Core Scientific(CORZ) - 2024 Q3 - Quarterly Report

Revenue Performance - Total revenue decreased by $17.6 million or 16$95.4 million for the three months ended September 30, 2024, from $112.9 million for the same period in 2023[79]. - Digital asset self-mining revenue decreased by$14.9 million or 18%, to $68.1 million for the three months ended September 30, 2024, primarily due to a 62$10.1 million or 38%, to $16.9 million for the three months ended September 30, 2024, driven by the termination of contracts with several customers[81]. - Consolidated total revenue for the three months ended September 30, 2024, was$95.4 million, a decrease from $112.9 million in the same period of 2023, reflecting a decline of approximately 15$68.1 million for the three months ended September 30, 2024, down 18% from $83.1 million in the prior year[141]. - Total revenue for the three months ended September 30, 2024, was$95.4 million, a decrease of 15.5% from $112.9 million for the same period in 2023[141]. Operating Loss and Expenses - Operating loss increased to$41.2 million for the three months ended September 30, 2024, compared to a loss of $12.0 million for the same period in 2023[77]. - Total operating expenses increased by$13.5 million or 51%, reaching $40.3 million for the three months ended September 30, 2024, compared to$26.8 million in the same period last year[142]. - The company reported total operating expenses of $40.3 million for the three months ended September 30, 2024, a 51$26.8 million in the same period of 2023[133]. - Total operating expenses for the nine months ended September 30, 2024, were $88,655,000, up from$78,112,000 in the same period in 2023, reflecting a 13% increase[111]. Net Loss - Net loss was $455.3 million for the three months ended September 30, 2024, compared to a net loss of$41.1 million for the same period in 2023[77]. - For the three months ended September 30, 2024, the company reported a net loss of $455.3 million, compared to a net loss of$41.1 million for the same period in 2023[100]. - The net loss for the nine months ended September 30, 2024, was $1,049,464, compared to a net loss of$50,794 for the same period in 2023[166]. - The company reported a net loss of $455.3 million for the three months ended September 30, 2024[160]. Segment Performance - The Digital Asset Self-Mining segment revenue decreased to$68.1 million for the three months ended September 30, 2024, down from $83.1 million in the same period of 2023, reflecting a decline of approximately 18$16.9 million for the three months ended September 30, 2024, down from $29.8 million in the same period of 2023, representing a decline of approximately 43$10.3 million for the three months ended September 30, 2024, marking its first revenue contribution as a new segment[105]. - The gross profit for the Digital Asset Self-Mining segment was a loss of $6.4 million for the three months ended September 30, 2024, compared to a gross profit of$10.5 million in the same period of 2023[105]. Cash and Assets - Cash and cash equivalents rose significantly to $253.0 million as of September 30, 2024, compared to$50.4 million as of December 31, 2023[138]. - Total current assets increased to $277.9 million as of September 30, 2024, from$97.0 million as of December 31, 2023[138]. - Total liabilities increased to $1.65 billion as of September 30, 2024, from$1.31 billion as of December 31, 2023[138]. - Unrestricted cash and cash equivalents increased to $253.0 million as of September 30, 2024, compared to$50.4 million as of December 31, 2023[205]. Tax and Valuation - The company's estimated annual effective income tax rate for fiscal 2024 is 0.0%, significantly lower than the U.S. federal statutory rate of 21.0% due to various adjustments[95]. - The effective income tax rate for the three months ended September 30, 2024, was (0.3)%, compared to (0.7)% for the same period in 2023[151]. - The company has a full valuation allowance on its net deferred tax asset, indicating it is not expected to realize such asset in the near future[95]. Research and Development - Research and development expenses increased by $588 thousand or 26$2.8 million for the three months ended September 30, 2024[86]. - Research and development expenses increased to $6,814,000 for the nine months ended September 30, 2024, from$5,308,000 in the same period in 2023, marking a 28% increase[111]. - Research and development expenses rose by $1.5 million or 28$6.8 million for the nine months ended September 30, 2024, driven by increased payroll and benefits[243]. Stock and Equity - The Company has authorized the issuance of up to 10 billion shares of New Common Stock and 2 billion shares of Preferred Stock[120]. - The Company adopted an equity-based management incentive plan allowing for the grant of up to 40 million shares of Common Stock[123]. - The company had approximately $125.6 million of unrecognized stock-based compensation expense related to RSUs as of September 30, 2024[147]. - Stock-based compensation expense for the three months ended September 30, 2024, was$20.5 million, up from $14.9 million in the prior year[148]. Bankruptcy and Reorganization - The company emerged from bankruptcy on January 23, 2024, after confirming its Plan of Reorganization[189]. - The company emerged from bankruptcy on January 16, 2024, following the confirmation of its Plan of Reorganization[256]. - Reorganization items, net for the nine months ended September 30, 2024, included professional fees and other bankruptcy-related costs totaling$21.5 million, compared to $62.97 million for the same period in 2023[263]. Depreciation and Property - Depreciation expense for the three months ended September 30, 2024, was$28.5 million, compared to $24.0 million for the same period in 2023, representing an increase of approximately 18.8$86.6 million, up from $64.7 million in 2023, indicating a year-over-year increase of approximately 33.8$396,574 thousand as of September 30, 2024, compared to $401,522 thousand at the end of 2023[268].