Comstock(US:LODE)2025-05-08 20:00Renewable Fuel Production - Comstock Fuels plans to produce approximately 200 million barrels of renewable fuel per year by 2035, starting with a 400,000 barrel per year facility in Oklahoma[158]. - Comstock Fuels holds exclusive rights to intellectual properties developed by Hexas for producing energy crops with proven yields exceeding 25 to 30 dry metric tons per acre per year[157]. - The company invested $500,000 in Hexas for an exclusive worldwide license to its intellectual properties in liquid fuels applications[176]. - Comstock Fuels operates two pilot facilities in Wisconsin to enhance its biomass refining solutions and drive down costs[160]. Financial Performance - Revenue for the three months ended March 31, 2025, increased by $359,864 to $785,815 from $425,951 in the comparable 2024 period, primarily due to the commencement of the first commercial demonstration facility[180]. - Cost of goods sold for the three months ended March 31, 2025, increased by $886,796, attributed to the operation of the new facility at less than full capacity[180]. - Research and development expenses for the three months ended March 31, 2025, increased by $2,411,905 to $3,303,918 from $892,013 in the comparable 2024 period, mainly due to higher rent and project costs[183]. - Selling, general and administrative expenses decreased by $269,059 to $3,258,465 from $3,527,524, primarily due to lower employee-related costs[182]. - Net loss for the three months ended March 31, 2025, was $9,093,931, compared to a net loss of $6,918,320 in the same period of 2024, reflecting an increase of $2,175,611[179]. - Interest expense decreased by $159,517 to $659,144 from $818,661 in the comparable 2024 period, due to lower interest and amortization costs[185]. Segment Performance - The Metals Segment generated $401,238 in revenue during 2024 and tripled its billable revenues to $1,344,127 in Q1 2025 compared to all of 2024[162]. - The company aims to achieve higher revenues from its Metals Segment, projected at $748,765 for 2025, while anticipating lower revenues of $388,901 from its Mining Segment due to lease termination[190]. - The Mining Segment aims to monetize over $2.0 million from the sale of northern mining claims and advance the preliminary economic assessment for the Dayton Consolidated Project in 2025[170]. Capital and Investment - The company plans to invest approximately $5.0 million in research and development and over $10.0 million in payroll during 2025, totaling over $20.0 million in spending[212]. - Comstock Fuels is raising direct subsidiary financing for a $250 million integrated commercial demonstration biorefinery project, with $152 million allocated from the State of Oklahoma[210]. - Comstock Metals expects to build its first industry-scale facility in 2025 with a capacity of up to 100,000 tons per year, costing up to $12 million[211]. - The company has filed a new $50 million shelf registration statement and received a $3.0 million grant from the State of Oklahoma in 2025[213]. - The principal amount of the 2025 Kips Bay Note is $10,638,298, with $5,000,000 funded in cash on January 13, 2025, and the remaining $5,000,000 funded on March 11, 2025[215]. Liquidity and Financial Position - Cash balances at March 31, 2025, were $3,906,773, with current assets of $15,697,279 and current liabilities of $8,620,700, resulting in working capital of $7,076,579[207]. - In Q1 2025, the company generated $9,731,350 in cash from financing activities, compared to $3,131,934 in Q1 2024, reflecting a 210% increase[209]. - The company intends to fund operations over the next twelve months from revenues, government grants, and planned sales of non-strategic assets[216]. - Risks to liquidity may arise from operating expenditures exceeding management's expectations, which could adversely affect financial condition and cash flows[217]. Project Development - The company has received $152 million from the State of Oklahoma for project activity bonds to construct its first facility in Oklahoma[161]. - The first industry-scale facility is expected to operate at an initial capacity of 50,000 tons annually, with plans to double that capacity to 100,000 tons[198]. - Comstock owns 98 acres of industrial land and 160 acres of commercial land in Silver Springs, NV, which are being marketed for sale[178]. - The company received over $2.0 million from prior mineral leases and asset sales from northern claims[214]. Corporate Governance - The company has increased its authorized capital capacity through a 1:10 reverse stock split, positioning itself for future growth opportunities[193]. - There have been no significant changes to critical accounting estimates disclosed in the 2024 Form 10-K[218].