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 Consolidated Financial Statements
included herewith, the footnotes thereto and the risk factors herein.
OVERVIEW
Comstock Inc. (together with its wholly-owned and majority owned subsidiaries), is a leading innovator of technologies that enable systemic decarbonization and circularity by efficiently converting under-utilized waste and renewable natural resources into fuels and electrification products that contribute to balancing global uses and emissions of carbon. We expect to generate revenue by developing, using, selling, and supporting new clean technologies that facilitate the more efficient use of scarce natural resources. We are commercializing environment-enhancing, material science-based technologies, products, and processes including carbon neutral cellulosic bio-fuels and carbon reducing lithium-ion battery ("LIB") metal recycling.
We intend to use our technologies to achieve exponential growth and
extraordinary financial, natural and social returns by:
– building, owning, and operating a fleet of advanced carbon neutral extraction and
refining facilities;
– selling an array of complimentary process solutions and related services, and
– licensing selected technologies to qualified strategic partners.
Our objective is to generate billions of dollars in revenue on an annualized basis by 2030, by responsibly producing and selling renewable energy products that enable us, our clients, and their downstream stakeholders to reduce greenhouse gas emissions by at least 100 million metric tons per year. Meeting that objective would offset the equivalent of more than 234 million barrels per year of fossil fuel, or about 6% of theU.S. transportation burn. Our technologies unlock vast quantities of historically wasted and unused feedstock supplies with enough short cycle carbon to offset many billions of metric tons of long cycle fossil fuel emissions worldwide. Most of that potential is provided by ourCellulosic Fuels technologies, which efficiently convert wasted, unused, widely-available and rapidly-replenishable woody biomass into intermediates and precursors for the production of carbon neutral oil, ethanol, gasoline, renewable diesel, sustainable aviation fuel ("SAF"), marine fuel, and other renewable replacements for long cycle fossil derivatives. Our portfolio of patented, patent-pending and proprietary technologies includes many additional processes that complement and add to that potential. We expect to use our technologies to meet our 2030 objectives with less than just 8% of the biomass residues produced annually in theU.S. , however, we have structured our business to achieve and enable exponentially greater gains. We believe that the Earth's natural carbon cycle provides the simplest, fastest, most scalable and most practical path for enabling systemic decarbonization and achieving a net zero carbon world. Our strategic plan is consequently based on innovating and using our technologies and renewable energy products to simultaneously:
– reduce reliance on long cycle fossil fuels;
– shift supply chains that terminate in combustion to short cycle renewable fuels;
and
– lead and support the adoption and growth of a highly profitable, balanced worldwide
short cycle ecosystem that continuously offsets, recycles, and contributes to
neutralizing global carbon emissions by rapidly growing and replenishing vast
quantities of feedstock for renewable circular fuels.
In that fashion, we plan to empower our clients, the industries in which they
operate, and the populations they serve to
Smarter
additional renewable fuels, and to thereby make disruptive contributions to
global decarbonization and helping to achieve a net zero carbon world.
——————————————————————————–
RECENT DEVELOPMENTS
Comstock historically focused on natural resource exploration, development, and production, with an emphasis on mining gold and silver resources from its extensive contiguous property holdings in the historic Comstock andSilver City mining districts inNevada (collectively, the "Comstock Mineral Estate "). We are currently focused, in conjunction with our investeeQuantum Generative Materials LLC , on developing technologies that enhance the efficacy and efficiency of mineral exploration and development activities, including advanced sensing and data collection capabilities and artificially intelligent interpretive and predictive technologies, while leveraging our extensive database of historical and current geologic data, for breakthrough mineral discovery. During 2021 and 2022 , we completed a series of transactions that were designed to build on our competencies and reposition us to capitalize on the global transition to clean energy. Those transactions primarily included (i) our option to sellComstock Mining LLC , the owner of our Lucerne mine inStorey County, Nevada , and related permits, (ii) our acquisitions of 100% ofComstock Innovations Corporation (F/K/A Plain Sight Innovations Corporation ), 100% ofComstock Engineering Corporation (F/K/A Renewable Process Solutions, Inc. ), and approximately 90% ofLINICO Corporation , and (iii) our investments of 48.19% ofQuantum Generative Materials LLC , and other minority investments. These transactions added the management, employees, facilities, intellectual properties, and other assets needed to transform our company and business into an emerging leader in the innovation and sustainable production of renewable energy products, primarily by commercializing two new lines of business, cellulosic fuels and electrification metals. Additional information on these transactions is provided in Note 2 to our Condensed Consolidated Financial Statements, Acquisitions and Investments. The acquisitions and business integrations during 2021 and 2022 established our new renewable energy platform for growth. We will innovate and commercialize technologies that contribute to global decarbonization by efficiently converting under-utilized natural resources into renewable fuels and electrification products that shift supply chains away from fossil fuels. We will also lead and support the adoption and growth of a balanced net zero ecosystem based on the feedstocks unlocked by our technologies, with powerful embedded economic incentives for our clients, their industries, and the populations they serve to decarbonize. We will rapidly achieve exponential growth and extraordinary financial, natural, and social gains by building, owning, and operating a fleet of advanced carbon neutral extraction and refining facilities, by selling an array of complimentary process solutions and related services, and by licensing selected technologies to qualified strategic partners Our goal is to accelerate the commercialization of decarbonizing technologies and generate billions in revenue on an annualized basis by 2030, by producing and selling renewable energy products that enable us, our clients, and their downstream stakeholders to reduce greenhouse gas emissions by at least 100 million metric tons per year. Meeting that objective would offset more than 234 million barrels per year of fossil fuel, or about 6% of theU.S. transportation burn, and require an estimated 8% of the existing biomass residues produced annually in theU.S. We also announced a significant expansion of our leading cellulosic technology portfolio by filing for a new patent covering breakthrough pathways to produce renewable diesel, marine, SAF and gasoline from woody biomass, at dramatically improved yield, efficiency, and cost in comparison to all known methods. These technology advancements enable a new sustainable feedstock capable of neutralizing a substantial share of currentU.S. mobility emissions. Renewable fuels provide a critical opportunity for decarbonization, however, most of the existingU.S. renewable fuel refineries draw from the same limited pool of constrained feedstocks. Comstock's plans to decarbonize with renewable fuels involves...
Read More:COMSTOCK INC. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF