Comstock(US:LODE)2025-10-29 22:01Revenue and Financial Performance - The Metals Segment generated $0.4 million in revenue during 2024, with billable revenues increasing nearly six-fold in the first nine months of 2025 due to decommissioning services and recycling end-of-life solar panels [210]. - Revenue for the three-months ended September 30, 2025 decreased by $502,304 to $54,079 from $556,383 in 2024, primarily due to lower revenues from the Mining Segment and Comstock Metals operations [233]. - For the nine-months ended September 30, 2025, revenue decreased by $237,718 to $1,179,440 from $1,417,158 in 2024, with future revenues expected to vary based on several operational factors [247]. - The company expects billable revenues to be over $3.5 million in 2025, which is projected to be eight times greater than in 2024 [272]. Costs and Expenses - Cost of goods sold for the three-months ended September 30, 2025 increased by $324,397, attributed to the commencement of the first commercial demonstration facility for metal recycling operations [234]. - Selling, general and administrative expenses for the three-months ended September 30, 2025 increased by $2,933,638 to $6,110,011, driven by higher employee-related costs and acquisition-related expenses [235]. - Research and development expenses for the three-months ended September 30, 2025 increased by $789,471 to $2,229,838, mainly for renewable fuel projects with external laboratories [236]. - Depreciation and amortization for the three-months ended September 30, 2025 increased by $599,790 to $1,162,246, primarily due to higher amortization of intangible assets [237]. Net Loss and Gains - Net loss for the three-months ended September 30, 2025 was $12,888,336, an improvement of $2,106,247 compared to the net loss of $14,994,583 in 2024 [232]. - The company recognized a gain on the conversion of debt to equity of $242,664 for the three-months ended September 30, 2025, compared to a loss of $2,218,694 in 2024 [242]. - The company recognized a loss of $3,088,167 on the conversion of debt to equity for the nine-months ended September 30, 2025, compared to a loss of $3,690,760 in 2024 [257]. Cash Flow and Financing - Cash balances at September 30, 2025, were $31,712,352, significantly up from $954,271 at December 31, 2024 [283]. - The company generated $60,341,689 in cash from financing activities during the nine-months ended September 30, 2025, compared to $14,058,395 in the same period of 2024 [287]. - The Company entered into a securities purchase agreement for an unsecured convertible promissory note with a principal amount of $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 [293]. - The Company agreed to pay $2,500,000 in cash and issue 447,724 shares of Common Stock to Kips Bay in full satisfaction of its obligations under the Note [293]. Investments and Future Plans - The company plans to build up to seven recycling facilities in the U.S. over the next five years to support energy independence and deliver economic and environmental value [212]. - The company plans to build up to 7 industry-scale U.S. based recycling facilities, with the first facility expected to have a capacity of 100,000 tons annually, commencing operations in Q2 2026 [270]. - Bioleum plans to produce up to 200 million barrels of renewable fuel per year by 2035, starting with a 400,000 barrel per year facility in Oklahoma [219]. - Bioleum has negotiated exclusive rights to intellectual properties for producing energy crops, with proven yields exceeding 25 to 30 dry metric tons per acre per year [219]. Market Risks and Liquidity - Risks to liquidity may arise from future operating expenditures exceeding management's expectations, including research and development and capital expenditures [295]. - The Company may need to limit or discontinue certain business plans or operations if unable to obtain necessary additional funds, which could adversely affect liquidity [295]. - Changes in market prices of commodities, including precious metals and oil, may significantly affect future profitability and cash flow [297]. - The interest rates on existing long-term debt borrowings are fixed, insulating the Company from market-based interest rate changes [298]. Other Financial Metrics - Interest expense for the three-months ended September 30, 2025 decreased by $360,920 to $336,076, due to lower interest and amortization of original issue discount [239]. - Interest income for the three-months ended September 30, 2025 increased by $231,847 to $312,862, primarily from higher accrued interest related to the RenFuel note receivable [240]. - Interest expense decreased by $528,816 to $1,769,282 for the nine-months ended September 30, 2025, down from $2,298,098 in 2024 [254]. - Interest income increased by $343,084 to $563,671 for the nine-months ended September 30, 2025, compared to $220,587 in 2024 [255]. - The fair value change of derivative instruments resulted in a gain of $433,991 for the nine-months ended September 30, 2025, down from a gain of $516,756 in 2024, a decrease of $82,765 [256]. - There have been no significant changes to the critical accounting estimates disclosed in the 2024 Form 10-K [296]. - There have been no material changes in the market risks discussed in the Annual Report for the fiscal year ended December 31, 2024 [298].