REVENUE FROM CONTRACTS WITH CUSTOMERS

9 Months Ended

Feb. 28, 2022

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company recognizes revenue when promised services are transferred to customers in an amount that reflects the consideration to which the Company expects to be received in exchange for those services. The Company notes all revenue recognized from continuing operations during the quarter was received through hosting revenue. All revenue recognized from cryptoasset mining revenue is included within discontinued operations.

Hosting revenue

The Company provides energized space to customers who locate their hardware within the Company’s co-hosting facility. All performance obligations are achieved simultaneously by providing the hosting environment for the customers’ operations. Hosting revenue is recorded monthly in fixed amounts based on the terms of the hosting agreements. Customer contracts include advance payment terms. Advanced payments are recorded as deferred revenue until the related service is provided.

The Company has a material customer concentration in the hosting business. The Company has entered into contracts with JointHash Holding Limited (a subsidiary of GMR), Bitmain Technologies Limited, F2Pool Mining, Inc. and Hashing LLC to utilize the first co-hosting facility which was brought online in February 2022.

Below is a summary of the Company’s revenue concentration by major customer for the three months ended February 28, 2022 and 2021.

Customer	Three Months Ended February 28, 2022		Three Months Ended February 28, 2021
Customer A	62	%	—	%
Customer B	16	%	—	%
Customer C	13	%	—	%

Below is a summary of the Company’s revenue concentration by major customer for the nine months ended February 28, 2022 and 2021.

Customer	Nine Months Ended February 28, 2022		Nine Months Ended February 28, 2021
Customer A	62	%	—	%
Customer B	16	%	—	%
Customer C	13	%	—	%

Additionally, the below table illustrates the Company’s accounts receivable concentration as of February 28, 2022 and May 31, 2021.

Customer	February 28, 2022		May 31, 2021
Customer A	62	%	—	%
Customer B	16	%	—	%
Customer C	13	%	—	%

Remaining Performance Obligations

As of February 28, 2022, the Company had $3.9 million in deferred revenue, which represents the Company’s remaining performance obligations. The Company expects to recognize all of this revenue within the next 12 months.