Core Insights - American Resources Corporation has secured a $20 million equipment leasing facility to enhance production capabilities in rare earth oxides and lithium carbonate [1] - The funding will support large-scale production operations at ReElement's facilities in Marion and Noblesville, Indiana [1] - This initiative is part of a broader strategy that includes a previously announced Department of Defense contract and existing equity capital [1] Company Summary - American Resources Corporation, through its subsidiary ReElement Technologies, focuses on refining rare earth elements and critical minerals [1] - The company aims to expand its production lines for rare earth materials, battery materials, and critical defense elements [1] Industry Context - The investment in rare earth oxides and lithium carbonate production aligns with increasing demand for these materials in various sectors, including defense and battery manufacturing [1] - The strategic expansion in Indiana positions the company to capitalize on the growing market for critical minerals [1]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

DoD award to boost rare earth refining capacity in support of national defense priorities ReElement's modular, multi-mineral refining platform stands as the only scalable U.S.-based solution economically separating and purifying both heavy and light rare earth elements FISHERS, IN / ACCESS Newswire / September 9, 2025 / American Resources Corporation (NASDAQ:AREC) ("American Resources"), through its holding in ReElement Technologies Corporation ("ReElement"), a leading U.S. innovator in rare earth element ( ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Electrified Materials Secures Industrial Equipment to Immediately Scale Preprocessing Output FISHERS, IN / ACCESS Newswire / September 8, 2025 / American Resources Corporation (NASDAQ:AREC) ("American Resources") today announced a major advancement in rare earth element material recycling through its wholly owned subsidiary, Electrified Materials Corporation (EMCO). The company has developed a low-cost, scalable method to extract rare earth elements from everyday e-waste - including speakers, power tools, a ...

Core Viewpoint - The United States is strengthening its domestic rare earth industry chain, with Vulcan Elements signing a commercial-scale agreement with ReElement Technologies to accelerate the expansion of domestic rare earth magnet manufacturing capabilities [1][2]. Group 1: Company Developments - Vulcan Elements aims to localize the magnet supply chain in collaboration with ReElement Technologies, contributing to the U.S. economic vitality and military advantage [2]. - Vulcan Elements, a high-performance rare earth magnet manufacturer based in North Carolina, was established in 2023 and currently has fewer than 50 employees [2]. - ReElement Technologies focuses on the upstream of the rare earth industry chain, refining rare earth materials into high-purity single rare earth oxides for downstream manufacturers like Vulcan Elements [2][3]. Group 2: Industry Context - Rare earth elements are critical materials for electric vehicles, renewable energy, and national defense, with high economic value [4]. - The U.S. has historically been dependent on imports for rare earth supplies, with known reserves of only 1.9 million tons compared to China's 44 million tons, which accounts for nearly half of global reserves [5]. - The U.S. lacks sufficient processing and refining capabilities, with China holding 99% of the global market share for heavy rare earth processing [8]. Group 3: Technological Advancements - ReElement Technologies employs a patented chromatographic refining method, which allows for the production of rare earth oxides with purity levels exceeding 99.95% [9]. - The chromatographic method is more efficient than traditional solvent extraction methods, offering higher separation efficiency and lower chemical and energy consumption [10][11]. Group 4: Financial and Strategic Moves - Vulcan Elements recently completed a $65 million Series A financing round, which will enable it to scale magnet production significantly in the coming years [16][17]. - ReElement Technologies received a letter of intent for $150 million in financing from the Export-Import Bank of the United States to support its refining projects [17]. - The U.S. Department of Defense has invested in domestic rare earth production, acquiring convertible preferred shares in MP Materials, the largest rare earth producer in the U.S. [14].

Core Viewpoint - The news highlights a significant increase in rare earth stocks, driven by potential government funding reallocations to support critical mineral projects, particularly in the context of the semiconductor industry [1] Group 1: Market Reaction - Rare earth stocks experienced notable gains, with American Resources (AREC.US) rising over 14%, MP Materials (MP.US) increasing more than 5%, and Energy Fuels (UUUU.US) and USA Rare Earth (USAR.US) both up over 3% [1] Group 2: Government Actions - The Trump administration is reportedly considering a plan to reallocate at least $2 billion from the CHIPS Act to fund critical mineral projects, enhancing the influence of Commerce Secretary Gina Raimondo in strategic industries [1] - The proposed initiative aims to extract funds from semiconductor research and chip factory construction allocations, avoiding new spending requests [1] - This move follows discussions initiated by White House officials regarding the U.S. government's mineral strategy after a recent investment in MP Materials by the Pentagon [1]

Core Viewpoint - Rare earth stocks experienced significant gains, with American Resources rising over 14%, MP Materials increasing over 5%, and Energy Fuels and USA Rare Earth both up over 3% due to potential government funding for critical mineral projects [1] Group 1: Government Actions - The Trump administration is considering reallocating at least $2 billion from the CHIPS Act to fund critical mineral projects [1] - This proposed measure aims to enhance Secretary of Commerce Gina Raimondo's influence over strategic industries [1] - The funding will be sourced from semiconductor research and chip manufacturing grants, avoiding new spending requests [1] Group 2: Industry Implications - The move to strengthen the government's role in critical mineral financing is expected to centralize the overall strategy for the industry [1] - Discussions regarding the U.S. government's mineral strategy were prompted by a recent investment in MP Materials by the Pentagon [1]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced news journalists who produce independent content across various financial markets [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content includes insights into sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is committed to adopting technology to enhance its content creation and workflow processes [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all published content is edited and authored by humans [5]

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's analysis of the company's financial condition and operational results [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=2&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for the period ended June 30, 2025, show a decrease in total assets to **$200.4 million** from **$205.0 million** at year-end 2024, and an increase in total liabilities to **$292.6 million**, with a net loss of **$8.7 million** for Q2 2025, and restatement of prior period financials due to accounting errors Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheet Summary (as of June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$200,445,719** | **$205,013,999** | | Total Current Assets | $9,542,095 | $11,325,039 | | **Total Liabilities** | **$292,644,028** | **$286,923,743** | | Total Current Liabilities | $82,298,344 | $84,802,847 | | **Total Stockholders' Deficit** | **($90,630,594)** | **($80,348,078)** | - The company's total assets decreased slightly, while total liabilities increased, leading to a larger total stockholders' deficit of **$90.6 million** as of June 30, 2025, compared to **$80.3 million** at the end of 2024[8](index=8&type=chunk) Condensed Consolidated Statements of Operations Condensed Consolidated Statements of Operations Summary (Unaudited) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 (Restated) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 (Restated) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$13,256** | **$4,095** | **$45,184** | **$98,114** | | Net Loss from Operations | ($6,770,634) | ($8,432,856) | ($11,754,062) | ($15,163,041) | | **Net Loss Attributable to AREC Shareholders** | **($8,666,129)** | **($11,056,660)** | **($15,318,888)** | **($17,998,025)** | | Net Loss Per Share (Basic and Diluted) | ($0.10) | ($0.14) | ($0.19) | ($0.24) | - The company's revenue for the first six months of 2025 was **$45,184**, a significant decrease from **$98,114** in the same period of 2024, though the net loss attributable to shareholders improved, decreasing to **$15.3 million** from **$18.0 million** year-over-year[11](index=11&type=chunk) Condensed Consolidated Statements of Changes in Stockholders' Deficit - The total stockholders' deficit increased from **$80.3 million** at the end of 2024 to **$90.6 million** as of June 30, 2025, primarily driven by a net loss of **$15.3 million** for the six-month period, partially offset by stock compensation and shares issued to settle accounts payable[14](index=14&type=chunk)[15](index=15&type=chunk) Condensed Consolidated Statements of Cash Flows Cash Flow Summary for the Six Months Ended June 30 | Cash Flow Activity | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | Net cash used in operating activities | ($8,880,683) | ($13,300,247) | | Net cash provided by (used in) investing activities | $2,691,099 | ($148,271,896) | | Net cash provided by financing activities | $5,980,665 | $146,703,378 | | **Net change in cash and cash equivalents** | **($208,919)** | **($14,868,765)** | - For the six months ended June 30, 2025, the company used **$8.9 million** in cash from operations, with significant year-over-year changes in investing and financing activities primarily due to proceeds from tax-exempt bonds in 2024 and convertible notes in 2025[16](index=16&type=chunk) Notes to Unaudited Condensed Consolidated Financial Statements The notes detail the company's accounting policies, business segments, and the basis of presentation, highlighting the restatement of previously issued financial statements for 2024 due to accounting errors and expressing substantial doubt about the company's ability to continue as a going concern - The company's operations comprise three segments: American Infrastructure (coal mining), ReElements (rare earth elements), and Electrified Materials (metal recovery), with American Infrastructure and ReElements consolidated as variable interest entities (VIEs) despite distributed ownership[18](index=18&type=chunk) - Management has concluded there is substantial doubt about the company's ability to continue as a going concern for the next twelve months, contingent on obtaining additional financing and generating revenue[27](index=27&type=chunk)[29](index=29&type=chunk) - The company restated its previously issued financial statements for the year ended December 31, 2023, and the three and six months ended June 30, 2024, due to multiple accounting errors related to cash adjustments, investment classifications, bond compliance, lease accounting, accrued expenses, and stock compensation calculations[31](index=31&type=chunk)[32](index=32&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's strategic shift from coal mining towards revenue diversification through its ReElements and Electrified Materials segments, with coal production suspended due to adverse market conditions, resulting in decreased revenue but reduced operating expenses and net loss for H1 2025, while liquidity remains constrained - The company has shifted its business focus and capital allocation away from coal production towards diversifying revenue streams through its ReElements (rare earth elements) and Electrified Materials (metal recovery) segments, which were in development stages through 2024[20](index=20&type=chunk)[201](index=201&type=chunk) - All coal mining operations are currently idled due to adverse market conditions, with any future production focused on metallurgical coal[203](index=203&type=chunk) - The company has a working capital deficit of **$73.9 million** as of June 30, 2025, and expects to fund its liquidity needs over the next 12 months with cash on hand and additional debt and equity financing[277](index=277&type=chunk) Results of Operations Comparison of Results for the Three Months Ended June 30 | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$13,256** | **$4,095** | **$9,161** | | Total Operating Expenses | $6,783,890 | $8,436,951 | ($1,653,061) | | Net Loss from Operations | ($6,770,634) | ($8,432,856) | $1,662,222 | | **Net Loss** | **($8,668,904)** | **($11,042,325)** | **$2,373,421** | Comparison of Results for the Six Months Ended June 30 | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$45,184** | **$98,114** | **($52,930)** | | Total Operating Expenses | $11,799,246 | $15,261,155 | ($3,461,909) | | Net Loss from Operations | ($11,754,062) | ($15,163,041) | $3,408,979 | | **Net Loss** | **($15,324,938)** | **($18,063,448)** | **$2,738,510** | - For the six months ended June 30, 2025, total operating expenses decreased by **$3.5 million** compared to the prior year, primarily due to lower coal production costs, reduced general and administrative expenses, and lower professional fees[272](index=272&type=chunk) Liquidity and Capital Resources - The company's primary liquidity sources are existing cash, bond fund reimbursements, and other debt/capital proceeds, with continued reliance on financing to support operations and the development of new businesses due to suspended coal production and limited revenues in 2024[276](index=276&type=chunk) Cash Flow Summary (Six Months Ended June 30) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Cash used in operating activities | ($8,880,176) | ($13,300,247) | | Cash provided by (used in) investing activities | $2,691,099 | ($148,271,896) | | Cash provided by financing activities | $5,980,665 | $146,703,379 | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is not required to provide this disclosure as it qualifies as a smaller reporting company - As a smaller reporting company, the registrant is exempt from providing disclosures about market risk[285](index=285&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were not effective as of June 30, 2025, due to insufficient accounting staff and lack of timely reconciliations, with no material changes to internal controls during the quarter - Management has concluded that the company's disclosure controls and procedures were not effective as of the period ending June 30, 2025[288](index=288&type=chunk) - The ineffectiveness was attributed to an insufficient number of accounting and reporting staff and a lack of timely reconciliations[288](index=288&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected the company's internal controls[290](index=290&type=chunk) [PART II. OTHER INFORMATION](index=26&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, unregistered sales of equity securities, defaults on senior securities, mine safety disclosures, and a list of exhibits filed with the report [Item 1. Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to routine litigation incidental to its business operations, with detailed information on specific cases referred to in the financial statements - The company is involved in ordinary routine litigation, and for details on specific legal cases, readers are directed to the contingencies footnote in the financial statements (Note 9, though the text incorrectly refers to Note 6)[292](index=292&type=chunk)[293](index=293&type=chunk) [Item 1A. Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) This section is not applicable for this filing - No risk factors are provided in this quarterly report[294](index=294&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the period - The company reports no unregistered sales of equity securities for the period[295](index=295&type=chunk) [Item 3. Defaults upon Senior Securities](index=26&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) There were no defaults upon senior securities during the period, although Note 7 of the financial statements indicates non-compliance with certain bond provisions, constituting an event of default - The company reports no defaults upon senior securities, which contradicts information in Note 7 stating non-compliance with certain bond provisions, constituting an event of default[140](index=140&type=chunk)[296](index=296&type=chunk) [Item 4. Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Information regarding mine safety violations and other regulatory matters as required by the Dodd-Frank Act is included in Exhibit 95.1 of this report - Mine safety disclosures are provided in Exhibit 95.1 to the Quarterly Report[297](index=297&type=chunk) [Item 5. Other Information](index=26&type=section&id=Item%205.%20Other%20Information) There is no other information to report for this period - The company reports no other information for the period[298](index=298&type=chunk) [Item 6. Exhibits](index=26&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including articles of incorporation, bylaws, various agreements, and certifications from the CEO and CFO - A comprehensive list of exhibits filed with the report is provided, including corporate governance documents, material contracts, officer certifications, and mine safety disclosures[300](index=300&type=chunk)[303](index=303&type=chunk)