Material weaknesses in internal control over financial reporting
Company: Core Scientific
The claim, verbatim
Material weaknesses identified in internal control over financial reporting related to: (i) insufficient accounting supervision and technical accounting experience in new or non-routine areas; (ii) lack of appropriate communication and recordkeeping for equity transactions; (iii) design deficiencies in segregation of duties for manual journal entries; and (iv) design deficiencies in segregation of duties for digital asset wallets
Source (primary)
Core Scientific 424B3 filed 2022-10-31 (SEC EDGAR, sec_filing)
View cached copy (2026-09-13)Live source ↗
Quote: “material weaknesses identified in connection with the audit of Legacy Core's consolidated financial statements for the two fiscal years ended December 31, 2021 and December 31, 2020 and the review of the Company's consolidated financial statements for the interim period ended March 31, 2022 and the interim period ended June 30, 2022 in Core Scientific's internal control over financial reporting related to (i) insufficient accounting and supervision with respect to the appropriate level of technical accounting experience and appropriate processes and procedures to assess and apply the relevant accounting framework, particularly in new or non-routine areas, (ii) a lack of appropriate communication and recordkeeping, particularly related to equity transactions, (iii) design deficiencies in internal controls necessary to enforce appropriate segregation of duties for manual journal entries to our books and records, and (iv) design deficiencies in internal controls necessary to enforce appropriate segregation of duties for our digital asset wallets”
How we checked this
Checked on October 11, 2026. The cited source supports every part of this claim.
The 8-K attached to this prospectus supplement lists all four material weaknesses the claim describes, in the same order and substance. The claim condenses the wording slightly but does not add anything the filing does not state.
Confirmed in the source:
- Core Scientific identified material weaknesses in its internal control over financial reporting
- One material weakness related to insufficient accounting and supervision regarding technical accounting experience, particularly in new or non-routine areas
- One material weakness related to a lack of appropriate communication and recordkeeping, particularly related to equity transactions
- One material weakness related to design deficiencies in internal controls enforcing segregation of duties for manual journal entries
- One material weakness related to design deficiencies in internal controls enforcing segregation of duties for digital asset wallets
What we did: Read our cached copy of SEC EDGAR (https://www.sec.gov/Archives/edgar/data/1839341/000119312522274014/d416148d424b3.htm) in full (11,077 characters, retrieved September 13, 2026) and checked each assertion in the claim against it.
Additional evidence
confirms Core Scientific 424B3 filed 2022-10-31
Quote: “material weaknesses identified in connection with the audit of Legacy Core's consolidated financial statements for the two fiscal years ended December 31, 2021 and December 31, 2020 and the review of the Company's consolidated financial statements for the interim period ended March 31, 2022 and the interim period ended June 30, 2022 in Core Scientific's internal control over financial reporting related to (i) insufficient accounting and supervision with respect to the appropriate level of technical accounting experience and appropriate processes and procedures to assess and apply the relevant accounting framework, particularly in new or non-routine areas, (ii) a lack of appropriate communication and recordkeeping, particularly related to equity transactions, (iii) design deficiencies in internal controls necessary to enforce appropriate segregation of duties for manual journal entries to our books and records, and (iv) design deficiencies in internal controls necessary to enforce appropriate segregation of duties for our digital asset wallets”
confirms Core Scientific 424B3 filed 2022-10-31
Quote: “material weaknesses identified in connection with the audit of Legacy Core's consolidated financial statements for the two fiscal years ended December 31, 2021 and December 31, 2020 and the review of the Company's consolidated financial statements for the interim period ended March 31, 2022 and the interim period ended June 30, 2022 in Core Scientific's internal control over financial reporting related to (i) insufficient accounting and supervision with respect to the appropriate level of technical accounting experience and appropriate processes and procedures to assess and apply the relevant accounting framework, particularly in new or non-routine areas, (ii) a lack of appropriate communication and recordkeeping, particularly related to equity transactions, (iii) design deficiencies in internal controls necessary to enforce appropriate segregation of duties for manual journal entries to our books and records, and (iv) design deficiencies in internal controls necessary to enforce appropriate segregation of duties for our digital asset wallets”