{"schema_version":"secwatch.filing_event.v1","accession":"0001144879-24-000097","form_type":"8-K","ticker":"APLD","cik":"0001144879","company_name":"Applied Digital Corp.","filed_at":"2024-04-30T23:59:59+00:00","discovered_at":"2026-05-14T18:03:17.459594+00:00","generated_at":"2026-06-03T04:04:28.499135+00:00","sec_items":["1.01","2.03","3.02","9.01"],"event_type":"debt","sentiment":"neutral","materiality_score":0.55,"calibrated_materiality_score":0.55,"confidence":"high","headline":"Applied Digital draws second $10M convertible note, completing $50M PPA with YA II PN","bullets":["Issued $10M convertible unsecured promissory note at 5% OID for $9.5M cash on April 24, 2024.","Note matures April 8, 2025, bears 0% interest (18% on default), convertible at a variable conversion price.","Completes the $50M Prepaid Advance Agreement; first $40M note was issued March 27, 2024.","Note proceeds include monthly amortization trigger if certain events occur (e.g., registration failure)."],"urls":{"canonical":"https://secwatch.observer/filing/0001144879-24-000097","json":"https://secwatch.observer/filing/0001144879-24-000097.json","markdown":"https://secwatch.observer/filing/0001144879-24-000097.md","text":"https://secwatch.observer/filing/0001144879-24-000097.txt","edgar_index":"https://www.sec.gov/Archives/edgar/data/1144879/000114487924000097/0001144879-24-000097-index.htm","edgar_primary_document":"https://www.sec.gov/Archives/edgar/data/1144879/000114487924000097/apld-20240424.htm"},"model":{"generated_by":"deepseek-v4-flash:cloud@v2","generated_at":"2026-06-03T04:04:28.499135+00:00"},"review":{"review_status":"machine_generated","human_reviewed":false,"corrected":false,"correction_note":null,"correction_timestamp":null,"superseded_by":null,"related_filings":[]},"source_grounded_claims":[{"claim_id":"9fe988d1130a1ee71a6a87876c0f198c216560fa","claim":"Applied Digital Corp. incurred convertible notes of $10 million with YA II PN, LTD..","evidence_excerpt":"issue discount and a deduction of a $25,000 due diligence fee (the “First Promissory Note”). Under the PPA, the issuance of the second Promissory Note in the principal amount of $10 million in consideration of a cash payment by the Investor of $9.5 million, representing a five percent original issue discount (the “Second Promissory Note”) was subject to the","evidence_source":"SEC 8-K Item 2.03/2.04","evidence_url":"https://www.sec.gov/Archives/edgar/data/1144879/000114487924000097/0001144879-24-000097-index.htm","confidence":0.9,"family_label":"Debt Financings","details":[{"label":"Instrument","value":"convertible notes"},{"label":"Principal","value":"$10 million"},{"label":"Counterparty","value":"YA II PN, LTD."},{"label":"Event","value":"incurrence"}],"fact_type":"debt_financing"},{"claim_id":"56b956c30e73b0ed80f108728dedfb6da860ff49","claim":"Applied Digital Corp. entered into Second Promissory Note with YA II PN, LTD. valued at $10,000,000 (effective 2024-04-24).","evidence_excerpt":"d in a Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2024, Applied Digital Corporation, a Nevada corporation (the “Company”) entered into a Prepaid Advance Agreement (the “PPA”) dated March 27, 2024, with YA II PN, LTD., a Cayman Islands exempt limited partnership (the “Investor”). In accordance with the terms of the PPA, the Investor agreed to advance up to $50 million to the Company pursuant to two convertible unsecured promissory notes (the “Promissory Notes”), which are convertible into shares of the Company’s Common Stock, par value $0.001, per share (the “Common Shares”).","evidence_source":"SEC 8-K Item 1.01/1.02","evidence_url":"https://www.sec.gov/Archives/edgar/data/1144879/000114487924000097/0001144879-24-000097-index.htm","confidence":0.95,"family_label":"Material Agreements","details":[{"label":"Action","value":"entry"},{"label":"Agreement","value":"notes offering"},{"label":"Counterparty","value":"YA II PN, LTD."},{"label":"Value","value":"$10,000,000"},{"label":"Effective","value":"2024-04-24"}],"fact_type":"material_agreement"},{"claim_id":"773da4a5a7a34da9c927132e52ff05ffcf9ef395","claim":"Applied Digital Corp. entered into Prepaid Advance Agreement with YA II PN, LTD. valued at $50,000,000 (effective 2024-03-27).","evidence_excerpt":"As previously reported in a Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2024, Applied Digital Corporation, a Nevada corporation (the “Company”) entered into a Prepaid Advance Agreement (the “PPA”) dated March 27, 2024, with YA II PN, LTD., a Cayman Islands exempt limited partnership (the “Investor”).","evidence_source":"SEC 8-K Item 1.01/1.02","evidence_url":"https://www.sec.gov/Archives/edgar/data/1144879/000114487924000097/0001144879-24-000097-index.htm","confidence":0.9,"family_label":"Material Agreements","details":[{"label":"Action","value":"entry"},{"label":"Agreement","value":"credit facility"},{"label":"Counterparty","value":"YA II PN, LTD."},{"label":"Value","value":"$50,000,000"},{"label":"Effective","value":"2024-03-27"}],"fact_type":"material_agreement"}],"license":"Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer"}