Letter of credit through January 2024
Company: Applied Digital
What the later record shows
Outcome not yet confirmed
No passage mentions the letter of credit or the $7.5 million restricted cash requirement.
Checked October 9, 2026 against filings, releases and reporting published after the claim was made. Quotes are verbatim from the linked documents.
The claim, verbatim
Company maintains letter of credit requiring $7.5 million in restricted cash through January 2024
Source (primary)
Applied Digital 10-Q filed 2022-10-12 (SEC EDGAR, sec_filing)
View cached copy (2026-09-13)Live source ↗
Quote: “The company is required to keep this balance in a separate account for the duration of the letter of credit agreement, which lasts through January 2024.”
How we checked this
Checked on October 11, 2026. The cited source supports every part of this claim.
The 10-Q for the quarter ended August 31, 2022 says the company has $7.5 million in restricted cash tied to its letter of credit. It also says that cash must stay in a separate account until the agreement ends in January 2024.
Confirmed in the source:
- The company has a letter of credit totaling $7.5 million
- The company holds $7.5 million in restricted cash related to the letter of credit
- The company must keep this cash in a separate account for the duration of the letter of credit agreement
- The letter of credit agreement lasts through January 2024
What we did: Read our cached copy of SEC EDGAR (https://www.sec.gov/Archives/edgar/data/1144879/000114487922000052/apld-20220831.htm) in full (86,521 characters, retrieved September 13, 2026) and checked each assertion in the claim against it.
Additional evidence
confirms Applied Digital 10-Q filed 2022-10-12
Quote: “The company is required to keep this balance in a separate account for the duration of the letter of credit agreement, which lasts through January 2024.”