Comstock Inc. (LODE)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 preliminary results: revenue $0.30M, net loss $7.80M, and cash & equivalents $18.6M, reflecting continued early-stage commercialization and tightened liquidity versus Q1 .
• Balance-sheet actions: amended $8.39M of promissory notes via share issuance (2.9M shares), extended warrant expirations to 12/31/2027, and executed a payoff of the Kips Bay convertible note ($2.5M cash + 447,724 shares; lock-up through Oct 31, 2025) .
• Operational catalysts: county permit for expanded solar-panel storage (Silver Springs, NV) and strategic partnership with Virtus Renewables to scale decommissioning/logistics and zero-landfill recycling services .
• Index and financing: set to join Russell Microcap Index (effective 6/30/2025) and commenced an underwritten offering to fund metals commercialization and general purposes (including debt repayment) .
• Estimate context: No S&P Global Wall Street consensus available for Q2 EPS/revenue; beats/misses cannot be assessed.*

What Went Well and What Went Wrong

What Went Well

• Liquidity anchoring and liability management: executed multiple note amendments (Alvin Fund, Georges Trust) replacing cash interest with share-sale net proceeds and “true-up” in Apr 2026; extended warrants to 2027 to preserve capital flexibility .
• Solar recycling capacity build-out: received county CUP for expanded storage capacity adjacent to first industry-scale facility; equipment ordering to begin in summer; state permit targeted in Q4 2025 .
• Commercial ecosystem expansion: strategic partnership with Virtus expands turnkey offerings (recycling, decommissioning, logistics), positioning Comstock Metals as a zero-landfill leader with certified processes .
  • Quote: “Our partnership with Virtus reinforces our mutual commitment… integrating industry-leading recycling solutions…” — Dr. Fortunato Villamagna .
  • Quote: “We are thankful to Lyon County’s expedience in enabling this local and regional Nevada-based solution.” — Corrado De Gasperis .

What Went Wrong

• Scale vs. P&L gap: Q2 revenue of $0.30M vs. net loss of $7.80M underscores early-stage revenue realization lag relative to investment pace .
• Continued losses: six-month recurring net loss reached $16.9M, indicating ongoing spend in R&D, commercialization, and corporate initiatives .
• Governance turnover: officer resignations (David Winsness, Rahul Bobbili) to join Bioleum Corporation may drive execution risk pending backfills and process continuity .
• Potential dilution from offering and debt-share exchanges: commenced underwritten offering (size TBD) and issued 2.9M shares as part of promissory note amendments .

Financial Results

Consolidated Financial Comparison

Notes: †Derived arithmetically from six-month totals minus Q2 (both disclosed in 8-K item 2.02) .

Liquidity

Segment and KPI Highlights (selected)

Capital and Structure Actions

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Our partnership with Virtus… ensures that end-of-life solar assets are managed responsibly and sustainably.” — Dr. Fortunato Villamagna, President, Comstock Metals .
• “We are thankful to Lyon County’s expedience… expanded storage to accommodate our customers… commitment to keeping these materials out of landfills.” — Corrado De Gasperis, Executive Chairman & CEO .
• On metals economics and ramp (prior call context): “At the full industry scale, we expect robust cash margins… permits expected by the fourth quarter of this year.” — Corrado De Gasperis .

Q&A Highlights

• Mining monetization timeline and macro: increased inbound interest amid higher gold/silver; evaluating JV/sale/production options without distracting fuels/metals execution .
• Metals permitting and commissioning path: storage expansion in Q2; equipment orders in Q3; state permit targeted Q4; commissioning targeted Q1 2026 .
• Fuels licensing/integrations: international licenses (engineering fees, royalties, 20% equity stakes) and U.S. integrations into pulp/paper, sugarcane, ethanol to accelerate pre-Oklahoma revenues .
• Spin-off/financing structure: Series A into fuels at subsidiary level; project financing (> $200M) below fuels for Oklahoma; spin-off to align investor base .

Estimates Context

• Wall Street consensus (S&P Global) for Q2 2025 EPS and revenue was unavailable; we cannot assess beats/misses or estimate deviations.*
• Implications: With no published consensus, investor focus should pivot to execution milestones (permits, partnerships, financing closes) and cash runway management.

Key Takeaways for Investors

• Near-term focus: execution of metals state permit, equipment procurement, and customer MSAs to bridge early-stage revenue to scale; Q2 showed capacity-build progress but limited P&L contribution .
• Balance sheet de-risking: note amendments, warrant extensions, and Kips Bay payoff reduce cash interest burdens and simplify the capital stack ahead of facility capex .
• Commercial momentum in recycling: Virtus partnership plus R2v3/RIOS zero-landfill certification strengthen competitive positioning and win rate with utilities/O&M providers .
• Financing/investor base expansion: underwritten offering and Russell Microcap inclusion broaden capital access but introduce dilution risk; monitor sizing/terms .
• Trend analysis: Q2 losses persist as expected for build-out stage; watch Q3/Q4 for permitting outcomes and any initial revenue inflection from scaled operations .
• Strategic optionality: mining monetization improved (Mackay amendment, added acreage), offering potential non-dilutive cash sources alongside metals/fuels growth plans .
• Trading lens: near-term catalysts include Q4 permit, offering pricing/closing, and August business update webinar; price sensitivity likely to headlines on financing and permitting .

Footnotes and Disclaimers: *Values retrieved from S&P Global (GetEstimates) were unavailable for LODE in Q2 2025; consensus comparisons cannot be made. [GetEstimates]
All quantitative and qualitative claims are cited to SEC filings and company press releases: Q2 2025 8-K (preliminary results, capital actions) , county permit and partnership , proposed offering , Russell Microcap inclusion , Q1 2025 and FY 2024 call/transcripts .