Applied Digital Corporation (NASDAQ:APLD) Q4 2023 Earnings Call Transcript

Wes Cummins: The financing typically comes in as we take delivery.

Lucas Pipes: Got it. And delivery would be when in that sequence?

Wes Cummins: Again, it wouldn’t be set up. So if you take delivery at either our facility or another colo facility, financing kicks in for that – for the payment on the financing, and then it will take us one or two weeks to typically set these up and get them turned on and then you get prepayment. So your financing happens before the prepayment and typically before we pay the – well, in the future, we’ll pay the vendor.

Lucas Pipes: Okay. That’s very helpful. And maybe just to follow-up on that for the order of the 26,000, is there a way to break that down between what is fully paid for versus where there still that sequence playing out as you just outlined.

Wes Cummins: So the way that is we have 1,000 that we’ve turned on and then we’ll take delivery of another significant number in late August in the neighborhood of 4,000 to 5,000, and we just keep taking delivery all the way through April.

Lucas Pipes: Got it.

Wes Cummins: So if you look in our financials, like reflected at the end of the quarter was – we had made – I believe we had made payment. David, you have to correct me if I’m wrong, but you won’t see any of the – I don’t think you’ll see any of the assets show up on the balance sheet as of the end of the fiscal year.

David Rench: That’s correct.

Lucas Pipes: Wes and David, really appreciate —

Wes Cummins: June event, yes.

Lucas Pipes: So I guess we’d see that in new fiscal first quarter for the August quarter.

Wes Cummins: Yes, for the August quarter.

Lucas Pipes: All right. Thank you very much, gentlemen.

Operator: [Operator Instructions] We’re showing no questions in queue at this time. I’d like to turn the floor back over to Mr. Cummins for closing comments.

Wes Cummins: Thanks, everyone, for joining us for the call. And again, thanks to all of our employees, everyone has been working extremely hard to make it happen, and we’ll speak with you in October. Thanks.

Operator: Ladies and gentlemen, thank you for your participation. This concludes today’s event. You may disconnect your lines or log off the webcast at this time, and enjoy the rest of your day.