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Core Scientific Inctx

For the period ended Dec 31, 2024. Filed Feb 27, 2025.

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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2024 · Filed Feb 27, 2025

CORZ$12.72+8.2%Stored close · as of Nov 9, 2026

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Contents

7 — Leases

  1. LEASES

Lessee Accounting

In February 2024, the Company entered into a lease agreement for a data center in Austin, Texas with a current operating capacity of 20 MW (the “Austin Lease”). The Austin Lease term iseight years. As of December 31, 2024, total future lease payments were expected to be approximately $91.2 million.

In September 2024, the Company entered into a lease agreement by and between the Company and Aubix, LLC (the "Aubix Lease") for approximately 5.7 acres of land, including a 40,000 square foot building that the Company intends to use for its HPC hosting operations. The Aubix Lease commenced in November 2024 when the Company began occupancy of the leased space. The term of the Aubix Lease is 10 years from the commencement date. The Company has the right to extend the term of the Aubix Lease up to an additional 15 years in 5 year increments. At lease inception, total future minimum lease payments related to the Aubix Lease were approximately $43.5 million.

In November 2024, the Company entered into a lease amendment with The City of Denton (the "Denton Lease Amendment") for additional land and access to power. The Denton Lease Amendment created an additional right-of-use asset and was recorded as a new operating lease. The term of the Denton Lease Amendment is 25 years. At lease inception, total future minimum lease payments related to the Denton Lease Amendment were $17.6 million.

The components of operating and finance leases are presented on the Company’s Consolidated Balance Sheets as follows (in thousands):

Financial statement line itemDecember 31, 2024December 31, 2023
Assets:
Operating lease right-of-use assetsOperating lease right-of-use assets$114,472$7,844
Finance lease right-of-use assetsProperty, plant and equipment, net$5,873$16,268
Liabilities:
Operating lease liabilities, current portionOperating lease liabilities, current portion$9,974$77
Operating lease liabilities, net of current portionOperating lease liabilities, net of current portion$97,843$1,512
Finance lease liabilities, current portionFinance lease liabilities, current portion$1,669$19,771
Finance lease liabilities, net of current portionFinance lease liabilities, net of current portion$3$35,745

Supplemental disclosure of noncash investing and financing activities in the Company’s Consolidated Statements of Cash Flows includes a decrease in lease liability due to lease satisfactions on the Effective Date of $50.7 million presented in Extinguishment of accounts payable, accrued expenses, finance lease liability, and notes payable upon emergence for the year ended December 31, 2024.

The components of lease expense were as follows (in thousands):

Year Ended December 31,
Financial statement line item202420232022
Operating lease expenseCost of HPC hosting services$10,274$—$—
Operating lease expenseCost of digital asset self-mining413——
Operating lease expenseCost of digital asset hosted mining services87——
Operating lease expenseGeneral and administrative expenses2,1291,0241,937
Short-term lease expenseGeneral and administrative expenses383—24
Variable lease expenseCost of HPC hosting services1,455——
Finance lease expense:
Amortization of right-of-use assetsCost of digital asset self-mining1,10611,42431,372
Interest on lease liabilitiesInterest expense, net1,2001,7877,080
Total finance lease expense2,30613,21138,452
Total lease expense$17,047$14,235$40,413

Information relating to the lease term and discount rate is as follows:

December 31, 2024December 31, 2023
Weighted Average Remaining Lease Term (Years)
Operating leases8.516.7
Finance leases0.72.2
Weighted Average Discount Rate
Operating leases8.5%11.7%
Finance leases12.5%12.9%

Information relating to lease payments is as follows (in thousands):

Year Ended December 31,
202420232022
Lease Payments
Operating cash flows from operating leases$16,328$956$726
Operating cash flows from finance leases$1,856$964$8,873
Financing cash flows from finance leases$6,038$3,495$27,868

1 Approximately $4.6 million of finance lease liabilities were reinstated pursuant to the Plan of Reorganization. Of the $7.9 million of finance lease payments made during the year ended December 31, 2024, $4.4 million related to cure payments from emergence on the Effective Date.

The Company’s minimum payments under noncancelable operating and finance leases having initial terms and bargain renewal periods in excess of one year are as follows at December 31, 2024, and thereafter (in thousands):

Operating leases · Finance leases
2025$18,589$1,750
202619,0003
202719,423—
202819,859—
202920,358—
Thereafter54,309—
Total lease payments151,5381,753
Less: imputed interest43,72181
Total$107,817$1,672

Lessor Accounting

We generate revenue by leasing property to a customer under licensing agreements. The manner in which we recognize these transactions in our financial statements is described in Note 2 — Summary of Significant Accounting Policies, Revenue Recognition — HPC Hosting Segment. There wasno lease revenue during the years ended December 31, 2023 and 2022.

The components of lease revenue were as follows (in thousands):

Year Ended December 31, 2024
Lease Revenue
Operating lease revenue$17,498
Variable lease revenue6,880
Total lease revenue$24,378

The following table represents the maturity analysis of operating lease payments expected to be received at December 31, 2024, and thereafter (in thousands):

Operating leases
2025$23,254
202623,952
202724,670
202825,410
202926,173
Thereafter33,747
Total$157,206
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