Core Viewpoint - Digi Power X Inc. has clarified the structure and operations of its subsidiary, US Data Centers, Inc. (USDC), emphasizing that USDC is focused solely on manufacturing and distributing the ARMS modular AI data center system, while all revenues and assets related to Digi Power X's data center sites remain exclusively with Digi Power X [2][4][14]. Group 1: Company Structure and Operations - USDC is an independent subsidiary that does not own or operate any data center sites, and all revenue generated from Digi Power X-owned properties belongs entirely to Digi Power X [2][4]. - Digi Power X holds a 55% majority equity stake in USDC, while the co-founding management team retains approximately 35% in founder equity [3][4]. - The formation of USDC was a strategic decision to create a dedicated platform for AI infrastructure, allowing Digi Power X to focus on its core business of developing and operating data centers [6][9]. Group 2: Revenue and Financial Implications - All revenues from the deployment of ARMS systems at Digi Power X sites are exclusively owned by Digi Power X, with USDC having no claim on these revenues [4][14]. - Digi Power X has a strong financial position, reporting $80 million in cash and cash equivalents, with zero debt outstanding [15][16]. - The company has incurred $15 million in capital expenditures year to date, fully funded from existing cash, emphasizing its focus on minimizing shareholder dilution [16]. Group 3: Strategic Advantages of USDC - Establishing USDC as a standalone entity allows for dedicated capitalization without diluting Digi Power X's equity, enabling USDC to raise institutional capital independently [9][10]. - USDC's separate legal identity supports enterprise and government contracting requirements, enhancing its ability to secure procurement relationships [11]. - The independent structure of USDC preserves optionality for future liquidity events, such as an IPO, which could benefit Digi Power X shareholders [12][14].