Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 15, 2018 | |
Document and Entity Information: | ||
Entity Registrant Name | American Resources Corporation | |
Entity Central Index Key | 1,590,715 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 892,044 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS | ||
Cash | $ 9,006 | $ 186,722 |
Accounts Receivable | 2,269,609 | 1,870,562 |
Inventory | 317,122 | 615,096 |
Prepaid fees | 443,482 | |
Accounts Receivable - Other | 29,259 | 30,021 |
Total Current Assets | 3,068,478 | 2,702,401 |
OTHER ASSETS | ||
Cash - restricted | 85,786 | 198,943 |
Processing and rail facility | 2,914,422 | 2,914,422 |
Underground equipment | 8,887,045 | 8,887,045 |
Surface equipment | 4,439,263 | 3,957,603 |
Less Accumulated Depreciation | (5,300,140) | (4,820,569) |
Land | 178,683 | 178,683 |
Accounts Receivable - Other | 111,003 | 127,718 |
Note Receivable | 4,117,139 | 4,117,139 |
Total Other Assets | 15,433,201 | 15,560,984 |
TOTAL ASSETS | 18,501,679 | 18,263,385 |
CURRENT LIABILITIES | ||
Accounts payable | 6,407,660 | 5,360,537 |
Accrued related party management fee | 17,840,615 | 17,840,615 |
Accrued interest | 461,333 | 336,570 |
Accrued dividend on Series B | 70,157 | |
Funds held for others | 12,056 | 82,828 |
Due to affiliate | 124,000 | 124,000 |
Current portion of long term-debt | 10,164,219 | 9,645,154 |
Current portion of Reclamation liability | 2,379,352 | 2,033,862 |
Total Current Liabilities | 37,459,392 | 35,423,566 |
OTHER LIABILITIES | ||
Long-term portion of note payable (net of issuance costs of $437,335 and $440,333) | 5,782,253 | 5,081,688 |
Reclamation liability | 17,964,267 | 17,851,195 |
Total Other Liabilities | 23,746,520 | 22,932,883 |
Total Liabilities | 61,205,912 | 58,356,449 |
STOCKHOLDERS' DEFICIT | ||
Additional paid-in capital | 1,527,254 | 1,527,254 |
Accumulated deficit | (44,759,278) | (42,019,595) |
Total American Resources Corporation's Shareholders' Equity | (43,230,603) | (40,490,920) |
Non controlling interest | 526,370 | 397,856 |
Total Stockholders' Deficit | (42,704,233) | (40,093,064) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | 18,501,679 | 18,263,385 |
Common Class A [Member] | ||
STOCKHOLDERS' DEFICIT | ||
Common stock, value | 89 | 89 |
Series A Preferred Stock [Member] | ||
STOCKHOLDERS' DEFICIT | ||
Preferred stock, value | 482 | 482 |
Series B Preferred Stock [Member] | ||
STOCKHOLDERS' DEFICIT | ||
Preferred stock, value | $ 850 | $ 850 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
OTHER LIABILITIES | ||
Long-term portion of note payable net of issuance costs | $ 437,335 | $ 440,333 |
Common Class A [Member] | ||
STOCKHOLDERS' DEFICIT | ||
Common Stock, Par Value | $ .0001 | $ .0001 |
Common Stock, Shares Authorized | 230,000,000 | 230,000,000 |
Common Stock, Shares Issued | 892,044 | 892,044 |
Common Stock, Shares Outstanding | 892,044 | 892,044 |
Series A Preferred Stock [Member] | ||
STOCKHOLDERS' DEFICIT | ||
Preferred Stock, Par Value | $ .0001 | $ .0001 |
Preferred Stock, Shares Authorized | 4,817,792 | 4,817,792 |
Preferred Stock, Shares Issued | 4,817,792 | 4,817,792 |
Preferred Stock, Shares Outstanding | 4,817,792 | 4,817,792 |
Series B Preferred Stock [Member] | ||
STOCKHOLDERS' DEFICIT | ||
Preferred Stock, Par Value | $ .001 | $ .001 |
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Preferred Stock, Shares Issued | 850,000 | 850,000 |
Preferred Stock, Shares Outstanding | 850,000 | 850,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Consolidated Statements Of Operations | ||
Coal Sales | $ 7,305,860 | $ 5,718,098 |
Processing Services Income | 19,516 | 893,983 |
Total Revenue | 7,325,376 | 6,612,081 |
Cost of Coal Sales and Processing | (5,473,428) | (4,563,561) |
Accretion Expense | (447,762) | (328,061) |
Loss of ARO Settlement | (155,922) | |
Depreciation | (479,571) | (459,644) |
General and Administrative | (476,589) | (419,196) |
Professional Fees | (274,603) | (307,307) |
Production Taxes and Royalties | (949,793) | (1,672,240) |
Development Costs | (1,687,173) | (1,795,205) |
Total Operating expenses | (9,788,919) | (9,701,136) |
Net Loss from Operations | (2,463,543) | (3,089,055) |
Other Income and (expense) | ||
Other Income | 128,514 | 176,978 |
Interest Income | 41,171 | |
Interest expense | (247,154) | (128,533) |
Total Other income (expense) | (77,469) | 48,445 |
Net Loss | (2,541,012) | (3,040,610) |
Less: Series B dividend requirement | (70,157) | |
Less: Net income attributable to Non Controlling Interest | (128,514) | (176,978) |
Net loss attributable to American Resources Corp. Shareholders | $ (2,739,683) | $ (3,217,588) |
Net loss per common share - basic and diluted | $ (2.93) | $ (3.60) |
Weighted average common shares outstanding- basic and diluted | 892,044 | 845,427 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash Flows from Operating activities: | ||
Net loss | $ (2,541,012) | $ (3,040,610) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 479,571 | 459,644 |
Accretion expense | 447,762 | 328,061 |
Loss on reclamation settlements | 155,922 | |
Assumption of note payable in reverse merger | 50,000 | |
Amortization of issuance costs and debt discount | 37,841 | 52,841 |
Recovery of previously impaired receivable | (50,806) | |
Change in current assets and liabilities: | ||
Accounts receivable | (399,047) | 1,325,463 |
Prepaid expenses and other assets | (443,482) | 40,000 |
Inventory | 297,974 | |
Accounts payable | 1,057,923 | 925,483 |
Funds held for others | (70,772) | |
Accrued interest | 124,763 | 30,000 |
Reclamation liability settlements | (355,785) | |
Cash used in operating activities | (1,059,285) | (28,981) |
Cash Flows from Investing activities: | ||
Advances made in connection with management agreement | (7,000) | (40,000) |
Advance repayment in connection with management agreement | 79,219 | 75,000 |
Cash paid for PPE, net | (34,787) | |
Cash provided by investing activities | 72,219 | 213 |
Cash Flows from Financing activities: | ||
Principal payments on long term debt | (191,517) | (4,893) |
Proceeds from long term debt | 1,000,000 | |
Payments on factoring agreement, net | (112,290) | (415,204) |
Proceeds from sale of series B preferred equity | 500,000 | |
Cash provided by financing activities | 696,193 | 79,903 |
Increase (decrease) in cash and restricted cash | (290,873) | 51,135 |
Cash and restricted cash, beginning of period | 385,665 | 925,627 |
Cash and restricted cash, end of period | 94,792 | 976,762 |
Non-cash investing and financing activities | ||
Equipment for notes payable | 481,660 | |
Preferred Series B Dividends | 70,157 | |
Conversion of note payable to common stock | 50,000 | |
Beneficial conversion feature on note payable | 50,000 | |
Cash paid for interest | 66,672 | 45,692 |
Cash paid for income taxes |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | American Resources Corporation (ARC or the Company) was formed in June 2015 for the purpose of acquiring, rehabilitating and operating various natural resource assets including coal, oil and natural gas. Basis of Presentation and Consolidation: The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries Quest Energy Inc, (QEI), Deane Mining, LLC (Deane), Quest Processing LLC (Quest Processing), ERC Mining Indiana Corp (ERC), McCoy Elkhorn Coal LLC (McCoy) and Knott County Coal LLC (KCC). All significant intercompany accounts and transactions have been eliminated. The accompanying Consolidated Financial Statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP). Interim Financial Information Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been omitted. In the opinion of management, these interim unaudited Consolidated Financial Statements reflect all normal and recurring adjustments necessary for a fair presentation of the results for the periods presented. Results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 or any other period. These financial statements should be read in conjunction with the Companys 2017 audited financial statements and notes thereto which were filed on form 10K on April 23, 2018. Going Concern: Convertible Preferred Securities: Derivatives and Hedging Activities We also follow ASC 480-10, Distinguishing Liabilities from Equity Cash Restricted cash: The following table sets forth a reconciliation of cash, cash equivalents, and restricted cash reported in the consolidated balance sheet that agrees to the total of those amounts as presented in the consolidated statement of cash flows for the three months ended March 31, 2018 and March 31, 2017. March 31, 2018 March 31, 2017 Cash $ 9,006 $ 756,160 Restricted Cash 85,786 220,602 Total cash and restricted cash presented in the consolidated statement of cash flows $ 94,792 $ 976,762 Asset Retirement Obligations (ARO) Reclamation: Obligations are reflected at the present value of their future cash flows. We reflect accretion of the obligations for the period from the date they incurred through the date they are extinguished. The asset retirement obligation assets are amortized using the units-of-production method over estimated recoverable (proved and probable) reserves. We are using a discount rate of 10%. Federal and State laws require that mines be reclaimed in accordance with specific standards and approved reclamation plans, as outlined in mining permits. Activities include reclamation of pit and support acreage at surface mines, sealing portals at underground mines, and reclamation of refuse areas and slurry ponds. We assess our ARO at least annually and reflect revisions for permit changes, change in our estimated reclamation costs and changes in the estimated timing of such costs. During the period ending March 31, 2018 and 2017, $- and $155,922 were incurred for loss on settlement on ARO, respectively. The table below reflects the changes to our ARO: Balance at December 31, 2017 $ 19,885,057 Accretion 3 months March 31, 2018 447,762 Reclamation work 3 months March 31, 2018 - Balance at March 31, 2018 $ 20,343,619 Allowance For Doubtful Accounts: Allowance for trade receivables as of March 31, 2018 and December 31, 2017 amounted to $0, for both periods. Allowance for other accounts receivables as of March 31, 2018 and December 31, 2017 amounted to $0 and $92,573, respectively. Trade and loan receivables are carried at amortized cost, net of allowance for losses. Amortized cost approximated book value as of March 31, 2018 and December 31, 2017. Reclassifications: New Accounting Pronouncements: - Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers - ASU 2015-11, Simplifying the Measurement of Inventory - ASU 2015-17, Balance Sheet Classification of Deferred Taxes - ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities - ASU 2016-02, Leases - ASU 2016-18, Statement of Cash Flows: Restricted Cash, - ASU 2017-01, Business Combinations, - ASU 2017-09, Compensation Stock Compensation, - ASU 2017-11, Earnings Per Share, - ASU 2018-05, Income Taxes, Management has elected to early adopt ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business ASU 2016-18, Statement of Cash Flows: Restricted Cash (Topic 230). ASU 2014-09, Revenue from Contracts with Customers (Topic 606). |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
NOTE 2 - PROPERTY AND EQUIPMENT | At March 31, 2018 and December 31, 2017, property and equipment were comprised of the following: March 31, 2018 December 31, 2017 Processing and rail facility $ 2,914,422 $ 2,914,422 Underground equipment 8,887,045 8,887,045 Surface equipment 4,439,263 3,957,603 Land 178,683 178,683 Less: Accumulated depreciation (5,300,140 ) (4,820,569 ) Total Property and Equipment, Net $ 11,119,273 $ 11,117,184 Depreciation expense amounted to $479,571 and $459,644 for the periods March 31, 2018 and March 31, 2017, respectively. The estimated useful lives are as follows: Processing and Rail Facilities 20 years Surface Equipment 7 years Underground Equipment 5 years |
NOTES PAYABLE
NOTES PAYABLE | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
NOTE 3 - NOTES PAYABLE | During the three month period ended March 31, 2018 and 2017, principal payments on long term debt totaled $191,517 and $4,893 respectively. During the three-month period ended March 31, 2018 and 2017, increases to long term debt totaled $1,481,660 and $0, respectively, primarily $1,000,000 from the ARC business loan and $481,660 from equipment financings. The ARC business loan carries annual interest at 7%, is due within two months of advancement and is secure by all company assets. The equipment loan totaling $346,660 carries annual interest at 9%, is due in 24 months and is secured by the equipment. The equipment loan totaling $135,000 carries annual interest at 0%, was due one month after advancement, has been paid in full on May 2, 2018 and was secured by the equipment. During the three-month period ended March 31, 2018 and 2017, proceeds from the factoring agreement totaled $6,714,836 and $2,039,226, respectively and repayments according to the factoring agreement totaled $6,827,126 and $2,454,430, respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
NOTE 4 - RELATED PARTY TRANSACTIONS | On June 12, 2015, the Company executed a consulting agreement with an entity with common ownership. During the three months ended March 31, 2018 and March 31, 2017, the Company incurred fees totaling $0 relating to services rendered under this agreement, respectively. The amount outstanding and payable as of March 31, 2018 and December 31, 2017, was $17,840,615 and $17,840,615, respectively. The amount is due on demand and does not accrue interest. |
MANAGEMENT AGREEMENT
MANAGEMENT AGREEMENT | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
NOTE 5 - MANAGEMENT AGREEMENT | On April 13, 2015, ERC entered into a mining and management agreement with an unrelated entity, to operate a coal mining and processing facility in Jasonville, Indiana. Under the management agreement funds advanced for the three-month period ended March 31, 2018 and 2017are $7,000 and $40,000, respectively and the amounts repaid totaled $79,219 and $75,000, respectively. |
EQUITY TRANSACTIONS
EQUITY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
NOTE 6 - EQUITY TRANSACTIONS | There were no common or other series A preferred transactions for the three-month period ending 2018. Total preferred dividend requirement for the three month period ending March 31, 2018 and 2017 amounted to $70,157 and $0, respectively. |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
NOTE 7 - CONTINGENCIES | In the course of normal operations, the Company is involved in various claims and litigation that management intends to defend. The range of loss, if any, from potential claims cannot be reasonably estimated. However, management believes the ultimate resolution of matters will not have a material adverse impact on the Companys business or financial position. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
NOTE 8 - SUBSEQUENT EVENTS | Loans During April 2018, the company drew an additional $300,000 on the ARC business loan. During May 2018, the company entered into a sale leaseback arrangement with an unrelated party to acquire new equipment. The transaction was accounted for as a financing transaction resulting in a note payable of $1,000,000 being recorded with a maturity date of September, 2018. Acquisitions On April 21, 2018, McCoy acquired two permits and entered into a surface lease and a mineral sub-lease from unrelated entities. Consideration for the acquired permits was the assumption of reclamation bonds totaling $1,036,200 and vendor payables totaling $53,771. The transaction is accounted for as an asset purchase under ASU 2017-01. Management is still gathering the information needed to complete the allocation of the purchase price to the assets acquired and liabilities assumed. On May 10, 2018, Knott County acquired a mining permit from an unrelated party. Consideration for the acquired permits was the assumption of reclamation bonds totaling $75,000 and the payment of $1.50 per ton royalty of coal sold. The transaction is accounted for as an asset purchase under ASU 2017-01. Management is still gathering the information needed to complete the allocation of the purchase price to the assets acquired and liabilities assumed. |
SUMMARY OF SIGNIFICANT ACCOUN14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Summary Of Significant Accounting Policies Policies | |
Basis of Presentation and Consolidation | The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries Quest Energy Inc, (QEI), Deane Mining, LLC (Deane), Quest Processing LLC (Quest Processing), ERC Mining Indiana Corp (ERC), McCoy Elkhorn Coal LLC (McCoy) and Knott County Coal LLC (KCC). All significant intercompany accounts and transactions have been eliminated. The accompanying Consolidated Financial Statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP). |
Interim Financial Information | Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been omitted. In the opinion of management, these interim unaudited Consolidated Financial Statements reflect all normal and recurring adjustments necessary for a fair presentation of the results for the periods presented. Results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 or any other period. These financial statements should be read in conjunction with the Companys 2017 audited financial statements and notes thereto which were filed on form 10K on April 23, 2018. |
Going Concern | The Company has suffered recurring losses from operations and currently a working capital deficit. These conditions raise substantial doubt about the Companys ability to continue as a going concern. We plan to generate profits by expanding current coal operations as well as developing new coal operations. However, we will need to raise the funds required to do so through sale of our securities or through loans from third parties. We do not have any commitments or arrangements from any person to provide us with any additional capital. If additional financing is not available when needed, we may need to cease operations. We may not be successful in raising the capital needed to expand or develop operations. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern. The accompanying financial statements have been prepared assuming the Company will continue as a going concern; no adjustments to the financial statements have been made to account for this uncertainty. |
Convertible Preferred Securities | We account for hybrid contracts that feature conversion options in accordance with generally accepted accounting principles in the United States. ASC 815, Derivatives and Hedging Activities We also follow ASC 480-10, Distinguishing Liabilities from Equity |
Cash | Cash is maintained in bank deposit accounts which, at times, may exceed federally insured limits. To date, there have been no losses in such accounts. |
Restricted cash | As part of the Kentucky New Markets Development Program (See Note 3) an asset management fee reserve was set up in the amount of $116,115. The funds are held to pay annual asset management fees to an unrelated party through 2021. The balance as of March 31, 2018 and December 31, 2017 was $85,786 and $198,943, respectively. The total balance of restricted cash also includes amounts held under the management agreement. See note 6. The following table sets forth a reconciliation of cash, cash equivalents, and restricted cash reported in the consolidated balance sheet that agrees to the total of those amounts as presented in the consolidated statement of cash flows for the three months ended March 31, 2018 and March 31, 2017. March 31, 2018 March 31, 2017 Cash $ 9,006 $ 756,160 Restricted Cash 85,786 220,602 Total cash and restricted cash presented in the consolidated statement of cash flows $ 94,792 $ 976,762 |
Asset Retirement Obligations (ARO) - Reclamation | At the time they are incurred, legal obligations associated with the retirement of long-lived assets are reflected at their estimated fair value, with a corresponding charge to mine development. Obligations are typically incurred when we commence development of underground and surface mines, and include reclamation of support facilities, refuse areas and slurry ponds or through acquisitions. Obligations are reflected at the present value of their future cash flows. We reflect accretion of the obligations for the period from the date they incurred through the date they are extinguished. The asset retirement obligation assets are amortized using the units-of-production method over estimated recoverable (proved and probable) reserves. We are using a discount rate of 10%. Federal and State laws require that mines be reclaimed in accordance with specific standards and approved reclamation plans, as outlined in mining permits. Activities include reclamation of pit and support acreage at surface mines, sealing portals at underground mines, and reclamation of refuse areas and slurry ponds. We assess our ARO at least annually and reflect revisions for permit changes, change in our estimated reclamation costs and changes in the estimated timing of such costs. During the period ending March 31, 2018 and 2017, $- and $155,922 were incurred for loss on settlement on ARO, respectively. The table below reflects the changes to our ARO: Balance at December 31, 2017 $ 19,885,057 Accretion 3 months March 31, 2018 447,762 Reclamation work 3 months March 31, 2018 - Balance at March 31, 2018 $ 20,343,619 |
Allowance For Doubtful Accounts | The Company recognizes an allowance for losses on trade and other accounts receivable in an amount equal to the estimated probable losses net of recoveries. The allowance is based on an analysis of historical bad debt experience, current receivables aging and expected future write-offs, as well as an assessment of specific identifiable amounts considered at risk or uncollectible. Allowance for trade receivables as of March 31, 2018 and December 31, 2017 amounted to $0, for both periods. Allowance for other accounts receivables as of March 31, 2018 and December 31, 2017 amounted to $0 and $92,573, respectively. Trade and loan receivables are carried at amortized cost, net of allowance for losses. Amortized cost approximated book value as of March 31, 2018 and December 31, 2017. |
Reclassifications | Reclassifications have been made to conform with current year presentation. |
New Accounting Pronouncements | Management has determined that the impact of the following recent FASB pronouncements will not have a material impact on the financial statements. - Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers - ASU 2015-11, Simplifying the Measurement of Inventory - ASU 2015-17, Balance Sheet Classification of Deferred Taxes - ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities - ASU 2016-02, Leases - ASU 2016-18, Statement of Cash Flows: Restricted Cash, - ASU 2017-01, Business Combinations, - ASU 2017-09, Compensation Stock Compensation, - ASU 2017-11, Earnings Per Share, - ASU 2018-05, Income Taxes, Management has elected to early adopt ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business ASU 2016-18, Statement of Cash Flows: Restricted Cash (Topic 230). ASU 2014-09, Revenue from Contracts with Customers (Topic 606). |
SUMMARY OF SIGNIFICANT ACCOUN15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary Of Significant Accounting Policies Tables | |
Schedule of restricted cash and cash equivalents | March 31, 2018 March 31, 2017 Cash $ 9,006 $ 756,160 Restricted Cash 85,786 220,602 Total cash and restricted cash presented in the consolidated statement of cash flows $ 94,792 $ 976,762 |
Schedule of Asset Retirement Obligations | Balance at December 31, 2017 $ 19,885,057 Accretion 3 months March 31, 2018 447,762 Reclamation work 3 months March 31, 2018 - Balance at March 31, 2018 $ 20,343,619 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property And Equipment Tables | |
Property, Plant and Equipment | March 31, 2018 December 31, 2017 Processing and rail facility $ 2,914,422 $ 2,914,422 Underground equipment 8,887,045 8,887,045 Surface equipment 4,439,263 3,957,603 Land 178,683 178,683 Less: Accumulated depreciation (5,300,140 ) (4,820,569 ) Total Property and Equipment, Net $ 11,119,273 $ 11,117,184 |
Property, Plant and Equipment, Estimated Useful Lives | Processing and Rail Facilities 20 years Surface Equipment 7 years Underground Equipment 5 years |
SUMMARY OF SIGNIFICANT ACCOUN17
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Summary Of Significant Accounting Policies Details | |||
Cash | $ 9,006 | $ 186,722 | $ 756,160 |
Restricted Cash | 85,786 | $ 198,943 | 220,602 |
Total cash and restricted cash presented in the consolidated statement of cash flows | $ 94,792 | $ 976,762 |
SUMMARY OF SIGNIFICANT ACCOUN18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Summary Of Significant Accounting Policies Details 1 | ||
Beginning Balance | $ 19,885,057 | |
Accretion | 447,762 | $ 328,061 |
Reclamation work | ||
Ending Balance | $ 20,343,619 |
SUMMARY OF SIGNIFICANT ACCOUN19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Summary Of Significant Accounting Policies Details Narrative | |||
Date of incorporation | Jun. 30, 2015 | ||
Cash - restricted | $ 85,786 | $ 220,602 | $ 198,943 |
Asset management fee | 116,115 | ||
Loss of ARO Settlement | $ 155,922 | ||
Allowance for trade receivables | 0 | 0 | |
Allowance for other accounts receivables | $ 0 | $ 92,573 | |
Discount rate | 10.00% |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Less: Accumulated depreciation | $ (5,300,140) | $ (4,820,569) |
Total Property and Equipment, Net | 11,119,273 | 11,117,184 |
Underground equipment [Member] | ||
Property and equipment | 8,887,045 | 8,887,045 |
Surface equipment [Member] | ||
Property and equipment | 4,439,263 | 3,957,603 |
Processing and rail facility [Member] | ||
Property and equipment | 2,914,422 | 2,914,422 |
Land [Member] | ||
Property and equipment | $ 178,683 | $ 178,683 |
PROPERTY AND EQUIPMENT (Detai21
PROPERTY AND EQUIPMENT (Details 1) | 3 Months Ended |
Mar. 31, 2018 | |
Processing and Rail Facilities [Member] | |
Estimated useful lives | 20 years |
Surface Equipment [Member] | |
Estimated useful lives | 7 years |
Underground Equipment [Member] | |
Estimated useful lives | 5 years |
PROPERTY AND EQUIPMENT (Detai22
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Property And Equipment Details Narrative | ||
Depreciation expense | $ 479,571 | $ 459,644 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Principal payments on long term debt | $ 191,517 | $ 4,893 |
Increases in long term debt | 1,481,660 | 0 |
Proceeds from long term debt | 1,000,000 | |
Equipment for notes payable | 481,660 | |
Proceeds from the factoring agreement | 6,714,836 | 2,039,226 |
Repayments of factoring agreement | $ 6,827,126 | $ 2,454,430 |
Secured loan maturity date | May 2, 2018 | |
Equipment Loans [Member] | Note payable One [Member] | ||
Equipment for notes payable | $ 135,000 | |
Interest rate | 0.00% | |
Equipment Loans [Member] | Note payable [Member] | ||
Equipment for notes payable | $ 346,660 | |
Interest rate | 9.00% | |
Business Loan - ARC [Member] | Note payable [Member] | Consolidated loan agreement [Member] | ||
Interest rate | 7.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Related Party Transactions Details Narrative | |||
Accrued related party management fee | $ 17,840,615 | $ 17,840,615 | |
Management fees | $ 0 | $ 0 |
MANAGEMENT AGREEMENT (Details N
MANAGEMENT AGREEMENT (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Management Agreement Details Narrative | ||
Advances made in connection with management agreement | $ 7,000 | $ 40,000 |
Advance repayment in connection with management agreement | $ 79,219 | $ 75,000 |
EQUITY TRANSACTIONS (Details Na
EQUITY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Equity Transactions Details Narrative | ||
Accrued dividend on Series B | $ 70,157 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | May 10, 2018 | May 30, 2018 | Mar. 31, 2018 | May 31, 2018 | Apr. 30, 2018 | Apr. 21, 2018 |
Maturity date | May 2, 2018 | |||||
Subsequent Event [Member] | ||||||
Consideration for acquired permits | $ 75,000 | |||||
Royalty cost Per ton description | The payment of $1.50 per ton royalty of coal sold | |||||
Subsequent Event [Member] | ARC Business Loan [Member] | ||||||
Additional loan | $ 300,000 | |||||
Subsequent Event [Member] | Financing Transaction [Member] | ||||||
Note payable | $ 1,000,000 | |||||
Maturity date | Sep. 30, 2018 | |||||
Subsequent Event [Member] | Surface Lease And Mineral Sub-Lease [Member] | ||||||
Consideration for acquired permits | $ 1,036,200 | |||||
Vendor payables | $ 53,771 |