Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 16, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | American Resources Corporation | |
Entity Central Index Key | 0001590715 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Mar. 31, 2022 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Entity Common Stock Shares Outstanding | 66,203,279 | |
Entity File Number | 000-55456 | |
Entity Incorporation State Country Code | FL | |
Entity Tax Identification Number | 46-3914127 | |
Entity Interactive Data Current | Yes | |
Entity Address Address Line 1 | 12115 Visionary Way | |
Entity Address City Or Town | Fishers | |
Entity Address State Or Province | IN | |
City Area Code | 317 | |
Local Phone Number | 855-9926 | |
Trading Symbol | AREC | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Security 12b Title | Class A Common | |
Entity Address Postal Zip Code | 46038 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash | $ 5,217,204 | $ 11,492,702 |
Accounts Receivable | 2,856,324 | 3,175,636 |
Inventory | 1,236,065 | 0 |
Prepaid Fees | 1,576,015 | 624,605 |
Total Current Assets | 10,885,608 | 15,292,943 |
Other Assets | ||
Cash - Restricted | 1,086,593 | 1,095,411 |
Property And Equipment, Net | 22,698,618 | 22,903,154 |
Long-term Right Of Use Assets, Net | 704,627 | 726,194 |
Investment In Llc - Related Party | 2,500,000 | 2,500,000 |
Note Receivable | 685,000 | 350,000 |
Total Other Assets | 27,674,838 | 27,574,759 |
Total Assets | 38,560,446 | 42,872,702 |
Current Liabilities | ||
Trade Payable | 3,013,987 | 3,245,566 |
Non-trade Payables | 1,788,280 | 1,950,567 |
Accounts Payable - Related Party | 3,241,109 | 3,932,716 |
Accrued Interest | 1,001,457 | 1,325,286 |
Due To Affiliate, Net | 69,000 | 69,000 |
Current Portion Of Long Term-debt | 3,736,719 | 5,283,647 |
Convertible Note Payables (net Of Unamortized Discount Of $0 And $18,106) | 8,912,097 | 571,618 |
Current Portion Of Lease Liabilities, Net | 80,858 | 151,806 |
Total Current Liabilities | 21,843,507 | 16,530,206 |
Other Liabilities | ||
Notes Payable | 534,543 | 548,477 |
Convertible Note Payables (net Of Unamortized Discount Of $0 And $22,549) | 0 | 8,620,412 |
Remediation Liability | 19,219,209 | 18,951,587 |
Lease Liabilities, Net | 614,708 | 562,428 |
Total Other Liabilities | 20,368,460 | 28,682,904 |
Total Liabilities | 42,211,967 | 45,213,110 |
Stockholders' Deficit | ||
Common Stock: $.0001 Par Value; 230,000,000 Shares Authorized, 66,156,417 And 65,084,992 Shares Issued And Outstanding | 6,616 | 6,508 |
Additional Paid-in Capital | 164,888,336 | 163,441,655 |
Accumulated Deficit | (168,538,589) | (165,793,571) |
Total American Resources Corporation Shareholders' Equity | (3,643,637) | (2,345,408) |
Non Controlling Interesting | (7,884) | 0 |
Total Stockholders' Equity (deficit) | (3,651,521) | (2,345,408) |
Total Liabilities And Stockholders' Equity (deficit) | $ 38,560,446 | $ 42,872,702 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical ) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Unamortized Discount, Current Portion Of Notes Payable | $ 0 | $ 18,106 |
Unamortized Discount, Current Portion Of Convertible Notes Payable | $ 0 | $ 22,549 |
Common Stock, Par Value | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 230,000,000 | 230,000,000 |
Common Stock, Shares Issued | 66,156,417 | 65,084,992 |
Common Stock, Shares Outstanding | 66,156,417 | 65,084,992 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED | ||
Coal Sales | $ 9,031,259 | $ 3,274 |
Metal Recovery And Sales | 37,226 | 0 |
Royalty Income | 12,137 | 7,372 |
Total Revenue | 9,080,622 | 10,646 |
Cost Of Coal Sales And Processing | (2,890,858) | (800,515) |
Accretion Expense | (267,622) | (305,636) |
Depreciation | (626,042) | (393,530) |
Amortization Of Mining Rights | (303,394) | (311,685) |
General And Administrative | (1,020,814) | (1,081,447) |
Professional Fees | (350,938) | (710,032) |
Production Taxes And Royalties | (819,477) | (568,182) |
Development Costs | (6,784,188) | (1,811,951) |
Total Operating Expenses | (13,063,333) | (5,982,978) |
Net Loss From Operations | (3,983,711) | (5,972,332) |
Other Income And (expense) | ||
Other Income | 82,156 | 35,296 |
Gain On Cancelation Of Debt | 1,521,304 | |
Amortization Of Debt Discount And Debt Issuance Costs | 0 | (2,879) |
Interest Income | 10,045 | 41,171 |
Interest Expense | (383,696) | (491,113) |
Total Other Income (expense) | 1,229,809 | (417,525) |
Net Loss | (2,752,902) | (6,389,857) |
Less: Net Loss Attributable To Non Controlling Interest | 7,884 | 0 |
Net Loss Attributable To American Resources Corp. Shareholders | $ (2,745,018) | $ (6,389,857) |
Net Loss Per Common Share - Basic And Diluted | $ (0.04) | $ (0.14) |
Weighted Average Common Shares Outstanding- Basic And Diluted | (65,253,533) | (46,917,910) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY - USD ($) | Total | Common Stock | APIC | Accumulated Deficit | Non Controlling Interest |
Balance, shares at Dec. 31, 2020 | 42,972,762 | ||||
Balance, amount at Dec. 31, 2020 | $ (20,005,500) | $ 4,296 | $ 113,279,450 | $ (133,289,246) | |
Shares issued in connection with registered offering, shares | 425,000 | ||||
Shares issued in connection with registered offering, amount | 1,274,924 | $ 43 | 1,274,881 | ||
Shares issued in connection with warrant conversions, shares | 1,734,610 | ||||
Shares issued in connection with warrant conversions, amount | 2,055,799 | $ 182 | 2,055,617 | ||
Shares issued for services, shares | 80,000 | ||||
Shares issued for services, amount | 188,000 | $ 8 | 187,992 | ||
Shares issued in connection with debt and payable conversions, shares | 4,658,526 | ||||
Shares issued in connection with debt and payable conversions, amount | 9,845,640 | $ 457 | 9,845,183 | ||
Amortization of debt discount | (163,297) | (163,297) | |||
Amortization of Warrant and Option Expense | 262,025 | 262,025 | |||
Net Loss | (6,389,857) | (6,389,857) | |||
Balance, shares at Mar. 31, 2021 | 49,870,898 | ||||
Balance, amount at Mar. 31, 2021 | (12,605,673) | $ 4,986 | 127,068,445 | (139,679,103) | |
Balance, shares at Dec. 31, 2021 | 0 | ||||
Balance, amount at Dec. 31, 2021 | (2,345,408) | $ 0 | 0 | 0 | $ 0 |
Shares issued in connection with warrant conversions, shares | 187,250 | ||||
Shares issued in connection with warrant conversions, amount | 280,875 | $ 19 | 280,856 | ||
Net Loss | (2,752,902) | (2,745,018) | (7,884) | ||
Amortization of beneficial conversion features | (40,655) | (40,655) | |||
Shares issued in connection with debt conversions, shares | 884,229 | ||||
Shares issued in connection with debt conversions, amount | 1,006,726 | $ 89 | 1,006,637 | ||
Amortization of Warrant and Stock Option Expense | 199,843 | 199,843 | |||
Balance, shares at Mar. 31, 2022 | 66,156,471 | ||||
Balance, amount at Mar. 31, 2022 | $ (3,651,521) | $ 6,616 | $ 164,888,336 | $ (168,538,589) | $ (7,884) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows From Operating Activities: | ||
Net Loss | $ (2,752,902) | $ (6,389,857) |
Adjustments To Reconcile Net Loss To Net Cash Used In Operating Activities: | ||
Gain On Forgiveness Of Debt | (1,521,304) | 0 |
Depreciation | 626,042 | 393,530 |
Amortization Of Mining Rights | 303,394 | 311,685 |
Accretion Expense | 267,622 | 305,636 |
Accretion Of Right Of Use Assets | 2,899 | 0 |
Warrant Expense | 199,843 | 115,025 |
Issuance Of Common Share Options For Compensation | 0 | 147,000 |
Amortization Of Beneficial Conversion Feature | 0 | 590,464 |
Issuance Of Common Shares For Services | 0 | 188,000 |
Change In Current Assets And Liabilities: | ||
Accounts Receivable | 319,312 | 35,376 |
Prepaid Expenses And Other Assets | (951,410) | (66,668) |
Inventory | (1,236,065) | 0 |
Accounts Payable | (393,866) | (1,613,643) |
Accounts Payable Related Party | (691,607) | 33,726 |
Accrued Interest | 94,435 | (796,248) |
Cash Provided By (used In) Operating Activities | (5,733,607) | (6,745,974) |
Cash Flows From Investing Activities: | ||
Cash Paid For Ppe, Net | (724,900) | (565,000) |
Capitalized interest | 267,875 | |
Cash Invested In Notes Receivable | (335,000) | |
Investment In Llc | 0 | (2,275,000) |
Cash Provided By (used In) Investing Activities | (792,025) | (2,840,000) |
Cash Flows From Financing Activities: | ||
Principal Payments On Long Term Debt | (39,559) | (62,294) |
Issuance Of Common Shares For Debt And Payable Conversion | 0 | 1,997,514 |
Proceeds From Convertible Note | 0 | 1,620,000 |
Proceeds From Warrant Conversions | 280,875 | 2,055,723 |
Proceeds From Sale Of Common Stock, Net | 0 | 1,105,001 |
Cash Provided By Financing Activities | 241,316 | 6,715,944 |
Increase (decrease) In Cash And Restricted Cash | (6,284,316) | (2,870,030) |
Cash And Restricted Cash, Beginning Of Period | 12,588,113 | 11,201,203 |
Cash And Restricted Cash, End Of Period | 6,303,797 | 8,331,173 |
Non-cash Investing And Financing Activities | ||
Conversion Of Debt To Common Shares | 1,006,726 | 1,997,514 |
Discount On Note Due To Beneficial Conversion Feature | 0 | 715,740 |
Cash Paid For Interest | $ 3,726 | $ 42,426 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Note 1 - Summary Of Significant Accounting Policies | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES American Resources Corporation (ARC or the Company) operates through subsidiaries that were formed or acquired in 2020, 2019, 2018, 2016 and 2015 for the purpose of acquiring, rehabilitating and operating various natural resource assets including coal used in the steel making and industrial markets, critical and rare earth elements used in the electrification economy and aggregated metal and steel products used in the recycling industries. Basis of Presentation and Consolidation : The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries American Carbon Corp (ACC), Deane Mining, LLC (Deane), Quest Processing LLC (Quest Processing), ERC Mining Indiana Corp (ERC), McCoy Elkhorn Coal LLC (McCoy), Knott County Coal LLC (KCC), Wyoming County Coal (WCC),Perry County Resources LLC (PCR), and American Metals LLC (AM). All significant intercompany accounts and transactions have been eliminated. Entities for which ownership is less than 100% a determination is made whether there is a requirement to apply the variable interest entity (VIE) model to the entity. Where the company holds current or potential rights that give it the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, combined with a variable interest that gives the Company the right to receive potentially significant benefits or the obligation to absorb potentially significant losses, the Company would be deemed to have a controlling interest. The company is the owner of 92.5% and is the primary beneficiary of American Rare Earth, LLC, which qualifies as a variable interest entity. Accordingly, the assets, liabilities, revenue and expenses of American Rare Earth, LLC have been included in the accompanying consolidated financial statements with a non-controlling interest not owned by the company excluded from operating results. 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, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or any other period. These financial statements should be read in conjunction with the Company’s 2021 audited financial statements and notes thereto which were filed on form 10-K on March 11, 2022. Convertible Preferred Securities: Derivatives and Hedging Activities We also follow ASC 480-10, Distinguishing Liabilities from Equity Cash Restricted cash: During 2021, the Company established an escrow account for certain assumed liabilities in the PCR acquisition. The balance as of March 31, 2022 and December 31, 2021 includes in the amount of $447,070 and $347,070, respectively, to pay for assumed liabilities in the PCR asset acquisition. During 2019 the Company established a reclamation bonding collateral fund. The balance of the restricted cash being held totaled $250,000 and $250,000 as of March 31, 2022 and December 31, 2021. 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, 2022 and March 31, 2021: March 31, 2022 March 31, 2021 Cash $ 5,217,204 $ 7,097,465 Restricted Cash 1,086,593 1,233,708 Total cash and restricted cash presented in the consolidated statement of cash flows $ 6,303,797 $ 8,331,173 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) deposits. 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. The table below reflects the changes to our ARO: Balance at December 31, 2021 $ 18,951,587 Accretion – 3 months March 31, 2022 267,622 Reclamation work – 3 months March 31, 2022 - Balance at March 31, 2022 $ 19,219,209 Balance at December 31, 2020 $ 17,855,305 Accretion – 3 months March 31, 2021 305,636 Reclamation work – 3 months March 31, 2021 - Sale of PCR Permits Balance at March 31, 2021 $ 18,160,941 Allowance For Doubtful Accounts: Allowance for trade receivables as of March 31, 2022 and December 31, 2021 amounted to $0, for both periods. Allowance for other accounts receivables as of March 31, 2022 and December 31, 2021 amounted to $1,744,570 and $1,744,570, respectively. Trade and loan receivables are carried at amortized cost, net of allowance for losses. Amortized cost approximated book value as of March 31, 2022 and December 31, 2021. Prepaid Fees and Advance Royalties: Inventory: Reclassifications: |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2022 | |
PROPERTY AND EQUIPMENT | |
Note 2 - Property And Equipment | NOTE 2 - PROPERTY AND EQUIPMENT At March 31, 2022 and December 31, 2021, property and equipment were comprised of the following: March 31, 2022 December 31, 2021 Processing and rail facility $ 11,591,274 $ 11,591,274 Underground equipment 9,777,667 9,687,667 Surface equipment 3,201,464 3,201,464 Coal refuse storage 12,134,192 12,134,192 Mine Development 561,575 561,575 Construction in Process 743,021 108,122 Land 1,572,435 1,572,435 Less: Accumulated depreciation (16,883,011 ) (15,953,575 ) Total Property and Equipment, Net $ 22,698,618 $ 22,903,154 Depreciation expense amounted to $393,530 and $393,530 for the period March 31, 2022 and March 31, 2021, respectively. The estimated useful lives are as follows: Processing and Rail Facilities 7-20 years Surface Equipment 7 years Underground Equipment 5 years Mining Rights 5-10 years Coal Refuse Storage 10 years |
NOTES PAYABLE
NOTES PAYABLE | 3 Months Ended |
Mar. 31, 2022 | |
NOTES PAYABLE | |
Note 3 - Notes Payable | NOTE 3 - NOTES PAYABLE During the three-month period ended March 31, 2022, principal reductions on long term debt totaled $1,564,684, primarily due to debt forgiveness of PPP loan. During the three-month period ended March 31, 2022, increases to long term debt totaled $0. The notes have a minimum offering amount of $12,500,000 and maximum of $25,000,000 and minimum investment of $500,000. The notes carry a 24-month term, 12.5% interest 10% warrant coverage and a conversion price of $1.05. The warrants have an exercise price of $1.50. During the three-month period ended March 31, 2021, principal payments on long term debt totaled $8,136,378. During the three-month period ended March 31, 2021, increases to long term debt totaled $1,620,000, primarily from cash received in the form of a senior convertible note totaling $1,620,000. The notes have a minimum offering amount of $12,500,000 and maximum of $25,000,000 and minimum investment of $500,000. The notes carry a 24-month term, 12.5% interest 10% warrant coverage and a conversion price of $1.05. The warrants have an exercise price of $1.50. |
RIGHT OF USE ASSETS AND LEASES
RIGHT OF USE ASSETS AND LEASES | 3 Months Ended |
Mar. 31, 2022 | |
RIGHT OF USE ASSETS AND LEASES | |
Note 4 - Right Of Use Assets And Leases | NOTE 4 – RIGHT OF USE ASSETS AND LEASES The right-of-use asset is the Company’s right to use an asset over the life of a lease. The asset is calculated as the initial amount of the lease liability, plus any lease payments made to the lessor before the lease commencement date, plus any initial direct costs incurred, minus any lease incentives received. The Company’s discounted lease payment rate is 10.82%. Our principal offices are located at 12115 Visionary Way, Fishers, Indiana 46038. We pay $5,726 per month in rent for the office space and the rental lease expires December 2026. On January 1, 2022, the Company entered into an expansion lease for the site. The amended lease has a ten-year term and $5,869 per month rate. We also rent office space from an affiliated entity, LRR, at 11000 Highway 7 South, Kite, Kentucky 41828 and pay $1,702 per month rent and the rental lease expires January 1, 2030. On August 17, 2021, American Rare Earth entered into a Commercial Land Lease sublease agreement with Land Betterment for nearly 7 acres of land for the purpose of building a commercial grade critical element purification facility. The sublease is for the period of 5 years with a rate of $3,500 a month. On October 8, 2021, American Rare Earth entered into a Commercial Lease for 6,700 square feet of warehouse space for the purpose of building a commercial grade critical element purification facility. The is for the period of 2 years with a rate of $4,745.83 a month. At March 31, 2022, right of use assets and liabilities were comprised of the following: March 31, 2022 March 31, 2021 Assets: ROU asset $ 704,627 $ - Liabilities Current: Operating lease assets $ 80,858 $ - Non-current - Operating lease assets 695,566 - As of March 31, 2022, remaining maturities of lease liabilities were as follows: Operating 2023 80,858 2024 71,801 2025 59,690 2026 68,414 2027 and thereafter 414,802 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |
Note 5 - Related Party Transactions | NOTE 5 - RELATED PARTY TRANSACTIONS Land Resources & Royalties The Company leases property from Land Resources & Royalties (LRR), an entity controlled by certain members of the Company’s management who are also directors and shareholders. Until July 1, 2018, LRR was consolidated as a VIE resulting in transaction between the two companies to be eliminated upon consolidation. Upon deconsolidation, amounts paid and owed to LRR have been disclosed discreetly in the consolidated financial statements. For the three-month period ending March 31, 2022, royalty expense incurred with LRR amounted to $57,135 and amounts advanced from LRR amounted $0 and amounts repaid amounted to $0. As of March 31, 2022, total amounts owed LRR amounted to $0. For the three-month period ending March 31, 2021, royalty expense incurred with LRR amounted to $80,146 and amounts advanced from LRR amounted to $0 and amounts repaid to LRR amounted to $0. As of March 31, 2021, total amounts owed LRR amounted to $712,872. Land Betterment Corp On February 13, 2021, the Company entered into a Contract Services Agreement with Land Betterment Corporation, an entity controlled by certain members of the Company’s management who are also directors and shareholders. The contract terms state that service costs are passed through to the Company with a 10% mark-up and a 50% share of cost savings which includes payroll covering aforementioned members of the Company’s management. The services agreement covers all of the Company’s properties. For the 3 months ended March 31, 2022 amounts incurred under the agreement amounted to $1,574,015 and amounts paid totaled $839,280. As of March 31, 2022, amounts payable under the agreement amounted to $2,793,658. For the 3 months ended March 31, 2021 amounts incurred under the agreement amounted to $113,873 and amounts paid totaled $0. As of March 31, 2021, amounts payable under the agreement amounted to $9,784. For the 3 months ended March 31, 2021, service charges covering members of the Company’s management amounted to $0. American Opportunity Venture, LLC During January 2021, the company invested $2,250,000 for 50% ownership and become the managing member of American Opportunity Venture, LLC. (AOV) It has been determined that AOV is a variable interest entity and that the Company is not primary beneficiary. As such, the investment in AOV will be accounted for using the equity method of accounting. American Opportunity Venture II, LLC During March 2021, the Company invested $25,000 for 100% ownership and become the managing member of American Opportunity Venture II, LLC. (AOVII). As such, the investment in AOVII has been eliminated in the accompanying financial statements. As of March 31, 2022, AOVII has had no operational activity. Novusterra, Inc. During March 2021, the Company licensed certain technology to an unrelated entity, Novusterra, Inc. According to the commercial terms of the license, the Company is to receive 50% of future cash flows and 15,750,000 common shares of Novusterra, Inc. It has been determined that Novusterra is a variable interest entity and that the Company is not the primary beneficiary. As such, the investment in Novusterra will be accounted for using the equity method of accounting. As of March 31, 2022, Novusterra has had no operational activity. Land Betterment Exchange (LBX) The Company is the holder of 2,000,000 LBX Tokens with a par value of $250 for each token. The token issuance process is undertaken by a related party, Land Betterment, and is predicated on proactive environmental stewardship and regulatory bond releases. As of March 31, 2021, there is no market for the LBX Token and therefore no value has been assigned. FUB Mineral LLC On October 1, 2021, the Company invested $250,000 into FUB Mineral, LLC a company with common owners. |
EQUITY TRANSACTIONS
EQUITY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2022 | |
EQUITY TRANSACTIONS | |
Note 6 - Equity Transactions | NOTE 6 – EQUITY TRANSACTIONS Employee stock compensation expense for the three-month period ending March 31, 2022 and 2021 amounted to $199,843 and $262,025 respectively. Class A Common Shares Issued in exchange for services, trade payables and related party debt On March 31, 2021, the Company issued 884,229 class A common shares pursuant to the conversion of $1,006,726 of accrued interest. Warrant Exercises On January 13, 2022, the Company issued 117,250 shares of Class A Common Stock based upon a cash pay warrant exercise. The share price at issuance was $1.50. On March 30, 2022, the Company issued 47,500 shares of Class A Common Stock based upon a cash pay warrant exercise. The share price at issuance was $1.50. On March 31, 2022, the Company issued 22,500 shares of Class A Common Stock based upon a cash pay warrant exercise. The share price at issuance was $1.50. New Warrant Issuances On January 26, 2021, the Company issued Common Stock Purchase Warrant “A-10” for rare earth capture advisory. The warrant provides the option to purchase 10,000 Class A Common Shares at a price of $2.05. The warrants expire on January 26, 2024. On February 2, 2021, the Company issued Common Stock Purchase Warrant “C-37” in conjunction with the issuance of $600,000 convertible note. The warrant provides the option to purchase 60,000 Class A Common Shares at a price of $1.50. The warrants expire on February 2, 2023. On February 7, 2021, the Company issued Common Stock Purchase Warrant “A-11” for rare earth processing advisory. The warrant provides the option to purchase 50,000 Class A Common Shares at a price of $4.25. The warrants expire on February 7, 2026. The company uses the Black Scholes option pricing model to value its warrants and options. The significant inputs are as follows: March 31, 2022 March 31, 2021 Expected Dividend Yield 0 % 0 % Expected volatility 123-617 % 123-617 % Risk-free rate 1.40-1.62 % 1.40-1.62 % Expected life of warrants 1.635-5.588 years 1.635-5.588 years Company Warrants: Weighted Weighted Average Average Aggregate Number of Exercise Contractual Intrinsic Warrants Price Life in Years Value Exercisable (Vested) – December 31, 2020 8,401,221 $ 1.135 2.152 $ 7,453,214 Granted 60,000 $ 3.883 4.521 $ 18,000 Forfeited or Expired - $ - - $ - Exercised 1,681,022 $ 1.215 3.094 $ 5,321,781 Outstanding - March 31, 2021 6,780,199 $ 1.139 1.635 $ 18,277,625 Exercisable (Vested) - March 31, 2021 6,780,199 $ 1.139 1.635 $ 18,277,625 Exercisable (Vested) – December 31, 2021 10,213,764 $ 2.25 2.69 $ 121,018 Granted - $ - - $ 121,018 Forfeited or Expired - $ - - $ - Exercised 187,250 $ 1.50 2.00 $ 54,080- Outstanding - March 31, 2022 10,026,514 $ 1.14 3.86 $ 66,938 Exercisable (Vested) - March 31, 2022 10,026,514 $ 1.14 3.86 $ 66,938 Company Options: Weighted Weighted Average Average Aggregate Number of Exercise Contractual Intrinsic Options Price Life in Years Value Outstanding – December 31, 2020 2,159,269 $ 1.606 5.660 $ 1,919,129 Exercisable (Vested) – December 31, 2020 888,659 $ 1.581 5.047 $ 749,470 Granted 75,000 $ 2.560 6.847 $ 105,000 Forfeited or Expired 50,000 $ 1.050 - $ - Exercised - $ - - $ - Outstanding - March 31, 2021 2,184,269 $ 1.651 5.588 $ 5,010,909 Exercisable (Vested) - March 31, 2021 938,659 $ 1.739 5.260 $ 2,149,710 Outstanding – December 31, 2021 4,209,269 $ 1.665 5.39 $ 3,186,870 Exercisable (Vested) – December 31, 2021 3,159,268 $ 1.517 4.91 $ 3,141,183 Granted - $ - - $ - Forfeited or Expired - $ - - $ - Exercised - $ - - $ - Outstanding - March 31, 2022 4,209,269 $ 1.980 6.79 $ 3,257,470 Exercisable (Vested) - March 31, 2022 4,209,269 $ 1.980 6.79 $ 3,257,470 |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
CONTINGENCIES | |
Note 7 - Contingencies | 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 Company’s business or financial position. 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 Company’s business or financial position. These claims include amounts assessed by the Kentucky Energy Cabinet totaling $1,415,590, the Company has accrued $1,432,077 as a payable to the Commonwealth of Kentucky including amounts owed to the Kentucky Energy Cabinet. Claims assessed by the Mine Health Safety Administration amount to $856,498 of which the Company has accrued $351,303 as a payable. During 2019, McCoy and Deane, received notice of intent to place liens for amounts owed on federal excise taxes. The amounts associated with the notices are included in the company’s trade payables. On April 3, 2019 KCC partially settled a case relating to a reclamation issue while the property was under former ownership. The settled amount is $100,000 which will be paid out of a prior insurance policy. The remaining portion of the case was settled during for amount of $280,000. The outstanding amount has not been paid as of the report date and is included in trade payables. On September 26, 2019, the Company received notice that a certain lease assumption as part of the PCR acquisition was being disputed by the lessor (see note 1). Our principal offices are located at 12115 Visionary Way, Fishers, Indiana 46038. We pay $5,726 per month in rent for the office space and the rental lease expires December 2026. On January 1, 2022, the Company entered into an expansion lease for the site. The amended lease has a ten year term and $5,869 per month rate. We also rent office space from an affiliated entity, LRR, at 11000 Highway 7 South, Kite, Kentucky 41828 and pay $1,702 per month rent and the rental lease expires January 1, 2030. On August 17, 2021, American Rare Earth entered into a Commercial Land Lease sublease agreement with Land Betterment for nearly 7 acres of land for the purpose of building a commercial grade critical element purification facility. The sublease is for the period of 5 years with a rate of $3,500 a month. On October 8, 2021, American Rare Earth entered into a Commercial Lease for 6,700 square feet of warehouse space for the purpose of building a commercial grade critical element purification facility. The is for the period of 2 years with a rate of $4,745.83 a month. The Company also utilizes various office spaces on-site at its coal mining operations and coal preparation plant locations in eastern Kentucky, with such rental payments covered under any surface lease contracts with any of the surface land owners. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2022 | |
SUBSEQUENT EVENTS | |
Note 8 - Subsequent Events | NOTE 8 - SUBSEQUENT EVENTS None. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis Of Presentation And Consolidation | The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries American Carbon Corp (ACC), Deane Mining, LLC (Deane), Quest Processing LLC (Quest Processing), ERC Mining Indiana Corp (ERC), McCoy Elkhorn Coal LLC (McCoy), Knott County Coal LLC (KCC), Wyoming County Coal (WCC),Perry County Resources LLC (PCR), and American Metals LLC (AM). All significant intercompany accounts and transactions have been eliminated. Entities for which ownership is less than 100% a determination is made whether there is a requirement to apply the variable interest entity (VIE) model to the entity. Where the company holds current or potential rights that give it the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, combined with a variable interest that gives the Company the right to receive potentially significant benefits or the obligation to absorb potentially significant losses, the Company would be deemed to have a controlling interest. The company is the owner of 92.5% and is the primary beneficiary of American Rare Earth, LLC, which qualifies as a variable interest entity. Accordingly, the assets, liabilities, revenue and expenses of American Rare Earth, LLC have been included in the accompanying consolidated financial statements with a non-controlling interest not owned by the company excluded from operating results. 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, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or any other period. These financial statements should be read in conjunction with the Company’s 2021 audited financial statements and notes thereto which were filed on form 10-K on March 11, 2022. |
Convertible Preferred Securities | Convertible Preferred Securities: Derivatives and Hedging Activities We also follow ASC 480-10, Distinguishing Liabilities from Equity |
Cash | Cash |
Restricted Cash | Restricted cash: During 2021, the Company established an escrow account for certain assumed liabilities in the PCR acquisition. The balance as of March 31, 2022 and December 31, 2021 includes in the amount of $447,070 and $347,070, respectively, to pay for assumed liabilities in the PCR asset acquisition. During 2019 the Company established a reclamation bonding collateral fund. The balance of the restricted cash being held totaled $250,000 and $250,000 as of March 31, 2022 and December 31, 2021. 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, 2022 and March 31, 2021: March 31, 2022 March 31, 2021 Cash $ 5,217,204 $ 7,097,465 Restricted Cash 1,086,593 1,233,708 Total cash and restricted cash presented in the consolidated statement of cash flows $ 6,303,797 $ 8,331,173 |
Asset Retirement Obligations (aro) - Reclamation | 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) deposits. 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. The table below reflects the changes to our ARO: Balance at December 31, 2021 $ 18,951,587 Accretion – 3 months March 31, 2022 267,622 Reclamation work – 3 months March 31, 2022 - Balance at March 31, 2022 $ 19,219,209 Balance at December 31, 2020 $ 17,855,305 Accretion – 3 months March 31, 2021 305,636 Reclamation work – 3 months March 31, 2021 - Sale of PCR Permits Balance at March 31, 2021 $ 18,160,941 |
Allowance For Doubtful Accounts | Allowance For Doubtful Accounts: Allowance for trade receivables as of March 31, 2022 and December 31, 2021 amounted to $0, for both periods. Allowance for other accounts receivables as of March 31, 2022 and December 31, 2021 amounted to $1,744,570 and $1,744,570, respectively. Trade and loan receivables are carried at amortized cost, net of allowance for losses. Amortized cost approximated book value as of March 31, 2022 and December 31, 2021. |
Prepaid Fees and Advance Royalties | Prepaid Fees and Advance Royalties: |
Inventory | Inventory: |
Reclassifications | Reclassifications: |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule Of Restricted Cash And Cash Equivalents | March 31, 2022 March 31, 2021 Cash $ 5,217,204 $ 7,097,465 Restricted Cash 1,086,593 1,233,708 Total cash and restricted cash presented in the consolidated statement of cash flows $ 6,303,797 $ 8,331,173 |
Schedule Of Asset Retirement Obligations | Balance at December 31, 2021 $ 18,951,587 Accretion – 3 months March 31, 2022 267,622 Reclamation work – 3 months March 31, 2022 - Balance at March 31, 2022 $ 19,219,209 Balance at December 31, 2020 $ 17,855,305 Accretion – 3 months March 31, 2021 305,636 Reclamation work – 3 months March 31, 2021 - Sale of PCR Permits Balance at March 31, 2021 $ 18,160,941 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
PROPERTY AND EQUIPMENT | |
Schedule Of Property And Equipment | At March 31, 2022 and December 31, 2021, property and equipment were comprised of the following: March 31, 2022 December 31, 2021 Processing and rail facility $ 11,591,274 $ 11,591,274 Underground equipment 9,777,667 9,687,667 Surface equipment 3,201,464 3,201,464 Coal refuse storage 12,134,192 12,134,192 Mine Development 561,575 561,575 Construction in Process 743,021 108,122 Land 1,572,435 1,572,435 Less: Accumulated depreciation (16,883,011 ) (15,953,575 ) Total Property and Equipment, Net $ 22,698,618 $ 22,903,154 Depreciation expense amounted to $393,530 and $393,530 for the period March 31, 2022 and March 31, 2021, respectively. The estimated useful lives are as follows: Processing and Rail Facilities 7-20 years Surface Equipment 7 years Underground Equipment 5 years Mining Rights 5-10 years Coal Refuse Storage 10 years |
RIGHT OF USE ASSETS AND LEASES
RIGHT OF USE ASSETS AND LEASES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
RIGHT OF USE ASSETS AND LEASES (Tables) | |
Schedule Of Right Of Use Assets And Liablities | March 31, 2022 March 31, 2021 Assets: ROU asset $ 704,627 $ - Liabilities Current: Operating lease assets $ 80,858 $ - Non-current - Operating lease assets 695,566 - |
Remaining Maturities Of Lease Liabilities | Operating 2023 80,858 2024 71,801 2025 59,690 2026 68,414 2027 and thereafter 414,802 |
EQUITY TRANSACTIONS (Tables)
EQUITY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
EQUITY TRANSACTIONS | |
Schedule Of Stockholders' Equity Note, Warrants | Weighted Weighted Average Average Aggregate Number of Exercise Contractual Intrinsic Warrants Price Life in Years Value Exercisable (Vested) – December 31, 2020 8,401,221 $ 1.135 2.152 $ 7,453,214 Granted 60,000 $ 3.883 4.521 $ 18,000 Forfeited or Expired - $ - - $ - Exercised 1,681,022 $ 1.215 3.094 $ 5,321,781 Outstanding - March 31, 2021 6,780,199 $ 1.139 1.635 $ 18,277,625 Exercisable (Vested) - March 31, 2021 6,780,199 $ 1.139 1.635 $ 18,277,625 Exercisable (Vested) – December 31, 2021 10,213,764 $ 2.25 2.69 $ 121,018 Granted - $ - - $ 121,018 Forfeited or Expired - $ - - $ - Exercised 187,250 $ 1.50 2.00 $ 54,080- Outstanding - March 31, 2022 10,026,514 $ 1.14 3.86 $ 66,938 Exercisable (Vested) - March 31, 2022 10,026,514 $ 1.14 3.86 $ 66,938 |
Schedule Of Option | Weighted Weighted Average Average Aggregate Number of Exercise Contractual Intrinsic Options Price Life in Years Value Outstanding – December 31, 2020 2,159,269 $ 1.606 5.660 $ 1,919,129 Exercisable (Vested) – December 31, 2020 888,659 $ 1.581 5.047 $ 749,470 Granted 75,000 $ 2.560 6.847 $ 105,000 Forfeited or Expired 50,000 $ 1.050 - $ - Exercised - $ - - $ - Outstanding - March 31, 2021 2,184,269 $ 1.651 5.588 $ 5,010,909 Exercisable (Vested) - March 31, 2021 938,659 $ 1.739 5.260 $ 2,149,710 Outstanding – December 31, 2021 4,209,269 $ 1.665 5.39 $ 3,186,870 Exercisable (Vested) – December 31, 2021 3,159,268 $ 1.517 4.91 $ 3,141,183 Granted - $ - - $ - Forfeited or Expired - $ - - $ - Exercised - $ - - $ - Outstanding - March 31, 2022 4,209,269 $ 1.980 6.79 $ 3,257,470 Exercisable (Vested) - March 31, 2022 4,209,269 $ 1.980 6.79 $ 3,257,470 |
Schedule Of Assumptions Used To Messure Fair Value Of Warrants/rights | March 31, 2022 March 31, 2021 Expected Dividend Yield 0 % 0 % Expected volatility 123-617 % 123-617 % Risk-free rate 1.40-1.62 % 1.40-1.62 % Expected life of warrants 1.635-5.588 years 1.635-5.588 years |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Cash | $ 5,217,204 | $ 11,492,702 | $ 7,097,465 |
Restricted Cash | 1,086,593 | 1,233,708 | |
Total Cash And Restricted Cash Presented In The Consolidated Statement Of Cash Flows | $ 6,303,797 | $ 8,331,173 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Beginning Balance Amount | $ 18,951,587 | $ 17,855,305 |
Accretion | 267,622 | 305,636 |
Reclamation Work | 0 | 0 |
Ending Balance, Amount | $ 19,219,209 | $ 18,160,941 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | |
Asset Management Fee Reserve | $ 116,115 | ||
Discount Rate,federal And State Laws | 10.00% | ||
Allowance For Trade Receivables | $ 0 | $ 0 | |
Allowance For Other Accounts Receivables | 1,744,570 | 1,744,570 | |
Restricted Cash | 250,000 | 250,000 | |
Restricted Cash | 1,086,593 | $ 1,233,708 | |
January 2021 [Member] | American Opportunity Venture, LLC [Member] | |||
Restricted Cash | $ 447,070 | $ 347,070 | |
Warrant A-11 [Member] | Common Shares Class A [Member] | |||
Ownership Percentage | 92.50% | ||
Common Stock | |||
Restricted Cash | $ 19,138 | $ 47,987 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Total Property And Equipment, Net | $ 22,698,618 | $ 22,903,154 |
Less: Accumulated Depreciation | (16,883,011) | (15,953,575) |
Underground equipment [Member] | ||
Property And Equipment | 3,201,464 | 3,201,464 |
Surface equipment [Member] | ||
Property And Equipment | 12,134,192 | 12,134,192 |
Mine development [Member] | ||
Property And Equipment | 743,021 | 108,122 |
Processing and rail facilities [Member] | ||
Property And Equipment | 9,777,667 | 9,687,667 |
Coal refuse storage [Member] | ||
Property And Equipment | 561,575 | 561,575 |
Construction in Progress [Member] | ||
Property And Equipment | 1,572,435 | 1,572,435 |
Perry County Resources LLC (PCR) [Member] | ||
Property And Equipment | $ 11,591,274 | $ 11,591,274 |
PROPERTY AND EQUIPMENT (Detai_2
PROPERTY AND EQUIPMENT (Details 1) | 3 Months Ended |
Mar. 31, 2022 | |
Underground equipment [Member] | |
Estimated Useful Lives | 7 years |
Surface equipment [Member] | |
Estimated Useful Lives | 10 years |
Minimum [Member] | Mining Rights [Member] | |
Estimated Useful Lives | 10 years |
Processing and rail facilities [Member] | |
Estimated Useful Lives | 5 years |
Processing and rail facilities [Member] | Minimum [Member] | |
Estimated Useful Lives | 20 years |
Processing and rail facilities [Member] | Maximum [Member] | |
Estimated Useful Lives | 5 years |
Land [Member] | |
Estimated Useful Lives | 7 years |
PROPERTY AND EQUIPMENT (Detai_3
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
PROPERTY AND EQUIPMENT | ||
Depreciation Expense | $ 393,530 | $ 393,530 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Principal Payments On Long Term Debt | $ 1,564,684 | $ 8,136,378 |
Total long term debt increased | $ 0 | $ 1,620,000 |
Long Term Debt Description | The notes carry a 24-month term, 12.5% interest 10% warrant coverage and a conversion price of $1.05 | The notes carry a 24-month term, 12.5% interest 10% warrant coverage and a conversion price of $1.05 |
Senior Convertible Note | $ 1,620,000 | |
Exercise Price Of Warrants | $ 1.50 | $ 1.50 |
Maximum [Member] | Mining Rights [Member] | ||
Offering Amount | $ 12,500,000 | $ 12,500,000 |
Investing Amount | 500,000 | 500,000 |
Minimum [Member] | ||
Offering Amount | $ 25,000,000 | $ 25,000,000 |
RIGHT OF USE ASSETS AND LEASE_2
RIGHT OF USE ASSETS AND LEASES (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
RIGHT OF USE ASSETS AND LEASES (Details) | |||
ROU asset | $ 704,627 | $ 726,194 | $ 0 |
Operating lease assets, Current | 80,858 | 0 | |
Operating lease assets, Non-current | 0 | ||
Operating lease assets | $ 695,566 | $ 0 |
RIGHT OF USE ASSETS AND LEASE_3
RIGHT OF USE ASSETS AND LEASES (Details 1) | Mar. 31, 2022USD ($) |
RIGHT OF USE ASSETS AND LEASES (Details) | |
2023 | $ 80,858 |
2024 | 71,801 |
2025 | 59,690 |
2026 | 68,414 |
2027 and thereafter | $ 414,802 |
RIGHT OF USE ASSETS AND LEASE_4
RIGHT OF USE ASSETS AND LEASES (Details Narrative) | Oct. 08, 2021USD ($)ft² | Aug. 17, 2021USD ($)a | Mar. 31, 2022USD ($)ft² |
Rent For The Office Space | $ 4,745 | $ 5,726 | |
Sublease | $ 3,500 | ||
Rental Lease Expired Date | December 2026 | ||
Amended Lease | The amended lease has a ten-year term and $5,869 per month rate | ||
Sublease Term | 2 years | 5 years | |
Warehouse Space | ft² | 6,700 | 6,700 | |
Discounted lease payment rate | 10.82% | ||
Commercial Land Lease Sublease Area | a | 7 | ||
Rare Earth Commercial Purification Facility Lease [Member] | |||
Rent For The Office Space | $ 1,702 | ||
Rental Lease Expired Date | January 1, 2030 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative1) - USD ($) | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Oct. 01, 2021 | |
Invested amount in FUB minerals | $ 2,500,000 | $ 2,500,000 | $ 250,000 | |
Amounts Payable Under The Agreement | $ 9,784 | |||
Royalty Expense | 819,477 | 568,182 | ||
LRR [Member] | ||||
Invested amount in FUB minerals | $ 25,000 | |||
Ownership Percentage | 100.00% | |||
American Opportunity Venture II, LLC [Member] | March 25, 2021 [Member] | ||||
Ownership Percentage | 50.00% | |||
Common Of Shares Exchange For Equity Method Investment | 15,750,000 | |||
LRR [Member] | ||||
Amount Paid To Related Party | $ 1,574,015 | 113,873 | ||
Amount Payable To Related Party | $ 839,280 | 0 | ||
Terms Of Contract, Description | The contract terms state that service costs are passed through to the Company with a 10% mark-up and a 50% share of cost savings which includes payroll covering aforementioned members of the Company’s management | |||
Total Amount Owed From Related Party | $ 2,793,658 | |||
Land Betterment Corporation [Member] | Contract Services Agreement [Member] | ||||
Total Amount Owed From Related Party | 0 | 712,872 | ||
Royalty Expense | 57,135 | 80,146 | ||
Repayment To Related Party | 0 | 0 | ||
Advance From Related Party | 0 | $ 0 | ||
WCC [Member] | ||||
Invested amount in FUB minerals | $ 2,250,000 | |||
Ownership Percentage | 50.00% |
EQUITY TRANSACTIONS (Details)
EQUITY TRANSACTIONS (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Expected Dividend Yield | 0.00% | 0.00% |
Maximum [Member] | Mining Rights [Member] | ||
Expected Volatility | 123.00% | 123.00% |
Expected Life Of Warrants | 1 year 7 months 18 days | 1 year 7 months 18 days |
Risk-free Rate | 1.40% | 1.40% |
Minimum [Member] | ||
Expected Volatility | 617.00% | 617.00% |
Expected Life Of Warrants | 5 years 7 months 1 day | 5 years 7 months 1 day |
Risk-free Rate | 1.62% | 1.62% |
EQUITY TRANSACTIONS (Detail 1)
EQUITY TRANSACTIONS (Detail 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Weighted Average Contractual Life in Years [Member] | ||
Exercisable (vested) Beginning Weighted Average | $ 121,018 | $ 7,453,214 |
Granted, Aggregate Intrinsic Value | 121,018 | 18,000 |
Forfeited Or Expired, Aggregate Intrinsic Value | 0 | 0 |
Exercised, Aggregate Intrinsic Value | 54,080 | 5,321,781 |
Exercisable (vested) Ending Weighted Average | 66,938 | 18,277,625 |
Ending Balance Intrinsic | $ 66,938 | $ 18,277,625 |
Weighted Average Exercise Price [Member] | ||
Beginning Exercisable (vested) Weighted Average | 2 years 8 months 8 days | 2 years 1 month 25 days |
Granted | 0 years | 4 years 6 months 7 days |
Forfeited Or Expired | 0 years | 0 years |
Exercised | 2 years | 3 years 1 month 3 days |
Ending Balance Weighted Average | 3 years 10 months 9 days | 1 year 7 months 18 days |
Exercisable (vested) Ending Weighted Average | 3 years 10 months 9 days | 1 year 7 months 18 days |
Warrants [Member] | ||
Beginning Exercisable (vested) Weighted Average Exercise Price | $ 2.25 | $ 1.135 |
Granted | 0 | 3.883 |
Forfeited Or Expired, Weighted Average Exercise Price | 0 | 0 |
Exercised, Weighted Average Exercise Price | 1.50 | 1.215 |
Ending Balance Exercise | 1.14 | 1.139 |
Ending Exercisable (vested) Weighted Average Exercise Price | $ 1.14 | $ 1.139 |
Novusterra, Inc [Member] | March 25, 2021 [Member] | ||
Exercisable Beginning Exercise | 10,213,764 | 8,401,221 |
Granted | 0 | 60,000 |
Forfeited Or Expired | 0 | 0 |
Exercised | 187,250 | 1,681,022 |
Outstanding Ending Balance | 10,026,514 | 6,780,199 |
Exercisable Ending Exercise | 10,026,514 | 6,780,199 |
EQUITY TRANSACTIONS (Detail 2)
EQUITY TRANSACTIONS (Detail 2) - Option [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Beginning Balance Option | 4,209,269 | 2,159,269 |
Beginning Exercisable Option | 3,159,268 | 888,659 |
Granted | 0 | 75,000 |
Forfeited Or Expired | 0 | 50,000 |
Exercised | 0 | 0 |
Ending Balance Option | 4,209,269 | 2,184,269 |
Exercisable Ending Option | 4,209,269 | 938,659 |
Beginning Outstanding Exercise | $ 1.665 | $ 1.606 |
Exercisable Beginning Exercise | 1.517 | 1.581 |
Forfeited Or Expired, Weighted Average Exercise Price | 0 | 1.050 |
Ending Outstanding Exercise | 1.980 | 1.651 |
Ending Exercisable Exercise | $ 1.980 | $ 1.739 |
Beginningbalance Weighted Average | 5 years 4 months 20 days | 5 years 7 months 28 days |
Exerisable Beginning Weighted Average | 4 years 10 months 28 days | 5 years 17 days |
Ending Balance Weighted Average | 6 years 9 months 14 days | 5 years 7 months 1 day |
Exercisable Ending Weighted Average | 6 years 9 months 14 days | 5 years 3 months 3 days |
Beginning Balance Intrinsic value | $ 3,186,870 | $ 1,919,129 |
Outstanding Balance Intrinsic value | 3,141,183 | 749,470 |
Forfeited Or Expired, Aggregate Intrinsic Value | 0 | 0 |
Exercised, Aggregate Intrinsic Value Of Options | 0 | 0 |
Ending Balance Intrinsic value | 3,257,470 | 5,010,909 |
Ending Exercisable Intrinsic value | $ 3,257,470 | $ 2,149,710 |
EQUITY TRANSACTIONS (Details Na
EQUITY TRANSACTIONS (Details Narrative) - USD ($) | 3 Months Ended | ||||||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 30, 2022 | Jan. 13, 2022 | Feb. 07, 2021 | Feb. 02, 2021 | Jan. 26, 2021 | |
Employee Stock Compensation Expense | $ 199,843 | $ 262,025 | |||||
Common Shares Class A [Member] | |||||||
Shares Issued | 22,500 | 884,229 | 47,500 | 117,250 | |||
Conversion amount | $ 1,006,726 | ||||||
Exercise Price | $ 1.50 | $ 1.50 | $ 1.50 | ||||
Common Shares Class A [Member] | Warrant A-11 [Member] | |||||||
Shares Issued | 50,000 | ||||||
Exercise Price | $ 4.25 | ||||||
Warrants expiration date | Feb. 7, 2026 | ||||||
Common Shares Class A [Member] | Warrant A-10 [Member] | |||||||
Shares Issued | 10,000 | ||||||
Exercise Price | $ 2.05 | ||||||
Warrants expiration date | Jan. 26, 2024 | ||||||
Common Shares Class A [Member] | Warrant C-37 [Member] | |||||||
Shares Issued | 60,000 | ||||||
Exercise Price | $ 1.50 | ||||||
Warrants expiration date | Feb. 2, 2023 | ||||||
Shares Issuable Upon Exercise Of Warrant, Amount | $ 600,000 |
CONTINGENCIES (Details Narrativ
CONTINGENCIES (Details Narrative) | Oct. 08, 2021USD ($)ft² | Aug. 17, 2021USD ($)a | Mar. 31, 2022USD ($)ft² | Dec. 31, 2021USD ($) | Apr. 03, 2019USD ($) |
Sublease Term | 2 years | 5 years | |||
Rent For The Office Space | $ 4,745 | $ 5,726 | |||
Sublease | $ 3,500 | ||||
Commercial Land Lease Sublease Area | a | 7 | ||||
Warehouse Space | ft² | 6,700 | 6,700 | |||
Amended Lease | The amended lease has a ten year term and $5,869 per month rate | ||||
Rental Lease Expired Date | December 2026 | ||||
Accrued Liabilities | $ 1,001,457 | $ 1,325,286 | |||
KCC [Member] | |||||
Accrued Liabilities | 1,432,077 | ||||
Commonwealth of Kentucky [Member] | Kentucky Energy Cabinet [Member] | |||||
Accrued Liabilities | 351,303 | ||||
Claims Amounts | 856,498 | ||||
Mine Health Safety [Member] | |||||
Claims Amounts | 1,415,590 | ||||
Warrant C-37 [Member] | Common Shares Class A [Member] | |||||
Settlement Of Reclamation Issue | $ 100,000 | ||||
Remaining Amount Settlement | $ 280,000 | ||||
Rare Earth Commercial Purification Facility Lease [Member] | |||||
Rent For The Office Space | $ 1,702 | ||||
Rental Lease Expired Date | January 1, 2030 |