ | 0.54 | | | | | | | | |
|
Pro forma net tangible book value before this offering
|
| | | $ | 0.52 | | | | | | | | |
|
Increase in pro forma net tangible book value attributable to new investors
|
| | | $ | 0.56 | | | | | | | | |
|
Pro forma as adjusted net tangible book value after this offering
|
| | | | | | | | | $ | 1.08 | | |
|
Dilution to new investors
|
| | | | | | | | | $ | 17.46 | | |
| | |
Shares Purchased
|
| |
Total Consideration
|
| |
Average Price
per share |
| | |||||||||||||||||||||||
|
Amount
|
| |
Percentage
|
| |
Amount
(in thousands) |
| |
Percentage
|
| | | | ||||||||||||||||||||
Initial Stockholders
|
| | | | 91,205,023 | | | | | | 96.6% | | | | | $ | 92,692 | | | | | | 60.7% | | | | | $ | 1.02 | | | | ||
New investors
|
| | | | 3,236,245 | | | | | | 3.4% | | | | | $ | 60,000 | | | | | | 39.3% | | | | | $ | 18.54 | | | | ||
Total
|
| | | | 94,441,268 | | | | | | 100.0% | | | | | $ | 152,692 | | | | | | 100.0% | | | | | $ | 1.61 | | | |
| | |
After Giving Effect to the
Reverse Stock Split |
| |||||||||
Fiscal Quarter End
|
| |
RSUs Vested
|
| |
Implied Expense
|
| ||||||
May 31, 2022
|
| | | | 441,666 | | | | | $ | 3,551,000 | | |
August 31, 2022
|
| | | | 800,000 | | | | | $ | 6,432,000 | | |
November 30,2022
|
| | | | 550,000 | | | | | $ | 4,422,000 | | |
Fiscal Quarter End
|
| |
Vesting
Restricted Stock |
| |
Implied
Expense |
| ||||||
May 31, 2022
|
| | | | 300,000 | | | | | $ | 2,412,000 | | |
August 31, 2022
|
| | | | 75,000 | | | | | $ | 603,000 | | |
November 30, 2022
|
| | | | 75,000 | | | | | $ | 603,000 | | |
February 28, 2023
|
| | | | 75,000 | | | | | $ | 603,000 | | |
May 31, 2023
|
| | | | 75,000 | | | | | $ | 603,000 | | |
Fiscal Quarter End
|
| |
Vesting
Restricted Stock |
| |
Implied
Expense |
| ||||||
May 31, 2022
|
| | | | 383,334 | | | | | $ | 3,082,000 | | |
August 31, 2022
|
| | | | 95,833 | | | | | $ | 770,500 | | |
November 30, 2022
|
| | | | 95,833 | | | | | $ | 770,500 | | |
February 28, 2023
|
| | | | 95,833 | | | | | $ | 770,500 | | |
May 31, 2023
|
| | | | 95,833 | | | | | $ | 770,500 | | |
Name
|
| |
Age
|
| |
Position(s)
|
| |
Period of Service
|
|
Executive Officers | | | | | | | | | ||
Wes Cummins | | |
44
|
| |
Chief Executive Officer, Secretary, Treasurer, Chairman of the Board
|
| |
Director from February 2007 to December 2020 and March 2021 to Present,
sole officer from March 2012 to December 2020 and CEO, Secretary and Treasurer from March 2021 to Present |
|
David Rench | | |
44
|
| |
Chief Financial Officer
|
| |
March 2021 to Present
|
|
Regina Ingel | | |
34
|
| |
Executive Vice President of Operations
|
| |
April 2021 to Present
|
|
Non-Employee Directors | | | | | | | | | ||
Chuck Hastings(1)(3) | | |
43
|
| |
Director
|
| |
April 2021 to Present
|
|
Kelli McDonald(2)(3) | | |
43
|
| |
Director
|
| |
April 2021 to Present
|
|
Douglas Miller(1)(2)(4)
|
| |
64
|
| |
Director
|
| |
April 2021 to Present
|
|
Virginia Moore(2)(3) | | |
48
|
| |
Director
|
| |
April 2021 to Present
|
|
Richard Nottenburg(1)(2) | | |
68
|
| |
Director
|
| |
June 2021 to Present
|
|
Jason Zhang | | |
29
|
| |
Director
|
| |
April 2021 to Present
|
|
Name and position
|
| |
Year
|
| |
Salary
($) |
| |
Bonus
($) |
| |
Total
($)(a) |
| ||||||||||||
Wes Cummins
|
| | | | 2021 | | | | | | 52,083 | | | | | | — | | | | | | 52,083 | | |
CEO, President, Secretary and Treasurer
|
| | | | 2020 | | | | | | — | | | | | | — | | | | | | — | | |
David Rench,
|
| | | | 2021 | | | | | | 41,667 | | | | | | — | | | | | | 41,667 | | |
Chief Financial Officer
|
| | | | 2020 | | | | | | — | | | | | | — | | | | | | — | | |
Regina Ingel
|
| | | | 2021 | | | | | | 12,500 | | | | | | — | | | | | | 12,500 | | |
Vice President of Operations
|
| | | | 2020 | | | | | | — | | | | | | — | | | | | | — | | |
Number of Shares
|
| |
Vesting Date*
|
| |||
250,000
|
| | | | 4/1/2022 | | |
62,500
|
| | | | 7/1/2022 | | |
62,500
|
| | | | 10/1/2022 | | |
62,500
|
| | | | 1/1/2023 | | |
62,500
|
| | | | 4/1/2023 | | |
Number of Shares
|
| |
Vesting Date*
|
| |||
83,333
|
| | | | 4/1/2022 | | |
20,833
|
| | | | 7/1/2022 | | |
20,833
|
| | | | 10/1/2022 | | |
20,833
|
| | | | 1/1/2023 | | |
20,834
|
| | | | 4/1/2023 | | |
Number of Shares
|
| |
Vesting Date*
|
| |||
50,000
|
| | | | 4/1/2022 | | |
12,500
|
| | | | 7/1/2022 | | |
12,500
|
| | | | 10/1/2022 | | |
12,500
|
| | | | 1/1/2023 | | |
12,500
|
| | | | 4/1/2023 | | |
|
Base retainer
|
| | | $ | 25,000 | | |
|
Audit Committee Chair
|
| | | $ | 15,000 | | |
|
Audit Committee Member
|
| | | $ | 8,000 | | |
|
Compensation Committee Chair
|
| | | $ | 10,000 | | |
|
Compensation Committee Member
|
| | | $ | 5,000 | | |
|
Nominating and Governance Committee Chair
|
| | | $ | 5,000 | | |
|
Nominating and Governance Committee Member
|
| | | $ | 3,000 | | |
| | |
Before Offering
|
| |
After Offering
|
| ||||||||||||||||||
Name and Address(a)
|
| |
Total Common
|
| |
Percentage
Beneficially Owned |
| |
Total
Common |
| |
Percentage
Beneficially Owned |
| ||||||||||||
Directors and Officers: | | | | | | | | | | | | | | | | | | | | | | | | | |
Wes Cummins
|
| | | | 21,212,068(b) | | | | | | 23.26% | | | | | | 21,212,068 | | | | | | 22.46% | | |
David Rench
|
| | | | 167,141(c) | | | | | | * | | | | | | 167,141(c) | | | | | | * | | |
Chuck Hastings
|
| | | | 434,500(d) | | | | | | * | | | | | | 434,500(d) | | | | | | * | | |
Kelli McDonald
|
| | | | 100,000(e) | | | | | | * | | | | | | 100,000(e) | | | | | | * | | |
Douglas Miller
|
| | | | 100,000(f) | | | | | | * | | | | | | 100,000(f) | | | | | | * | | |
Virginia Moore
|
| | | | 930,780(g) | | | | | | 1.01% | | | | | | 930,780(g) | | | | | | * | | |
Richard Nottenburg
|
| | | | 100,000(h) | | | | | | * | | | | | | 100,000(h) | | | | | | * | | |
Jason Zhang
|
| | | | 3,256,426(i) | | | | | | 3.60% | | | | | | 3,256,426(i) | | | | | | 3.45% | | |
Regina Ingel
|
| | | | 100,000(j) | | | | | | * | | | | | | 100,000(j) | | | | | | * | | |
Officers and Directors as a group (9 people)
|
| | | | 26,400,915(b)-(j) | | | | | | 28.95% | | | | | | 26,400,915(b)-(j) | | | | | | 27.95% | | |
5% Holders: | | | | | | | | | | | | | | | | | | | | | | | | | |
Xin Xu
c/o Xsquared Holding Limited c/o Vistra Corporate Services Centre Wickhams Cay II Tortola British Virgin Islands |
| | | | 7,440,148(k) | | | | | | 8.16% | | | | | | 7,440,148(k) | | | | | | 7.88% | | |
| | |
Before Offering
|
| |
After Offering
|
| ||||||||||||||||||
Name and Address(a)
|
| |
Total Common
|
| |
Percentage
Beneficially Owned |
| |
Total
Common |
| |
Percentage
Beneficially Owned |
| ||||||||||||
Guo Chen
c/o GMR Limited Trinity Chamber PO BOX 4301 Tortola British Virgin Islands |
| | | | 7,440,148(l) | | | | | | 8.16% | | | | | | 7,440,148(l) | | | | | | 7.88% | | |
| | |
Per Share
Bid Price Prior to the Reverse Stock Split |
| |
Per Share
Bid Price After Giving Effect to the Reverse Stock Split |
| ||||||||||||||||||
|
High
|
| |
Low
|
| |
High
|
| |
Low
|
| ||||||||||||||
Annual | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended May 31, 2021
|
| | | $ | 2.25 | | | | | $ | 0.0071 | | | | | $ | 13.50 | | | | | $ | 0.0426 | | |
Quarterly | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended May 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 0.025 | | | | | $ | 0.0071 | | | | | $ | 13.50 | | | | | $ | 0.0426 | | |
Second Quarter
|
| | | $ | 0.03 | | | | | $ | 0.0085 | | | | | $ | 0.18 | | | | | $ | 0.0510 | | |
Third Quarter
|
| | | $ | 0.3499 | | | | | $ | 0.0153 | | | | | $ | 2.10 | | | | | $ | 0.0918 | | |
Fourth Quarter
|
| | | $ | 2.25 | | | | | $ | 0.14 | | | | | $ | 13.50 | | | | | $ | 0.84 | | |
Year Ending May 31, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 2.63 | | | | | $ | 0.6275 | | | | | $ | 15.78 | | | | | $ | 3.765 | | |
Second Quarter
|
| | | $ | 5.70 | | | | | $ | 1.27 | | | | | $ | 34.20 | | | | | $ | 7.62 | | |
Third Quarter
|
| | | $ | 4.68 | | | | | $ | 1.35 | | | | | $ | 28.08 | | | | | $ | 8.10 | | |
Underwriters
|
| |
Number of Shares
|
| |||
B. Riley Securities, Inc.
|
| | | | | | |
Needham & Company, LLC
|
| | | | | | |
Craig-Hallum Capital Group LLC
|
| | | | | | |
D.A. Davidson & Co.
|
| | | | | | |
Lake Street Capital Markets, LLC
|
| | | | | | |
Northland Securities, Inc.
|
| | | | | | |
Total
|
| | | | | | |
| | | | | | |
| | |
Per Share
|
| |
Total Without
Over-Allotment |
| |
Total With Over-
Allotment |
|
Underwriting discounts and commissions paid by us
|
| | $ | | | $ | | | $ | |
Proceeds, before expenses, to us
|
| | $ | | | $ | | | $ | |
Audited Consolidated Financial Statements:
|
| |
Page
|
| |||
| | | | F-1 | | | |
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | |
Unaudited Consolidated Financial Statements:
|
| |
Page
|
| |||
| | | | F-16 | | | |
| | | | F-17 | | | |
| | | | F-18 | | | |
| | | | F-19 | | | |
| | | | F-20 | | | |
| | | | F-21 | | |
| | |
May 31, 2021
|
| |
May 31, 2020
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 11,750 | | | | | $ | — | | |
Prepaid expenses and other current assets
|
| | | | | | | | | | — | | |
Total current assets
|
| | | | 11,750 | | | | | | — | | |
Deposit on equipment
|
| | | | 3,282 | | | | | | — | | |
Property and equipment, net
|
| | | | 20 | | | | | | — | | |
TOTAL ASSETS
|
| | | $ | 15,052 | | | | | $ | — | | |
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | |
Accounts payable and accrued liabilities
|
| | | $ | 249 | | | | | $ | — | | |
Accrued dividends
|
| | | | 116 | | | | | | 116 | | |
Related party notes payable
|
| | | | 2,135 | | | | | | 1,899 | | |
Total current liabilities
|
| | | | 2,500 | | | | | | 2,015 | | |
Commitments and contingencies (Note 10) | | | | | | | | | | | | | |
Mezzanine equity: | | | | | | | | | | | | | |
Series C, convertible and redeemable preferred stock, $.001 par value, 660,000
shares authorized, issued and outstanding |
| | | | 15,135 | | | | | | — | | |
Stockholders’ deficit: | | | | | | | | | | | | | |
Series A, convertible preferred stock, $.001 par value, authorized 70,000 shares, 27,195 issued and outstanding
|
| | | $ | 3,370 | | | | | $ | 3,370 | | |
Series B convertible preferred stock, $.001 par value, authorized 50,000 shares, 17,087 issued and outstanding
|
| | | | 1,849 | | | | | | 1,849 | | |
Common stock, $.001 par value, 500,000,000 shares authorized, 39,569,335 and 9,066,363 shares issued and outstanding, respectively
|
| | | | 9 | | | | | | 9 | | |
Additional paid in capital
|
| | | | 13,874 | | | | | | 13,874 | | |
Treasury stock, 36,300 shares, at cost
|
| | | | (62) | | | | | | (62) | | |
Accumulated deficit
|
| | | | (21,623) | | | | | | (21,055) | | |
Total stockholders’ deficit
|
| | | | (2,583) | | | | | | (2,015) | | |
Total Mezzanine equity and stockholders’ deficit
|
| | | | 12,552 | | | | | | (2,015) | | |
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ DEFICIT
|
| | | $ | 15,052 | | | | | $ | — | | |
| | |
Fiscal Year Ended
|
| |||||||||
| | |
May 31, 2021
|
| |
May 31, 2020
|
| ||||||
Total Revenue
|
| | | $ | — | | | | | $ | — | | |
Costs and expenses: | | | | | | | | | | | | | |
Selling, General and Administrative
|
| | | | (331) | | | | | | — | | |
Depreciation
|
| | | | (1) | | | | | | — | | |
Total costs and expenses
|
| | | | (332) | | | | | | | | |
Operating income (loss)
|
| | | | (332) | | | | | | | | |
Other income (expense) | | | | | | | | | | | | | |
Interest Expense
|
| | | | (236) | | | | | | (263) | | |
Total Other Income (Expense)
|
| | | | (236) | | | | | | (263) | | |
Net Income (loss) attributable to Common Shareholders
|
| | | $ | (568) | | | | | $ | (263) | | |
Basic and Diluted net loss per share
|
| | | | (0.06) | | | | | | (0.03) | | |
Basic and Diluted weighted average number of shares outstanding
|
| | | | 9,066,363 | | | | | | 9,066,363 | | |
| | |
Series A
Convertible Preferred Stock |
| |
Series B
Convertible Preferred Stock |
| |
Common Stock
|
| |
Additional
Paid in Capital |
| |
Treasury
Stock |
| |
Accumulated
Deficit |
| |
Stockholders’
Equity |
| |||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||
Balance, May 31, 2019
|
| | | | 27,195 | | | | | $ | 3,370 | | | | | | 17,087 | | | | | $ | 1,849 | | | | | | 9,066,363 | | | | | $ | 9 | | | | | $ | 13,874 | | | | | $ | (62) | | | | | $ | (20,792) | | | | | $ | (1,752) | | |
Net Income (Loss)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (263) | | | | | | (263) | | | | | | (263) | | | | | | (263) | | |
Balance, May 31, 2020
|
| | | | 27,195 | | | | | $ | 3,370 | | | | | | 17,087 | | | | | $ | 1,849 | | | | | | 9,066,363 | | | | | $ | 9 | | | | | $ | 13,874 | | | | | $ | (62) | | | | | $ | (21,055) | | | | | $ | (2,015) | | |
Net Income (Loss)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | (568) | | | | | $ | (568) | | |
Balance, May 31, 2021
|
| | | | 27,195 | | | | | $ | 3,370 | | | | | | 17,087 | | | | | $ | 1,849 | | | | | | 9,066,363 | | | | | $ | 9 | | | | | $ | 13,874 | | | | | $ | (62) | | | | | $ | (21,623) | | | | | $ | (2,583) | | |
| | |
Fiscal Years Ended
|
| |||||||||
| | |
May, 31, 2021
|
| |
May, 31, 2020
|
| ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net loss
|
| | | $ | (568) | | | | | $ | (263) | | |
Adjustments to reconcile net loss to net cash used in operating activities:
|
| | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 1 | | | | | | — | | |
Accrued paid in kind interest
|
| | | | 236 | | | | | | 263 | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Accounts payable and accrued liabilities
|
| | | | 248 | | | | | | — | | |
NET CASH USED BY OPERATING ACTIVITIES
|
| | | | (83) | | | | | | — | | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (20) | | | | | | — | | |
Deposit on equipment
|
| | | | (3,282) | | | | | | — | | |
NET CASH USED IN INVESTING ACTIVITIES
|
| | | | (3,302) | | | | | | — | | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | | | | | | |
Sale of preferred stock
|
| | | | 16,500 | | | | | | — | | |
Issuance cost for preferred stock
|
| | | | (1,365) | | | | | | — | | |
NET CASH PROCEEDS FROM FINANCING ACTIVITIES
|
| | | | 15,135 | | | | | | — | | |
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
| | | | 11,750 | | | | | | — | | |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
| | | | — | | | | | | — | | |
CASH AND CASH EQUIVALENTS, END OF YEAR
|
| | | $ | 11,750 | | | | | $ | — | | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | | | | | | | | | | | | | |
Interest paid
|
| | | $ | — | | | | | $ | — | | |
Class of Stock
|
| |
Common Share
Conversion Ratio |
| |
Shares
|
| |
May 31, 2021
|
| |
May 31, 2020
|
|
Convertible Series A preferred shares
|
| |
1 to 1429
|
| |
27,195
|
| |
38,861,655
|
| |
38,861,655
|
|
Convertible Series B preferred shares
|
| |
1 to 1000
|
| |
17,087
|
| |
17,087,000
|
| |
17,087,000
|
|
Convertible and Redeemable Series preferred shares
|
| |
1 to 200
|
| |
660,000
|
| |
132,000,000
|
| |
—
|
|
Total
|
| | | | | | | |
187,948,655
|
| |
55,948,655
|
|
| | |
May 31
2021 |
| |
May 31
2020 |
| ||||||
Office and computer equipment
|
| | | $ | 21 | | | | | $ | — | | |
Total cost of property and equipment
|
| | | | 21 | | | | | | | | |
Accumulated depreciation
|
| | | | (1) | | | | | | | | |
Property and equipment, net
|
| | | $ | 20 | | | | | $ | — | | |
Holder
|
| |
Interest
Rate |
| |
Status
|
| |
Principal
Amount |
| |
May 31, 2021
Accrued Interest Payable |
| |
Total
|
| |||||||||||||||
Related Party
|
| | | | 16% | | | | | | Default | | | | | $ | 220 | | | | | $ | 828 | | | | | $ | 1,048 | | |
Non-Related Party
|
| | | | 16% | | | | | | Default | | | | | | 250 | | | | | | 837 | | | | | | 1,087 | | |
Total
|
| | | | | | | | | | | | | | | $ | 470 | | | | | $ | 1,665 | | | | | $ | 2,135 | | |
Holder
|
| |
Interest
Rate |
| |
Status
|
| |
Principal
Amount |
| |
May 31, 2020
Accrued Interest Payable |
| |
Total
|
| |||||||||||||||
Related Party
|
| | | | 16% | | | | | | Default | | | | | $ | 220 | | | | | $ | 713 | | | | | $ | 933 | | |
Non-Related Party
|
| | | | 16% | | | | | | Default | | | | | | 250 | | | | | | 717 | | | | | | 967 | | |
Total
|
| | | | | | | | | | | | | | | $ | 470 | | | | | $ | 1,429 | | | | | $ | 1,899 | | |
| | |
Year ended
May 31, 2021 |
| |
Year ended
May 31, 2020 |
| ||||||
Current expense (benefit) | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | |
State
|
| | | | — | | | | | | — | | |
Total current expense
|
| | | $ | — | | | | | $ | — | | |
Deferred expense (benefit) | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | |
State
|
| | | | — | | | | | | — | | |
Total deferred expense (benefit)
|
| | | | — | | | | | | — | | |
Total income tax expense (benefit)
|
| | | $ | — | | | | | $ | — | | |
| | |
May 31,
2021 |
| |
May 31,
2020 |
| ||||||
Expected income tax expense (benefit) at U.S. statutory rate
|
| | | | 21% | | | | | | 21% | | |
State Tax Expense
|
| | | | 0% | | | | | | 0% | | |
Change in Valuation Allowance
|
| | | | -21% | | | | | | -21% | | |
Income Tax Expense / (Benefit)
|
| | | | 0% | | | | | | 0% | | |
| | |
May 31,
2021 |
| |
May 31,
2020 |
| ||||||
Deferred Tax Assets: | | | | | | | | | | | | | |
Federal Net Operating Loss
|
| | | $ | 175 | | | | | $ | 55 | | |
Valuation Allowance
|
| | | | (175) | | | | | | (55) | | |
Total Net Deferred Tax Assets/(Liabilities)
|
| | | $ | — | | | | | $ | — | | |
Class of Stock
|
| |
Ranking
|
| |
Liquidation Preferences
|
| |||
Redeemable and Convertible Series C shares | | |
Priority 1
|
| | Cash equal to $25 per share plus accrued or unpaid Paid in Kind dividends | | | Ratably share in distribution of assets in proportion to preferential entitled amounts | |
Convertible Series A preferred shares | | |
Priority 2
|
| | Cash equal to $100 per share plus declared or accrued and unpaid dividends | | | Ratably share in distribution of assets in proportion to preferential entitled amounts | |
Convertible Series B preferred shares | | |
Priority 3
|
| | Cash equal to $100 per share plus declared or accrued and unpaid dividends | | | Ratably share in distribution of assets in proportion to preferential entitled amounts | |
Class of Stock
|
| |
Carrying Value
|
| |
Accrued
Dividends |
| |
Accumulating
Dividends not Declared |
| |
Liquidation
Amount |
| ||||||||||||
Redeemable and Convertible Series C shares
|
| | | $ | 16,500,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 16,500,000 | | |
Convertible Series A preferred shares
|
| | | $ | 2,719,500 | | | | | $ | 70,821 | | | | | $ | 767,500 | | | | | $ | 3,557,821 | | |
Convertible Series B preferred shares
|
| | | $ | 1,708,700 | | | | | $ | 45,279 | | | | | $ | 402,400 | | | | | $ | 2,156,379 | | |
Class of Stock
|
| |
Ranking
|
| |
Liquidation Preferences
|
| |||
Convertible Series A preferred shares | | |
Priority 1
|
| | Cash equal to $100 per share plus declared or accrued and unpaid dividends | | | Ratably share in distribution of assets in proportion to preferential entitled amounts | |
Convertible Series B preferred shares | | |
Priority 2
|
| | Cash equal to $100 per share plus declared or accrued and unpaid dividends | | | Ratably share in distribution of assets in proportion to preferential entitled amounts | |
Class of Stock
|
| |
Carrying Value
|
| |
Accrued
Dividends |
| |
Accumulating
Dividends not Declared |
| |
Liquidation
Amount |
| ||||||||||||
Convertible Series A preferred shares
|
| | | $ | 2,719,500 | | | | | $ | 70,821 | | | | | $ | 767,500 | | | | | $ | 3,557,821 | | |
Convertible Series B preferred shares
|
| | | $ | 1,708,700 | | | | | $ | 45,279 | | | | | $ | 402,400 | | | | | $ | 2,156,379 | | |
Service Provider
|
| |
Common Stock
Shares Committed |
| |||
Valuefinder
|
| | | | 18,938,559 | | |
SparkPool
|
| | | | 44,640,889 | | |
GMR
|
| | | | 44,649,889 | | |
Total
|
| | | | 108,220,337 | | |
Agreement Date*
|
| |
Purchase
Commitment |
| |
Deposit Paid
|
| |
Expected Shipping
|
| ||||||
May 27, 2021
|
| | | $ | 4,968 | | | | | $ | — | | | | | |
April 13, 2021
|
| | | $ | 8,512 | | | | | $ | 3,277 | | | |
August 2021 – July 2022
|
|
Total
|
| | | $ | 13,480 | | | | | | 3,277 | | | | | |
Lease Period
|
| |
Monthly
Base Rent |
| |||
Months 1 – 13
|
| | | $ | 25,856 | | |
Months 14 – 25
|
| | | $ | 26,525 | | |
Months 26 – 37
|
| | | $ | 27,193 | | |
Months 38 – 49
|
| | | $ | 27,862 | | |
Months 50 – 61
|
| | | $ | 28,531 | | |
Month 62 – (10/31/26)
|
| | | $ | 29,199 | | |
| | |
November 30,
2021 |
| |
May 31,
2021 |
| ||||||
| | | | | | | | |
Audited
|
| |||
ASSETS | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 14,045 | | | | | $ | 11,750 | | |
Prepaid expenses and other current assets
|
| | | | 1,649 | | | | | | 5 | | |
Cryptoassets
|
| | | | — | | | | | | — | | |
Total current assets
|
| | | | 15,694 | | | | | | 11,755 | | |
Right of use asset, net
|
| | | | 1,204 | | | | | | — | | |
Deposit on equipment
|
| | | | 26,507 | | | | | | 3,277 | | |
Property and equipment, net
|
| | | | 10,145 | | | | | | 20 | | |
TOTAL ASSETS
|
| | | $ | 53,550 | | | | | $ | 15,052 | | |
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY (DEFICIT)
|
| | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | |
Accounts payable and accrued liabilities
|
| | | $ | 5,323 | | | | | $ | 248 | | |
Accrued dividends
|
| | | | — | | | | | | 116 | | |
Current portion of operating lease liability
|
| | | | 190 | | | | | | — | | |
Related party notes payable
|
| | | | — | | | | | | 2,135 | | |
Customer deposits
|
| | | | 484 | | | | | | — | | |
Deferred revenue
|
| | | | 526 | | | | | | — | | |
Other current liabilities
|
| | | | 16 | | | | | | — | | |
Total current liabilities
|
| | | | 6,539 | | | | | | 2,500 | | |
Deferred tax liability
|
| | | | 214 | | | | | | — | | |
Long-term portion of operating lease liability
|
| | | | 1,010 | | | | | | — | | |
Total liabilities
|
| | | | 7,763 | | | | | | 2,500 | | |
Commitments and contingencies (Note 10) | | | | | | | | | | | | | |
Mezzanine equity: | | | | | | | | | | | | | |
Series C, convertible and redeemable preferred stock, $.001 par value, 660,000 shares authorized, issued and outstanding
|
| | | $ | 15,135 | | | | | $ | 15,135 | | |
Series D, convertible and redeemable preferred stock, $.001 par value, 1,380,000
shares authorized, issued, and outstanding |
| | | | 31,574 | | | | | | — | | |
Total mezzanine’ equity
|
| | | | 46,709 | | | | | | 15,135 | | |
Shareholders’ equity (deficit): | | | | | | | | | | | | | |
Series A, convertible preferred stock, $.001 par value, authorized 70,000 shares, 0 and 70,000 shares issued and outstanding, respectively
|
| | | $ | — | | | | | $ | 3,370 | | |
Series B convertible preferred stock, $.001 par value, authorized 50,000 shares, 0 and 50,000 shares issued and outstanding, respectively
|
| | | | — | | | | | | 1,849 | | |
Common stock, $.001 par value, 1,000,000,000 shares authorized, 320,381,519 and 9,066,363 shares issued and outstanding
|
| | | | 320 | | | | | | 9 | | |
Additional paid in capital
|
| | | | 43,657 | | | | | | 13,874 | | |
Treasury stock, 36,300 shares, at cost
|
| | | | (62) | | | | | | (62) | | |
Accumulated deficit
|
| | | | (44,837) | | | | | | (21,623) | | |
Total shareholders’ equity (deficit)
|
| | | | (922) | | | | | | (2,583) | | |
Total Mezzanine and shareholders’ equity (deficit)
|
| | | | 45,787 | | | | | | 12,552 | | |
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY (DEFICIT)
|
| | | $ | 53,550 | | | | | $ | 15,052 | | |
| | |
Three Months Ended
|
| | |
Six Months Ended
|
| ||||||||||||||||||
|
November 30,
2021 |
| |
November 30,
2020 |
| | |
November 30,
2021 |
| |
November 30,
2020 |
| ||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cryptocurrency mining revenue, net
|
| | | $ | 1,426 | | | | | $ | — | | | | | | $ | 2,038 | | | | | $ | — | | |
Cost of revenues
|
| | | $ | 433 | | | | | | — | | | | | | $ | 782 | | | | | | — | | |
Gross Profit
|
| | | | 993 | | | | | | — | | | | | | | 1,256 | | | | | | — | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, General and Administrative
|
| | | | 1,181 | | | | | | — | | | | | | | 1,879 | | | | | | — | | |
Stock-based compensation for service agreement
|
| | | | — | | | | | | — | | | | | | | 12,337 | | | | | | — | | |
Impairment of Cryptocurrency Assets
|
| | | | 145 | | | | | | — | | | | | | | 165 | | | | | | — | | |
Depreciation
|
| | | | 174 | | | | | | — | | | | | | | 177 | | | | | | — | | |
Total costs and expenses
|
| | | | 1,500 | | | | | | — | | | | | | | 14,558 | | | | | | — | | |
Operating income (loss)
|
| | | | (507) | | | | | | — | | | | | | | (13,302) | | | | | | — | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Expense
|
| | | | — | | | | | | (74) | | | | | | | — | | | | | | (147) | | |
Gain/Loss on Extinguishment of Accounts Payable
|
| | | | 285 | | | | | | — | | | | | | | 325 | | | | | | — | | |
Gain/Loss on Extinguishment of Debt
|
| | | | — | | | | | | — | | | | | | | (1,342) | | | | | | — | | |
Gain/Loss on Sale of Fixed Assets
|
| | | | 265 | | | | | | — | | | | | | | 265 | | | | | | — | | |
Income Tax Expense
|
| | | | (214) | | | | | | — | | | | | | | (214) | | | | | | — | | |
Total Other Income (Expense)
|
| | | | 336 | | | | | | (74) | | | | | | | (966) | | | | | | (147) | | |
Net Income (loss) attributable to Common Shareholders
|
| | | $ | (171) | | | | | $ | (74) | | | | | | $ | (14,268) | | | | | $ | (147) | | |
Basic and diluted net loss per share
|
| | | | (0.00) | | | | | | (0.01) | | | | | | | (0.05) | | | | | | (0.02) | | |
Basic and diluted weighted average number of shares outstanding
|
| | | | 320,381,519 | | | | | | 9,066,363 | | | | | | | 294,863,883 | | | | | | 9,066,363 | | |
| | |
Series A
Convertible Preferred Stock |
| |
Series B
Convertible Preferred Stock |
| |
Series C
Convertible Preferred and Redeemable Stock |
| |
Series D
Convertible Preferred and Redeemable Stock |
| |
Common Stock
|
| |
Additional
Paid in Capital |
| |
Treasury
Stock |
| |
Accumulated
Deficit |
| |
Mezzanine
and Shareholders’ Equity (Deficit) |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, August 31, 2021
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | 660,000 | | | | | $ | 15,135 | | | | | | 1,304,000 | | | | | $ | 29,902 | | | | | | 320,381,516 | | | | | $ | 3,122 | | | | | $ | 40,856 | | | | | $ | (62) | | | | | $ | (44,666) | | | | | $ | 44,287 | | |
Issuance of Preferred Stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 76,000 | | | | | | 1,900 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 1,900 | | |
Issuance Costs of Preferred Stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (228) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | (228) | | |
Net Income (Loss)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | (171) | | | | | $ | (171) | | |
Balance, November 30, 2021
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | 660,000 | | | | | $ | 15,135 | | | | | | 1,380,000 | | | | | $ | 31,574 | | | | | | 320,381,516 | | | | | $ | 3,122 | | | | | $ | 40,856 | | | | | $ | (62) | | | | | $ | (44,837) | | | | | $ | 45,787 | | |
| | |
Series A
Convertible Preferred Stock |
| |
Series B
Convertible Preferred Stock |
| |
Series C
Convertible Preferred and Redeemable Stock |
| |
Series D
Convertible Preferred and Redeemable Stock |
| |
Common Stock
|
| |
Additional
Paid in Capital |
| |
Treasury
Stock |
| |
Accumulated
Deficit |
| |
Mezzanine
and Shareholders’ Equity (Deficit) |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, August 31, 2020
|
| | | | 27,195 | | | | | $ | 3,370 | | | | | | 17,087 | | | | | $ | 1,849 | | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | 9,066,363 | | | | | $ | 9 | | | | | $ | 13,874 | | | | | $ | (62) | | | | | $ | (21,127) | | | | | $ | (2,087) | | |
Net Income (Loss)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (74) | | | | | $ | — | | |
Balance, November 30, 2020
|
| | | | 27,195 | | | | | $ | 3,370 | | | | | | 17,087 | | | | | $ | 1,849 | | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | 9,066,363 | | | | | $ | 9 | | | | | $ | 13,874 | | | | | $ | (62) | | | | | $ | (21,201) | | | | | $ | (2,161) | | |
| | |
Series A
Convertible Preferred Stock |
| |
Series B
Convertible Preferred Stock |
| |
Series C
Convertible Preferred and Redeemable Stock |
| |
Series D
Convertible Preferred and Redeemable Stock |
| |
Common Stock
|
| |
Additional
Paid in Capital |
| |
Treasury
Stock |
| |
Accumulated
Deficit |
| |
Mezzanine
and Shareholders’ Equity (Deficit) |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, May 31, 2021
|
| | | | 27,195 | | | | | $ | 3,370 | | | | | | 17,087 | | | | | $ | 1,849 | | | | | | 660,000 | | | | | $ | 15,135 | | | | | | — | | | | | $ | — | | | | | | 9,066,363 | | | | | $ | 9 | | | | | $ | 13,874 | | | | | $ | (62) | | | | | $ | (21,623) | | | | | $ | 12,552 | | |
Extinguishment of Debt
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 30,502,970 | | | | | | 305 | | | | | | 3,173 | | | | | | — | | | | | | — | | | | | | 3,478 | | |
Issuance of Dividends to Preferred Stock
|
| | | | 60,822 | | | | | | 6,082 | | | | | | 29,772 | | | | | | 2,979 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (8,946) | | | | | | 116 | | |
Conversion of Preferred Stock
|
| | | | (88,017) | | | | | | (9,452) | | | | | | (46,859) | | | | | | (4,828) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 172,591,849 | | | | | | 1,726 | | | | | | 12,554 | | | | | | — | | | | | | — | | | | | | — | | |
Service Agreement
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 108,220,337 | | | | | | 1,082 | | | | | | 11,255 | | | | | | — | | | | | | — | | | | | | 12,337 | | |
Issuance of Preferred Stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,380,000 | | | | | | 34,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 34,500 | | |
Issuance Costs of Preferred Stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,926) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | (2,926) | | |
Net Income (Loss)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | (14,268) | | | | | $ | (14,268) | | |
Balance, November 30, 2021
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | 660,000 | | | | | $ | 15,135 | | | | | | 1,380,000 | | | | | $ | 31,574 | | | | | | 320,381,519 | | | | | $ | 3,121 | | | | | $ | 40,856 | | | | | $ | (62) | | | | | $ | (44,837) | | | | | $ | 45,787 | | |
| | |
Series A
Convertible Preferred Stock |
| |
Series B
Convertible Preferred Stock |
| |
Series C
Convertible Preferred and Redeemable Stock |
| |
Series D
Convertible Preferred and Redeemable Stock |
| |
Common Stock
|
| |
Additional
Paid in Capital |
| |
Treasury
Stock |
| |
Accumulated
Deficit |
| |
Mezzanine
and Shareholders’ Equity (Deficit) |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, May 31, 2020
|
| | | | 27,195 | | | | | $ | 3,370 | | | | | | 17,087 | | | | | $ | 1,849 | | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | 9,066,363 | | | | | $ | 9 | | | | | $ | 13,874 | | | | | $ | (62) | | | | | $ | (21,055) | | | | | $ | (2,015) | | |
Net Income (Loss)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (147) | | | | | $ | (147) | | |
Balance, November 30, 2020
|
| | | | 27,195 | | | | | $ | 3,370 | | | | | | 17,087 | | | | | $ | 1,849 | | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | | 9,066,363 | | | | | $ | 9 | | | | | $ | 13,874 | | | | | $ | (62) | | | | | $ | (21,201) | | | | | $ | (2,161) | | |
| | |
Six Months Ended
|
| |||||||||
|
November 30,
2021 |
| |
November 30,
2020 |
| ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net loss
|
| | | $ | (14,268) | | | | | $ | (147) | | |
Adjustments to reconcile net loss to net cash used in operating activities:
|
| | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 436 | | | | | | — | | |
Gain/(Loss) on extinguishment of debt
|
| | | | 1,342 | | | | | | — | | |
Gain/(Loss) on extinguishment of accounts payable
|
| | | | 325 | | | | | | — | | |
Realized gain on cryptoassets
|
| | | | (285) | | | | | | — | | |
Cryptoassets received as revenue
|
| | | | (2,038) | | | | | | — | | |
Cryptoassets impairment expense
|
| | | | 165 | | | | | | — | | |
Cryptoassets payment for expenses
|
| | | | 492 | | | | | | — | | |
Stock compensation for service agreement
|
| | | | 12,337 | | | | | | — | | |
Amortization of right of use asset
|
| | | | 28 | | | | | | — | | |
Deferred Tax
|
| | | | 214 | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid expenses and other current assets
|
| | | | (1,644) | | | | | | — | | |
Accounts payable and accrued liabilities
|
| | | | 5,254 | | | | | | 147 | | |
Payment of operating leases
|
| | | | (25) | | | | | | — | | |
NET CASH GENERATED BY OPERATING ACTIVITIES
|
| | | | 2,334 | | | | | | — | | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (10,314) | | | | | | — | | |
Sale of cryptoassets
|
| | | | 1,666 | | | | | | | | |
Deposit on equipment
|
| | | | (23,230) | | | | | | — | | |
Proceeds from sale of assets
|
| | | | 265 | | | | | | — | | |
NET CASH USED IN INVESTING ACTIVITIES
|
| | | | (31,613) | | | | | | — | | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | | | | | | |
Issuance of preferred stock
|
| | | | 34,500 | | | | | | — | | |
Issuance cost for preferred stock
|
| | | | (2,926) | | | | | | — | | |
NET CASH PROCEEDS FROM FINANCING ACTIVITIES
|
| | | | 31,574 | | | | | | — | | |
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
| | | | 2,295 | | | | | | — | | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
| | | | 11,750 | | | | | | — | | |
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
| | | $ | 14,045 | | | | | $ | — | | |
SUPPLEMENTAL DISCLOSURE OF NON-CASH OPERATING AND INVESTING ACTIVITIES:
|
| | | | | | | | | | | | |
Right-of-use asset obtained by lease obligation
|
| | | $ | 1,291 | | | | | $ | — | | |
Fixed assets in accounts payable
|
| | | $ | 513 | | | | | $ | — | | |
| | |
November 30,
2021 |
| |
May 31,
2021 |
| ||||||
Cryptocurrency mining equipment
|
| | | $ | 5,181 | | | | | $ | — | | |
Office and computer equipment
|
| | | | 184 | | | | | | 21 | | |
Autos
|
| | | | 63 | | | | | | — | | |
Land & Building
|
| | | | 5,153 | | | | | | | | |
Total cost of property and equipment
|
| | | | 10,581 | | | | | | 21 | | |
Accumulated depreciation
|
| | | | (436) | | | | | | (1) | | |
Property and equipment, net
|
| | | $ | 10,145 | | | | | $ | 20 | | |
|
Beginning Balance – May 31, 2021
|
| | | $ | — | | |
|
Cryptoassets earned through mining
|
| | | | 2,059 | | |
|
Mining pool operating fees
|
| | | | (21) | | |
|
Cryptoassets sold or converted
|
| | | | (2,203) | | |
|
Impairment of cryptocurrencies
|
| | | | 165 | | |
|
Ending Balance – November 30, 2021
|
| | | $ | — | | |
| | |
Quarterly and Yearly
Period Ended November 30, |
| |||||||||
|
2021
|
| |
2020
|
| ||||||||
Current expense (benefit) | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | |
State
|
| | | | — | | | | | | — | | |
Total current expense
|
| | | $ | — | | | | | $ | — | | |
Deferred expense (benefit) | | | | | | | | | | | | | |
Federal
|
| | | $ | 214 | | | | | $ | — | | |
State
|
| | | | — | | | | | | — | | |
Total deferred expense (benefit)
|
| | | | 214 | | | | | | — | | |
Total income tax expense (benefit)
|
| | | $ | 214 | | | | | $ | — | | |
| | |
November 30,
2021 |
| |
November 30,
2020 |
| ||||||
Expected income tax expense (benefit) at U.S. statutory rate
|
| | | | 21.00% | | | | | | 21% | | |
Extinguishment of Debt
|
| | | | -1.65% | | | | | | | | |
State Tax Expense
|
| | | | 0.00% | | | | | | 0% | | |
Change in Valuation Allowance
|
| | | | -20.87% | | | | | | -21.00% | | |
Income Tax Expense / (Benefit)
|
| | | | -1.52% | | | | | | 0% | | |
|
Class of Stock
|
| |
Ranking
|
| |
Liquidation Preferences
|
| |||
| Redeemable and Convertible Series C shares | | | Priority 1 | | | Cash equal to $25 per share plus accrued or unpaid PIK Dividends | | | Ratably share in distribution of assets in proportion to preferential entitled amounts | |
| Redeemable and Convertible Series D shares | | | Priority 1 | | | Cash equal to $25 per share plus accrued or unpaid PIK Dividends | | | Ratably share in distribution of assets in proportion to preferential entitled amounts | |
Class of Stock
|
| |
Carrying Value
|
| |
Accrued Dividends
|
| |
Accumulating
Dividends not Declared |
| |
Liquidation Amount
|
| ||||||||||||
Redeemable and Convertible Series C shares
|
| | | $ | 15,135,023 | | | | | $ | — | | | | | $ | — | | | | | $ | 16,500,000 | | |
Redeemable and Convertible Series D shares
|
| | | $ | 31,574,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 34,500,000 | | |
Service Provider
|
| |
Common Stock
Shares Committed |
| |||
ValueFinder
|
| | | | 18,938,559 | | |
SparkPool
|
| | | | 44,640,889 | | |
GMR
|
| | | | 44,640,889 | | |
Total
|
| | | | 108,220,337 | | |
Class of Stock
|
| |
Option Pricing
Fair Value |
| |
Weight
|
| ||||||
Common Stock
|
| | | $ | 0.067 | | | | | | 8% | | |
Conversion Price of Series C Shares
|
| | | | 0.130 | | | | | | 92% | | |
| | | | $ | 0.125 | | | | | | | | |
|
Weighted-average months remaining
|
| | 59.4 months | |
|
Weighted-average discount rate
|
| | 12.50% | |
Year
|
| |
Office Lease
|
| |
Other Leases
|
| |
Total
|
| |||||||||
FY22
|
| | | $ | 284 | | | | | $ | 46 | | | | | $ | 331 | | |
FY23
|
| | | | 291 | | | | | | 6 | | | | | | 297 | | |
FY24
|
| | | | 298 | | | | | | — | | | | | | 298 | | |
FY25
|
| | | | 306 | | | | | | — | | | | | | 306 | | |
FY26
|
| | | | 313 | | | | | | — | | | | | | 313 | | |
Beyond
|
| | | | 175 | | | | | | — | | | | | | 175 | | |
Year
|
| |
Total
|
| |||
FY22
|
| | | $ | 1,882,100 | | |
FY23
|
| | | | — | | |
FY24
|
| | | | — | | |
FY25
|
| | | | — | | |
FY26
|
| | | | — | | |
Beyond
|
| | | | — | | |
Basic and diluted income (loss) per share:
|
| |
Quarterly Period Ended
|
| |
Year-to-Date Period Ended
|
| ||||||||||||||||||
|
November 30, 2021
|
| |
November 30, 2020
|
| |
November 30, 2021
|
| |
November 30, 2020
|
| ||||||||||||||
Net income (loss)
|
| | | $ | (171) | | | | | $ | (74) | | | | | $ | (14,268) | | | | | $ | (147) | | |
Basic and diluted weighted average
number of shares outstanding |
| | | | 320,381,519 | | | | | | 9,066,363 | | | | | | 294,863,883 | | | | | | 9,066,363 | | |
Basic and diluted net income (loss)
per share |
| | | $ | (0.00) | | | | | $ | (0.01) | | | | | $ | (0.05) | | | | | $ | (0.02) | | |
Scenario
|
| |
Weight
|
| |||
Public Company scenario (“listing scenario”) through a traditional IPO
|
| | | | 95% | | |
Remain a private Company scenario (“private scenario”)
|
| | | | 5% | | |
| | |
As of November 30, 2021
|
| |
As of May 31, 2021
|
| ||||||||||||||||||||||||||||||
| | |
Actual
|
| |
Pro Forma
|
| |
Pro Forma
As Adjusted |
| |
Actual
|
| |
Pro Forma
|
| |
Pro Forma
As Adjusted |
| ||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 14,045 | | | | | | | | | | | $ | 14,045 | | | | | $ | 11,750 | | | | | | | | | | | $ | 11,750 | | |
Prepaid expenses and other current assets
|
| | | | 1,649 | | | | | | | | | | | | 1,649 | | | | | | 5 | | | | | | | | | | | | 5 | | |
Current assets of discontinued operations
|
| | | | — | | | | | | 1,560 | | | | | | 1,560(a) | | | | | | — | | | | | | | | | | | — | | | |
Total current assets
|
| | | | 15,694 | | | | | | | | | | | | 17,254 | | | | | | 11,755 | | | | | | | | | | | | 11,755 | | |
Right of use asset, net
|
| | | | 1,204 | | | | | | | | | | | | 1,204 | | | | | | — | | | | | | | | | | | | — | | |
Deposit on equipment
|
| | | | 26,507 | | | | | | | | | | | | 26,507 | | | | | | 3,277 | | | | | | | | | | | | 3,277 | | |
Property and equipment, net
|
| | | | 10,145 | | | | | | (4,486) | | | | | | 5,659(a) | | | | | | 20 | | | | | | | | | | | | 20 | | |
TOTAL ASSETS
|
| | | $ | 53,550 | | | | | | | | | | | $ | 50,624 | | | | | $ | 15,052 | | | | | | | | | | | $ | 15,052 | | |
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued liabilities
|
| | | $ | 5,323 | | | | | | | | | | | $ | 5,323 | | | | | $ | 248 | | | | | | | | | | | $ | 248 | | |
Accrued dividends
|
| | | | — | | | | | | | | | | | | — | | | | | | 116 | | | | | | | | | | | | 116 | | |
Current portion of operating lease liability
|
| | | | 190 | | | | | | | | | | | | 190 | | | | | | — | | | | | | | | | | | | — | | |
Related party notes payable
|
| | | | — | | | | | | | | | | | | — | | | | | | 2,135 | | | | | | | | | | | | 2,135 | | |
Customer deposits
|
| | | | 484 | | | | | | | | | | | | 484 | | | | | | — | | | | | | | | | | | | — | | |
Deferred revenue
|
| | | | 526 | | | | | | | | | | | | 526 | | | | | | — | | | | | | | | | | | | — | | |
Other current liabilities
|
| | | | 16 | | | | | | | | | | | | 16 | | | | | | — | | | | | | | | | | | | — | | |
Total current liabilities
|
| | | | 6,539 | | | | | | | | | | | | 6,539 | | | | | | 2,500 | | | | | | | | | | | | 2,500 | | |
Deferred tax liability
|
| | | | 214 | | | | | | | | | | | | 214 | | | | | | — | | | | | | | | | | | | — | | |
Long-term portion of operating lease liability
|
| | | | 1,010 | | | | | | | | | | | | 1,010 | | | | | | — | | | | | | | | | | | | — | | |
Total liabilities
|
| | | | 1,224 | | | | | | | | | | | | 1,224 | | | | | | — | | | | | | | | | | | | — | | |
Commitments and contingencies (Note 10) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mezzanine equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Series C, convertible and redeemable preferred stock, $.001 par value, 660,000 shares authorized, issued and outstanding
|
| | | $ | 15,135 | | | | | | | | | | | $ | 15,135 | | | | | $ | 15,135 | | | | | | | | | | | $ | 15,135 | | |
Series D, convertible and redeemable preferred stock, $.001 par value, 1,380,000 shares authorized, issued, and outstanding
|
| | | | 31,574 | | | | | | | | | | | | 31,574 | | | | | | — | | | | | | | | | | | | — | | |
Total mezzanine’ equity
|
| | | | 46,709 | | | | | | | | | | | | 46,709 | | | | | | 15,135 | | | | | | | | | | | | 15,135 | | |
Shareholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Series A, convertible preferred stock, $.001 par value, authorized 70,000 shares, 0 and 70,000 shares issued and outstanding, respectively
|
| | | $ | — | | | | | | | | | | | $ | — | | | | | $ | 3,370 | | | | | | | | | | | $ | 3,370 | | |
Series B convertible preferred stock, $.001 par value, authorized 50,000 shares, 0 and 50,000 shares issued and outstanding, respectively
|
| | | | — | | | | | | | | | | | | — | | | | | | 1,849 | | | | | | | | | | | | 1,849 | | |
Common stock, $.001 par value, 1,000,000,000 shares authorized, 320,381,519 and 9,066,363 shares issued and outstanding
|
| | | | 3,121 | | | | | | | | | | | | 3,121 | | | | | | 9 | | | | | | | | | | | | 9 | | |
Additional paid in capital
|
| | | | 40,856 | | | | | | | | | | | | 40,856 | | | | | | 13,874 | | | | | | | | | | | | 13,874 | | |
Treasury stock, 36,300 shares, at cost
|
| | | | (62) | | | | | | | | | | | | (62) | | | | | | (62) | | | | | | | | | | | | (62) | | |
Accumulated deficit
|
| | | | (44,837) | | | | | | (2,926) | | | | | | (47,763)(a) | | | | | | (21,623) | | | | | | | | | | | | (21,623) | | |
Total shareholders’ equity
|
| | | | (922) | | | | | | | | | | | | (3,848) | | | | | | (2,584) | | | | | | | | | | | | (2,584) | | |
Total Mezzanine and shareholders’ equity
|
| | | | 45,787 | | | | | | | | | | | | 42,861 | | | | | | 12,551 | | | | | | | | | | | | 12,551 | | |
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY
|
| | | $ | 53,550 | | | | | | | | | | | $ | 50,624 | | | | | $ | 15,051 | | | | | | | | | | | $ | 15,051 | | |
| | |
Three Months Ended
|
| | |
Six Months Ended
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
November 30, 2021
|
| |
November 30, 2020
|
| | |
November 30, 2021
|
| |
November 30, 2020
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
Actual
|
| |
Pro Forma
Adjustment |
| |
Pro Forma
As Adjusted |
| |
Actual
|
| |
Pro Forma
Adjustment |
| |
Pro Forma
As Adjusted |
| | |
Actual
|
| |
Pro Forma
Adjustment |
| |
Pro Forma
As Adjusted |
| |
Actual
|
| |
Pro Forma
Adjustment |
| |
Pro Forma
As Adjusted |
| ||||||||||||||||||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cryptocurrency mining revenue, net
|
| | | $ | 1,426 | | | | | $ | (1,426) | | | | | $ | — | | | | | $ | — | | | |
|
| | | $ | — | | | | | | $ | 2,038 | | | | | $ | (2,038) | | | | | $ | — | | | | | $ | — | | | |
|
| | | $ | —(b) | | |
| | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | — | | |
Cost of revenues
|
| | | | 433 | | | | | | (433) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | 782 | | | | | | (782) | | | | | | — | | | | | | — | | | | | | | | | —(b) | | |
Gross Profit
|
| | | | 993 | | | | | | | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | 1,256 | | | | | | | | | | | | — | | | | | | — | | | | | | | | | — | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, General and Administrative
|
| | | | 1,181 | | | | | | | | | | | | 1,181 | | | | | | — | | | | | | | | | — | | | | | | | 1,879 | | | | | | | | | | | | 1,879 | | | | | | — | | | | | | | | | — | | |
Stock-based compensation for service agreement
|
| | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | 12,337 | | | | | | | | | | | | 12,337 | | | | | | — | | | | | | | | | — | | |
Impairment of Cryptocurrency Assets
|
| | | | 145 | | | | | | (145) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | 165 | | | | | | (165) | | | | | | — | | | | | | — | | | | | | | | | —(c) | | |
Depreciation
|
| | | | 174 | | | | | | | | | | | | 174 | | | | | | — | | | | | | | | | — | | | | | | | 177 | | | | | | | | | | | | 177 | | | | | | — | | | | | | | | | — | | |
Total costs and expenses
|
| | | | 1,500 | | | | | | | | | | | | 1,355 | | | | | | — | | | | | | | | | — | | | | | | | 14,558 | | | | | | | | | | | | 14,393 | | | | | | — | | | | | | | | | — | | |
Operating income (loss)
|
| | | | (507) | | | | | | | | | | | | (1,355) | | | | | | — | | | | | | | | | — | | | | | | | (13,302) | | | | | | | | | | | | (14,393) | | | | | | — | | | | | | | | | — | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Expense
|
| | | | — | | | | | | | | | | | | — | | | | | | (74) | | | | | | | | | (74) | | | | | | | — | | | | | | | | | | | | — | | | | | | (147) | | | | | | | | | (147) | | |
Gain/Loss on Extinguishment of Accounts Payable
|
| | | | 285 | | | | | | | | | | | | 285 | | | | | | — | | | | | | | | | — | | | | | | | 325 | | | | | | | | | | | | 325 | | | | | | — | | | | | | | | | — | | |
Gain/Loss on Extinguishment of Debt
|
| | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | (1,342) | | | | | | | | | | | | (1,342) | | | | | | — | | | | | | | | | — | | |
Gain/Loss on Sale of Fixed Assets
|
| | | | 265 | | | | | | (265) | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | 265 | | | | | | (265) | | | | | | — | | | | | | — | | | | | | | | | —(d) | | |
Income Tax Expense
|
| | | | (214) | | | | | | | | | | | | (214) | | | | | | — | | | | | | | | | — | | | | | | | (214) | | | | | | | | | | | | (214) | | | | | | — | | | | | | | | | — | | |
Total Other Income (Expense)
|
| | | | 336 | | | | | | | | | | | | 71 | | | | | | (74) | | | | | | | | | (74) | | | | | | | (966) | | | | | | | | | | | | (1,231) | | | | | | (147) | | | | | | | | | (147) | | |
Net Income (loss) from continuing Operations
|
| | | | (171) | | | | | | | | | | | | (1,284) | | | | | | (74) | | | | | | | | | (74) | | | | | | | (14,268) | | | | | | | | | | | | (15,624) | | | | | | (147) | | | | | | | | | (147) | | |
Net Income (loss) from discontinued
Operations |
| | | | — | | | | | | (1,813) | | | | | | (1,813) | | | | | | — | | | | | | | | | — | | | | | | | — | | | | | | (1,570) | | | | | | (1,570) | | | | | | — | | | | | | | | | —(e) | | |
Net Income (loss) attributable to Applied Blockchain, Inc.
|
| | | $ | (171) | | | | | | | | | | | $ | (3,097) | | | | | $ | (74) | | | | | | | | $ | (74) | | | | | | $ | (14,268) | | | | | | | | | | | $ | (17,194) | | | | | $ | (147) | | | | | | | | $ | (147) | | |
Basic and diluted net loss per share
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Continuing Operations
|
| | | $ | (0.00) | | | | | | | | | | | $ | (0.00) | | | | | $ | (0.01) | | | | | | | | $ | (0.01) | | | | | | $ | (0.05) | | | | | | | | | | | $ | (0.05) | | | | | $ | (0.02) | | | | | | | | $ | (0.02) | | |
Discontinued Operations
|
| | | $ | — | | | | | | | | | | | $ | (0.01) | | | | | $ | — | | | | | | | | $ | — | | | | | | $ | — | | | | | | | | | | | $ | (0.01) | | | | | $ | — | | | | | | | | $ | — | | |
Basic and diluted net loss per share
|
| | | $ | (0.00) | | | | | | | | | | | $ | (0.01) | | | | | $ | (0.01) | | | | | | | | $ | (0.01) | | | | | | $ | (0.05) | | | | | | | | | | | $ | (0.06) | | | | | $ | (0.02) | | | | | | | | $ | (0.02) | | |
Basic and diluted weighted average
number of shares outstanding |
| | | | 320,381,519 | | | | | | | | | | | | 320,381,519 | | | | | | 9,066,363 | | | | | | | | | 9,066,363 | | | | | | | 294,863,883 | | | | | | | | | | | | 294,863,883 | | | | | | 9,066,363 | | | | | | | | | 9,066,363 | | |
|
B. Riley Securities
|
| |
Needham & Company
|
|
|
Craig-Hallum
|
| |
D.A. Davidson & Co.
|
|
|
Lake Street
|
| |
Northland Capital Markets
|
|
|
SEC Registration Fee
|
| | | $ | 6,952.50 | | |
|
Nasdaq Global Select Market Listing Fee
|
| | | $ | 295,000 | | |
|
Printing Fees and Expenses
|
| | | $ | 125,000 | | |
|
Accounting Fees and Expenses
|
| | | $ | 60,000 | | |
|
Legal Fees and Expenses
|
| | | $ | 200,000 | | |
|
Transfer Agent and Registrar Fees
|
| | | $ | 11,000 | | |
|
Miscellaneous Fees and Expenses
|
| | | $ | 5,000 | | |
|
Total
|
| | | $ | 702,952.50 | | |
Exhibit
No. |
| |
Description
|
|
23.4***** | | | | |
23.5****** | | | | |
23.6 | | | | |
23.7*******
|
| | | |
24.1*** | | | Power of Attorney (contained in the signature page of the original filing of this Registration Statement on Form S-1) | |
107****** | | | |
| | | |
APPLIED BLOCKCHAIN, INC.
|
| |||
| | | | By: | | |
/s/ Wes Cummins
Name: Wes Cummins
Title:
Chief Executive Officer, Secretary, Treasurer, Chairperson of the Board and Director (Principal Executive Officer)
|
|
| | | | By: | | |
/s/ David Rench
Name: David Rench
Title:
Chief Financial Officer (Principal Financial and Accounting Officer)
|
|
|
Person
|
| |
Capacity
|
| |
Date
|
|
|
/s/ Wes Cummins
Wes Cummins
|
| |
Chairperson of the Board and Director
(Principal Executive Officer) |
| |
April 8, 2022
|
|
|
*
Chuck Hastings
|
| | Director | | |
April 8, 2022
|
|
|
*
Kelli McDonald
|
| | Director | | |
April 8, 2022
|
|
|
*
Douglas Miller
|
| | Director | | |
April 8, 2022
|
|
|
*
Virginia Moore
|
| | Director | | |
April 8, 2022
|
|
|
*
Richard Nottenburg
|
| | Director | | |
April 8, 2022
|
|
|
*
Jason Zhang
|
| | Director | | |
April 8, 2022
|
|
| *By: | | |
/s/ Wes Cummins
Wes Cummins
Attorney-In-Fact |
| | | | | | |
Exhibit 5.1
Snell & Wilmer L.L.P.
Hughes Center
3883 Howard Hughes Parkway, Suite 1100
Las Vegas, NV 89169-5958
TELEPHONE: 702.784.5200
FACSIMILE: 702.784.5252
April 8, 2022
Applied Blockchain, Inc.
3811 Turtle Creek Blvd.
Suite 2100
Dallas, TX 75219
Re: Registration Statement on Form S-1
Ladies and Gentlemen:
We have served as Nevada counsel to Applied Blockchain, Inc., a Nevada corporation (the “Company”), in connection with the Company’s filing with the Securities and Exchange Commission (the “Commission”) of a registration statement on Form S-1, Registration No. 333-261278, originally filed on November 22, 2021, as amended from time to time including on the date hereof (the “Registration Statement”), under the Securities Act of 1933, as amended (the “Securities Act”). The Registration Statement relates to the issuance and sale of up to $75,000,000 proposed maximum aggregate offering price of a presently indeterminate number of shares (the “Shares”) of the Company’s common stock, $0.001 par value per share (the “Common Stock”) by the Company.
This opinion is being furnished in accordance with the requirements of Item 601(b)(5) of Regulation S-K under the Securities Act in connection with the filing of the Registration Statement.
In connection with our representation of the Company, and as a basis for the opinion hereinafter set forth, we have relied upon and examined matters of fact, questions of law, and documents as we have deemed necessary to render this opinion, including the originals, or copies certified or otherwise identified to our satisfaction, of the following documents (hereinafter collectively referred to as the “Documents”):
1. | The Registration Statement and exhibits thereto; |
2. | The preliminary prospectus, dated April 7, 2022, prepared in connection with the Registration Statement (the “Prospectus”); |
3. | The Second Amended and Restated Articles of Incorporation of the Company filed with the Secretary of State of the State of Nevada, as amended through the date hereof, certified as of the date hereof by an officer of the Company (the “Articles”); |
4. | The form of Certificate of Change to be filed by the Company with the Secretary of State of the State of Nevada to effect the Reverse Stock Split (as referred to in the Prospectus under the heading “Reverse Stock Split”) (the “Certificate”); |
5. | The Amended and Restated Bylaws of the Company, certified as of the date hereof by an officer of the Company; |
6. | The Certificate of Existence with Status in Good Standing with respect to the Company, certified by the Secretary of State of the State of Nevada, dated as of a recent date; |
7. | The form of underwriting agreement to be executed by and among the Company, B. Riley Securities, Inc., as representative of the several underwriters named therein, and Northland Securities, Inc., which has been filed as Exhibit 1.1 to the Registration Statement (the “Underwriting Agreement”); |
8. | Resolutions adopted by the Board of Directors of the Company, or a duly authorized committee thereof, relating to the adoption, approval, authorization and/or ratification of (i) the Registration Statement and the issuance and sale of the Shares pursuant to the Registration Statement and the Prospectus; (ii) the Underwriting Agreement; (iii) the Reverse Stock Split and (iv) and other actions with regard thereto (collectively, the “Resolutions”), certified as of the date hereof by an officer of the Company; |
9. | A certificate executed by an officer of the Company, dated as of the date hereof, as to certain factual matters; and |
10. | Such other documents and matters as we have deemed necessary or appropriate to express the opinion set forth below, subject to the assumptions, limitations, and qualifications stated herein. |
In expressing the opinion set forth below, we have assumed the following:
A. | Each individual executing any of the Documents, whether on behalf of such individual or any other person, is legally competent to do so. |
B. | All Documents submitted to us as originals are authentic. The form and content of all Documents submitted to us as unexecuted drafts do not differ in any respect relevant to this opinion from the form and content of such Documents executed and delivered. All Documents submitted to us as certified or photostatic copies conform to the original documents. All signatures on all such Documents are genuine. All public records reviewed or relied upon by us or on our behalf are true and complete. All representations, warranties, statements, and information contained in the Documents are true and complete. There has been no oral or written modification of or amendment to any of the Documents, and there has been no waiver of any provision of any of the Documents, by action or omission of the parties or otherwise. |
C. | The Registration Statement, and any amendments thereto, will have become effective under the Securities Act. |
D. | That there exist, under the Articles, the requisite number of authorized but unissued shares of Common Stock. |
On the basis of, and in reliance on, the foregoing examination and subject to the assumptions, exceptions, qualifications, and limitations contained herein, we are of the opinion that when (i) the Company has properly filed the Certificate with the Secretary of State of the State of Nevada, (ii) the price at which the Shares will be sold has been approved by the Board of Directors of the Company, or a duly authorized committee thereof, and (iii) the Shares have been duly issued and delivered against payment therefor in accordance with the terms of the Underwriting Agreement, the Shares will have been duly authorized and will be validly issued, fully paid and non-assessable.
We render this opinion only with respect to the general corporate law of the State of Nevada as set forth in Chapter 78 of the Nevada Revised Statutes. We neither express nor imply any obligation with respect to any other laws or the laws of any other jurisdiction or of the United States.
The opinion expressed herein is limited to the matters specifically set forth herein and no other opinion shall be inferred beyond the matters expressly stated. We assume no obligation to supplement this opinion if any applicable law changes after the date hereof or if we become aware of any fact that might change the opinion expressed herein after the date hereof. Without limiting the generality of the foregoing, we neither express nor imply any opinion regarding the contents of the Registration Statement.
We hereby consent to the filing of this opinion as Exhibit 5.1 to the Registration Statement filed by the Company. We also consent to the reference to our firm under the heading “Legal Matters” in the Registration Statement filed by the Company. In giving this consent, we do not admit that we are within the category of persons whose consent is required by Section 7 of the Securities Act or the rules and regulations of the Commission promulgated thereunder.
Very truly yours, | |
/s/ Snell & Wilmer L.L.P. | |
Snell & Wilmer L.L.P. |
Exhibit 23.7
Independent Registered Public Accounting Firm’s Consent
We consent to the inclusion in this Registration Statement of Applied Blockchain, Inc. on Amendment No. 5 to the Form S-1 File No. 333-261278 of our report dated August 13, 2021, with respect to our audits of the consolidated financial statements of Applied Blockchain, Inc. as of May 31, 2021 and 2020, and for the two year period then ended, which report appears in the Prospectus, which is part of this Registration Statement. We also consent to the reference to our Firm under the heading “Experts” in such Prospectus.
/s/ Marcum llp
Marcum llp
New York, NY
April 7, 2022
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