---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-26-021333"
form_type: "8-K"
ticker: "APLD"
cik: "0001144879"
company_name: "Applied Digital Corp."
filed_at: "2026-05-05T23:59:59+00:00"
generated_at: "2026-05-14T23:13:31.085040+00:00"
event_type: "m_and_a"
sentiment: "positive"
materiality_score: 0.8
calibrated_materiality_score: 0.8
confidence: "high"
source: SEC EDGAR
---

# Applied Digital completes cloud business spinoff, retains ~97% of ChronoScale (CHRN)

## Summary
- Contributed cloud business to Ekso Bionics; combined entity renamed ChronoScale Corp., trading on Nasdaq as CHRN as of May 5, 2026.
- Applied Digital received ~138M shares of ChronoScale, representing ~97% ownership, plus invested $15.75M in a private placement at $12.01/share.
- Applied Digital entered a Management Advisory and Corporate Services Agreement with ChronoScale, receiving 1% of gross revenue quarterly plus service fees.
- Investor Rights Agreement gives Applied Digital the right to designate 4 of 7 directors and approval rights over major actions while holding ≥30% of voting securities.
- ChronoScale must file a resale registration statement within 60 days and use commercially reasonable efforts to have it declared effective within 30-60 days.

## SEC filing metadata
- accession: 0001493152-26-021333
- form_type: 8-K
- ticker: APLD
- cik: 0001144879
- company_name: Applied Digital Corp.
- filed_at: 2026-05-05T23:59:59+00:00
- event_type: m_and_a
- sentiment: positive
- materiality_score: 0.8
- calibrated_materiality_score: 0.8
- confidence: high
- sec_items: 1.01, 2.01, 7.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1144879/000149315226021333/0001493152-26-021333-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1144879/000149315226021333/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-26-021333
- JSON: https://secwatch.observer/filing/0001493152-26-021333.json
- Plain text: https://secwatch.observer/filing/0001493152-26-021333.txt

## Source-grounded claims
- claim_id: 87845ea20909b4762c4024cb6257726ac06d6233
  claim: Applied Digital Corp. completed a disposition involving Ekso Bionics Holdings, Inc. (closed 2026-05-05).
  evidence_excerpt: On May 5, 2026 (the “Closing Date”), Applied Digital Corporation, a Nevada corporation (the “Company”), completed the previously announced divestiture of its cloud business pursuant to that certain Contribution and Exchange Agreement
  evidence_url: https://www.sec.gov/Archives/edgar/data/1144879/000149315226021333/0001493152-26-021333-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.