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LEASES

3 Months Ended

Mar. 31, 2025

NOTE 8 – LEASES

The Company leases an office from an affiliated entity, Land Resources & Royalties (“LRR”), located in Hazard, Kentucky. We pay $250 a month, plus common charges, in rent with an initial lease term of 10 years.

The Company subleases an office from an affiliated entity, American Resources Corporation (“ARC”), located in Fishers, Indiana. Historically we have paid $2,143 a month in rent, but starting January 2024 that rent was lowered to $1,500 per month, with an initial lease term of 10 years.

The Company leases land from an affiliated entity, LRR, located in Pike County, Kentucky. We pay $2,000 a month in rent with an initial lease term of 21 years.

The Company leases land from an affiliated entity, LRR, located in Hamilton County, Indiana. We pay a minimum of $2,000 a month in rent or 20% of the immediately prior month’s total monthly gross revenues from the lessee’s operations. The initial lease term is 5 years.

At March 31, 2025 and December 31, 2024, right of use assets and liabilities were comprised of the following:

	March 31, 2025			December 31, 2024
Assets:
ROU Assets	$	421,550		$	421,550
Accumulated Amortization		(73,898	)		(65,826	)
ROU Assets, Net		347,652			355,724

Liabilities
Current:
Operating Lease Liabilities	$	34,334			33,490
Non-Current
Operating Lease Liabilities		336,491		$	326,248

		For the Three Months Ended March 31,

	Expense Classification	2025		2024
Operating Lease Expenses:
Amortization of ROU Assets	General and Administrative	$	8,072	$	7,785
Accretion of Operating Lease Liabilities	General and Administrative		9,310		9,597
Total Operating Lease Expenses		$	17,382	$	17,382

Other information related to leases is as follows:	As of			As of
	March 31,			December 31,
	2025			2024
Weighted-Average Remaining Lease Term: Operating Leases (in Years)		3.06			3.02

Weighted-Average Discount Rate: Operating Leases		10.00	%		10.00	%

As of March 31, 2025, remaining maturities of lease liabilities were as follows:

Remainder of 2025	52,119
2026	69,492
2027	69,492
2028	45,492
2029	45,492
2029 and Thereafter	365,730
Total Lease Payments	647,817
Less Imputed Interest	(276,992	)
Present Value of Lease Liabilities	370,825