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What changed in American Resources Corp's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of American Resources Corp's 2023 and 2024 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 2024 report.

+116 added−158 removedSource: 10-K (2025-05-19) vs 10-K (2024-04-15)

Top changes in American Resources Corp's 2024 10-K

116 paragraphs added · 158 removed · 83 edited across 4 sections

Item 1. Business

Business — how the company describes what it does

63 edited+11 added−47 removed171 unchanged
Biggest changeThe coal is stockpiled on-site and trucked approximately 7 miles to McCoy Elkhorn’s preparation facilities. The Carnegie 1 Mine is currently a “company run” mine, whereby the Company manages the workforce at the mine and pays all expenses of the mine. The Carnegie 1. Mine has the estimated capacity to produce up to approximately 10,000 tons per month of coal.
Biggest changeWhen operating, coal is mined via room-and-pillar mining methods utilizing a continuous miner with the estimated capacity to produce up to approximately 10,000 tons per month of coal. The coal is stockpiled on-site and trucked approximately 7 miles to McCoy Elkhorn’s preparation facilities.
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. 9 Table of Contents Below is a map showing the material properties at Deane Mining: Wyoming County Coal LLC General: Located within Wyoming County, West Virginia, Wyoming County Coal is comprised of two idled underground mining permits and the three permits associated with the idled Pioneer Preparation Plant, the Hatcher rail loadout, and Simmons Fork Refuse Impoundment.
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. 9 Table of Contents Below is a map showing the material properties at Deane Mining: Wyoming County Coal LLC General: Located within Wyoming County, West Virginia, Wyoming County Coal (WCC) is comprised of two idled underground mining permits and the three permits associated with the idled Pioneer Preparation Plant, the Hatcher rail loadout, and Simmons Fork Refuse Impoundment.
Below is a map showing the location of the idled Pioneer Prep Plant, Hatcher rail Loadout, and Simmons Fork Refuse Impoundment at Wyoming County Coal: 11 Table of Contents Perry County Resources LLC General: Located primarily within Perry County, Kentucky, Perry County Resources LLC is comprised of one active underground mine (the E4-2 mine) and one active coal processing facility called the Davidson Branch Preparation Plant, along with two additional idled underground mining permits.
Below is a map showing the location of the idled Pioneer Prep Plant, Hatcher rail Loadout, and Simmons Fork Refuse Impoundment at Wyoming County Coal: 11 Table of Contents Perry County Resources LLC General: Located primarily within Perry County, Kentucky, Perry County Resources LLC is comprised of one idled underground mine (the E4-2 mine) and one idled coal processing facility called the Davidson Branch Preparation Plant, along with two additional idled underground mining permits.
Below is a map showing the material properties at McCoy Elkhorn: 6 Table of Contents Knott County Coal LLC General: Located primarily within Knott County, Kentucky (but with additional idled permits in Leslie County, Perry County, and Breathitt County, Kentucky), Knott County Coal is comprised of one active mine (the Wayland Surface Mine) and 22 idled mining permits (or permits in reclamation), including the permits associated with the idled Supreme Energy Preparation Plant.
Below is a map showing the material properties at McCoy Elkhorn: 6 Table of Contents Knott County Coal LLC General: Located primarily within Knott County, Kentucky (but with additional idled permits in Leslie County, Perry County, and Breathitt County, Kentucky), Knott County Coal is comprised of one idled mine (the Wayland Surface Mine) and 22 idled mining permits (or permits in reclamation), including the permits associated with the idled Supreme Energy Preparation Plant.
(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.
American Infrastructure Corporation 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.
Collectively, these initiatives could result in higher electric costs to our customers or lower the demand for coal used in electric generation, which could in turn adversely impact our business. At present, we are principally focused on metallurgical coal production, which is not used in connection with the production of power generation.
Collectively, these initiatives could result in higher electric costs to our customers or lower the demand for coal used in electric generation, which could in turn adversely impact our business. At present, we are principally focused on metallurgical coal property development, which is not used in connection with the production of power generation.
For the idled coal mining operations, McCoy Elkhorn will determine which coal mines to bring back into production, if any, as the coal market changes, and there are currently no other idled mines within McCoy Elkhorn that are slated to go into production in the foreseeable future.
For these other idle coal mining operations, McCoy Elkhorn will determine which coal mines to bring back into production, if any, as the coal market changes, and there are currently no other idled mines within McCoy Elkhorn that are slated to go into production in the foreseeable future.
The Mill Creek Preparation Plant is owned by Deane Mining, subject to certain restrictions present in the agreement between Deane Mining and the surface land owner, Land Resources & Royalties LLC. We are currently utilizing less than 10% of the available processing capacity of the Mill Creek Preparation Plant.
The Mill Creek Preparation Plant is owned by Deane Mining, subject to certain restrictions present in the agreement between Deane Mining and the surface landowner, Land Resources & Royalties LLC. We are currently utilizing less than 10% of the available processing capacity of the Mill Creek Preparation Plant.
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.
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 2024 $ 310.00 2024 $ 75.25 4 Table of Contents McCoy Elkhorn Coal LLC General: Located primarily within Pike County, Kentucky, McCoy Elkhorn is currently comprised of three mines in “idle” status (Mine #15 and the Carnegie 1 and Carnegie 2 Mines), two coal preparation facilities (Bevins #1 and Bevins #2), and other mines and permits in various stages of development or reclamation.
Potential customers of Wyoming County Coal would include steel mills in the United States or international marketplace although no definitive sales have been identified yet. 10 Table of Contents Processing & Transportation: The idled Pioneer Preparation Plant is a 350 ton-per-hour coal preparation facility located near Oceana, West Virginia.
Potential customers of WCC would include steel mills in the United States or international marketplace although no definitive sales have been identified yet. 10 Table of Contents Processing & Transportation: The idled Pioneer Preparation Plant is a 350 ton-per-hour coal preparation facility located near Oceana, West Virginia.
Changes and proposed changes in state and federally recommended water quality standards may result in the issuance or modification of permits with new or more stringent effluent limits or terms and conditions. For instance, waters.
Changes and proposed changes in state and federally recommended water quality standards may result in the issuance or modification of permits with new or more stringent effluent limits or terms and conditions.
Approximate coal deposits owned by ERC is 4,383,298 tons and leased by ERC totals 0 tons. All of the deposits are in reclamation. Mines: The Gold Star Mine is an underground mine in the Indiana IV (aka the Survant) coal seam located near the town of Jasonville, Indiana.
Approximate coal deposits owned and leased are 0 tons and 4,383,298 tons, respectively. All of the deposits are in reclamation. Mines: The Gold Star Mine is an underground mine in the Indiana IV (aka the Survant) coal seam located near the town of Jasonville, Indiana.
Approximate coal deposits owned by Perry County is 0 tons and leased by Perry County totals 58,108,612 tons. The current leases contain minimum annual payments of $12,000 and production royalty payments ranging from 6% to 7% of gross sales price. Mines: Within the Perry County subsidiary, E4-2 mine is deemed material under Items 1304 of Regulation S-K.
Approximate coal deposits owned and leased are 0 tons and 58,100,000 tons. The current leases contain minimum annual payments of $12,000 and production royalty payments ranging from 6% to 7% of gross sales price. Mines: Within the Perry County subsidiary, E4-2 mine is deemed material under Items 1304 of Regulation S-K.
The Hatcher rail loadout associated with the Pioneer Preparation Plant is a rail loadout serviced by Norfolk Southern Corporation. The refuse from the preparation facility is trucked to the Simmons Fork Refuse Impoundment, which is approximately 1.0 mile from the Pioneer Preparation facility.
The Hatcher rail loadout associated with the Pioneer Preparation Plant is a rail loadout serviced by Norfolk Southern Corporation. When operating, the refuse from the preparation facility will be trucked to the Simmons Fork Refuse Impoundment, which is approximately 1.0 mile from the Pioneer Preparation facility.
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.
Access Energy has the estimated capacity to produce up to approximately 20,000 tons per month of coal. In 2024, Access Energy produced approximately 0 tons. In 2024, Access Energy produced approximately 0 tons.
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 2024, American Rare Earth LLC changed its name to ReElement Technologies LLC (ReElement). During 2024, ReElement filed and changed from a limited liability company to a corporation.
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.
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. During the year ended December 31, 2024, there was no meaningful sales from coal production.
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.
Efforts to diversify revenue streams have led to the establishment of additional subsidiaries; Electrified Materials Corporation (EMC) 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.
The Wayland Surface Mine is mined via area mining through the reprocessing of previously processed coal, and the coal is trucked approximately 22 miles to the Mill Creek Preparation Plant at Deane Mining, where it is processed and sold.
When operating, coal is mined via area mining through the reprocessing of previously processed coal, and the coal is trucked approximately 22 miles to the Mill Creek Preparation Plant at Deane Mining, where it is processed and sold.
Permits: Wyoming County Coal holds two coal mining permits that are in the initial planning phase and three permits associated with the idled Pioneer Preparation Plant, the Hatcher rail loadout, and Simmons Fork Refuse Impoundment.
Permits: Wyoming County Coal holds two coal mining permits that are in the development phase including faceup and infrastructure work and three permits associated with the idled Pioneer Preparation Plant, the Hatcher rail loadout, and Simmons Fork Refuse Impoundment.
In some instances, the Company has leases with Land Resources & Royalties LLC (LRR), a professional leasing firm that is an entity wholly owned by Wabash Enterprises, an entity owned by members of the Company’s management.
The Leases are with a variety of Lessors, from individuals to professional land management firms such as the Roadrunner Land Company. In some instances, the Company has leases with Land Resources & Royalties LLC (LRR), a professional leasing firm that is an entity wholly owned by Wabash Enterprises, an entity owned by members of the Company’s management.
The Company is headquartered in Fishers, Indiana with four members of the Company’s executive team based at this location.
The Company currently has approximately 23 direct employees. The Company is headquartered in Fishers, Indiana with four members of the Company’s executive team based at this location.
Since mid-2019, we have not mined or sold coal which is sold into the thermal coal markets. All production and future investment will be for the mining of metallurgical coal. The following table is presented for historical purposes.
Since mid-2019, we have not mined or sold coal which is sold into the thermal coal markets. Due to adverse market conditions all mining operations are currently idled. Should mining operations commence, all production and future investment will be for the mining of metallurgical coal. The following table is presented for historical purposes.
The Bevins #1 facility has a fine coal circuit and a stoker circuit that allows for enhance coal recovery and various coal sizing options depending on the needs of the customer.
Bevins #1 has raw coal stockpile storage of approximately 25,000 tons and clean coal stockpile storage of 100,000 tons of coal. The Bevins #1 facility has a fine coal circuit and a stoker circuit that allows for enhance coal recovery and various coal sizing options depending on the needs of the customer.
The Bates Branch rail loadout associated with the Supreme Energy Preparation Plant is a batch-weigh rail loadout with 220 rail car storage capacity and serviced by CSX Transportation in their Big Sandy rate district. The coarse refuse is trucked to the Kings Branch impoundment, which is approximately one mile from the Supreme Energy facility.
The Bates Branch rail loadout associated with the Supreme Energy Preparation Plant is a batch-weigh rail loadout with 220 rail car storage capacity and serviced by CSX Transportation in their Big Sandy rate district.
The E4-2 mine is mined via room-and-pillar mining methods using both continuous miners and continuous haulage systems, and the coal is belted directly from the mine to the raw coal stockpile at the Davidson Branch Preparation Plant less than a mile away.
When operating, coal is mined via room-and-pillar mining methods using both continuous miners and continuous haulage systems, and the coal is belted directly from the mine to the raw coal stockpile at the Davidson Branch Preparation Plant less than a mile away. The E4-2 mine has the estimated capacity to produce up to approximately 80,000 tons per month of coal.
Currently idled, the Gold Star Mine has been mined in the past via room-and-pillar mining methods using continuous miners, and the coal is belted directly from the mine to the raw coal stockpile at the preparation plant less than a mile away.
Currently idled, the Gold Star Mine has been mined in the past via room-and-pillar mining methods using continuous miners, and the coal is belted directly from the mine to the raw coal stockpile at the preparation plant less than a mile away. 13 Table of Contents Processing and Transportation: The idled preparation plant is a 165 ton-per-hour coal preparation facility located near the underground mine portal.
Coal mined from the lease requires a payment of greater of $1.75 per ton or 6% of gross sales price. The Carnegie 2 Mine is an underground mine in the Alma and Upper Alma coal seams and located near Kimper, Kentucky.
The mineral mined is leased from a 3 rd party professional mineral company with lease payments based on the greater of $1.75 per ton or 6% of gross sales price. Carnegie 2 is also an underground mine in the Alma and Upper Alma coal seams and located near Kimper, Kentucky.
Monetary sanctions and, in certain circumstances, even criminal sanctions may be imposed for failure to comply with these laws. Applications for permits and permit renewals at our mining operations are also subject to public comment and potential legal challenges from third parties seeking to prevent a permit from being issued, or to overturn the applicable agency’s grant of the permit.
Applications for permits and permit renewals at our mining operations are also subject to public comment and potential legal challenges from third parties seeking to prevent a permit from being issued, or to overturn the applicable agency’s grant of the permit.
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.
In 2023, the Carnegie 2 Mine produced approximately 13,000 tons and sold at an average of $237 per ton.
The idled mining permits are either in various stages of planning, idle status or reclamation. The idled mines at Knott County Coal are primarily underground mines that utilize room-and-pillar mining.
The idled mining permits are either in various stages of planning, idle status or reclamation. The idled mines at are primarily underground mines that utilize room-and-pillar mining. Approximate coal deposits owned and leased are 0 tons and 3,207,000 tons, 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.
As of December 31, 2024, and 2023, we had outstanding surety bonds at all of our mining operations totaling approximately $27.831 million and $29.692 million, respectively.
The E4-2 mine has the estimated capacity to produce up to approximately 80,000 tons per month of coal. The mineral available through the E4-2 mine is partially owned by the Company and partially leased from various mineral holders. The lease terms are the greater of $1.50 per ton or 6% of gross sales price.
The mineral available is partially owned by the Company and partially leased from various mineral holders. The lease terms are the greater of $1.50 per ton or 6% of gross sales price. In 2022, the E4-2 mine produced approximately 106,000 tons and sold the coal at an average price of $153 per ton.
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 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. With mining operations currently idle, the preparation plan is not currently operating.
We are required to prepare and present to federal, state, and local authorities data detailing the effect or impact that any proposed exploration project for production of coal may have upon the environment, the public and our employees. The permitting rules, and the interpretations of these rules, are complex, change frequently, and may be subject to discretionary interpretations by regulators.
Mining Permits and Approvals Numerous governmental permits and approvals are required for mining operations. We are required to prepare and present to federal, state, and local authorities data detailing the effect or impact that any proposed exploration project for production of coal may have upon the environment, the public and our employees.
Both Bevins #1 and Bevins #2 are facilities owned by McCoy Elkhorn, subject to certain restrictions present in the agreement between McCoy Elkhorn and the surface land owner. Both Bevins #1 and Bevins #2, as well as the rail loadout, are operational and any work required on any of the plants or loadouts would be routine maintenance.
Both Bevins #1 and Bevins #2 are facilities owned by McCoy Elkhorn, subject to certain restrictions present in the agreement between McCoy Elkhorn and the surface land owner. Although currently idle, Bevins #1 and Bevins #2, as well as the rail loadout no work is required beyond routine maintenance to recommence operations.
The spur has storage for 110 rail cars and is serviced by CSX Transportation and is located on CSX’s Big Sandy, Coal Run Subdivision. Both Bevins #1 and Bevins #2 have coarse refuse and slurry impoundments called Big Groundhog and Lick Branch.
Both Bevins #1 and Bevins #2 have a batch-weight loadout and rail spur for loading coal into trains for rail shipments. The spur has storage for 110 rail cars and is serviced by CSX Transportation and is located on CSX’s Big Sandy, Coal Run Subdivision.
The mineral available through Mine #15 is leased from various 3 rd party mineral holders. Coal mined from the lease requires a payment of greater of $2.50 per ton or 5% of gross sales price. The Carnegie 1 Mine is an underground mine in the Alma and Upper Alma coal seams and located near Kimper, Kentucky.
Coal mined from the lease requires a payment of greater of $2.50 per ton or 5% of gross sales price. Within the McCoy Elkhorn subsidiary, Carnegie 1 is deemed material under Items 1304 of Regulation S-K. The Carnegie 1 is an underground mine in the Alma and Upper Alma coal seams and located near Kimper, Kentucky.
The allocated cost of for the property at Knott County Coal paid by the Company is $286,046. Additional Permits: In addition to the above mines, Knott County Coal holds 20 additional coal mining permits that are in development, idled or in various stages of reclamation.
The purchase price allocated of the Knott County Coal property was approximately $286,000. Additional Permits: In addition to the above mines, Knott County Coal holds 20 additional coal mining permits, idled or in various stages of 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 and development with no mines currently in production.
The two idled mining permits are undisturbed underground mines that are anticipated to utilize room-and-pillar mining. Approximate coal deposits owned and leased are 5,668,00 tons and 0 tons, respectively. Mines: The mining permits held by WCC are in various stages of planning and development with no mines currently in production.
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.
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 has been ongoing through 2024. The Company is facilitating the full reclamation and remediation of the former mine site.
Mines: The Wayland Surface Mine is a surface waste-rock reprocessing mine in a variety of coal seams (primarily the Upper Elkhorn 1 coal seam) located near Wayland, Kentucky.
The current leases contain production royalty payments based on the greater of $1.50 per clean ton or 6% of gross sales price. Mines: The Wayland Surface Mine is a surface waste-rock reprocessing mine in a variety of coal seams (primarily the Upper Elkhorn 1 coal seam) located near Wayland, Kentucky.
The allocated cost for the property at Wyoming County Coal will pay by the Company is $22,326,101 of which $22,091,688 has been paid using shares of the Company’s Class A Common stock. The remaining portion was satisfied in the form of a convertible note which was converted to company common stock in December 2020.
The purchase price allocated to the Wyoming County Coal property was approximately $22,300,000 of which approximately $22,100,000 was settled with shares of the Company’s Class A Common stock. The remaining portion was satisfied in the form of a convertible note which was converted to Company common stock in December 2020.
The slurry from coal processing is piped from the Supreme Energy facility to the Kings Branch impoundment. The Supreme Energy Preparation Plant is owned by Knott County Coal, subject to certain restrictions present in the agreement between Knott County Coal and the surface land owner, Land Resources & Royalties LLC.
The Supreme Energy Preparation Plant is owned by Knott County Coal, subject to certain restrictions present in the agreement between Knott County Coal and the surface landowner, Land Resources & Royalties LLC. During 2024 components of the Supreme Energy Preparation Plant have been transferred as part of the WCC development.
The requirements imposed by these permits and associated regulations can be costly and time-consuming and may delay commencement or continuation of exploration, production or expansion at our operations. The governing laws, rules, and regulations authorize substantial fines and penalties, including revocation or suspension of mining permits under some circumstances.
The permitting rules, and the interpretations of these rules, are complex, change frequently, and may be subject to discretionary interpretations by regulators. The requirements imposed by these permits and associated regulations can be costly and time-consuming and may delay commencement or continuation of exploration, production or expansion at our operations.
Since acquisition, the primary work completed at the Wayland Surface Mine has been removing overburden to access the coal. The Wayland Surface Mine has the estimated capacity to produce up to approximately 15,000 tons per month of coal and started production in mid-2018 with nominal coal extracted and sold as thermal coal.
The mine has an estimated capacity to produce up to approximately 15,000 tons per month of coal and started production in mid-2018 with nominal coal extracted and sold as thermal coal. Since 2022, mining operations have been idle due to the company's focus on the metallurgical and industrial markets and adverse market conditions.
McCoy Elkhorn sells its coal to a variety of customers, both domestically and internationally, primarily to the steel making industry as a high-vol “B” coal or blended coal.
The address for the Bevins #1 and #2 preparation facilities is 2069 Highway 194 E Meta, KY 41501. When operating, McCoy Elkhorn has historically sold its coal to a variety of customers, both domestically and internationally, primarily to the steel making industry as a high-vol “B” coal or blended coal.
The Company’s operating subsidiaries, collectively, are parties to approximately 200 various Leases and other agreements required for the Company’s coal mining and processing operations. The Leases are with a variety of Lessors, from individuals to professional land management firms such as the Roadrunner Land Company.
With the exception of Wyoming County Coal, all of the mineral and surface related to the Company’s coal mining operations are leased from various mineral and surface owners (the “Leases”). The Company’s operating subsidiaries, collectively, are parties to approximately 200 various Leases and other agreements required for the Company’s coal mining and processing operations.
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.
The Company may, at times, purchase coal from other regional producers to sell on its contracts. Coal sales at the Company are primarily outsource to third party intermediaries who act on the Company’s behalf to source potential coal sales and contracts.
As a supplier of the raw materials into the steel and industrial industries, our customers are sensitive to global fluctuations in steel demand. 14 Table of Contents Competition The coal industry is intensely competitive. The most important factors on which the Company competes are coal quality, delivered costs to the customer and reliability of supply.
Due to the Covid-19 global pandemic, traditional sales channels have been disrupted. As a supplier of the raw materials into the steel and industrial industries, our customers are sensitive to global fluctuations in steel demand. Demand remains constrained due to adverse market conditions amid global trade uncertainty. 14 Table of Contents Competition The coal industry is intensely competitive.
The preparation plant has a coarse refuse and slurry impoundment. The allocated cost of for the property at Gold Star paid by the Company is $-. Permits: ERC holds one permit that covers the Gold Star Mine, processing plant, rail loadout, and related infrastructure which are in reclamation status.
Permits: ERC holds one permit that covers the Gold Star Mine, processing plant, rail loadout, and related infrastructure which are in reclamation status. Mineral and Surface Leases Coal mining and processing involves the extraction of coal (mineral) and the use of surface property incidental to such extraction and processing.
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.
In connection with the Industrial Development Bond financing, the Company is in the process of upgrading and redeveloping the preparation facility to a modern 350 ton per hour preparation facility and upgrading the rail load out facility to a modern batch weight load out system. The Company acquired the Pioneer Preparation Plant as an idled facility.
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.
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. 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.
We also compete in international markets directly with domestic companies and with companies that produce coal from one or more foreign countries, such as China, Australia, Colombia, Indonesia and South Africa. Legal Proceedings From time to time, we are subject to ordinary routine litigation incidental to our normal business operations. Please see financial statement Note 9 for detail on cases.
Legal Proceedings From time to time, we are subject to ordinary routine litigation incidental to our normal business operations. Please see financial statement Note 11 for detail on cases.
In 2021, mine development began and operations at the Carnegie 2 Mine started in August 2022 and is currently being mined via room-and-pillar mining methods utilizing a continuous miner. The coal is stockpiled on-site and trucked approximately 7 miles to McCoy Elkhorn’s preparation facilities.
When operating, coal is mined via room-and-pillar mining methods utilizing a continuous miner with the estimated capacity to produce up to approximately 10,000 tons per month of coal. The coal is stockpiled on-site and trucked approximately 7 miles to McCoy Elkhorn’s preparation facilities. In 2023, Carnegie 1 produced approximately 67,000 tons and sold at an average of $180 per ton.
The allocated cost of for this property at McCoy Elkhorn Coal paid by the company is $95,210. Due to additional coal processing storage capacity at Bevins #1 and Bevins #2 Preparation Plants, McCoy Elkhorn processes, stores, and loads coal for other regional coal producers for an agreed-to fee.
The 2017 purchase price allocated to the McCoy Elkhorn properties was approximately $95,000. Due to the processing storage capacity at Bevins #1 and Bevins #2 Preparation Plants, McCoy Elkhorn has the capacity to process, store, and load coal for other regional coal producers for agreed to fees.
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.
The preparation plant utilizes a belt press technology which eliminates the need for pumping slurry into a slurry pond for storage within an impoundment. In June 2023, WCC closed on an Industrial Development Bond in the amount of $45,000,000 for the purpose of financing the development of the permits and infrastructure.
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.
Each of these laws can impact permitting or planned operations and can result in additional costs or operational delays. Employees ARC and its operating subsidiaries, employ a combination of company employees and contract labor. 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 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.
Additional Permits: In addition to the above mine, preparation facility, and related permits, Perry County Resources had four additional coal mining permits that are idled or in development stage. 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.
Our principal domestic competitors will include Corsa Coal Corporation, Ramaco Resources, Blackhawk Mining, Coronado Coal, Arch Resources, Contura Energy, and Warrior Met Coal. Many of these coal producers may have greater financial resources and larger coal deposit bases than we do.
The most important factors on which the Company competes are coal quality, delivered costs to the customer and reliability of supply. Our principal domestic competitors will include Corsa Coal Corporation, Ramaco Resources, Blackhawk Mining, Coronado Coal, Arch Resources, Contura Energy, and Warrior Met Coal.
The Carnegie 2 mine commenced operations in August 2022. 5 Table of Contents Processing & Transportation: The Bevins #1 Preparation Plant is an 800 ton-per hour coal preparation facility located near Meta, Kentucky, across the road from Mine #15. Bevins #1 has raw coal stockpile storage of approximately 25,000 tons and clean coal stockpile storage of 100,000 tons of coal.
The mineral being mined is leased from a 3 rd party professional mineral company with lease payments based on the greater of $1.75 per ton or 6% of gross sales price. 5 Table of Contents Processing & Transportation: The Bevins #1 Preparation Plant is an 800 ton-per hour coal preparation facility located near Meta, Kentucky, across the road from Mine #15.
Mine #15 is an underground mine in the Millard (also known as Glamorgan) coal seam and located near Meta, Kentucky. Mine #15 is mined via room-and-pillar mining methods using continuous miners, and the coal is belted directly from the stockpile to McCoy Elkhorn’s coal preparation facility.
When operating, coal is mined via room-and-pillar mining methods using continuous miners and belted directly from the stockpile to McCoy Elkhorn’s coal preparation facility. Mine #15 has the estimated capacity to produce up to approximately 40,000 tons per month of coal. The mineral available is leased from various 3 rd party mineral holders.
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.
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. Met coal accounted for approximately 100% of our coal revenues in 2023. Two customers made up approximately 74% and 26% of our coal revenues for 2024.
Removed
The address for the Bevins #1 and #2 preparation facilities is 2069 Highway 194 E Meta, KY 41501. The address for Mine #15 is 2560 Highway194 E Meta, KY 41501. The address for Carnegie 1 is 209 Meathouse Fork Kimper, KY 41502.
Added
On December 27, 2024, American Carbon changed its name to American Infrastructure Corporation (American Infrastructure Corporation).
Removed
The coal controlled at McCoy Elkhorn (along with our other subsidiaries) has not been classified as either “proven” or “probable” as defined in the United States Securities and Exchange Commission Items 1300 through 1305 of Regulation S-K, and as a result, do not have any “proven” or “probable” reserves under such definition and are classified as an “Exploration Stage” pursuant to Items 1300 through 1305 of Regulation S-K.
Added
Due to adverse market conditions, Mine #15 was in idle status during 2023 and 2024 and the mining operations at Carnegie 1 and 2 were idled during 2023. Approximate coal deposits owned and leased as of December 31, 2024 are 0 tons and 11,108,724 tons, respectively.
Removed
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.
Added
Current leases contain minimum annual payments of $20,000 and production royalty payments based on gross sales price. Mines: Mine #15 is an underground mine in the Millard (also known as Glamorgan) coal seam and located near Meta, Kentucky.
Removed
Mine #15 is currently a “company run” mine, whereby the Company manages the workforce at the mine and pays all expenses of the mine. The coal from Mine #15 is stockpiled at the mine site and belted directly to the Company’s nearby coal preparation facilities. Production at Mine #15 re-commenced under Quest Energy’s ownership in September 2016.
Added
Both Bevins #1 and Bevins #2 have coarse refuse and slurry impoundments called Big Groundhog and Lick Branch.
Removed
Mine #15 has the estimated capacity to produce up to approximately 40,000 tons per month of coal.
Added
When operating, coarse refuse is trucked to the Kings Branch impoundment, which is approximately one mile from the Supreme Energy facility, and slurry is piped from the Supreme Energy facility to the Kings Branch impoundment.
Removed
The Company acquired Mine #15 as an idled mine, and since acquisition, the primary work completed at Mine #15 by the Company includes changing working sections within the underground mine, air ventilation enhancements primarily through brattice work and the use of overcasts and installing underground mining infrastructure as the mine advances due to coal extraction.
Added
As of December 31, 2024 and 2023, approximately $32,500,000 and $9,500,000 of the $36,500,000 initial project fund have been expended, respectively. Due to a delay in government approvals and the expansion of rare earth concentrations it is undeterminable as to when meaningful operations will commence and the additional capital expenditures required.
Removed
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.
Added
During the period of ownership by the Company, 100% of the coal sold was sold as industrial stoker and PCI. Since the end of 2022, the mine has been idle due to adverse market conditions. Processing and Transportation: The Davidson Branch Preparation Plant is a 1,300 ton-per-hour coal preparation facility located near Hazard, Kentucky.
Removed
In 2011, coal production from the Carnegie 1 Mine in the Alma coal seam commenced and then subsequently the mine was idled. Production at the Carnegie 1 Mine was reinitiated in early 2017 under Quest Energy’s ownership and is currently being mined via room-and-pillar mining methods utilizing a continuous miner.
Added
Both the Davidson Branch Preparation Plant and the rail loadout have been maintained should operations commence in a future period. The purchase price allocated to Perry County Resources property was approximately $1,551,000.
Removed
The Company acquired the Carnegie 1 Mine as an idled mine, and since acquisition, the primary work completed at the Carnegie 1 Mine by the Company includes mine rehabilitation work in preparation for production, changing working sections within the underground mine, air ventilation enhancements primarily through brattice work, and installing underground mining infrastructure as the mine advances due to coal extraction.

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Item 2. Properties

Properties — owned and leased real estate

3 edited+4 added−2 removed0 unchanged
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.
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 landowners. The following map shows the location of our mining properties:
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.
Item 2. Properties. ARC’s principal offices are located at 12115 Visionary Way, Fishers, Indiana 46038. We pay $8,954 per month in rent for the office space and the lease expires in June 2034. The rent is subject to escalation payments on an annual basis.
We also rent office space from an affiliated entity, LRR, at 11000 Highway 7 South, Kite, Kentucky 41828 and pay $1,702 per month rent and the rental lease expires January 1, 2030.
KCC, a subsidiary of AIC, rents office space from LRR at 11000 Highway 7 South, Kite, Kentucky 41828 with monthly rent of $1,702 and a lease expiration of December 31, 2029.
Removed
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.
Added
ReElement leases office space at 1716 E Pleasant Street, Noblesville, Indiana 46060 with a current monthly rent payment of $5,224. The lease agreement expires in November 2028 and is subject to escalation payments on an annual basis.
Removed
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.
Added
ReElement leases approximately 316,000 square feet of commercial space from LRR, a related party, for its processing facility at 3301 South Adams Street, Marion, Indiana. The current monthly rent payment is $115,773. The lease expires in May of 2063 and is subject to escalation payments on an annual basis.
Added
Electrified Materials Corporation leases office space at 1845 Highway 15 South, Hazard, Kentucky 41701 from LRR with a current monthly rent payment of $263. The lease agreement expires in December 2028. Electrified Materials Corporation leases outdoor storage space from LRR in Noblesville, Indiana at a monthly rent rate of $20,000. The lease expires in December 2028.
Added
Electrified Materials Corporation leases commercial production, office and outdoor storage space at 3 from LRR at 611 South Adams Street, Marion, Indiana at a current monthly rate of $20,559. The lease expires in December 2028 and is subject to escalating payments on an annual basis.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

10 edited+2 added−1 removed36 unchanged
Biggest changeHigh 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.
Biggest changeHigh Low Quarters ending in 2024 March 31 $ 1.78 $ 1.68 June 30 1.59 1.48 September 30 0.99 0.41 December 31 $ 1.34 $ 0.84 Quarters ending in 2023 March 31 $ 1.87 $ 1.19 June 30 2.16 1.05 September 30 2.12 1.20 December 31 $ 1.86 $ 1.21 (b) Holders As of December 31, 2024, the Company had 131 Class A Common Stock shareholders of record holding 78,017,047 shares of our Class A Common Stock issued and outstanding.
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.
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.
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, 2024 for our common stock. The following prices reflect inter-dealer prices without retail markup, markdown or commissions and may not reflect actual transactions.
CLASS 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.
CLASS A COMMON STOCK During the periods ending December 31, 2024 and December 31, 2023, 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. As of December 31, 2022, and 2021, 0 shares of Series B Preferred stock are outstanding, respectively.
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. As of December 31, 2024, and 2023, 0 shares of Series B Preferred stock are outstanding, respectively.
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.
This number includes one position at Cede & Co., which includes an unknown number of shareholders holding shares of 53,816,546 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.
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.
During 2023, the Company issued 49,020 shares of Class A Common Stock pursuant to consulting arrangements. During 2024, the Company re-purchased 86,410 shares of Class A Common Stock pursuant to stock re-purchase program. During 2024, the Company issued 902,419 shares of Class A Common Stock pursuant to warrant conversions.
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.
The blank check preferred stock shall be designed by the Board of Directors at the time of classification. OPTIONS AND WARRANTS During 2023, the Company issued 4,236,500 Employee Stock options under the current plan. The individual option awards vest over a period of 1 to 7 years. During 2023, the Company issued 330,000 warrants under the current plan.
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.
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 2023, the Company issued 9,420,230 shares of Class A Common Stock pursuant to debt 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. During 2022, the Company re-purchased 86,410 shares of Class A Common Stock pursuant to stock re-purchase program.
During 2024, the Company issued 595,790 shares of Class A Common Stock pursuant to debt conversions. During 2024, the Company issued 102,500 shares of Class A Common Stock pursuant to various consulting arrangements. During 2024, the Company issued 148,000 shares of Class A Common Stock pursuant to the exercise of stock options.
Removed
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.
Added
The individual warrants vest on the grant date. The warrants have an exercise price between $1.00 and $1.81 and have an expiration date between September 13, 2023 and July 27, 2028. During 2024, the Company issued 1,575,000 Employee Stock options under the current plan. The individual option awards vest over a period of 1 to 10 years.
Added
During 2024, the Company issued 100,000 warrants under the current plan. The individual warrants vest on the grant date. The warrant has an exercise price of $0.54 and an expiration date of August 29, 2031.

Item 7. Management's Discussion & Analysis

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

7 edited+16 added−25 removed12 unchanged
Biggest changeOur 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.
Biggest changeLiquidity and Capital Resources. Our primary sources of liquidity are derived from existing unrestricted cash, reimbursements from bond funds and other debt and capital proceeds.
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.
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, 2024 compared to Year Ended December 31, 2023.
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.
We had no material commitments for capital expenditures as of December 31, 2024. Off-Balance Sheet Arrangements As of December 31, 2024, 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.
The management’s discussion, analysis of financial condition, and results of operations should be read in conjunction with our financial statements and notes thereto contained elsewhere in this annual report. Overview. Our primary source of revenue is the sale of metallurgical coal and coal used in pulverized coal injection (PCI).
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The management’s discussion, analysis of financial condition, and results of operations should be read in conjunction with our financial statements and notes thereto contained elsewhere in this annual report. Overview.
Both metallurgical and PCI coal is an essential building block in the steel manufacturing process. The overall outlook of the metallurgical coal business is dependent on a variety of factors such as pricing, regulatory uncertainties and global economic conditions.
Our primary source of revenue through 2024 has been the sale of metallurgical coal and coal used in pulverized coal injection (PCI). Both metallurgical and PCI coal are essential building blocks in the steel manufacturing process. The overall outlook of the metallurgical coal business is dependent on a variety of factors such as pricing, regulatory uncertainties and global economic conditions.
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.
Our coal production businesses are located in the United States with our operations located in the Central Appalachian basin of eastern Kentucky and West Virgina. Our coal sales for 2024 and 2023 were all classified as metallurgical coal (“Met”) used for steel making.
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.
Cash provided by investing activities during 2024 was $55,976 compared to cash used in investing activities of $1,127,427 in 2023. The change was primarily due to purchases of property and equipment, net of capitalized interest income and (expense) of $1,059,062 offset proceeds from sales of equipment of $400,000 and proceeds from short-term investments of $715,038.
Removed
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The following Management’s Discussion and Analysis of Financial Condition and Results of Operations contain forward-looking statements that involve risks and uncertainties.
Added
For the Years Ended December 31, 2024 2023 Change Revenue Coal sales $ 15,002 $ 12,611,165 $ (12,596,163 ) Metal recovery and sales 108,535 66,552 41,983 Service fee revenue 99,960 - 99,960 Royalty income 159,737 556,682 (396,945 ) Total revenue 383,234 13,234,399 (12,851,165 ) Operating expenses (income) Coal production and holdings costs 2,526,975 8,987,598 (6,460,623 ) Accretion 991,520 1,015,563 (24,043 ) Depreciation 2,735,972 2,323,431 412,541 Amortization of mining rights 1,543,226 1,222,686 320,540 General and administrative 21,024,382 10,670,358 10,354,024 Professional fees 2,625,898 1,542,175 1,083,723 Litigation expense 240,658 11,067,926 (10,827,268 ) Production taxes and royalties 35,533 2,995,435 (2,959,902 ) Development 2,148,132 11,313,837 (9,165,705 ) Gain on sale of equipment (400,000 ) (1,529,408 ) 1,129,408 Total operating expenses 33,472,296 49,609,601 (16,137,305 ) Net loss from operations (33,089,062 ) (36,375,202 ) 3,286,140 Other income (expense) Earnings from equity method investees (409,268 ) (562,696 ) 153,428 Other income and (expense) 221,471 170,780 50,691 Interest income 1,101,578 30,229 1,071,349 Interest expense (8,021,459 ) (1,988,074 ) (6,033,385 ) Total other income (expenses), net (7,107,678 ) (2,349,761 ) (4,757,917 ) Net loss (40,196,740 ) (38,724,963 ) (1,471,777 ) Less: Non-controlling interest 87,814 197,555 (109,741 ) Net loss attributable to AREC shareholders $ (40,108,926 ) $ (38,527,408 ) $ (1,581,518 ) 29 Table of Contents The following table summarizes the changes in revenue generating operations: For the Years Ended December 31, 2024 2023 Change Revenue Coal sales $ 15,002 $ 12.611.165 (12,596,163 ) Metal recovery and sales 108,535 66,552 41,983 Service fee revenue 99,960 - 99,960 Royalty income 159,737 556,682 (396,945 ) Total revenue $ 383,234 $ 13,234,399 (12,851,165 ) Revenues Revenues for the 2024 and 2023 were $383,234 and $13,234,399, respectively.
Removed
Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under “Risk Factors” and elsewhere in this report .
Added
The primary drivers of the decrease were reductions in coal sales and royalty income. Declines were due to adverse market conditions and unfavorable pricing that led to our decision to suspend coal production activities beginning in 2023.
Removed
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.
Added
For the year ended 2024, the Company had de minimis tons of coal sold to steel making end users.
Removed
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.
Added
For the year ended 2023, tons sold to steel making end users amounted to 67,373 tons with a realized sales price of $180. 30 Table of Contents The following table summarizes the changes in operating expenses (income): For the Years Ended December 31, 2024 2023 Change Operating expenses (income) Coal production and holdings costs $ 2,526,975 $ 8,987,598 (6,460,623 ) Accretion 991,520 1,015,563 (24,043 ) Depreciation 2,735,972 2,323,431 412,541 Amortization of mining rights 1,543,226 1,222,686 320,540 General and administrative 21,024,382 10,670,358 10,354,024 Professional fees 2,625,898 1,542,175 1,083,723 Litigation expense 240,658 11,067,926 (10,827,268 ) Production taxes and royalties 35,533 2,995,435 (2,959,902 ) Development 2,148,132 11,313,837 (9,165,705 ) Gain on sale of equipment (400,000 ) (1,529,408 ) 1,129,408 Total operating expenses $ 33,472,296 $ 49,609,601 (16,137,305 ) Total operating expenses decreased in 2024 as compared to 2023.
Removed
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.
Added
This decrease was primarily attributable to decreases in coal production and holdings costs, litigation expense, production taxes and royalties and development. These decreases were partially offset by increases in depreciation, amortization of mining, general and administrative and professional.
Removed
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.
Added
General and administrative expenses primarily consist of contract labor, payroll, facility maintenance, stock-based compensation to employees and consultants, insurance and other routine operating costs. The decrease in our coal production and holding costs is aligned with the suspension of our coal production activities beginning in 2023.
Removed
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.
Added
The decrease in litigation expense is because in 2023, American Infrastructure recognized charges for certain litigation matters where the potential loss was assessed as probable in that year.
Removed
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.
Added
The increase in general and administrative expenses is primarily attributable to the shift in our business from coal production to other activities including the development of RLMT technology for refining rare earth and battery elements.
Removed
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.
Added
The following table summarizes the changes in other income (expense): For the Years Ended December 31, 2024 2023 Change Other income (expense) Earnings from equity method investees $ (409,268 ) $ (562,696 ) 153,428 Other income and (expense) 221,471 170,780 50,691 Interest income 1,101,578 30,229 1,071,349 Interest expense (8,021,459 ) (1,988,074 ) (6,033,385 ) Total other income (expenses), net $ (7,107,678 ) $ (2,349,761 ) (4,757,917 ) The increase in net other expense is primarily attributable to the net increase in interest expense driven by the WCC bonds being outstanding for the full twelve months of 2024 compared to approximately seven months in 2023 and the KCC bonds that were issued in March 2024.
Removed
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.
Added
With the suspension of our coal production activities beginning in 2023 and the development stage of our new ReElement and Electrified Materials businesses through 2024, our sources of revenue in 2024 were primarily limited to royalty income and coal processing fees.
Removed
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
We anticipate our ReElement and Electrified Materials new businesses to achieve increasing revenues in 2025; however, we will continue to require cash flows from financing activities to support operations and the continued development of our new business models. As of December 31, 2024, the company has a cash balance of $604,485 and a working deficit of $73,477,808.
Removed
The 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.
Added
We expect to fund our liquidity requirements over the next 12 months primarily with cash on hand and additional debt and equity financing transactions. If future cash flows are insufficient to meet our liquidity needs or capital requirements, we may be required to rationalize our expenditures or slow down efforts to further develop our new business models.
Removed
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
We do not have any credit lines currently available to fund our liquidity requirements.
Removed
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
Maintaining future liquidity is subject to significant uncertainties primarily related to the generation of revenues from our new business models at levels that surpass breakeven and the ability to obtain additional debt and equity financing. 31 Table of Contents Cash Flows Year Ended December 31, 2024 compared to Year Ended December 31, 2023 Years Ended December 31, 2024 2023 Consolidated statement of cash flow data: Cash used in operating activities $ (22,225,352 ) $ (20,100,929 ) Cash provided by (used in) investing activities 55,976 (1,350,249 ) Cash provided by financing activities 146,661,482 45,835,111 Net change in cash and restricted cash $ 124,492,106 $ 24,383,933 The $2,124,423 increase in cash used for operating activities was primarily due to a $1,471,777 increase in net loss and a $3,654,193 decrease in cash flow provided by changes in working capital offset by an increase of $3,001,547 in non-cash charges.
Removed
As of December 31, 2023, the company has a cash balance of $7,034,370 and working capital of $16,814,931.
Added
Cash provided by financing activities during 2024 was $146,661,482 compared to $45,612,289 in 2023.
Removed
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.
Added
The change was due to proceeds from tax exempt bonds, net of $149,719,203, proceeds from convertible promissory note of $1,624,860, proceeds from exercise of stock option of $156,900, proceeds from warrant conversions of $32,339, proceeds received from other financing obligations of $2,493,819 offset by repayments of other financing obligations of $7,365,639. Capital Resources.
Removed
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
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.
Removed
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.

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