NATURAL GAS FUELING & CONVERSION: American Resources Corporation Reports Fourth Quarter And Full Year 2020 Financial Results And Provides Business Outlook

The following excerpt is from the company's SEC filing.

Well-positioned to be a long-term supplier of raw material and
critical elements to the modern-day infrastructure
market

Near-term catalysts expected to drive significant growth and
value

Balance sheet improvements provides financial strength and
flexibility to execute on its innovation and growth
plans

Company to host update conference call on Monday, March 15, 2021 at
8:30 AM ET

March 11, 2021 
Source
: American Resources
Corporation

FISHERS, INDIANA / ACCESSWIRE / March 11, 2021

American Resources
Corporation (NASDAQ:
)
(“American R esources” or the “Company”), a
next generation and socially responsible supplier of raw materials
to the new infrastructure and electrification marketplace, today
reported its fourth quarter of 2020 and full year ended December
31, 2020 financial results.

Mark Jensen, Chairman and CEO of American Resources Corporation
commented, “2020 marked the most transformational year to
date for American Resources as we demonstrated our ability to be
innovators and, what we believe to be, first movers in our industry
in order to catalyze our asset base. Our broad and dynamic platform
is positioned for near term inflection points and the beginning of
a new era to where we are positioned to provide the infrastructure
and electrification marketplaces the resources needed to advance to
a greener economy. Furthermore, the game changing technology we
have acquired enables us capture, process and purify critical and
rare earth elements in the most environmentally safe methods while
using feedstocks that do not require traditional mining-based
extraction while cleaning up environmental
issues.”

2020 Key Highlights
Announced
the launch of the Company’s wholly owned subsidiary, American
Rare Earth LLC (“ARE”), which is utilizing over 15
patents and technologies developed at 5 leading universities to
capture, process and purify critical and REE’s from coal
waste, coal byproducts, waste permanent magnets and waste
lithium-ion batteries. Additionally, the Company appointed Dr.
Gerardine Botte, the Whitacre Department Chair in Chemical
Engineering at Texas Tech University to its Board of Directors as
an independent director to help guide and assist the Company and
ARE to meet the needs of the green infrastructure
market.
Raised
$13 million in October 2020 through issuing 5.2 million Class A
common shares to secure additional cash liquidity to execute its
innovation and growth initiatives.
Further advanced the Company’s ESG efforts
through various initiatives that have redefined the legacy mining
industry including: the launch of American Metals that has worked
in conjunction with the Company’s environmental efforts to
shut down and cleanup irrational thermal coal mining sites and
decommissioned railcars to be processed and recycled;
received
a prestigious Sentinels of Safety Award from the
National Mining Association in recognition of its outstanding
safety performance
while also
establishing the foundation for over 300 sustainable jobs within
its operating region; and innovated its rare earth division to
benefit the environment creating a process chain to minimize
mining-based extraction, reduce, reuse and recycle waste material
for their REE chemical composition; bring economic diversification
to a distress region of the nation and help restore the REE supply
chain of the United States.
Improved
the Company’s balance sheet and capital structure through the
payoff and / or conversion into equity of approximately $8.9
million of outstanding debt as of the end of 2020 and have
subsequently paid off and / or converted into equity approximately
an additional $10.01 million of debt throughout the first two
months of 2021. Additionally, the Company realized the exercise of
approximately 2.1 million outstanding cash warrants during the
fourth quarter of 2020 and a subsequent exercise of approximately
1.4 million cash warrants during the first two months of
2021.
“Looking
forward to the remainder of 2021 and beyond, we have never been
more excited about the opportunities that lie ahead of us
throughout all of our operating divisions. First and foremost, we
see a tremendous opportunity for American Rare Earth to innovate
and redefine how REEs can be supplied to the electrification, green
infrastructure, technology and defense industries from domestic
sources in an environmentally positive way. American Carbon, with
one of the largest metallurgical carbon growth platforms in the
industry, is set to scale its operation throughout this year and
beyond to supply the steel and alloy metals industry with the
necessary resources to support worldwide infrastructure demand. We
remain comfortable with our previously stated guidance of $55
million to $75 million in revenues for 2021 as a whole,”
continued Mr. Jensen. “An additional value-driving milestone
was the Company’s sponsorship of American Acquisition
Opportunity Inc., a specialty purpose acquisition company, will
enable American Resources and its shareholders to benefit from the
merger, innovation, synergies, and opportunities presented through
this entity and allows for a broader scope of acquisition targets
that may not directly fit within American Resources. Lastly, the
improvements to our balance sheet and capital structure provide us
with the financial strength and flexibility to execute on our
exciting strategic growth plans, and we are confident that
collectively we have the
assets,
technology processes, structure and team in place to
execute.”

Conference Call Information

American Resources management will host a conference call for
investors, analysts and other interested parties on Monday, March
15, 2021 at 8:30 AM ET.

To participate in the call, please dial (877) 407-4019 and
reference the American Resources Conference Call, or click
for the “Call
Me” option.

Financial Results for Fourth Quarter and Year-End December 31,
2020

For the full year of 2020, American Resources reported a net income
loss of $10.26 million or a loss of $0.35 per share for the twelve
months ended December 31, 2020, as compared with a net income loss
$70.9 million or loss of $2.94 per share for the full year of 2019.
The Company earned adjusted earnings before interest, taxes,
depreciation, amortization, accretion on asset retirement
obligations, non-operating expenses, non-cash impairment and
development costs (‘adjusted EBITDA”) of $2.77 million
for the year ended December 31, 2020, as compared with an adjusted
EBITDA loss of $6.61 million in 2019.

For the fourth quarter of 2020, American Resources reported a net
income loss of $9.1 million, or a loss of $0.25 per share, as
compared with a net income loss of $40.0 million, or a loss of
$1.66 per share, in the prior year period. The Company earned an
adjusted EBITDA loss of $2.0 million in the fourth quarter of 2020,
as compared with an adjusted EBITDA loss of $3.2 million for the
fourth quarter of 2019.

Fourth Quarter 2020 Summary
Total
revenues were $13,875 for the fourth quarter of 2020 compared to
revenues of $6.3 million during the fourth quarter of 2019. General
and administrative expenses for the fourth quarter of 2020 were
$826,890 compared to $1.3 million in the prior year period.
American Resources incurred interest expense of $1.5 million during
the fourth quarter of 2020 compared to $1.2 million during the
fourth quarter of 2019. Development costs during the quarter were
$2.8 million, compared to $792,926 in the third quarter of
2020.

Full Year 2020 Summary
Full
year 2020 revenues were $1,059,691 compared to full year 2019
revenues of $24.4 million. As previously stated the Company’s
mining operations were idled for the year due to the disruptions
related to global COVID-19 pandemic. The Company refocused its
effort over the course of 2020 to reposition its asset base to
broaden its scope with the launch of American Metals and American
Rare Earth, while positioning American Carbon to better benefit as
global markets are now rebounding and normalizing.
The
Company did not incur any income tax expense in 2020 as it was able
to utilize its available net operating losses (“NOL”)
carried forward from prior periods of approximately $17.8 million
as of December 31, 2020.

AMERICAN RESOURCES CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS
Years ended
December 31,
Coal
Sales
524,334
24,456,831
Processing Services
Income
20,876
Metal Recovery and
Sales
535,357
Total
Revenue
24,477,707
Cost of Coal Sales
and Processing
(3,749,519
(26,086,814
Accretion
Expense
(1,287,496
(1,482,349
Gain on purchase
and disposal of asset, respectively
394,484
Depreciation
(2,298,703
(4,588,136
Amortization of
mining rights
(1,251,357
(1,657,673
General and
Administrative
(2,486,799
(5,113,688
Professional
Fees
(1,076,548
(6,750,848
Production Taxes
and Royalties
(1,357,749
(4,222,175
Impairment of Fixed
Assets
(27,688,030
Development
Costs
(3,998,885
(7,236,652
Total Expenses from
Operations
(17,507,056
(84,431,881
Net Loss from
Operations
(16,447,365
(59,954,174
Other
Income
20,538
2,072,861
(Loss)/Gain on
settlement of note payable and accounts payable
(22,660
Gain on Interest
Forgiven
832,500
Gain on
Depreciation Recapture
1,706,569
Gain on Sale of
Stock
6,820,949
Amortization of
debt discount and debt issuance costs
(11,516
(7,725,076
Interest
Income
205,857
164,686
Warrant
modification expense
(2,545,360
Interest
expense
(3,383,294
(2,908,579
Net
Loss
(10,255,762
(70,918,302
Less: Net income
attributable to Non Controlling Interest
Net loss
attributable to American Resources Corporation
Shareholders
Net loss per share
- basic and diluted
Weighted average
shares outstanding
29,359,993
24,094,420
AMERICAN RESOURCES
CORPORATION

CONSOLIDATED BALANCE SHEETS
ASSETS
CURRENT
ASSETS
10,617,495
Accounts
Receivable
38,650
2,424,905
Inventory
150,504
515,630
Prepaid
175,000
Accounts Receivable
- Other
234,240
Total Current
Assets
11,215,889
3,178,099
OTHER
ASSETS
Cash -
restricted
583,708
265,487
Processing and rail
facility
11,591,273
12,723,163
Underground
equipment
6,838,417
8,294,188
Surface
equipment
2,527,576
3,224,896
Mine
development
561,575
669,860
Coal Refuse
Storage
12,134,192
12,171,271
Less Accumulated
Depreciation
(12,726,809
(11,162,622
1,572,435
1,748,169
Note
Receivable
4,117,139
Total Other
Assets
27,199,506
32,051,551
TOTAL
ASSETS
38,415,395
35,229,650
LIABILITIES
AND STOCKHOLDERS' DEFICIT
CURRENT
LIABILITIES
Accounts
payable
4,288,794
11,044,479
Non-Trade
Payables
3,850,781
Accounts payable -
related party
679,146
718,156
Accrued
interest
1,043,519
2,869,763
Funds held for
others
Due to
affiliate
74,000
132,639
Current portion of
notes payables (net of unamortized discount of $0 and
$134,296)
10,997,692
20,494,589
Convertible note
payables
7,419,612
Current portion of
reclamation liability
2,327,169
Total Current
Liabilities
23,261,101
45,006,407
OTHER
LIABILITIES
Long-term portion
of note payable (net of issuance costs $405,667 and
$428,699)
5,330,752
5,415,271
Long-term portion
of convertible note payable (net of unamortized discount of $0 and
$0)
14,300,907
Reclamation
liability
15,528,135
17,512,613
Total Other
Liabilities
35,159,794
22,927,884
Total
Liabilities
58,420,895
67,934,291
STOCKHOLDERS'
DEFICIT
AREC - Class A
Common stock: $.0001 par value; 230,000,000 shares
authorized,
40,522,762 and 27,410,512 shares issued and outstanding for the
period end
AREC - Series A
Preferred stock: $.0001 par value; 100,000 shares authorized, nil
and nil shares issued and outstanding
AREC - Series B
Preferred stock: $.001 par value; 20,000,000 shares authorized, nil
and nil shares issued and outstanding, respectively
AREC - Series C
Preferred stock: $.001 par value; 20,000,000 shares authorized, nil
and nil shares issued and outstanding
Additional paid-in
capital
113,279,448
90,326,104
Accumulated
deficit
(133,289,247
(123,033,485
Total Stockholders'
Deficit
(20,005,500
(32,704,641
TOTAL
LIABILITIES AND STOCKHOLDERS' DEFICIT

CONSOLIDATED STATEMENTS OF CASH FLOWS
Cash
Flows from Operating activities:
Net
loss
Adjustments
to reconcile net income (loss) to net cash
1,855,236
939,672
Accretion
expense
Liabilities reduced
due to sale of assets
(3,271,974
Forgiveness of
debt
Gain on purchase of
assets
(394,484
Impairment
loss
Amortization of
debt discount and issuance costs
Recovery of
advances receivable
(177,686
Warrant
expense
2,524,500
Issuance of common
shares for services
18,800
1,906,253
Issuance of
warrants in conjunction with convertible notes
1,223,700
Loss on settlement
of accounts payable with common shares
642,060
Return of common
shares for property sale
(1,840,200
Stock compensation
expense
230,050
377,255
Change
in current assets and liabilities:
Accounts
receivable
2,386,255
(1,000,917
Prepaid expenses
and other assets
(175,000
147,826
365,126
(351,830
(4,301,976
1,164,080
Account payable
related party
(97,649
243,502
(79,662
(1,826,244
1,643,075
Cash used in
operating activities
(13,847,255
(19,207,106
Cash
Flows from Investing activities:
Advances made in
connection with management agreement
Advance repayment
in connection with management agreement
Cash received
(paid) for PPE, net
417,857
(327,250
Cash received from
acquisitions
650,000
Cash provided by
investing activities
322,750
Cash
Flows from Financing activities:
Principal payments
on long term debt
(1,103,191
(2,059,484
Proceeds from long
term debt (net of issuance costs $0 and $0)
28,000
8,660,527
Proceeds from
convertible debt
14,411,949
599,980
Proceeds from
related party
(9,861
Net (payments)
proceeds from factoring agreement
(1,807,443
1,489,508
Sale of common
stock for cash
12,832,475
7,767,698
Proceeds series C
preferred stock
Cash provided by
financing activities
24,361,790
16,448,368
Increase (decrease)
in cash
10,932,392
(2,435,988
Cash, beginning of
year
268,811
2,704,799
Cash,
end of year
11,201,203
Supplemental
Information
Assumption of net
assets and liabilities for asset acquisitions
6,623,999
Shares issues in
asset acquisition
24,400,000
Discount on note
due to beneficial conversion feature
7,362,925
Conversion of note
payable to common stock
231,661
Issuance of shares
as part of note payable consideration
297,831
Conversion of
Preferred Series A Shares to common shares
Conversion of
Preferred Series C Shares to common shares
Return of shares
related to employee settlement
Warrant exercise
for common shares
Cash paid for
interest
327,239
557,663
Cash paid for
income tax

Reconciliation of Non-GAAP Measures
Reconciliation
of Adjusted EBITDA to Amounts Reported Under U.S. GAAP
For the
three months ended Dec. 31, 2020
For the
twelve months ended Dec. 31, 2020
For the
three months ended Dec. 31, 2019
For the
twelve months ended Dec. 31, 2019
Net
Income
(9,097,560
(40,047,544
Interest
& Other Expenses
1,233,926
Income
Tax Expense
305,636
519,650
443,467
1,551,389
Amortization
of Mining Rights
311,685
65,563
Amortization
of Debt Discount & Issuance
670,601
Non-Cash
Stock & Option Comp. Expense
115,026
345,076
131,869
2,283,478
Non-Cash
Warrant Expense
5,069,860
2,770,552
1,324,063
Non-Cash
Impairment
PCR
Restructuring Expenses
225,269
452,743
3,669,164
Total
Adjustments
7,083,093
13,029,070
36,854,255
64,308,997
Adjusted
EBITDA
(2,014,467
2,773,308
(3,193,289
(6,609,305
Adjusted EBITDA is
defined as net income before net interest expense, income tax
expense, accretion expense, depreciation, non-cash stock
compensation expense, transaction and other professional fees, and
development costs. Adjusted EBITDA is not a measure of financial
performance in accordance with GAAP, and we believe items excluded
from Adjusted EBITDA are significant to a reader in understanding
and assessing our financial condition. Therefore, Adjusted EBITDA
should not be considered in isolation, nor as an alternative to net
income, income from operations, cash flow from operations or as a
measure of our profitability, liquidity, or performance under GAAP.
We believe that Adjusted EBITDA presents a useful measure of our
ability to incur and service debt based on ongoing operations.
Furthermore, similar measures are used by analysts to evaluate our
operating performance. Investors should be aware that our
presentation of Adjusted EBITDA may not be comparable to similarly
titled measures used by others.

Use of Non-GAAP Financial Measures
This
release contains the use of certain U.S. non-GAAP financial
measures. These non-GAAP financial measures are provided as
supplemental information for financial measures prepared in
accordance with GAAP. Management believes that these non-GAAP
financial measures provide additional insight into the performance
of the Company, and reflect how management analyzes Company
performance and compares that performance against other companies.
These non-GAAP financial measures may not be comparable to other
similarly titled measures used by other entities.

About American Resources Corporation

American Resources Corporation is a next-generation,
environmentally and socially responsible supplier of high-quality
raw materials to the new infrastructure market. The Company is
focused on the extraction and processing of metallurgical carbon,
an essential ingredient used in steelmaking, critical and rare
earth minerals for the electrification market, and reprocessed
metal to be recycled. American Resources has a growing portfolio of
operations located in the Central Appalachian basin of eastern
Kentucky and southern West Virginia where premium quality
metallurgical carbon and rare earth mineral deposits are
concentrated.

American Resources has established a nimble, low-cost business
model centered on growth, which provides a significant opportunity
to scale its portfolio of assets to meet the growing global
infrastructure and electrification markets while also continuing to
acquire operations and significantly reduce their legacy industry
risks. Its streamlined and efficient operations are able to
maximize margins while reducing costs. For more information
visit

americanresourcescorp.com
or connect with the Company on

Facebook

Twitter

LinkedIn

Special Note Regarding Forward-Looking Statements
This
press release contains “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements involve known and unknown
risks, uncertainties, and other important factors that could cause
the Company’s actual results, performance, or achievements or
industry results to differ materially from any future results,
performance, or achievements expressed or implied by these
forward-looking statements. These statements are subject to a
number of risks and uncertainties, many of which are beyond
American Resources Corporation’s control. The words
“believes”, “may”, “will”,
“should”, “would”, “could”,
“continue”, “seeks”,
“anticipates”, “plans”,
“expects”, “intends”,
“estimates”, or similar expressions are intended to
identify forward-looking statements, although not all
forward-looking statements contain such identifying words. Any
forward-looking statements included in this press release are made
only as of the date of this release. The Company does not undertake
any obligation to update or supplement any forward-looking
statements to reflect subsequent events or circumstances. The
Company cannot assure you that the projected results or events will
be achieved.

PR Contact
Precision
Public Relations
Matt
Sheldon
917-280-7329

matt@precisionpr.co

Investor Contact:
JTC
Team, LLC
Jenene
Thomas
833-475-8247

arec@jtcir.com
RedChip
Companies Inc.
Todd
McKnight
1-800-RED-CHIP
(733-2447)

Info@redchip.com

Company Contact:
Mark
LaVerghetta
Vice
President of Corporate Finance and Communications
317-855-9926
ext. 0

investor@americanresourcescorp.com

The above information was disclosed in a filing to the SEC. To see the filing, click here.

To receive a free e-mail notification whenever NATURAL GAS FUELING & CONVERSION INC.. makes a similar move, sign up!

Other recent filings from the company include the following:

NATURAL GAS FUELING & CONVERSION: American Resources Corporation Expands Carbon Production With The Restart Of Its Mccoy Elkhorn Complex And Secures Initial Sales Contracts - Oct. 8, 2021
NATURAL GAS FUELING & CONVERSION: Press Release Dated October 4, 2021 - Oct. 5, 2021

Auto Refresh

Feedback