American Resources Corporation (NASDAQ:AREC) Q2 2023 Earnings Conference Call August 14, 2023 4:30 PM ET Company Participants Mark LaVerghetta - Head of Corporate Finance and Communications Kirk Taylor - Chief Financial Officer Conference Call Participants Mike Niehuser - ROTH Capital Michael Samuels - Berthel Fisher & Co. Steve Segal - KBB Asset Management Operator Good day, everyone, and welcome to today’s American Resources Corporation Second Quarter 2023 Conference Call. At this time, all participants a ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File Number: 000-55456 American Resources Corporation (Exact name of registrant as specified in its charter) | --- | --- | |------------- ...

Financial Data and Key Metrics Changes - The company reported a strong balance sheet as of March 31, 2023, with a traditional debt balance of approximately $839,000 and cash on hand of about $2.4 million [9][10] - The conversion of a $9.8 million convertible note into 9.4 million common shares eliminated future liabilities under the existing convertible note [9] - The company has a current share count of over 78.2 million Class A common shares [9] Business Line Data and Key Metrics Changes - The American Carbon division is focusing on monetizing carbon assets through various operational strategies, including joint ventures and asset sales [22][23] - The ReElement Technologies division is positioned as a leading refining technology platform for critical minerals, emphasizing its role in the recycling value chain [12][14] - The American Metals division is generating cash flows by scrapping ferrous metals and is positioned to leverage ReElement's refining capacity [42][43] Market Data and Key Metrics Changes - The carbon markets remain strong, with shifts in geographic demand impacting operations, particularly with the reopening of relations in China and Australia [22] - The company is strategically positioned to capitalize on the growing demand for critical minerals in the electrified economy [12][14] Company Strategy and Development Direction - The company is focused on expanding its Wyoming County coal mining complex, which is expected to drive incremental growth through technological improvements and new construction [5][28] - The planned spin-off of ReElement Technologies aims to unlock value and position the company favorably within the critical minerals market [6][38] - The company is exploring international opportunities, particularly in Africa, for lithium refining and other critical minerals [36][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to capitalize on market opportunities and the potential for significant value creation post-spin-off [21][44] - The company is focused on maintaining liquidity and does not foresee the need to issue equity to raise cash [44][58] Other Important Information - The company has filed an amended Form 10 registration statement for the ReElement spin-off, which is currently under SEC review [7] - The company is also working on a $45 million tax-exempt bond allocation to fund its Wyoming County complex [5][28] Q&A Session Summary Question: How can the company achieve a clean tech multiple across the board? - Management believes that the ReElement spin-off will drive significant value and that the Wyoming County complex will not only produce metallurgical carbon but also rare earth elements [48] Question: Can you provide a quarter-by-quarter expectation for free cash flow from McCoy Elkhorn? - Management highlighted that McCoy and Wyoming are low-cost, high-quality operations positioned to generate substantial cash flow, with ongoing efforts to monetize the Deane complex [52][53] Question: Can you comment on the cash projections for Q2 and beyond? - Management clarified that the cash balance fluctuations are due to timing and that there are plans to monetize equipment to bolster cash reserves [56][58] Question: What will happen to American Metals post-ReElement spin-off? - Management indicated that American Metals is currently under the American Resources umbrella but may be evaluated for a potential spin-off in the future [60][61]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Florida 46-3914127 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated Filer ☐ Smaller Reporting Company ☒ Emerging growth company ☐ Title of each class Trading Symbol(s) Name of each exchange on which registered Class A Common AREC NASDAQ Capital Market Warrant ARECW NASDAQ Capital Market FORM 10-Q ☒ QUARTERLY REPORT PURSUANT T ...

American Resources Corporation (NASDAQ:AREC) Q4 2022 Earnings Conference Call March 30, 2023 4:30 PM ET Company Participants Mark LaVerghetta - Vice President, Corporate Finance and Communications Mark Jensen - Chairman and Chief Executive Officer Kirk Taylor - Chief Financial Officer Tom Sauve - President Conference Call Participants Heiko Ihle - H.C. Wainwright Mike Niehuser - ROTH Capital Partners Steve Segal - KBB Asset Management Kyle Gallagher - Merrill Lynch Derrick Stone - Private Investor Operator ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________to _____________ Commission file number 000-55456 AMERICAN RESOURCES CORPORATION (Exact Name of Registrant as specified in its charter) | --- | --- | |------------- ...

American Resources Corporation (NASDAQ:AREC) Q3 2022 Earnings Conference Call November 15, 2022 4:30 PM ET Company Participants Mark LaVerghetta - Vice President, Corporate Finance & Communications Kirk Taylor - Chief Financial Officer Mark Jensen - Chairman of the Board & Chief Executive Officer Conference Call Participants Heiko Ihle - H.C. Wainwright Michael Samuels - Berthel, Fisher Steven Segal - KBB Asset Management Mike Niehuser - ROTH Capital Partners Operator Greetings, and welcome to American Reso ...

PART I. FINANCIAL INFORMATION [Item 1. Interim Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Interim%20Consolidated%20Financial%20Statements) The company reported a significant revenue increase to **$34.8 million** for the nine months ended September 30, 2022, alongside a reduced net loss and a decline in cash and total assets [Consolidated Condensed Balance Sheets](index=3&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) As of September 30, 2022, total assets decreased to **$37.3 million** while total liabilities increased, resulting in a larger stockholders' deficit of **$9.1 million** Balance Sheet Highlights | Balance Sheet Highlights | Sep 30, 2022 (Unaudited) | Dec 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $3,769,465 | $11,492,702 | | Total Current Assets | $11,224,873 | $15,292,943 | | Total Assets | $37,313,393 | $42,867,702 | | **Liabilities & Equity** | | | | Total Current Liabilities | $20,691,222 | $16,530,206 | | Total Liabilities | $46,386,098 | $45,213,110 | | Accumulated Deficit | $(176,196,598) | $(165,793,571) | | Total Stockholders' Deficit | $(9,072,705) | $(2,345,408) | [Consolidated Condensed Statements of Operations](index=4&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) Revenues significantly increased to **$34.8 million** for the nine months ended September 30, 2022, with the net loss improving to **$10.5 million** from the prior year Statement of Operations (Nine Months) | Statement of Operations | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Total Revenue | $34,789,566 | $3,217,781 | | Total Operating Expenses | $(47,537,148) | $(22,619,096) | | Net Loss from Operations | $(12,747,582) | $(19,401,315) | | Net Income (Loss) | $(10,466,517) | $(21,953,551) | | Net loss per common share | $(0.16) | $(0.41) | Statement of Operations (Three Months) | Statement of Operations | Three Months Ended Sep 30, 2022 | Three Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Total Revenue | $9,509,738 | $2,813,923 | | Net Loss from Operations | $(4,632,147) | $(7,842,882) | | Net Income (Loss) | $(5,226,840) | $(8,913,521) | | Net loss per common share | $(0.08) | $(0.15) | [Consolidated Condensed Statements of Changes in Stockholders' Equity (Deficit)](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity%20%28Deficit%29) The stockholders' deficit expanded to **$9.1 million** by September 30, 2022, primarily due to a **$10.4 million** net loss, partially offset by capital raises - The total stockholders' deficit grew to **$(9,072,705)** as of September 30, 2022, from **$(2,345,408)** at December 31, 2021[17](index=17&type=chunk) - The increase in the accumulated deficit was primarily due to a net loss of **$5,226,840** for the third quarter of 2022 and **$10,403,028** for the first nine months of 2022 attributable to shareholders[12](index=12&type=chunk)[17](index=17&type=chunk) [Consolidated Condensed Statements of Cash Flows](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Net cash used in operations was **$11.9 million** for the nine months ended September 30, 2022, leading to an overall **$7.7 million** decrease in cash and restricted cash Cash Flow Summary | Cash Flow Summary | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Net cash used in operations | $(11,881,575) | $(17,441,221) | | Net cash from investing activities | $3,477,474 | $(5,075,701) | | Net cash from financing activities | $672,422 | $31,446,016 | | **Increase(decrease) in cash** | **$(7,731,677)** | **$8,929,094** | | Cash, end of period | $4,856,436 | $20,130,297 | [Notes to Unaudited Consolidated Condensed Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Condensed%20Financial%20Statements) The notes detail accounting policies, significant related-party transactions, an increased Asset Retirement Obligation, and various contingencies - The company owns **92.5%** of American Rare Earth, LLC, which is treated as a variable interest entity and consolidated in the financial statements[21](index=21&type=chunk) Asset Retirement Obligation (ARO) | Asset Retirement Obligation (ARO) | Amount | | :--- | :--- | | Balance at Dec 31, 2021 | $18,951,587 | | Accretion (9 months 2022) | $987,744 | | **Balance at Sep 30, 2022** | **$19,939,332** | - The company has significant related-party transactions, including a services agreement with Land Betterment Corporation, controlled by company management, which incurred **$4.7 million** in charges for the first nine months of 2022[44](index=44&type=chunk)[45](index=45&type=chunk) - Contingencies include claims from the Kentucky Energy Cabinet totaling **$1,430,997** and the Mine Health Safety Administration totaling **$754,398**[60](index=60&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes revenue growth to increased coal production, while ongoing net losses and liquidity challenges persist due to high costs and supply chain constraints - The company's business focuses on acquiring, rehabilitating, and operating natural resource assets, primarily metallurgical coal for steel making, through subsidiaries like McCoy Elkhorn and Perry County Resources[68](index=68&type=chunk)[69](index=69&type=chunk) - The primary driver for increased revenue was higher coal production following the recommencement of mining operations at the E4-2 mine on March 29, 2021, post-COVID-19 pandemic idling[111](index=111&type=chunk)[93](index=93&type=chunk) - As of September 30, 2022, available cash was **$3.8 million**, with future liquidity expected to be funded by cash on hand, borrowings, and common stock issuances[115](index=115&type=chunk) - The COVID-19 pandemic led to muted demand for infrastructure and steel products, impacting sales and gross margins, with operations idled from January to December 2020 and persistent supply chain constraints[118](index=118&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, American Resources Corporation is exempt from providing disclosures under this item - The company, as a smaller reporting entity, is not required to provide disclosures under this item[121](index=121&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of September 30, 2022, due to insufficient staffing and untimely reconciliations - Management concluded that the company's disclosure controls and procedures were not effective as of September 30, 2022[123](index=123&type=chunk) - This ineffectiveness stemmed from an insufficient number of staff in accounting and reporting functions and a lack of timely reconciliations[123](index=123&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no current litigation expected to materially adversely affect its financial condition or operations - The company reports it is not involved in any litigation expected to have a material adverse effect on its financial condition or operations[126](index=126&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) This section is not applicable for the current quarterly report - Not applicable[126](index=126&type=chunk) [Item 2. Unregistered Sale of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sale%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company sold **425,000** restricted common shares on March 17, 2021, generating **$1,275,000** in gross proceeds for general business purposes - On March 17, 2021, the company sold **425,000** restricted common shares, raising **$1,275,000** in gross proceeds[126](index=126&type=chunk) [Item 3. Defaults upon Senior Securities](index=31&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) The company reported no defaults on senior securities - None[127](index=127&type=chunk) [Item 4. Mine Safety Disclosures](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures, including violations and regulatory matters, are provided in Exhibit 95.1 of the quarterly report - Mine safety disclosures required by the Dodd-Frank Act are included in Exhibit 95.1[127](index=127&type=chunk) [Item 5. Other Information](index=31&type=section&id=Item%205.%20Other%20Information) No other information was reported for this item - None[127](index=127&type=chunk) [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate documents, agreements, and officer certifications - Lists all exhibits filed with the report, including CEO/CFO certifications (**31.1**, **31.2**, **32.1**, **32.2**) and Mine Safety Disclosure (**95.1**)[128](index=128&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk)

American Resources Corporation (NASDAQ:AREC) Q2 2022 Earnings Conference Call August 15, 2022 4:30 PM ET Company Participants Mark LaVerghetta - Vice President, Corporate Finance & Communications Kirk Taylor - Chief Financial Officer Mark Jensen - Chairman of the Board & Chief Executive Officer Conference Call Participants Mike Niehuser - ROTH Capital Partners Steven Segal - KBB Asset Management Michael Samuels - Berthel, Fisher Operator Greetings, and welcome to the American Resources Corporation Second Qu ...