Home / Going-concern warnings / Applied Digital Corp.
Filed 2025-04-14 · Form 10-Q · Accession 0001628280-25-017684 small
Price before filing: $5.29 (2025-04-11 close, split/dividend-adjusted)
Market cap at flag: $1.08B (2025-04-14) · Latest: $5.26B (2026-10-16)
| Window | APLD | SPY | vs SPY | |
|---|---|---|---|---|
| 30 days | +13.0% | +10.0% | +3.0% | 2025-05-14 |
| 90 days | +80.0% | +17.4% | +62.6% | 2025-07-14 |
| 180 days | +547.3% | +24.9% | +522.4% | 2025-10-13 |
Return from the last close before the filing date to the first close on/after the window end. Pending windows have not fully elapsed. Past performance says nothing certain about the future.
90 days before the flag: 1 insider sold $177K (1 sale)
30 days after: none reported.
| Date | Insider | Type | Shares | Price | Value | 10b5-1 plan | Source |
|---|---|---|---|---|---|---|---|
| 2025-01-17 | Nottenburg Richard N Director | Sale | 20,000 | $8.85 | $177K | no | Form 4 |
| 2025-04-14: red flag filed | |||||||
Open-market purchases and sales (Form 4 codes P and S) by officers, directors and 10% owners, by transaction date, from 2025-01-14 to 2025-05-14. Excludes option exercises, grants, gifts and tax withholding. Amended filings replace the originals; joint filings count once. Foreign private issuers do not file Form 4. Many insider sales are pre-scheduled (10b5-1 plans) and are not by themselves a sign of wrongdoing.
"Cash, cash equivalents, and restricted cash within the unaudited condensed consolidated balance sheets that are included in the unaudited condensed consolidated statements of cash flows as of February 28, 2025 and May 31, 2024 were as follows (in thousands): February 28, 2025 May 31, 2024 Cash and cash equivalents $ 68,743 $ 3,339 Restricted cash - funds for construction 154,139 — Restricted cash - letters of credit..."
Quoted from the filing. Source
The filing states that substantial doubt exists about the company's ability to continue as a going concern: it may not have enough cash to last the next 12 months. Expect dilution, debt deals or worse. An auditor's going-concern paragraph is the strongest form of this warning.
Source: management disclosure in Form 10-Q (period 2025-02-28)
Why this score: quarterly (unaudited) disclosure; also within 90 days: Auditor change
Read the original filing on SEC.gov →
Not investment advice. Automated summary; verify against the filing.
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