NOTE 4                  PROPERTIES, PLANT AND EQUIPMENT, NET AND MINERAL RIGHTS

Properties, plant and equipment at March 31, 2025 and  December 31, 2024 include the following:

During the three-months ended March 31, 2025 and 2024, we recognized depreciation expense of $147,680 and $139,938, respectively. At March 31, 2025 and December 31, 2024, the Company had $12,676,860 and $433,411, respectively, of properties, plant and equipment that were not yet placed in service and have not yet begun depreciating.

Marathon Payment-In Kind Assets 

On February 28, 2025, the Company, entered into a series of definitive agreements with Virent, Inc. (“Virent”), a wholly owned subsidiary of Marathon Petroleum Corporation (“Marathon”) (see Notes 9 and 11). Pursuant to the agreements, the Company received assets comprised of equipment and other materials as payment-in-kind in return for a Simple Agreement For Equity (“Marathon SAFE”) located at Marathon’s former renewable fuel demonstration facility in Madison, Wisconsin. The Company accounted for the payment-in-kind as an asset purchase acquisition and recorded payment-in-kind assets plus any direct transaction costs at the estimated relative fair value of the future equity consideration granted through the Marathon SAFE Note. As of February 28, 2025, the assets were transferred and the Company recorded at fair value of $12.0 million classified in properties, plant and equipment on our condensed consolidated balance sheet. At March 31, 2025, the payment-in-kind assets were not yet placed in service and have not yet begun depreciating.

Mineral Rights and Properties

Our mineral rights and properties at March 31, 2025 and  December 31, 2024 consisted of the following: 

The Comstock Mineral Estate includes all of the Company's resource areas and exploration targets. During the three-months ended March 31, 2025 and 2024, we did not record any depletion expense, as none of the mineral properties are currently in production. Our mineral exploration and mining lease payments are classified as selling, general and administrative expenses in the condensed consolidated statements of operations.

On December 18, 2024, the Company executed a binding membership interest purchase agreement (the “Mackay MIPA”) with Mackay pursuant to which the Company sold all of its right, title, and interest in its wholly owned subsidiary Comstock Northern Exploration LLC, and the Company's 25% interest in Pelen Limited Liability Company to Mackay, for an aggregate purchase price of $2,750,000, of which $1,000,000 was paid in cash in 2024, with another $1,750,000 remaining due and payable in cash and stock that is classified in accounts receivable on our condensed consolidated balance sheet. For the year ended December 31, 2024, the Company recognized a gain on the sale of these mineral rights of $0.8 million. 

Pursuant to and as defined in the NSR Royalty Agreement between the Company and Mackay, also dated December 18, 2024 (the “Mackay Royalty Agreement”) the Company is to receive a 1.5% royalty of Net Smelter Returns. On December 18, 2024, the Company and Mackay mutually agreed to terminate the Mineral Exploration and Mining Lease Agreement (“Mackay Mining Lease”).

For the three-months ended March 31, 2024, the Company recorded revenue of $390,625 related to the Mackay Mining Lease which included the quarterly lease payments of $375,000 and amortization of the lease initiation fee of $15,625. Pursuant to the Mackay MIPA and termination of the Mackay Mining Lease, no additional revenue was recorded in 2025. 

Assets Held for Sale

In 2024, the Company committed a plan to sell industrial and commercial land located in Lyon County, Nevada. This balance of $6,328,338 is classified as Assets Held for Sale on the condensed consolidated balance sheet as of  March 31, 2025 and  December 31, 2024. 

In March 2023, the Company acquired senior water rights (50-acre feet) associated with one of its existing properties and junior water rights (16-acre feet) for a total of $730,595. In 2024, the Company committed a plan to sell the water rights and reclassified those water rights to Assets Held for Sale on the condensed consolidated balance sheet as of  March 31, 2025 and  December 31, 2024. 

The Company’s assets held for sale at March 31, 2025 and  December 31, 2024 include the following: