CONTINGENCIES AND COMMITMENTS	12 Months Ended
Dec. 31, 2024
CONTINGENCIES AND COMMITMENTS
CONTINGENCIES AND COMMITMENTS	NOTE 10 – CONTINGENCIES AND COMMITMENTS In the course of normal operations, the Company is involved in various claims and litigation matters that management intends to defend. The range of loss, if any, from all potential claims cannot be reasonably estimated. However, management believes the ultimate resolution of matters not disclosed below will not have a material adverse impact on the Company’s business or financial position. American Infrastructure Legal Proceedings The Kentucky Energy Cabinet, the Kentucky Department for Natural Resources and the Kentucky Division of Mine Reclamation and Enforcement have assessed claims totaling $2,189,000 that American Infrastructure Corporation (“AIC”) has accrued. Claims assessed by the Mine Health Safety Administration totaling $689,000 and have also been accrued by AIC. McCoy Elkhorn LLC (McCoy) and Deane Mining LLC (Dean) have received notices of intent to place liens for amounts owed on federal excise taxes. The amounts associated with the notices totaling $625,000 have been accrued. In November of 2023 a court entered into an order granting summary judgment against AIC in connection with a lease dispute in which the plaintiff alleges that the defendants failed to diligently mine coal in accordance with the terms of the lease and did not pay minimum royalties owed under the agreement. A final judgment was entered into during 2024 against the defendant, who is currently appealing the decision and pursuing post-judgment collection efforts. The case is being appealed and $2,000,000 has been accrued for this potential loss. The Company is actively defending the claim and is engaged in efforts to reach a favorable out-of-court settlement. In 2023, Dean was given a judgement due to a lease dispute, in which the plaintiff alleges trespass, conversion, and civil conspiracy against the defendants. A judgment has been entered against Dean, and management is currently appealing the decision. Management has accrued $5,440,657 has for this potential loss using an interest rate to calculate interest of 6%. The Company also has a number of unpaid legal judgments for amounts that plantiffs claim are due for services or goods provided to the Company that are accrued and total approximately $3,400,000 as of December 31, 2024 and 2023. In April 2025, a process was undertaken in connection with our 2024 financial statement audit and the re-audit of the 2023 consolidated financial statements to obtain responses from all attorneys that represented the Company in legal matters during 2024 and 2023, The objective of this process was to obtain responses regarding the status of legal matters and our requirements to disclosure and/or accrue for legal contingencies under Accounting Standard Codification (ASC), 450, Contingencies. A retrospective review was also performed to understand the developments in the various legal matters disclosed above and when we should have determined the potential losses were probable and the reporting period such losses should have been first recognized. We determined that the matters previously not recognized should have been accrued for in 2023. Accordingly, an approximate $11,000,000 charge for litigation expense was recognized as one element of our restatement of the 2023 statement of operations. Furthermore, we assessed whether matters resulting in the necessity of the litigation charge were changes in estimates or rather stemmed from an error in not undertaking a complete process in prior periods to assess contingencies that should have been accrued under ASC 450. We concluded that this was an accounting error.

CONTINGENCIES AND COMMITMENTS

12 Months Ended

Dec. 31, 2024

NOTE 10 – CONTINGENCIES AND COMMITMENTS

In the course of normal operations, the Company is involved in various claims and litigation matters that management intends to defend. The range of loss, if any, from all potential claims cannot be reasonably estimated. However, management believes the ultimate resolution of matters not disclosed below will not have a material adverse impact on the Company’s business or financial position.

American Infrastructure Legal Proceedings

The Kentucky Energy Cabinet, the Kentucky Department for Natural Resources and the Kentucky Division of Mine Reclamation and Enforcement have assessed claims totaling $2,189,000 that American Infrastructure Corporation (“AIC”) has accrued. Claims assessed by the Mine Health Safety Administration totaling $689,000 and have also been accrued by AIC. McCoy Elkhorn LLC (McCoy) and Deane Mining LLC (Dean) have received notices of intent to place liens for amounts owed on federal excise taxes. The amounts associated with the notices totaling $625,000 have been accrued.

In November of 2023 a court entered into an order granting summary judgment against AIC in connection with a lease dispute in which the plaintiff alleges that the defendants failed to diligently mine coal in accordance with the terms of the lease and did not pay minimum royalties owed under the agreement. A final judgment was entered into during 2024 against the defendant, who is currently appealing the decision and pursuing post-judgment collection efforts. The case is being appealed and $2,000,000 has been accrued for this potential loss. The Company is actively defending the claim and is engaged in efforts to reach a favorable out-of-court settlement.

In 2023, Dean was given a judgement due to a lease dispute, in which the plaintiff alleges trespass, conversion, and civil conspiracy against the defendants. A judgment has been entered against Dean, and management is currently appealing the decision. Management has accrued $5,440,657 has for this potential loss using an interest rate to calculate interest of 6%.

The Company also has a number of unpaid legal judgments for amounts that plantiffs claim are due for services or goods provided to the Company that are accrued and total approximately $3,400,000 as of December 31, 2024 and 2023.

In April 2025, a process was undertaken in connection with our 2024 financial statement audit and the re-audit of the 2023 consolidated financial statements to obtain responses from all attorneys that represented the Company in legal matters during 2024 and 2023, The objective of this process was to obtain responses regarding the status of legal matters and our requirements to disclosure and/or accrue for legal contingencies under Accounting Standard Codification (ASC), 450, Contingencies. A retrospective review was also performed to understand the developments in the various legal matters disclosed above and when we should have determined the potential losses were probable and the reporting period such losses should have been first recognized. We determined that the matters previously not recognized should have been accrued for in 2023. Accordingly, an approximate $11,000,000 charge for litigation expense was recognized as one element of our restatement of the 2023 statement of operations. Furthermore, we assessed whether matters resulting in the necessity of the litigation charge were changes in estimates or rather stemmed from an error in not undertaking a complete process in prior periods to assess contingencies that should have been accrued under ASC 450. We concluded that this was an accounting error.