Applied Digital To Spin Out Cloud Business, Proposes Business Combination With EKSO To Launch ChronoScale; Upon Closing, Applied Digital Would Own About 97% Of Combined Company, Which Will Operate Under Name ChronoScale; Plans To Continue To Explore Strategic Transactions For Possible Sale Of All Or Substantially All Of Ekso's Current Business; Proposed Transaction Is Expected To Close In First Half Of 2026

Applied Digital (NASDAQ:APLD), a designer, builder, and operator of high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking and blockchain workloads, and EKSO Bionics Holdings, Inc. (NASDAQ:EKSO) ("EKSO") announced today that Applied Digital and EKSO entered into a non-binding term sheet for a proposed business combination of Applied Digital's cloud computing business, Applied Digital Cloud, with EKSO, which, once closed, will go forward as ChronoScale Corporation, an accelerated compute platform purpose-built to support artificial intelligence ("AI") workloads (the "Proposed Transaction"). As enterprise and AI-native demand for GPU-accelerated cloud infrastructure continues to grow rapidly, the Proposed Transaction is intended to create a focused platform designed to deliver high-performance compute at scale in a capacity-constrained market.

By separating the accelerated compute platform from Applied Digital's data center ownership and development business, the Proposed Transaction will allow each business to scale independently, pursue distinct growth trajectories, and operate with greater strategic and capital flexibility. ChronoScale is being designed for customers who require predictable performance, infrastructure control, and rapid deployment without the tradeoffs of generic cloud environments. The ChronoScale platform is expected to leverage the mature Applied Digital Cloud business to rapidly deploy and scale next-generation GPU-based compute infrastructure optimized for advanced AI training and inference workloads requiring dense, reliable, and efficiently delivered accelerated compute.

Upon closing of the Proposed Transaction, Applied Digital would own approximately 97% of the combined company, which will operate under the name ChronoScale. The Applied Digital Cloud and EKSO businesses would continue to operate upon consummation of the Proposed Transaction, and EKSO plans to continue to explore strategic transactions for the possible sale of all or substantially all of EKSO's current business.

"This Proposed Transaction emanates from our previously announced initiative to evaluate and explore strategic alternatives," commented Scott Davis, EKSO's Chief Executive Officer. "We approached our review thoughtfully and with an aim to maximize shareholder value, and we believe the Proposed Transaction has the potential to achieve that goal and that the Proposed Transaction is in the best interest of EKSO's stakeholders."

"ChronoScale is intended to bring together a proven operating platform and a clear mandate: deliver accelerated compute at scale for the most demanding AI workloads," said Wes Cummins, Chairman and Chief Executive Officer of Applied Digital. "As AI workloads continue to reshape the digital economy and intensify, infrastructure must be purpose-built, not generalized — and ChronoScale's design is intended to meet these requirements."

Applied Digital Cloud was among the first platforms to deploy NVIDIA's H100 GPUs at scale in 2023, demonstrating its ability to source, integrate, and operate next-generation GPU infrastructure ahead of broader market adoption. The business generated a twelve-month revenue of approximately $75.2 million as of August 31, 2025, reflecting strong, growing demand from enterprise and AI-native customers for dedicated accelerated compute delivered through cloud-based platforms.

ChronoScale is also expected to benefit from the strategic alignment with Applied Digital's expanding portfolio of purpose-built AI factory campuses, providing advantaged access to infrastructure that accelerates deployment timelines and aims to reduce execution risks as GPU demand continues to scale.

The Proposed Transaction is expected to close in the first half of 2026, subject to the completion of customary due diligence, execution of final binding documents, customary regulatory and shareholder approvals, and satisfaction of closing conditions.