0001654954-19-009282.txt : 20190813 0001654954-19-009282.hdr.sgml : 20190813 20190813060910 ACCESSION NUMBER: 0001654954-19-009282 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20190812 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20190813 DATE AS OF CHANGE: 20190813 FILER: COMPANY DATA: COMPANY CONFORMED NAME: American Resources Corp CENTRAL INDEX KEY: 0001590715 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS REPAIR SERVICES [7600] IRS NUMBER: 463914127 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-38816 FILM NUMBER: 191018158 BUSINESS ADDRESS: STREET 1: 9002 TECHNOLOGY LANE CITY: FISHERS STATE: IN ZIP: 46038 BUSINESS PHONE: 606-637-3740 MAIL ADDRESS: STREET 1: 9002 TECHNOLOGY LANE CITY: FISHERS STATE: IN ZIP: 46038 FORMER COMPANY: FORMER CONFORMED NAME: NGFC Equities, Inc. DATE OF NAME CHANGE: 20150512 FORMER COMPANY: FORMER CONFORMED NAME: NGFC Equities, INC. DATE OF NAME CHANGE: 20150512 FORMER COMPANY: FORMER CONFORMED NAME: NATURAL GAS FUELING & CONVERSION INC. DATE OF NAME CHANGE: 20131031 8-K 1 arc_8k.htm CURRENT REPORT Blueprint
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of Earliest event Reported): August 12, 2019
 
AMERICAN RESOURCES CORPORATION
 
(Exact name of registrant as specified in its charter)
 
Florida
(State or other jurisdiction
of incorporation)
000-55456
(Commission
File Number)
46-3914127
(I.R.S. Employer
Identification No.)
 
9002 Technology Lane, Fishers Indiana, 46038
(Address of principal executive offices)
 
(317) 855-9926
(Registrant’s telephone number, including area code)
 
________________________________________________
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See: General Instruction A.2. below):
 
[ ] 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
[ ] 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR240.14a-12)
 
[ ] 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR240.14d-2(b))
 
[ ] 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR240.13e-4(c))
 

 
 
 
Item 2.02 Results of Operations and Financial Condition
 
On August 12, 2019, American Resources Corporation (or the “Company”) issued a press release announcing its financial and operating results for the quarter ended June 30, 2019.
 
The information in this Form 8-K, including the exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, unless American Resources Corporation specifically states in a future filing that the information is to be considered “filed” under the Securities Exchange Act of 1934 or incorporates it by reference into a filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.
 
A copy of the press release is attached as Exhibit 99.1 hereto and is incorporated herein by reference.
 
Item 9.01.1. Financial Statements and Exhibits.
 
(d)                                 Exhibits
 
The following exhibits are attached hereto and filed herewith.
 
Exhibit No.

Description
 
Press Release Dated August 12, 2019
 
 
 
 
 
 
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
American Resources Corporation
 
 
 
 
 
Date: August 12, 2019   
By:  
/s/ Mark C. Jensen
 
 
 
Mark C. Jensen 
 
 
 
Chief Executive Officer 
 
 

 
 
 
 
 
 
 
 
 
 
 
EX-99.1 2 arc_ex991.htm PRESS RELEASE Blueprint
  Exhibit 99.1
 
American Resources Corporation Reports Second Quarter 2019 Financial Results
 
Reports Adjusted EBITDA of $1.8 million
 
Revenues grew over 33 percent to $9.34 million
 
Company records best quarterly production and sales volume of over 126 thousand short tons; a 30% year-over-year increase
 
August 12th, 2019 | Source: American Resources Corporation
 
FISHERS, INDIANA / ACCESSWIRE / August 12th, 2019 / American Resources Corporation (NASDAQ: AREC), a supplier of raw materials to the rapidly growing global infrastructure marketplace, with a primary focus on the extraction, processing, transportation and distribution of metallurgical coal to the steel industry, today reported a net loss from operations of $3.35 million, or a loss of $0.14 per share, in the second quarter of 2019, compared with a net loss from operations of $1.99 million, or a loss of $2.23 per share, in the prior-year period. The Company earned adjusted earnings before interest, taxes, depreciation, amortization, accretion on asset retirement obligations, non-operating expenses, and development costs (‘adjusted EBITDA”) of $1.8 million in the second quarter of 2019, as compared with adjusted EBITDA loss of $.68 million for the second quarter of 2018. Revenues totaled $9.34 million for the three months ended June 30, 2019 versus $7.02 million in the prior-year quarter.
 
 “The market for our coal qualities remained strong in the second quarter and we continue to work hard and focus on increasing our production level to fulfill the contracted demand from our customers. We’re pleased with the thirty percent year-over-year production growth we achieved in the second quarter which resulted in an approximate thirty-two percent revenue growth over the same period,” stated Mark Jensen, Chairman and CEO of American Resources Corporation. “These solid results reflect the beginnings of our growth objectives and what our platform has been set up to deliver for our employees, customers and shareholders.”
 
Operational Results
 
The Company produced and sold 126,977 short tons of coal in the second quarter of 2019, 30.3% more than the second quarter of 2018.
 
 
 
 
The exhibit below summarizes some of the key sales, production and financial metrics:
 
 
 
Three months ended
 
 
Three months ended
 
 
 
June 31,
 
 
March 31,
 
 
June 31,
 
 
 
2019
 
 
2019
 
 
2018
 
Sales Volume (a)
 
 
 
 
 
 
 
 
 
Tons Sold
  127,021 
  99,339 
  97,457 
 
    
    
    
Company Production (a)
    
    
    
McCoy Elkhorn Coal
  56,335 
  38,276 
  53,208 
Deane Mining
  70,686 
  61,058 
  44,249 
Total
  127,021 
  99,334 
  97,457 
 
    
    
    
Company Financial Metrics(b)
    
    
    
Revenue per Ton
  73.38 
  70.41 
  72.09 
Cash Cost per Ton Sold (c)
  49.27 
  79.57 
  55.39 
Cash Margin per Ton (c)
  24.11 
  (9.15)
  16.71 
 
    
    
    
Development Costs
  1,887,447 
  2,600,117 
  2,032,201 
_________________
Notes:
(a) In short tons
(b) Excludes transportation
(c) Cash cost per ton is based on reported cost of sales and includes items such as production taxes, royalties, labor, fuel, and other similar production and sales cost items, and may be adjusted for other items that, pursuant to GAAP, are classified in the Statement of Operations as costs other than cost of sales, but relate directly to the cost incurred to produce coal. Our cash cost of sales per short ton is calculated as cash cost of sales divided by short tons sold, and our cash margin per ton is calculated by subtracting cash cost per ton from revenue per ton. Cash cost of sales per short ton and average cash margin per ton are non-GAAP financial measure which are calculated in conformity with U.S. GAAP and should be considered supplemental to, and not as a substitute or superior to financial measures calculated in conformity with GAAP. We believe cash cost of sales per ton and average cash margin per ton are useful measures of performance as it aides some investors and analysts in comparing us against other companies. Cash cost of sales per ton and margin per ton may not be comparable to similarly titled measures used by other companies.
 
 
Mark Jensen added, “Throughout the second quarter of 2019, we made some solid advancements in our organic growth plans. Most notably, we were able to bring our Carnegie 1 mine back into production after a period of development production which confirmed the appropriate mining style and equipment. We are in the process of ramping our production at Carnegie 1 under our enhanced mine plan to support long-term, expanded production. We expect to have Carnegie 1 running at our expected capacity of 32,000 – 42,000 clean tons per month later this fall. Additionally, we continue to progress on enhancing our already producing mines, such as Mine #15 and Access Energy, to increase production and efficiencies. Once completed, we will be focusing on advancing our organic production growth by bringing our next round of mines online to feed our McCoy Elkhorn Coal and Deane Mining complexes. These mines consist of our Carnegie 2, PointRock, Elk 2 and Classic mines that we have already begun development work on and should begin to see production from this phase of growth later this year and early 2020.”
 
 
 
 
Additional Financial Results
 
Total revenues were $9,342,126for the second quarter of 2019, which increased 33 percent from $7,023,040 in the second quarter of 2018.
 
Cost of sales (includes mining, transportation, , and processing costs,) for the second quarter of 2019 were $5,654,568, or 60.5 percent of total revenues, compared to $4,619,675, or 65.8% of total revenue in the same period of 2018.
 
General and administrative expenses for the second quarter of 2019 were $990,918 for the second quarter of 2019, or 10.6 percent of total revenue. Depreciation for the second quarter of 2019 were $804,889, or 8.6 percent of total revenue. American Resources incurred interest expense of $447,989 during the second quarter of 2019 compared to $311,295 during the second quarter of 2018. Development costs during the quarter were $2,887,448, compared to $1,600,117 in the first quarter of 2019.
 
The Company did not incur any income tax expense as it was able to utilize its available net operating losses (“NOL”) carried forward from prior periods of approximately $2,027,765 as of December 31, 2018.
 
Company Outlook
 
As previously stated, based on American Resources’ organic growth from its already owned infrastructure, controlled mining permits and its capital investment schedule, the company is maintaining its 2020 production forecast range of 2.2 to 2.8 million tons.
 
 
 
 
AMERICAN RESOURCES CORPORATION
 
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
 
 
 
For the three months ended June 30, 2019
 
 
For the three months ended June 30, 2018
 
 
For the six months ended June 30, 2019
 
 
For the six months ended June 30, 2018
 
 
 
 
 
 
As Restated
 
 
 
 
 
As Restated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Coal Sales
 $9,321,250 
 $7,023,040 
 $16,315,526 
 $14,328,900 
Processing Services Income
  20,876 
  - 
  20,876 
  19,516 
 
    
    
    
    
Total Revenue
  9,342,126 
  7,023,040 
  16,336,402 
  14,348,416 
 
    
    
    
    
Cost of Coal Sales and Processing
  (5,654,568)
  (4,619,675)
  (12,298,655)
  (10,093,103)
Accretion Expense
  (320,098)
  (341,580)
  (641,799)
  (683,161)
Depreciation
  (804,889)
  (615,390)
  (1,621,805)
  (1,230,779)
Amortization of Mining Rights
  (802,590)
  - 
  (1,339,381)
  - 
General and Administrative
  (990,918)
  (464,110)
  (2,363,506)
  (940,699)
Professional Fees
  (631,934)
  (163,412)
  (4,965,830)
  (438,015)
Production Taxes and Royalties
  (603,957)
  (778,124)
  (1,863,543)
  (1,727,917)
Development Costs
  (2,887,448)
  (2,032,201)
  (4,487,565)
  (3,719,374)
 
    
    
    
    
Total Operating Expenses
  (12,696,402)
  (9,014,492)
  (29,582,084)
  (18,833,048)
 
    
    
    
    
Net Loss from Operations
  (3,354,276)
  (1,991,452)
  (13,245,682)
  (4,484,632)
 
    
    
    
    
Other Income and (expense)
    
    
    
    
Other Income
  214,529 
  290,609 
  480,954 
  419,123 
Gain on cancelation of debt
  - 
  315,000 
  - 
  315,000 
Loss on settlement of payable
  - 
  - 
  (22,660)
  - 
Amortization of debt discount and issuance costs
  (2,869,118)
  - 
  (7,502,979)
  - 
Interest Income
  41,172 
  - 
  82,343 
  41,171 
Warrant Modification Expense
  (2,545,360)
  - 
  (2,545,360)
  - 
Interest expense
  (447,989)
  (311,295)
  (772,843)
  (558,449)
Total Other income (expense)
  (5,606,765)
  294,314 
  (10,280,545)
  216,845 
 
    
    
    
    
Net Loss
  (8,961,042)
  (1,697,138)
  (23,526,227)
  (4,267,787)
 
    
    
    
    
Less: Series B dividend requirement
  - 
  (17,000)
  - 
  (87,157)
 
    
    
    
    
Less: Net loss attributable to Non Controlling Interest
  - 
  (22,764)
  - 
  (151,278)
 
    
    
    
    
Net loss attributable to American Resources Corporation Shareholders
 $(8,961,042)
 $(1,736,902)
 $(23,526,227)
 $(4,506,222)
 
    
    
    
    
Net loss per common share - basic and diluted
 $(0.38)
 $(1.95)
 $(1.07)
 $(5.05)
 
    
    
    
    
Weighted average common shares outstanding
  23,345,857 
  892,044 
  22,078,999 
  892,044 
 
 
 
 
AMERICAN RESOURCES CORPORATION
CONSOLIDATED BALANCE SHEETS
UNAUDITED
 
 
 
June 30,
2019
 
 
December 31,
 2018
 
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
Cash
 $1,129,790 
 $2,293,107 
Accounts Receivable
  1,945,330 
  1,338,680 
Inventory
  121,026 
  163,800 
Prepaid fees
  483,000 
  147,826 
Accounts Receivable - Other
  360,718 
  319,548 
Total Current Assets
  4,039,864 
  4,262,961 
 
    
    
OTHER ASSETS
    
    
Cash - restricted
  364,985 
  411,692 
Processing and rail facility
  11,630,171 
  11,630,171 
Underground equipment
  9,452,724 
  8,717,229 
Surface equipment
  3,101,518 
  3,101,518 
Acquired mining rights
  28,313,241 
  2,913,241 
 
    
    
Coal refuse storage
  11,993,827 
  11,993,827 
Less Accumulated Depreciation
  (9,652,446)
  (6,691,259)
Land
  2,407,193 
  907,193 
Note Receivable
  4,117,139 
  4,117,139 
Total Other Assets
  61,728,352 
  37,100,751 
 
    
    
TOTAL ASSETS
 $65,768,216 
 $41,363,712 
 
    
    
 
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
 
 
    
    
CURRENT LIABILITIES
    
    
Accounts payable
 $6,245,513 
 $8,139,662 
Accounts payable – related party
  597,656 
  474,654 
Accrued interest
  1,698,222 
  1,118,736 
Funds held for others
  19,955 
  79,662 
Due to affiliate
  124,000 
  124,000 
Current portion of long term-debt (net of unamortized discount of $- and $134,296)
  15,528,199 
  14,169,139 
Current portion of convertible debt, (net of unamortized discount of $- and $-)
  6,819,632 
  - 
Current portion of reclamation liability
  2,327,169 
  2,327,169 
Total Current Liabilities
  33,360,346 
  26,433,022 
 
    
    
OTHER LIABILITIES
    
    
Long-term portion of note payable (net of issuance costs of $422,941 and $428,699)
  4,826,451 
  7,918,872 
Reclamation liability
  16,853,436 
  16,211,640 
Total Other Liabilities
  21,679,887 
  24,130,512 
 
    
    
Total Liabilities
  55,040,233 
  50,563,534 
 
    
    
STOCKHOLDERS’ EQUITY (DEFICIT)
    
    
AREC - Class A Common stock: $.0001 par value; 230,000,000 shares authorized, 23,367,197 and 17,763,469 shares issued and outstanding
  2,337 
  1,776 
AREC - Series A Preferred stock: $.0001 par value; 5,000,000 shares authorized, 0 and 481,780 shares issued and outstanding
  - 
  48 
AREC - Series C Preferred stock: $.0001 par value; 20,000,000 shares authorized, 0 and 50,000 shares issued and outstanding
  - 
  5 
Additional paid-in capital
  86,367,056 
  42,913,532 
Accumulated deficit
  (75,641,410)
  (52,115,183)
Total Stockholders’ Equity (Deficit)
  10,727,983 
  (9,199,822)
 
    
    
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
 $65,768,216 
 $41,363,712 
 
 
 
 
 
AMERICAN RESOURCES CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
 
 
 
For the six
months ended
 
 
For the six
months ended
 
 
 
June 30,
2019
 
 
June 30, 2018
As Restated
 
Cash Flows from Operating activities:
 
 
 
 
 
 
Net loss
 $(23,526,227)
 $(4,267,787)
Adjustments to reconcile net loss to net cash used in operating activities:
    
    
Depreciation
  1,621,805 
  1,230,779 
Amortization of mining rights
  1,339,381 
  - 
Accretion expense
  641,799 
  683,161 
Gain on cancelation of debt
  - 
  (315,000)
Recovery of previously impaired accounts receivable
  (50,806)
  (92,573)
Amortization of issuance costs and debt discount
  7,502,979 
  126,529 
Warrant modification expense
  2,545,360 
  - 
Stock option expense
  142,296 
  - 
Warrant expense
  2,524,500 
    
Share compensation expense
  1,806,040 
  - 
Change in current assets and liabilities:
    
    
 
    
    
Accounts receivable
  (597,015)
  102,134 
Inventory
  42,774 
  548,752 
Prepaid expenses and other assets
  (335,174)
  (323,924)
Accounts payable
  (1,679,980)
  (369,510)
Funds held for others
  (59,707)
  (58,776)
Accrued interest
  579,486 
  254,774 
Accounts payable - related party
  123,002 
  - 
Cash used in operating activities
  (7,379,486)
  (2,481,441)
 
    
    
Cash Flows from Investing activities:
    
    
 
    
    
Advances made in connection with management agreement
  - 
  (99,582)
Advance repayment in connection with management agreement
  - 
  192,155 
Cash paid for PPE, net
  (735,495)
  - 
Cash provided by (used in) investing activities
  (735,495)
  (92,573)
 
    
    
Cash Flows from Financing activities:
    
    
 
    
    
Principal payments on long term debt
  (2,314,680)
  (1,147,974)
Proceeds from the sale of common stock, net
  4,354,000 
  - 
Proceeds from long term debt
  4,299,980 
  4,281,965 
Net proceeds from (payments to) factoring agreement
  565,657 
  (191,623)
Cash provided by financing activities
  6,904,957 
  2,942,368 
 
    
    
Increase(decrease) in cash and restricted cash
  (1,210,024)
  553,500 
 
    
    
Cash and restricted cash, beginning of period
  2,704,799 
  385,665 
 
    
    
Cash and restricted cash, end of period
 $1,494,775 
 $939,165 
 
    
    
Supplemental Information
    
    
Non-cash investing and financing activities
    
    
Assumption of net assets and liabilities for asset acquisitions
 $2,500,000 
 $2,217,952 
Equipment for notes payable
 $- 
 $906,660 
Common shares issued in asset acquisition
 $24,400,000 
 $- 
Preferred Series B dividends
 $- 
 $87,157 
Conversion of accounts payable to common stock
 $231,661 
 $- 
Issuance of common shares with note payable
 $87,250 
 $- 
Conversion of Series A Preferred into common stock
 $161 
 $- 
Conversion of Series B Preferred into common stock
 $1 
 $- 
Warrant exercise for common shares
 $60 
 $- 
Discount on note due to beneficial conversion feature
 $7,362,925 
 $- 
Cancellation of common shares
 $11 
 $- 
Forgiveness of accrued management fee
 $- 
 $17,840,615 
 
    
    
Cash paid for interest
 $281,832 
 $171,954 
Cash paid for income taxes
 $- 
 $- 
 
 
 
 
AMERICAN RESOURCES CORPORATION
CONSOLIDATED BALANCE SHEETS
UNAUDITED
 
 
 
June 30,
2019
 
 
December 31,
 2018
 
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
Cash
 $1,129,790 
 $2,293,107 
Accounts Receivable
  1,945,330 
  1,338,680 
Inventory
  121,026 
  163,800 
Prepaid fees
  483,000 
  147,826 
Accounts Receivable - Other
  360,718 
  319,548 
Total Current Assets
  4,039,864 
  4,262,961 
 
    
    
OTHER ASSETS
    
    
Cash - restricted
  364,985 
  411,692 
Processing and rail facility
  11,630,171 
  11,630,171 
Underground equipment
  9,452,724 
  8,717,229 
Surface equipment
  3,101,518 
  3,101,518 
Acquired mining rights
  28,313,241 
  2,913,241 
 
    
    
Coal refuse storage
  11,993,827 
  11,993,827 
Less Accumulated Depreciation
  (9,652,446)
  (6,691,259)
Land
  2,407,193 
  907,193 
Note Receivable
  4,117,139 
  4,117,139 
Total Other Assets
  61,728,352 
  37,100,751 
 
    
    
TOTAL ASSETS
 $65,768,216 
 $41,363,712 
 
    
    
 
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
 
 
    
    
CURRENT LIABILITIES
    
    
Accounts payable
 $6,245,513 
 $8,139,662 
Accounts payable – related party
  597,656 
  474,654 
Accrued interest
  1,698,222 
  1,118,736 
Funds held for others
  19,955 
  79,662 
Due to affiliate
  124,000 
  124,000 
Current portion of long term-debt (net of unamortized discount of $- and $134,296)
  15,528,199 
  14,169,139 
Current portion of convertible debt, (net of unamortized discount of $- and $-)
  6,819,632 
  - 
Current portion of reclamation liability
  2,327,169 
  2,327,169 
Total Current Liabilities
  33,360,346 
  26,433,022 
 
    
    
OTHER LIABILITIES
    
    
Long-term portion of note payable (net of issuance costs of $422,941 and $428,699)
  4,826,451 
  7,918,872 
Reclamation liability
  16,853,436 
  16,211,640 
Total Other Liabilities
  21,679,887 
  24,130,512 
 
    
    
Total Liabilities
  55,040,233 
  50,563,534 
 
    
    
STOCKHOLDERS’ EQUITY (DEFICIT)
    
    
AREC - Class A Common stock: $.0001 par value; 230,000,000 shares authorized, 23,367,197 and 17,763,469 shares issued and outstanding
  2,337 
  1,776 
AREC - Series A Preferred stock: $.0001 par value; 5,000,000 shares authorized, 0 and 481,780 shares issued and outstanding
  - 
  48 
AREC - Series C Preferred stock: $.0001 par value; 20,000,000 shares authorized, 0 and 50,000 shares issued and outstanding
  - 
  5 
Additional paid-in capital
  86,367,056 
  42,913,532 
Accumulated deficit
  (75,641,410)
  (52,115,183)
Total Stockholders’ Equity (Deficit)
  10,727,983 
  (9,199,822)
 
    
    
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
 $65,768,216 
 $41,363,712 
 
 
 
 
Reconciliation of Non-GAAP Measures
 
Reconciliation of Adjusted EBITDA to Amounts Reported Under U.S. GAAP:
 
 
 
For the three months ended June 30, 2019
 
 
For the six months ended June 30, 2019
 
 
For the three months ended June 30, 2018
 
Net Income
  (8,961,042)
  (23,526,227)
  (1,733,902)
 
    
    
    
Interest & Other Expenses
  5,606,766 
  10,280,545 
  (294,314)
Income Tax Expense
  0 
  0 
  0 
Accretion Expense
  320,098 
  641,799 
  341,580 
Depreciation
  804,889 
  1,621,805 
  615,390 
Amortization of Mining Rights
  802,590 
  1,339,381 
  0 
Non-Cash Stock Options
  73,602 
  142,294 
  0 
Non-Cash Warrant Expense
  0 
  2,524,500 
    
Non-Cash Share Comp. Expense
  273,340 
  1,806,040 
  0 
Development Costs
  2,887,448 
  4,487,565 
  2,032,201 
 
    
    
    
Total Adjustments
  10,768,733 
  22,843,929 
  2,694,857 
 
    
    
    
Adjusted EBITDA
  1,807,691 
  (682,298)
  960,955 
 
(1)
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.
 
Use of Non-GAAP Financial Measures
 
This release contains the use of certain U.S. non-GAAP financial measures. These non-GAAP financial measures are provided as supplemental information for financial measures prepared in accordance with GAAP. Management believes that these non-GAAP financial measures provide additional insight into the performance of the Company, and reflect how management analyzes Company performance and compares that performance against other companies. These non-GAAP financial measures may not be comparable to other similarly titled measures used by other entities.
 
 
 
 
About American Resources Corporation
 
American Resources Corporation is a supplier of raw materials to the rapidly growing global infrastructure marketplace. The company’s primary focus is on the extraction, processing, transportation and selling of metallurgical coal and pulverized coal injection (PCI) to the steel industry. The company operations are based in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical products are located.
 
The company’s business model is based on running a streamlined and efficient operation to economically extract and deliver resources to meet its customers’ demands. By running operations with low or no legacy costs, American Resources Corporation works to maximize margins for its investors while being able to scale its operations to meet the growth of the global infrastructure market.
 
Website:
 
http://www.americanresourcescorp.com
 
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.
 
Institutional/Retail/Individual Contact:
 
American Capital Ventures
Howard Gostfrand, President
305-918-7000 – Office
hg@amcapventures.com
www.amcapventures.com
 
Company Contact:
Mark LaVerghetta
317-855-9926 ext. 0
Vice President of Corporate Finance and Communications
investor@americanresourcescorp.com
 
 
Source: American Resources Corporation