American Resources Corp

Previous wording

Since mid-2019, we have not mined or sold coal which is sold into the thermal coal markets. Due to adverse market conditions all mining operations are currently idled. Should mining operations commence, all production and future investment will be for the mining of metallurgical coal. The following table is presented for historical purposes.

Current wording

Since mid-2019, we have not mined or sold coal which is sold into the thermal coal markets. Due to adverse market conditions all mining operations are currently idled. Should mining operations commence, all production and future investment will be for the mining of metallurgical coal.

Previous wording

The Company currently has approximately 23 direct employees. The Company is headquartered in Fishers, Indiana with four members of the Company’s executive team based at this location.

Current wording

The Company currently has approximately 21 direct employees. The Company is headquartered in Fishers, Indiana with four members of the Company’s executive team based at this location.

Previous wording

The following table summarizes our results of operations for the three months ended March 31, 2025 and 2024:

Current wording

The following table summarizes our results of operations for the three and six months ended June 30, 2025 and 2024:

Previous wording

Three Months Ended March 31, 2025 and 2024

Current wording

The following table summarizes revenue for the three months ended June 30, 2025 and 2024:

Previous wording

The increase in net other expense is primarily attributable to the net decrease in interest income of $485,630 and the net increase in interest expense of $1,089,817, compared to the three months ended March 31, 2024.

Current wording

The decrease in net other expense is primarily attributable to the net decrease in interest income of $353,934 and by the net decrease in interest expense of $951,824, compared to the three months ended June 30, 2024.

Previous wording

Revenue decreased by $62,092 for the three months ended March 31, 2025 compared to 2024. The primary driver of the decrease was a reduction of $64,667 in royalty income for the three months ended March 31, 2025 as compared to 2024.

Current wording

Revenue decreased by $52,930 for the six months ended June 30, 2025 compared to 2024. The primary driver of the decrease was a reduction of $64,667 in royalty income for the six months ended June 30, 2025 as compared to 2024.

Previous wording

Total operating expenses decreased by $1,808,844 for the three months ending March 31, 2025 as compared to 2024. This decrease was primarily driven by lower coal production related costs due to idled mining operations, lower holding costs of $794,457 due to concentrated efforts to lower payroll costs, and professional fees of $774,460 due to the decrease in legal fees.

Current wording

Total operating expenses decreased by $3,461,909 for the six months ending June 30, 2025 as compared to 2024. This decrease was primarily driven by lower coal production related costs due to idled mining operations, lower holding costs of $1,430,578 due to concentrated efforts to reduce labor costs, lower general and administration expenses of $1,850,056 and professional fees of $462,627 due to decreases in legal fees.

Previous wording

As of March 31, 2025, the company has a cash balance of $24,623 and a working deficit of $75,839,150. We expect to fund our liquidity requirements over the next 12 months primarily with cash on hand and additional debt and equity financing transactions. If future cash flows are insufficient to meet our liquidity needs or capital requirements, we may be required to rationalize our expenditures or slow down efforts to further develop our new business models. We do not have any credit lines currently available to fund our liquidity requirements. Maintaining future liquidity is subject to significant uncertainties primarily related to the generation of revenues from our new business models at levels that surpass breakeven and the ability to obtain additional debt and equity financing.

Current wording

As of June 30, 2025, the company has a cash balance of $2,254,206 and a working deficit of $73,851,409. We expect to fund our liquidity requirements over the next 12 months primarily with cash on hand and additional debt and equity financing transactions. If future cash flows are insufficient to meet our liquidity needs or capital requirements, we may be required to rationalize our expenditures or slow down efforts to further develop our new business models. We do not have any credit lines currently available to fund our liquidity requirements. Maintaining future liquidity is subject to significant uncertainties primarily related to the generation of revenues from our new business models at levels that surpass breakeven and the ability to obtain additional debt and equity financing.

Previous wording

The $3,291,767 decrease in cash used for operating activities was primarily due to a $365,084 decrease in net loss and a $1,523,562 increase in cash flow provided by changes in working capital offset by an decrease of $496,880 in non-cash charges.

Current wording

Cash used in operating activities increased by $4,422,071 compared to the prior period. This change was primarily driven by a $2,738,510 decrease in net loss, which positively impacted operating cash flow; a $1,461,359 increase in cash provided by changes in working capital; and an increase of $222,202 in non-cash charges, including depreciation, amortization, and other adjustments.

Previous wording

Cash provided by financing activities for the three months ended 2025 was $76,799 compared to $148,262,883 for the three months ended 2024. The change was due to proceeds from tax exempt bonds, net of $149,719,203 that was received in March 31, 2024 and no bonds issued in 2025, repayment of other financing obligation of $1,373,201, offset by proceeds from convertible promissory note of $1,450,000.

Current wording

Cash provided by financing activities for the six months ended 2025 was $5,980,665 compared to $146,703,379 for the six months ended 2024. The change was due to the proceeds from tax exempt bonds, net of $149,719,208, which were received on March 28, 2024, and a decrease in net proceeds from other financing obligations of $1,489,046. This was partially offset by proceeds received from convertible promissory notes in 2025 of $3,505,559.