Overview of Financial Performance

Comstock Inc. is a diversified company with three main business segments: Fuels, Metals, and Mining. The company also has a Strategic Investments segment that manages various minority equity and equity-linked investments.

In the first quarter of 2025, the company’s total revenue increased by $359,864 to $785,815 compared to the same period in 2024. This was primarily driven by higher revenues from the Metals Segment, which saw a $748,765 increase in revenue for decommissioning services and sales of recycled materials. However, the Mining Segment saw a $388,901 decrease in revenue due to the termination of the Mackay Mining Lease.

Cost of goods sold increased by $886,796 in Q1 2025, primarily due to the commencement of the company’s first commercial demonstration facility for metal recycling operations, which was operating at less than full capacity.

Operating expenses increased by $1,862,253, with higher research and development costs of $2,411,905 partially offset by lower selling, general and administrative expenses of $269,059. The increase in R&D was mainly due to higher rent, external lab costs, and employee-related expenses.

The company reported a net loss of $9,093,931 in Q1 2025, compared to a net loss of $6,901,412 in the same period in 2024. This was driven by the increase in operating expenses, as well as higher losses from changes in the fair value of derivative instruments and debt conversion.

Strengths and Weaknesses

Strengths:

• Strong growth in the Metals Segment, with a more than three-fold increase in billable revenues in Q1 2025 compared to 2024
• Advancing commercialization of the Fuels Segment, with plans to build the first commercial demonstration facility in Oklahoma
• Diversified business model with exposure to multiple high-growth industries (renewable fuels, metals recycling, mining)
• Partnerships with leading research institutions and strategic investors

Weaknesses:

• Significant net losses, driven by high R&D and operating expenses
• Fuels Segment not yet generating revenue, relying on licensing and engineering services
• Dependence on external financing to fund growth and operations

Outlook

Comstock’s primary focus for 2025 is the commercialization of its Fuels and Metals businesses. Key objectives include:

Fuels Segment:

• Spin out Comstock Fuels into a standalone, well-capitalized renewable fuels business
• Secure financing for the first commercial biorefinery project in Oklahoma
• Expand integrated pilot production capabilities

Metals Segment:

• Maximize production and revenue from the demonstration-scale facility
• Secure funding and permits for the first industry-scale recycling facility
• Expand the system globally with strategic partners

Mining Segment:

• Monetize over $2 million from the sale of northern mining claims
• Advance the preliminary economic assessment for the Dayton Consolidated Project

The company plans to fund its operations through a combination of revenues, government grants, subsidiary-level equity financing, asset sales, and other financing alternatives. While the company has been successful in obtaining capital in the past, there is no assurance it will be able to do so in the future, which could impact its ability to continue as a going concern.

Overall, Comstock is focused on accelerating the commercialization of its breakthrough technologies in renewable fuels, metals recycling, and mining, with the goal of creating value and driving the energy transition.