美國
證券交易委員會
華盛頓特區20549
表格
1934年證券交易所法
截至該季度結束
1934年證券交易所法
至________年過渡期間至________年
C書面檔案編號:
![]() |
comstock inc
(依憑章程所載的完整登記名稱)
| | |
(依據所在地或其他管轄區) 的註冊地或組織地點) | (國稅局雇主識別號碼) 統一編號 | |
| | |
(總部辦公地址) | (郵政編碼) | |
( | ||
(申報人的電話號碼) | ||
根據法案第12(b)條規定註冊的證券: | ||
每種類別的名稱 | 交易符號 | 每個註冊交易所的名稱 |
| | |
根據法案第12(g)條規定登記的有價證券:無。 | ||||
請用勾選標記表示,申報人(1)在過去12個月內已按照1934年證券交易所法的第13或15(d)條規定提交了所有要提交的報告(或申報人要求提交此類報告的時間較短的時間段內),且(2)在過去90天內一直需要遵守此類報告要求。 | ☒ | 沒有 | ☐ | |
請在方框內打勾表示,在過去12個月(或註冊人需要提交此類文件的較短時間段內),是否根據S-T法規第405條規定要求提交所有電子互動數據文件。 | ☒ | 沒有 | ☐ | |
請使用方框標記出是否該登記人屬於大型加速遞交者、加速遞交者、非加速遞交者或較小的報告公司。請參見《交易法》第1202條中對大型加速遞交者、加速遞交者和較小的報告公司的定義。 |
大型加速歸檔人 | ☐ | 加速披露人 | ☐ | 新興成長型企業 | | ||
| ☒ | 小型報告公司 | |
如果該企業為新興成長型企業,請在是否選擇不使用證交法第13(a)條所提供之符合任何新的或修訂財務會計標準的延長過渡期的方格中打勾。 | 是 | ☐ | 沒有 | ☒ |
勾選表示申報人是否為外殼公司(定義於交易所法規第1202條)。 | 是 | 沒有 | ☒ | |
2024年10月18日,每股面值為$0.000666的普通股的流通股數為 |
本頁故意留白。
comstock inc
10-Q表格
季度期間已結束 2024年和2023年的結束日期是9月30日
關於前瞻性聲明的注意事項
本季度報告中包含的某些聲明屬於前瞻性聲明,根據1933年修訂及補充的證券法第27A條和1934年修訂及補充的證券交易法第21E條的規定。除歷史事實陳述外,所有聲明均屬前瞻性聲明。 “相信” “期望” “預計” “估計,” “或類似表述的目的是確定” “計劃” “應該” “打算” “可能,” “將會,” “將會” “潛在的” 等類似表述可用於識別前瞻性聲明,但並非專屬方式。前瞻性聲明包括關於以下事項的聲明:未來市場條件;未來勘探或收購;未來研究、開發和勘探活動的變化;未來財務、自然和社會收益;產品和服務的未來價格、銷售和需求;土地權利和用途;許可證;生產能力和運營;營業費用和開支;未來資本支出及其對我們的影響;運營和管理變化(包括董事會的變化);業務策略、規劃和戰術的變化;未來就業和員工貢獻,包括顧問;未來土地和資產銷售;投資、收購、合資企業、戰略聯盟、業務組合、運營、稅收、財務和重組舉措,包括重組費用的性質、時間安排和會計處理,衍生資產和負債以及其影響;應急情況;訴訟、行政或仲裁程序;環保合規和監管環境變化;發行、股權或債務證券的銷售或發行限制,包括資產銷售及相關費用;商機、增長率、未來營運資本需求、收入、變量成本、吞吐量、營業費用、債務水平、現金流、利潤率、稅收和收益。
這些聲明是基於我們管理層根據其經驗和他們對歷史和當前趨勢、現狀、可能的未來發展和其他他們認爲合適的因素所做的假設和評估。前瞻性聲明不構成保證、陳述或保證,受到風險和不確定性的影響,其中許多是不可預見的,超出我們的控制範圍,可能導致實際結果、發展和業務決策與這些前瞻性聲明所考慮的有重大差異。 其中一些風險和不確定性包括本報告中列明的風險因素以及我們截至2023年12月31日財年結束的年度報告第10-k表格中所述的以下內容:氣候變化或自然災害的不利影響;全球或區域性傳染病傳播或其他危機的不利影響;全球經濟和資本市場的不確定性;發展可再生能源、脫碳和/或清潔能源技術、與危險材料和金屬回收、加工或開採活動相關的危險和不確定性;黃金或礦產勘探的投機性質,以及鋁、鎘、銅、硅、白銀、鋼鐵和其他金屬和材料回收,包括資源數量或品位減少的風險;與勘探、金屬回收、材料加工或開採活動相關的運營或技術困難;與貴金屬和其他金屬相關的活動的成本、危險和不確定性,包括環保和經濟增長的、創新的乾淨採礦和加工技術、貴金屬勘探、資源開發、經濟可行性評估、環境復墾和歷史修復以及現金生產;對我們財產所有權的爭奪;因股票發行、資本重組和資產負債表重組活動而給我們股東造成的潛在稀釋;可能無法遵守適用的政府法規或法律;採用或法規的變化對我們業務產生不利影響;許可限制或延遲;對商機的挑戰或可能無法獲得商機的益處,包括我們可能面臨或追求的研發階段活動,包括涉及量子計算和基於材料科學的人工智能支持的先進材料開發和開發服務,生物燃料和相關材料生產中的纖維素技術開發;生物燃料中纖維素技術的商業化;成功識別、融資、完成和整合收購、合資企業、戰略聯盟、合作研發協議、企業合併、資產和股權投資出售,以及我們將來可能參與的投資;美國或其他貨幣或財政政策或法規的變化;由於資本限制而導致生產能力中斷;設備故障;黃金或其他某些大宗商品(如鋁、鎘 金、銅、硅、白銀、鋼鐵等)價格波動問題( 銅、硅、白銀、鋼鐵和其他金屬和材料青黴素、水、柴油、汽油和替代燃料以及電力); 一般公認會計原則的變化; 戰爭、大規模槍擊案、恐怖主義和地緣政治事件的不利影響; 潛在無法實施我們的業務策略; 潛在收入增長受阻; 潛在無法吸引和留住關鍵人員; 因供應商實施的信貸或其他限制而導致關鍵物資、設備和原材料交付中斷; 對我們提出索賠、訴訟和訴訟程序的主張; 潛在無法償還債務和租賃債務的可能性; 潛在無法維持有效的財務報告內部控制體系; 潛在不能或未能及時向證券交易委員會提交週期性報告; 潛在無法在任何證券交易所或市場上掛牌或維持我們的證券掛牌; 以及停工或其他勞資糾紛。 發生這類事件或情況可能對我們的業務、財務狀況、經營業績或現金流,或我們證券的市場價格產生重大不利影響。我們或由我們或代表我們行事的人作出的所有後續書面和口頭前瞻性聲明在其整體上均受這些因素的明確限制。除非證券法或其他法律的要求,我們不承擔公開更新或修訂任何前瞻性聲明的義務,無論是出於新信息、未來事件或其他原因。
簡明合併資產負債表
(未經審計)
2024年9月30日 | 2023年12月31日 | |||||||
資產 | ||||||||
流動資產: | ||||||||
現金及現金等價物 | $ | $ | ||||||
投資 | ||||||||
衍生工具資產 | ||||||||
待售資產-土地、礦業權和房產 | ||||||||
資產預付款和其他流動資產的變動 | ||||||||
總流動資產 | ||||||||
非流動資產: | ||||||||
投資 | ||||||||
礦產權和固定資產 | ||||||||
固定資產淨值 | ||||||||
存款 | ||||||||
7,637 | ||||||||
應收票據及預付款項,淨額 | ||||||||
無形資產, 淨額 | ||||||||
融資租賃權益資產,淨額 | ||||||||
運營租賃權益資產,淨額 | ||||||||
其他 | ||||||||
總非流動資產 | ||||||||
資產總計 | $ | $ |
簡明綜合財務報表的附註是這些報表的組成部分.
comstock inc及其附屬公司
壓縮的合併資產負債表(續)
(未經審計)
2024年9月30日 | 2023年12月31日 | |||||||
負債和股東權益 | ||||||||
流動負債: | ||||||||
應付賬款 | $ | $ | ||||||
應計費用及其他負債 | ||||||||
存款 | ||||||||
遞延收入 | ||||||||
衍生工具負債 | ||||||||
融資租賃 - 使用權租賃負債 | ||||||||
債務,淨額 - 當前部分 | ||||||||
流動負債合計 | ||||||||
長期負債: | ||||||||
復墾責任 | ||||||||
經營租賃 - 使用權租賃負債,開多期部分 | ||||||||
遞延收入 | ||||||||
負債-長期部分 | ||||||||
其他負債 | ||||||||
長期負債總額 | ||||||||
負債合計 | ||||||||
承諾和 contingencies(注9和14) | ||||||||
股東權益 | ||||||||
優先股 $ 每股面值, 股已流通 | ||||||||
普通股,每股面值爲 $0.0001; 每股面值, 和頁面。 2024年9月30日和2023年12月31日分別發行並流通的股份數 | ||||||||
庫藏股 和頁面。 2024年9月30日和2023年12月31日,分別以成本計量的股票 | ( | ) | ||||||
額外實收資本 | ||||||||
累積赤字 | ( | ) | ( | ) | ||||
comstock inc的總權益 | ||||||||
非控制權益 | ||||||||
股東權益合計 | ||||||||
負債合計與股東權益 | $ | $ |
簡明綜合財務報表的附註是這些報表的組成部分.
簡明合併利潤表
(未經審計)
三個月結束 |
九個月結束 |
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2020年9月30日 |
2020年9月30日 |
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2024 |
2023 |
2024 |
2023 |
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營業收入 |
$ | $ | $ | $ | ||||||||||||
營業費用: |
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銷售,總務及管理費用 |
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研發 |
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折舊和攤銷 |
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無形資產減值損失 |
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固定資產減值 |
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設施銷售收益 |
( |
) | ( |
) | ||||||||||||
營業費用總計 |
( |
) | ||||||||||||||
營業收支(虧損) |
( |
) | ( |
) | ( |
) | ||||||||||
其他收益(費用) |
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投資收益 |
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利息支出 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
利息收入 |
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衍生工具公允價值變動 |
( |
) | ( |
) | ||||||||||||
債務轉換的收益(損失) |
( |
) | ( |
) | ||||||||||||
債務清償損失 |
( |
) | ( |
) | ||||||||||||
其他費用收益 |
( |
) | ( |
) | ( |
) | ||||||||||
總其他收入(費用),淨額 |
( |
) | ( |
) | ||||||||||||
|
( |
) | ( |
) | ||||||||||||
歸屬於非控制權益的淨利潤(虧損) |
( |
) | ( |
) | ||||||||||||
淨利潤(損失)歸屬於comstock inc。 |
$ | ( |
) | $ | $ | ( |
) | $ | ||||||||
基本每股收益: |
||||||||||||||||
每股淨收入(虧損)——基礎 |
$ | ( |
) | $ | $ | ( |
) | $ | ||||||||
攤薄每股收益: |
||||||||||||||||
每股淨利潤攤薄 |
$ | ( |
) | $ | $ | ( |
) | $ | ||||||||
基礎加權平均普通股數 |
||||||||||||||||
攤薄加權平均普通股數 |
||||||||||||||||
簡明綜合財務報表的附註是這些報表的組成部分.
簡化合並股東權益變動表
(未經審計)
額外 | 財政部 | 非- | ||||||||||||||||||||||||||
普通股 | 已支付 | 累計 | 股票 | 控制 | ||||||||||||||||||||||||
股份 | 金額 | 資本 | 赤字 | 金額 | 利息 | 總計 | ||||||||||||||||||||||
餘額 - 2023年1月1日 | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | ||||||||||||||||||
普通股發行 | ||||||||||||||||||||||||||||
普通股發行成本 | — | ( | ) | ( | ) | |||||||||||||||||||||||
以普通股發行成本發行普通股 | ||||||||||||||||||||||||||||
以普通股發行用於償還債務及應計利息 | ||||||||||||||||||||||||||||
員工和董事基於股份的補償 | — | |||||||||||||||||||||||||||
AQMS未分配的LINICO分紅派息 | — | ( | ) | ( | ) | |||||||||||||||||||||||
淨損失 | — | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
結餘 - 2023年3月31日 | ( | ) | ( | ) | ||||||||||||||||||||||||
普通股發行 | ||||||||||||||||||||||||||||
發行普通股用於轉換債務和應計利息,淨回股 | ||||||||||||||||||||||||||||
發行普通股以替代利息支付 | ||||||||||||||||||||||||||||
員工和董事基於股份的補償 | — | |||||||||||||||||||||||||||
AQMS未分配的LINICO分紅派息 | — | ( | ) | ( | ) | |||||||||||||||||||||||
淨損失 | — | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
餘額 - 2023年6月30日 | ( | ) | ( | ) | ||||||||||||||||||||||||
普通股發行 | ||||||||||||||||||||||||||||
向Northern Comstock LLC支付礦權款 | ||||||||||||||||||||||||||||
發行普通股以轉換債務和應計利息 | ||||||||||||||||||||||||||||
發行普通股以替代支付利息 | ||||||||||||||||||||||||||||
員工和董事基於股份的薪酬(追回) | — | ( | ) | ( | ) | |||||||||||||||||||||||
AQMS未分配的LINICO分紅派息 | — | ( | ) | ( | ) | |||||||||||||||||||||||
向AQMS的LINICO分配 | — | ( | ) | ( | ) | |||||||||||||||||||||||
凈利潤 | — | |||||||||||||||||||||||||||
資產負債表 - 2023年9月30日 | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | ||||||||||||||||||
餘額 - 2024年1月1日 | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | ||||||||||||||||||
普通股發行 | ||||||||||||||||||||||||||||
普通股發行成本 | — | ( | ) | ( | ) | |||||||||||||||||||||||
爲發行成本而發行普通股 | ||||||||||||||||||||||||||||
爲債務發行成本而發行普通股 | ||||||||||||||||||||||||||||
爲債務及應計利息的轉換而發行普通股 | ||||||||||||||||||||||||||||
以發行普通股替代利息支付 | ||||||||||||||||||||||||||||
退休庫存股 ( 股) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
員工和董事基於股份的薪酬 | — | |||||||||||||||||||||||||||
非控股權益在子公司股權的歸屬 | — | ( | ) | |||||||||||||||||||||||||
淨損失 | — | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
餘額 - 2024年3月31日 | ( | ) | ||||||||||||||||||||||||||
普通股發行 | ||||||||||||||||||||||||||||
發行普通股用於償還債務和應計利息 | ||||||||||||||||||||||||||||
發行普通股以替代支付利息 | ||||||||||||||||||||||||||||
爲市場營銷相關費用發放普通股 | ||||||||||||||||||||||||||||
爲海伍德租賃修訂發放普通股 | ||||||||||||||||||||||||||||
爲ASt租賃修訂發放普通股 | ||||||||||||||||||||||||||||
員工和董事基於股份的薪酬 | — | |||||||||||||||||||||||||||
與債務修訂相關的權證修改 | — | |||||||||||||||||||||||||||
淨損失 | — | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
餘額 - 2024年6月30日 | ( | ) | ||||||||||||||||||||||||||
普通股發行 | ||||||||||||||||||||||||||||
支付給Northern Comstock LLC的礦權費用 | ||||||||||||||||||||||||||||
發行普通股用於償還債務發行費用 | ||||||||||||||||||||||||||||
發行普通股用於轉換債務和應計利息 | ||||||||||||||||||||||||||||
發行普通股以代替支付利息 | ||||||||||||||||||||||||||||
員工和董事基於股票的補償 | — | |||||||||||||||||||||||||||
淨損失 | — | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
餘額 - 2024年9月30日 | $ | $ | $ | ( | ) | $ | $ | $ |
簡明綜合財務報表的附註是這些報表的組成部分.
簡明合併現金流量表
(未經審計)
截至九個月 |
||||||||
九月三十日 |
||||||||
2024 |
2023 |
|||||||
經營活動產生的現金流量 |
||||||||
凈利潤(虧損) |
$ | ( |
) | $ | ||||
調整淨虧損與經營活動使用的現金的折算: |
||||||||
折舊和攤銷 |
||||||||
融資租賃的攤銷 |
||||||||
與融資租賃相關的折扣攤銷 |
||||||||
債務折扣及其他債務相關項目的攤銷 |
||||||||
恢復義務的增值 |
||||||||
以普通股支付的利息費用 |
||||||||
無形資產減值 |
||||||||
資產、廠房和設備的減值 |
||||||||
以普通股支付的研發費用 |
||||||||
SSOF存款註銷的收益 |
( |
) | ||||||
設施出售的收益 |
( |
) | ||||||
投資收益 |
( |
) | ||||||
債務滅失損失 |
||||||||
債務轉換損失(收益) |
( |
) | ||||||
員工及董事股份基於補償(回收) |
( |
) | ||||||
衍生工具公允價值變動 |
( |
) | ||||||
Pelen期權損失 |
||||||||
權益法投資的淨損失份額 |
||||||||
其他 |
( |
) | ( |
) | ||||
經營資產和負債的變動: |
||||||||
預付費用 |
( |
) | ( |
) | ||||
存款 - 資產 |
||||||||
其他資產 |
||||||||
應付賬款 |
( |
) | ||||||
應計費用、其他負債和存款 |
( |
) | ||||||
遞延收入 |
||||||||
其他負債 |
||||||||
淨現金流出活動 |
( |
) | ( |
) | ||||
投資活動的現金流量: |
||||||||
購買礦權和財產、工廠及設備 |
( |
) | ( |
) | ||||
出售租賃設施及相關資產的收益 |
||||||||
購買Aqua Metals Transfer LLC及設施 |
( |
) | ||||||
出售ABTC普通股的收益 |
||||||||
出售Green Li-ion優先股的收益 |
||||||||
與衍生品相關的合同承諾支付 |
( |
) | ( |
) | ||||
向Sierra Springs機會基金公司提供的預付款。 |
( |
) | ||||||
對SSOF的投資。 |
( |
) | ||||||
無形資產的收購。 |
( |
) | ||||||
對RenFuel應收票據的資金支持。 |
( |
) | ||||||
向GenMat提供的預付款。 |
( |
) | ||||||
對恢復債券的資金支持。 |
( |
) | ||||||
其他 |
( |
) | ( |
) | ||||
投資活動提供的(使用的)淨現金 |
( |
) | ||||||
融資活動的現金流量: |
||||||||
融資租賃的本金償還 |
( |
) | ( |
) | ||||
發行普通股的收益 |
||||||||
債務的本金償還 |
( |
) | ||||||
債務發行 |
||||||||
分配給AQMS的支付 |
( |
) | ||||||
債務發行成本 |
( |
) | ||||||
普通股發行費用 |
( |
) | ( |
) | ||||
融資活動提供的淨現金 |
||||||||
現金及現金等價物的淨增加(減少) |
( |
) | ||||||
期初的現金及現金等價物 |
||||||||
期末現金及現金等價物 |
$ | $ | ||||||
非現金投資及融資活動: |
||||||||
發行普通股用於債務轉換及應計利息 |
$ | $ | ||||||
發行普通股用於Northern Comstock LLC礦權支付 |
$ | $ | ||||||
發行普通股以償還債務 |
$ | $ | ||||||
以應付賬款獲取的投資 |
$ | $ | ||||||
發行普通股用於盡職調查和承諾費用 |
$ | $ | ||||||
發行普通股代替支付營銷費用 |
$ | $ | ||||||
因Haywood租賃修正發行普通股 |
$ | $ | ||||||
因ASt租賃修正發行普通股 |
$ | $ | ||||||
GenMat持有的普通股公允價值轉移至GenMat預付款項(見註釋2) |
$ | $ | ||||||
由於建築物經營租賃產生的使用權資產和負債 |
$ | $ | ||||||
將衍生負債轉移至應計費用 |
$ | $ | ||||||
普通股在債務及應計利息轉換中的回報 |
$ | $ | ( |
) | ||||
出售設施時收到的投資股份 |
$ | $ | ||||||
以投資股份代替託管資金的回報 |
$ | $ | ( |
) |
簡明綜合財務報表的附註是這些報表的組成部分.
簡化合並財務報表附註
注意 1 重要會計政策概要
公司參考
除非另有說明,以下術語 我們, 我們, 我們的, Comstock,或 公司 指Comstock Inc.及其合併的子公司。
當前財務報表的基礎和合並原則
簡化合並基本報表是根據美國公認會計原則("GAAP")編制的,包含Comstock Inc.及其全資和控股子公司的帳戶。內部交易已被消除。簡化合並基本報表並 不 包含所有年度合併基本報表要求的披露內容,因此應與我們年度報告中的合併基本報表及其附註一起閱讀。 10-k文件,截止於 2023年12月31日的合併基本報表及附註中. 經營業績爲 三 和 九個月期間-個月結束 2024年9月30日 可能 不 可能代表全年的2024 結果。
管理層認爲,隨附的簡明合併基本報表包含了我們截至的財務狀況所需的所有調整, 2024年9月30日以及我們在此期間的經營成果和股權變動。 三 和 九個月期間-個月結束 2024年9月30日 和 2023,以及我們的現金流量表} 九個月期間-個月結束 2024年9月30日 和 2023.
流動性和資本資源
簡化合並基本報表是基於持續經營假設編制的,該假設假定資產的實現和負債的履行是在業務的正常過程中進行的。公司已經出現了重複的經營淨虧損,並且累積赤字達$
重分類
某些以前的期間金額已重新分類,以符合 2024 財務報表的呈現。重新分類對 無 之前報告的凈利潤(損失)或現金流產生了影響。
最近發佈的會計準則
在 2023年8月, FASB發佈了ASU 2023-05 業務合併 - 創業公司形成(子主題 805-60):確認和初始計量新指引涉及在創業公司獨立基本報表中,對創業公司成立時所作貢獻的會計處理。修訂的目標是(1)向創業公司的基本報表中的投資者和其他資本分配者提供決策有用的信息,並且(2)減少實踐中的差異。該指引採用前瞻性適用,並適用於成立日期爲後 2025年1月1日, 允許提前採用。我們將自 2025年1月1日針對任何新成立的合資企業。
在 2023年11月, FASB發佈了ASU 2023-07 (主題 280) 對可報告分部披露的改進. 新的指引要求披露重要的分部費用,這些費用(1) 經常提供給首席運營決策者或可以輕鬆從經常提供的信息中計算得出,並(2) 包含在報告的分部利潤或虧損的衡量指標中。新的標準還允許公司披露多個分部利潤或虧損的衡量標準,如果這些標準用於評估業績和分配資源。該指引適用於在之後開始的財政年度。 2023年12月15日 以及在之後開始的財政年度的中期 2024年12月15日之後。 允許提前採用,且對於不切實際的情況要求追溯採用。該指導方針在實施時可能會導致額外的披露要求。這些新的披露要求將包含在截至 2024年12月31日的合併基本報表中。 比較年度的分部披露 2023年12月31日 將修改以包括新的要求。新的披露將包括我們重要的分部費用類別及每個可報告分部的金額,我們的首席運營決策者以及首席運營決策者如何使用每個報告的分部利潤和損失指標來評估績效併爲該分部分配資源。
在 2023年12月, FASB發佈了ASU 2023-09 (主題 740)對所得稅披露的改進新的指導方針旨在增強年度所得稅披露,以回應投資者對公司運營中存在的稅收風險和機會的信息需求。本標準中的修正要求按指定類別披露與有效稅率與法定稅率之間的調節(稅率調解)有關的額外信息,包括聯邦、州和外國所得稅。還要求增加關於稅率調解中個別調節項目的詳細信息,前提是這些項目的影響超過指定閾值。除了與稅率調解相關的新披露外,本次更新中的修正要求提供關於所支付稅款(扣除已收到退款)信息的分解,分別針對聯邦、州和外國稅款,以及進一步分解爲特定司法管轄區,前提是相關金額超過定量閾值。本次更新中的修正適用於2024年12月15日之後開始的年度期間, 並允許提前採納。公司計劃在 2025年1月1日。 公司目前正在評估此披露指引對我們合併基本報表的影響。
管理層認爲, 不 任何其他近期發佈但尚未生效的會計準則,如果目前被採納, 不 當前所採用的會計準則雖未見效,但會對伴隨的基本報表產生重大影響。
注意 2 投資
投資摘要
在 2024年9月30日 和 2023年12月31日的合併基本報表及附註中 我們的投資包括:
2024年9月30日 | 2023年12月31日 | |||||||||||||||
權益法投資: | 投資 | 所有權百分比 | 投資 | 所有權百分比 | ||||||||||||
量子生成材料有限責任公司 | $ | % | $ | % | ||||||||||||
皮倫有限責任公司 | % | % | ||||||||||||||
對研發公司的投資 | % | % | ||||||||||||||
總權益法投資 | ||||||||||||||||
計量替代投資: | ||||||||||||||||
綠鋰離子私人有限公司 | % | % | ||||||||||||||
塞拉春季機會基金公司 | % | % | ||||||||||||||
總計量替代投資 | ||||||||||||||||
總投資 | ||||||||||||||||
減:當前投資 | ( | ) | ( | ) | ||||||||||||
長期投資 | $ | $ |
附屬公司的基本報表摘要(
2024年9月30日 | 2023年12月31日 | |||||||
流動資產 | $ | $ | ||||||
非流動資產 | ||||||||
流動負債 | ||||||||
非流動負債 |
截至九個月 | ||||||||
2024年9月30日 | 2023年9月30日 | |||||||
營業收入 | $ | $ | ||||||
毛利潤 | ||||||||
淨損失 | $ | ( | ) | $ | ( | ) | ||
歸屬於Comstock Inc. 的淨虧損。 | $ | ( | ) | $ | ( | ) |
在收購時,管理層確定我們投資價值超過各個權益法投資的淨資產部分由商譽和知識產權組成。 2024年9月30日 和 2023年12月31日的合併基本報表及附註中上述表格中總結的財務信息中的非流動資產包括對公司的普通股的GenMat投資和相關衍生資產,金額爲$
對量子生成材料公司的投資
在 2021年6月24日, 本公司投資了Quantum Generative Materials LLC(「GenMat」)的股權,我們收到了
通過 2024年5月17日, Comstock直接投資了現金$
在 2024年5月17日, GenMat持有
在 2024年9月30日, 這些股票的公允價值爲$
截至 三 和 九個月期間-個月結束 2024年9月30日公司記錄了$
截至 三 和 九個月期間-個月結束 2023年9月30日公司記錄了$
公司的執行主席兼首席執行官擔任GenMat的董事長,公司首席科技官和另一名Comstock員工也擔任GenMat的董事會成員。GenMat的董事會由以下人員組成,
請參見注釋 15, 後續事件, 針對GenMat。
對Pelen LLC的投資
在 2020年4月24日, 公司完成了對
對研發公司的投資
在 2024年3月1日, 公司與一家無關聯的研發公司(「開發者」)簽訂了證券購買協議(「開發者證券購買協議」),根據該協議,公司同意購買
階段 1
• | $ |
• | $ |
• | $ |
完成階段後 1
• | $ |
• | $ |
由於支付是 不 有利息的,軸承公司計算了未來現金支付的隱含利息,金額爲 $
對綠色鋰離子的投資
作爲我們收購LINICO多數股權的一部分 2021年12月30日, 我們收購了
對西拉春天機會基金公司進行投資。
在 2019, 公司投資了$
在 2023年12月31日的合併基本報表及附註中, 公司的總SSOF投資包括
公司的首席執行官是SSOF的高管。
對美國電池科技公司的投資
與該設施的銷售有關, 2023, 公司收到 11 百萬股有限流通普通股,來自設施的買方,美國電池科技公司(「ABTC」),其初始公允價值爲$
注意 3 應收票據和預付款,淨額
應收賬款和預付款淨額爲 2024年9月30日 和 2023年12月31日的合併基本報表及附註中 包括:
2024年9月30日 | 2023年12月31日 | |||||||
非流動部分 | ||||||||
RenFuel K20億 應收賬款 | $ | $ | ||||||
GenMat預付款 | ||||||||
Daney Ranch 應收賬款 | ||||||||
總應收賬款和預付款,非流動部分,淨額 | $ | $ |
RenFuel K2B Ab (“RenFuel”)
開啓 2024 年 1 月 2 日, 公司出資 $
截至 九個月期間-個月結束 2024年9月30日,公司資助了$
GenMat進展
GenMat的預付餘額包括 $
注意 4 財產、計劃與設備、淨值和礦權
截至2023年10月的數據,物業、植物和設備在 2024年9月30日 和 2023年12月31日的合併基本報表及附註中 包括以下內容:
2024年9月30日 | 2023年12月31日 | |||||||
土地 | $ | $ | ||||||
租賃給第三方的房地產 | ||||||||
礦物加工用的財產、廠房和設備 | ||||||||
其他 | ||||||||
累計折舊 | ( | ) | ( | ) | ||||
總財產、廠房和設備,淨值 | $ | $ |
在 三-個月結束 2024年9月30日 和 2023我們確認了$的折舊費用
礦產權益和財產
我們在此的房產 2024年9月30日 和 2023年12月31日的合併基本報表及附註中 包含以下內容:
2024年9月30日 | 2023年12月31日 | |||||||
康斯托克礦產地產 | $ | $ | ||||||
其他礦產物業 | ||||||||
水權 | ||||||||
礦權和物業總計 | $ | $ |
康斯托克礦產資產包括公司所有的資源區域和勘探目標。 九個月期間-個月結束 2024年9月30日 和 2023我們沒有
記錄任何耗竭費用,作爲 截至2024年9月30日和2023年12月31日,未發行。 這些資產目前正在生產中。我們所有的礦產勘探和採礦租賃付款在壓縮合並運營報告中被歸類爲銷售、一般和行政費用。
在 2023年6月30日, 公司與Mackay 貴金屬公司("Mackay")簽署了一份礦產勘探和採礦租賃協議("採礦租賃")。該採礦租賃提供了
我們確定採礦租賃啓動費用爲$
待售的資產
在 第二, 在滿足12月 Tranche A 支付之後,向 Tranche b 票據的持有者支付一個
等同於並滿足攤銷贖回價格(如 Tranche b 票據中定義)在2025年1月2日到期的總金額(“ 的季度 2024, 公司已承諾計劃出售位於內華達州里昂縣的工業和商業土地。該餘額爲$
在 首先 的季度 2024, 公司承諾出售Comstock Northern Exploration LLC的會員權益,包括礦產資源權。截止至 2024年9月30日待出售的資產包括餘額爲$的礦產資源權
在 2023 年 3 月, 該公司收購了高級用水權 (
該公司的待售資產在 2024年9月30日 和 2023年12月31日的合併基本報表及附註中 包括以下內容:
待售資產 | 資產組 | 2024年9月30日 | 2023年12月31日 | ||||||
礦產權 | 礦產權和財產 | $ | $ | ||||||
水權 | 礦產權和財產 | ||||||||
土地 | 淨資產、廠房和設備 | ||||||||
出售總資產 | $ | $ |
注意 5 無形資產
該公司的無形資產包括在 2024年9月30日 和 2023年12月31日的合併基本報表及附註中 以下內容:
預計 | |||||||||||
經濟生活 | |||||||||||
描述 | (以年爲單位) | 2024年9月30日 | 2023年12月31日 | ||||||||
發達的技術 | $ | $ | |||||||||
許可證協議 | |||||||||||
客戶協議 | |||||||||||
分銷協議 | |||||||||||
商標 | |||||||||||
累計攤銷 | ( | ) | ( | ) | |||||||
無形資產,淨值 | $ | $ |
截至目前的累計攤銷 2024年9月30日 和 2023年12月31日的合併基本報表及附註中 包括以下內容:
2024年9月30日 | 2023年12月31日 | |||||||
發達的技術 | $ | $ | ||||||
許可證協議 | ||||||||
客戶協議 | ||||||||
分銷協議 | ||||||||
商標 | ||||||||
累計攤銷 | $ | $ |
未來的最低攤銷費用如下: 2024年9月30日:
2024年剩餘時間 | $ | |||
2025 | ||||
2026 | ||||
2027 | ||||
2028 | ||||
之後 | ||||
$ |
無形資產餘額的變化如下: 九個月期間-個月結束 2024年9月30日 和 2023如下所示:
截至2023年12月31日 | 新增 | 減值 | 攤銷 | 截至2024年9月30日 | ||||||||||||||||
無形資產 | $ | $ | $ | ( | ) | $ | — | $ | ||||||||||||
累計攤銷 | ( | ) | — | ( | ) | ( | ) | |||||||||||||
無形資產和商譽總額 | $ | $ | $ | ( | ) | $ | ( | ) | $ |
截至2022年12月31日 | 新增 | 減值 | 攤銷 | 截至2023年9月30日 | ||||||||||||||||
無形資產 | $ | $ | $ | $ | — | $ | ||||||||||||||
累計攤銷 | ( | ) | — | — | ( | ) | ( | ) | ||||||||||||
總無形資產和商譽 | $ | $ | $ | $ | ( | ) | $ |
在 , 在滿足1月 Tranche b 支付之後,向持有者支付,直到根據票據第2(e)條款支付的剩餘
未償本金和應計未支付的利息全額支付(“ 的季度 2024, 我們確定,我們重新處理清潔和可重複使用材料的能力確實需要使用我們獲得的先進科技。 不 因此,公司對與我們金屬期貨部門相關的開發科技的無形資產淨餘額記錄了$的減值。 2021.此外,我們對與商標相關的無形資產進行了$的減值。
該公司是
在 2023年12月28日, 公司與Flux Photon Corporation(「FPC」)簽署了修改協議( “2023 「FPC資產購買協議修訂」)以修訂2021年9月7日簽署的某項資產購買協議, 和2021年12月10日修訂的 ( 經修訂後稱爲「FPC資產購買協議」)。根據FPC資產購買協議,公司收購了某些知識產權和相關的光催化實驗室設備(「FPC資產」)。原始購買價格包括對FPC資產的應付款項爲$
注意 6 應計費用和其他負債
應計費用及其他負債爲 2024年9月30日 和 2023年12月31日的合併基本報表及附註中 包括以下內容:
2024年9月30日 | 2023年12月31日 | |||||||
應計利息費用 | $ | $ | ||||||
應計工資及相關費用 | ||||||||
應計激勵薪酬 | ||||||||
應計供應商負債 | ||||||||
應付給研究與開發公司的款項 | ||||||||
LINICO 合同承諾 | ||||||||
其他應計費用 | ||||||||
Total accrued expenses | $ | $ |
在 2022年7月1日, 公司的董事會批准了一項基於業績目標的現金激勵薪酬計劃,供公司的高管使用,潛在的業績獎金可達
截至 2024年9月30日,對一家研發公司的短期應付款爲$
截至 2024年9月30日,LINICO的合同承諾爲$
注意 7 租賃
公司在簡明合併資產負債表上記錄的以下租賃餘額如下:
租賃資產和負債 | 分類 | 2024年9月30日 | 2023年12月31日 | ||||||
融資租賃使用權資產 | 融資租賃 - 使用資產的權利, 淨值 | $ | $ | ||||||
經營租賃使用權資產 | 經營租賃 - 使用資產的權利, 淨值 | ||||||||
使用權資產總額 | $ | $ | |||||||
運營租賃負債 - 當前 | 應計費用和其他負債 | $ | $ | ||||||
經營租賃負債-長期 | 經營租賃 - 使用權租賃負債 | ||||||||
融資租賃負債,當前部分 | 融資租賃 - 使用權租賃負債 | ||||||||
租賃負債總額 | $ | $ |
三個月結束 | 截至九個月 | |||||||||||||||
2024年9月30日 | 2023年9月30日 | 2024年9月30日 | 2023年9月30日 | |||||||||||||
融資租賃成本: | ||||||||||||||||
使用權資產的攤銷 | $ | $ | $ | $ | ||||||||||||
租賃負債的利息 | ||||||||||||||||
運營租賃成本 | ||||||||||||||||
總租賃成本 | $ | $ | $ | $ | ||||||||||||
其他信息 | ||||||||||||||||
來自經營租賃的經營現金流 | $ | $ | $ | $ | ||||||||||||
融資租賃的現金流 | $ | $ | $ | $ |
2024年9月30日 | 2023年9月30日 | |||||||
融資租賃的加權平均剩餘租賃期限 | ||||||||
經營租賃的加權平均剩餘租賃期限 | ||||||||
加權平均折現率 - 融資租賃 | % | % | ||||||
加權平均折現率 - 經營租賃 | % | % |
融資租賃
設施租賃
在 九個月期間-個月結束 截至2023年9月30日,公司收到$
在 2023年4月21日, 公司與ABTC簽署了一份前期租賃協議,允許ABTC在銷售完成之前使用該設施。租賃協議的條款於 2023年4月21日, 並於 2023年6月30日 結束,ABTC每月支付$
資產購買協議
在 2021年4月16日, 公司與ASt簽署了一項資產收購協議(「ASt資產收購協議」)。同時,爲了簽署ASt資產收購協議,公司與ASt還簽署了ASt許可協議(見註釋 5, 無形資產)。ASt許可協議規定在此設施及其中所有機械和設備的全面使用,直至 2022年4月30日。 根據ASt資產收購協議,公司同意以$
根據協議購買的所有資產都用於研發活動。所獲得的機械和設備是爲特定目的而建,正在用於處理木質生物質轉化爲可用於生產紙製品和燃料的中間材料所需科技的開發測試。這些資產已經 無 具有替代的未來用途。購買的設施是位於威斯康星州沃索的工業物業,具有替代用途。自合同生效以來,合同下的付款根據其相對獨立的估計公允價值分配給合同的租賃和非租賃元件。
在 2024年4月2日, 公司與ASt修改了ASt許可協議和ASt資產購買協議(「許可協議修訂」),以修訂根據ASt許可協議和ASt資產購買協議支付的對價,使得未來的某些或潛在的所有義務將以公司的普通股票支付。根據ASt資產購買協議支付的對價被以下內容替代:
• | 在 5 在許可證協議修正的生效日期後的業務日內,公司將向 |
• | 開啓或之前 2025年4月30日, 公司將向aST支付等於美元的款項 | |
• | 該公司將支付 aSt $ |
海伍德礦石收購與租賃協議
在 2022年4月7日 ( 2022年11月7日 公司與Decommissioning Services LLC(「去委託服務」)簽訂了購買協議(「海伍德購買協議」),以總價$購買海伍德採石場和工業物業(「海伍德物業」)
海伍德購買協議的結束取決於股份的清算和退役服務公司收到全額購買價。公司同意在股份銷售收益加上存入資金少於$ 百萬時彌補任何缺口,退役服務公司同意退還任何超出部分。此合同股票補償已作爲衍生品記錄在合併資產負債表上(見附註 公平價值計量)。
在 2024年4月2日, 公司與退役服務公司修改了海伍德購買協議,將關閉的最晚日期延長至 2025年6月30日, 並將購買價格提高到 $
在執行海伍德購買協議與交易完成之間的期間,退役服務公司將海伍德物業租賃給康斯托克勘探,作爲 無 額外的對價,提供獨佔權以訪問、使用或轉租海伍德物業的部分區域,以獲得許可證併爲其預期用途準備該物業,包括改進。如果交易完成的條件在 不 2025年6月30日之前得到滿足, 海伍德購買協議將終止,退役服務公司將保留總計$ 的租金,以用於海伍德物業。在此租賃期間,康斯托克勘探將向退役服務公司支付
經營租賃
截至 三 和 九個月期間-個月結束 2024年9月30日短期經營租賃費用爲$
在 2023年8月15日, 公司作爲承租方,與Sierra Clean Processing LLC(「SCP」)簽署了一份房地產業和建築租賃協議(「SCP建築租賃」),租賃位於內華達州銀泉的房地產及其改建。SCP建築租賃的期限爲
在 2024年7月1日, 公司作爲承租方,與SCP簽署了一份房地產業和建築租賃協議(「SCP房地產業和建築租賃」),租賃位於內華達州銀泉市的房地產及其改進設施。SCP房地產業和建築租賃的期限爲
公司在財務年度內需支付的最低租賃付款,包括公司的運營租賃和融資租賃如下:
經營租賃 | 融資租賃 | |||||||
在2024年的剩餘時間裏 | $ | $ | ||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
之後 | ||||||||
總租賃付款 | ||||||||
減:隱含利息 | ( | ) | ||||||
租賃負債的現值 | $ | $ |
經營租賃收入
截至 三-個月結束 2024年9月30日 和 2023從我們出租給他人的土地和建築物的經營租賃收入總計$
來自他人的運營租賃的最低租賃付款如下:
在2024年的剩餘時間裏 | $ | |||
2025 | ||||
2026 | ||||
2027 | ||||
2028 | ||||
之後 | ||||
最低租賃收入總計 | $ |
注意 8 債務義務
債務爲 2024年9月30日 和 2023年12月31日的合併基本報表及附註中 包括以下內容:
2024年9月30日 | 2023年12月31日 | |||||||
GHF擔保本票 - %利率,到期 | $ | $ | ||||||
Alvin基金有限責任公司本票 - %利率,到期 | ||||||||
Alvin 基金 LLC 本票 - % 利息,到期 | ||||||||
2023 Kips Bay 無擔保可轉換本票 - % 利息,到期 | ||||||||
2024 Kips Bay 無擔保可轉換本票 - % 利息,到期 | ||||||||
AQMS應付票據 - % 隱含利率,到期 | ||||||||
總債務 | ||||||||
減:債務折扣和發行成本 | ( | ) | ( | ) | ||||
總債務,扣除折扣 | ||||||||
減:流動負債 | ( | ) | ( | ) | ||||
長期債務,扣除折扣和發行成本後 | $ | $ |
GHF公司無擔保本票
在 2021年12月15日, 公司與GHF, Inc.("GHF")簽署了一份長期的 promissory note(「GHF Note」), 2021 金額爲$
Alvin 基金備註
在 2022年10月25日, 公司簽署了一個短期本票(“阿爾文基金 2022 本票”)與阿爾文基金有限責任公司(「阿爾文基金」),本金金額爲$
在 2023年11月12日, 公司與Alvin基金簽署了一份開空票據(“Alvin基金 2023 票據”),本金金額爲$
Leviston資源公司 無擔保可轉換票據
在 2024年7月19日, 公司簽訂了一份證券購買協議(“2024 「Leviston協議」)與Leviston Resources LLC("Leviston")簽署了一份金額爲$的無擔保可轉換票據(「Leviston票據」),
根據協議,於 2024年8月6日, 公司發行了總計
Leviston票據包含基於交易價格和定義的測量週期內的交易量百分比的轉換條款。這些條款要求將轉換選項分拆爲衍生工具。截止到 2024年7月19日, 公司分拆了轉換特徵,並記錄了一項衍生負債,附帶相應的債務折扣增加$
截至 2024年9月30日該公司交付了
在債務轉換中確認的損失如下:九個月期間-個月結束 2024年9月30日計算如下:
本金轉換 | $ | |||
與本金轉換相關的債務折扣 | ( | ) | ||
應付的應計利息轉換 | ||||
衍生負債轉換 | ||||
總計 | ||||
發行股票的公平價值 | ||||
債務轉換損失 | $ | ( | ) |
Kips Bay Select LP 無擔保 2023 可轉換票據
在 2023年12月27日, 公司與Kips Bay Select LP("Kips Bay")簽署了一份無擔保可轉換 promissory note( "2023 Kips Bay Note"),本金爲$
本 2023 Kips Bay的通知要求公司支付一筆貸款承諾費,金額爲$
本 2023 Kips Bay Note包含基於規定計量週期的交易價格和交易量百分比的轉換條款。條款要求將轉換選項分拆爲衍生品。 截至 2024年9月30日,以及 2023年12月31日的合併基本報表及附註中,公司與此轉換選項相關的衍生負債餘額爲$
在 2024年7月19日, 公司贖回了$
截至 2024年9月30日公司交付了
本金轉換 | $ | |||
與本金轉換相關的債務折扣 | ( | ) | ||
應付的應計利息轉換 | ||||
衍生負債轉換 | ||||
總計 | ||||
發行股票的公平價值 | ||||
債務轉換損失 | $ | ( | ) |
Kips Bay Select LP 無擔保 2024 可轉換票據
在 2024年9月19日, 公司簽訂了證券購買協議(“2024 Kips Bay協議)以獲得一張無擔保可轉債的本票( “2024 Kips Bay本票)與Kips Bay,面額爲$
本 2024 Kips Bay Note包含基於定義測量期間的交易價格和交易量百分比的轉換條款。條款要求將轉換選項作爲衍生品進行分拆。至 2024年9月19日, 公司已將轉換特徵分拆,並記錄了一項衍生負債,同時增加了相應的債務折扣$
Aqua Metals Inc. 注意事項
在 2023年12月19日, Comstock Inc.、LINICO 和 Aqua Metals Inc.("AQMS")簽訂了一項股票回購協議,公司同意購買,AQMS 同意賣出其在 LINICO 的股份,價格爲$
Ionic Ventures LLC 無擔保可轉換債券
在 2022年12月16日, 公司與Ionic Ventures, LLC(「Ionic」)簽訂了一份無擔保可轉換票據(「Ionic Note」)的證券購買協議,票據面值爲$
截至 2023年9月30日, 公司交付了
注意 9 承諾和或有事項
COMSTOCk礦物財產租賃支付
我們租賃某些礦權和物業,租約在不同日期到期。 2040. 根據這些現有租約,未來最低年度租賃支付,包括權利金和租金,金額如下: 2024年9月30日:
年份 | 租賃 | |||
2024年剩餘時間 | $ | |||
2025 | ||||
2026 | ||||
2027 | ||||
2028 | ||||
之後 | ||||
最低年度租賃付款總額 | $ |
我們在某些礦產資產和租賃上有最低的特許權使用費義務。對於大多數礦產資產和租賃,我們的特許權使用費義務區間與生產開始的程度有關。這些特許權使用費爲
我們的採礦和勘探活動受到各種法律法規的約束,這些法律法規專門針對環境保護。這些法律法規不斷變化,通常變得更加嚴格。公司相信其運營在所有重大方面均符合適用的法律法規。公司已經進行了,並預計未來還會進行支出以遵守這些法律法規,但無法預測未來支出的全部金額。
在 2023年10月11日, ( 2023年12月22日, 公司與RenFuel簽署了獨家許可協議,根據該協議,RenFuel授予公司全資子公司Comstock Fuels Corporation(「Comstock Fuels」)在北美、中美和南美使用RenFuel的專利催化酯化及相關技術的獨家許可,以換取根據合格產品的生產和銷售支付的持續特許權使用費。公司需要每季度至少花費$
對許可科技的投資
在 2024年3月1日, Comstock與開發者簽訂了DSA,以推進Comstock子公司擁有的技術,這些技術包含開發者擁有的知識產權(「開發者知識產權」)的應用。DSA的範圍涉及研究和開發,以驗證Comstock知識產權和開發者知識產權的集成應用,包括僅涉及開發者知識產權的基礎應用。DSA要求工作分階段完成, 首先 階段(“階段 1”)由 三 項目組成, 九個月期間 months at a cost to Comstock of $
在 2024年3月1日, 開發者授予公司一項獨佔許可,以使用開發者的知識產權生產燃料(「燃料許可證」)和水(「水許可證」,與燃料許可證合稱爲「Comstock許可證協議」),以換取基於合格產品生產和銷售的版稅費用。Comstock許可證協議還要求公司支付最低版稅費用,金額爲$
其他
每年,公司向每位獨立董事支付總額爲$
我們不時會涉及在正常業務過程中產生的索賠和訴訟。 無 我們目前有一些事項待決,我們預計這些事項將對我們的業務、運營成果、財務控制項或現金流產生重大不利影響。
注意 10 股本
發行註冊普通股
在 2024年8月6日, 根據 2024 Leviston協議,公司向Leviston發行
在 2024年3月25日, 公司與ClearThink Capital Partners LLC(「ClearThink」)簽訂了股權購買協議(“2024 「ClearThink協議」)以提供並出售公司受限制和註冊的普通股,整體發行價格最高可達$
在 2024年1月16日, 公司發行了額外的
在 2023年2月13日, 公司與Leviston簽訂了一份股權購買協議(“2023 「Leviston銷售協議」),以提供和出售註冊普通股,總髮行價格最高可達$
在 2022年6月21日, 公司與Tysadco Partners, LLC(「Tysadco」)簽訂了一份股權購買協議( “2022 「Tysadco銷售協議」)以提供和出售註冊的普通股,累計發行價格最高可達$
發行未經註冊的普通股股票
在 2024, 公司發行了
在 2024年9月3日, 公司向其董事發行了
在 2024年8月16日, 公司向其董事發行了
在 2024年8月6日, 根據 2024 Leviston協議,公司向Leviston資源有限責任公司(「Leviston」)發行了
在 2024年5月22日, 公司向其董事發行了
在 2024年4月19日, 公司向其董事發行了
在 2024年4月19日, 公司向其董事發行了
在 2024年4月11日, 根據與海伍德租賃相關的修訂,公司發佈了
在 2024年4月10日, 根據ASt許可協議修正案,公司向ASt發行了
在 2024年3月27日, 公司向其董事發行了
在 2024年1月11日, 公司向其董事發行了
在 2023年8月25日, 公司向其董事發行了
在 2023年2月14日, 公司向其董事發行了
非控制性權益
在 2021年12月30日, 公司與LINICO達成協議,購買額外的LINICO股份,使公司擁有大約
在 2023年3月1日, Comstock Metals Corporation(「Comstock Metals」)是本公司的全資子公司,已與富圖納託·維拉馬尼亞博士簽訂了僱傭協議,擔任Comstock Metals的總裁。根據該協議,維拉馬尼亞博士將獲得
For the year ended December 31, 2023, the Company recognized share-based compensation of $
Treasury Stock
At December 31, 2023, treasury stock included
Warrants
Outstanding warrants at September 30, 2024 and December 31, 2023 are as follows:
Number of Warrants | Exercise Price | Expiration Date | ||||||||
GHF, Inc. | $ | | ||||||||
GHF, Inc. | $ | | ||||||||
GHF, Inc. | $ | | ||||||||
Alvin Fund LLC | $ | | ||||||||
Total Outstanding warrants |
During the nine-months ended September 30, 2024 and 2023,
NOTE 11 FAIR VALUE MEASUREMENTS
The following table presents our assets and liabilities measured at fair value on a recurring basis at September 30, 2024:
Fair Value Measurements at | ||||||||||||||||
September 30, 2024 | ||||||||||||||||
Quoted | Significant | |||||||||||||||
Prices | Other | Significant | ||||||||||||||
in Active | Observable | Unobservable | ||||||||||||||
Markets | Inputs | Inputs | ||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Haywood derivative | $ | $ | $ | $ | ||||||||||||
Stock held by GenMat advances (see Note 3) | ||||||||||||||||
Total assets measured at fair value | $ | $ | $ | $ | ||||||||||||
Liabilities: | ||||||||||||||||
2023 Kips Bay convertible debt derivative | $ | $ | $ | $ | ||||||||||||
2024 Kips Bay convertible debt derivative | ||||||||||||||||
Total liabilities measured at fair value | $ | $ | $ | $ |
Fair Value Measurements at | ||||||||||||||||
December 31, 2023 | ||||||||||||||||
Quoted | Significant | |||||||||||||||
Prices | Other | Significant | ||||||||||||||
in Active | Observable | Unobservable | ||||||||||||||
Markets | Inputs | Inputs | ||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Liabilities: | ||||||||||||||||
2023 Kips Bay convertible debt derivative | $ | $ | $ | $ | ||||||||||||
LINICO related derivative | ||||||||||||||||
Haywood derivative | ||||||||||||||||
GenMat derivative | ||||||||||||||||
Total liabilities measured at fair value | $ | $ | $ | $ |
Changes in the assets and liabilities that include level 3 inputs the following:
• | During the three and nine-months ended September 30, 2023, the Company recognized a gain of $ |
• | During the three and nine-months ended September 30, 2024, the Company recognized a gain of $ | |
• | During the three and nine-months ended September 30, 2024, the Company recognized a gain of $ |
• | During the three and nine-months ended September 30, 2024, the Company recognized a loss of $ |
Following is a description of the valuation methodologies used for the Company's financial instruments measured at fair value on a recurring basis as well as the general classification of such instruments pursuant to the valuation hierarchy.
Derivatives
The Company has several derivatives associated with its common stock including make-whole commitments and debt conversion options. The following tables presents changes in our derivative liabilities for the three and nine-months ended September 30, 2024 and 2023, at fair value:
For the Three-Months Ended September 30, 2024 | ||||||||||||||||||||
As of June 30, 2024 | (Additions) Deductions | Change in Fair Value | Payments for Decrease in Contractual Stock Consideration | As of September 30, 2024 | ||||||||||||||||
2023 Kips Bay convertible debt derivative | $ | ( | ) | $ | $ | $ | $ | ( | ) | |||||||||||
Leviston convertible debt derivative | ( | ) | ||||||||||||||||||
2024 Kips Bay convertible debt derivative | ( | ) | ( | ) | ( | ) | ||||||||||||||
LINICO related derivative | ( | ) | ||||||||||||||||||
Haywood derivative | ( | ) | ||||||||||||||||||
Total derivative assets and liabilities measured at fair value | $ | ( | ) | $ | $ | $ | $ | ( | ) |
For the Nine-Months Ended September 30, 2024 | ||||||||||||||||||||
As of December 31, 2023 | (Additions) Deductions | Change in Fair Value | Payments for Decrease in Contractual Stock Consideration | As of September 30, 2024 | ||||||||||||||||
2023 Kips Bay convertible debt derivative | $ | ( | ) | $ | ( | ) | $ | $ | $ | ( | ) | |||||||||
Leviston convertible debt derivative | ( | ) | ||||||||||||||||||
2024 Kips Bay convertible debt derivative | ( | ) | ( | ) | ( | ) | ||||||||||||||
LINICO related derivative | ( | ) | ( | ) | ||||||||||||||||
Haywood derivative | ( | ) | ||||||||||||||||||
GenMat derivative | ( | ) | ( | ) | ( | ) | ||||||||||||||
Total derivative assets and liabilities measured at fair value | $ | ( | ) | $ | $ | $ | $ | ( | ) |
For the Three-Months Ended September 30, 2023 | ||||||||||||||||||||
As of June 30, 2023 | (Additions) Deductions | Change in Fair Value | Payments for Decrease in Contractual Stock Consideration | As of September 30, 2023 | ||||||||||||||||
Ionic convertible debt derivative | $ | ( | ) | $ | $ | $ | $ | |||||||||||||
LINICO related derivative | ( | ) | ( | ) | ( | ) | ||||||||||||||
Haywood derivative | ( | ) | ( | ) | ( | ) | ||||||||||||||
GenMat derivative | ( | ) | ( | ) | ( | ) | ||||||||||||||
Total derivative liabilities measured at fair value | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) |
For the Nine-Months Ended September 30, 2023 | ||||||||||||||||||||
As of December 31, 2022 | (Additions) Deductions | Change in Fair Value | Payments for Decrease in Contractual Stock Consideration | As of September 30, 2023 | ||||||||||||||||
Ionic convertible debt derivative | $ | ( | ) | $ | $ | ( | ) | $ | $ | |||||||||||
LINICO related derivative | ( | ) | ( | ) | ||||||||||||||||
Haywood derivative | ( | ) | ( | ) | ||||||||||||||||
GenMat derivative | ( | ) | ( | ) | ||||||||||||||||
Total derivative liabilities measured at fair value | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) |
At September 30, 2024, December 31, 2023 and September 30, 2023, the fair value of the LINICO, the Haywood Property, and GenMat derivatives was based on a trading price of the Company’s shares of $
2023 Kips Bay Select LP Conversion Option
On December 27, 2023, the Company recorded a derivative liability on the consolidated balance sheets in connection with the 2023 Kips Bay Note. On that date, the $
2024 Kips Bay Select LP Conversion Option
On September 19, 2024, the Company recorded a derivative liability on the condensed consolidated balance sheets in connection with the 2024 Kips Bay Note (see Note 8, Debt Obligations). On that date, the $
Leviston Resources LLC Conversion Option
On July 19, 2024, the Company recorded a derivative liability on the condensed consolidated balance sheets in connection with the Leviston Note (see Note 8, Debt Obligations). On that date, the $
GenMat Derivative Instrument
On June 24, 2021, the Company recorded a derivative asset on the condensed consolidated balance sheets in connection with the GenMat Membership Interest Purchase Agreement. On that date, the $
Haywood Derivative Instrument
On April 7, 2022, we recorded a derivative asset on the consolidated balance sheets in connection with the Haywood acquisition and lease from Haywood (see Note 7, Leases). On that date, the $
LINICO Derivative Instrument
On December 30, 2021, the Company entered into an agreement to acquire
Ionic Ventures, LLC Conversion Option
On December 16, 2022, we recorded a derivative liability on the consolidated balance sheets in connection with the Ionic Note. During the three and nine-months ended September 30, 2023, the Company recorded a gain of $
American Battery Technology Investment
In connection with the sale of the Facility, the Company received
Date | Description | Fair Value | Beginning Stock Price | Volatility | Risk Free Rate | ||||||||||||
April 6, 2023 | 10 million ABTC shares (make-whole provision $6.6 million to $7.6 million) | $ | $ | % | % | ||||||||||||
April 21, 2023 | Change in fair value of the 10 million ABTC shares for a change in make-whole commitment | $ | $ | % | % | ||||||||||||
May 12, 2023 | 1 million ABTC shares | $ | $ | % | % |
Other Financial Instruments
At September 30, 2024, the carrying amount of cash and cash equivalents, notes receivable and debt carried at amortized costs, approximates fair value because of the short-term maturity of these financial instruments.
NOTE 12 NET INCOME (LOSS) PER COMMON SHARE
Three-Months Ended | Nine-Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Numerator: | ||||||||||||||||
Net income (loss) attributed to Comstock Inc. | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Denominator: | ||||||||||||||||
Basic weighted average shares outstanding | ||||||||||||||||
Incremental shares | ||||||||||||||||
Diluted weighted average shares outstanding | ||||||||||||||||
Net income (loss) per common shares: | ||||||||||||||||
Basic EPS | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Diluted EPS | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Net income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding during the period. For the three and nine-months ended September 30, 2024, all common stock equivalent shares, including warrants to purchase common stocks, stock options or awards and a conversion option on a convertible debt, are antidilutive. For the three and nine-months ended September 30, 2023, the calculation of incremental shares for diluted weighted average shares outstanding did not include the following items due to their anti-dilutive impact:
For the three and nine-months ended September 30, 2023, the weighted average number of shares outstanding, for the purpose of calculating earnings per share, were reduced by treasury shares of
NOTE 13 SEGMENT REPORTING
We have the following segments and reporting units: Fuels, Metals, Mining, Strategic Investments and Corporate. The Company’s goal is to accelerate the commercialization of decarbonizing technologies. Once a technology achieves a certain technology readiness or a justifiable critical mass or market distinction, we strategically plan its commercialization and dedicate resources toward that end. Until then, it is managed with corporate resources.
Summarized financial information relating to our reportable segments is provided below. In 2023, our chief operating decision maker (“CODM”) reassessed the Company's performance and allocation of resources. Based on this reassessment, the Company's segments were determined to be Fuels, Metals, Mining, Strategic Investments and Corporate. Previously, our CODM assessed performance and allocation of resources to
business segments and reporting units including Renewable Energy, Mining and Strategic Investments. Certain amounts have been reclassified to conform to the current period presentation on a comparable basis. The Company plans, executes and monitors each reporting segment and has dedicated personnel responsible for each reportable segment. Our Fuels Segment represents our lignocellulosic biomass into biointermediates for refining into renewable fuels. Our Metals Segment represents our recycling of electrification products. Our Mining Segment includes our gold and silver mining assets and related real estate. Our Strategic Investments Segment includes our investments in GenMat, Green Li-ion and SSOF and our Corporate Segment includes all other assets and general corporate costs. Mining revenue is from leasing mineral claims and other real estate.
Three-Months Ended | ||||||||||||||||||||||||
September 30, 2024 | Fuels | Metals | Mining | Strategic Investments | Corporate / Other | Total | ||||||||||||||||||
Revenue | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Depreciation and amortization | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Impairment of intangible assets | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Impairment of properties, plant and equipment | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Loss from operations | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Change in fair value of derivative instruments | $ | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||
Total other income (expense), net | $ | ( | ) | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||||
Net income (loss) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||
Capital Expenditures | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total Assets as of September 30, 2024 | $ | $ | $ | $ | $ | $ |
Three-Months Ended | ||||||||||||||||||||||||
September 30, 2023 | Fuels | Metals | Mining | Strategic Investments | Corporate / Other | Total | ||||||||||||||||||
Revenue | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Depreciation and amortization | $ | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||
Income (loss) from operations | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | $ | ||||||||||||
Change in fair value of derivative instruments | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||||||||
Total other income (expense), net | $ | $ | $ | ( | ) | $ | $ | $ | ||||||||||||||||
Net income (loss) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||
Capital Expenditures | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total Assets as of December 31, 2023 | $ | $ | $ | $ | $ | $ |
Nine-Months Ended | ||||||||||||||||||||||||
September 30, 2024 | Fuels | Metals | Mining | Strategic Investments | Corporate / Other | Total | ||||||||||||||||||
Revenue | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Depreciation and amortization | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Impairment of intangible assets | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Impairment of properties, plant and equipment | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Income (loss) from operations | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | ||||||||
Change in fair value of derivative instruments | $ | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||
Total other income (expense), net | $ | ( | ) | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||||
Net income (loss) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||
Capital Expenditures | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total Assets as of September 30, 2024 | $ | $ | $ | $ | $ | $ |
Nine-Months Ended | ||||||||||||||||||||||||
September 30, 2023 | Fuels | Metals | Mining | Strategic Investments | Corporate / Other | Total | ||||||||||||||||||
Revenue | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Depreciation and amortization | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Income (loss) from operations | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||||
Change in fair value of derivative instruments | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||||||||
Total other income (expense), net | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||
Net income (loss) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | $ | ||||||||||||
Capital Expenditures | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total Assets as of December 31, 2023 | $ | $ | $ | $ | $ | $ |
NOTE 14 RELATED PARTY TRANSACTIONS
The following related party transactions occurred during the nine-months ended September 30, 2024 and 2023.
TRANSACTIONS INVOLVING SIERRA SPRINGS OPPORTUNITY FUND
On December 29, 2023, the Company and SSOF agreed to convert total advances into
The Company's executive chairman and chief executive officer co-founded SSOF and SSE and serves as the chief executive officer of SSOF and as an executive of SSE along with a diverse team of qualified financial, capital markets, real estate and operational professionals that together govern, lead, and manage SSOF and SSE. The $
SSOF is a qualified opportunity zone fund, which owns
TRANSACTIONS INVOLVING FLUX PHOTON CORPORATION
On September 7, 2021, the Company entered into the FPC Asset Purchase Agreement with FPC to acquire the FPC Assets. The purchase price payable for the FPC Assets was
On December 28, 2023, the Company entered into the 2023 FPC Asset Purchase Agreement Amendment to reduce the purchase price payable from the remaining purchase price of $
In 2021, LINICO, a majority-owned subsidiary of the Company, had a finance lease, as lessee, with AQMS, for the Facility. The chief financial officer of AQMS was on the Company's board of directors until he resigned effective as of April 5, 2023. On April 26, 2023, the Company closed on the purchase of AQMT, a subsidiary of AQMS, whose sole asset was the Facility, and paid $
PURCHASE OF METAL RECYCLING FURNACE
On December 15, 2023, the Company and Dr. Fortunato Villamagna, president of Comstock Metals, signed an agreement in which Dr. Villamagna agreed to contribute a metal recycling furnace to the Company. The Company agreed to make payments for the metal recycling furnace totaling $
OTHER
Sierra Clean Processing LLC, a wholly owned subsidiary of SSOF, owns the building at 600 Lake Avenue, Silver Springs, Nevada which the Company entered into the Building Lease on August 15, 2023 and a Real Estate and Building Lease on July 1, 2024 (see Note 7, Leases). The Company's chief executive officer is an executive and director of Sierra Clean Processing LLC.
On May 17, 2024, the chief executive officer purchased
NOTE 15 SUBSEQUENT EVENTS
On October 1, 2024, pursuant to the 2023 Kips Bay Note, the Company issued
In October 2024, pursuant to the 2024 Kips Bay Note, the Company issued
On October 1, 2024, the Company executed an Exclusive License Agreement (“ELA”) and a Cooperative Research and Development Agreement (“CRADA”) with Alliance for Sustainable Energy LLC (“Alliance”), the managing and operating contractor of the U.S. Department of Energy’s (“DOE”) National Renewable Energy Laboratory (“NREL”), involving technologies developed by NREL and the Massachusetts Institute of Technology (“MIT”) for conversion of lignocellulosic biomass into aromatic sustainable aviation fuel (“SAF”). NREL and MIT are separately party to an Inter-Institutional Agreement that appointed NREL the exclusive right to license NREL’s and MIT’s joint intellectual properties. The ELA provides the Company with the exclusive worldwide right to use the NREL technologies in the processing and conversion of seed plants to renewable fuels and renewable fuel feedstocks, subject to limited geographic restrictions, in exchange for royalty and other fees linked to sales of licensed products and sublicensing. The terms of the CRADA involve a three-year scope of work to jointly develop an integrated process based on the Company's existing process and the NREL technologies for the solvocatalytic refining of woody biomass into aromatic SAF and other renewable fuels. The Company will fund the research and contribute staff, equipment, and use of its pilot facility in Wisconsin and the joint work will be supported by NREL, MIT, and Washington State University.
On October 1, 2024, the Company entered into a binding letter agreement (the “Letter Agreement” with Deep Interstellar Research LLC (“DIR”) and Quantum Generative Materials LLC (“GenMat”) to (i) separate GenMat’s materials development activities (“Materials Science Business”) and space development activities (“Space Business”); (ii) assign all assets, operations, and liabilities relating to the Materials Business to GenMat; (iii) assign all assets, operations, and liabilities relating to the Space Business to GenMat Development LLC; (iv) exchange
On October 7, 2024, pursuant to the 2024 Kips Bay Note, the Company issued Kips Bay
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis provides information that management believes is relevant to an assessment and understanding of our condensed consolidated financial condition and results of operations. This discussion should be read in conjunction with the Condensed Consolidated Financial Statements, footnotes and the risk factors included herewith and herein.
OVERVIEW
Comstock innovates and commercializes technologies that enable systemic decarbonization, primarily by enabling the extraction and conversion of under-utilized natural resources into renewable energy and related products that integrate into existing global supply chains, facilitate the clean energy transition that reduce reliance on fossil fuels and contribute to net zero mobility.
Our goal is to Accelerate the Commercialization of Hard Technologies for the Energy Transition primarily in renewable fuels, electrification metals, and artificial intelligence enabled mineral and materials development. Our strategic plan is based on accelerating the rate that our system innovates, enables and commercializes material science solutions that use our technologies to reduce reliance on long cycle fossil fuels, shift to short cycle fuels, and lead and support the adoption and growth of a profitable, balanced short cycle ecosystem that continuously offsets, recycles, and/or neutralizes carbon emissions. We are pushing the boundaries in technology development and sustainability by leveraging our systems unique design, our teams’ unique skills, our diverse technology portfolio, and our frontier research networks toward achieving breakthrough innovations that deliver meaningful positive impact across communities.
Our approach integrates frontier scientific discovery with our systemic management practices into One System aligned and capable to meet the demand for commercial-ready energy transition solutions. Our operations primarily involve the innovation, development, and commercialization of our intellectual properties and related assets, with integrated teams focused on each core function in dedicated lines of business organized to address high impact decarbonization targets. We innovate and develop technologies to achieve significant growth on industry-wide scales by creating financial and other incentives for rapid integration into and across entire industries. Our commercialization plans are designed to facilitate that result, such as by selling process solutions, engineering services and technology licenses that enable clients to use their capital, infrastructure, and other resources to maximize the rate and scale of commercial adoption.
We are currently commercializing pioneering intellectual properties for refining lignocellulosic (woody) biomass into renewable replacements for fossil crude at remarkably high yields, recycling increasingly scarce electrification metals from end-of-life photovoltaics and other electronic devices, and advanced physics based artificial intelligence for precision mining and materials discovery. We make, own and manage investments in related assets to support our businesses, including multiple, existing minority equity positions and partnerships in strategic technology developers, a renewable fuels demonstration facility in Wisconsin, a metals recycling demonstration facility in Nevada, and direct investments in northern Nevada real estate comprised of industrial and commercial properties, strategic water rights and about twelve square miles of mining claims and related surface parcels with measured and indicated mineral resources containing 605,000 ounces of gold and 5,880,000 ounces of silver, and inferred mineral resources containing an additional 297,000 ounces of gold and 2,572,000 ounces of silver.
Our partnerships include licensing and development agreements with, for example, RenFuel and the Alliance for Sustainable Energy LLC (“Alliance”), the managing and operating contractor of the U.S. Department of Energy’s (“DOE”) and the National Renewable Energy Laboratory (“NREL”), involving technologies developed by NREL and the Massachusetts Institute of Technology (“MIT”) (and collectively, the NREL Technologies).
RenFuel’s license is for the expansive use of their technologies and for the continued development and commercialization of advanced applications of RenFuel’s and Comstock’s complimentary technologies and with an unaffiliated research and development company for purposes of conducting certain research and development work for increasing fuel yields, reducing carbon impact and lowering costs.
NREL’s license represents an exclusive worldwide right to use the NREL Technologies in the processing and conversion of woody biomass to renewable fuels, subject to limited geographic restrictions, in exchange for royalty and other fees linked to related sales.
The Company recently executed an indicative term sheet for $325 million (about $315 million net of transaction fees) in funding through SBC Commerce LLC (“SBCC”), a U.S. based, globally positioned, private equity group. The transaction is subject to final due diligence and applicable regulatory approvals, including $200 million into Comstock Fuels Corporation; $22 million into Comstock Metals; $50 million into Comstock Mining; and $50 million for the sales of the Company's real estate and water rights in Silver Springs, NV. This term sheet represents a combination of direct equity and/or debt financing and certain asset sales that secures timely and essential growth capital to advance, elevate and accelerate the commercialization of the Company’s fuels, metals and mining businesses.
The transaction package includes $275 million (about $267 million net of transaction fees) of direct investments into Comstock’s three main operating subsidiaries, including a $3 million direct equity investment into common shares of Comstock itself, as well as an agreement to sell the membership interests in the entities that own Comstock’s directly owned Nevada real estate and water rights for gross proceeds of $50 million ($47 million, net of transaction expenses).
Lines of Business
Fuels Segment
Our Fuels Segment develops and commercializes technologies that extract and convert wasted and unused lignocellulosic biomass into intermediates for refining into advanced renewable fuels. Most renewable fuels draw from the same pool of conventional fats, oils and greases (“FOG”) feedstocks, but the total existing FOG supply can only meet a small fraction of the global mobility demand. Our technologies unblock that constraint by converting abundant, lignocellulosic biomass into biointermediates for refining into high-yielding renewable fuels.
On October 1, 2024, the Company executed an Exclusive License Agreement (“ELA”) and a Cooperative Research and Development Agreement (“CRADA”) with Alliance for Sustainable Energy LLC (“Alliance”), the managing and operating contractor of the U.S. Department of Energy’s (“DOE”) National Renewable Energy Laboratory (“NREL”), involving technologies developed by NREL and the Massachusetts Institute of Technology (“MIT”) for conversion of lignocellulosic biomass into aromatic sustainable aviation fuel (“SAF”). The ELA provides the Company with the exclusive worldwide right to use the NREL technologies in the processing and conversion of seed plants to renewable fuels and renewable fuel feedstocks, subject to limited geographic restrictions, in exchange for royalty and other fees linked to sales of licensed products and sublicensing. The terms of the CRADA involve a three-year scope of work to jointly develop an integrated process based on the Company's existing process and the NREL technologies for the solvocatalytic refining of woody biomass into aromatic SAF and other renewable fuels. The Company will fund the research and contribute staff, equipment, and use of its pilot facility in Wisconsin and the joint work will be supported by NREL, MIT, and Washington State University.
While innovation and development are ongoing and we expect additional advancements, our existing commercially available technologies have proven the potential to produce up to 125 gallons per dry tonne of woody biomass as measured on a Gasoline Gallon Equivalent Basis (“GGE”) basis, with Carbon Intensity (“CI”) scores of 15 or less for Cellulosic Ethanol and our proprietary hydro-deoxygenated Bioleum oil (“HBO”). HBO is used by biofuel refineries to blend with and extend conventional hydroprocessed FOG feedstocks to enhance production of renewable fuels. Complimentary technologies have been secured that can add up to 15 more GGEs.
On September 18, 2024, Comstock Fuels executed a term sheet with SACL Pte. Ltd. (“SACL”), a Singapore-based project development and management company that intends to develop renewable energy projects in Australia and New Zealand (the “Territory”). The term sheet is non-binding, but binding in respect of the essential economic terms until such time as the parties execute definitive agreements.
Comstock Fuels will grant SACL an exclusive marketing agreement for Comstock Fuels’ advanced lignocellulosic biomass refining processes in Australia and New Zealand, and a master non-exclusive license to certain intellectual property for the sole purpose of developing, financing, constructing, and the ongoing management of these renewable production facilities (each, a “Licensed Facility”).
Comstock Fuels and the owner of each Licensed Facility (“Producer”) will execute a separate non-exclusive, site-specific license agreement (“Site License Agreement”) for the development, financing, construction, and management of the corresponding Licensed Facility, and the direct use of the certain intellectual property of Comstock Fuels to produce and sell renewable fuels and related products.
Comstock Fuels will contribute the site-specific license to develop, finance, build, and manage the corresponding Licensed Facility in exchange for 20% of Producer’s fully diluted equity on a post-money basis after completion of construction financing for the corresponding Licensed Facility or scope expansion.
Comstock Fuels will provide each Producer with engineering support services in exchange for 3% of each applicable Producer’s total capital and construction costs, increasing to 6% at and above a capacity of 250,000 metric tons per year (“MTPY”), including an initial upfront payment of $2,500,000 payable upon execution of each applicable Site License Agreement.
Each applicable Producer will also agree to pay to Comstock Fuels an ongoing royalty fee equal to 3% of the total sales of licensed products by each Licensed Facility (“Royalty Fees”), increasing to 6% at and above a capacity of 250,000 MTPY. Royalty Fees shall be paid monthly.
We are also evaluating our own first demonstration scale commercial facility and several, related joint development solutions and systems based on our technologies, as well as feedstock and offtake agreements, licenses, engineering services, and direct investments of up to $200 million into Comstock Fuels Corporation, for deploying that first demonstration scale commercial facility, primarily from clean energy facilitating, technologically sophisticated and well capitalized partners.
Closing on $200 million of direct equity and/or debt financing into Comstock Fuels for the development and deployment of our first demonstration scale commercial facility, plus the execution of additional commercial agreements, including joint development agreements, offtake agreements, feedstock agreements, and additional licensing agreements represents our 2024 and ongoing objectives.
Metals Segment
Our Metals Segment recently secured its first industry-scale facility lease, the related county permit for storage, and increasingly significant supplier commitments and all of the necessary permits for operating its previously commissioned demonstration scale commercial photovoltaic recycling facility and commenced receiving revenue in the form of tipping fees during the 2024 second quarter, and revenue from recycled metal and residual material sales from processed end-of-life PV materials during the 2024 third quarter.
During the nine months of 2024, we expanded our metals recycling team, commissioned our first production site, secured all permitting for our first demonstration scale commercial facility, secured long term supply agreements from our first customers, commenced production commissioning activities and recorded revenue from both tipping fees and recycled metal sales, while we continued expanding existing revenue generating supply commitments that included additional decommissioning services for certain customers. We have also completed the site selection and secured our first “industry-scale” production facility and commenced the design and the permitting thereto, having already received our first county-level permit for industry-scale storage and processing.
Closing on $22 million of direct equity and/or debt financing into Comstock Metals, submitting all prerequisite permits, finalizing the industry-scale engineering, ordering all of the industry-scale equipment for our first industry-scale facility, and accelerating site selection for our second and third facilities, are the key 2024 Metals objectives.
Mining Segment
Our Mining Segment generated income in the form of leases, licenses, and related fees during the first nine months of 2024, and is administered by our wholly owned subsidiaries, Comstock Mining LLC, Comstock Processing and various other local subsidiaries that collectively own or control twelve square miles of properties of patented mining claims, unpatented mining claims and surface parcels in northern Nevada, including six and a half miles of continuous mineralized strike length (the “Comstock Mineral Estate”).
Closing on $50 million of direct equity and/or debt financing into the Mining segment for the full development of the Dayton mine, closing on the sale of the equity interest of the entity that holds certain claims in Storey County, other than the Lucerne resource and processing assets, advancing the preliminary economic assessment for the Dayton resource and progressing toward full economic feasibility for the southern part of the district and the development of preliminary Dayton mine and reclamation plans are key 2024 objectives.
Strategic Investments Segment
We own and manage several investments and projects that are strategic to our plans and ability to produce and maximize throughput in our Fuels, Metals and Mining Segments, that are held for the purpose of complimenting or enhancing our mission of enabling systemic decarbonization and creating value but that are not a component of such other segments or otherwise have distinct operating activities. Our Strategic Investments Segment includes minority equity and equity-linked investments in GenMat (physics-based artificial intelligence), Green Li-ion Pte Limited (lithium-ion battery component recycler and remanufacturing), RenFuel (advanced biofuel development and production) and Sierra Springs Opportunity Fund (northern Nevada real estate) and other equity investments.
Investment in GenMat – Our investments in GenMat represent an integral component of our innovation strategy. GenMat has developed and launched a material science based AI that we believe can simulate critical properties of known materials with high accuracy. GenMat also plans on using its AI to simulate new material characteristics for new and existing applications. We believe these material science based AI models can be employed today, on GenMat’s existing high-performance computing platform, for immediately productive uses.
During 2023, GenMat developed its proprietary Hyperspectral Remote Sensing Imaging (“HRSI”) satellite, the GENMAT-1, and deployed it into Low Earth Orbit (LEO). Hyperspectral imaging collects and processes information from across the electromagnetic spectrum using contiguous bands and is useful for mineral exploration, oil and gas exploration, agriculture, and forest management. GenMat has also developed and operationalized the GenMat MCS, its proprietary mission control software. The purpose of the GENMAT-1 and MCS is for researching and developing mineral exploration capabilities using their proprietary physics-based artificial intelligence (AI) known as ZENO.
On October 1, 2024, the Company entered into a binding letter agreement (the “Letter Agreement” with Deep Interstellar Research LLC (“DIR”) and GenMat to (i) separate GenMat’s materials development activities (“Materials Science Business”) and space development activities (“Space Business”); (ii) assign all assets, operations, and liabilities relating to the Materials Business to GenMat; (iii) assign all assets, operations, and liabilities relating to the Space Business to GenMat Development LLC; (iv) exchange 100% of GenMat’s equity in GenMat Development LLC for 100% of DIR’s equity in GenMat; and (v) devise and implement a mutually agreeable transition plan to assist GenMat in developing independent operations for the Material Science Business without the need for support from assets, personnel, and vendors that are utilized by the Space Business. In connection with the foregoing transactions, GenMat will additionally pay $1,000,000 to the founder of GenMat in exchange for assignment of all rights to related intellectual properties, plus a contingent earn-out payment equal to 3% upon the cash realization from GenMat of a valuation in excess of $100,000,000.
Upon completion of the transactions described above, GenMat will become a 100% owned subsidiary of the Company.
Investment in Green Li-ion – Our wholly owned LINICO subsidiary has owned 37,162 preferred shares of Green Li-ion since 2021. On September 12, 2023, LINICO received gross proceeds of $795,510 from the sale of 1,500 Green Li-ion preferred shares (representing approximately 4% of the 37,162 of the shares then owned by LINICO). In 2023, the Company adjusted our investment's carrying value to fair value by increasing that value by $14,577,627 for the remaining 35,662 Green Li-ion preferred shares representing 13.34% of Green Li-ion. The Company intends to sell its remaining shares during 2025.
Investment in SSOF – During 2019, the Company invested $335,000 for 6,700,000 shares. From 2020 through November of 2023, the Company advanced $6,985,000 to SSOF and its subsidiary, for the purpose of purchasing land, payments for deposits on land and payments for an option on land and water rights purchases. On December 29, 2023, the Company and SSOF agreed to convert the full amount of the outstanding advances for an additional 3,880,556 common shares of SSOF stock (at a dollar value of $1.80 per share) that also resulted in an unrealized gain recognized of $11,725,000 on the original 6,700,000 shares. For the nine months ended 2024, the Company invested an additional $530,000 in SSOF at $1.80 per share increasing our equity ownership to 17.38%.
SSOF is a qualified opportunity zone fund, that owns 100% of SSE, a qualified opportunity zone business. SSE and its subsidiaries own or controls approximately 2,500 acres of land, a manufacturing facility, significant senior, junior and effluent water rights, sewer rights and also owns and operates the Silver Springs Regional Airport LLC. The substantial majority of these properties are contiguous and strategically located within immediate proximity of Highway 50, State Route 492, the Northern Nevada Industrial Center and the Tahoe Reno Industrial Center where high tech companies like Tesla, Switch, Google, Microsoft, Tract and Redwood Materials, and over one hundred other companies are currently located, expanding or locating in this industrializing region.
Other Investment – On March 1, 2024, the Company entered into Securities Purchase Agreement (the “Developer Securities Purchase Agreement”) with an unaffiliated research and development company (“Developer”) under which the Company agreed to purchase 4,000,000 shares of common stock of the Developer, corresponding to 40% of Developer's fully-diluted issued and outstanding capital stock, for $1,500,000. Concurrently and in connection with the entity into the Developer Securities Purchase Agreement, the Company and Developer entered into Development Services Agreement (“DSA”) for purposes of conducting certain research and development work. The purchase price payable by the Company pursuant to the Developer Securities Purchase Agreement is scheduled to be paid on the following schedule:
Phase 1
• |
$100,000 on March 1, 2024; |
• |
$20,000 per month from March 1, 2024 to completion of the first project under the DSA; and |
• |
$205,000 on completion of the first project under the DSA. |
After completion of Phase 1
• |
$30,000 per month until fully paid; and |
• |
$205,000 on completion of the first six projects under the DSA. |
Since the payments are not interest bearing, the Company calculated the implied interest of $214,039 on the future cash payments using an interest rate of 9.76% which was recorded as a discount on initial investment of $1.5 million and will be recognized over the payment term. The Company recorded a corresponding payable for future cash payments to account for the 40% ownership interest in the Developer. At September 30, 2024, the future remaining payments, net implied interest, totaled $1,122,424 (see Note 6, Accrued Expenses and Other Liabilities). For the three and nine-months ended September 30, 2024, the Company recorded $25,964 and $74,364, respectively, in equity loss from affiliates for our investment in the Developer. During the three and nine-months ended September 30, 2024, Comstock paid $60,000 and $240,000, respectively, to the Developer in accordance with the funding commitments under the Developer Securities Purchase Agreement.
Other
Investments in Properties – The Company directly owns three types of properties in Silver Springs, NV, including 98 acres of industrial land, 160 acres of commercial land, both centrally located in Silver Springs, just south of the Silver Springs Regional Airport and a portfolio of water rights. The Company has begun marketing these assets for sale as both industrial and commercial development as interest in Silver Springs, NV continuously increased during 2024, and accordingly classified these assets as held for sale in the condensed consolidated balance sheet.
COMPARATIVE FINANCIAL INFORMATION
Three-Months Ended September 30, 2024 Compared to Three-Months Ended September 30, 2023
Net loss for the three-months ended September 30, 2024 increased by $28,735,747 to $14,994,583 from net income of $13,741,164 for the comparable 2023 period. The increase in net loss primarily resulted due to gain on investments in 2023 of $14,074,875 with no similar investment sales in 2024, higher impairment of intangible assets and properties plant and equipment of $8,667,869 and $324,047, respectively, lower gain on sale of Facility in 2023 of $7,126,377 with no similar gain in 2024, change in loss on conversion of debt of $2,508,206, higher interest expense of $376,181, loss on debt extinguishment of $222,634, and lower revenues of $204,338. The increase is partially offset by change in estimated fair value of the derivative assets of $3,719,546 with a $1,350,370 gain recorded in 2024 as compared to a $2,369,176 loss in 2023, lower other income (expense) by $1,008,763, and lower depreciation and amortization expense of $114,323.
Below we set forth a summary of comparative financial information for the three-months ended September 30, 2024 and 2023:
September 30, 2024 |
September 30, 2023 |
Change |
||||||||||
Revenue |
$ | 556,383 | $ | 760,721 | $ | (204,338 | ) | |||||
Operating Expenses: |
||||||||||||
Selling, general and administrative expenses |
3,176,373 | 3,140,080 | 36,293 | |||||||||
Research and development |
1,440,367 | 1,394,860 | 45,507 | |||||||||
Depreciation and amortization |
562,456 | 676,779 | (114,323 | ) | ||||||||
Impairment of intangible assets |
8,667,869 | — | 8,667,869 | |||||||||
Impairment of properties, plant and equipment |
324,047 | — | 324,047 | |||||||||
Gain on sale of Facility |
— | (7,126,377 | ) | 7,126,377 | ||||||||
Total operating expenses |
14,171,112 | (1,914,658 | ) | 16,085,770 | ||||||||
Income (loss) from operations |
(13,614,729 | ) | 2,675,379 | (16,290,108 | ) | |||||||
Other Income (Expense) |
||||||||||||
Gain on investments |
— | 14,074,875 | (14,074,875 | ) | ||||||||
Interest expense |
(696,996 | ) | (320,815 | ) | (376,181 | ) | ||||||
Interest income |
81,015 | 73,067 | 7,948 | |||||||||
Change in fair value of derivative instruments |
1,350,370 | (2,369,176 | ) | 3,719,546 | ||||||||
Gain (loss) on conversion of debt |
(2,218,694 | ) | 289,512 | (2,508,206 | ) | |||||||
Loss on debt extinguishment |
(222,634 | ) | — | (222,634 | ) | |||||||
Other income (expense) |
327,085 | (681,678 | ) | 1,008,763 | ||||||||
Total other income (expense), net |
(1,379,854 | ) | 11,065,785 | (12,445,639 | ) | |||||||
Net income (loss) |
$ | (14,994,583 | ) | $ | 13,741,164 | $ | (28,735,747 | ) | ||||
Net income (loss) attributable to noncontrolling interest |
$ | (26,568 | ) | $ | 1,376,189 | $ | (1,402,757 | ) | ||||
Net income (loss) attributable to Comstock Inc. |
$ | (14,968,015 | ) | $ | 12,364,975 | $ | (27,332,990 | ) |
RESULTS OF OPERATIONS
Three-Months Ended September 30, 2024 Compared to Three-Months Ended September 30, 2023
Revenues for the three-months ended September 30, 2024 decreased by $204,338 to $556,383 from $760,721 for the comparable 2023 period, primarily due to lower revenues from the ABTC lease of $237,473 and lower revenues from the Mackay mineral lease of $100,000, partially offset by revenues from Comstock Metals of $128,558.
Revenue and costs of sales in future periods will vary significantly depending on a number of factors, including the amount of solar panels that we recycle and the amount of renewable energy technology solutions that we license and sell, lease revenues on our properties, the market prices for those services, the extent to which we secure and collect reasonable royalties, the degree to which we can provide event-driven engineering services, and the costs associated with each component of the aforementioned revenues.
Selling, general and administrative expense for the three-months ended September 30, 2024 increased by $36,293 to $3,176,373 from $3,140,080 in the comparable 2023 period, primarily as a result of higher consulting expense of $259,878, higher share-based compensation of $214,778, and higher rent expense of $181,931; partially offset by lower employee costs of $325,478 attributed to lower incentive compensation and lower bad debt expense of $240,000 attributed to the 2023 impairment of a Fenix deposit.
Research and development expenses for the three-months ended September 30, 2024 increased by $45,507 to $1,440,367 from $1,394,860 in the comparable 2023 period. The increase is primarily related to higher costs for processing crushing and separating electrification products of $309,427; offset partially by lower employee costs of $215,965 for salaries and incentive compensation.
Depreciation and amortization for the three-months ended September 30, 2024 decreased by $114,323 to $562,456 from $676,779 in the comparable 2023 period. The decrease is primarily related to lower amortization for impaired intangible assets in 2024.
Impairment of intangible assets and properties, plant and equipment assets for the three-months ended September 30, 2024 of $8,667,869 and $324,047, respectively, was attributed to the impairment of intangible assets and equipment in 2024 (see Note 4, Properties, Plant and Equipment, Net and Mineral Rights and Note 5, Intangible Assets).
In 2023, we recognized a gain on the sale of the Facility of $7,126,377, with no comparable amount in 2024.
Gain on investments for the three-months ended September 30, 2024 decreased by $14,074,875 to $0 from $14,074,875 in the comparable 2023 period. The decrease is primarily related to the 2023 realized gain of $597,248 on the sale of 1,500 shares of our Green Li-ion investment and the adjusted fair value unrealized gain of $14,577,627 recorded on the remaining 35,662 Green Li-ion preferred shares at $530.34 per share; offset by $1,100,000 in loss on the ABTC investment as we sold 9,076,923 ABTC shares for the three-months ended September 30, 2023, with no comparable amount in 2024.
Interest expense for the three-months ended September 30, 2024 increased by $376,181 to $696,996 from $320,815 in the comparable 2023 period, primarily due to higher interest and higher amortization of the original issue discount (“OID”) on the 2023 Kips Bay Note and 2023 Alvin Fund Note originating in the fourth quarter of 2023 and the 2024 Leviston Note and 2024 Kips Bay Note originating in the third quarter of 2024.
Interest income for the three-months ended September 30, 2024 increased by $7,948 to $81,015 from $73,067 in the comparable 2023 period, primarily due to higher interest income related to our cash sweep account.
Change in the fair value of our derivative instruments for the three-months ended September 30, 2024 increased by $3,719,546 to a gain of $1,350,370 from a loss of $2,369,176 in the comparable 2023 period, as a result of an increase in the Company's share price in connection with potential make-whole obligations for minimum value commitments on the Company's common shares. The 2024 gain was attributed to gain of $8,575 for the LINICO investment, gain of $927,000 for the Haywood investment, gain of $404,794 on the derivative liability for 2023 Kips Bay Note and gain of $130,000 for the 2024 Leviston Note; partially offset by a loss of $120,000 for the 2024 Kips Bay Note. The loss from the three-months ended September 30, 2023 was attributed to $1,120,000 for the LINICO investment, $845,843 for the GenMat investment and $480,000 for the Haywood investment, partially offset by a gain of $76,667 on the derivative liability for Ionic Note.
Loss of $2,218,694 on the conversion of debt to equity for the three-months ended September 30, 2024 is attributed to the 2023 Kips Bay Note and 2024 Leviston Note debt conversions associated with 7,891,480 and 24,680,175, respectively, of the Company's common shares issued for the conversion of the debt during the three-months ended September 30, 2024. Gain of $289,512 on the conversion of debt to equity for the three-months ended September 30, 2023 was attributed to the Ionic Note debt conversions associated with 2,818,714 of the Company's common shares used for the conversion during the three-months ended September 30, 2023.
Loss on debt extinguishment of $222,634 resulted from the Company using cash to redeem $500,000 of principal on the 2023 Kips Bay Note at a 10% redemption premium totaling $50,000 and loss on debt extinguishment of $172,634.
Other income (expense), net for the three-months ended September 30, 2024 were $327,085, primarily consisting of unrealized gain on fair value change of GenMat advances of $776,656, partially offset by losses from our equity method investments of $449,883 substantially all of which were from GenMat.
Other income (expense), net for the three-months ended September 30, 2023 were $681,678, primarily consisting of losses from our equity method investments of $531,535 substantially all of which were from GenMat.
COMPARATIVE FINANCIAL INFORMATION
Nine-Months Ended September 30, 2024 Compared to Nine-Months Ended September 30, 2023
Net loss for the nine-months ended September 30, 2024 increased by $33,120,008 to $30,565,175 from net income of $2,554,833 for the comparable 2023 period. The increase in net loss primarily resulted due to gain on investments in 2023 of $13,309,875 with no investment sales in 2024, higher impairment of intangible assets and properties plant and equipment of $8,667,869 and $324,047, respectively, lower gain on sale of Facility in 2023 of $7,304,570 with no similar gain in 2024, change in loss on conversion of debt of $3,742,616, higher interest expense of $985,944, loss on debt extinguishment of $744,256, and higher research development expenses of $454,304. The increased loss is partially offset by a change in estimated fair value of the derivative assets of $622,720 with a $516,756 gain recorded in 2024 as compared to a loss of $105,964 in 2023, higher revenues of $590,362, lower selling, general and administration expenses of $529,185, lower other income (expense) of $493,011, and lower depreciation and amortization expense of $137,550.
Below we set forth a summary of comparative financial information for the nine-months ended September 30, 2024 and 2023:
September 30, 2024 |
September 30, 2023 |
Change |
||||||||||
Revenue |
$ | 1,417,158 | $ | 826,796 | $ | 590,362 | ||||||
Operating Expenses: |
||||||||||||
Selling, general and administrative expenses |
9,496,719 | 10,025,904 | (529,185 | ) | ||||||||
Research and development |
4,880,847 | 4,426,543 | 454,304 | |||||||||
Depreciation and amortization |
1,875,151 | 2,012,701 | (137,550 | ) | ||||||||
Impairment of intangible assets |
8,667,869 | — | 8,667,869 | |||||||||
Impairment of properties, plant and equipment |
324,047 | — | 324,047 | |||||||||
Gain on sale of Facility |
— | (7,304,570 | ) | 7,304,570 | ||||||||
Total operating expenses |
25,244,633 | 9,160,578 | 16,084,055 | |||||||||
Income (loss) from operations |
(23,827,475 | ) | (8,333,782 | ) | (15,493,693 | ) | ||||||
Other Income (Expense) |
||||||||||||
Gain on investments |
— | 13,309,875 | (13,309,875 | ) | ||||||||
Interest expense |
(2,298,098 | ) | (1,312,154 | ) | (985,944 | ) | ||||||
Interest income |
220,587 | 179,942 | 40,645 | |||||||||
Change in fair value of derivative instruments |
516,756 | (105,964 | ) | 622,720 | ||||||||
Gain (loss) on conversion of debt |
(3,690,760 | ) | 51,856 | (3,742,616 | ) | |||||||
Loss on debt extinguishment |
(744,256 | ) | — | (744,256 | ) | |||||||
Other income (expense) |
(741,929 | ) | (1,234,940 | ) | 493,011 | |||||||
Total other income (expense), net |
(6,737,700 | ) | 10,888,615 | (17,626,315 | ) | |||||||
Net income (loss) |
$ | (30,565,175 | ) | $ | 2,554,833 | $ | (33,120,008 | ) | ||||
Net income (loss) attributable to noncontrolling interest |
$ | (62,196 | ) | $ | 1,327,283 | $ | (1,389,479 | ) | ||||
Net income (loss) attributable to Comstock Inc. |
$ | (30,502,979 | ) | $ | 1,227,550 | $ | (31,730,529 | ) |
RESULTS OF OPERATIONS
Nine-Months Ended September 30, 2024 Compared to Nine-Months Ended September 30, 2023
Revenues for the nine-months ended September 30, 2024, increased $590,362 to $1,417,158 from $826,796 for the comparable 2023 period, primarily due to higher revenues from the Mackay mineral lease of $681,251 and revenues from Comstock Metals of $136,157 partially offset by lower revenues from the ABTC lease of $237,473 in 2023.
Revenue and costs of sales in future periods will vary significantly depending on a number of factors, including the amount of solar panels that we recycle and the amount of renewable energy technology solutions that we license and sell, lease revenues on our properties, the market prices for those services, the extent to which we secure and collect reasonable royalties, the degree to which we can provide event-driven engineering services, and the costs associated with each component of the aforementioned revenues.
Selling, general and administrative expense for the nine-months ended September 30, 2024 decreased by $529,185 to $9,496,719 from $10,025,904 in the comparable 2023 period, primarily as a result of lower insurance expense of $406,012, lower bad debt expense $220,269, lower employee related costs of $190,369, lower marketing expense of $187,075 and lower legal fees of $157,381; partially offset by higher consulting fees of $413,495 and higher share based compensation expense of $272,387.
Research and development expenses for the nine-months ended September 30, 2024 increased by $454,304 to $4,880,847 from $4,426,543 in the comparable 2023 period. The increase is primarily related to higher rent expense of $1,430,046 attributed to the AST research and development rent of $1,208,180 paid in April 2024 (see Note 7, Leases) and higher costs for processing crushing and separating electrification products of $602,356; offset partially by lower employee costs of $1,283,859 for salaries and incentive compensation and lower consulting fees of $355,283.
Depreciation and amortization during the nine-months ended September 30, 2024 decreased by $137,550 to $1,875,151 from $2,012,701 in the comparable 2023 period. The decrease is primarily related to lower amortization for impaired intangible assets in 2024.
Impairment of intangible assets and properties, plant and equipment assets for the three-months ended September 30, 2024 of $8,667,869 and $324,047, respectively, was attributed to the impairment of intangible assets and equipment in 2024 (see Note 4, Properties, Plant and Equipment, Net and Mineral Rights and Note 5, Intangible Assets).
In 2023, we recognized a gain on the sale of the Facility of $7,304,570, with no comparable amount in 2024.
Gain on investments for the nine-months ended September 30, 2024 decreased by $13,309,875 to $0 from $13,309,875 in the comparable 2023 period. The decrease is primarily related to the 2023 realized gain of $597,248 on the sale of 1,500 shares of our Green Li-ion investment and the adjusted fair value unrealized gain of $14,577,627 recorded on the remaining 35,662 Green Li-ion preferred shares at $530.34 per share; offset by $1,865,000 in loss on the ABTC investment as we sold 9,076,923 ABTC shares for the nine-months ended September 30, 2023, with no comparable amount in 2024.
Interest expense for the nine-months ended September 30, 2024, increased by $985,944 to $2,298,098 from $1,312,154 for the comparable 2023 period, primarily due to interest and related amortization of the original issue discount (“OID”) on the 2023 Kips Bay Note and 2023 Alvin Fund Note originating in the fourth quarter of 2023 and the 2024 Leviston Note and 2024 Kips Bay Note originating in the third quarter of 2024.
Interest income for the nine-months ended September 30, 2024, of $220,587 was comparable to 2023 of $179,942.
Change in fair value of our derivative instruments for the nine-months ended September 30, 2024, increased by $622,720 to a gain of $516,756 in 2024 compared to a loss in 2023 of $105,964 resulting from an increase in the Company's share price in connection with potential make whole obligations for minimum value commitments on the Company’s common shares. The 2024 gain was attributed to gain of $1,460,875 on the derivative liability for the 2023 Kips Bay Note, gain of $594,000 for the Haywood investment, gain of $130,000 on the derivative liability for the 2024 Leviston Note, partially offset by a $860,691 loss for the LINICO investment, loss of $120,000 for the 2024 Kips Bay Note, and $687,428 loss for the GenMat investment. The 2023 loss was attributed to a loss of $1,099,587 on the derivative liability for the Ionic Note, partially offset by a gain of $455,000 for the LINICO investment, $343,623 for the GenMat investment and $195,000 for the Haywood investment.
Loss of $3,690,760 on conversion of debt for the nine-months ended September 30, 2024 are attributed to the 2023 Kips Bay Note and 2024 Leviston Note debt conversions associated with 22,412,980, and 24,680,175, respectively of the Company's common shares used for the conversion during the nine-months ended September 30, 2024. Gain of $51,856 on conversion of debt for the nine-months ended September 30, 2023 are attributed to the Ionic Note conversions of 9,309,375 of the Company's common shares.
Loss on debt extinguishment of $744,256 attributed to the debt modifications for the Amended GHF 2021 Note and Amended Alvin Fund 2023 Note and from the Company using cash to redeem $500,000 of principal on the 2023 Kips Bay Note at a 10% redemption premium totaling $50,000 and loss on debt extinguishment of $172,634.
Other income (expense), net, for the nine-months ended September 30, 2024 were $741,929, primarily consisting of income recognized on SSOF deposits of $400,000 and unrealized gain on fair value change of GenMat advances of $493,892, partially offset by losses from our equity method investments of $1,675,069 substantially all of which were from GenMat.
Other income (expense), net, for the nine-months ended September 30, 2023 were $1,234,940, primarily consisting of losses from our equity method investments of $1,337,801 substantially all of which were from GenMat.
OUTLOOK
Our goal is to Accelerate the Commercialization of Hard Technologies for the Energy Transition. We are pushing the boundaries of what is possible in technology and sustainability by leveraging our teams’ unique skills, our diverse technology portfolio and our frontier research and development networks toward achieving breakthrough innovations that deliver meaningful positive impact across industries, economies and communities. The primary focus for 2024 is the commercialization and capitalization of our businesses and the continuous innovation, development, engineering and actionable commercialization of our technologies and solutions.
Technology Readiness
The Company’s biorefining technologies are commercially ready and offer growth-enabling performance for the Company’s prospective customers. Comstock Fuels is actively engaged in the planning and deployment of our first commercial demonstration facility and pursuing joint development and licensing agreements representing strategic capital and future revenue sources from technical and engineering services, including securing associated supply chain participants, performing preliminary and final engineering, facilitating commissioning, construction and operations with globally recognized current and developing renewable fuel producers.
Comstock Metals is also commercially ready and has constructed and commissioned its first commercial demonstration facility. The facility is operating on one shift and is currently expanding to three shifts over the next two to three months. Site selection, design and permitting is currently underway for the first “Industry Scale” photovoltaic recycling facility and related storage capacity. Industry Scale facilities are anticipated to scale up to 15-20 times the capacity of the operating demonstration facility (that is, from approximately 5,000-7,000 tons per annum of capacity for the demonstration facility up to 100,000 tons per annum of capacity for Industry Scale).
Regional site assessment and selection activities are ongoing for the next two facilities.
Comstock’s team has decades of diverse technology development and commercialization experience. The Company uses a disciplined approach to devising, qualifying, and elevating innovations from conception through increasing degrees of commercial readiness. The Company has adopted a widely used Technology Readiness Level (“TRL”) measurement system for objectively assessing Comstock’s progress, risks, investment qualifications, and commercial maturity.
There are nine readiness levels on the TRL scale, starting with TRL 1. Progression up the scale requires achievement of “SMART” milestones that are Specific, Measurable, Achievable, Relevant, and Timely. Proof of concept occurs at TRL 3. TRL 4 and 5 involve increasing degrees of process validation. TRL 6 is the first true demonstration of commercial readiness. TRL 7 and 8 involve various functional prototypes and pilots with increasing fidelity and sophistication. A TRL 9 technology is commercially mature and fully deployed. Depending on the technology and other applicable factors, revenue can commence at TRL 6 for early adopting and generally sophisticated commercial clients with continued development to TRL 7, 8, and 9.
Each of our lines of developing businesses have achieved sufficiency for certain aspects of their technology readiness enabling early adoption and commercialization efforts.
The following summarizes the recent change in TRL status, and the 2024 objectives:
Line of Business |
Technology |
12/2023 |
12/2024 Goal |
|||
Lignocellulosic Fuels |
Conversion of under-utilized woody biomass into renewable fuels at high yield |
TRL 6 |
TRL 6 |
|||
Metals |
Scalable extraction of metals from electrification products |
TRL 6 |
TRL 7 |
|||
Mining |
Reduced exploration costs with hyperspectral imaging and AI-based analytics |
TRL 3 |
TRL 6 |
|||
Artificial Intelligence |
AI that simulates new materials at exponentially increased speed |
TRL 3 |
TRL 4 |
Comstock’s SMART milestones and commercialization process involve meticulous planning that is informed by many factors, including the total addressable markets, their growth rates and the speed that the Company can initiate and increase revenue.
Commercialization – Lines of Business
Comstock Fuels
Most current forms of renewable fuel draw from the same pool of conventional feedstocks, including corn and vegetable oils in the U.S., but the entire available supply of those feedstocks could only meet a small fraction of the rapidly growing demand for renewable fuels. Comstock's patented and patent-pending biorefining technologies unblock that constraint by converting underutilized lignocellulosic or "woody" biomass into biointermediates for refining drop-in and other renewable fuels.
Comstock Fuel’s objectives for the fourth quarter of 2024 include:
• | Execute multiple, revenue generating commercial agreements for industry-scale joint developments; | |
• |
Advancing and expanding our innovation network for even higher yields and lower costs; and |
• |
Expand our integrated bio-intermediate production system, including cellulosic ethanol and HBO. |
Additionally, closing on the $200 million SBCC direct equity and/or debt financing, enables our first commercial demonstration facility which is designed to be profitable and to confirm the scale of multiple industry facilities. Then, the Company plans to build its own, three U.S. based industrial scale facilities designed for inputs of up to 1 million tons per year of woody biomass feedstock and producing up to 125 million GGE of advanced biofuels, including renewable diesel and sustainable aviation fuels. Our commercialization plans also includes multiple, global joint development projects, with each joint development project, like SACL, with the potential for generating in millions of dollars of technical services and engineering revenues and license agreements for additional production facilities that generate royalty revenues.
Comstock Metals
End of life solar panels are one of the primary metals-based products that can cause a massive amount of pollution if simply allowed to be landfilled at the end of life with no recovery of any of the underlying metal values.
Comstock Metal’s objectives for the fourth quarter of 2024 include:
• |
Commencing full, three-shift production of the demonstration scale production facility; |
• | Confirming the ongoing ability to fully and cleanly reprocess and reuse all residual materials; | |
• | Advancing the technology readiness for broader material recycling, prioritizing photovoltaics, to TRL 7; | |
• |
Expanding our existing revenue generating decommissioning, supply and offtake commitments; and |
• |
Commencing permitting for our first “industry-scale” facility in Silver Springs, NV. |
Comstock Metals is operating its demonstration scale production facility in Silver Springs, NV, and has also secured the initial county level permits for industry-scale operations and storage and is actively engaged in garnering expanded revenue generating supply. Additionally, closing on the $22 million direct equity and/or debt financing, accelerates the deployment of the next two commercial demonstration facilities. Comstock Metals is also further expanding our business into decommissioning services both as a revenue generator and a feeder for our recycling business, and establishing markets for the sale of residual material including aluminum, glass and silver.
Comstock Mining
The Company has amassed the single largest known repository of historical and current geological data within the Comstock mineral district, including extensive geophysical surveys, geological mapping, and drilling data, including the Dayton resource.
On June 30, 2023, the Company signed a Mineral Exploration and Mining Lease Agreement (the “Mining Lease”) with Mackay. Mackay paid a lease initiation fee of $1,250,000 and made additional, quarterly lease payments to date totaling approximately $2,000,000.
The Company’s objectives for the fourth quarter of 2024 include:
• |
Receive cash proceeds of more than $2 million from mineral leases and asset sales leveraging the northern district claims; |
• |
Commercialize mineral development agreements that enable resource expansion of the central district claims; and |
• |
Complete the preliminary mine plans that enables the economic development of the southern district claims. |
The Company’s 2024 efforts apply economic analysis to Comstock’s existing gold and silver resources progressing toward preliminary economic feasibility for the southern part of the district and the ultimate development of full mine and reclamation plans and the development of post productive land and community development plans. Additionally, closing on the SBCC $50 million direct equity and/or debt financing, accelerates the development of the Dayton mine plan, broader resource expansions for the southern district claims and the design and engineering of the post productive real estate and community development plans.
Strategic Investments
Investment in GenMat
Investment in physics-based AI is a meaningful component of Comstock’s technology innovation strategy. GenMat develops and commercializes proprietary material science based artificial intelligence models for the discovery and manipulation of matter. This includes AI models that can be employed today, for commercial use on GenMat’s existing, high-performance computing platforms. Comstock has a minority investment interest in GenMat.
GenMat's AI uses atoms and molecules to generate physical systems and harness math and science to discover new materials in an exponentially shorter time than traditional methods allow. New material discovery typically takes many years and many millions of dollars. GenMat's AI can simulate thousands of unique new materials in seconds.
The Company is integrating GenMat’s capabilities into its own advanced innovation capacity and plans elevating new material simulation to TRL 6 by simulating, synthesizing and directly testing the AI’s ability to predict material properties to confirm the precision and accuracy of those simulations, for both Comstock and third-party material developments and breakthroughs.
Investment in Green Li-ion
Green Li-ion continues making meaningful progress in the development and deployment of its system that remanufactures critical precursor cathode active materials (“PCAM”), having now deployed its first commercial battery remanufacturing facility from fully recycled battery materials deployed. The Company intends to sell the remaining 35,662 Green Li-ion preferred shares in 2025.
Investments in others non-mining real estate, water rights and securities
The Company has announced an indicative agreement selling its non-mining real estate and water rights for $50 million in gross (approximately $47 million in net proceeds) during the fourth quarter of 2024.
LIQUIDITY AND CAPITAL RESOURCES
Our financial position and liquidity are based on our net sources of capital from financing as generally compared to our net uses of capital from investing activities and ultimately, our ability to generate cash flows from our operations. Our cash balances at September 30, 2024 and December 31, 2023 were $1,363,327 and $3,785,577, respectively. The Company had current assets of $29,885,153 and current liabilities of $12,205,732, representing working capital excess of $17,679,421 at September 30, 2024.
The current liabilities include derivative liabilities of $1,250,000 for the contingent make-whole liabilities and $6,053,784 of accrued expenses and other liabilities, including $3,243,853 for the remaining LINICO make whole provision, $1,082,813 for incentive compensation and $768,174 for accrued payroll and related expenses.
Our primary source of liquidity during the first nine-months of 2024 was cash from financing activities. During the nine-months ended September 30, 2024, we generated $14,058,395 in cash from our financing activities and we used $9,617,985 and $6,862,660, respectively, in cash in our operating and investing activities.
During the nine-months ended September 30, 2024, the Company issued 3,318,014 shares of common stock to Tysadco, for an aggregate sales price of $1,213,710 at an average price per share of $0.37.
On September 19, 2024, the Company entered into a securities purchase agreement (“2024 Kips Bay Agreement”) for an unsecured convertible promissory note (the “2024 Kips Bay Note”) with Kips Bay Select, LP ("Kips Bay") with a principal amount of $5,319,149, of which $319,149 was an original issue discount. The full principal is due on January 19, 2026. Interest is payable monthly at a rate of 6% annually. On September 19, 2024, Kips Bay funded an initial tranche of $3,500,000, which shall result in an aggregate principal amount of $3,723,404 ($3,500,000 in cash plus original issue discount of $223,404). On October 30, 2024, the Company may elect to request an additional funding of $1,500,000, which shall result in a principal amount for such second tranche of $1,595,745 ($1,500,000 in cash plus $95,745 of original issue discount). The Company can redeem the 2024 Kips Bay Note for cash 30-days following closing at 120% of the face value, plus accrued interest.
On July 19, 2024, the Company entered into a securities purchase agreement (“2024 Leviston Agreement”) for an unsecured convertible promissory note (the “Leviston Note”) with Leviston Resources LLC ("Leviston") with a principal amount of $2,717,500, of which $2,500,000 was funded and $217,500 was an original issue discount. The full principal was due on October 31, 2025. Interest was payable monthly at a rate of 8% annually. The Company could redeem the Leviston Note for cash 30-days following closing at 125% of the face value, plus accrued interest. As of September 30, 2024, the Company delivered 24,680,175 shares of common stock with a fair value of $3,957,052 at an average conversion price per share of $0.16 upon the conversion of a principal balance of $2,717,500 and accrued interest of $16,082. The Company agreed to, and on August 6, 2024, issued Leviston (i) 337,787 restricted shares of the Company’s common stock representing 2% of the principal amount, based on a price per share equal to the 20-day VWAP for the period beginning on the 10th trading day prior to the closing of the Leviston Note and ending on the 10th trading day after the closing of the Leviston Note (the “VWAP Period”), and (ii) 506,681 registered shares of the Company’s common stock representing 3% of the principal amount of the Leviston Note, based on a price per share equal to the 20-day VWAP for the VWAP Period, in each case, for no additional consideration. As of September 30, 2024, the Leviston Note was fully converted.
On March 25, 2024, the Company entered into an equity purchase agreement (“2024 ClearThink Agreement”) with ClearThink Capital Partners LLC (“ClearThink”) to offer and sell restricted and registered shares of common stock of the Company at an aggregate offering price of up to $5,000,000 from time to time, at our option, on terms we deem favorable. On March 26, 2024, the Company filed a prospectus supplement to the registration statement on Form S-3, dated March 28, 2022, that registered for resale these shares issued pursuant to the 2024 ClearThink Agreement. As of September 30, 2024, the Company issued 20,787,773 registered shares of common stock to ClearThink for an aggregate sales price of $4,250,000 at an average price per share of $0.20. On July 18, 2024, the Company elected to terminate all future offers and sales pursuant an Equity Purchase Agreement (the “Sales Agreement”) with ClearThink Capital Partners LLC (“ClearThink”) and the Company filed a prospectus supplement to reflect the reduction in the aggregate offering dollar amount of securities to be offered and sold from $5,000,000 to $4,250,000, and accordingly, the 2024 ClearThink Agreement has no remaining capacity.
On December 27, 2023, the Company entered into a securities purchase agreement for an unsecured convertible promissory note (the "Kips Bay Note") with Kips Bay Select LP ("Kips Bay") with a principal amount of $5,263,157, of which $263,157 was OID. The full principal is due on March 27, 2025. Interest is payable monthly at a rate of 8% annually. The Company received $3.0 million on December 27, 2023 and received the remaining $2.0 million by January 27, 2024. On January 11, 2024, the Company issued 308,931 restricted shares of its common stock equal to 3% of the principal amount of the Kips Bay Note, or $157,895 at $0.511 per share. On January 16, 2024, the Company issued an additional 180,210 registered shares of its common stock equal in value to 1.75% of the additional $2.0 million in principal amount of the Kips Bay Note, or $92,105, also at $0.511 per share. During nine-month period ended September 30, 2024, the Company delivered 22,412,980 shares of common stock with a fair value of $5,566,817 at an average conversion price per share of $0.25 upon the conversion of a principal balance of $4,263,908 and accrued interest of $181,854. On July 19, 2024, the Company redeemed $500,000 of principal on the Kips Bay Note at a 10% redemption premium, for $550,000 in cash.
We intend to fund our operations over the next twelve months from planned sales of non-strategic assets and other investments, issuance of equity under our existing shelf registration statement and private placements, issuance of subsidiary-level equity, planned licensing and related engineering services, sales and deferred revenue from our solar panel recycling business and existing cash and cash equivalents. Based on these expected funding sources, management believes we will have sufficient funds to sustain our operations and meet our commitments under our investment agreements during the 12 months following the date of issuance of the condensed consolidated financial statements included herein. While we have been successful in the past in obtaining the necessary capital to support our operations, including registered equity financings from our existing shelf registration statement, non-registered equity placements, non-registered equity issued directly from certain subsidiaries, borrowings, and various other means. There is no assurance we will be able to obtain additional equity capital or other financing, if needed. We intend to fund our operations beyond the next twelve months from planned sales of non-strategic assets, sales from our solar panel recycling operations, sales from licensing our lignocellulosic technology and related engineering services, issuance of subsidiary-level equity, and borrowings and other various equity financing alternatives from our existing shelf and other registration statements.
Net cash used in operating activities for the nine-months ended September 30, 2024 decreased by $1,565,999 to $9,617,985 from $11,183,984 in the comparable 2023 period, due primarily to decreases in operating expenses and increases in sources of cash from working capital, primarily increases in accounts payable, discussed in Financial Condition and Results of Operating Information.
Net cash used in investing activities for the nine-months ended September 30, 2024 was $6,862,660, compared to net cash provided by investing activities of $6,457,386 in the comparable 2023 period, resulting in a $13,320,046 change, primarily due to proceeds received in 2023 from sale of AQMS lease and related assets of $21.0 million offset by purchase of the facility of $12.0 million. Decrease attributed to proceeds received in 2023 for the sale of ABTC shares of $5,365,981 with no sales in 2024, funding of RenFuel note of $1,350,000, advances to GenMat of $1,235,636, proceeds from sale of Green Li-ion shares in 2023 of $779,600 and investment in SSOF of $530,000; partially offset by lower make-whole payments for our investments of $3,160,636, lower advances to SSOF of $1,470,000 and lower purchase of mineral rights and property, plant and equipment of $710,604.
Net cash provided in financing activities for the nine-months ended September 30, 2024 increased $8,413,484 to $14,058,395 from $5,644,911 for the comparable 2023 period, primarily as a result of additional funding from the 2023 Kips Bay Note, 2024 Leviston Note and the 2024 Kips Bay Note of $2,000,000, $2,500,000 and $3,500,000, respectively. Increase also due to an increase in proceeds from issuance of common stock of $863,710.
Risks to our liquidity could result from future operating expenditures above management’s expectations, including but not limited to pre-development, research and development, exploration, selling, general and administrative, and investment related expenditures in excess of sale proceeds from our non-strategic assets and other investments, amounts to be raised from direct equity from our subsidiaries or the issuance of equity under our existing shelf registration statement or amounts to be raised directly from the non-registered equity of our subsidiaries, declines in the market value of properties planned for sale, or declines in the share price of our common stock that would adversely affect our results of operations, financial condition and cash flows. If we were unable to obtain any necessary additional funds, this could have an immediate material adverse effect on liquidity and raise substantial doubt about our ability to continue as a going concern. In such case, we could be required to limit or discontinue certain business plans, activities or operations, reduce or delay certain capital expenditures or investments, or sell certain assets or businesses. There can be no assurance that we would be able to take any such actions on favorable terms, in a timely manner, or at all.
CRITICAL ACCOUNTING ESTIMATES
There have been no significant changes to the critical accounting estimates disclosed in Management's Discussion and Analysis of Financial Condition and Results of Operations in our 2023 Form 10-K.
ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market Prices
Changes in the market price of commodities, including precious metals, critical metals and oil and gas may significantly affect our future profitability and cash flow. Metal prices fluctuate widely due to factors such as: demand, global mine production levels, supply chain constraints, investor sentiment, central bank reserves, global conflicts and the value of the U.S. dollar and other currencies.
Interest Rate Risk
The interest rates on our existing long-term debt borrowings are fixed, and as a result, interest due on borrowings are not impacted by changes in market-based interest rates.
There have been no material changes in the market risks discussed in Item 7A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
ITEM 4 CONTROLS AND PROCEDURES
A. Disclosure
Evaluation of Disclosure Controls and Procedures
As of the end of the period covered by this Quarterly Report on Form 10-Q, with the participation of both our Principal Executive and Financial Officer and our Principal Accounting Officer, an evaluation of the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 ("Exchange Act") was conducted. Our disclosure controls and procedures are designed to ensure information required to be disclosed in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Exchange Act rules, and such information is accumulated and communicated to our management, including our Principal Executive and Financial Officer, to allow timely decisions regarding required disclosures. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives. Based on that evaluation, our chief executive officer concluded that our disclosure controls and procedures, including controls and procedures designed to ensure that information required to be disclosed by us is accumulated and communicated to our management (including our chief executive officer), were effective as of September 30, 2024, in assuring them in a timely manner that material information required to be disclosed in this report has been properly recorded, processed, summarized and reported.
Changes in Internal Control Over Financial Reporting
During the quarter ended September 30, 2024, there was no change in our internal control over financial reporting that materially affected or is reasonably likely to materially affect our internal control over financial reporting.
The Company’s business activities, including cellulosic fuels, battery recycling, storage, mining, and exploration, are subject to various laws and regulations governing environmental protection. These laws and regulations are frequently changing and generally becoming more restrictive. The Company believes its operations are compliant with applicable laws and regulations, in all material respects and continuously spends money to comply with such laws and regulations and cannot predict the full amount of such future expenditures.
Our investors should consider the risks set forth in Part I, Item 1A, Risk Factors, of our Annual Report on Form 10-K for the year ended December 31, 2023 that could affect our business. Additionally, investors should consider the following risk factors identified since the filing of our Annual Report.
Our plans to expand our revenue sources through commercializing our market-ready technologies and developing new technology with commercial applicability may not be successful and could materially adversely affect our long-term business, financial condition and operating results.
As part of our business strategy, we are seeking to expand our revenue sources through the continued development, commercialization and licensing of technology projects. Our technology development activities may experience delays, or the markets for our technology solutions may fail to materialize to the extent or at the rate we expect, each of which could reduce our opportunities for technology sales and licensing. In addition, there could be fewer applications for our technology and products than we expect. The development of technology markets also could be affected by general economic conditions, customer buying patterns, timeliness of equipment development, and the availability of capital for, and the high cost of, infrastructure improvements. Additionally, investing in technology development is costly and may require structural changes to the organization that could require additional costs, including without limitation legal and accounting fees. Furthermore, delays or failures to enter into additional partnering relationships to facilitate technology development efforts or delays or failures to enter into technology licensing agreements to secure integration of additional functionality could impair our ability to introduce into the market portions of our technology and resulting products, cause us to miss critical market windows, or decrease our ability to remain competitive. In addition, the commercialization of certain technologies could potentially lead to patent exhaustion or implied license issues that could limit our ability to derive licensing revenue from certain patents under our patent licensing program. In the event that any of these risks materialize, our long-term business, financial condition and operating results may be materially adversely affected.
We face risks from doing business in international markets.
A significant portion of our licensees, potential licensees and customers are international, and our licensees, potential licensees and customers sell their products to markets throughout the world. Accordingly, we could be subject to the effects of a variety of uncontrollable and changing factors, including, but not limited to: difficulty in protecting our intellectual property in foreign jurisdictions; enforcing contractual commitments in foreign jurisdictions or against foreign corporations; government regulations, tariffs and other applicable trade barriers; biased enforcement of foreign laws and regulations to promote industrial or economic policies at our expense; currency control regulations and variability in the value of the U.S. dollar against foreign currency; social, economic and political instability; natural disasters, acts of terrorism, widespread illness and war; potentially adverse tax consequences; and general delays in remittance of and difficulties collecting non-U.S. payments. In addition, we also are subject to risks specific to the individual countries in which we and our licensees, potential licensees and customers do business.
Our current and future licensing arrangements may not be successful and may make us susceptible to the actions of third parties over whom we have limited control.
We have entered into a select number of product licensing agreements with companies that plan to produce and sell products requiring specialized expertise. We have also entered into a number of select licensing agreements pursuant to which we have granted third parties certain rights to distribute and sell our products in certain geographical areas outside of the United States. In the future, we may enter into additional licensing arrangements. Although we take steps to carefully select our licensing partners, such arrangements may not be successful. Our licensing partners may fail to fulfill their obligations under their license agreements or have interests that differ from or conflict with our own, such as the timing of new store openings, the pricing of our products and the offering of competitive products. In addition, the risks applicable to the business of our licensing partners may be different than the risks applicable to our business, including risks associated with each such partner’s ability to:
• |
obtain capital; |
||
• |
exercise operational and financial control over its business; |
||
• |
manage its labor relations; |
||
• |
maintain relationships with suppliers; |
||
• |
manage its credit and bankruptcy risks; and |
||
• |
maintain customer relationships. |
Any of the foregoing risks, or the inability of any of our licensing partners to successfully market our products or otherwise conduct its business, may result in loss of revenue and competitive harm to our operations in regions or product categories where we have entered into such licensing arrangements.
ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USES OF PROCEEDS
On September 3, 2024, the Company issued 2,920,702 shares of unregistered restricted common stock with a fair value of $482,500 to Northern Comstock LLC as payment for obligations due under the Northern Comstock operating agreement.
In August 2024, the Company issued 773,745 shares of unregistered restricted common shares with a fair value of $144,175 to Alvin Fund in lieu of cash for interest expense due under the Alvin Fund 2022 Note and the Alvin Fund 2023 Note pursuant to Section 4(a)(2) of the Securities Act.
On August 6, 2024, pursuant to the 2024 Leviston Agreement, the Company issued to Leviston Resources LLC 337,787 restricted shares of the Company's common stock representing 2% of the principal amount of the Leviston Note based on a price per share equal to the 20-day VWAP for the VWAP period for no additional consideration.
ITEM 3 DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4 MINE SAFETY DISCLOSURES
Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, and Item 104 of Regulation S-K, we are required to disclose items believed to be violations of the Federal Mine Safety and Health Act of 1977, any health and safety standard, or any regulation, as administered by the Federal Mine Safety and Health Administration. The required information is included in Exhibit 95 to this Report on Form 10-Q.
The exhibits required to be filed as a part of this Report on Form 10-Q are listed in the Exhibit Index attached hereto, which is incorporated herein by reference.
(1) Exhibits filed as part of this Report:
See Exhibits for which the Exhibit number is noted with an asterisk on the Exhibit Index attached hereto.
Exhibit Number |
Exhibit |
|
10.1 | Securities Purchase Agreement (incorporated by reference to Exhibit 10.1 on Form 8-K filed September 19, 2024). | |
10.2 | Convertible Note (incorporated by reference to Exhibit 10.2 on Form 8-K filed September 19, 2024). | |
10.3 | License Agreement (incorporated by reference to Exhibit 10.1 on Form 8-K filed October 2, 2024). | |
10.4 | Letter Agreement (incorporated by reference to Exhibit 10.1 on Form 8-K filed October 7, 2024). | |
31* |
||
32* |
||
95* |
||
101* |
Interactive Data File (Quarterly Report on Form 10-Q, for the periods ended September 30, 2024, furnished in iXBRL (Inline eXtensible Business Reporting Language)).
Attached as Exhibit 101 to this report are the following documents formatted in XBRL: (i) the Condensed Consolidated Balance Sheets at September 30, 2024 and December 31, 2023, (ii) the Condensed Consolidated Statements of Operations for the three and nine-months ended September 30, 2024 and 2023, (iii) the Condensed Consolidated Statements of Changes in Equity for the three and nine-months ended September 30, 2024 and 2023, (iv) the Condensed Consolidated Statements of Cash Flows for nine-months ended September 30, 2024 and 2023 and (v) the Notes to Condensed Consolidated Financial Statements, tagged as blocks of text. Users of this data are advised pursuant to Rule 406T of Regulation S-T that this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections. |
|
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* Filed herewith.
# Management contract or compensatory plan.
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on the date indicated.
COMSTOCK INC. |
By: /s/ CORRADO DE GASPERIS |
CORRADO DE GASPERIS |
Executive Chairman |
Chief Executive Officer |
(Principal Executive Officer and |
Principal Financial Officer) |
|
Date: October 22, 2024 |
By: /s/ MATTHEW J. BIEBERLY |
MATTHEW J. BIEBERLY |
Chief Accounting Officer |
(Principal Accounting Officer) |
|
Date: October 22, 2024 |