CORZZ — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-07-28

• The following Management's Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to promote understanding of the results of operations and financial condition of the Company. This MD&A is provided as a supplement to, and should be read in conjunction with, our…

• As discussed in the section titled “Cautionary Note Regarding Forward-Looking Statements,” the following discussion and analysis contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our result…

• Core Scientific, Inc. is a leader in designing, building and operating large-scale purpose-built data centers for HDC services. We develop and operate facilities serving AI and HPC related workloads and are a provider of digital infrastructure to our third-party customers. The majority of our revenu…

• Our strategic objective is to maximize the value of our large-scale data center infrastructure portfolio by converting power capacity across our facilities into long-term contracted HDC revenue streams. We believe this strategy enhances the predictability of future cash flows, reduces the relative c…

• In 2024, we announced our first HDC contract with CoreWeave, a provider of HPC services, which was subsequently expanded to approximately 590 MW of leased customer power capacity across five sites. As of June 30, 2026, approximately 395 MW has commenced billing. During the six months ended June 30, …

Text removed vs the prior filing · source: 10-Q · 2026-05-06

• or “Core” refer to Core Scientific, Inc. and its subsidiaries.

• The following Management's Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is

• intended to promote understanding of the results of operations and financial condition of the Company. This MD&A is provided as a

• supplement to, and should be read in conjunction with, our unaudited condensed consolidated financial statements and the

• accompanying notes to unaudited condensed financial statements (Part I, Item 1 of this Form 10-Q) as well as the financial and other

Text added vs the prior filing · source: 10-Q · 2026-07-28

• We are exposed to market risks in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily the result of fluctuations in the price of bitcoin …

• As of June 30, 2026, we held 848 bitcoin, with a carrying value of $50 million, all of which were produced from our bitcoin mining operations.

• We cannot predict the future market price of bitcoin and, as such, we cannot predict future changes in the carrying value of our bitcoin assets based on future market prices. The future value of bitcoin will affect the amount of revenue recognized from our operations, and any changes in the future v…

• As of June 30, 2026, we had no variable-rate debt outstanding. The Term Loan Facility, which bore interest at Term SOFR plus 2.50% per annum, was repaid in full and terminated on May 6, 2026, using proceeds from the Senior Secured Notes offering. Our primary debt obligations as of June 30, 2026 cons…

• Certain operating costs incurred by us are subject to price fluctuations caused by the volatility of underlying commodity prices, the most significant of which is electricity. We closely monitor the cost of electricity at all of our locations. Our colocation customer agreements include power pass-th…

Text removed vs the prior filing · source: 10-Q · 2026-05-06

• We are exposed to market risks in the ordinary course of our business. Market risk represents the risk of loss that may impact

• our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily the result of

• As of March 31, 2026, we held 547 bitcoin, with a carrying value of $37.3 million, all of which were produced from our bitcoin

• We cannot predict the future market price of bitcoin and, as such, we cannot predict future changes in the carrying value of our

• bitcoin assets based on future market prices. The future value of bitcoin will affect the amount of revenue recognized from our

Text added vs the prior filing · source: 10-Q · 2026-07-28

• Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, have conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of Ju…

• Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that, as of June 30, 2026, our disclosure controls and procedures were not effective due to the material weakness in internal control over financial reporting described below.

• As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, we identified a material weakness in our internal control over financial reporting. As of June 30, 2026, this material weakness has not been remediated.

• Our disclosure controls and procedures and internal control over financial reporting are designed to provide reasonable assurance of achieving the desired control objectives. Our management recognizes that any control system, no matter how well designed and operated, is based upon certain judgments …

• A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. The material…

Text removed vs the prior filing · source: 10-Q · 2026-05-06

• Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, have conducted an

• evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e)

• Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that, as of March 31,

• 2026, our disclosure controls and procedures were not effective due to the material weakness in internal control over financial

• As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, we identified a material

Text added vs the prior filing · source: 10-Q · 2026-07-28

• We are involved in lawsuits, claims and other legal matters that arise in the ordinary course of business. The outcome of these matters cannot be predicted with certainty, and the resolution of one or more of these matters could materially adversely affect our business, financial position, results o…

Text removed vs the prior filing · source: 10-Q · 2026-05-06

• We are involved in lawsuits, claims and other legal matters that arise in the ordinary course of business. The outcome of these

• matters cannot be predicted with certainty; however, we believe that the ultimate resolution of these matters will not have a material

• adverse effect on our consolidated financial position, results of operations or cash flows. To the extent that the ultimate resolution of

• any matter differs from our current estimates reflected in the recorded reserves, we could incur additional charges that could be

• significant. Information regarding our material pending legal proceedings is included in Note 9 — Commitments and Contingencies,

Text added vs the prior filing · source: 10-Q · 2026-07-28

• There were no material changes during the period covered in this Quarterly Report to the risk factors previously disclosed in the Annual Report, except for the risk factors noted below.

• We may be unable to attract new high-density colocation customers, which could constrain our growth and leave our revenue dependent on a single counterparty.

• Our HPC colocation revenue is currently derived from a single customer, and our strategy depends on our ability to secure additional customers beyond our existing contract. We compete for new customers with major data center REITs, hyperscalers, and purpose-built data center developers, many of whom…

• Our indebtedness and liabilities could limit the cash flow available for our operations, expose us to risks that could adversely affect our business, financial condition and results of operations and impair our ability to satisfy our obligations under the notes.

• As of June 30, 2026, we had approximately $4.4 billion aggregate principal amount of indebtedness for borrowed money. We may also incur additional indebtedness to meet future financing needs. Our indebtedness could have significant negative consequences for our security holders and our business, res…

Text removed vs the prior filing · source: 10-Q · 2026-05-06

• the year ended December 31, 2025, which was filed with the SEC on March 2, 2026.

• There were no material changes during the period covered in this Quarterly Report to the risk factors previously disclosed in the

• Our indebtedness and liabilities could limit the cash flow available for our operations, expose us to risks that could adversely affect

• our business, financial condition and results of operations and impair our ability to satisfy our obligations under the notes.

• As of March 31, 2026, we had approximately $2.09 billion aggregate principal amount of indebtedness for borrowed money. In

Text added vs the prior filing · source: 10-Q · 2026-07-28

• During the three months ended June 30, 2026, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

• In connection with the restatement described in Part I, Item 4, the Company's Board of Directors completed its analysis under the Company's clawback policy as required by SEC Rule 10D-1. Based on this analysis, the Board determined that no recovery of previously paid incentive-based compensation was…

Text removed vs the prior filing · source: 10-Q · 2026-05-06

• During the three months ended March 31, 2026, no director or officer of the Company adopted or terminated a “Rule 10b5-1

• trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.