Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries American Resources Corporation Reports First Quarter 2021 Financial Results and Provides Business Outlook By: American Resources Corporation via AccessWire May 12, 2021 at 16:05 PM EDT Well-positioned to be a long-term supplier of raw material and critical elements to the modern-day infrastructure market Near-term catalysts expected to drive significant growth and value Balance sheet improvements provides financial strength and flexibility to execute on its innovation and growth plans Company to host update conference call on Wednesday, May 12 at 4:30 PM ET FISHERS, IN / ACCESSWIRE / May 12, 2021 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), a next generation and socially responsible supplier of raw materials to the new infrastructure and electrification marketplace, today reported its first quarter of 2021 financial results and provided a corporate update. Mark Jensen, Chairman and CEO of American Resources Corporation commented, "Over the course of the first quarter of 2021, we had the opportunity to continue to position our dynamic platform to provide the infrastructure and electrification marketplaces the resources needed to advance to a greener economy. We've had one of the most active three months to date in terms of transforming our Company. We had the opportunity to further define our suite of technology that has brought together some of the best and most innovative universities and chemical engineers that have developed technologies and processes that enable us to capture, process and purify critical and rare earth elements, and do it in the most environmentally safe, and in certain instances environmentally positive, methods ever developed. We are confident that our process chain is at the forefront of establishing a sustainable and healthy supply chain of critical materials here in the United States and redefine how these materials are sourced across the globe. Our milestones and announcement over the first quarter are groundbreaking and demonstrate our commitment to bring these technologies to the market as expeditiously and efficiently as possible." First Quarter 2021 Key Highlights Secured base load sales commitment for production of raw materials servicing the infrastructure marketplace at its Perry County Resources ("PCR") mining complex. Entered into exclusive patent and technology licensing agreements and sponsored research agreements with Penn State University and its Department of Energy and Mineral Engineering to implement Penn State's intellectual property and technologies that separate and extract pre-concentrate critical and rare earth minerals from the Company's carbon-based resources. Acquired exclusive rights for ligand assisted displacement ("LAD") chromatography patents and knowhow, developed at Purdue University, to further expanded its capability in environmentally friendly separation and purification of rare earth elements. This technology is specific to the processing of separated and pure rare earth metals and critical elements from coal byproducts, recycled permanent magnets and lithium-ion batteries. Acquired additional production equipment to expand its base of carbon production and efficiencies at Perry County Resources as well as prepare for the potential opportunity to bring other complexes online in the future. Engaged technology veteran William E. Smith III to lead the design, build and operation phase of its rare earth and critical mineral purification facilities utilizing ligand assisted displacement ("LAD") chromatography technology. Mr. Smith spent thirty-three years at Eli Lilly and Co. (NYSE:LLY) overseeing technical support of their worldwide manufacturing facilities and responsible for worldwide planning, design, and construction of capital projects. Entered into exclusive license agreement with Ohio University for a suite of technologies developed by Dr. Gerardine Botte, the current Whitacre Department Chair in Chemical Engineering at Texas Tech University, to be used for rare earth element ("REE") and critical mineral separation as well as the future production of graphene and advanced carbon products. Advanced the commercialization process of its rare earth element technology process chain with commencement of building a 2kW mobile rare earth processing electrolysis facility in conjunction with the Company's sponsored research program with Dr. Gerardine Botte and Texas Tech University. The facility represents a novel approach for the revalorization of coal, coal waste, and coal byproducts such as fly ash for the production of REE concentrate, carbon, purified fly ash and hydrogen. Priced the initial public offering of American Acquisition Opportunity Inc. (NADSAQ: AMAOU), a blank check company in which the Company has an indirect investment, consisting of 10,000,000 units at $10.00 per unit. AMAOU is focusing its search on land and resource holding companies, with the potential to create, support, and/or innovate for the new economy. Sub-licensed, on a non-exclusive basis, two of its exclusive patents for the production of graphene to Novusterra Inc. for a 50% equity stake in the privately-held company and a portion of future cash flows from the sale of graphene from that entity. Further improved the Company's balance sheet and capital structure through the payoff and / or conversion into equity of an additional $10.3 million of outstanding debt throughout the first three months of 2021. "Looking forward to the remainder of 2021 and beyond, we have never been more excited about the opportunities that lie ahead of us throughout all of our operating divisions. First and foremost, American Carbon, with one of the largest metallurgical carbon growth platforms in the industry, is back producing high quality carbon to supply the steel and alloy metals industry with the necessary resources to support worldwide infrastructure demand. We are seeing that demand grow as economic activity continues to materialize as the world emerges from the COVID-19 pandemic. We are seeing numerous opportunities to expand our production base to fulfill that demand and are confident in our position in being a stable, long-term supplier of these essential resources. As such, we remain comfortable with our previously stated guidance of $55 million to $75 million in revenues for 2021 as a whole," continued Mr. Jensen. "As previously stated, we've had the opportunity to further define our suite of technologies relevant to rare earth and critical mineral production over the past few months. We are aggressively advancing these initiatives, specifically relating to our electrolysis processing and chromatography purification technologies and are very excited for what these technologies can accomplish for our shareholders and stakeholders. Lastly, I think it's important to mention the additional valuation creation we've recently accomplished and will continue to foster. First, the pricing of our Company-sponsored SPAC, American Acquisition Opportunity Inc. has the potential to drive meaningful value creation for our shareholders. The quality of potential targets we are evaluating is certainly impressive. Also, our sub-license agreement with Novusterra Inc., for the development of graphene, demonstrates the value of our acquired intellectual property and our commitment to deliver that value to our shareholders." Conference Call Information American Resources management will host a conference call for investors, analysts and other interested parties on Wednesday, May 12, 2021 at 4:30 PM ET. Interested participants and investors may access the conference call by dialing (877) 407-4019 and referencing American Resources Corporation's First Quarter of 2021 Conference Call, or by the webcast link: here. Financial Results for First Quarter 2021 For the first quarter of 2021, American Resources reported a net income loss of $6.4 million, or $0.14 per share for the three months ended March 31, 2021, as compared with a net income loss of $3.4 million, or a loss of $0.12 per share in the prior-year period. The Company earned adjusted earnings before interest, taxes, depreciation, amortization, equity-based compensation, warrant expense and development and restructuring costs ("Adjusted EBITDA") of a $2.8 million loss in the first quarter of 2021, as compared with an Adjusted EBITDA loss of $847,187 for the first quarter of 2020. First Quarter 2021 Summary Total revenues were $10,646 for the first quarter of 2021 compared to revenues of $524,334 during the first quarter of 2020. General and administrative expenses for the first quarter of 2021 were $1.1 million compared to $842,925 million in the prior year period. American Resources incurred interest expense of $491,113 during the first quarter of 2021 compared to $500,640 during the first quarter of 2020. Development costs during the quarter were $1.8 million, compared to $2.8 million in the fourth quarter of 2020. The Company did not incur any income tax expense in the first quarter of 2021 as it was able to utilize its available net operating losses ("NOL") carried forward from prior periods of approximately $17.8 million as of December 31, 2020. AMERICAN RESOURCES CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED For the three months ended For the three months ended March 31, 2021 March 31, 2020 Coal Sales $ 3,274 $ 524,334 Royalty Income 7,372 - Total Revenue 10,646 524,334 Cost of Coal Sales and Processing (800,515 ) (1,855,187 ) Accretion Expense (305,636 ) (370,587 ) Depreciation (393,530 ) (915,052 ) Amortization of Mining Rights (311,685 ) (313,224 ) General and Administrative (1,081,447 ) (842,925 ) Professional Fees (710,032 ) (194,046 ) Production Taxes and Royalties (568,182 ) (160,230 ) Development Costs (1,811,951 ) (128,159 ) Total Operating expenses (5,982,978 ) (4,779,410 ) Net Loss from Operations (5,972,332 ) (4,255,076 ) Other Income and (expense) Other Income 35,296 1,412,005 Amortization of debt discount and debt issuance costs (2,879 ) - Interest Income 41,171 82,343 Interest expense (491,113 ) (500,640 ) Total Other income (expense) (417,525 ) 993,708 ) Net loss attributable to American Resources Corp. Shareholders $ (6,389,857 ) $ (3,261,368 ) Net loss per common share - basic and diluted $ (0.14 ) $ (0.12 ) Weighted average common shares outstanding- basic and diluted 46,917,910 27,267,197 AMERICAN RESOURCES CORPORATION CONSOLIDATED BALANCE SHEETS UNAUDITED March 31, 2021 December 31, 2020 ASSETS CURRENT ASSETS Cash $ 7,097,465 $ 10,617,495 Accounts Receivable 3,274 38,650 Inventory 150,504 150,504 Prepaid fees 241,668 175,000 Accounts Receivable - Other 234,240 234,240 Total Current Assets 7,727,149 11,215,889 OTHER ASSETS Cash - restricted 1,233,708 583,708 Processing and rail facility 11,591,273 11,591,273 Underground equipment 7,403,417 6,838,417 Surface equipment 2,527,576 2,527,576 Acquired mining rights 561,575 561,575 Coal refuse storage 12,134,192 12,134,192 Less Accumulated Depreciation (13,432,024 ) (12,726,809 ) Land 1,572,435 1,572,435 Investment in LLC - Related Party 2,275,000 - Note Receivable 4,117,139 4,117,139 Total Other Assets 29,984,291 27,199,506 TOTAL ASSETS $ 37,711,440 $ 38,415,395 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) CURRENT LIABILITIES Accounts payable $ 3,049,695 $ 4,288,794 Non-Trade Payables 3,476,236 3,850,781 Accounts payable - related party 712,872 679,146 Accrued interest 247,271 1,043,519 Due to affiliate 74,000 74,000 Current portion of long term-debt (net of unamortized discount of $- and $-) 5,805,453 10,997,692 Convertible note payables - short term (net of unamortized discount of $234,184 and $-) 10,906,144 - Current portion of reclamation liability 2,327,169 2,327,169 Total Current Liabilities 26,598,840 23,261,101 OTHER LIABILITIES Long-term portion of note payable (net of issuance costs of $402,788 and $405,667) 5,033,631 5,330,752 Convertible note payables - long term (net of unamortized discount of $829,650 and $1,854,421) 2,593,703 14,300,907 Reclamation liability 15,833,772 15,528,135 Total Other Liabilities 23,461,106 35,159,794 Total Liabilities 50,059,946 58,420,895 STOCKHOLDERS' EQUITY (DEFICIT) AREC - Class A Common stock: $.0001 par value; 230,000,000 shares authorized, 50,014,410 and 40,522,762 shares issued and outstanding 4,984 4,256 AREC - Series A Preferred stock: $.0001 par value; 100,000 shares authorized, nil and nil shares issued and outstanding - - AREC - Series B Preferred stock: $.001 par value; 20,000,000 shares authorized, nil and nil shares issued and outstanding, respectively - - AREC - Series C Preferred stock: $.001 par value; 20,000,000 shares authorized, nil and nil shares issued and outstanding - - Additional paid-in capital 127,440,638 113,279,448 Accumulated deficit (139,794,126 ) (133,289,247 ) Total Stockholders' Equity (Deficit) (12,348,504 ) (20,005,500 ) TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $ 37,711,442 $ 38,415,395 AMERICAN RESOURCES CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED For the three months ended For the three months ended March 31, 2021 March 31, 2020 Cash Flows from Operating activities: Net loss $ (6,389,855 ) $ (3,261,368 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 393,530 915,052 Amortization of mining rights 311,685 313,224 Accretion expense 305,636 370,587 Reduction of ARO liability due to sale of assets - (312,338 ) Warrant expense 115,025 115,025 Issuance of common share options for compensation 147,000 - Amortization of beneficial conversion feature 590,464 - Issuance of common shares for services 188,000 - Change in current assets and liabilities: Accounts receivable 35,376 2,387,505 Prepaid expenses and other assets (66,668 ) (175,000 ) Inventory - 365,126 Accounts payable (1,613,645 555,516 Accounts payable - related party 33,726 85,446 Accrued interest (796,248 ) (506,383 ) Cash provided by (used in) operating activities (6,745,974 ) 852,392 Cash Flows from Investing activities: Cash paid for PPE, net (1,798,708 ) (408,915 ) Investment in LLC (2,275,000 ) - Cash provided by (used in) investing activities (4,073,708 ) (408,915 ) Cash Flows from Financing activities: Principal payments on long term debt (62,294 ) (72,255 ) Proceeds from long term debt - 28,000 Issuance of common shares for debt and payable conversion 1,997,514 - Payments on factoring agreement, net - (1,807,443 ) Proceeds from convertible note 1,620,000 1,598,642 Proceeds from warrant conversions 2,055,723 - Proceeds from sale of common stock, net 1,105,001 - Cash provided by financing activities 6,715,944 (253,056 ) Increase (decrease) in cash and restricted cash (4,103,738 ) 190,421 Cash and restricted cash, beginning of period 11,201,203 268,811 Cash and restricted cash, end of period $ 7,097,465 $ 459,232 Supplemental Information Non-cash investing and financing activities Conversion of debt and trade payables to common shares $ 1,997,514 $ - Discount on note due to beneficial conversion feature $ 715,740 $ - Cash paid for interest $ 42,426 $ 165,728 Cash paid for income taxes $ - $ - Reconciliation of Non-GAAP Measures Reconciliation of Adjusted EBITDA to Amounts Reported Under U.S. GAAP For the three months ended March 31, 2021 For the three months ended March 31, 2020 Net Income (6,389,857 ) (3,395,547 ) Interest & Other Expenses 491,113 500,640 Income Tax Expense - - Accretion Expense 305,636 370,587 Depreciation 393,530 915,052 Amortization of Mining Rights 311,685 313,224 Amortization of Debt Discount & Issuance 2,879 - Non-Cash Stock & Option Comp. Expense 147,000 - Non-Cash Warrant Expense 115,025 115,025 Development Costs 1,811,951 128,159 PCR Restructuring Expenses - 205,673 Total Adjustments 3,578,819 2,548,360 Adjusted EBITDA(1) (2,811,038 ) (847,187 ) Adjusted EBITDA is defined as net income before net interest expense, income tax expense, accretion expense, depreciation, non-cash stock compensation expense, transaction and other professional fees, and development costs. Adjusted EBITDA is not a measure of financial performance in accordance with GAAP, and we believe items excluded from Adjusted EBITDA are significant to a reader in understanding and assessing our financial condition. Therefore, Adjusted EBITDA should not be considered in isolation, nor as an alternative to net income, income from operations, cash flow from operations or as a measure of our profitability, liquidity, or performance under GAAP. We believe that Adjusted EBITDA presents a useful measure of our ability to incur and service debt based on ongoing operations. Furthermore, similar measures are used by analysts to evaluate our operating performance. Investors should be aware that our presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by others. About American Resources Corporation American Resources Corporation is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated. American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn. Special Note Regarding Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company's actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation's control. The words "believes", "may", "will", "should", "would", "could", "continue", "seeks", "anticipates", "plans", "expects", "intends", "estimates", or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved. PR Contact Precision Public Relations Matt Sheldon 917-280-7329 matt@precisionpr.co Investor Contact: JTC Team, LLC Jenene Thomas 833-475-8247 arec@jtcir.com RedChip Companies Inc. Todd McKnight 1-800-RED-CHIP (733-2447) Info@redchip.com Company Contact: Mark LaVerghetta Vice President of Corporate Finance and Communications 317-855-9926 ext. 0 investor@americanresourcescorp.com SOURCE: American Resources Corporation View source version on accesswire.com: https://www.accesswire.com/646830/American-Resources-Corporation-Reports-First-Quarter-2021-Financial-Results-and-Provides-Business-Outlook Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
American Resources Corporation Reports First Quarter 2021 Financial Results and Provides Business Outlook By: American Resources Corporation via AccessWire May 12, 2021 at 16:05 PM EDT Well-positioned to be a long-term supplier of raw material and critical elements to the modern-day infrastructure market Near-term catalysts expected to drive significant growth and value Balance sheet improvements provides financial strength and flexibility to execute on its innovation and growth plans Company to host update conference call on Wednesday, May 12 at 4:30 PM ET FISHERS, IN / ACCESSWIRE / May 12, 2021 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), a next generation and socially responsible supplier of raw materials to the new infrastructure and electrification marketplace, today reported its first quarter of 2021 financial results and provided a corporate update. Mark Jensen, Chairman and CEO of American Resources Corporation commented, "Over the course of the first quarter of 2021, we had the opportunity to continue to position our dynamic platform to provide the infrastructure and electrification marketplaces the resources needed to advance to a greener economy. We've had one of the most active three months to date in terms of transforming our Company. We had the opportunity to further define our suite of technology that has brought together some of the best and most innovative universities and chemical engineers that have developed technologies and processes that enable us to capture, process and purify critical and rare earth elements, and do it in the most environmentally safe, and in certain instances environmentally positive, methods ever developed. We are confident that our process chain is at the forefront of establishing a sustainable and healthy supply chain of critical materials here in the United States and redefine how these materials are sourced across the globe. Our milestones and announcement over the first quarter are groundbreaking and demonstrate our commitment to bring these technologies to the market as expeditiously and efficiently as possible." First Quarter 2021 Key Highlights Secured base load sales commitment for production of raw materials servicing the infrastructure marketplace at its Perry County Resources ("PCR") mining complex. Entered into exclusive patent and technology licensing agreements and sponsored research agreements with Penn State University and its Department of Energy and Mineral Engineering to implement Penn State's intellectual property and technologies that separate and extract pre-concentrate critical and rare earth minerals from the Company's carbon-based resources. Acquired exclusive rights for ligand assisted displacement ("LAD") chromatography patents and knowhow, developed at Purdue University, to further expanded its capability in environmentally friendly separation and purification of rare earth elements. This technology is specific to the processing of separated and pure rare earth metals and critical elements from coal byproducts, recycled permanent magnets and lithium-ion batteries. Acquired additional production equipment to expand its base of carbon production and efficiencies at Perry County Resources as well as prepare for the potential opportunity to bring other complexes online in the future. Engaged technology veteran William E. Smith III to lead the design, build and operation phase of its rare earth and critical mineral purification facilities utilizing ligand assisted displacement ("LAD") chromatography technology. Mr. Smith spent thirty-three years at Eli Lilly and Co. (NYSE:LLY) overseeing technical support of their worldwide manufacturing facilities and responsible for worldwide planning, design, and construction of capital projects. Entered into exclusive license agreement with Ohio University for a suite of technologies developed by Dr. Gerardine Botte, the current Whitacre Department Chair in Chemical Engineering at Texas Tech University, to be used for rare earth element ("REE") and critical mineral separation as well as the future production of graphene and advanced carbon products. Advanced the commercialization process of its rare earth element technology process chain with commencement of building a 2kW mobile rare earth processing electrolysis facility in conjunction with the Company's sponsored research program with Dr. Gerardine Botte and Texas Tech University. The facility represents a novel approach for the revalorization of coal, coal waste, and coal byproducts such as fly ash for the production of REE concentrate, carbon, purified fly ash and hydrogen. Priced the initial public offering of American Acquisition Opportunity Inc. (NADSAQ: AMAOU), a blank check company in which the Company has an indirect investment, consisting of 10,000,000 units at $10.00 per unit. AMAOU is focusing its search on land and resource holding companies, with the potential to create, support, and/or innovate for the new economy. Sub-licensed, on a non-exclusive basis, two of its exclusive patents for the production of graphene to Novusterra Inc. for a 50% equity stake in the privately-held company and a portion of future cash flows from the sale of graphene from that entity. Further improved the Company's balance sheet and capital structure through the payoff and / or conversion into equity of an additional $10.3 million of outstanding debt throughout the first three months of 2021. "Looking forward to the remainder of 2021 and beyond, we have never been more excited about the opportunities that lie ahead of us throughout all of our operating divisions. First and foremost, American Carbon, with one of the largest metallurgical carbon growth platforms in the industry, is back producing high quality carbon to supply the steel and alloy metals industry with the necessary resources to support worldwide infrastructure demand. We are seeing that demand grow as economic activity continues to materialize as the world emerges from the COVID-19 pandemic. We are seeing numerous opportunities to expand our production base to fulfill that demand and are confident in our position in being a stable, long-term supplier of these essential resources. As such, we remain comfortable with our previously stated guidance of $55 million to $75 million in revenues for 2021 as a whole," continued Mr. Jensen. "As previously stated, we've had the opportunity to further define our suite of technologies relevant to rare earth and critical mineral production over the past few months. We are aggressively advancing these initiatives, specifically relating to our electrolysis processing and chromatography purification technologies and are very excited for what these technologies can accomplish for our shareholders and stakeholders. Lastly, I think it's important to mention the additional valuation creation we've recently accomplished and will continue to foster. First, the pricing of our Company-sponsored SPAC, American Acquisition Opportunity Inc. has the potential to drive meaningful value creation for our shareholders. The quality of potential targets we are evaluating is certainly impressive. Also, our sub-license agreement with Novusterra Inc., for the development of graphene, demonstrates the value of our acquired intellectual property and our commitment to deliver that value to our shareholders." Conference Call Information American Resources management will host a conference call for investors, analysts and other interested parties on Wednesday, May 12, 2021 at 4:30 PM ET. Interested participants and investors may access the conference call by dialing (877) 407-4019 and referencing American Resources Corporation's First Quarter of 2021 Conference Call, or by the webcast link: here. Financial Results for First Quarter 2021 For the first quarter of 2021, American Resources reported a net income loss of $6.4 million, or $0.14 per share for the three months ended March 31, 2021, as compared with a net income loss of $3.4 million, or a loss of $0.12 per share in the prior-year period. The Company earned adjusted earnings before interest, taxes, depreciation, amortization, equity-based compensation, warrant expense and development and restructuring costs ("Adjusted EBITDA") of a $2.8 million loss in the first quarter of 2021, as compared with an Adjusted EBITDA loss of $847,187 for the first quarter of 2020. First Quarter 2021 Summary Total revenues were $10,646 for the first quarter of 2021 compared to revenues of $524,334 during the first quarter of 2020. General and administrative expenses for the first quarter of 2021 were $1.1 million compared to $842,925 million in the prior year period. American Resources incurred interest expense of $491,113 during the first quarter of 2021 compared to $500,640 during the first quarter of 2020. Development costs during the quarter were $1.8 million, compared to $2.8 million in the fourth quarter of 2020. The Company did not incur any income tax expense in the first quarter of 2021 as it was able to utilize its available net operating losses ("NOL") carried forward from prior periods of approximately $17.8 million as of December 31, 2020. AMERICAN RESOURCES CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED For the three months ended For the three months ended March 31, 2021 March 31, 2020 Coal Sales $ 3,274 $ 524,334 Royalty Income 7,372 - Total Revenue 10,646 524,334 Cost of Coal Sales and Processing (800,515 ) (1,855,187 ) Accretion Expense (305,636 ) (370,587 ) Depreciation (393,530 ) (915,052 ) Amortization of Mining Rights (311,685 ) (313,224 ) General and Administrative (1,081,447 ) (842,925 ) Professional Fees (710,032 ) (194,046 ) Production Taxes and Royalties (568,182 ) (160,230 ) Development Costs (1,811,951 ) (128,159 ) Total Operating expenses (5,982,978 ) (4,779,410 ) Net Loss from Operations (5,972,332 ) (4,255,076 ) Other Income and (expense) Other Income 35,296 1,412,005 Amortization of debt discount and debt issuance costs (2,879 ) - Interest Income 41,171 82,343 Interest expense (491,113 ) (500,640 ) Total Other income (expense) (417,525 ) 993,708 ) Net loss attributable to American Resources Corp. Shareholders $ (6,389,857 ) $ (3,261,368 ) Net loss per common share - basic and diluted $ (0.14 ) $ (0.12 ) Weighted average common shares outstanding- basic and diluted 46,917,910 27,267,197 AMERICAN RESOURCES CORPORATION CONSOLIDATED BALANCE SHEETS UNAUDITED March 31, 2021 December 31, 2020 ASSETS CURRENT ASSETS Cash $ 7,097,465 $ 10,617,495 Accounts Receivable 3,274 38,650 Inventory 150,504 150,504 Prepaid fees 241,668 175,000 Accounts Receivable - Other 234,240 234,240 Total Current Assets 7,727,149 11,215,889 OTHER ASSETS Cash - restricted 1,233,708 583,708 Processing and rail facility 11,591,273 11,591,273 Underground equipment 7,403,417 6,838,417 Surface equipment 2,527,576 2,527,576 Acquired mining rights 561,575 561,575 Coal refuse storage 12,134,192 12,134,192 Less Accumulated Depreciation (13,432,024 ) (12,726,809 ) Land 1,572,435 1,572,435 Investment in LLC - Related Party 2,275,000 - Note Receivable 4,117,139 4,117,139 Total Other Assets 29,984,291 27,199,506 TOTAL ASSETS $ 37,711,440 $ 38,415,395 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) CURRENT LIABILITIES Accounts payable $ 3,049,695 $ 4,288,794 Non-Trade Payables 3,476,236 3,850,781 Accounts payable - related party 712,872 679,146 Accrued interest 247,271 1,043,519 Due to affiliate 74,000 74,000 Current portion of long term-debt (net of unamortized discount of $- and $-) 5,805,453 10,997,692 Convertible note payables - short term (net of unamortized discount of $234,184 and $-) 10,906,144 - Current portion of reclamation liability 2,327,169 2,327,169 Total Current Liabilities 26,598,840 23,261,101 OTHER LIABILITIES Long-term portion of note payable (net of issuance costs of $402,788 and $405,667) 5,033,631 5,330,752 Convertible note payables - long term (net of unamortized discount of $829,650 and $1,854,421) 2,593,703 14,300,907 Reclamation liability 15,833,772 15,528,135 Total Other Liabilities 23,461,106 35,159,794 Total Liabilities 50,059,946 58,420,895 STOCKHOLDERS' EQUITY (DEFICIT) AREC - Class A Common stock: $.0001 par value; 230,000,000 shares authorized, 50,014,410 and 40,522,762 shares issued and outstanding 4,984 4,256 AREC - Series A Preferred stock: $.0001 par value; 100,000 shares authorized, nil and nil shares issued and outstanding - - AREC - Series B Preferred stock: $.001 par value; 20,000,000 shares authorized, nil and nil shares issued and outstanding, respectively - - AREC - Series C Preferred stock: $.001 par value; 20,000,000 shares authorized, nil and nil shares issued and outstanding - - Additional paid-in capital 127,440,638 113,279,448 Accumulated deficit (139,794,126 ) (133,289,247 ) Total Stockholders' Equity (Deficit) (12,348,504 ) (20,005,500 ) TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $ 37,711,442 $ 38,415,395 AMERICAN RESOURCES CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED For the three months ended For the three months ended March 31, 2021 March 31, 2020 Cash Flows from Operating activities: Net loss $ (6,389,855 ) $ (3,261,368 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 393,530 915,052 Amortization of mining rights 311,685 313,224 Accretion expense 305,636 370,587 Reduction of ARO liability due to sale of assets - (312,338 ) Warrant expense 115,025 115,025 Issuance of common share options for compensation 147,000 - Amortization of beneficial conversion feature 590,464 - Issuance of common shares for services 188,000 - Change in current assets and liabilities: Accounts receivable 35,376 2,387,505 Prepaid expenses and other assets (66,668 ) (175,000 ) Inventory - 365,126 Accounts payable (1,613,645 555,516 Accounts payable - related party 33,726 85,446 Accrued interest (796,248 ) (506,383 ) Cash provided by (used in) operating activities (6,745,974 ) 852,392 Cash Flows from Investing activities: Cash paid for PPE, net (1,798,708 ) (408,915 ) Investment in LLC (2,275,000 ) - Cash provided by (used in) investing activities (4,073,708 ) (408,915 ) Cash Flows from Financing activities: Principal payments on long term debt (62,294 ) (72,255 ) Proceeds from long term debt - 28,000 Issuance of common shares for debt and payable conversion 1,997,514 - Payments on factoring agreement, net - (1,807,443 ) Proceeds from convertible note 1,620,000 1,598,642 Proceeds from warrant conversions 2,055,723 - Proceeds from sale of common stock, net 1,105,001 - Cash provided by financing activities 6,715,944 (253,056 ) Increase (decrease) in cash and restricted cash (4,103,738 ) 190,421 Cash and restricted cash, beginning of period 11,201,203 268,811 Cash and restricted cash, end of period $ 7,097,465 $ 459,232 Supplemental Information Non-cash investing and financing activities Conversion of debt and trade payables to common shares $ 1,997,514 $ - Discount on note due to beneficial conversion feature $ 715,740 $ - Cash paid for interest $ 42,426 $ 165,728 Cash paid for income taxes $ - $ - Reconciliation of Non-GAAP Measures Reconciliation of Adjusted EBITDA to Amounts Reported Under U.S. GAAP For the three months ended March 31, 2021 For the three months ended March 31, 2020 Net Income (6,389,857 ) (3,395,547 ) Interest & Other Expenses 491,113 500,640 Income Tax Expense - - Accretion Expense 305,636 370,587 Depreciation 393,530 915,052 Amortization of Mining Rights 311,685 313,224 Amortization of Debt Discount & Issuance 2,879 - Non-Cash Stock & Option Comp. Expense 147,000 - Non-Cash Warrant Expense 115,025 115,025 Development Costs 1,811,951 128,159 PCR Restructuring Expenses - 205,673 Total Adjustments 3,578,819 2,548,360 Adjusted EBITDA(1) (2,811,038 ) (847,187 ) Adjusted EBITDA is defined as net income before net interest expense, income tax expense, accretion expense, depreciation, non-cash stock compensation expense, transaction and other professional fees, and development costs. Adjusted EBITDA is not a measure of financial performance in accordance with GAAP, and we believe items excluded from Adjusted EBITDA are significant to a reader in understanding and assessing our financial condition. Therefore, Adjusted EBITDA should not be considered in isolation, nor as an alternative to net income, income from operations, cash flow from operations or as a measure of our profitability, liquidity, or performance under GAAP. We believe that Adjusted EBITDA presents a useful measure of our ability to incur and service debt based on ongoing operations. Furthermore, similar measures are used by analysts to evaluate our operating performance. Investors should be aware that our presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by others. About American Resources Corporation American Resources Corporation is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated. American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn. Special Note Regarding Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company's actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation's control. The words "believes", "may", "will", "should", "would", "could", "continue", "seeks", "anticipates", "plans", "expects", "intends", "estimates", or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved. PR Contact Precision Public Relations Matt Sheldon 917-280-7329 matt@precisionpr.co Investor Contact: JTC Team, LLC Jenene Thomas 833-475-8247 arec@jtcir.com RedChip Companies Inc. Todd McKnight 1-800-RED-CHIP (733-2447) Info@redchip.com Company Contact: Mark LaVerghetta Vice President of Corporate Finance and Communications 317-855-9926 ext. 0 investor@americanresourcescorp.com SOURCE: American Resources Corporation View source version on accesswire.com: https://www.accesswire.com/646830/American-Resources-Corporation-Reports-First-Quarter-2021-Financial-Results-and-Provides-Business-Outlook