Note 1 - Organization and Description of Business

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

NOTE

1

– ORGANIZATION AND DESCRIPTION OF BUSINESS

Applied Minerals, Inc. (the “Company”) is the owner of the Dragon Mine located in the Tintic Mining District of the State of Utah from where it produces halloysite clay and iron oxide. The Company is currently in various phases of commercial scale trials with several organizations in various markets with respect to uses of its products.

Applied Minerals, Inc. is a publicly traded company incorporated in the state of Delaware. The common stock trades on the OTC Bulletin Board under the symbol AMNL.

The Company is currently selling

one

of its products, AMIRON iron oxide, to

one

customer on an ongoing basis. That customer uses the AMIRON as a catalyst to adsorb a gas. The agreement with the customer calls for the sale of

$5.0

million of AMIRON over a period of

18

months, which commenced in

December

2015.

Through

March

2017

the Company sold approximately

$4.4

million of the

$5.0

million of AMIRON required by the agreement. The Company has agreed not to sell AMIRON to other customers for use in the same application for

five

years. The customer

may

elect to make another

$5.0

million purchase at the end of

five

years and extend the exclusivity for this application for a total of

ten

years. For the quarter ended

March

31,

2017

revenues from this customer accounted for

84%

of total revenues. As of

March

31,

2017

amounts owed from this customer comprised

61%

of accounts receivable.