American Resources Corp
For the period ended Sep 30, 2024. Filed Nov 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.
Sep 30, 2024 · Filed Nov 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 2024-06-30; filed 2024-08-19.
0001477932-24-005119
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-19.
0001477932-24-007457
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 105 previous paragraphs and 105 current paragraphs.
86 unchanged; 14 reworded; 5 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 4 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 (5)
Current report
Total operating expenses increased by $835,050 for the three months ending September 30, 2024 as compared to 2023. This increase was primarily driven by general and administrative expenses of $2,216,846, professional fees of $323,114. These increases were offset by decreases Coal production and holdings costs of $299,197, production taxes and royalties of $250,216 and development expense of $1,722,803.
Current report
Total operating expenses decreased by $9,456,053 for the nine months ending September 30, 2024 as compared to 2023. This decrease was primarily driven by a decrease in coal production and holdings costs of $5,659,000 as well as decreases in production taxes and royalties of $1,396,806, development expenses of $7,585,297 and gain on sale of equipment of $1,225,000. These decreases were partially offset by increases in general and administrative expenses of $3,268,457 and a increase in professional fees by $824,772. General and administrative expenses are primarily made up of costs related to contract labor, payroll, facility maintenance, and other standard operational expenses.
Current report
Total other income (expenses) decreased by $357,563 for the three months ended September 30, 2024 as compared to 2023. The decrease is primarily made up of decreases in other income (expense) of $182,101 and interest expense of $253,039. These decreases were partially offset by increases in earnings from equity method investees of $72,881 and interest income of $4,696.
Current report
Total other income (expenses) decreased by $1,230,030 for the nine months ended September 30, 2024 as compared to 2023. The decrease is primarily made up of decreases in earnings from equity method investees of $435,845, other income (expense) of $362,096 and interest expense of $521,410. These decreases were partially offset by an increase in interest income of $89,321.
Current report
Cash used in investing activities was $1,757,837 for the nine months ended September 30, 2024, which consisted of an increase in purchase of property and equipment for $166,229, proceeds from the sale of equipment of $400,000, cash invested in a note receivable of $99,022 and proceeds from short-term investments, net of $1,191,608.
Removed paragraphs (5)
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Reworded paragraphs (14)
Previous wording
Both Bevins #1 and Bevins #2, as well as the rail loadout, are operational and any work required on any of the plants or loadouts would be routine maintenance. The allocated cost of for this property at McCoy Elkhorn Coal paid by the company is $95,210.
Current wording
Both Bevins #1 and Bevins #2, as well as the rail loadout, are operational and any work required on any of the plants or loadouts would be routine maintenance. The allocated cost of this property at McCoy Elkhorn Coal paid by the company is $95,210.
Previous wording
ARC sells its coal to domestic and international customers, some which blend ARC’s coal at east coast ports with other qualities of coal for export. Coal sales currently come from the Company’s Carnegie 1 and 2 mines. The Company may, at times, purchase coal from other regional producers to sell on its contracts.
Current wording
ARC sells its coal to domestic and international customers, some which blend ARC’s coal at east coast ports with other qualities of coal for export. The Company may, at times, purchase coal from other regional producers to sell on its contracts.
Previous wording
The following table summarizes our results of operations for the three and six months ended June 30, 2024:
Current wording
The following table summarizes our results of operations for the three and nine months ended September 30, 2024:
Previous wording
The following table summarizes the period over period changes in revenue generating operations for the three and six months ended June 30, 2024:
Current wording
The following table summarizes the period over period changes in revenue generating operations for the three and nine months ended September 30, 2024:
Previous wording
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 wording
Revenue decreased by $5,721,840 for the three months ended September 30, 2024 compared to 2023. The primary driver of the decrease was a reduction of $5,721,840 in coal sales for the three months ended September 30, 2024 as compared to 2023. The decrease was partially offset by increases in metal recovery sales and royalty income of $148,333 and $425, respectively, for the three months ended September 30, 2024 compared to 2023.
Previous wording
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 wording
Revenue decreased by $16,120,841 for the nine months ended September 30, 2024 compared to 2023. The primary driver of the decrease was a reduction of $16,120,841 in coal sales for the three months ended September 30, 2024 as compared to 2023. Additionally, royalty income decreased by $350,627. These decreases were partially offset by an increase in metal recovery and sales of $127,355 for the three months ended September 30, 2024 compared to 2023.
Previous wording
The following table summarizes the period over period changes in operating expenses (income) for the three and six months ended June 30, 2024:
Current wording
The following table summarizes the period over period changes in operating expenses (income) for the three and nine months ended September 30, 2024:
Previous wording
The following table summarizes the period over period changes in other income (expense) for the three and six months ended June 30, 2024:
Current wording
The following table summarizes the period over period changes in other income (expense) for the three and nine months ended September 30, 2024:
Previous 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.
Current wording
As of September 30, 2024, our available cash was $161,651,732. 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.
Previous wording
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 wording
Cash used in operating activities was $16,317,031 for the nine months ended September 30, 2024, which consists of a net loss of $21,909,367, offset by adjustments to reconcile net loss to net cash of $6,415,477 and a change in our net operating assets and liabilities of $823,141 which is primarily the result of an decrease in inventories of $1,975,812, and accounts payable of $1,609,584 and an increase in accounts payable related party of $2,318,695.
Previous wording
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 wording
Cash used in operating activities was $15,908,173 for the nine months ended September 30, 2023, which consists of a net loss of $13,791,277 partially offset by adjustments to reconcile net loss to net cash of $4,143,169 and a change in our net operating assets and liabilities of $6,260,065, which is primarily the result of a decrease in receivables of $3,730,070, inventories of $1,719,836, prepaid expenses and other current assets of $1,131,065, accounts payable – related party of $1,102,822 offset by an increase of accounts payable of $1,849,532.
Previous wording
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 wording
Cash used in investing activities was $3,862,383 for the nine months ended September 30, 2023, which consisted of a decrease in purchase of property and equipment for $283,790, proceeds from short-term investments, net of $703,593 and purchase of investments, net of $4,500,000, which were partially offset by proceeds received from the sale of equipment for $1,625,000.
Previous wording
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 wording
Cash provided by financing activities was $145,336,288 for the nine months ended September 30, 2024, which consisted of cash received from warrant conversions in the amount of $32,339, proceeds from the convertible promissory note – related party in the amount of $894,172, 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 $5,561,918.
Previous wording
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.
Current wording
Cash provided by financing activities was $45,671,490 for the nine months ended September 30, 2023, which consisted of repayment on long term debt of $1,112,850 and repayment on other financing obligations of $4,329,186, partially offset by proceeds from tax exempt bonds of $43,475,887 and proceeds received from other financing obligations of $7,637,639.