|
Nevada
(State or other jurisdiction of incorporation or organization) |
| |
7370
(Primary Standard Industrial Classification Code Number) |
| |
95-4863690
(I.R.S. Employer Identification No.) |
|
|
Large accelerated filer
☐
|
| |
Accelerated filer
☐
|
|
|
Non-accelerated filer
☒
|
| |
Smaller reporting company
☒
|
|
| | | |
Emerging growth company
☐
|
|
| | | | | ii | | | |
| | | | | ii | | | |
| | | | | iii | | | |
| | | | | 1 | | | |
| | | | | 8 | | | |
| | | | | 34 | | | |
| | | | | 36 | | | |
| | | | | 37 | | | |
| | | | | 38 | | | |
| | | | | 39 | | | |
| | | | | 41 | | | |
| | | | | 46 | | | |
| | | | | 58 | | | |
| | | | | 59 | | | |
| | | | | 60 | | | |
| | | | | 66 | | | |
| | | | | 78 | | | |
| | | | | 80 | | | |
| | | | | 83 | | | |
| | | | | 89 | | | |
| | | | | 96 | | | |
| | | | | 98 | | | |
| | | | | 99 | | | |
| | | | | 104 | | | |
| | | | | 106 | | | |
| | | | | 107 | | | |
| | | | | 108 | | | |
| | | | | 110 | | |
| | |
Prior to the Reverse Stock Split
|
| |
After Giving Effect to the Reverse Stock Split
|
| ||||||||||||||||||||||||||||||
| | |
0% Debt
Finance |
| |
30% Debt
Finance |
| |
70% Debt
Finance |
| |
0% Debt
Finance |
| |
30% Debt
Finance |
| |
70% Debt
Finance |
| ||||||||||||||||||
Capital Expenditure per MW
|
| | | $ | 250,000 | | | | | $ | 250,000 | | | | | $ | 250,000 | | | | | $ | 250,000 | | | | | $ | 250,000 | | | | | $ | 250,000 | | |
Total Capital Expenditure for
1.5GW |
| | | $ | 375,000,000 | | | | | $ | 375,000000 | | | | | $ | 375,000,000 | | | | | $ | 375,000,000 | | | | | $ | 375,000,000 | | | | | $ | 375,000,000 | | |
Amount Financed with Debt
|
| | | $ | 0 | | | | | $ | 112,500,000 | | | | | $ | 262,500,000 | | | | | $ | 0 | | | | | $ | 112,500,000 | | | | | $ | 262,500,000 | | |
Total Capital Contribution
|
| | | $ | 375,000,000 | | | | | $ | 262,500,000 | | | | | $ | 112,500,000 | | | | | $ | 375,000,000 | | | | | $ | 262,500,000 | | | | | $ | 112,500,000 | | |
Capital Contribution by Antpool (20%)
|
| | | $ | 75,000,000 | | | | | $ | 42,500,000 | | | | | $ | 22,500,000 | | | | | $ | 75,000,000 | | | | | $ | 42,500,000 | | | | | $ | 22,500,000 | | |
APLD Shares issuable upon
Conversion of Antpool Capital Contributions at a $1.25 conversion price (or $7.50 after giving effect to the Reverse Stock Split) |
| | | | 60,000,000 | | | | | | 42,000,000 | | | | | | 18,000,000 | | | | | | 10,000,000 | | | | | | 7,000,000 | | | | | | 3,000,000 | | |
Shares Outstanding after this Offering plus Shares issuable to Antpool
|
| | | | 603,148,998 | | | | | | 585,148,998 | | | | | | 561,148,998 | | | | | | 100,524,748 | | | | | | 97,524,748 | | | | | | 93,424,748 | | |
Percentage of APLD Common Stock
if Antpool Converted all of its Capital Contributions |
| | | | 9.95% | | | | | | 7.18% | | | | | | 3.21% | | | | | | 9.95% | | | | | | 7.18% | | | | | | 3.21% | | |
| | |
As of November 30, 2021
|
| | | | |||||||||||||||
| | |
Actual
|
| |
Pro Forma As Adjusted
|
| | ||||||||||||||
| | | | | | | | |
Prior to the
Reverse Stock Split |
| |
After giving effect to the
Reverse Stock Split |
| | ||||||||
| | |
(in thousands)
|
| | | ||||||||||||||||
Cash and cash equivalents
|
| | | $ | 14,045 | | | | | $ | 14,045 | | | | | $ | 14,045 | | | | ||
Mezzanine equity: | | | | | | | | | | | | | | | | |||||||
Series C convertible and redeemable preferred
stock, $.001 par value, 660,000 shares authorized, issued and outstanding and 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 outstanding and 0 and 0 shares outstanding, respectively |
| | | | 31,574 | | | | | | — | | | | | | — | | | | ||
Stockholders’ equity | | | | | | | | | | | | | | | | |||||||
Common stock, $.001 par value, 1,000,000,000 (or 166,666,666 after giving effect to the Reverse Stock Split) shares authorized, 320,381,519, 328,581,519 and 9,524,748 shares issued and outstanding, respectively
|
| | | | 3,121 | | | | | | 3,336 | | | | | | 91 | | | | ||
Additional paid-in capital
|
| | | | 40,856 | | | | | | 88,354 | | | | | | 91,599 | | | | ||
Treasury Stock, 36,300 shares, at cost (or 6,050 after the Reverse Stock Split)
|
| | | | (62) | | | | | | (62) | | | | | | (62) | | | | ||
Accumulated deficit
|
| | | | (44,837) | | | | | | (44,837) | | | | | | (44,837) | | | | ||
Total stockholders’ equity
|
| | | | (922) | | | | | | 46,791 | | | | | | 46,791 | | | | ||
Total capitalization
|
| | | | 45,787 | | | | | | 46,791 | | | | | | 46,791 | | | |
| | |
Before the Reverse Stock Split
|
| |
After Giving Effect to the Reverse Stock Split
|
| ||||||||||||||||||
Fiscal Quarter End
|
| |
RSUs Vested
|
| |
Implied
Expense |
| |
RSUs Vested
|
| |
Implied
Expense |
| ||||||||||||
May 31, 2022
|
| | | | 2,650,000 | | | | | $ | 3,551,000 | | | | | | 441,666 | | | | | $ | 3,551,000 | | |
August 31, 2022
|
| | | | 4,800,000 | | | | | $ | 6,432,000 | | | | | | 800,000 | | | | | $ | 6,432,000 | | |
November 30, 2022
|
| | | | 3,300,000 | | | | | $ | 4,422,000 | | | | | | 550,000 | | | | | $ | 4,422,000 | | |
| | |
Before the Reverse Stock Split
|
| |
After Giving Effect to the Reverse Stock Split
|
| ||||||||||||||||||
Fiscal Quarter End
|
| |
Vesting
Restricted Stock |
| |
Implied
Expense |
| |
Vesting
Restricted Stock |
| |
Implied
Expense |
| ||||||||||||
May 31, 2022
|
| | | | 1,800,000 | | | | | $ | 2,412,000 | | | | | | 300,000 | | | | | $ | 2,412,000 | | |
August 31, 2022
|
| | | $ | 450,000 | | | | | $ | 603,000 | | | | | | 75,000 | | | | | $ | 603,000 | | |
November 30, 2022
|
| | | $ | 450,000 | | | | | $ | 603,000 | | | | | | 75,000 | | | | | $ | 603,000 | | |
February 28, 2023
|
| | | $ | 450,000 | | | | | $ | 603,000 | | | | | | 75,000 | | | | | $ | 603,000 | | |
May 31, 2023
|
| | | $ | 450,000 | | | | | $ | 603,000 | | | | | | 75,000 | | | | | $ | 603,000 | | |
| | |
Before the Reverse Stock Split
|
| |
After Giving Effect to the Reverse Stock Split
|
| ||||||||||||||||||
Fiscal Quarter End
|
| |
Vesting
Restricted Stock |
| |
Implied
Expense |
| |
Vesting
Restricted Stock |
| |
Implied
Expense |
| ||||||||||||
May 31, 2022
|
| | | | 2,300,000 | | | | | $ | 3,082,000 | | | | | | 383,334 | | | | | $ | 3,082,000 | | |
August 31, 2022
|
| | | | 575,000 | | | | | $ | 770,500 | | | | | | 95,833 | | | | | $ | 770,500 | | |
November 30, 2022
|
| | | | 575,000 | | | | | $ | 770,500 | | | | | | 95,833 | | | | | $ | 770,500 | | |
February 28, 2023
|
| | | | 575,000 | | | | | $ | 770,500 | | | | | | 95,833 | | | | | $ | 770,500 | | |
May 31, 2023
|
| | | | 575,000 | | | | | $ | 770,500 | | | | | | 95,833 | | | | | $ | 770,500 | | |
Name
|
| |
Age
|
| |
Position(s)
|
| |
Period of Services
|
|
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
|
| | | | |||
|
Prior to the
Reverse Stock Split |
| |
After Giving Effect to the
Reverse Stock Split |
| |
Vesting Date*
|
|
|
1,500,000
|
| |
250,000
|
| |
4/1/2022
|
|
|
375,000
|
| |
62,500
|
| |
7/1/2022
|
|
|
375,000
|
| |
62,500
|
| |
10/1/2022
|
|
|
375,000
|
| |
62,500
|
| |
1/1/2023
|
|
|
375,000
|
| |
62,500
|
| |
4/1/2023
|
|
|
Number of Shares
|
| | | | |||
|
Prior to the
Reverse Stock Split |
| |
After Giving Effect to the
Reverse Stock Split |
| |
Vesting Date*
|
|
|
500,000
|
| |
83,333
|
| |
4/1/2022
|
|
|
125,000
|
| |
20,833
|
| |
7/1/2022
|
|
|
125,000
|
| |
20,833
|
| |
10/1/2022
|
|
|
125,000
|
| |
20,833
|
| |
1/1/2023
|
|
|
125,000
|
| |
20,834
|
| |
4/1/2023
|
|
|
Number of Shares
|
| | | | |||
|
Prior to the
Reverse Stock Split |
| |
After Giving Effect to the
Reverse Stock Split |
| |
Vesting Date*
|
|
|
300,000
|
| |
50,000
|
| |
4/1/2022
|
|
|
75,000
|
| |
12,500
|
| |
7/1/2022
|
|
|
75,000
|
| |
12,500
|
| |
10/1/2022
|
|
|
75,000
|
| |
12,500
|
| |
1/1/2023
|
|
|
75,000
|
| |
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
(As-if Preferred was Converted) |
| |
Total Common
(As-if Preferred was Converted and Reverse Stock Split effected) |
| |
Percentage
Beneficially Owned |
| |
Total
Common |
| |
Total Common
(As-if Preferred was Converted and Reverse Stock Split effected) |
| |
Percentage
Beneficially Owned |
| ||||||||||||||||||
Directors and Officers: | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Wes Cummins
|
| | | | 127,272,414(b) | | | | | | 21,212,068(b) | | | | | | 23.43% | | | | | | 127,272,414(b) | | | | | | 21,212,068(b) | | | | | | 23.43% | | |
David Rench
|
| | | | 1,002,847(c) | | | | | | 167,141(c) | | | | | | * | | | | | | 1,002,847(c) | | | | | | 167,141(c) | | | | | | * | | |
Chuck Hastings
|
| | | | 2,607,000(d) | | | | | | 434,500(d) | | | | | | * | | | | | | 2,607,000(d) | | | | | | 434,500(d) | | | | | | * | | |
Kelli McDonald
|
| | | | 600,000(e) | | | | | | 100,000(e) | | | | | | * | | | | | | 600,000(e) | | | | | | 100,000(e) | | | | | | * | | |
Douglas Miller
|
| | | | 600,000(f) | | | | | | 100,000(f) | | | | | | * | | | | | | 600,000(f) | | | | | | 100,000(f) | | | | | | * | | |
Virginia Moore
|
| | | | 5,508,962(g) | | | | | | 918,160(g) | | | | | | 1.01% | | | | | | 1,530,000(m) | | | | | | 255,000(m) | | | | | | * | | |
Richard Nottenburg
|
| | | | 600,000(h) | | | | | | 100,000(h) | | | | | | * | | | | | | 600,000(h) | | | | | | 100,000(h) | | | | | | * | | |
Jason Zhang
|
| | | | 19,538,559(i) | | | | | | 3,256,426(i) | | | | | | 3.60% | | | | | | 19,538,286(i) | | | | | | 3,256,426(i) | | | | | | 3.60% | | |
Regina Ingel
|
| | | | 600,000(j) | | | | | | 100,000(j) | | | | | | * | | | | | | 600,000(j) | | | | | | 100,000(j) | | | | | | * | | |
| | |
Before Offering
|
| |
After Offering
|
| | ||||||||||||||||||||||||||||||||
Name and Address(a)
|
| |
Total Common
(As-if Preferred was Converted) |
| |
Total Common
(As-if Preferred was Converted and Reverse Stock Split effected) |
| |
Percentage
Beneficially Owned |
| |
Total
Common |
| |
Total Common
(As-if Preferred was Converted and Reverse Stock Split effected) |
| |
Percentage
Beneficially Owned |
| | ||||||||||||||||||||
Officers and Directors as a group
(9 people) |
| | | | 158,329,782(b)-(j) | | | | | | 26,388,295(b)-(j) | | | | | | 29.15% | | | | | | 154,350,820(b)-(g), | | | | | | 25,725,135(b)-(g), | | | | | | 28.42% | | | | ||
| | | | | | | | | | | | | | | | | | | |
|
(i)-(j),(m)
|
| | | |
|
(i)-(j),(m)
|
| | | | | | | | | ||||
| | | 5%Holders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Xin Xu
c/o Xsquared Holding Limited c/o Vistra Corporate Services Centre Wickhams Cay II Tortola British Virgin Islands |
| | | | 44,640,889(d)(k) | | | | | | 7,440,148 | | | | | | 8.22% | | | | | | 44,640,889(d)(k) | | | | | | 7,440,148 | | | | | | 8.22% | | | | ||
Guo Chen
c/o GMR Limited Trinity Chamber PO BOX 4301 Tortola British Virgin Islands |
| | | | 44,640,889(l) | | | | | | 7,440,148 | | | | | | 8.22% | | | | | | 44,640,889(l) | | | | | | 7,440,148 | | | | | | 8.22% | | | |
| | |
Shares of
Common Stock Beneficially owned Prior to the Sale of Registered Shares(a)(b) |
| |
Shares of
Common Stock Beneficially Owned Prior to the Sale of Registered Shares Giving Effect to the Reverse Stock Split |
| |
Registered
Shares being Offered(b) |
| |
Registered
Shares Offered Giving Effect to Reverse Stock Split |
| |
Shares of Common Stock
Beneficially Owned after the Sale of Registered Shares |
| | ||||||||||||||||||||||||||
Name of Selling Stockholder
|
| |
Shares(c)
|
| |
Shares
Giving Effect to Reverse Stock Split |
| |
%
|
| |||||||||||||||||||||||||||||||||
Deep Field Opportunities Fund, LP
|
| | | | 14,276,200 | | | | | | 2,379,366 | | | | | | 14,276,200 | | | | | | 2,379,366 | | | | | | — | | | | | | — | | | | | | * | | |
Knott Partners LP
|
| | | | 13,747,885 | | | | | | 2,291,314 | | | | | | 13,747,885 | | | | | | 2,291,394 | | | | | | — | | | | | | — | | | | | | * | | |
William Herbert Hunt Trust,
Estate |
| | | | 13,754,446 | | | | | | 2,292,407 | | | | | | 13,754,446 | | | | | | 2,292,407 | | | | | | — | | | | | | — | | | | | | * | | |
Voss Value Master Fund, L.P.
|
| | | | 9,789,400 | | | | | | 1,631,566 | | | | | | 9,789,400 | | | | | | 1,631,566 | | | | | | — | | | | | | — | | | | | | * | | |
Voss Value-Oriented Special Situations Fund
|
| | | | 1,158,807 | | | | | | 193,134 | | | | | | 1,158,807 | | | | | | 193,134 | | | | | | — | | | | | | — | | | | | | * | | |
Keen Microcap Fund LP
|
| | | | 7,513,632 | | | | | | 1,252,272 | | | | | | 7,513,632 | | | | | | 1,252,272 | | | | | | — | | | | | | — | | | | | | * | | |
Anson Investments Master Fund LP
|
| | | | 7,856,582 | | | | | | 1,309,430 | | | | | | 7,856,582 | | | | | | 1,309,430 | | | | | | — | | | | | | — | | | | | | * | | |
Nokomis Capital Master Fund LP
|
| | | | 5,855,728 | | | | | | 975,954 | | | | | | 5,855,728 | | | | | | 975,954 | | | | | | — | | | | | | — | | | | | | * | | |
AFOB FIP MS, LLC
|
| | | | 8,023,550 | | | | | | 1,337,258 | | | | | | 8,023,550 | | | | | | 1,337,258 | | | | | | — | | | | | | — | | | | | | * | | |
David S. Hunt
|
| | | | 4,588,887 | | | | | | 764,814 | | | | | | 4,588,887 | | | | | | 764,814 | | | | | | — | | | | | | — | | | | | | * | | |
Hunt Technology Ventures,
LP |
| | | | 4,435,932 | | | | | | 739,322 | | | | | | 4,435,932 | | | | | | 739,322 | | | | | | — | | | | | | — | | | | | | * | | |
Kingdom Investments,
Limited |
| | | | 5,098,773 | | | | | | 849,795 | | | | | | 5,098,773 | | | | | | 849,795 | | | | | | — | | | | | | — | | | | | | * | | |
Placid Ventures, L.P.
|
| | | | 5,098,773 | | | | | | 849,795 | | | | | | 5,098,773 | | | | | | 849,795 | | | | | | — | | | | | | — | | | | | | * | | |
Bond E Oman
|
| | | | 3,467,200 | | | | | | 577,866 | | | | | | 3,467,200 | | | | | | 577,866 | | | | | | — | | | | | | — | | | | | | * | | |
Granite Point Capital Master
Fund, LP |
| | | | 4,626,007 | | | | | | 771,001 | | | | | | 4,626,007 | | | | | | 771,001 | | | | | | — | | | | | | — | | | | | | * | | |
Granite Point Capital Scorpion Focused Ideas Fund
|
| | | | 4,626,007 | | | | | | 771,001 | | | | | | 4,626,007 | | | | | | 771,001 | | | | | | — | | | | | | — | | | | | | * | | |
Bradley L. Radoff
|
| | | | 3,671,098 | | | | | | 611,849 | | | | | | 3,671,098 | | | | | | 611,849 | | | | | | — | | | | | | — | | | | | | * | | |
Harvey Master Fund, LP
|
| | | | 6,723,356 | | | | | | 1,120,559 | | | | | | 3,180,071 | | | | | | 530,012 | | | | | | 3,543,285 | | | | | | 590,547 | | | | | | * | | |
Patrice McNicoll
|
| | | | 2,938,685 | | | | | | 489,780 | | | | | | 2,938,685 | | | | | | 489,780 | | | | | | — | | | | | | — | | | | | | * | | |
Jimmy Baker
|
| | | | 326,400 | | | | | | 54,400 | | | | | | 326,400 | | | | | | 54,400 | | | | | | — | | | | | | — | | | | | | * | | |
Star V Partners LLC
|
| | | | 3,319,773 | | | | | | 553,295 | | | | | | 3,319,773 | | | | | | 553,295 | | | | | | — | | | | | | — | | | | | | * | | |
Anson East Master Fund LP
|
| | | | 2,619,032 | | | | | | 436,505 | | | | | | 2,619,032 | | | | | | 436,505 | | | | | | — | | | | | | — | | | | | | * | | |
Redcap Investments LP
|
| | | | 2,880,907 | | | | | | 480,151 | | | | | | 2,880,907 | | | | | | 480,151 | | | | | | — | | | | | | — | | | | | | * | | |
Lyda Hunt-Herbert Trusts – Bruce William Hunt
|
| | | | 2,880,907 | | | | | | 480,151 | | | | | | 2,880,907 | | | | | | 480,151 | | | | | | — | | | | | | — | | | | | | * | | |
Kenneth R. Werner
|
| | | | 57,955 | | | | | | 9,659 | | | | | | 57,955 | | | | | | 9,659 | | | | | | — | | | | | | — | | | | | | * | | |
Kenneth R. Werner Revocable Trust
|
| | | | 1,487,800 | | | | | | 237,966 | | | | | | 1,487,800 | | | | | | 237,966 | | | | | | — | | | | | | — | | | | | | * | | |
| | |
Shares of
Common Stock Beneficially owned Prior to the Sale of Registered Shares(a)(b) |
| |
Shares of
Common Stock Beneficially Owned Prior to the Sale of Registered Shares Giving Effect to the Reverse Stock Split |
| |
Registered
Shares being Offered(b) |
| |
Registered
Shares Offered Giving Effect to Reverse Stock Split |
| |
Shares of Common Stock
Beneficially Owned after the Sale of Registered Shares |
| | ||||||||||||||||||||||||||
Name of Selling Stockholder
|
| |
Shares(c)
|
| |
Shares
Giving Effect to Reverse Stock Split |
| |
%
|
| |||||||||||||||||||||||||||||||||
Peter Levinson
|
| | | | 1,601,664 | | | | | | 266,944 | | | | | | 1,601,664 | | | | | | 266,944 | | | | | | — | | | | | | — | | | | | | * | | |
Brian Smoluch
|
| | | | 2,695,969 | | | | | | 499,328 | | | | | | 2,695,969 | | | | | | 499,328 | | | | | | — | | | | | | — | | | | | | * | | |
Andrew Moore
|
| | | | 5,508,962(d)(e) | | | | | | 918,160(d)(e) | | | | | | 3,978,962(d) | | | | | | 918,160(d) | | | | | | 1,530,000(e) | | | | | | 255,000(e) | | | | | | * | | |
Bryant and Carleen Riley JTWROS
|
| | | | 19,372,357(f) | | | | | | 3,228,725(f) | | | | | | 3,839,871(f) | | | | | | 639,978(f) | | | | | | 15,532,486(f) | | | | | | 2,588,747(f) | | | | | | * | | |
Joseph R. Nardini
|
| | | | 1,373,962 | | | | | | 228,993 | | | | | | 1,373,962 | | | | | | 228,993 | | | | | | — | | | | | | — | | | | | | * | | |
Harvey SMIDCAP Fund, LP
|
| | | | 9,269,023 | | | | | | 1,544,837 | | | | | | 2,178,310 | | | | | | 363,208 | | | | | | 7,090,713 | | | | | | 1,181,785 | | | | | | * | | |
Kelleher Family Trust
|
| | | | 2,479,098 | | | | | | 413,183 | | | | | | 856,600 | | | | | | 142,767 | | | | | | 1,622,498 | | | | | | 270,416 | | | | | | * | | |
TKL Global Investments
LLC |
| | | | 2,117,800 | | | | | | 352,966 | | | | | | 815,800 | | | | | | 135,966 | | | | | | 1,302,000 | | | | | | 217,000 | | | | | | * | | |
Ziyao Wang
|
| | | | 652,800 | | | | | | 108,800 | | | | | | 652,800 | | | | | | 108,800 | | | | | | — | | | | | | — | | | | | | * | | |
Lance Cannon
|
| | | | 791,891 | | | | | | 131,981 | | | | | | 791,891 | | | | | | 131,981 | | | | | | — | | | | | | — | | | | | | * | | |
Rohan Kumar
|
| | | | 884,562 | | | | | | 147,427 | | | | | | 884,562 | | | | | | 147,427 | | | | | | — | | | | | | — | | | | | | * | | |
Alan N. Forman
|
| | | | 571,200 | | | | | | 95,200 | | | | | | 571,200 | | | | | | 95,200 | | | | | | — | | | | | | — | | | | | | * | | |
Bradley Silver
|
| | | | 571,200 | | | | | | 95,200 | | | | | | 571,200 | | | | | | 95,200 | | | | | | — | | | | | | — | | | | | | * | | |
Daniel Ondeck
|
| | | | 571,200 | | | | | | 95,200 | | | | | | 571,200 | | | | | | 95,200 | | | | | | — | | | | | | — | | | | | | * | | |
Eric Rajewski
|
| | | | 710,291 | | | | | | 118,381 | | | | | | 710,291 | | | | | | 118,381 | | | | | | — | | | | | | — | | | | | | * | | |
Manuel Jesus Bueno
|
| | | | 640,746 | | | | | | 106,791 | | | | | | 640,746 | | | | | | 106,791 | | | | | | — | | | | | | — | | | | | | * | | |
Pinnacle Investment Group LLC
|
| | | | 1,266,485 | | | | | | 211,080 | | | | | | 1,266,485 | | | | | | 211,080 | | | | | | — | | | | | | — | | | | | | * | | |
Samantha Gumenick
|
| | | | 571,200 | | | | | | 95,200 | | | | | | 571,200 | | | | | | 95,200 | | | | | | — | | | | | | — | | | | | | * | | |
Terril Scott Peterson
|
| | | | 733,473 | | | | | | 122,245 | | | | | | 733,473 | | | | | | 122,245 | | | | | | — | | | | | | — | | | | | | * | | |
Michael Schlotman
|
| | | | 448,800 | | | | | | 74,800 | | | | | | 448,800 | | | | | | 74,800 | | | | | | — | | | | | | — | | | | | | * | | |
Andrew Russell
|
| | | | 523,910 | | | | | | 87,318 | | | | | | 523,910 | | | | | | 87,318 | | | | | | — | | | | | | — | | | | | | * | | |
John C. Rijo
|
| | | | 523,910 | | | | | | 87,318 | | | | | | 523,910 | | | | | | 87,318 | | | | | | — | | | | | | — | | | | | | * | | |
David J. Morton
|
| | | | 261,955 | | | | | | 43,659 | | | | | | 261,955 | | | | | | 43,659 | | | | | | — | | | | | | — | | | | | | * | | |
BGBY Investments LLC
|
| | | | 261,955 | | | | | | 43,659 | | | | | | 261,955 | | | | | | 43,659 | | | | | | — | | | | | | — | | | | | | * | | |
Dominic Riley
|
| | | | 163,200 | | | | | | 27,200 | | | | | | 163,200 | | | | | | 27,200 | | | | | | — | | | | | | — | | | | | | * | | |
1334 Partners LP
|
| | | | 579,432 | | | | | | 96,572 | | | | | | 579,432 | | | | | | 96,572 | | | | | | — | | | | | | — | | | | | | * | | |
Alexander M. McWilliams III
|
| | | | 57,955 | | | | | | 9,659 | | | | | | 57,955 | | | | | | 9,659 | | | | | | — | | | | | | — | | | | | | * | | |
Allan Weine
|
| | | | 231,762 | | | | | | 38,627 | | | | | | 231,762 | | | | | | 38,627 | | | | | | — | | | | | | — | | | | | | * | | |
Allison Wolford
|
| | | | 23,182 | | | | | | 3,863 | | | | | | 23,182 | | | | | | 3,863 | | | | | | — | | | | | | — | | | | | | * | | |
Alta Fundamental Advisers Master LP
|
| | | | 221,364 | | | | | | 36,894 | | | | | | 221,364 | | | | | | 36,894 | | | | | | — | | | | | | — | | | | | | * | | |
Andrew Aziz
|
| | | | 57,955 | | | | | | 9,659 | | | | | | 57,955 | | | | | | 9,659 | | | | | | — | | | | | | — | | | | | | * | | |
Ardsley Ridgecrest Partners Fund, L.P.
|
| | | | 231,762 | | | | | | 38,627 | | | | | | 231,762 | | | | | | 38,627 | | | | | | — | | | | | | — | | | | | | * | | |
| | |
Shares of
Common Stock Beneficially owned Prior to the Sale of Registered Shares(a)(b) |
| |
Shares of
Common Stock Beneficially Owned Prior to the Sale of Registered Shares Giving Effect to the Reverse Stock Split |
| |
Registered
Shares being Offered(b) |
| |
Registered
Shares Offered Giving Effect to Reverse Stock Split |
| |
Shares of Common Stock
Beneficially Owned after the Sale of Registered Shares |
| | ||||||||||||||||||||||||||
Name of Selling Stockholder
|
| |
Shares(c)
|
| |
Shares
Giving Effect to Reverse Stock Split |
| |
%
|
| |||||||||||||||||||||||||||||||||
Austin D. Hunt
|
| | | | 115,910 | | | | | | 19,318 | | | | | | 115,910 | | | | | | 19,318 | | | | | | — | | | | | | — | | | | | | * | | |
B. Riley Securities Inc.
|
| | | | 3,627,671 | | | | | | 604,611 | | | | | | 2,697,671 | | | | | | 496,611 | | | | | | 930,000 | | | | | | 155,000 | | | | | | * | | |
Bansbach Capital Group, LLC Louise P. Bansbach
|
| | | | 1,738,182 | | | | | | 289,697 | | | | | | 1,738,182 | | | | | | 289,697 | | | | | | — | | | | | | — | | | | | | * | | |
Bitmain Delaware Holding Company, Inc.
|
| | | | 6,952,728 | | | | | | 1,158,728 | | | | | | 6,952,728 | | | | | | 1,158,728 | | | | | | — | | | | | | — | | | | | | * | | |
Black Maple Capital Partners
LP |
| | | | 2,317,614 | | | | | | 386,269 | | | | | | 2,317,614 | | | | | | 386,269 | | | | | | — | | | | | | — | | | | | | * | | |
Blackwell Partners LLC
|
| | | | 1,484,432 | | | | | | 247,405 | | | | | | 1,484,432 | | | | | | 247,405 | | | | | | — | | | | | | — | | | | | | * | | |
Boardman Bay Master, Ltd.
|
| | | | 811,194 | | | | | | 135,199 | | | | | | 811,194 | | | | | | 135,199 | | | | | | — | | | | | | — | | | | | | * | | |
Brett Chiles
|
| | | | 46,364 | | | | | | 7,727 | | | | | | 46,364 | | | | | | 7,727 | | | | | | — | | | | | | — | | | | | | * | | |
Brian Herman
|
| | | | 231,762 | | | | | | 38,627 | | | | | | 231,762 | | | | | | 38,627 | | | | | | — | | | | | | — | | | | | | * | | |
Cavalry Fund I LP
|
| | | | 927,046 | | | | | | 154,507 | | | | | | 927,046 | | | | | | 154,507 | | | | | | — | | | | | | — | | | | | | * | | |
Cavalry Special Ops Fund, LLC
|
| | | | 231,762 | | | | | | 231,762 | | | | | | 231,762 | | | | | | 231,762 | | | | | | — | | | | | | — | | | | | | * | | |
CBH Bahamas Ltd. as Trustee of the Pardiac Trust
|
| | | | 695,285 | | | | | | 115,880 | | | | | | 695,285 | | | | | | 115,880 | | | | | | — | | | | | | — | | | | | | * | | |
Columbus Capital Partners, L.P.
|
| | | | 4,635,171 | | | | | | 772,528 | | | | | | 4,635,171 | | | | | | 772,528 | | | | | | — | | | | | | — | | | | | | * | | |
David Bum Park
|
| | | | 23,182 | | | | | | 3,863 | | | | | | 23,182 | | | | | | 3,863 | | | | | | — | | | | | | — | | | | | | * | | |
David Durkin
|
| | | | 463,523 | | | | | | 77,253 | | | | | | 463,523 | | | | | | 77,253 | | | | | | — | | | | | | — | | | | | | * | | |
David G. Swank
|
| | | | 927,046 | | | | | | 154,507 | | | | | | 927,046 | | | | | | 154,507 | | | | | | — | | | | | | — | | | | | | * | | |
Dawn M. Farrell
|
| | | | 23,182 | | | | | | 3,863 | | | | | | 23,182 | | | | | | 3,863 | | | | | | — | | | | | | — | | | | | | * | | |
Drew Rossi
|
| | | | 11,591 | | | | | | 1,931 | | | | | | 11,591 | | | | | | 1,931 | | | | | | — | | | | | | — | | | | | | * | | |
EJS Investment Holdings
LLC |
| | | | 695,285 | | | | | | 115,880 | | | | | | 695,285 | | | | | | 115,880 | | | | | | — | | | | | | — | | | | | | * | | |
F2Pool Mining Inc.
|
| | | | 11,587,841 | | | | | | 1,931,306 | | | | | | 11,587,841 | | | | | | 1,931,306 | | | | | | — | | | | | | — | | | | | | * | | |
Frederick Baily Dent III
|
| | | | 463,523 | | | | | | 77,253 | | | | | | 463,523 | | | | | | 77,253 | | | | | | — | | | | | | — | | | | | | * | | |
James M. Clamage
|
| | | | 57,955 | | | | | | 9,659 | | | | | | 57,955 | | | | | | 9,659 | | | | | | — | | | | | | — | | | | | | * | | |
Jason Alabaster
|
| | | | 18,580 | | | | | | 3,096 | | | | | | 18,580 | | | | | | 3,096 | | | | | | — | | | | | | — | | | | | | * | | |
John B. Berding
|
| | | | 927,046 | | | | | | 154,507 | | | | | | 927,046 | | | | | | 154,507 | | | | | | — | | | | | | — | | | | | | * | | |
Jon D. and Linda W. Gruber
Trust |
| | | | 2,317,614 | | | | | | 386,269 | | | | | | 2,317,614 | | | | | | 386,269 | | | | | | — | | | | | | — | | | | | | * | | |
Jonathan Talcott
|
| | | | 57,955 | | | | | | 9,659 | | | | | | 57,955 | | | | | | 9,659 | | | | | | — | | | | | | — | | | | | | * | | |
Joseph Robert Nardini Jr.
|
| | | | 27,841 | | | | | | 4,640 | | | | | | 27,841 | | | | | | 4,640 | | | | | | — | | | | | | — | | | | | | * | | |
Knut Grevle
|
| | | | 57,955 | | | | | | 9,659 | | | | | | 57,955 | | | | | | 9,659 | | | | | | — | | | | | | — | | | | | | * | | |
Mark C. Koontz
|
| | | | 231,762 | | | | | | 38,627 | | | | | | 231,762 | | | | | | 38,627 | | | | | | — | | | | | | — | | | | | | * | | |
Martin Friedman
|
| | | | 115,910 | | | | | | 19,318 | | | | | | 115,910 | | | | | | 19,318 | | | | | | — | | | | | | — | | | | | | * | | |
MC Opportunities Fund LP
|
| | | | 811,194 | | | | | | 135,199 | | | | | | 811,194 | | | | | | 135,199 | | | | | | — | | | | | | — | | | | | | * | | |
| | |
Shares of
Common Stock Beneficially owned Prior to the Sale of Registered Shares(a)(b) |
| |
Shares of
Common Stock Beneficially Owned Prior to the Sale of Registered Shares Giving Effect to the Reverse Stock Split |
| |
Registered
Shares being Offered(b) |
| |
Registered
Shares Offered Giving Effect to Reverse Stock Split |
| |
Shares of Common Stock
Beneficially Owned after the Sale of Registered Shares |
| | ||||||||||||||||||||||||||
Name of Selling Stockholder
|
| |
Shares(c)
|
| |
Shares
Giving Effect to Reverse Stock Split |
| |
%
|
| |||||||||||||||||||||||||||||||||
Michael Cavanaugh
|
| | | | 173,864 | | | | | | 28,977 | | | | | | 173,864 | | | | | | 28,977 | | | | | | — | | | | | | — | | | | | | * | | |
Millbrook Consulting Group
LLC |
| | | | 115,910 | | | | | | 19,318 | | | | | | 115,910 | | | | | | 19,318 | | | | | | — | | | | | | — | | | | | | * | | |
Ohsang Kwon
|
| | | | 2,317,614 | | | | | | 386,269 | | | | | | 2,317,614 | | | | | | 386,269 | | | | | | — | | | | | | — | | | | | | * | | |
Pacific Capital Management
LLC |
| | | | 579,432 | | | | | | 96,572 | | | | | | 579,432 | | | | | | 96,572 | | | | | | — | | | | | | — | | | | | | * | | |
Patrick Hanniford
|
| | | | 57,955 | | | | | | 9,659 | | | | | | 57,955 | | | | | | 9,659 | | | | | | — | | | | | | — | | | | | | * | | |
Paul Choi
|
| | | | 28,978 | | | | | | 4,829 | | | | | | 28,978 | | | | | | 4,829 | | | | | | — | | | | | | — | | | | | | * | | |
Precept Special Situation Fund, LP
|
| | | | 2,317,614 | | | | | | 386,269 | | | | | | 2,317,614 | | | | | | 386,269 | | | | | | — | | | | | | — | | | | | | * | | |
Puritan Partners LLC
|
| | | | 1,158,807 | | | | | | 193,134 | | | | | | 1,158,807 | | | | | | 193,134 | | | | | | — | | | | | | — | | | | | | * | | |
Richard Marks
|
| | | | 579,432 | | | | | | 96,572 | | | | | | 579,432 | | | | | | 96,572 | | | | | | — | | | | | | — | | | | | | * | | |
Ryan Aceto
|
| | | | 17,387 | | | | | | 2,897 | | | | | | 17,387 | | | | | | 2,897 | | | | | | — | | | | | | — | | | | | | * | | |
Spencer Gottshall
|
| | | | 11,591 | | | | | | 1,931 | | | | | | 11,591 | | | | | | 1,931 | | | | | | — | | | | | | — | | | | | | * | | |
Spencer Hemplemen
|
| | | | 231,762 | | | | | | 38,627 | | | | | | 231,762 | | | | | | 38,627 | | | | | | — | | | | | | — | | | | | | * | | |
Veriton Multi-Strategy Master Fund Ltd
|
| | | | 3,476,364 | | | | | | 579,394 | | | | | | 3,476,364 | | | | | | 579,394 | | | | | | — | | | | | | — | | | | | | * | | |
James W. Aston
|
| | | | 231,762 | | | | | | 38,627 | | | | | | 231,762 | | | | | | 38,627 | | | | | | — | | | | | | — | | | | | | * | | |
MACABA Holdings, LLC
|
| | | | 305,966 | | | | | | 50,994 | | | | | | 305,966 | | | | | | 50,994 | | | | | | — | | | | | | — | | | | | | * | | |
Pangea Capital, LLC
|
| | | | 305,966 | | | | | | 50,994 | | | | | | 305,966 | | | | | | 50,994 | | | | | | — | | | | | | — | | | | | | * | | |
Marshall Webb Mulligan
|
| | | | 234,546 | | | | | | 39,091 | | | | | | 234,546 | | | | | | 39,091 | | | | | | — | | | | | | — | | | | | | * | | |
| | |
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 | | | | | $ | 0.15 | | | | | $ | 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 | | |
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
|
| | | | 3,121 | | | | | | 9 | | |
Additional paid in capital
|
| | | | 40,856 | | | | | | 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% | | |
|
SEC Registration Fee
|
| | | $ | 34,582.02 | | |
|
Printing Fees and Expenses
|
| | | $ | 60,000 | | |
|
Accounting Fees and Expenses
|
| | | $ | 30,000 | | |
|
Legal Fees and Expenses
|
| | | $ | 250,000 | | |
|
Transfer Agent and Registrar Fees
|
| | | $ | 14,700 | | |
|
Miscellaneous Fees and Expenses
|
| | | $ | 5,000 | | |
|
Total
|
| | | $ | 394,282.02 | | |
Exhibit
No. |
| |
Description
|
|
10.1* | | | | |
10.2* | | | | |
10.3* | | | | |
10.4* | | | | |
10.5#** | | | | |
10.6#** | | | | |
10.7* | | | Sublease Agreement, dated as of May 19, 2021, by and between the Company and Encap Investments L.P. | |
10.8#** | | | | |
10.9#** | | | | |
10.10#** | | | | |
10.11** | | | | |
10.12†** | | | | |
10.13†** | | | | |
10.14******# | | | | |
10.15******† | | | | |
10.16******† | | | | |
10.17******† | | | | |
10.18******† | | | | |
10.19******† | | | | |
21****** | | | | |
23.1* | | | | |
23.2** | | | | |
23.3*** | | | | |
23.4***** | | | | |
23.5****** | | | | |
23.6******* | | | | |
23.7 | | | | |
23.8****** | | | | |
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) |
| |
February 28, 2022
|
|
|
*
Chuck Hastings
|
| | Director | | |
February 28, 2022
|
|
|
*
Kelli McDonald
|
| | Director | | |
February 28, 2022
|
|
|
*
Doug Miller
|
| | Director | | |
February 28, 2022
|
|
|
*
Virginia Moore
|
| | Director | | |
February 28, 2022
|
|
|
*
Richard Nottenburg
|
| | Director | | |
February 28, 2022
|
|
|
*
Jason Zhang
|
| | Director | | |
February 28, 2022
|
|