10q10k10q10k.net

What changed in American Resources Corp's 10-K — 2022 vs 2023

vs

Paragraph-level year-over-year comparison of American Resources Corp's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+90 added−93 removedSource: 10-K (2024-04-15) vs 10-K (2023-03-31)

Top changes in American Resources Corp's 2023 10-K

90 paragraphs added · 93 removed · 66 edited across 4 sections

Item 1. Business

Business — how the company describes what it does

36 edited+4 added−6 removed241 unchanged
Biggest changeShould the state regulators believe that the Company is not in the process of abating or correcting the currently outstanding issues associated with their currently held permits they may choose not to issue the Company any new permits until such issues are properly rectified.
Biggest changeShould the state regulators believe that the Company is not in the process of abating or correcting the currently outstanding issues associated with their currently held permits they may choose not to issue the Company any new permits until such issues are properly rectified. 12 Table of Contents Below is a map showing the location of the Davidson Prep Plant, Bluegrass 4 rail Loadout, and E4-2 Mine at Perry County Resources: ERC Mining Indiana Corporation (the Gold Star Mine) General: Located primarily within Greene and Sullivan Counties, Indiana, ERC Mining Indiana Corporation (“ERC”) is currently comprised of one idled underground mine (the Gold Star Mine), one idled coal preparation plant and rail loadout.
(ReElement) We have not classified, and as a result, do not have any “proven” or “probable” reserves as defined in United States Securities and Exchange Commission Items 1300 through 1305 of Regulation S-K, and as a result, our company and its business activities are deemed to be in the exploration stage until mineral reserves are defined on our properties.
We have not classified, and as a result, do not have any “proven” or “probable” reserves as defined in United States Securities and Exchange Commission Items 1300 through 1305 of Regulation S-K, and as a result, our company and its business activities are deemed to be in the exploration stage until mineral reserves are defined on our properties.
(American Carbon) American Carbon currently has seven coal mining and processing operating subsidiaries: McCoy Elkhorn Coal LLC (doing business as McCoy Elkhorn Coal Company) (McCoy Elkhorn), Knott County Coal LLC (Knott County Coal), Deane Mining, LLC (Deane Mining), Wyoming County Coal LLC (Wyoming County), Quest Processing LLC (Quest Processing), Perry County Resources (Perry County) located in eastern Kentucky and western West Virginia within the Central Appalachian coal basin, and ERC Mining Indiana Corporation (ERC) located in southwest Indiana within the Illinois coal basin.
(American Carbon) American Carbon currently has seven coal mining and processing operating subsidiaries: McCoy Elkhorn Coal LLC (doing business as McCoy Elkhorn Coal Company) (McCoy Elkhorn), Knott County Coal LLC (Knott County Coal), Deane Mining, LLC (Deane Mining), Wyoming County Coal LLC (Wyoming County), Perry County Resources (Perry County) located in eastern Kentucky and western West Virginia within the Central Appalachian coal basin, and ERC Mining Indiana Corporation (ERC) located in southwest Indiana within the Illinois coal basin.
Efforts to diversify revenue streams have led to the establishment of additional subsidiaries; American Metals LLC (AM) which is focused on the recovery and sale of recovered metal and steel and American Rare Earth LLC (ARE) which is focused on the aggregation and monetization of critical and rare earth element deposits and end of life magnets and batteries.
Efforts to diversify revenue streams have led to the establishment of additional subsidiaries; American Metals LLC (AM) which is focused on the aggregation, recovery and sale of recovered metal and steel and American Rare Earth LLC (ARE) which is focused on the purification and monetization of critical and rare earth element deposits and end of life magnets and batteries.
Historic Metallurgical Coal Prices Historic CAPP Thermal Coal Prices Year End Hampton Road Index HCC - High Year End Big Sandy / Kanawha Rate District 2014 $ 100.35 2014 $ 56.00 2015 $ 80.25 2015 $ 45.55 2016 $ 223.00 2016 $ 50.65 2017 $ 210.00 2017 $ 60.90 2018 $ 205.34 2018 $ 68.12 2019 $ 135.00 2019 $ 60.30 2020 $ 101.00 2020 $ 54.35 2021 $ 342.00 2021 $ 92.50 2022 $ 364.53 2022 $ 148.57 4 Table of Contents McCoy Elkhorn Coal LLC General: Located primarily within Pike County, Kentucky, McCoy Elkhorn is currently comprised of one active mine (the Carnegie 1 Mine), one mine in “idle” status (the Mine#15 Mine), two coal preparation facilities (Bevins #1 and Bevins #2), and other mines and permits in various stages of development or reclamation.
Historic Metallurgical Coal Prices Historic CAPP Thermal Coal Prices Year End Hampton Road Index HCC - High Year End Big Sandy / Kanawha Rate District 2014 $ 100.35 2014 $ 56.00 2015 $ 80.25 2015 $ 45.55 2016 $ 223.00 2016 $ 50.65 2017 $ 210.00 2017 $ 60.90 2018 $ 205.34 2018 $ 68.12 2019 $ 135.00 2019 $ 60.30 2020 $ 101.00 2020 $ 54.35 2021 $ 342.00 2021 $ 92.50 2022 $ 364.53 2022 $ 148.57 2023 $ 327.00 2023 $ 78.65 4 Table of Contents McCoy Elkhorn Coal LLC General: Located primarily within Pike County, Kentucky, McCoy Elkhorn is currently comprised of one active mine (the Carnegie 1 Mine), one mine in “idle” status (the Mine#15 Mine), two coal preparation facilities (Bevins #1 and Bevins #2), and other mines and permits in various stages of development or reclamation.
Approximate coal deposits owned by Wyoming County is 5,668,115 tons and leased by Knott County totals 0 tons. Mines: The mining permits held by Wyoming County Coal are in various stages of planning with no mines currently in production.
Approximate coal deposits owned by Wyoming County is 5,668,115 tons and leased by Knott County totals 0 tons. Mines: The mining permits held by Wyoming County Coal are in various stages of planning and development with no mines currently in production.
In 2022, Mine #15 produced approximately 0 tons. In 2021, Mine #15 produced approximately 0 tons. During 2022 and 2021, 100% and 100%, respectively, of the coal extracted from Mine #15 was high-vol “B” metallurgical coal quality, of which 100% was sold into the PCI market and 100% was sold into the metallurgical market, respectively.
In 2023, Mine #15 produced approximately 0 tons. In 2022, Mine #15 produced approximately 0 tons. During 2022 and 2021, 100% and 100%, respectively, of the coal extracted from Mine #15 was high-vol “B” metallurgical coal quality, of which 100% was sold into the PCI market and 100% was sold into the metallurgical market, respectively.
Currently, McCoy Elkhorn’s Carnegie 1 and 2 Mines and Perry’s E4-1 mine and are primarily run by contract labor under Company management and direction, and the Company’s various coal preparation facilities are run by contract labor. The Company currently has approximately 17 direct employees.
Currently, McCoy Elkhorn’s Carnegie 1 and 2 Mines and Perry’s E4-1 mine and are primarily run by contract labor under Company management and direction, and the Company’s various coal preparation facilities are run by contract labor. The Company currently has approximately 23 direct employees.
Access Energy has the estimated capacity to produce up to approximately 20,000 tons per month of coal. In 2022, Access Energy produced approximately 0 tons. In 2021, Access Energy produced approximately 0 tons.
Access Energy has the estimated capacity to produce up to approximately 20,000 tons per month of coal. In 2023, Access Energy produced approximately 0 tons. In 2022, Access Energy produced approximately 0 tons.
Each of these laws can impact permitting or planned operations and can result in additional costs or operational delays. Property Our principal offices are located at 12115 Visionary Way, Fishers, Indiana 46038. We pay $5,869 per month in rent for the office space and the rental lease expires December 2032.
Each of these laws can impact permitting or planned operations and can result in additional costs or operational delays. Property Our principal offices are located at 12115 Visionary Way, Fishers, Indiana 46038. We pay $8,911.56 per month in rent for the office space and the rental lease expires December 2032.
During 2021 100% of the coal extracted from the Carnegie 1 Mine was high-vol “B” metallurgical coal quality, of which 100% was sold into the metallurgical market. The mineral being mined through Carnegie 1 is leased from a 3 rd party professional mineral company.
During 2023 and 2022 100% of the coal extracted from the Carnegie 1 Mine was high-vol “B” metallurgical coal quality, of which 100% was sold into the metallurgical market. The mineral being mined through Carnegie 1 is leased from a 3 rd party professional mineral company.
In 2022, the Wayland Surface Mine produced approximately 0 tons. In 2021, the Wayland Surface Mine produced approximately 0 tons. During 2022, the Wayland Surface Mine was idled due to the company’s focus on the metallurgical and industrial markets.
In 2022, the Wayland Surface Mine produced approximately 0 tons. In 2021, the Wayland Surface Mine produced approximately 0 tons. During 2022, the Wayland Surface Mine was idled due to the company’s focus on the metallurgical and industrial markets. No tons were produced during 2023.
Coal Sales 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. During the year ended December 31, 2022, coal sales came from the Company’s Perry’ E4-2 mine and McCoy’s Carnegie 1 and 2 mines.
Coal Sales 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. During the year ended December 31, 2023, coal sales came from the Company’s Carnegie 1 and 2 mines.
Approximate coal deposits owned is 0 tons and leased by McCoy Elkhorn totals 11,287,904 tons. The current leases contain minimum annual payments of $20,000 and production royalty payments of 7% of gross sales price. Mines: Within the McCoy Elkhorn subsidiary, Carnegie 1 is deemed material under Items 1304 of Regulation S-K.
Approximate coal deposits owned is 0 tons and leased by McCoy Elkhorn totals 11,108,724 tons as of September 30, 2023. The current leases contain minimum annual payments of $20,000 and production royalty payments of 7% of gross sales price. Mines: Within the McCoy Elkhorn subsidiary, Carnegie 1 is deemed material under Items 1304 of Regulation S-K.
Employees ARC, through its operating subsidiaries, employs a combination of company employees and contract labor to mine coal, process coal, and related functions. The Company is continually evaluating the use of company employees and contract labor to determine the optimal mix of each, given the needs of the Company.
The following map shows the location of our mining properties: Employees ARC, through its operating subsidiaries, employs a combination of company employees and contract labor to mine coal, process coal, and related functions. The Company is continually evaluating the use of company employees and contract labor to determine the optimal mix of each, given the needs of the Company.
As of December 31, 2022, and 2021, we had outstanding surety bonds at all of our mining operations totaling approximately $30.94 million and $31.28 million, respectively.
As of December 31, 2023, and 2022, we had outstanding surety bonds at all of our mining operations totaling approximately $23.49 million and $30.94 million, respectively.
In 2022, the E4-2 mine produced approximately 105,577.11 tons and sold the coal at an average price of $153.43. During the period of ownership by the Company, 100% of the coal sold was sold as industrial stoker and PCI. In 2021, the E4-2 mine produced approximately 79,546.75 tons and sold the coal at an average price of $83.17.
In 2023, the EF-2 mine produced approximately 0 tons. In 2022, the E4-2 mine produced approximately 105,577.11 tons and sold the coal at an average price of $153.43. During the period of ownership by the Company, 100% of the coal sold was sold as industrial stoker and PCI.
This approval is subject to the review of both unabated or uncorrected violations that are listed on the Applicator Violator List. The Company, to include several of its subsidiaries, does have unabated and/or uncorrected violations that are listed on the Applicator Violator List.
The Company, to include several of its subsidiaries, does have unabated and/or uncorrected violations that are listed on the Applicator Violator List.
The Company also utilizes various office spaces on-site at its coal mining operations and coal preparation plant locations in eastern Kentucky, with such rental payments covered under any surface lease contracts with any of the surface land owners.
This for the period of 2 years with a rate of $5,059.28 a month which has ability for annual extensions The Company also utilizes various office spaces on-site at its coal mining operations and coal preparation plant locations in eastern Kentucky, with such rental payments covered under any surface lease contracts with any of the surface land owners.
The Company does not plan to mine the property and purchased it for monetization of infrastructure assets and to reclaim the property which was in process during 2021.
ERC sold its coal in the past as thermal coal to utilities. The Company does not plan to mine the property and purchased it for monetization of infrastructure assets and to reclaim the property which was in process during 2021 and continued during 2022 and 2023.
On May 8, 2020, the PointRock Mine permits were released from the Company’s control upon the settlement agreement with Empire. Beginning in January 2020 through the report date, Mine #15 and Carnegie 1 mines were idled due to the adverse market effects Covid-19 global pandemic. The Carnegie 1 mine restarted during October 2021.
Beginning in January 2020 through the report date, Mine #15 and Carnegie 1 mines were idled due to the adverse market effects Covid-19 global pandemic. The Carnegie 1 mine restarted during October 2021.
On October 8, 2021, ReElement entered into a Commercial Lease for 6,700 square feet of warehouse space for the purpose of building a commercial grade critical element purification facility. This for the period of 2 years with a rate of $4,745.83 a month.
On October 8, 2021, ReElement entered into a Commercial Lease for 6,700 square feet of warehouse space for the operation of a commercial grade critical element purification facility.
The associated “Bluegrass 4” rail loadout is a batch-weight rail loadout with 135 car storage capacity and services by CSX Transportation in their Hazard/Elkhorn rate district. The Davidson Branch Preparation Plant is owned by Perry County Resources. We are currently utilizing less than 10% of the available processing capacity of the Davidson Branch Preparation Plant.
Processing and Transportation: The Davidson Branch Preparation Plant is a 1,300 ton-per-hour coal preparation facility located near Hazard, Kentucky. The associated “Bluegrass 4” rail loadout is a batch-weight rail loadout with 135 car storage capacity and services by CSX Transportation in their Hazard/Elkhorn rate district. The Davidson Branch Preparation Plant is owned by Perry County Resources.
The preparation plant utilizes a belt press technology which eliminates the need for pumping slurry into a slurry pond for storage within an impoundment. The Company is in the initial planning phase of getting estimates on the cost to upgrade the preparation facility to a modern 350 ton per hour preparation facility, although no cost estimates have yet been received.
The preparation plant utilizes a belt press technology which eliminates the need for pumping slurry into a slurry pond for storage within an impoundment. The Company is in the process of upgrading and redeveloping the preparation facility to a modern 350 ton per hour preparation facility.
During 2022, American Rare Earth LLC changed its name to ReElement Technologies, LLC.
During 2022, American Rare Earth LLC changed its name to ReElement Technologies LLC (ReElement). During 2023, ReElement filed and changed from a limited liability company to a corporation.
During the period of ownership by the Company, 100% of the coal sold was sold as industrial stoker and PCI. Beginning in January 2020, The E4-2 mine was idled due to the adverse market effects Covid-19 global pandemic. The E4-2 Mine was restarted during March 2021.
Beginning in January 2020, The E4-2 mine was idled due to the adverse market effects Covid-19 global pandemic. The E4-2 Mine was restarted during March 2021. During 2022, the E4-2 Mine was idled due to regional historic flooding and the declared national emergency.
The Company acquired the Pioneer Preparation Plants as an idled facility, and since acquisition, no work has been performed at the facility.
The Company is also in the planning phase of upgrading the rail load out facility to a modern batch weight load out system. The Company acquired the Pioneer Preparation Plants as an idled facility, and since acquisition, no work has been performed at the facility.
The Company may, at times, purchase coal from other regional producers to sell on its contracts. Coal sales at the Company is primarily outsource to third party intermediaries who act on the Company’s behalf to source potential coal sales and contracts.
Coal sales at the Company is primarily outsource to third party intermediaries who act on the Company’s behalf to source potential coal sales and contracts. The third-party intermediaries have no ability to bind the Company to any contracts, and all coal sales are approved by management of the Company.
In 2022, the Carnegie 1 Mine produced approximately 105,607 tons and sold at an average of $233.11 per ton. In 2021, the Carnegie 1 Mine produced approximately 7,889.63 tons and sold at an average of $138.00 per ton.
In 2023, the Carnegie 2 Mine produced approximately 13,460.99 tons and sold at an average of $237.31 per ton. In 2022, the Carnegie 2 Mine produced approximately 6,200 tons and sold at an average of $233.11 per ton.
The mineral being mined through Carnegie 1 is leased from a 3 rd party professional mineral company. Coal mined from the lease requires a payment of greater of $1.75 per ton or 6% of gross sales price. American Carbon acquired the PointRock Mine in April 2018.
Coal mined from the lease requires a payment of greater of $1.75 per ton or 6% of gross sales price. American Carbon acquired the PointRock Mine in April 2018. On May 8, 2020, the PointRock Mine permits were released from the Company’s control upon the settlement agreement with prior permit holder.
Both the Davidson Branch Preparation Plant and the rail loadout are operational, and any work required on any of the plant or loadouts would be routine maintenance. The allocated cost of for the property at Perry County Resources paid by the Company is $1,550,663.
We are currently utilizing less than 10% of the available processing capacity of the Davidson Branch Preparation Plant. Both the Davidson Branch Preparation Plant and the rail loadout are operational, and any work required on any of the plant or loadouts would be routine maintenance.
Additional Permits: In addition to the above mine, preparation facility, and related permits, Perry County Resources holds four additional coal mining permits that are idled or in development. Any idled mines that are brought into production would require significant upfront capital investment and there is no assurance of the feasibility of any such new operations.
The allocated cost of for the property at Perry County Resources paid by the Company is $1,550,663. Additional Permits: In addition to the above mine, preparation facility, and related permits, Perry County Resources holds four additional coal mining permits that are idled or in development.
These fees are currently scheduled to be in effect until December 31, 2022. Mining Permits and Approvals Numerous governmental permits and approvals are required for mining operations.
In 2023, we recorded $X.X million of expense related to these reclassification fees. Mining Permits and Approvals Numerous governmental permits and approvals are required for mining operations.
Three of the idled permits were sold to an unrelated entity on March 4, 2020 for $700,000 cash and $300,000 of value for equipment. As of the report date, the permits have not been fully transferred as they await final regulatory approval. The transfer of any new permits to the Company is subject to regulatory approval.
As of the report date, the permits have not been fully transferred as they await final regulatory approval. The transfer of any new permits to the Company is subject to regulatory approval. This approval is subject to the review of both unabated or uncorrected violations that are listed on the Applicator Violator List.
In 2022, the Carnegie 2 Mine produced approximately 6,200 tons and sold at an average of $233.11 per ton. In 2021, the Carnegie 2 Mine produced approximately 0 tons. During 2022 100% of the coal extracted from the Carnegie 2 Mine was high-vol “B” metallurgical coal quality, of which 100% was sold into the metallurgical market.
During 2023 and 2022 100% of the coal extracted from the Carnegie 2 Mine was high-vol “B” metallurgical coal quality, of which 100% was sold into the metallurgical market. The mineral being mined through Carnegie 1 is leased from a 3 rd party professional mineral company.
The third-party intermediaries have no ability to bind the Company to any contracts, and all coal sales are approved by management of the Company. Due to the Covid-19 global pandemic, traditional sales channels have been disrupted.
Three customers made up approximately 62%, 28% and 19% of our coal revenues for the year ended December 31, 2022. Due to the Covid-19 global pandemic, traditional sales channels have been disrupted.
Removed
The Company is also in the initial planning phase of getting estimates on the cost and timing of upgrading the rail load out facility to a modern batch weight load out system, although no cost estimates have yet been received.
Added
In 2023, the Carnegie 1 Mine produced approximately 67,372.57 tons and sold at an average of $180.32 per ton. In 2022, the Carnegie 1 Mine produced approximately 59,911.58 tons and sold at an average of $166.09 per ton..
Removed
During 2022, the E4-2 Mine was idled due to regional historic flooding and the declared national emergency. Processing and Transportation: The Davidson Branch Preparation Plant is a 1,300 ton-per-hour coal preparation facility located near Hazard, Kentucky.
Added
Any idled mines that are brought into production would require significant upfront capital investment and there is no assurance of the feasibility of any such new operations. Three of the idled permits were sold to an unrelated entity on March 4, 2020 for $700,000 cash and $300,000 of value for equipment.
Removed
Below is a map showing the location of the Davidson Prep Plant, Bluegrass 4 rail Loadout, and E4-2 Mine at Perry County Resources: 12 Table of Contents Quest Processing LLC Quest Energy’s wholly-owned subsidiary, Quest Processing, manages the assets, operations, and personnel of the certain coal processing and transportation facilities of Quest Energy’s various other subsidiaries, namely the Supreme Energy Preparation Facility (of Knott County Coal LLC), and Mill Creek Preparation Facility (of Deane Mining LLC).
Added
During the year ended December 31, 2022, coal sales came from the Company’s Perry’ E4-2 mine and McCoy’s Carnegie 1 and 2 mines. The Company may, at times, purchase coal from other regional producers to sell on its contracts.
Removed
Quest Processing LLC was the recipient of a New Markets Tax Credit loan that allowed for the payment of certain expenses of these preparation facilities. As part of that financing transaction, Quest Energy loaned ERC Mining LLC, an entity owned by members of Quest Energy, Inc.’s management, $4,120,000 to facilitate the New Markets Tax Credit loan.
Added
Met coal accounted for approximately 100% and 91% of our coal revenues for the years ended December 31, 2023 and 2022, respectively. Two customers made up approximately 74% and 26% of our coal revenues for the year ended December 31, 2023.
Removed
ERC Mining LLC is considered a variable interest entity and is consolidated into Quest Energy’s financial statements. The credit facility obligation was fulfilled and forgiven in November 2021.
Removed
ERC Mining Indiana Corporation (the Gold Star Mine) General: Located primarily within Greene and Sullivan Counties, Indiana, ERC Mining Indiana Corporation (“ERC”) is currently comprised of one idled underground mine (the Gold Star Mine), one idled coal preparation plant and rail loadout. ERC sold its coal in the past as thermal coal to utilities.

Item 2. Properties

Properties — owned and leased real estate

4 edited+0 added−0 removed1 unchanged
Biggest changeThe Company also utilizes various office spaces on-site at its coal mining operations and coal preparation plant locations in eastern Kentucky, with such rental payments covered under any surface lease contracts with any of the surface land owners.
Biggest changeThis for the period of 2 years with a rate of $5,059.28 a month which has ability for annual extensions The Company also utilizes various office spaces on-site at its coal mining operations and coal preparation plant locations in eastern Kentucky, with such rental payments covered under any surface lease contracts with any of the surface land owners.
On August 17, 2021, American Rare Earth entered into a Commercial Land Lease sublease agreement with Land Betterment for nearly 7 acres of land for the purpose of building a commercial grade critical element purification facility. The sublease is for the period of 5 years with a rate of $3,500 a month.
On August 17, 2021, ReElement entered into a Commercial Land Lease sublease agreement with Land Betterment for nearly 7 acres of land for the purpose of building a commercial grade critical element purification facility. The sublease is for the period of 5 years with a rate of $3,500 a month.
Item 2. Properties. Our principal offices are located at 12115 Visionary Way, Fishers, Indiana 46038. We pay $5,869 per month in rent for the office space and the rental lease expires December 2032.
Item 2. Properties. Our principal offices are located at 12115 Visionary Way, Fishers, Indiana 46038. We pay $8,911.56 per month in rent for the office space and the rental lease expires December 2032.
On October 8, 2021, American Rare Earth entered into a Commercial Lease for 6,700 square feet of warehouse space for the purpose of building a commercial grade critical element purification facility. This for the period of 2 years with a rate of $4,745.83 a month.
On October 8, 2021, ReElement entered into a Commercial Lease for 6,700 square feet of warehouse space for the operation of a commercial grade critical element purification facility.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

16 edited+1 added−14 removed30 unchanged
Biggest changeOn January 6, 2021, the Company received a notice of deficiency related to Nasdaq’s required annual shareholder meeting standards which was cleared on April 26, 2021. Recent Sales of Unregistered Securities. CLASS A COMMON STOCK During the periods ending December 31, 2022 and December 31, 2021, the Company engaged in the sale of its unregistered securities as described below.
Biggest changeCLASS A COMMON STOCK During the periods ending December 31, 2023 and December 31, 2022, the Company engaged in the sale of its unregistered securities as described below. The shares of our Class A Common Stock were issued pursuant to an exemption from registration in Section 4(a)(2) of the Securities Act of 1933.
Except as provided by law or in a preferred stock designation, the holders of preferred stock will not be entitled to vote at or receive notice of any meeting of stockholders.
Except as provided by law or in a preferred stock designation, the holders of preferred stock will not be entitled to vote at or receive notice of any meeting of stockholders.
Upon our liquidation, dissolution, distribution of assets or other winding up, the holders of the Series A Preferred stock shall be entitled to receive in preference to the holders of the Common Stock a per share amount equal to $1.65 per share. 27 Table of Contents SERIES B PREFERRED STOCK Our certificate of incorporation authorizes our Board of Directors, subject to any limitations prescribed by law, without further stockholder approval, to establish and to issue from time to time our Series B Preferred stock, par value $0.001 per share, covering up to an aggregate of 20,000,000 shares of Series B Preferred stock.
Upon our liquidation, dissolution, distribution of assets or other winding up, the holders of the Series A Preferred stock shall be entitled to receive in preference to the holders of the Common Stock a per share amount equal to $1.65 per share. 26 Table of Contents SERIES B PREFERRED STOCK Our certificate of incorporation authorizes our Board of Directors, subject to any limitations prescribed by law, without further stockholder approval, to establish and to issue from time to time our Series B Preferred stock, par value $0.001 per share, covering up to an aggregate of 20,000,000 shares of Series B Preferred stock.
The following table sets forth information as reported by the Nasdaq Capital Markets for the high and low bid and ask prices for each of the eight quarters ending December 31, 2022 for our common stock. The following prices reflect inter-dealer prices without retail markup, markdown or commissions and may not reflect actual transactions.
The following table sets forth information as reported by the Nasdaq Capital Markets for the high and low bid and ask prices for each of the eight quarters ending December 31, 2023 for our common stock. The following prices reflect inter-dealer prices without retail markup, markdown or commissions and may not reflect actual transactions.
No fractional shares will be issued upon the exercise of the options or warrants. The options and warrants are not listed on any securities exchange. Except as otherwise provided within the option or warrant, the option and warrant holders have no rights or privileges as members of the Company until they exercise their options or warrants. 29 Table of Contents
No fractional shares will be issued upon the exercise of the options or warrants. The options and warrants are not listed on any securities exchange. Except as otherwise provided within the option or warrant, the option and warrant holders have no rights or privileges as members of the Company until they exercise their options or warrants. 28 Table of Contents
We have not paid any dividends and do not have any current plans to pay any dividends. 25 Table of Contents Public market for common stock Effective, February 15, 2019, The Company’s Common Stock began trading on the NASDAQ Capital Market.
We have not paid any dividends and do not have any current plans to pay any dividends. 25 Table of Contents Public market for common stock Effective, February 15, 2019, The Company’s Common Stock began trading on the NASDAQ Capital Market. Recent Sales of Unregistered Securities.
This number includes one position at Cede & Co., which includes an unknown number of shareholders holding shares of 49,847,753 Class A Common Stock. The number of both shareholders of record and beneficial shareholders may change on a daily basis and without the Company’s immediate knowledge.
This number includes one position at Cede & Co., which includes an unknown number of shareholders holding shares of 51,895,080 Class A Common Stock. The number of both shareholders of record and beneficial shareholders may change on a daily basis and without the Company’s immediate knowledge.
The shares of our Class A Common Stock were issued pursuant to an exemption from registration in Section 4(a)(2) of the Securities Act of 1933. These shares of our Class A Common Stock qualified for exemption under Section 4(a)(2) of the Securities Act of 1933 since the issuance of shares by us did not involve a public offering.
These shares of our Class A Common Stock qualified for exemption under Section 4(a)(2) of the Securities Act of 1933 since the issuance of shares by us did not involve a public offering.
During 2021, the Company issued 6,242,859 shares of Class A Common Stock pursuant to debt conversions. During 2021, the Company issued 162,000 shares of Class A Common Stock pursuant to various consulting arrangements. During 2021, the Company re-purchased 0 shares of Class A Common Stock pursuant to stock re-purchase program.
During 2022, the Company issued 6,242,859 shares of Class A Common Stock pursuant to debt conversions. During 2022, the Company issued 137,250 shares of Class A Common Stock pursuant to various consulting arrangements. During 2022, the Company re-purchased 86,410 shares of Class A Common Stock pursuant to stock re-purchase program.
The warrant provides the option to purchase 60,000 Class A Common Shares at a price of $3.50. The warrants expire on July 28, 2026.
On July 28, 2022, the Company issued Common Stock Purchase Warrant “A-12” in conjunction with a IR Services. The warrant provides the option to purchase 60,000 Class A Common Shares at a price of $3.50. The warrants expire on July 28, 2026.
High Low Quarters ending in 2021 March 31 $ 8.02 $ 1.08 June 30 4.20 2.59 September 30 2.64 1.75 December 31 $ 2.67 $ 1.59 Quarters ending in 2022 March 31 $ 2.64 $ 2.32 June 30 1.45 1.37 September 30 2.74 2.60 December 31 $ 1.33 $ 1.21 (b) Holders As of March 30, 2023, the Company had 153 Class A Common Stock shareholders of record holding 78,213,454 shares of our Class A Common Stock issued and outstanding.
High Low Quarters ending in 2022 March 31 $ 2.64 $ 2.32 June 30 1.45 1.37 September 30 2.74 2.60 December 31 $ 1.33 $ 1.21 Quarters ending in 2023 March 31 $ 1.72 $ 1.31 June 30 2.03 1.11 September 30 2.04 1.25 December 31 $ 1.72 $ 1.29 (b) Holders As of March 30, 2024, the Company had 139 Class A Common Stock shareholders of record holding 79,179,958 shares of our Class A Common Stock issued and outstanding.
On February 21, 2019, all outstanding shares totaling 50,000 of Series C preferred shares were converted into 122,750 shares of Class A Common Stock in a cashless exchange. 28 Table of Contents “BLANK CHECK” PREFERRED STOCK Our certificate of incorporation authorizes our board of directors, subject to any limitations prescribed by law, without further stockholder approval, to establish and to issue from time to time up to an aggregate of 70,000,000 shares of preferred stock that is considered “blank check”.
“BLANK CHECK” PREFERRED STOCK Our certificate of incorporation authorizes our board of directors, subject to any limitations prescribed by law, without further stockholder approval, to establish and to issue from time to time up to an aggregate of 70,000,000 shares of preferred stock that is considered “blank check”.
The holders of the Series C Preferred shall accrue and pay-in-kind with additional Series C Preferred stock a dividend based on an 10.0% annual percentage rate, compounded annually in arrears, for any Series C Preferred stock that is outstanding at the end of such prior year.
The holders of the Series C Preferred shall accrue and pay-in-kind with additional Series C Preferred stock a dividend based on an 10.0% annual percentage rate, compounded annually in arrears, for any Series C Preferred stock that is outstanding at the end of such prior year. 27 Table of Contents The holders of the Series C Preferred stock are entitled to convert into common shares, at the holder’s discretion, at a conversion price of Six Dollars ($6.00) per share of common stock, subject to certain price adjustments found in the Series C Preferred stock purchase agreements.
During 2022, the Company re-purchased 86,410 shares of Class A Common Stock pursuant to stock re-purchase program.
During 2023, the Company issued 9,420,230 shares of Class A Common Stock pursuant to debt conversions. During 2023, the Company issued 49,020 shares of Class A Common Stock pursuant to consulting arrangements. During 2023, the Company re-purchased 86,410 shares of Class A Common Stock pursuant to stock re-purchase program.
Based on an analysis of the above factors, we believe we have met the requirements to qualify for exemption under section 4(a)(2) of the Securities Act of 1933 for this transaction. On March 17, 2021, 425,000 of restricted common shares were sold. Gross proceeds to the Company amounted to $1,275,000.
Based on an analysis of the above factors, we believe we have met the requirements to qualify for exemption under section 4(a)(2) of the Securities Act of 1933 for this transaction. During 2022, the Company issued 1,587,916 share of Class A Common Stock pursuant to warrant conversions.
During July and September 2022, the Company issued 2,675,000 Employee Stock options under the current plan. The individual option awards vest over a period of 1 to 9 years. On July 28, 2022, the Company issued Common Stock Purchase Warrant “A-12” in conjunction with a IR Services.
The blank check preferred stock shall be designed by the Board of Directors at the time of classification OPTIONS AND WARRANTS During July and September 2022, the Company issued 2,675,000 Employee Stock options under the current plan. The individual option awards vest over a period of 1 to 9 years.
Removed
On June 9, 2021, the Company issued 8,600,000 shares of Class A Common Stock. Net proceeds to the Company after offering expenses amounted to $27,943,000. 26 Table of Contents During 2021, the Company issued 3,826,532 share of Class A Common Stock pursuant to warrant conversions.
Added
On February 21, 2019, all outstanding shares totaling 50,000 of Series C preferred shares were converted into 122,750 shares of Class A Common Stock in a cashless exchange.
Removed
During 2022, the Company issued 1,587,916 share of Class A Common Stock pursuant to warrant conversions. During 2022, the Company issued 6,242,859 shares of Class A Common Stock pursuant to debt conversions. During 2022, the Company issued 137,250 shares of Class A Common Stock pursuant to various consulting arrangements.
Removed
The holders of the Series C Preferred stock are entitled to convert into common shares, at the holder’s discretion, at a conversion price of Six Dollars ($6.00) per share of common stock, subject to certain price adjustments found in the Series C Preferred stock purchase agreements.
Removed
The blank check preferred stock shall be designed by the Board of Directors at the time of classification OPTIONS AND WARRANTS On June 18, 2020, the Board issued a total of 750,000 options to 2 employees of the Company under the 2018 Plan. The options have an expiration date of June 17, 2027 and have an exercise price of $2.630.
Removed
The options vested equally over the course of seven years, subject to restrictions regarding the employee’s continued employment by the Company. On July 16, 2020, the Board issued a total of 50,000 options to a director of the Company under the 2018 Plan as amended. The options have an expiration date of March 15, 2021 and vest immediately.
Removed
On November 23, 2020, the Board issued a total of 302,439 options to 3 employees and 4 directors. The options have an expiration of November 22, 2027 and vest immediately. On January 26, 2021, the Company issued Common Stock Purchase Warrant “A-10” for rare earth capture advisory.
Removed
The warrant provides the option to purchase 10,000 Class A Common Shares at a price of $2.05. The warrants expire on January 26, 2024. On February 2, 2021, the Company issued Common Stock Purchase Warrant “C-37” in conjunction with the issuance of $600,000 convertible note.
Removed
The warrant provides the option to purchase 60,000 Class A Common Shares at a price of $1.50. The warrants expire on February 2, 2023. On February 7, 2021, the Company issued Common Stock Purchase Warrant “A-11” for rare earth processing advisory. The warrant provides the option to purchase 50,000 Class A Common Shares at a price of $4.25.
Removed
The warrants expire on February 7, 2026. On March 11, 2021, the Company issued Common Stock Purchase Warrant “C-38” in conjunction with a restricted stock purchase. The warrant provides the option to purchase 42,500 Class A Common Shares at a price of $5.00. The warrants expire on March 11, 2023.
Removed
On March 12, 2021, the Company issued Common Stock Purchase Warrant “C-39” in conjunction with a restricted stock purchase. The warrant provides the option to purchase 42,500 Class A Common Shares at a price of $5.00. The warrants expire on March 12, 2023. On March 15, 2021, the Company issued Common Stock Purchase Warrant “C-39” in conjunction with consulting services.
Removed
The warrant provides the option to purchase 75,000 Class A Common Shares at a price of $4.59. The warrants expire on March 15, 2026. On March 16, 2021, the Company issued Common Stock Purchase Warrant “C-40” in conjunction with a restricted stock purchase. The warrant provides the option to purchase 21,250 Class A Common Shares at a price of $5.00.
Removed
The warrants expire on March 16, 2023. On June 9, 2021, the Company issued Common Stock Purchase Warrant “C-38” in conjunction with a common stock offering. The warrant provides the option to purchase 2,150,000 Class A Common Shares at a price of $3.50. The warrants expire on June 9, 2026.
Removed
On June 9, 2021, the Company issued Common Stock Purchase Warrant “C-39” in conjunction with a common stock offering. The warrant provides the option to purchase 2,150,000 Class A Common Shares at a price of $3.50. The warrants expire on June 9, 2026. On July 20, 2021, the Company issued 150,000 Employee Stock options under the current plan.
Removed
The options vest over their 7-year life. On September 3, 2021, the Company issued 100,000 Employee Stock options under the current plan. The options vest over their 7-year life. During December 2021, the Company issued 1,020,000 Employee Stock options under the current plan. The individual option awards vest over a period of 1 to 9 years.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

10 edited+19 added−7 removed15 unchanged
Biggest changeTo meet specific demand and customer requests, Perry County and Carnegie 1 were re-opened with updated mine plans and more efficient long term operating structure. This re-working included one time development costs for expanding and increasing efficient capacity at the operating locations. Total Other Income/(Expenses) for the period ended December 31, 2022 were $312,179 and 2021 were $(232,994), respectively.
Biggest changeThe decrease in production taxes and royalties in the year ended December 31, 2023 is due to lower sales volumes and prices. Development. To meet specific demand and customer requests, Perry County and Carnegie 1 were re-opened with updated mine plans and more efficient long term operating structure.
The Company will use a combination of cash proceeds from operations, conversation of common stock warrants, issuance of common stock for cash or for debt conversion and issuance of new debt instruments to satisfy both short term and long term obligations, including the settlement of payables and debt that are in default of their original agreements.
The Company will use a combination of cash proceeds from operations, issuance of common stock for cash or for debt conversion and issuance of new debt instruments to satisfy both short term and long term obligations, including the settlement of payables and debt that are in default of their original agreements.
Coal consumption and production in the U.S. have been driven in recent periods by several market dynamics and trends, such as the global economy, a strong U.S. dollar and accelerating production cuts. Results of Operations. Year Ended December 31, 2022 compared to Year Ended December 31, 2021. Revenues.
Coal consumption and production in the U.S. have been driven in recent periods by several market dynamics and trends, such as the global economy, a strong U.S. dollar and accelerating production cuts. Results of Operations. Year Ended December 31, 2023 compared to Year Ended December 31, 2022.
The assumptions about future cash flows and growth rates are based on the current and long-term business plans related to the long-lived assets. 32 Table of Contents
The assumptions about future cash flows and growth rates are based on the current and long-term business plans related to the long-lived assets. 33 Table of Contents
Off-Balance Sheet Arrangements As of December 31, 2022, we had no off-balance sheet arrangements. 31 Table of Contents Critical Accounting Policies and Estimates The preparation of consolidated financial statements in conformity with U.S.
We had no material commitments for capital expenditures as of December 31, 2023. Off-Balance Sheet Arrangements As of December 31, 2023, we had no off-balance sheet arrangements. 32 Table of Contents Critical Accounting Policies and Estimates The preparation of consolidated financial statements in conformity with U.S.
For the year ended 2022, tons sold to industrial and specialty end users amounted to 105,577.11 with a realized sales price of $153.43. For the year ended 2022, 100% of coal sales revenue was contributed by Perry County for industrial and specialty end users.
Steelmaking coal was contributed by McCoy Elkhorn’s Carnegie 1 and Carnegie 2 mines. For the year ended 2022, tons sold to industrial and specialty end users amounted to 105,577.11 with a realized sales price of $153.43.
Contribution of revenues: Year ended 2022 For the year ended 2022, tons sold to steel making end users amounted to 105,607.10 with a realized sales price of $233.11. Steelmaking coal was contributed by McCoy Elkhorn’s Carnegie 1 and Carnegie 2 mines.
Steelmaking coal was contributed by McCoy Elkhorn’s Carnegie 1 mine. For the year ended 2023, tons sold to industrial and specialty end users amounted to 0 tons. Year ended 2022 For the year ended 2022, tons sold to steel making end users amounted to 111,807 with a realized sales price of $233.11.
We are not aware of any trends or known demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in material increases or decreases in liquidity. Business Effect of Covid-19.
We are not aware of any trends or known demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in material increases or decreases in liquidity. 31 Table of Contents Cash Flows Year Ended December 31, 2023 compared to Year Ended December 31, 2022.
For the year ended 2021, tons sold to industrial and utility end users amounted to 79,546.75 with a realized sales price of $83.17. For the year ended 2021, 100% of coal sales revenue was contributed by Perry County for industrial and specialty end users. 30 Table of Contents Expenses.
For the year ended 2022, 100% of coal sales revenue was contributed by Perry County for industrial and specialty end users. 30 Table of Contents Cost and Expenses. Cost of sales. The decrease in cost of sales is due to lower sales volumes as a result of the ceasing of production on the Perry County mines. Accretion.
The primary drivers for the decrease in liability balance was execution of convertible debt. Liquidity and Capital Resources. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern which contemplates, among other things, the realization of assets and satisfaction of liabilities in the ordinary course of business.
These financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred recurring losses and as of December 31, 2023, had an accumulated deficit of $178,694,329.
Removed
Revenues for the year ended December 31, 2022 were $39,474,269 and 2021 were $7,755,306, respectively. The primary drivers for revenue increase was additional demand for coal since Covid-19. Trends which led to revenue growth were the re-opening of our mines after Covid-19 lock down and demand for our coal and the products that it is used in.
Added
Year Ended December 31, 2023 2022 $ Change % Change Revenue Coal sales $ 16,120,841 $ 39,103,995 $ (22,983,154 ) -59 % Metal recovery and sales 66,552 48,199 18,353 100 % Royalty income 556,682 322,075 234,607 73 % Total revenue 16,744,075 39,474,269 (22,730,194 ) -58 % Operating expenses (income) Cost of coal sales and processing 11,611,886 21,687,656 (10,075,770 ) -46 % Accretion 993,165 1,344,047 (350,882 ) -26 % Depreciation 46,953 2,157,763 (2,110,810 ) -98 % Amortization of mining rights 1,240,914 1,238,449 2,465 0 % General and administrative 7,013,833 4,020,464 2,993,369 74 % Professional fees 1,340,745 1,103,322 237,423 22 % Production taxes and royalties 2,647,655 3,785,049 (1,137,394 ) -30 % Gain on sale of equipment (8,475,468 ) (4,510,043 ) (3,965,425 ) 88 % Development 11,746,725 28,134,883 (16,388,158 ) -58 % Total operating expenses 28,166,408 58,961,590 (30,795,182 ) -52 % Net loss from operations (11,422,333 ) (19,487,321 ) 8,064,988 -41 % Other income (expense) Other income and (expense) 423,281 317,045 106,236 34 % Unrealized gain on short-term investments 499,639 - 499,639 100 % Gain on cancelation of debt - 3,119,775 (3,119,775 ) -100 % Gain on sales of patents - 16,000,000 (16,000,000 ) -100 % Interest income 381,324 30,982 350,342 1131 % Interest expense (1,336,997 ) (1,426,153 ) 89,156 -6 % Total other (expenses) income (32,753 ) 18,041,649 (18,074,402 ) -100 % Net loss $ (11,455,086 ) $ (1,445,672 ) $ (9,755,650 ) 675 % Net loss per share - basic $ (0.15 ) $ (0.02 ) Weighted average shares outstanding - basic 75,422,390 66,777,620 29 Table of Contents Revenues.
Removed
To meet specific demand and customer requests, Perry County and Carnegie 1 were re-opened. These two mines were re-opened before others because they offered the desired quality of our customers while focusing on the steel and specialty markets.
Added
Revenues for the year ended December 31, 2023 were $16,744,075 and 2022 were $39,474,269, respectively. The primary drivers for revenue decline were slowing down of global infrastructure markets, international import bans and overall softening in customer pricing. In response to slower demand and customer requests, Perry County was idled.
Removed
Year ended 2021 For the year ended 2021, tons sold to steel making end users amounted to 7,889.63 with a realized sales price of $138.00. Steelmaking coal was contributed by McCoy Elkhorn’s Carnegie 1 mine for the year ended 2021.
Added
Contribution of revenues: All our sales are located in the United States with our operations located in the Central Appalachian basin of eastern Kentucky and West Virgina.
Removed
Total Operating Expenses for the year ended December 31, 2022 were $63,471,633 and 2021 were $36,088,714, respectively. The primary driver for the increase in operating expenses was restarting production in the mines due to an increase of demand since Covid-19. Trends which led to higher expenses are inflation in labor and consumable goods.
Added
Our coal sales are categorized as metallurgical coal (“Met”) used for steel making, pulverized coal injections (“PCI”) used in the steel making process and high-BTU, low sulfur, low moisture bituminous coal (“High BTU”) used for a variety of uses within several industries, including industrial customers and specialty products.
Removed
Financial Condition. Total Assets as of December 31, 2022 amounted to $55,916,349 and 2021 amounted to $42,872,702, respectively. The primary driver for the higher asset balance was an increase in cash from debt and equity. Total Liabilities as of December 31, 2022 amounted to $55,631,653 and 2021 amounted to $45,218,110, respectively.
Added
Disaggregated information about our revenue is presented below: For the year Ended December 31, 2023 2022 $ Change % Change MET $ 16,120,841 $ 35,584,635 $ 19,463,794 (54.7 )% PCI - 3,402,048 3,402,048 (100 )% High BTU - 117,312 (117,312 ) (100 )% $ 16,120,841 $ 39,103,995 $ 19,983,154 (51.1 )% Year ended 2023 For the year ended 2023, tons sold to steel making end users amounted to 67,372.57 with a realized sales price of $180.32.
Removed
During 2022 and 2021, the worldwide COVID-19 outbreak has resulted in muted demand for infrastructure and steel products and their necessary inputs including Metallurgical coal. These recent developments are expected to result in lower sales and gross margins.
Added
The decrease in accretion expense in the year ended December 31, 2023 is driven primarily by the reduced liability balance due to no changes in the previous estimates. Depreciation. The decrease in depreciation expense in the year ended December 31, 2023 is primarily due to the Company’s significant disposal of fixed assets in 2022.
Removed
Because of the adverse market conditions caused by the global pandemic the Company’s operations were idled in January 2020 and resumed during December 2020. Capital Resources. We had no material commitments for capital expenditures as of December 31, 2022.
Added
The Company has acquired the majority of new fixed assets under financing leases. General and administrative. The increase in general and administrative expense in the year ended December 31, 2023 is primarily due to higher compensation cost, higher stock compensation recognized during the year and increase in travel and health benefits. Production taxes and royalties.
Added
This re-working included one-time development costs for expanding and increasing efficient capacity at the operating locations was primarily recognized in the prior period and is the reason for the significant decrease in December 31, 2023. The Company expects to continue to improve mining performance and offset inflationary pressures through efficiency gains. Other income (expenses).
Added
The decrease in other income (expenses) is primarily due to the sale of patents that occurred totaling $16,000,000, the forgiveness of the PPP loan of $1,521,304 and the cancellation of notes payable by issuing common stock in lieu of payment to reduce our debt balance in prior year. Liquidity and Capital Resources.
Added
Our primary sources of liquidity are derived from existing unrestricted cash balances, proceeds from future coal sales, and certain financing arrangements. Our primary capital resource requirements stem from the cost of coal sales and processing, general and administrative, capital expenditures, debt service obligations, reclamation obligations, and collateral requirements.
Added
As of December 31, 2023, the company has a cash balance of $7,034,370 and working capital of $16,814,931.
Added
For the year ending December 31, 2023, the Company sustained a net loss of $11,455,086. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern for the next twelve months from the date these financial statements were issued.
Added
These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that may be necessary should the Company be unable to continue as a going concern.
Added
The Company’s continuation as a going concern is contingent upon its ability to obtain additional financing and to generate revenue and cash flow to meet its obligations on a timely basis. The Company will continue to seek to raise additional funding through debt or equity financing during the next twelve months from the date of issuance of these financial statements.
Added
Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern. There is no guarantee the Company will be successful in achieving these objectives.
Added
Years Ended December 31, 2023 2022 Consolidated statement of cash flow data: Cash (used for) provided by operating activities $ (14,515,241 ) $ 2,549,189 Cash provided by (used for) investing activities (28,833,246 ) (1,125,759 ) Cash provided by (used for) financing activities 37,387,162 (1,015,848 ) Net change in cash and restricted cash $ (5,961,325 ) $ (12,995,695 ) Cash used for operating activities during 2023 was $14,515,241 compared to cash provided by $2,549,189 in 2022.
Added
The change was primarily due to a net loss of $11,455,086, offset by amortization of mining rights of $1,240,914, accretion expense of $993,165, amortization of right-of-use asset of $626,253, option expense of $1,506,292, unrealized gain on short-term investments of $499,639, gain on sale of equipment of $8,475,468 and a change in working capital of $1,284,489.
Added
Cash used by investing activities during 2023 was $28,833,246 compared to $1,125,759 in 2022. The change was primarily due to an increase in the net purchase of short-term investments of $29,797,565 in 2023 compared to $0 in 2022.
Added
Cash provided by financing activities during 2023 was $37,387,162 compared to cash used by financing activities in 2022 of $1,015,848 for the prior year. The change was due to $1,112,850 repayments on long term debt, $5,599,988 repayments of finance lease liabilities, and $44,100,000 proceeds from tax exempt bonds. Capital Resources.

Other AREC 10-K year-over-year comparisons