American Resources Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>American Resources Corp. has filed its 2023 annual report (10-K) detailing its operations in coal mining and related activities.</b>

AI Summary

American Resources Corp (AREC) filed a Annual Report (10-K) with the SEC on April 15, 2024. American Resources Corp. filed its 2023 Form 10-K on April 15, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal office is located at 12115 Visionary Way, Suite 174, Fishers, IN 46038. American Resources Corp. was formerly known as NGFC Equities, Inc. and Natural Gas Fueling & Conversion Inc. The SIC code for the company is 1220 (Bituminous Coal & Lignite Mining).

Why It Matters

For investors and stakeholders tracking American Resources Corp, this filing contains several important signals. This 10-K filing provides a comprehensive overview of American Resources Corp.'s financial performance, operational activities, and strategic developments for the fiscal year 2023, crucial for investors to assess the company's current standing and future prospects. The document includes details on various corporate actions, such as subsequent events related to ReElement Technologies and share purchase agreements, offering insights into the company's growth strategies and potential M&A activities.

Risk Assessment

Risk Level: medium — American Resources Corp shows moderate risk based on this filing. The company operates in the coal mining industry, which faces significant regulatory, environmental, and market volatility, as indicated by its SIC code and the nature of its business.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand the company's performance and the inherent risks in the coal sector.

Key Numbers

• 20231231 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 20240415 — Filing Date (FILED AS OF DATE)
• 001-38816 — SEC File Number (SEC FILE NUMBER)
• 463914127 — IRS Number (IRS NUMBER)

Key Players & Entities

• American Resources Corp. (company) — FILER
• 0001590715 (company) — CENTRAL INDEX KEY
• 1220 (company) — STANDARD INDUSTRIAL CLASSIFICATION
• FL (company) — STATE OF INCORPORATION
• 12115 VISIONARY WAY, SUITE 174 (company) — BUSINESS ADDRESS STREET 1
• FISHERS (company) — BUSINESS ADDRESS CITY
• IN (company) — BUSINESS ADDRESS STATE
• 46038 (company) — BUSINESS ADDRESS ZIP

FAQ

Industry Context

American Resources Corp. operates within the Bituminous Coal & Lignite Mining industry (SIC 1220). This sector is subject to significant market fluctuations and regulatory oversight.

Regulatory Implications

The company operates under regulations pertaining to mining safety and environmental protection, as is standard for the coal industry in the United States.

What Investors Should Do

1. Review the full 10-K document for detailed financial statements and management discussion.
2. Analyze the risk factors section for potential challenges and uncertainties facing the company.
3. Investigate the subsequent events mentioned, such as those related to ReElement Technologies and share purchase agreements.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-04-15: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial 10-K filing for the period ending December 31, 2023, following previous filings.

Key Financial Figures

• $0.0001 — e on which registered Class A Common, $0.0001 Par Value AREC NASDAQ Capital Marke
• $20,000 — ases contain minimum annual payments of $20,000 and production royalty payments of 7% o
• $2.50 — lease requires a payment of greater of $2.50 per ton or 5% of gross sales price. Th
• $180.32 — 7,372.57 tons and sold at an average of $180.32 per ton. In 2022, the Carnegie 1 Mine p
• $166.09 — 9,911.58 tons and sold at an average of $166.09 per ton.. During 2023 and 2022 100% of
• $1.75 — lease requires a payment of greater of $1.75 per ton or 6% of gross sales price. Th
• $237.31 — 3,460.99 tons and sold at an average of $237.31 per ton. In 2022, the Carnegie 2 Mine p
• $233.11 — ly 6,200 tons and sold at an average of $233.11 per ton. During 2023 and 2022 100% of t
• $95,210 — Coy Elkhorn Coal paid by the company is $95,210. Due to additional coal processing sto
• $0 — ases contain minimum annual payments of $0 and production royalty payments of the
• $1.50 — uction royalty payments of the great of $1.50 per clean ton or 6% of gross sales pric
• $286,046 — nott County Coal paid by the Company is $286,046. Additional Permits: In addition to

Filing Documents

• arec_10k.htm (10-K) — 1476KB
• arec_ex311.htm (EX-31.1) — 11KB
• arec_ex312.htm (EX-31.2) — 13KB
• arec_ex321.htm (EX-32.1) — 6KB
• arec_ex322.htm (EX-32.2) — 5KB
• arec_ex951.htm (EX-95.1) — 120KB
• arec_10kimg12.jpg (GRAPHIC) — 37KB
• arec_10kimg9.jpg (GRAPHIC) — 72KB
• arec_10kimg8.jpg (GRAPHIC) — 81KB
• arec_10kimg7.jpg (GRAPHIC) — 69KB
• arec_10kimg11.jpg (GRAPHIC) — 78KB
• arec_10kimg10.jpg (GRAPHIC) — 38KB
• 0001477932-24-002122.txt (&nbsp;) — 8007KB
• arec-20231231.xsd (EX-101.SCH) — 72KB
• arec-20231231_lab.xml (EX-101.LAB) — 376KB
• arec-20231231_cal.xml (EX-101.CAL) — 55KB
• arec-20231231_pre.xml (EX-101.PRE) — 331KB
• arec-20231231_def.xml (EX-101.DEF) — 219KB
• arec_10k_htm.xml (XML) — 1103KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 23 Item 1B. Unresolved Staff Comments 24 Item 2.

Properties

Properties 24 Item 3.

Legal Proceedings

Legal Proceedings 24 Item 4. Mine Safety Disclosures 24 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 25 Item 6.

Selected Financial Data

Selected Financial Data 29 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 7A. Quantitative and Qualitative Disclosure About Market Risk 34 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 34 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 34 Item 9A.

Controls and Procedures

Controls and Procedures 34 Item 9B. Other Information 35 PART III Item 10. Directors, Executive Officers and Corporate Governance 36 Item 11.

Executive Compensation

Executive Compensation 42 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 45 Item 13. Certain Relationships and Related Transactions, and Director Independence 46 Item 14. Principal Accounting Fees and Services 47 PART IV Item 15. Exhibits, Financial Statement Schedules 49

Signatures

Signatures 51 2 Table of Contents Special Note Regarding Forward Looking Statements. This annual report on Form 10-K of American Resources Corporation for the year ended December 31, 2023 contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. To the extent that such statements are not recitations of historical fact, such statements constitute forward looking statements which, by definition involve risks and uncertainties. In particular, statements under the Sections; Description of Business, Management's Discussion and Analysis of Financial Condition and Results of Operations contain forward looking statements. Where in any forward-looking statements, the Company expresses an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement of expectation or belief will result or be achieved or accomplished. The following are factors that could cause actual results or events to differ materially from those anticipated and include but are not limited to: general economic, financial and business conditions; the price of metallurgical coal and or thermal coal changes in and compliance with governmental regulations; changes in tax laws; and the cost and effects of legal proceedings. You should not rely on forward looking statements in this annual report. This annual report contains forward looking statements that involve risks and uncertainties. We use words such as "anticipates," "believes," "plans," "expects," "future," "intends," and similar expressions to identify these forward-looking statements. Prospective investors should not place undue reliance on these forward-looking statements, which apply only as of the date of this

Business

Item 1. Business. Overview When we formed our company, our focus was to (i) construct and/or purchase and manage a chain of combined gasoline, diesel and natural gas (NG) fueling and service stations (initially, in the Miami, FL area); (ii) construct conversion factories to convert NG to liquefied natural gas (LNG) and compressed natural gas (CNG); and (iii) construct conversion factories to retrofit vehicles currently using gasoline or diesel fuel to also run on NG in the United States and also to build a convenience store to serve our customers in each of our locations. On January 5, 2017, American Resources Corporation (ARC) executed a Share Exchange Agreement between the Company and Quest Energy Inc. ("Quest Energy"), a private company incorporated in the State of Indiana on May 2015 with offices at 12115 Visionary Way, Fishers, IN 46038, and due to the fulfillment of various conditions precedent to closing of the transaction, the control of the Company was transferred to the Quest Energy shareholders on February 7, 2017. This transaction resulted in Quest Energy becoming a wholly-owned subsidiary of ARC. Through Quest Energy, ARC was able to acquire coal mining and coal processing operations, substantially all located in eastern Kentucky and western West Virginia. On November 25, 2020, Quest Energy changed its name to American Carbon Corp. (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. The coal deposits under control by the Company are generally comprise of metal

View Full Filing

View this 10-K filing on SEC EDGAR