Note 1 - Organization and Description of Business

9 Months Ended

Sep. 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 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. Since

December, 2015,

the great majority of the Company

’s revenue has been related to an

18

-month take-or-pay agreement for the sale of AMIRON. Additionally, the Company is currently in various phases of commercial scale trials involving its AMIRON® natural iron oxide and DRAGONITE® halloysite clay-based products for use in a number of markets.

Ap

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

Between

December, 2015

and

June 2017

the Company completed the sale of

$5.0

million of AMIRON t

o a customer as required by the terms of an exclusive, take-or-pay supply agreement entered into by the Company. The exclusivity of the agreement applied to the sale of AMIRON for a specific oilfield application. The customer

may

elect to make another

$5.0

million purchase at the end of

five

years (

December 2020)

and extend the exclusivity for this application for a total of

ten

years. For the

nine

months ended

September 30, 2017,

revenues from this customer accounted for

57.8%

of total revenues. As of

September 30, 2017,

amounts owed by this customer totaled

$0.

The remaining sales recognized during the

nine

months ended

September 30, 2017,

included the sale of DRAGONITE to a range of customers who used it in catalyst, molecular sieve, nucleation, paints and coatings and ceramic applications.