Note 1 - Organization and Description of Business

6 Months Ended

Jun. 30, 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 mining and selling its DRAGONITE

TM

and AMIRON

TM

products and is also 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

June 2017

the Company completed the sales of

$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 through

December 2020.

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

six

months quarter ended

June 30, 2017,

revenues from this customer accounted for

62.2%

of total revenues. As of

June 30, 2017,

amounts owed by this customer totaled

$0.