|
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Nevada
|
|
1040
|
|
65-0955118
|
(State or other jurisdiction of
incorporation or organization)
|
|
(Primary Standard Industrial
Classification Code Number)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
Large accelerated filer
|
|
☐
|
|
Accelerated filer
|
|
☐
|
|
|
|
|
Non-accelerated filer
|
|
☒
|
|
Smaller reporting company
|
|
☒
|
|
|
|
|
|
|
|
|
Emerging growth company
|
|
☐
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
REVENUES
|
|
|
|
|
|
|
|
||||||||
Revenue - mining
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Revenue - real estate
|
48,375
|
|
|
44,184
|
|
|
96,800
|
|
|
81,782
|
|
||||
Total revenues
|
48,375
|
|
|
44,184
|
|
|
96,800
|
|
|
81,782
|
|
||||
|
|
|
|
|
|
|
|
||||||||
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
||||||||
Costs applicable to mining revenue
|
47,332
|
|
|
505,393
|
|
|
173,225
|
|
|
1,010,785
|
|
||||
Real estate operating costs
|
15,320
|
|
|
12,288
|
|
|
28,916
|
|
|
22,711
|
|
||||
Exploration and mine development
|
151,666
|
|
|
241,538
|
|
|
288,387
|
|
|
466,379
|
|
||||
Mine claims and costs
|
122,069
|
|
|
136,901
|
|
|
244,139
|
|
|
287,855
|
|
||||
Environmental and reclamation
|
30,972
|
|
|
(362,826
|
)
|
|
57,770
|
|
|
(308,349
|
)
|
||||
General and administrative
|
891,953
|
|
|
964,268
|
|
|
1,737,181
|
|
|
1,624,634
|
|
||||
Total costs and expenses
|
1,259,312
|
|
|
1,497,562
|
|
|
2,529,618
|
|
|
3,104,015
|
|
||||
|
|
|
|
|
|
|
|
||||||||
LOSS FROM OPERATIONS
|
(1,210,937
|
)
|
|
(1,453,378
|
)
|
|
(2,432,818
|
)
|
|
(3,022,233
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
OTHER INCOME (EXPENSE) (Note 17)
|
|
|
|
|
|
|
|
||||||||
Change in estimated fair value of contingent forward asset
|
351,091
|
|
|
—
|
|
|
1,413,382
|
|
|
—
|
|
||||
Interest expense
|
(91,656
|
)
|
|
(181,907
|
)
|
|
(142,244
|
)
|
|
(643,045
|
)
|
||||
Other income (expense)
|
2,227,488
|
|
|
(442,459
|
)
|
|
2,174,454
|
|
|
(247,531
|
)
|
||||
Total other income (expense), net
|
2,486,923
|
|
|
(624,366
|
)
|
|
3,445,592
|
|
|
(890,576
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
NET INCOME (LOSS)
|
1,275,986
|
|
|
(2,077,744
|
)
|
|
1,012,774
|
|
|
(3,912,809
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Less: net income (loss) attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMSTOCK MINING INC.
|
$
|
1,275,986
|
|
|
$
|
(2,077,744
|
)
|
|
$
|
1,012,774
|
|
|
$
|
(3,912,809
|
)
|
|
|
|
|
|
|
|
|
||||||||
Basic income per common share:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share
|
$
|
0.05
|
|
|
$
|
(0.13
|
)
|
|
$
|
0.04
|
|
|
$
|
(0.24
|
)
|
Weighted average common shares outstanding
|
28,253,242
|
|
|
16,594,983
|
|
|
27,758,899
|
|
|
16,199,927
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted income per common share:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share
|
$
|
0.05
|
|
|
$
|
(0.13
|
)
|
|
$
|
0.04
|
|
|
$
|
(0.24
|
)
|
Weighted average common shares outstanding
|
28,264,472
|
|
|
16,594,983
|
|
|
27,764,514
|
|
|
16,199,927
|
|
|
|
Preferred Stock
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Accumulated
Deficit
|
|
Noncontrolling interest in Subsidiary
|
|
|
|||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Total
|
|||||||||||||||
BALANCE - January 1, 2019
|
|
—
|
|
|
$
|
—
|
|
|
15,067,655
|
|
|
$
|
50,175
|
|
|
$
|
241,419,897
|
|
|
$
|
(232,085,170
|
)
|
|
$
|
—
|
|
|
$
|
9,384,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Issuance of common stock
|
|
—
|
|
|
—
|
|
|
1,090,400
|
|
|
3,631
|
|
|
809,930
|
|
|
—
|
|
|
—
|
|
|
813,561
|
|
|||||||
Common stock issuance costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(85,093
|
)
|
|
—
|
|
|
—
|
|
|
(85,093
|
)
|
|||||||
Net Loss
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,835,065
|
)
|
|
—
|
|
|
(1,835,065
|
)
|
||||||
BALANCE - March 31, 2019
|
|
0
|
|
|
$
|
—
|
|
|
16,158,055
|
|
|
$
|
53,806
|
|
|
$
|
242,144,734
|
|
|
$
|
(233,920,235
|
)
|
|
$
|
—
|
|
|
$
|
8,278,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Issuance of common stock
|
|
—
|
|
|
—
|
|
|
941,945
|
|
|
3,137
|
|
|
921,621
|
|
|
—
|
|
|
—
|
|
|
924,758
|
|
|||||||
Common stock issuance costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(374,885
|
)
|
|
—
|
|
|
—
|
|
|
(374,885
|
)
|
|||||||
Issuance of convertible preferred stock
|
|
1,274
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1,514,999
|
|
|
—
|
|
|
—
|
|
|
1,515,000
|
|
|||||||
Net Loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,077,744
|
)
|
|
—
|
|
|
(2,077,744
|
)
|
|||||||
BALANCE - June 30, 2019
|
|
1,274
|
|
|
$
|
1
|
|
|
17,100,000
|
|
|
$
|
56,943
|
|
|
$
|
244,206,469
|
|
|
$
|
(235,997,979
|
)
|
|
$
|
—
|
|
|
$
|
8,265,434
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
Preferred Stock
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Accumulated
Deficit
|
|
Noncontrolling interest in Subsidiary
|
|
|
|||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Total
|
|||||||||||||||
BALANCE - January 1, 2020
|
|
—
|
|
|
$
|
—
|
|
|
27,236,489
|
|
|
$
|
18,139
|
|
|
$
|
259,095,152
|
|
|
$
|
(235,890,272
|
)
|
|
$
|
269,541
|
|
|
$
|
23,492,560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Issuance of common stock
|
|
—
|
|
|
—
|
|
|
638,511
|
|
|
425
|
|
|
242,196
|
|
|
—
|
|
|
—
|
|
|
242,621
|
|
|||||||
Common stock issuance costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50,070
|
)
|
|
—
|
|
|
—
|
|
|
(50,070
|
)
|
|||||||
Initial value of contingent forward
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,232,952
|
|
|
—
|
|
|
—
|
|
|
1,232,952
|
|
|||||||
Sale of membership interests in Comstock Mining, LLC
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100,000
|
|
|
—
|
|
|
—
|
|
|
100,000
|
|
|||||||
Net (Loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(263,212
|
)
|
|
—
|
|
|
(263,212
|
)
|
|||||||
BALANCE - March 31, 2020
|
|
—
|
|
|
$
|
—
|
|
|
27,875,000
|
|
|
$
|
18,564
|
|
|
$
|
260,620,230
|
|
|
$
|
(236,153,484
|
)
|
|
$
|
269,541
|
|
|
$
|
24,754,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Investment in Mercury Clean Up LLC
|
|
—
|
|
|
—
|
|
|
625,000
|
|
|
416
|
|
|
314,271
|
|
|
—
|
|
|
—
|
|
|
314,687
|
|
|||||||
Director compensation
|
|
—
|
|
|
—
|
|
|
315,000
|
|
|
210
|
|
|
176,190
|
|
|
—
|
|
|
—
|
|
|
176,400
|
|
|||||||
Investment in Pelen LLC
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
585,000
|
|
|
—
|
|
|
—
|
|
|
585,000
|
|
|||||||
Employee share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,849
|
|
|
—
|
|
|
—
|
|
|
27,849
|
|
|||||||
Sale of membership interests in Comstock Mining, LLC
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
475,384
|
|
|
—
|
|
|
24,616
|
|
|
500,000
|
|
|||||||
Net Income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,275,986
|
|
|
—
|
|
|
1,275,986
|
|
|||||||
BALANCE - June 30, 2020
|
|
—
|
|
|
$
|
—
|
|
|
28,815,000
|
|
|
$
|
19,190
|
|
|
$
|
262,198,924
|
|
|
$
|
(234,877,498
|
)
|
|
$
|
294,157
|
|
|
$
|
27,634,773
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, |
||||||
|
2020
|
|
2019
|
||||
OPERATING ACTIVITIES:
|
|
|
|
||||
Net income (loss)
|
$
|
1,012,774
|
|
|
$
|
(3,912,809
|
)
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
||||
Depreciation, amortization, and depletion
|
315,670
|
|
|
1,173,861
|
|
||
(Reduction) accretion of reclamation liability
|
10,355
|
|
|
(398,598
|
)
|
||
Gain on sale of properties, plant, and equipment
|
(100,000
|
)
|
|
(3,125
|
)
|
||
Amortization of debt discounts and issuance costs
|
78,586
|
|
|
130,373
|
|
||
Net loss on early retirement of long-term debt
|
5,163
|
|
|
176,639
|
|
||
Payment-in-kind interest expense
|
—
|
|
|
470,246
|
|
||
Share-based compensation cost
|
204,249
|
|
|
—
|
|
||
Change in make-whole liabilities
|
(162,711
|
)
|
|
(100,216
|
)
|
||
Preferred shares issuance expense
|
—
|
|
|
432,000
|
|
||
Realized gain on sale of Tonogold common shares
|
(23,740
|
)
|
|
—
|
|
||
Unrealized gain - Tonogold shares
|
(1,335,929
|
)
|
|
—
|
|
||
Change in estimated fair value of contingent forward asset
|
(1,413,382
|
)
|
|
—
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Prepaid expenses and other assets
|
(213,664
|
)
|
|
(77,699
|
)
|
||
Accounts payable
|
166,336
|
|
|
197,131
|
|
||
Accrued expenses and other liabilities
|
(269,336
|
)
|
|
263,483
|
|
||
Deposits
|
1,344,405
|
|
|
—
|
|
||
NET CASH USED IN OPERATING ACTIVITIES
|
(381,224
|
)
|
|
(1,648,714
|
)
|
||
INVESTING ACTIVITIES:
|
|
|
|
||||
Proceeds from principal payment on note receivable
|
276
|
|
|
217
|
|
||
Proceeds from sale of mineral rights and properties, plant, and equipment
|
100,000
|
|
|
3,125
|
|
||
Proceeds from deposits on Membership Interest Purchase Agreement
|
600,000
|
|
|
3,050,000
|
|
||
Proceeds from deposits on the sale of non-mining assets to Sierra Springs
|
100,000
|
|
|
—
|
|
||
Proceeds from sale of Tonogold common shares
|
43,013
|
|
|
—
|
|
||
Purchase of mineral rights, mining leases and properties, plant and equipment
|
(11,000
|
)
|
|
(1,085,000
|
)
|
||
Deposits for Mercury Clean Up investment
|
(250,000
|
)
|
|
—
|
|
||
Advance to Sierra Springs Opportunity Fund, Inc.
|
(140,000
|
)
|
|
—
|
|
||
Investment in Pelen LLC
|
(17,500
|
)
|
|
—
|
|
||
Change in reclamation bond deposit
|
(6,611
|
)
|
|
(46,667
|
)
|
||
NET CASH PROVIDED BY INVESTING ACTIVITIES
|
418,178
|
|
|
1,921,675
|
|
||
FINANCING ACTIVITIES:
|
|
|
|
||||
Principal payments on long-term debt
|
(277,151
|
)
|
|
(1,903,334
|
)
|
||
Proceeds from the issuance of common stock
|
242,621
|
|
|
1,489,029
|
|
||
Common stock issuance costs
|
(50,070
|
)
|
|
(210,688
|
)
|
||
NET CASH USED IN FINANCING ACTIVITIES
|
(84,600
|
)
|
|
(624,993
|
)
|
||
DECREASE IN CASH AND CASH EQUIVALENTS
|
(47,646
|
)
|
|
(352,032
|
)
|
||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
1,015,857
|
|
|
488,657
|
|
||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
968,211
|
|
|
$
|
136,625
|
|
|
|
|
|
||||
SUPPLEMENTAL CASH FLOW INFORMATION:
|
|
|
|
||||
Cash paid for interest
|
$
|
280,831
|
|
|
$
|
55,588
|
|
|
Six Months Ended
June 30, |
||||||
|
2020
|
|
2019
|
||||
Supplemental disclosure of non-cash operating, investing and financing activities:
|
|
|
|
||||
Issuance of common shares for MCU make whole liability
|
$
|
314,687
|
|
|
$
|
—
|
|
Issuance of common shares to purchase Pelen LLC membership interest
|
$
|
585,000
|
|
|
$
|
—
|
|
Advance payment of Membership Interest Purchase Agreement (Note 19)
|
$
|
—
|
|
|
$
|
4,995,000
|
|
Common stock issuance costs
|
$
|
—
|
|
|
$
|
250,000
|
|
Transfer of mineral rights and properties to assets held for sale
|
$
|
—
|
|
|
$
|
1,539,197
|
|
Issuance of preferred shares
|
$
|
—
|
|
|
$
|
1,083,000
|
|
Preferred share receivable
|
$
|
—
|
|
|
$
|
1,083,000
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||
DTSS (Land)
|
$
|
3,589,876
|
|
|
$
|
3,589,876
|
|
Industrial Park (Land and water rights)
|
2,738,462
|
|
|
2,738,462
|
|
||
Daney Ranch (Land and buildings)
|
2,146,575
|
|
|
2,146,575
|
|
||
Lucerne Mine (Mineral rights and properties) (Note 19)
|
1,539,197
|
|
|
1,539,197
|
|
||
Lucerne Properties (Reclamation asset, net)
|
19,590
|
|
|
19,590
|
|
||
Gold Hill Hotel (Land and buildings)
|
478,366
|
|
|
478,366
|
|
||
Total assets held for sale
|
$
|
10,512,066
|
|
|
$
|
10,512,066
|
|
|
June 30, 2020
|
|
|
December 31, 2019
|
|
||
Lucerne Properties (Reclamation liabilities)
|
$
|
1,019,705
|
|
|
$
|
1,019,705
|
|
Total liabilities held for sale
|
$
|
1,019,705
|
|
|
$
|
1,019,705
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||
Land and property deposits
|
$
|
10,100
|
|
|
$
|
10,100
|
|
Deposit for Mercury Clean Up
|
1,751,050
|
|
|
1,501,050
|
|
||
Surety bond and insurance
|
169,043
|
|
|
110,558
|
|
||
Advance to Sierra Springs Opportunity Fund
|
140,000
|
|
|
—
|
|
||
Permit bond
|
100,000
|
|
|
—
|
|
||
Investor relations subscription
|
39,694
|
|
|
—
|
|
||
Other
|
257,371
|
|
|
199,919
|
|
||
Total prepaid expenses and other current assets
|
$
|
2,467,258
|
|
|
$
|
1,821,627
|
|
|
June 30, 2020
|
|
|
December 31, 2019
|
|
||
Dayton resource area
|
$
|
2,932,226
|
|
|
$
|
2,932,226
|
|
Occidental area
|
1,002,172
|
|
|
1,002,172
|
|
||
Spring Valley area
|
810,000
|
|
|
810,000
|
|
||
Oest area
|
260,707
|
|
|
260,707
|
|
||
Northern extension
|
157,205
|
|
|
157,205
|
|
||
Northern targets
|
121,170
|
|
|
121,170
|
|
||
Other mineral properties
|
317,405
|
|
|
317,405
|
|
||
Water rights
|
90,000
|
|
|
90,000
|
|
||
Total mineral rights and properties
|
$
|
5,690,885
|
|
|
$
|
5,690,885
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||
Land and building
|
$
|
9,140,805
|
|
|
$
|
9,140,805
|
|
Vehicle and equipment
|
2,267,916
|
|
|
2,267,916
|
|
||
Processing and laboratory
|
21,113,177
|
|
|
21,113,177
|
|
||
Furniture and fixtures
|
549,860
|
|
|
549,860
|
|
||
|
33,071,758
|
|
|
33,071,758
|
|
||
Less accumulated depreciation
|
(25,420,263
|
)
|
|
(25,136,737
|
)
|
||
Total properties, plant and equipment
|
$
|
7,651,495
|
|
|
$
|
7,935,021
|
|
|
Six Months Ended
|
|
Twelve Months
Ended
|
||||
|
June 30, 2020
|
|
December 31, 2019
|
||||
Retirement obligation asset — beginning of period
|
$
|
115,926
|
|
|
$
|
203,274
|
|
Additional obligations incurred
|
—
|
|
|
—
|
|
||
Amounts reclassified to assets held for sale
|
—
|
|
|
(19,590
|
)
|
||
Amortization of retirement obligation asset
|
(28,981
|
)
|
|
(67,758
|
)
|
||
Retirement obligation asset — end of period
|
$
|
86,945
|
|
|
$
|
115,926
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||
Accrued make-whole for Mercury Clean Up LLC (Note 18)
|
$
|
—
|
|
|
$
|
452,740
|
|
Accrued interest expense
|
252,059
|
|
|
264,268
|
|
||
Accrued insurance liabilities
|
41,288
|
|
|
—
|
|
||
Accrued Northern Comstock Joint Venture
|
407,083
|
|
|
180,833
|
|
||
Accrued payroll costs
|
144,450
|
|
|
165,543
|
|
||
Accrued make-whole for Pelen LLC (Note 18)
|
—
|
|
|
222,602
|
|
||
Accrued Board of Directors fees
|
90,000
|
|
|
120,000
|
|
||
Accrued vendor liabilities
|
140,604
|
|
|
309,515
|
|
||
Other accrued expenses
|
59,479
|
|
|
139,930
|
|
||
Total accrued expenses and other liabilities
|
$
|
1,134,963
|
|
|
$
|
1,855,431
|
|
|
June 30, 2020
|
|
|
December 31, 2019
|
|
|||
Deposits toward sale of non-mining assets
|
$
|
410,100
|
|
|
$
|
310,100
|
|
|
Prepaid Tonogold expense reimbursements
|
1,071,732
|
|
|
—
|
|
|||
Prepayment of placement proceeds
|
205,000
|
|
|
—
|
|
|||
Paycheck Protection Program grant
|
67,624
|
|
|
—
|
|
|||
Lease income
|
8,334
|
|
|
8,284
|
|
|||
Total deposits
|
$
|
1,762,790
|
|
|
$
|
318,384
|
|
Note Description
|
June 30, 2020
|
|
December 31, 2019
|
||||
Senior Secured Debenture (GF Comstock 2) - 11% interest, due Dec 2020.
|
$
|
4,756,901
|
|
|
$
|
4,929,277
|
|
Note Payable (Caterpillar Financial Services) - 5.75% interest.
|
541,116
|
|
|
645,891
|
|
||
Total debt
|
5,298,017
|
|
|
5,575,168
|
|
||
Less: long-term debt discounts and issuance costs
|
(79,344
|
)
|
|
(163,094
|
)
|
||
Total debt, net of discounts and issuance costs
|
5,218,673
|
|
|
5,412,074
|
|
||
Less: current maturities
|
(5,032,252
|
)
|
|
(328,068
|
)
|
||
Long-term debt, net of discounts and issuance costs
|
$
|
186,421
|
|
|
$
|
5,084,006
|
|
|
Six Months Ended
|
|
Twelve Months
Ended
|
||||
|
June 30, 2020
|
|
December 31, 2019
|
||||
Long-term reclamation liability — beginning of period
|
$
|
6,034,208
|
|
|
$
|
7,441,091
|
|
Reduction of obligation
|
—
|
|
|
(410,018
|
)
|
||
Amount reclassified to liabilities held for sale
|
—
|
|
|
(1,019,705
|
)
|
||
Accretion of reclamation liability
|
10,355
|
|
|
22,840
|
|
||
Long-term reclamation liability — end of period
|
$
|
6,044,563
|
|
|
$
|
6,034,208
|
|
Cash paid for amounts included in the measurement of lease liabilities
|
$
|
4,500
|
|
|
Right-of-use assets obtained in exchange for operating lease obligations
|
$
|
1,978
|
|
Lease Assets and Liabilities
|
Classification
|
|
June 30, 2020
|
||
Operating lease right-of-use asset
|
Other assets
|
|
$
|
53,353
|
|
|
|
|
|
||
Operating lease liability - current
|
Accrued expenses and other liabilities
|
|
$
|
3,310
|
|
Operating lease liability - long-term
|
Other liabilities
|
|
51,691
|
|
|
Total operating lease liabilities
|
|
|
$
|
55,001
|
|
Remainder of 2020
|
|
$
|
4,550
|
|
2021
|
|
9,350
|
|
|
2022
|
|
9,650
|
|
|
2023
|
|
9,950
|
|
|
2024
|
|
10,250
|
|
|
Thereafter
|
|
42,050
|
|
|
Total operating lease payments
|
|
85,800
|
|
|
Less: Imputed interest
|
|
30,799
|
|
|
Present value of lease liabilities
|
|
$
|
55,001
|
|
|
Six Months Ended
|
|
Six Months Ended
|
||||
|
June 30, 2020
|
|
June 30, 2019
|
||||
Number of shares sold
|
638,511
|
|
|
2,032,345
|
|
||
|
|
|
|
||||
Gross cash proceeds
|
$
|
242,621
|
|
|
$
|
1,738,319
|
|
Fees
|
50,070
|
|
|
459,978
|
|
||
Net proceeds
|
$
|
192,551
|
|
|
$
|
1,278,341
|
|
|
|
|
|
||||
Average price per share
|
$
|
0.38
|
|
|
$
|
0.86
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Comstock Mining Inc.
|
$
|
1,275,986
|
|
|
$
|
(2,077,744
|
)
|
|
$
|
1,012,774
|
|
|
$
|
(3,912,809
|
)
|
|
|
|
|
|
|
|
|
||||||||
Denominator:
|
|
|
|
|
|
|
|
||||||||
Basic and diluted weighted average shares outstanding
|
28,253,242
|
|
|
16,594,983
|
|
|
27,758,899
|
|
|
16,199,927
|
|
||||
Incremental shares
|
11,231
|
|
|
—
|
|
|
5,615
|
|
|
—
|
|
||||
Diluted weighted average shares outstanding
|
28,264,472
|
|
|
16,594,983
|
|
|
27,764,514
|
|
|
16,199,927
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share:
|
|
|
|
|
|
|
|
||||||||
Basic EPS
|
$
|
0.05
|
|
|
$
|
(0.13
|
)
|
|
$
|
0.04
|
|
|
$
|
(0.24
|
)
|
Diluted EPS
|
$
|
0.05
|
|
|
$
|
(0.13
|
)
|
|
$
|
0.04
|
|
|
$
|
(0.24
|
)
|
|
|
|
Fair Value Measurements at
|
||||||||||||
|
|
|
June 30, 2020
|
||||||||||||
|
Total
|
|
Quoted
Prices
in Active
Markets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Convertible preferred shares of Tonogold (Note 19)
|
$
|
7,935,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,935,000
|
|
Common shares of Tonogold (Note 19)
|
2,461,656
|
|
|
2,461,656
|
|
|
—
|
|
|
—
|
|
||||
Contingent forward asset
|
2,646,334
|
|
|
—
|
|
|
—
|
|
|
2,646,334
|
|
||||
Total Assets
|
$
|
13,042,990
|
|
|
$
|
2,461,656
|
|
|
$
|
—
|
|
|
$
|
10,581,334
|
|
|
|
|
Fair Value Measurements at
|
||||||||||||
|
|
|
December 31, 2019
|
||||||||||||
|
Total
|
|
Quoted
Prices
in Active
Markets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Convertible preferred shares of Tonogold (Note 19)
|
$
|
9,080,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,080,000
|
|
Total Assets
|
$
|
9,080,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,080,000
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accrued make-whole for Pelen LLC (Note 18)
|
$
|
222,602
|
|
|
$
|
—
|
|
|
$
|
222,602
|
|
|
$
|
—
|
|
Accrued make-whole for Mercury Clean Up LLC (Note 18)
|
452,740
|
|
|
—
|
|
|
452,740
|
|
|
—
|
|
||||
Total Liabilities
|
$
|
675,342
|
|
|
$
|
—
|
|
|
$
|
675,342
|
|
|
$
|
—
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Beginning balance
|
$
|
11,090,243
|
|
|
$
|
—
|
|
|
$
|
9,080,000
|
|
|
$
|
—
|
|
Total gains or losses recognized in earnings
|
591,091
|
|
|
—
|
|
|
1,368,382
|
|
|
—
|
|
||||
Additions
|
|
|
4,995,000
|
|
|
1,232,952
|
|
|
4,995,000
|
|
|||||
Transfers to Level 1
|
(1,100,000
|
)
|
|
—
|
|
|
(1,100,000
|
)
|
|
—
|
|
||||
Ending balance
|
$
|
10,581,334
|
|
|
$
|
4,995,000
|
|
|
$
|
10,581,334
|
|
|
$
|
4,995,000
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Revenue
|
|
|
|
|
|
|
|
||||||||
Mining
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Real estate
|
48,375
|
|
|
44,184
|
|
|
96,800
|
|
|
81,782
|
|
||||
Total revenue
|
48,375
|
|
|
44,184
|
|
|
96,800
|
|
|
81,782
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Costs and Expenses
|
|
|
|
|
|
|
|
||||||||
Mining
|
(1,243,992
|
)
|
|
(1,485,274
|
)
|
|
(2,500,702
|
)
|
|
(3,081,304
|
)
|
||||
Real estate
|
(15,320
|
)
|
|
(12,288
|
)
|
|
(28,916
|
)
|
|
(22,711
|
)
|
||||
Total costs and expenses
|
(1,259,312
|
)
|
|
(1,497,562
|
)
|
|
(2,529,618
|
)
|
|
(3,104,015
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating Income (Loss)
|
|
|
|
|
|
|
|
||||||||
Mining
|
(1,243,992
|
)
|
|
(1,485,274
|
)
|
|
(2,500,702
|
)
|
|
(3,081,304
|
)
|
||||
Real estate
|
33,055
|
|
|
31,896
|
|
|
67,884
|
|
|
59,071
|
|
||||
Total loss from operations
|
(1,210,937
|
)
|
|
(1,453,378
|
)
|
|
(2,432,818
|
)
|
|
(3,022,233
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Change in estimated fair value of contingent forward
|
351,091
|
|
|
—
|
|
|
1,413,382
|
|
|
—
|
|
||||
Interest expense
|
(91,656
|
)
|
|
(181,907
|
)
|
|
(142,244
|
)
|
|
(643,045
|
)
|
||||
Other income (expense) (Note 17)
|
2,227,488
|
|
|
(442,459
|
)
|
|
2,174,454
|
|
|
(247,531
|
)
|
||||
Net income (loss)
|
$
|
1,275,986
|
|
|
$
|
(2,077,744
|
)
|
|
$
|
1,012,774
|
|
|
$
|
(3,912,809
|
)
|
|
|
|
|
|
|
|
|
||||||||
Capital Expenditures
|
|
|
|
|
|
|
|
||||||||
Mining
|
$
|
11,000
|
|
|
$
|
—
|
|
|
$
|
11,000
|
|
|
$
|
—
|
|
Real estate
|
—
|
|
|
720,000
|
|
|
—
|
|
|
1,085,000
|
|
||||
Total capital expenditures
|
$
|
11,000
|
|
|
$
|
720,000
|
|
|
$
|
11,000
|
|
|
$
|
1,085,000
|
|
|
|
|
|
|
|
|
|
||||||||
Depreciation, Amortization, and Depletion
|
|
|
|
|
|
|
|
||||||||
Mining
|
$
|
110,268
|
|
|
$
|
584,475
|
|
|
$
|
303,751
|
|
|
$
|
1,168,931
|
|
Real estate
|
5,960
|
|
|
2,465
|
|
|
11,919
|
|
|
4,930
|
|
||||
Total depreciation, amortization, and depletion
|
$
|
116,228
|
|
|
$
|
586,940
|
|
|
$
|
315,670
|
|
|
$
|
1,173,861
|
|
|
As of June 30,
|
|
As of December 31,
|
||||
|
2020
|
|
2019
|
||||
Assets
|
|
|
|
||||
Mining
|
$
|
34,902,878
|
|
|
$
|
30,106,865
|
|
Real estate
|
9,498,170
|
|
|
9,463,027
|
|
||
Total assets
|
$
|
44,401,048
|
|
|
$
|
39,569,892
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Change in estimated fair value of contingent forward
|
$
|
351,091
|
|
|
$
|
—
|
|
|
$
|
1,413,382
|
|
|
$
|
—
|
|
Interest expense
|
(91,656
|
)
|
|
(181,907
|
)
|
|
(142,244
|
)
|
|
(643,045
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Interest income
|
179,558
|
|
|
13,239
|
|
|
186,026
|
|
|
62,275
|
|
||||
Mining lease income
|
10,000
|
|
|
—
|
|
|
20,000
|
|
|
—
|
|
||||
Unrealized gain on Tonogold shares
|
1,620,929
|
|
|
—
|
|
|
1,335,929
|
|
|
—
|
|
||||
Realized gain on sale of Tonogold shares
|
23,740
|
|
|
—
|
|
|
23,740
|
|
|
—
|
|
||||
Preferred shares issuance cost
|
—
|
|
|
(432,000
|
)
|
|
—
|
|
|
(432,000
|
)
|
||||
Make whole obligations
|
198,487
|
|
|
(34,946
|
)
|
|
162,711
|
|
|
100,216
|
|
||||
Recognition of PPP proceeds
|
193,546
|
|
|
—
|
|
|
193,546
|
|
|
—
|
|
||||
Gain on sale of assets and mining claims
|
—
|
|
|
6,250
|
|
|
100,000
|
|
|
6,250
|
|
||||
Reimbursement from Tonogold
|
—
|
|
|
—
|
|
|
150,000
|
|
|
—
|
|
||||
All other
|
1,228
|
|
|
4,998
|
|
|
2,502
|
|
|
15,728
|
|
||||
Total other income (expense)
|
2,227,488
|
|
|
(442,459
|
)
|
|
2,174,454
|
|
|
(247,531
|
)
|
||||
Total other income (expense), net
|
$
|
2,486,923
|
|
|
$
|
(624,366
|
)
|
|
$
|
3,445,592
|
|
|
$
|
(890,576
|
)
|
|
|
Six Months Ended June 30,
|
||||
|
|
2020
|
|
2019
|
||
Shares outstanding as of beginning of period
|
|
27,236,489
|
|
|
15,067,655
|
|
Shares issued for:
|
|
|
|
|
||
Equity issue agreements
|
|
638,511
|
|
|
2,032,345
|
|
Investment in Mercury Clean Up LLC
|
|
625,000
|
|
|
—
|
|
Director compensation
|
|
315,000
|
|
|
—
|
|
Shares outstanding as of end of period
|
|
28,815,000
|
|
|
17,100,000
|
|
|
June 30, 2020
|
|
June 30, 2019
|
|
Change
|
||||||
Revenue - mining
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Revenue - real estate
|
48,375
|
|
|
44,184
|
|
|
4,191
|
|
|||
|
|
|
|
|
|
|
|||||
Costs applicable to mining revenue
|
47,332
|
|
|
505,393
|
|
|
(458,061
|
)
|
|||
Real estate operating costs
|
15,320
|
|
|
12,288
|
|
|
3,032
|
|
|||
Exploration and mine development
|
151,666
|
|
|
241,538
|
|
|
(89,872
|
)
|
|||
Mine claims and costs
|
122,069
|
|
|
136,901
|
|
|
(14,832
|
)
|
|||
Environmental and reclamation
|
30,972
|
|
|
(362,826
|
)
|
|
393,798
|
|
|||
General and administrative
|
891,953
|
|
|
964,268
|
|
|
(72,315
|
)
|
|||
Total costs and expenses
|
1,259,312
|
|
|
1,497,562
|
|
|
(238,250
|
)
|
|||
|
|
|
|
|
|
||||||
Loss from operations
|
(1,210,937
|
)
|
|
(1,453,378
|
)
|
|
242,441
|
|
|||
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
||||||
Change in estimated fair value of contingent forward
|
351,091
|
|
|
—
|
|
|
351,091
|
|
|||
Interest expense
|
(91,656
|
)
|
|
(181,907
|
)
|
|
90,251
|
|
|||
Other income (expense)
|
2,227,488
|
|
|
(442,459
|
)
|
|
2,669,947
|
|
|||
Other income (expense), net
|
2,486,923
|
|
|
(624,366
|
)
|
|
3,111,289
|
|
|||
NET INCOME (LOSS)
|
$
|
1,275,986
|
|
|
$
|
(2,077,744
|
)
|
|
$
|
3,353,730
|
|
|
June 30, 2020
|
|
June 30, 2019
|
|
Change
|
||||||
Revenue - mining
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Revenue - real estate
|
96,800
|
|
|
81,782
|
|
|
15,018
|
|
|||
|
|
|
|
|
|
||||||
Costs applicable to mining revenue
|
173,225
|
|
|
1,010,785
|
|
|
(837,560
|
)
|
|||
Real estate operating costs
|
28,916
|
|
|
22,711
|
|
|
6,205
|
|
|||
Exploration and mine development
|
288,387
|
|
|
466,379
|
|
|
(177,992
|
)
|
|||
Mine claims and costs
|
244,139
|
|
|
287,855
|
|
|
(43,716
|
)
|
|||
Environmental and reclamation
|
57,770
|
|
|
(308,349
|
)
|
|
366,119
|
|
|||
General and administrative
|
1,737,181
|
|
|
1,624,634
|
|
|
112,547
|
|
|||
Total costs and expenses
|
2,529,618
|
|
|
3,104,015
|
|
|
(574,397
|
)
|
|||
|
|
|
|
|
|
||||||
Loss from operations
|
(2,432,818
|
)
|
|
(3,022,233
|
)
|
|
589,415
|
|
|||
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
||||||
Change in estimated fair value of contingent forward asset
|
1,413,382
|
|
|
—
|
|
|
1,413,382
|
|
|||
Interest expense
|
(142,244
|
)
|
|
(643,045
|
)
|
|
500,801
|
|
|||
Other income (expense)
|
2,174,454
|
|
|
(247,531
|
)
|
|
2,421,985
|
|
|||
Other income (expense), net
|
3,445,592
|
|
|
(890,576
|
)
|
|
4,336,168
|
|
|||
NET INCOME (LOSS)
|
$
|
1,012,774
|
|
|
$
|
(3,912,809
|
)
|
|
$
|
4,925,583
|
|
|
|
|
|
|
|
|
|
Exhibit
Number
|
|
Exhibit
|
|
|
|
10.1
|
|
|
|
|
|
31*
|
|
|
|
|
|
32*
|
|
|
|
|
|
95*
|
|
|
|
|
|
101*
|
|
Interactive Data File (Quarterly Report on Form 10-Q, for the periods ended June 30, 2020, furnished in XBRL (extensible Business Reporting Language)).
|
|
|
|
|
|
Attached as Exhibit 101 to this report are the following documents formatted in XBRL: (i) the Condensed Consolidated Balance Sheets at June 30, 2020 and December 31, 2019, (ii) the Condensed Consolidated Statements of Operations for the three months ended June 30, 2020 and 2019, (iii) the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2020 and 2019 and (iv) the Notes to the Condensed Consolidated Financial Statements, tagged as blocks of text. Users of this data are advised pursuant to Rule 406T of Regulation S-T that this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities and Exchange Act of 1934, and otherwise is not subject to liability under these sections.
|
|
|
COMSTOCK MINING INC.
|
|
|
|
(Registrant)
|
|
|
|
|
|
Date:
|
August 13, 2020
|
By:
|
/s/ Corrado De Gasperis
|
|
|
|
Name: Corrado De Gasperis
|
|
|
|
Title: Executive Chairman and Chief Executive Officer (Principal Executive, Financial, and Accounting Officer)
|
|
|
|
|
/s/ Corrado De Gasperis
|
|
Corrado De Gasperis
|
|
Executive Chairman and Chief Executive Officer (Principal Executive, Financial, and Accounting Officer)
|
/s/ Corrado De Gasperis
|
|
Corrado De Gasperis
|
|
Executive Chairman and Chief Executive Officer (Principal Executive, Financial, and Accounting Officer)
|
Mining
Operating
Name
MSHA
Identification
Number
|
|
Section
104S&S
Citations
|
|
Section
104(b)
Orders
|
|
Section
104(d)
Citations
and
Orders
|
|
Section
110(b)(2)
Violations
|
|
Section
107(a)
Orders
|
|
Total Dollar
Value of
MSHA
Assessments
Proposed
|
|
Total
Number
Of Mining
Related
Fatalities
|
|
Received
Notice of
Pattern of
Violations
Under
104(3)
|
|
Received
Notice of
Potential
to Have
Pattern of
Violations
Under
Sections
104(3)
|
|
Legal
Actions
Pending
as of
Last
Day of
Period
|
|
Legal
Actions
Initiated
During
Period
|
|
Legal
Actions
Resolved
During
Period
|
||||||||||
26-01871
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
No
|
|
No
|
|
No
|
|
—
|
|
|
—
|
|
26-02771
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
No
|
|
No
|
|
No
|
|
—
|
|
|
—
|
|