American Resources Corp
For the period ended Jun 30, 2024. Filed Aug 19, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 19, 2024
AREC$1.09+14.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-20.
0001477932-24-003175
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-19.
0001477932-24-005119
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 93 previous paragraphs and 105 current paragraphs.
84 unchanged; 1 reworded; 20 added; 8 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 0 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (20)
Current report
The following table summarizes our results of operations for the three and six months ended June 30, 2024:
Current report
The following table summarizes the period over period changes in revenue generating operations for the three and six months ended June 30, 2024:
Current report
Revenue decreased by $1,996,594 for the three months ended June 30, 2024 compared to 2023. The primary driver of the decrease was a reduction of $1,675,815 in coal sales for the three months ended June 30, 2024 as compared to 2023. Decreases in metal recovery sales and royalty income of $29,722 and $291,057, respectively, also contributed to the overall decrease in revenue for the three months ended June 30, 2024 compared to 2023.
Current report
Revenue decreased by $10,771,031 for the six months ended June 30, 2024 compared to 2023. The primary driver of the decrease was a reduction of $10,339,001 in coal sales for the three months ended June 30, 2024 as compared to 2023. Decreases in metal recovery sales and royalty income of $20,978 and $351,052 also contributed to the overall decrease in revenue for the three months ended June 30, 2024 compared to 2023.
Current report
The following table summarizes the period over period changes in operating expenses (income) for the three and six months ended June 30, 2024:
Current report
For the three months ended June 30, 2024, total operating expenses decreased by $3,116,969, from $9,350,482 in 2023 to $6,233,513 in 2024. The cost of coal sales and processing saw the largest drop, decreasing by $3,227,090. Depreciation and production taxes and royalties also decreased by $70,603 and $414,074, respectively, while development expenses decreased by $1,761,642. Conversely, general and administrative expenses increased by $1,262,548, and professional fees increased by $43,893. The gain on the sale of equipment, which contributed $1,050,000 in 2023, was absent in 2024, further impacting overall expenses. Amortization of mining rights and accretion remained unchanged.
Current report
For the six months ended June 30, 2024, total operating expenses decreased by $8,402,972, from $21,135,068 in 2023 to $12,732,096 in 2024. The cost of coal sales and processing experienced the most substantial decline, decreasing by $4,708,905. Development expenses also dropped significantly by $5,872,494, and production taxes and royalties decreased by $1,146,590. Additionally, depreciation expense decreased by $125,484, while accretion and amortization of mining rights remained essentially unchanged. Offsetting these decreases, general and administrative expenses increased by $2,298,843, and professional fees also increased by $501,660. The gain on the sale of equipment decreased by $650,000, contributing to the overall reduction in expenses.
Current report
The following table summarizes the period over period changes in other income (expense) for the three and six months ended June 30, 2024:
Current report
For the three months ended June 30, 2024, total other expenses decreased by $99,889, from $471,223 in 2023 to $371,334 in 2024. Earnings from equity method investees increased by $413,859, with a reduced loss of $16,385 compared to a loss of $430,244 in 2023. Other income (expense) declined by $199,510, from $260,000 in 2023 to $60,490 in 2024. Interest income increased by $1,502, while interest expense increased by $115,962, rising from $302,531 in 2023 to $418,493 in 2024.
Current report
For the six months ended June 30, 2024, total other expenses increased by $493,466, from $417,917 in 2023 to $911,383 in 2024. Earnings from equity method investees decreased significantly by $508,726, shifting from a gain of $277,366 in 2023 to a loss of $231,360 in 2024. Other income and expenses decreased by $179,995, from $353,000 in 2023 to $173,005 in 2024. Interest income increased by $20,385, while interest expenses decreased by $174,870, from $1,067,047 in 2023 to $892,177 in 2024.
Current report
Cash Flows from Operating Activities
Current report
Cash used in operating activities was $13,217,548 for the six months ended June 30, 2024, which consists of a net loss of $13,545,365, offset by adjustments to reconcile net loss to net cash of $4,009,139 and a change in our net operating assets and liabilities of $3,681,322, which is further broken down into decreases in inventories of $1,975,812, accounts payable of $1,852,196 and operating lease liabilities of $25,217, partially offset by increases in prepaid expenses of $1,651, accrued interest of $27,781, and accounts payable – related party of $142,471.
Current report
Cash used in operating activities was $10,566,067 for the six months ended June 30, 2023, which consists of a net loss of $10,683,840 partially offset by adjustments to reconcile net loss to net cash of $2,416,904 and a change in our net operating assets and liabilities of $2,299,131, which is further broken down into decreases in inventories of 264,536, prepaid expenses of $1,019,982, accounts payable – related party of $1,733,216 and operating lease liabilities of $48,514, partially offset by increases in accounts receivable of $425,526, accounts payable of $321,661, and accrued interest of $19,930.
Current report
Cash Flows from Investing Activities
Current report
Cash used in investing activities was $248,796 for the six months ended June 30, 2024, which consisted of purchases of property and equipment for $648,796 offset by proceeds received from the sale of equipment for $400,000.
Current report
Cash provided by investing activities was $311,690 for the six months ended June 30, 2024, which consisted of purchases of property and equipment for $738,310 offset by proceeds received from the sale of equipment for $1,050,000.
Current report
Cash Flows from Financing Activities
Current report
Cash provided by financing activities was $146,338,960 for the six months ended June 30, 2024, which consisted of cash received from warrant conversions in the amount of $32,339, proceeds from the exercise of stock options of $156,900, proceeds from tax exempt bonds of $149,719,203, and proceeds received from other financing obligations of $95,592, partially offset by the repayment of other financing obligations in the amount of $3,665,074.
Current report
Cash provided by financing activities was $45,025,346 for the six months ended June 30, 2023, which consisted of repayment on long term debt of $1,098,821 and repayment on other financing obligations of $2,675,508, partially offset by proceeds from tax exempt bonds of $43,475,887 and proceeds received from other financing obligations of $5,323,788.
Removed paragraphs (8)
Previous report
Our consolidated operations had operating revenues of $94,019 and $8,868,456 for the three-months ended March 31, 2024 and 2023, respectively. We incurred net losses of $6,225,932 and $3,100,869 for the same periods, respectively.
Previous report
The primary driver for the decrease in operating revenues is a significant reduction in our coal sales for the period ended March 31, 2024 as compared to 2023.
Previous report
For the three months ended March 31, 2024 and 2023, cost of coal sales and processing expenses were $1,266,928 and $2,705,820 respectively, development costs, including loss on settlement of ARO were $2,397,140 and $5,633,908, respectively, and production taxes and royalties were $121,767 and $981,636, respectively. Depreciation expense for the three months ended March 31, 2024 and 2023 were $22,086 and $13,336 respectively and general and administrative expenses were $2,062,021 and $1,321,468, respectively.
Previous report
For the three months ended March 31, 2024 and 2023, our net cash flow used in operating activities was $8,131,227 and $7,342,964, respectively.
Previous report
For the three months ended March 31, 2024, net cash used in investing activities was $3,797,176compared to the three months ended March 31, 2023, during which $967,343 was provided by investing activities.
Previous report
For the three months ended March 31, 2024, net cash provided by financing activities was $146,814,926 compared to the three months ended March 31, 2023, during which $2,194,747 was used in financing activities.
Previous report
In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), which, among other updates, requires enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker, as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, and requires retrospective adoption. Early adoption is permitted. The Company is evaluating the impact of ASU 2023-07 on its consolidated financial statements and the related disclosures.
Previous report
In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which requires enhanced annual disclosures with respect to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, and may be adopted on a prospective or retrospective basis. Early adoption is permitted. The Company is evaluating the impact of ASU 2023-07 on its consolidated financial statements and the related disclosures.
Reworded paragraphs (1)
Previous wording
As of March 31, 2024, our available cash was $2,166,857. We expect to fund our liquidity requirements with cash on hand, future borrowings and cash flow from operations. If future cash flows are insufficient to meet our liquidity needs or capital requirements, we may reduce our mine development and/or fund a portion of our expenditures through issuance of debt or equity securities, or from other sources, such as asset sales. We do not have any credit lines currently available to fund our liquidity requirements, and currently there is uncertainty regarding our ability to execute on the above strategy.
Current wording
As of June 30, 2024, our available cash was $169,553,258. We expect to fund our liquidity requirements with cash on hand, future borrowings and cash flow from operations. If future cash flows are insufficient to meet our liquidity needs or capital requirements, we may reduce our mine development and/or fund a portion of our expenditures through issuance of debt or equity securities, or from other sources, such as asset sales. We do not have any credit lines currently available to fund our liquidity requirements, and currently there is uncertainty regarding our ability to execute the above strategy.