Comstock (LODE) risk factors, FY2025 10-K

BUSINESS AND OPERATING RISKS

1. 01You may lose all or part of your investment
2. 02We need additional capital, which may not be available on acceptable terms or at all, to continue as a going concern and for investing in our business and to finance acquisitions and other strategic transactions
3. 03We have a limited operating history
4. 04We may never earn significant revenues from our operations
5. 05We may be unable to manage our future growth
6. 06We may not be able to successfully implement our growth strategy on a timely basis or at all
7. 07We are exposed to global health, economic, supply chain, and market risks that are beyond our control, which could adversely affect our financial results and capital requirements
8. 08The Renewable Fuel Standard, a federal law requiring the consumption of qualifying renewable fuels, could be repealed, curtailed or otherwise changed, which would have a material adverse effect on our revenues, operating margins and financial condition
9. 09Loss of or reductions in federal and state government tax incentives for renewable fuel production or consumption may have a material adverse effect on our revenues and operating margins
10. 10We intend to derive a significant portion of our revenues from sales of our renewable fuel in states with LCFS, however, adverse changes in the associated laws or reductions in the value of the applicable credits would harm our revenues and profits
11. 11A decline in the adoption rate of renewable energy or electrification, or a decline in the support by governments for renewable energy and electrification technologies, could materially harm our financial results and ability to grow our business
12. 12Our success will depend on acquiring, maintaining, and increasing feedstock supply commitments, as well as securing new customers and offtake agreements
13. 13Our margins will be dependent on the spread between the market prices for our renewable energy and the costs for our feedstocks, which may be volatile and can cause our results of operations to fluctuate substantially
14. 14Our operations depend on the availability of sufficient water supplies
15. 15Owning property and water rights and options on property and water rights carries inherent risks
16. 16We do not have proven or probable reserves, and there is no assurance that the quantities of minerals and metals we produce will be sufficient to recover our investment and operating costs
17. 17The cost of our exploration, development and acquisition activities is substantial, and there is no assurance that the quantities of minerals and metals we discover, acquire or recover will justify commercial operations or replace future reserves
18. 18Estimated costs and timing are uncertain, which may adversely affect our expected production and profitability
19. 19Resource and other material statements are estimates subject to uncertainty due to factors including market prices, and the inherent variability and recoverability of targeted natural resources in extraction and beneficiation processes
20. 20Market prices fluctuate and a downturn in our product's prices could negatively impact our operations and cash flow
21. 21Risk management transactions could significantly increase our operating costs and may not be effective
22. 22In addition to changes in prevailing commodity prices, our results of operations could be significantly affected by the volume, mix, and composition of the various wasted and unused natural resource feedstocks that we are targeting, all of which are subject to variance
23. 23If one or more of our facilities become inoperative, capacity constrained, or if operations are disrupted, our business, results of operations or financial condition could be materially adversely affected
24. 24We may experience increased costs or losses resulting from the hazards and uncertainties associated with mining
25. 25Our facilities and our customers' facilities will be subject to risks associated with fire, explosions, leaks, and natural disasters, which may disrupt our business and increase costs and liabilities
26. 26The dangers inherent in storage and transportation of our renewable energy could cause disruptions in our operations and could expose us to potentially significant losses, costs or liabilities
27. 27Increases in transportation costs or disruptions could have a material adverse effect on our business
28. 28Weather interruptions may affect, and delay proposed operations and impact our business plans
29. 29Disruptions in the supply of certain key inputs and components and other goods from our suppliers, including limited or single source suppliers, could have an adverse effect on the results of our business operations, and could damage our relationships with customers
30. 30We rely on contractors to conduct a significant portion of our operations and construction projects
31. 31problems of a contractor with managing its workforce, labor unrest or other employment issues
32. 32We operate in highly competitive industries and expect that competition will increase
33. 33Technological advances could render some or all our plans obsolete and adversely affect our ability to compete
34. 34Our business could be adversely affected if we are unable to protect our intellectual property, or others assert that our operations violate their intellectual property
35. 35The success of our business depends on our ability to continuously innovate and to manage transitions to new product innovations
36. 36The success of our business depends on evolving, highly technical, and uncommonly qualified technical resources that are becoming increasingly important to us. We will face significant competition in seeking and acquiring qualified, competent technical and systemically oriented employees
37. 37We may not be successful in developing our new products and services
38. 38If we fail to introduce new products in a timely manner, we may be unable to acquire and/or lose market share and be unable to achieve revenue growth targets
39. 39unanticipated engineering complexities
40. 40If we are unable to commercially release products that are accepted in the market or that generate significant revenues, our financial results will continue to suffer
41. 41Product defects or problems with integrating our and other products may seriously harm our business and reputation
42. 42We may encounter manufacturing or assembly problems for products, which would adversely affect our results of operations and financial condition
43. 43Unfavorable economic conditions may have a material adverse effect on our business, results of operations and financial condition
44. 44Natural disasters, unusually adverse weather, epidemic or pandemic outbreaks, boycotts and geopolitical events could materially adversely affect our business, results of operations or financial condition
45. 45Illiquidity of investments and assets could impede our ability to respond to changes in economic and other conditions
46. 46Our business requires substantial capital investment, and we may be unable to raise additional funding
47. 47Nevada law and our articles of incorporation and bylaws contain provisions that could delay or discourage takeover attempts that stockholders may consider favorable
48. 48the ability of the Board of Directors to issue, without stockholder approval, up to 50,000,000 shares of preferred stock with rights set by the Board of Directors, which rights could be senior to those of common stock
49. 49Our government grants are subject to uncertainty, which could harm our business and results of operations
50. 50Our industrial waste management services subject us to potential environmental liability
51. 51If we cannot maintain our government permits or cannot obtain any or certain required permits, we may not be able to continue or expand our operations
52. 52Changes in environmental regulations and enforcement policies could subject us to additional liability which could impair our ability to continue certain operations due to the regulated nature of our operations
53. 53As our operations expand, we may be subject to increased exposure to litigation which could have a negative impact on our future financial results
54. 54Our business and operations would suffer in the event of IT system failures or a cyber-attack
55. 55We may use artificial intelligence in our business, and challenges with properly managing its use could result in reputational harm, competitive harm, and legal liability, and adversely affect our results of operations
56. 56Our plans to expand our revenue sources through commercializing our market-ready technologies and developing new technology with commercial applicability may not be successful and could materially adversely affect our long-term business, financial condition and operating results
57. 57We face risks from doing business in international markets
58. 58Our current and future licensing arrangements may not be successful and may make us susceptible to the actions of third parties over whom we have limited control
59. 59maintain customer relationships
60. 60We face risks to our business and proprietary confidential information due to the use of artificial intelligence systems

LEGAL, REGULATORY AND COMPLIANCE RISKS

1. 61Our operations are subject to strict environmental laws and regulations, including regulations and pending legislation governing issues involving climate change, which could result in added costs of operations and operational delays, and could have a material adverse effect on our business
2. 62Failure to comply with governmental regulations, including EPA requirements relating to RFS II or new laws designed to deal with climate change, could result in the imposition of higher costs, penalties, fines, or restrictions on our operations and remedial liabilities
3. 63Our ability to execute our strategic plans often depend upon our success in obtaining required governmental approvals that may be opposed by third parties
4. 64Closure, reclamation, and rehabilitation costs could be higher than expected, and our insurance and surety bonds for environmental-related issues could be limited
5. 65We are subject to federal and state laws that require environmental assessments and the posting of bonds, which add significant costs to our operations and delays in our projects
6. 66We may be subject to litigation
7. 67Title claims against our properties could require us to compensate parties making such claims, if successful, and divert management ’ s time from operations
8. 68Mine operators are increasingly required to consider and provide benefits to their local communities

RISKS RELATED TO INVESTMENTS IN OUR COMMON STOCK

1. 69The price of our common stock has and may continue to fluctuate significantly, which could negatively affect the Company and holders of our common stock
2. 70anticipated or pending regulatory investigations, proceedings, or litigation that may involve or affect us; and
3. 71Our stock has historically been a penny stock with trading restricted by the SEC ’ s penny stock regulations, which may limit a stockholder ’ s ability to buy and sell our stock
4. 72If securities or industry analysts do not publish research, or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline
5. 73We may be delisted if we are unable to maintain the listing standards of the NYSE American stock exchange
6. 74We do not expect to pay any cash dividends for the foreseeable future
7. 75We may issue additional common stock or other equity securities in the future that could dilute the ownership interest of existing stockholders32% rewritten

RISKS RELATED TO STRATEGIC TRANSACTIONS

1. 76We may undertake joint ventures, investments, joint projects and other strategic alliances and such undertakings, as well as our existing joint ventures, may be unsuccessful and may have an adverse effect on our business
2. 77If we are unable to maintain existing or future strategic partnerships, or if these strategic partnerships are not successful, our business could be adversely affected
3. 78We have invested capital in high-risk mineral, metals and other natural resource projects where we have not conducted sufficient exploration, development and engineering studies
4. 79If we are unable to commercialize and release new products candidates that are accepted in the market or that generate significant revenues, our financial results will continue to suffer
5. 80Our success in development in the artificial intelligence for materials development industry depends on our ability to operate without infringing the patents and other proprietary rights of third parties
6. 81Our strategic partnerships rely on the availability of third-party intellectual property, which may not be accessible to us on reasonable terms or at all
7. 82Our business depends on a limited number of key personnel, the loss of whom could negatively affect us
8. 83Our business may be adversely affected by information technology disruptions, including materials-based AI
9. 84The Company may be required to take write-downs or write-offs, restructuring and impairment or other charges that could have a significant negative effect on its financial condition, results of operations and share price, which could cause you to lose some or all of your investment
10. 85Diversity in application of accounting literature in our industries may impact our reported financial results
11. 86Our ability to execute our strategic plan depends on many factors, some of which are beyond our control
12. 87Our lease payment obligations could adversely affect our operations, financial condition, cash flow, and operating flexibility48% rewritten
13. 88placing us at a competitive disadvantage compared to our competitors that have proportionately lower fixed lease commitments82% rewritten
14. 89Our lease agreements contain certain restrictive covenants and customary events of default. One or more of these restrictive covenants may limit our ability to execute our preferred business strategy, take advantage of business opportunities, or react to changing industry conditionsNew
15. 90The estimation of mineral reserves and mineral resources is imprecise and depends on subjective factors
16. 91Mineral resources do not have demonstrated economic value