ChronoScale Holdings Corporation

What they do

Through subsidiary ChronoScale Corporation (formerly Applied Digital Cloud Corporation), the company provides cloud services at third-party colocation centers in Colorado, Minnesota and Utah, charging customers a fixed rate for energized space supported by company-provided equipment. The legacy human-exoskeleton business, Ekso Bionics, Inc., was classified as held for sale on May 29, 2026 and reported in discontinued operations. The company became the public parent via a July 1, 2026 holding company formation transaction and now operates only the Cloud Business.

Revenue drivers

• Cloud Business — The only continuing segment: fixed-rate contracts for energized colocation space serving AI and machine learning developers; the reported $0.4 million of fiscal 2026 Legacy Ekso revenue sits in discontinued operations.
• Legacy Ekso Business (held for sale) — Exoskeleton products augmenting human strength, endurance and mobility; recognized $0.4 million of revenue in discontinued operations during fiscal year ended May 31, 2026 and is expected to be divested in fiscal 2027.

Recent performance

Reported annual revenue moved from $18.3 million in 2023 and $17.9 million in 2024 to $84.4 million in 2025, with the fiscal 2026 figure shown as $71.6 million. Net income was negative in each period: $-11.3 million in 2024, $-11.7 million in 2025 and $-50.3 million in 2026. Operating cash flow was $-12.1 million in 2023, $-9.8 million in 2024, $-7.2 million in 2025 and $39.1 million in 2026. Recent quarterly revenue was $2.1 million (2025-06-30), $4.2 million (2025-09-30), $3.1 million (2025-12-31) and $2.1 million (2026-03-31). As of May 31, 2026, total assets were $325.9 million, total liabilities $143.8 million, shareholder equity $180.0 million, cash $9.7 million and long-term debt $474,000.

Strategy

Management committed on May 29, 2026, and announced June 4, 2026, to divest the Legacy Ekso Business and focus solely on the Cloud Business, expecting the divestiture to close during fiscal 2027. The May 5, 2026 business combination combined the Cloud business with Ekso, and the July 1, 2026 holding company transaction created ChronoScale Holdings as the public parent with operating subsidiaries beneath it. Management states the holding company structure better reflects the operating businesses and allows for future growth. The company acknowledges in its risk factors that it expects to need external funds and that such raises will dilute stockholders.

Risks

• Customer concentration — The company states the Cloud Business has had, and expects to continue to have, significant customer concentration.
• History of net losses — Net income was negative in each reported period, including $-50.3 million in the fiscal 2026 figure.
• External capital need — Management says it expects to need to raise external funds to support the business plan, with resulting dilution to stockholders.
• Controlled company status — The company qualifies for and relies on exemptions from certain Nasdaq corporate governance requirements as a controlled company.

Outlook

Management expects to complete the Legacy Ekso divestiture during fiscal year 2027 and to operate solely the Cloud Business thereafter. It also states that commencing November 30, 2026, the company will no longer qualify as a smaller reporting company, bringing additional public-company laws and regulations that will increase costs and management demands. The filings state that historical results are not indicative of future periods.