Note 1 - Organization and Description of Business

12 Months Ended

Dec. 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 selling its DRAGONITE halloysite clay product regularly to

four

(

4

) customers.  Several prospective customers are conducting either commercial-scale trials or field trials for an array of products that are expected to use DRAGONITE as a functional additive.

In

November, 2015,

the Company entered into an agreement to supply a customer its AMIRON iron oxide product, on an exclusive basis, for a period of

five

years. The exclusivity provision is limited to the specialized catalyst application of the Customer and enables Applied Minerals to sell its iron oxide products for use in other technical applications that are

not

competitive with the Customer's intended field of use. An initial purchase order of

$5.0

million of AMIRON products was obtained in

November, 2015.

By

June, 2017,

the Company had fulfilled the order. Upon expiration of the initial

5

-year term, the customer has an option to extend the exclusive supply agreement for an additional

5

years by issuing an

$8.0

million purchase order to be delivered over the course of the subsequent

twenty-four

(

24

) months. There is the possibility this customer

may

order additional AMIRON before the initial term of the agreement expires.

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.”

For the years ended

December 31, 2017

and

2016,

revenues from the Company’s largest customer accounted for

56%

and

88%

of total revenues, respectively. As of

December 31, 2017

and

2016,

amounts owed from this customer comprised

0%

and

90%

of accounts receivable, respectively.