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Sierra Springs Opportunity Fund Inc. ("SSOF") Investment
 9 Months Ended
Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Sierra Springs Opportunity Fund Inc. ("SSOF") Investment Sierra Springs Opportunity Fund Inc. ("SSOF") Investment
Investment in Sierra Springs Opportunity Fund Inc.

During 2018 and 2019, Comstock’s Board of Directors approved the Company entering into an investment in a certain opportunity zone fund in northern Nevada. During 2019, Comstock invested $0.3 million into a qualified opportunity zone fund named Sierra Springs Opportunity Fund Inc. (“SSOF”) and a qualified opportunity zone business named Sierra Springs Enterprises Inc. (“SSE”), which is solely owned by SSOF. It is anticipated that the Company could own approximately 9% of SSOF upon issuance by SSOF of all 75 million authorized shares to investors. The Company’s chief executive officer is the president and a director of SSOF and an executive of SSE.
Comstock’s $0.3 million investment in SSOF is recorded in the consolidated balance sheets at September 30, 2020, and December 31, 2019, as "Investment in Sierra Springs Opportunity Fund Inc". The investment is accounted for at cost less impairment because there is no ready market for the investment units. Management identified no events or changes in circumstances that might have had a significant adverse effect on the carrying value of the investment. Management concluded it was impractical to estimate fair value due to the early stages of the fund and the absence of a public market for its stock.

Silver Springs Properties

On September 26, 2019, as amended on November 30, 2019, December 26, 2019, March 31, 2020, June 30, 2020, and October 1, 2020, the Company entered into agreements with SSE to sell its two properties in Silver Springs, Nevada (the "Silver Springs properties"). The agreements include the sale of 98 acres of industrial land and senior water rights for $6.5 million and 160 acres of commercial land along with its rights in the membership interests in Downtown Silver Springs LLC for $3.6 million. Accordingly, the properties are classified as assets held for sale on the condensed consolidated balance sheets at September 30, 2020 and December 31, 2019.

On December 9, 2019, the Company purchased 100% of the membership interests in DTSS, including 160 acres of centrally located land in Silver Springs, Nevada, and related approvals for a commercial downtown development. The DTSS acquisition was accounted for as an asset acquisition as DTSS did not meet the definition of a business. The Company paid total consideration of $4.1 million. Based on the agreement with SSE to sell the Silver Springs properties, the carrying value of the land was adjusted to the contract value of $3.6 million less estimated costs to sell, resulting in an impairment of $0.5 million, charged to other expense in the consolidated statements of for the year ended December 31, 2019.

As of September 30, 2020, the Company has received deposits in cash and escrow from SSE totaling $0.4 million towards the purchase of the Silver Springs Properties. The transactions are expected to close during the fourth quarter of 2020.

Advance to Sierra Springs Opportunity Fund Inc.

As of September 30, 2020, the Company advanced SSOF $1.3 million, for deposits and payments on land purchases in Silver Springs, Nevada. The advances are expected to be repaid during the fourth quarter of 2020, upon the sale of the Company’s properties located in Silver Springs to SSE.

The Company’s advances totaling $1.3 million are recorded in the consolidated balance sheets at September 30, 2020, in other current assets. At September 30, 2020, The Company’s maximum exposure to loss as a result of its involvement with SSOF and SSE is limited to the total of its current investment in and advance to SSOF.