American Resources (AREC) 10-Q 14 Nov 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2022	Nov. 14, 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	true
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2022
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2022
Entity Ex Transition Period	false
Entity Common Stock Shares Outstanding		68,703,224
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-55456
Entity Incorporation State Country Code	FL
Entity Tax Identification Number	46-3914127
Entity Address Address Line 1	12115 Visionary Way
Entity Address City Or Town	Fishers
Entity Address State Or Province	IN
Entity Address Postal Zip Code	46038
City Area Code	317
Local Phone Number	855-9926
Security 12b Title	Class A Common, $0.0001 Par Value
Trading Symbol	AREC
Security Exchange Name	NASDAQ
Entity Interactive Data Current	Yes

CONSOLIDATED CONDENSED BALANCE

CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($)	Sep. 30, 2022	Dec. 31, 2021
CURRENT ASSETS
Cash	$ 3,769,465	$ 11,492,702
Accounts Receivable	5,671,043	3,175,636
Inventory	730,023	0
Prepaid fees	1,054,342	624,605
Total Current Assets	11,224,873	15,292,943
LONG-TERM ASSETS
Cash - restricted	1,086,971	1,095,411
Property and Equipment, Net	15,064,592	22,903,154
Right of use assets, net	5,511,519	726,194
Investment in LLC - Related Party	3,740,438	2,500,000
Note Receivable	685,000	350,000
Total Long-Term Assets	26,088,520	27,574,759
TOTAL ASSETS	37,313,393	42,867,702
CURRENT LIABILITIES
Accounts payable	3,321,172	3,245,566
Non-Trade payables	1,959,900	1,950,567
Accounts payable - related party	3,919,796	3,932,716
Accrued interest	42,013	1,325,286
Due to affiliate	69,000	69,000
Current portion of debt	332,252	5,283,647
Current portion of convertible debt, (net of unamortized discount of $0 and $40,655)	9,485,418	571,618
Current portion of operating lease liabilities, net	88,791	151,806
Current portion of finance lease liabilities, net	1,472,880	0
Total Current Liabilities	20,691,222	16,530,206
LONG-TERM LIABILITIES
Notes payable	2,195,854	548,477
Convertible note payables	0	8,620,412
Reclamation liability	19,939,332	18,951,587
Operating lease liabilities, net	567,724	562,428
Finance lease liabilities, net	2,991,966	0
Total Long-Term Liabilities	25,694,876	28,682,904
Total Liabilities	46,386,098	45,213,110
STOCKHOLDERS' EQUITY (DEFICIT)
AREC - Class A Common stock: $.0001 par value; 230,000,000 shares authorized, 66,860,522 and 65,084,992 shares issued and outstanding	6,685	6,508
Additional paid-in capital	167,180,697	163,441,655
Accumulated deficit	(176,196,598)	(165,793,571)
Total American Resources Corporation Stockholders' Equity (Deficit)	(9,009,216)	(2,345,408)
Non controlling interest	(63,489)	0
Total stockholders' deficit	(9,072,705)	(2,345,408)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$ 37,313,393	$ 42,867,702

CONSOLIDATED CONDENSED BALANC_2

CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical ) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
CONSOLIDATED CONDENSED BALANCE SHEETS
Unamortized Discount, Current Portion Of Convertible Debt	$ 0	$ 40,655
Common Stock, Par Value	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	230,000,000	230,000,000
Common Stock, Shares Issued	66,860,522	65,084,992
Common Stock, Shares Outstanding	66,860,522	65,084,992

CONSOLIDATED CONDENSED STATEMEN

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
Coal Sales	$ 9,441,366	$ 2,779,193	$ 34,442,413	$ 3,121,782
Metal Aggregating, Processing and Sales	4,988	20,510	45,507	48,385
Royalty Income	63,384	14,220	301,646	47,614
Total Revenue	9,509,738	2,813,923	34,789,566	3,217,781
Cost of Coal Sales and Processing	(6,955,403)	(3,068,847)	(15,415,398)	(4,813,688)
Accretion Expense	(356,303)	(305,636)	(987,744)	(916,909)
Depreciation	(602,503)	(495,676)	(1,858,886)	(1,364,220)
Amortization of Mining Rights	(311,685)	(314,765)	(926,764)	(938,135)
General and Administrative	(734,515)	(826,480)	(2,658,376)	(2,501,548)
Professional Fees	(302,732)	(287,414)	(889,157)	(1,191,397)
Production Taxes and Royalties	(1,185,970)	(215,681)	(2,791,455)	(883,339)
Development Costs	(3,692,774)	(5,142,306)	(22,009,368)	(10,009,860)
Total Operating Expenses	(14,141,885)	(10,656,805)	(47,537,148)	(22,619,096)
Net Loss from Operations	(4,632,147)	(7,842,882)	(12,747,582)	(19,401,315)
Other Income (loss)	36,224	(58,340)	194,381	(469,927)
Unrealized loss on trading securities	(1,960)	0	(9,562)	0
Gain (loss) on cancelation of debt	(362,377)	0	3,050,775	0
Amortization of debt discount and issuance costs	0	(3,179)	0	(8,637)
Interest Income	1,162	85,901	14,489	187,293
Interest expense	(310,681)	(1,095,021)	(969,018)	(2,260,965)
Total Other income (expense)	(637,632)	(1,070,639)	2,281,065	(2,552,236)
Net Income (Loss)	(5,226,840)	(8,913,521)	(10,466,517)	(21,953,551)
Less: Non-Controlling interest	42,939	0	63,489	0
Net loss attributable to American Resources Corporation shareholders	$ (5,226,840)	$ 0	$ (10,403,028)	$ 0
Net loss per common share - basic and diluted	$ (0.08)	$ (0.15)	$ (0.16)	$ (0.41)
Weighted average common shares outstanding	66,377,788	60,065,087	65,846,220	53,087,092

CONSOLIDATED CONDENSED STATEM_2

CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (DEFICIT) (UNAUDITED) - 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	$ (20,005,543)	$ 4,256	$ 113,279,448	$ (133,289,247)
Adjustment for Prior Year	8	$ 40	114,991	(115,023)
Adjusted Opening Balance, shares		42,972,762
Adjusted Opening Balance, amount	(20,005,535)	$ 4,296	113,394,439	(133,404,270)
Shares issued in conjunction with warrant and option conversions, shares		1,705,508
Shares issued in conjunction with warrant and option conversions, amount	2,257,712	$ 171	2,257,541	0
Shares issued in connection with debt and payable conversions, shares		4,757,628
Shares issued in connection with debt and payable conversions, amount	10,131,984	$ 476	10,131,508	0
Shares issued pursuant to restricted stock offering, shares		425,000
Shares issued pursuant to restricted stock offering, amount	1,275,000	$ 43	1,274,957	0
Shares issued for services, shares		10,000
Shares issued for services, amount	10,000	$ 1	9,999	0
Amortization of Warrant and Stock Option Expense	115,025	0	115,025	0
Net Loss	(6,389,857)	$ 0	0	(6,389,857)
Balance, shares at Mar. 31, 2021		49,870,898
Balance, amount at Mar. 31, 2021	(12,605,671)	$ 4,987	127,183,469	(139,794,127)
Balance, shares at Dec. 31, 2020		42,972,762
Balance, amount at Dec. 31, 2020	(20,005,543)	$ 4,256	113,279,448	(133,289,247)
Shares issued for services, amount	0
Net Loss	(21,953,551)
Stock Compensation - Options	478,665
Net loss	(21,953,551)
Balance, shares at Sep. 30, 2021		60,829,718
Balance, amount at Sep. 30, 2021	2,767,483	$ 6,083	158,119,222	(155,357,822)
Balance, shares at Mar. 31, 2021		49,870,898
Balance, amount at Mar. 31, 2021	(12,605,671)	$ 4,987	127,183,469	(139,794,127)
Shares issued in connection with debt and payable conversions, shares		380,289
Shares issued in connection with debt and payable conversions, amount	625,276	$ 38	625,237	0
Net Loss	(6,650,174)	$ 0	0	(6,650,174)
Shares issued in connection with warrant and option conversions, shares		25,000
Shares issued in connection with warrant and option conversions, amount	11,703	$ 3	11,700	0
Shares issued in connection with registered offering, shares		8,600,000
Shares issued in connection with registered offering, amount	27,943,000	$ 860	27,942,140	0
Amortization of debt discount	(128,568)	0	(128,568)	0
Stock Compensation - Options	115,025	$ 0	115,025	0
Balance, shares at Jun. 30, 2021		58,876,187
Balance, amount at Jun. 30, 2021	9,310,590	$ 5,888	155,749,003	(146,444,301)
Shares issued in connection with debt and payable conversions, shares		1,951,531
Shares issued in connection with debt and payable conversions, amount	2,635,385	$ 195	2,635,380	0
Shares issued for services, amount	0
Net Loss	(8,913,521)	$ 0	0	(8,913,521)
Shares issued in connection with warrant and option conversions, shares		2,000
Shares issued in connection with warrant and option conversions, amount	2,100	$ 0	2,100	0
Amortization of debt discount	(368,876)	0	(368,876)	0
Stock Compensation - Options	101,615	$ 0	101,615	0
Balance, shares at Sep. 30, 2021		60,829,718
Balance, amount at Sep. 30, 2021	2,767,483	$ 6,083	158,119,222	(155,357,822)
Balance, shares at Dec. 31, 2021		65,084,992
Balance, amount at Dec. 31, 2021	(2,345,408)	$ 6,508	163,441,655	(165,793,571)	$ 0
Net Loss	(2,752,902)	0		(2,745,018)	(7,884)
Amortization of debt discount	(40,655)	0	(40,655)	0	0
Stock Compensation - Options	199,843	$ 0	199,843	0	0
Issuance of common shares for Warrant Conversion, shares		488,594
Issuance of common shares for Warrant Conversion, amount	665,391	$ 50	665,341	0	0
Issuance of common shares for Conversion of debt and interest, shares		582,885
Issuance of common shares for Conversion of debt and interest, amount	622,210	$ 58	622,152	0	0
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)
Balance, shares at Dec. 31, 2021		65,084,992
Balance, amount at Dec. 31, 2021	(2,345,408)	$ 6,508	163,441,655	(165,793,571)	0
Shares issued for services, amount	38,800
Net Loss	(10,466,517)
Stock Compensation - Options	560,252
Net loss	(10,466,517)
Balance, shares at Sep. 30, 2022		66,860,522
Balance, amount at Sep. 30, 2022	(9,072,705)	$ 6,685	167,180,697	(176,196,598)	(63,489)
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)
Net Loss	(2,443,834)	0	0	(2,431,169)	(12,666)
Stock Compensation - Options	190,024	$ 0	190,024	0	0
Issuance of common shares for Warrant Conversion, shares		5,364
Issuance of common shares for Warrant Conversion, amount	8,064	$ 0	8,064	0	0
Issuance of common shares for Conversion of debt and interest, shares		451,250
Issuance of common shares for Conversion of debt and interest, amount	1,200,000	$ 45	1,199,955	0	0
Balance, shares at Jun. 30, 2022		66,613,085
Balance, amount at Jun. 30, 2022	(4,697,267)	$ 6,661	166,286,379	(170,969,757)	(20,550)
Shares issued for services, shares		20,000
Shares issued for services, amount	38,800	$ 2	38,798
Net Loss	(5,226,840)
Stock Compensation - Options	170,385	$ 0	170,385	0	0
Issuance of common shares for Warrant Conversion, shares		55,437
Issuance of common shares for Warrant Conversion, amount	83,156	$ 5	83,151	0	0
Issuance of common shares for payables conversion, shares		172,000
Issuance of common shares for payables conversion, amount	602,000	$ 17	601,983
Net loss	(5,269,779)	$ 0	0	(5,226,840)	(42,939)
Balance, shares at Sep. 30, 2022		66,860,522
Balance, amount at Sep. 30, 2022	$ (9,072,705)	$ 6,685	$ 167,180,697	$ (176,196,598)	$ (63,489)

CONSOLIDATED CONDENSED STATEM_3

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash Flows from Operating activities:
Net loss	$ (10,466,517)	$ (21,953,551)
Adjustments to reconcile net loss to net cash used in operating activities:
Gain on debt forgiveness	(3,050,771)	0
Depreciation expense	1,858,886	1,364,220
Amortization of mining rights	926,764	938,136
Accretion expense	1,274,320	916,909
Amortization expense of right to use assets	(378,198)	0
Amortization of issuance costs and debt discount	0	4,095,688
Options expense	560,252	478,665
Warrant expense	756,611	0
Issuance of common shares for service	38,800	0
Change in current assets and liabilities:
Accounts receivable	(2,495,408)	(1,839,047)
Inventory	(730,023)	(148,840)
Prepaid expenses and other assets	(429,737)	(93,332)
Accounts payable	269,564	(2,709,020)
Accrued interest	(3,194)	(615,701)
Accounts payable - related party	(12,920)	1,638,973
Net cash (used in)/generated from operations	(11,881,575)	(17,441,221)
Cash Flows from Investing activities:
Cash used in investments in LLCs	(1,240,438)	(2,250,000)
Cash invested in note receivable	(335,000)	0
Cash received (paid) for PPE, net	5,052,912	(2,825,701)
Net cash (used in)/generated from investing activities	3,477,474	(5,075,701)
Cash Flows from Financing activities:
Principal payments on finance lease	(286,573)	0
Principal payments on debt	(1,604,003)	(641,409)
Proceeds from convertible note	0	600,000
Proceeds from the sale of common stock, net	0	29,218,000
Proceeds from debt	2,563,000	0
Proceeds from warrant conversions	0	2,269,425
Net cash (used in)/generated from financing activities	672,422	31,446,016
Increase(decrease) in cash and restricted cash	(7,731,677)	8,929,094
Cash and restricted cash, beginning of period	12,588,113	11,201,203
Cash and restricted cash, end of period	4,856,436	20,130,297
Supplemental Information
Cash paid for interest	$ 64,094	$ 42,426
Conversion of debt, interest and payables to common shares	2,424,210	8,485,384
Acquisition of right of use assets for lease obligations	$ 6,252,088	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Summary Of Significant Accounting Policies	NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES American Resources Corporation (ARC or the Company) operates through subsidiaries that were acquired in 2019, 2018, 2016 and 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 American Carbon Corp (ACC), Deane Mining, LLC (Deane), ERC Mining Indiana Corp (ERC), McCoy Elkhorn Coal LLC (McCoy), Knott County Coal LLC (KCC), Wyoming County Coal (WCC),Perry County Resources LLC (PCR), American Rare Earth LLC (ARE), American Metals LLC (AM) and American Opportunity Venture II, LLC (AOV II). 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 and nine months ended September 30, 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 30, 2022. Convertible Preferred Securities: Derivatives and Hedging Activities We also follow ASC 480-10, Distinguishing Liabilities from Equity Cash Restricted cash: During 2019 the Company established a reclamation bonding collateral fund for ERC Mining Indiana. The balance of the restricted cash being held totaled 250,000 and $250,000 as of September 30, 2022 and December 31, 2021. During 2020, the Company established an escrow account for certain assumed liabilities in the PCR acquisition. The balance as of September 30, 2022 and December 31, 2021 was $0 and $347,070, respectively. The funds were used to pay for remaining assumed liabilities. During 2020, the Company established an environmental escrow account with the Commonwealth of Kentucky. The balance as of September 30, 2022 and December 31, 2021 was $500,000 and $500,000, respectively. During 2020, the Company established a reclamation bonding collateral fund for McCoy. The balance of the restricted cash being held totaled $105,770 and $105,770 as of September 2022 and December 31, 2021, respectively. During 2021, the Company established a reclamation bonding collateral fund for WCC. The balance of the restricted cash being held totaled $231,201 and $231,201 as of September 30, 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 six months ended September 30, 2022 and June 30, 2021. September 30, 2022 September 30, 2021 Cash $ 3,769,465 $ 19,121,714 Restricted Cash 1,086,971 1,008,583 Total cash and restricted cash presented in the consolidated statement of cash flows $ 4,856,436 $ 20,130,297 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 periods ending September 30, 2022 and 2021, $- and $- were incurred for loss on settlement on ARO, respectively. The table below reflects the changes to our ARO: Balance at December 31, 2021 $ 18,951,587 Accretion – nine months September 30, 2022 987,744 Reclamation work – nine months September 30, 2022 - Reduction of ARO due to dispositions - Balance at September 30, 2022 $ 19,939,332 Balance at December 31, 2020 $ 17,855,304 Accretion – nine months September 30, 2021 916,909 Reclamation work – nine months September 30, 2021 - Reduction of ARO due to dispositions - Balance at September 30, 2021 $ 18,772,213 Allowance For Doubtful Accounts: Allowance for trade receivables as of September 30, 2022 and December 31, 2021 amounted to $0, for both periods. Allowance for other accounts receivables, including note receivables as of September 30, 2022 and December 31, 2021 amounted to $0 and $0, respectively. Trade and loan receivables are carried at amortized cost, net of allowance for losses. Amortized cost approximated book value as of September 30, 2022 and December 31, 2021. Prepaid Fees and Advance Royalties: Inventory: Reclassifications:

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	9 Months Ended
	Sep. 30, 2022
PROPERTY AND EQUIPMENT
Property And Equipment	NOTE 2 - PROPERTY AND EQUIPMENT At September 30, 2022 and December 31, 2021, property and equipment were comprised of the following: September 30, 2022 December 31, 2021 Processing and rail facility $ 2,488,391 $ 11,591,273 Underground equipment 8,625,574 9,687,667 Surface equipment 2,389,863 3,201,464 Coal refuse storage 12,134,192 12,134,192 Mine Development 545,043 561,575 Construction in Progress 469,720 108,122 Land 1,617,435 1,572,435 Less: Accumulated depreciation (13,205,626 ) (15,953,575 ) Total Property and Equipment, Net $ 15,064,592 $ 22,903,154 Depreciation expense amounted to $602,503 and $495,676 for the three-month periods September 30, 2022 and September 30, 2021, respectively. Depreciation expense amounted to $1,858,886 and $1,364,220 for the nine-month periods September 30, 2022 and September 30, 2021, respectively. The estimated useful lives are as follows: Processing and Rail Facilities 7-20 years Surface Equipment 7 years Underground Equipment 5 years Rare Earth Processing Equipment 5 Years Mining Rights 5-10 years Coal Refuse Storage 10 years

NOTES PAYABLE

NOTES PAYABLE	9 Months Ended
	Sep. 30, 2022
NOTES PAYABLE
Notes Payable	NOTE 3 - NOTES PAYABLE During the three-month period ended September 30, 2022, principal reductions on long term debt totaled $325,191. During the three-month period ended September 30, 2021, principal reductions on long term debt totaled $42,567.

RIGHT OF USE ASSETS AND LEASES

RIGHT OF USE ASSETS AND LEASES	9 Months Ended
	Sep. 30, 2022
RIGHT OF USE ASSETS AND LEASES
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. On November 8, 2021, American Carbon Corp entered into a Financial Lease for equipment at 2069 Highway 194 E., Meta, KY 41501. The lease is for a period of three years with a monthly rate of $17,660. There is an option to purchase the equipment at the end of the lease for $1. On June 22,2022, American Rare Earth entered into a Financial Lease for equipment at 1716 Pleasant Street, Noblesville, IN 46060. The lease is for a period of three years with a monthly rate of $31,800. There is an option to purchase the equipment at the end of the lease for $1. At September 30, 2022, right of use assets and liabilities were comprised of the following: September 30, 2022 September 30, 2021 Assets: ROU asset $ 5,511,517 $ - Liabilities Current: Operating lease liabilties $ 88,791 $ - Financing lease liabilities 1,472,880 - Non-current: Operating lease liabilities 567,724 - Financing lease liabilities 2,991,966 - As of September 30, 2022, remaining maturities of lease liabilities were as follows: Operating Finance 2023 88,791 1,472,880 2024 59,480 1,599,520 2025 64,382 1,392,446 2026 71,396 - 2027 and thereafter 372,466 -

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2022
RELATED PARTY TRANSACTIONS
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 September 30, 2022, royalty expense incurred with LRR amounted to $113,218 and amounts advanced from LRR amounted $0 and amounts repaid amounted to $0. As of September 30, 2022, total amounts owed LRR amounted to $194,502. For the three-month period ending September 30, 2021, royalty expense incurred with LRR amounted to $199,289 and amounts advanced from LRR amounted to $0 and amounts repaid to LRR amounted to $0. As of September 30, 2021, total amounts owed LRR amounted to $41,317. Land Betterment Corp On February 13, 2020, 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 three-months ended September 30, 2022 amounts incurred under the agreement amounted to $1,052,139 and amounts paid totaled $900,028. For the three-months ended September 30, 2022, service charges covering members of the Company’s management amounted to $0. For the nine-months ended September 30, 2022 amounts incurred under the agreement amounted to $4,677,415 and amounts paid totaled $2,801,506. For the six-months ended June 30, 2022, service charges covering members of the Company’s management amounted to $0. For the three-months ended September 30, 2021 amounts incurred under the agreement amounted to $1,618,627 and amounts paid totaled $319,202. For the three-months ended June 30, 2021, service charges covering members of the Company’s management amounted to $0. For the nine-months ended September 30, 2021 amounts incurred under the agreement amounted to $3,555,587 and amounts paid totaled $2,273,749. For the six-months ended June 30, 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 September 30, 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 September 30, 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 September 30, 2022, 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	9 Months Ended
	Sep. 30, 2022
EQUITY TRANSACTIONS
Equity Transactions	NOTE 6 – EQUITY TRANSACTIONS Common Share Transactions Employee stock compensation expense for the three-month period ending September 30, 2022 and 2021 amounted to $170,385 and $115,025 respectively. Employee stock compensation expense for the nine-month period ending September 30, 2022 and 2021 amounted to $560,252 and $331,665 respectively. Conversion of debt and interest for the three-month period ending September 30, 2022 and 2021 amounted to $602,000 and $624,537 respectively. Conversion of debt and interest for the nine-month period ending September 30, 2022 and 2021 amounted to $2,424,210 and $10,253,912 respectively. Issuance of common shares for professional services for the three-month period ending September 30, 2022 and 2021 amounted to $38,800 and $0 respectively. Issuance of common shares for professional services for the nine-month period ending September 30, 2022 and 2021 amounted to $38,800 and $0 respectively. 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. On June 6, 2022, the Company issued 5,364 shares of Class A Common Stock based upon a cash pay warrant exercise. The share price at issuance was $1.50. On September 6, 2022, the Company issued 13,437 shares of Class A Common Stock based upon a cash pay warrant exercise. The share price at issuance was $1.50. On September 9, 2022, the Company issued 42,000 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. On March 11, 2021, the Company issued Common Stock Purchase Warrant “C-38” in conjunction with a restricted stock purchase. The warrant provides the option to purchase 42,500 Class A Common Shares at a price of $5.00. The warrants expire on March 11, 2023. On March 12, 2021, the Company issued Common Stock Purchase Warrant “C-39” in conjunction with a restricted stock purchase. The warrant provides the option to purchase 42,500 Class A Common Shares at a price of $5.00. The warrants expire on March 12, 2023. On March 15, 2021, the Company issued Common Stock Purchase Warrant “C-39” in conjunction with consulting services. The warrant provides the option to purchase 75,000 Class A Common Shares at a price of $4.59. The warrants expire on March 15, 2026. On March 16, 2021, the Company issued Common Stock Purchase Warrant “C-40” in conjunction with a restricted stock purchase. The warrant provides the option to purchase 21,250 Class A Common Shares at a price of $5.00. The warrants expire on March 16, 2023. On June 9, 2021, the Company issued Common Stock Purchase Warrant “C-38” in conjunction with a common stock offering. The warrant provides the option to purchase 2,150,000 Class A Common Shares at a price of $3.50. The warrants expire on June 9, 2026. On June 9, 2021, the Company issued Common Stock Purchase Warrant “C-39” in conjunction with a common stock offering. The warrant provides the option to purchase 2,150,000 Class A Common Shares at a price of $3.50. The warrants expire on June 9, 2026. The Company uses the Black Scholes option pricing model to value its warrants and options. The significant inputs are as follows: September 30, 2022 Expected Dividend Yield 0 % Expected volatility 87.97 % Risk-free rate 0.870 % Expected life of warrants 1.592-6.60 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 4,601,250 $ 3.531 4.814 $ 69,700 Forfeited or Expired - $ - - $ - Exercised 1,732,508 $ 0.86 2.16 $ 7,038,153 Outstanding – September 30, 2021 11,296,963 $ 2.25 2.39 $ 4,221,721 Exercisable (Vested) – September 30, 2021 11,296,963 $ 2.25 2.69 $ 4,221,721 Exercisable (Vested) – December 31, 2021 10,213,764 $ 2.25 2.69 $ 121,018 Granted - $ - - $ - Forfeited or Expired - $ - - $ - Exercised 248,051 $ 1.50 2.00 $ - Outstanding - September 30, 2022 9,965,713 $ 1.14 3.86 $ 49,193 Exercisable (Vested) - September 30, 2022 9,965,713 $ 1.14 3.86 $ 49,193 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 325,000 $ 2.30 6.74 $ 105,000 Forfeited or Expired 275,000 $ 1.45 3.54 $ 199,500 Exercised 25,000 $ 1.640 6.562 $ 41,500 Outstanding – September 30, 2021 2,184,269 $ 1.67 5.369 $ 1,416,548 Exercisable (Vested) – September 30, 2021 1,134,268 $ 1.52 4.91 $ 774,380 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 - September 30, 2022 4,209,269 $ 1.980 6.49 $ 3,257,470 Exercisable (Vested) - September 30, 2022 4,209,269 $ 1.980 6.49 $ 3,257,470

CONTINGENCIES

CONTINGENCIES	9 Months Ended
	Sep. 30, 2022
CONTINGENCIES
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. These claims include amounts assessed by the Kentucky Energy Cabinet totaling $1,430,997, the Company has accrued $1,707,621 as a payable to the Commonwealth of Kentucky including amounts owed to the Kentucky Energy Cabinet. Claims assessed by the Mine Health Safety Administration totaling $754,398 of which the Company has accrued $351,071.32 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 $299,038. 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). The Company, through its investment in AOV is proportionally a sponsor of the special purpose acquisition Company, American Acquisition Opportunity Inc. (AMAO) As such it is proportionally obligated to fund operating and working capital deficits of AMAO up to $800,000. As of June 30, 2022, amounts under the note totaled $485,900 and has been repaid subsequent to the balance sheet date. 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	9 Months Ended
	Sep. 30, 2022
SUBSEQUENT EVENTS
Subsequent Events	NOTE 8 - SUBSEQUENT EVENTS On October 21, 2022, American Resources Corporation’s (“American Resources” or the “Company”) and HG Ventures LLC, the corporate venture arm of The Heritage Group (collectively “Heritage”) entered into a Sales Purchase Agreement whereby Heritage agreed to sell all of its 7.5% ownership and interest in the Company’s subsidiary, ReElement Technologies LLC (formerly American Rare Earth LLC) (“ReElement”)and its Warrant to purchase an additional Membership Interest in ReElement, entered into on January 10, 2022 and filed with the Securities and Exchange Commission on Form 8-K on January 14, 2022, to American Resources for an undisclosed consideration paid by American Resources Corporation to HG Ventures LLC. Additionally and simultaneously, American Resources and HG Ventures mutually agreed to terminate their Collaboration Agreement (the “Termination Agreement” and collectively the “Agreements”) also established and entered into on January 10, 2022 and filed with the Securities and Exchange Commission on Form 8-K on January 14, 2022.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 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), ERC Mining Indiana Corp (ERC), McCoy Elkhorn Coal LLC (McCoy), Knott County Coal LLC (KCC), Wyoming County Coal (WCC),Perry County Resources LLC (PCR), American Rare Earth LLC (ARE), American Metals LLC (AM) and American Opportunity Venture II, LLC (AOV II). 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 and nine months ended September 30, 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 30, 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 2019 the Company established a reclamation bonding collateral fund for ERC Mining Indiana. The balance of the restricted cash being held totaled 250,000 and $250,000 as of September 30, 2022 and December 31, 2021. During 2020, the Company established an escrow account for certain assumed liabilities in the PCR acquisition. The balance as of September 30, 2022 and December 31, 2021 was $0 and $347,070, respectively. The funds were used to pay for remaining assumed liabilities. During 2020, the Company established an environmental escrow account with the Commonwealth of Kentucky. The balance as of September 30, 2022 and December 31, 2021 was $500,000 and $500,000, respectively. During 2020, the Company established a reclamation bonding collateral fund for McCoy. The balance of the restricted cash being held totaled $105,770 and $105,770 as of September 2022 and December 31, 2021, respectively. During 2021, the Company established a reclamation bonding collateral fund for WCC. The balance of the restricted cash being held totaled $231,201 and $231,201 as of September 30, 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 six months ended September 30, 2022 and June 30, 2021. September 30, 2022 September 30, 2021 Cash $ 3,769,465 $ 19,121,714 Restricted Cash 1,086,971 1,008,583 Total cash and restricted cash presented in the consolidated statement of cash flows $ 4,856,436 $ 20,130,297
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) 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 periods ending September 30, 2022 and 2021, $- and $- were incurred for loss on settlement on ARO, respectively. The table below reflects the changes to our ARO: Balance at December 31, 2021 $ 18,951,587 Accretion – nine months September 30, 2022 987,744 Reclamation work – nine months September 30, 2022 - Reduction of ARO due to dispositions - Balance at September 30, 2022 $ 19,939,332 Balance at December 31, 2020 $ 17,855,304 Accretion – nine months September 30, 2021 916,909 Reclamation work – nine months September 30, 2021 - Reduction of ARO due to dispositions - Balance at September 30, 2021 $ 18,772,213
Allowance For Doubtful Accounts	Allowance For Doubtful Accounts: Allowance for trade receivables as of September 30, 2022 and December 31, 2021 amounted to $0, for both periods. Allowance for other accounts receivables, including note receivables as of September 30, 2022 and December 31, 2021 amounted to $0 and $0, respectively. Trade and loan receivables are carried at amortized cost, net of allowance for losses. Amortized cost approximated book value as of September 30, 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)	9 Months Ended
	Sep. 30, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule Of Restricted Cash And Cash Equivalents	September 30, 2022 September 30, 2021 Cash $ 3,769,465 $ 19,121,714 Restricted Cash 1,086,971 1,008,583 Total cash and restricted cash presented in the consolidated statement of cash flows $ 4,856,436 $ 20,130,297
Schedule Of Asset Retirement Obligations	Balance at December 31, 2021 $ 18,951,587 Accretion – nine months September 30, 2022 987,744 Reclamation work – nine months September 30, 2022 - Reduction of ARO due to dispositions - Balance at September 30, 2022 $ 19,939,332 Balance at December 31, 2020 $ 17,855,304 Accretion – nine months September 30, 2021 916,909 Reclamation work – nine months September 30, 2021 - Reduction of ARO due to dispositions - Balance at September 30, 2021 $ 18,772,213

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2022
PROPERTY AND EQUIPMENT
Schedule Of Property And Equipment	September 30, 2022 December 31, 2021 Processing and rail facility $ 2,488,391 $ 11,591,273 Underground equipment 8,625,574 9,687,667 Surface equipment 2,389,863 3,201,464 Coal refuse storage 12,134,192 12,134,192 Mine Development 545,043 561,575 Construction in Progress 469,720 108,122 Land 1,617,435 1,572,435 Less: Accumulated depreciation (13,205,626 ) (15,953,575 ) Total Property and Equipment, Net $ 15,064,592 $ 22,903,154
Schedule Of Estimated Useful Life Property And Equipment	Processing and Rail Facilities 7-20 years Surface Equipment 7 years Underground Equipment 5 years Rare Earth Processing 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)	9 Months Ended
	Sep. 30, 2022
RIGHT OF USE ASSETS AND LEASES (Tables)
Schedule Of Right Of Use Assets And Liablities	September 30, 2022 September 30, 2021 Assets: ROU asset $ 5,511,517 $ - Liabilities Current: Operating lease liabilties $ 88,791 $ - Financing lease liabilities 1,472,880 - Non-current: Operating lease liabilities 567,724 - Financing lease liabilities 2,991,966 -
Remaining Maturities Of Lease Liabilities	Operating Finance 2023 88,791 1,472,880 2024 59,480 1,599,520 2025 64,382 1,392,446 2026 71,396 - 2027 and thereafter 372,466 -

EQUITY TRANSACTIONS (Tables)

EQUITY TRANSACTIONS (Tables)	9 Months Ended
	Sep. 30, 2022
EQUITY TRANSACTIONS
Schedule Of Black scholes option pricing model	September 30, 2022 Expected Dividend Yield 0 % Expected volatility 87.97 % Risk-free rate 0.870 % Expected life of warrants 1.592-6.60 years
Schedule Of 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 4,601,250 $ 3.531 4.814 $ 69,700 Forfeited or Expired - $ - - $ - Exercised 1,732,508 $ 0.86 2.16 $ 7,038,153 Outstanding – September 30, 2021 11,296,963 $ 2.25 2.39 $ 4,221,721 Exercisable (Vested) – September 30, 2021 11,296,963 $ 2.25 2.69 $ 4,221,721 Exercisable (Vested) – December 31, 2021 10,213,764 $ 2.25 2.69 $ 121,018 Granted - $ - - $ - Forfeited or Expired - $ - - $ - Exercised 248,051 $ 1.50 2.00 $ - Outstanding - September 30, 2022 9,965,713 $ 1.14 3.86 $ 49,193 Exercisable (Vested) - September 30, 2022 9,965,713 $ 1.14 3.86 $ 49,193
Schedule Of 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 325,000 $ 2.30 6.74 $ 105,000 Forfeited or Expired 275,000 $ 1.45 3.54 $ 199,500 Exercised 25,000 $ 1.640 6.562 $ 41,500 Outstanding – September 30, 2021 2,184,269 $ 1.67 5.369 $ 1,416,548 Exercisable (Vested) – September 30, 2021 1,134,268 $ 1.52 4.91 $ 774,380 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 - September 30, 2022 4,209,269 $ 1.980 6.49 $ 3,257,470 Exercisable (Vested) - September 30, 2022 4,209,269 $ 1.980 6.49 $ 3,257,470

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash	$ 3,769,465	$ 11,492,702	$ 19,121,714
Restricted Cash	1,086,971		1,008,583
Total Cash And Restricted Cash Presented In The Consolidated Statement Of Cash Flows	$ 4,856,436		$ 20,130,297

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Beginning Balance, Amount	$ 18,951,587	$ 17,855,304
Accretion	987,744	916,909
Reclamation Work	0	0
Reduction of ARO due to dispositions	0	0
Ending Balance, Amount	$ 19,939,332	$ 18,772,213

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Asset Management Fee Reserve	$ 116,115
Loss on settlement	$ 0	$ 0
Discount Rate	10%
Allowance For Trade Receivables	$ 0		$ 0
Allowance For Other Accounts Receivables	0		0
Restricted Cash	105,770		105,770
Restricted Cash Balance	0		47,987
Restricted Cash, total	$ 250,000		250,000
Warrant A-11 [Member] | Common Shares Class A [Member]
Ownership Percentage	92.50%
January 2020 [Member] | American Opportunity Venture, LLC [Member]
Restricted Cash	$ 0		347,070
Restricted Cash, total	231,201		231,201
Escrow account balance	$ 500,000		$ 500,000

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Less: Accumulated Depreciation	$ (13,205,626)	$ (15,953,575)
Total Property And Equipment, Net	15,064,592	22,903,154
Underground equipment [Member]
Property And Equipment	8,625,574	9,687,667
Surface equipment [Member]
Property And Equipment	2,389,863	3,201,464
Mine development [Member]
Property And Equipment	545,043	561,575
Processing and rail facilities [Member]
Property And Equipment	2,488,391	11,591,273
Coal refuse storage [Member]
Property And Equipment	12,134,192	12,134,192
Construction in Progress [Member]
Property And Equipment	469,720	108,122
Land [Member]
Property And Equipment	$ 1,617,435	$ 1,572,435

PROPERTY AND EQUIPMENT (Detai_2

PROPERTY AND EQUIPMENT (Details 1)	9 Months Ended
	Sep. 30, 2022
Coal refuse storage [Member]
Estimated Useful Lives	10 years
Processing and rail facilities [Member] | Minimum [Member]
Estimated Useful Lives	7 years
Processing and rail facilities [Member] | Maximum [Member]
Estimated Useful Lives	20 years
Rare Earth Processing Equipment [Member]
Estimated Useful Lives	5 years
Underground equipment [Member]
Estimated Useful Lives	5 years
Surface equipment [Member]
Estimated Useful Lives	7 years
Mining Rights [Member] | Minimum [Member]
Estimated Useful Lives	5 years
Mining Rights [Member] | Maximum [Member]
Estimated Useful Lives	10 years

PROPERTY AND EQUIPMENT (Detai_3

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
PROPERTY AND EQUIPMENT
Depreciation Expense	$ 602,503	$ 495,676	$ 1,858,886	$ 1,364,220

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
NOTES PAYABLE (Details Narrative)
Principal reductions on long term debt	$ 325,191	$ 42,567

RIGHT OF USE ASSETS AND LEASE_2

RIGHT OF USE ASSETS AND LEASES (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
RIGHT OF USE ASSETS AND LEASES (Details)
ROU asset	$ 5,511,517		$ 0
Operating lease liabilities, current	88,791	$ 151,806	0
Financing lease liabilities, current	1,472,880	0	0
Operating lease assets, Non-current	567,724	562,428	0
Financing lease liabilities, Non-current	$ 2,991,966	$ 0	$ 0

RIGHT OF USE ASSETS AND LEASE_3

RIGHT OF USE ASSETS AND LEASES (Details 1)	Sep. 30, 2022 USD ($)
Operating Lease Liabilities [Member]
2023	$ 88,791
2024	59,480
2025	64,382
2026	71,396
2027 and thereafter	372,466
Finance Lease Liabilities [Member]
2023	1,472,880
2024	1,599,520
2025	1,392,446
2026	0
2027 and thereafter	$ 0

RIGHT OF USE ASSETS AND LEASE_4

RIGHT OF USE ASSETS AND LEASES (Details Narrative)			1 Months Ended		9 Months Ended
	Nov. 08, 2021 USD ($)	Oct. 08, 2021 USD ($) ft²	Jun. 22, 2022 USD ($)	Aug. 17, 2021 USD ($) a	Sep. 30, 2022 USD ($)
Discounted lease payment rate					10.82%
Rent For The Office Space					$ 5,726
Amended Lease					The amended lease has a ten-year term and $5,869 per month rate
Rental Lease Expired Date					December 2026
Sublease rent				$ 3,500
Sublease Term				5
Warehouse Space | ft²		6,700
Commercial Lease Rent		$ 474,500
Commercial Land Lease Sublease Area | a				7
Commercial Land Lease Term	three years	2 years
Financial lease for equipment rent	$ 17,660		$ 31,800
Financial lease equipment purchase option	$ 1		$ 1
Financial equipment lease term			three years
LRR [Member]
Rent For The Office Space					$ 1,702
Rental Lease Expired Date					January 1, 2030

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Royalty Expense	$ 1,185,970	$ 215,681	$ 2,791,455	$ 883,339
Invested amount	3,740,438		$ 3,740,438		$ 2,500,000
March, 2021 [Member] | Novusterra, Inc [Member]
Ownership Percentage			50%
Common shares exchange for equity method investment			15,750,000
LRR [Member]
Amounts payable under the agreement	0	0
Amount Paid To Related Party	0	0
Royalty Expense	113,218	199,289
Total Amount Owed From Related Party	194,502	41,317	$ 194,502	41,317
Land Betterment Exchange (LBX) [Member]
LBX token par value	250		$ 250
LBX token holding, Description			The Company is the holder of 2,000,000 LBX Tokens
Land Betterment Corporation [Member] | Contract Services Agreement [Member]
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
Amounts payable under the agreement	1,052,139	1,618,627	$ 4,677,415	3,555,587
Amount Paid To Related Party	900,028	319,202	2,801,506	2,273,749
Service charges	0	$ 0	$ 0	$ 0
American Opportunity Venture, LLC [Member] | January, 2021 [Member]
Ownership Percentage			50%
Invested amount	2,250,000		$ 2,250,000
American Opportunity Venture II, LLC [Member] | March, 2021 [Member]
Ownership Percentage			100%
Invested amount	25,000		$ 25,000
FUB Mineral LLC [Member] | October 1, 2021 [Member]
Invested amount	$ 250,000		$ 250,000

EQUITY TRANSACTIONS (Details)

EQUITY TRANSACTIONS (Details)	9 Months Ended
	Sep. 30, 2022
Expected Dividend Yield	0%
Expected Volatility	87.97%
Risk-free Rate	0.87%
Maximum [Member] | Mining Rights [Member]
Expected Life Of Warrants	6 years 7 months 6 days
Minimum [Member]
Expected Life Of Warrants	1 year 7 months 3 days

EQUITY TRANSACTIONS (Detail 1)

EQUITY TRANSACTIONS (Detail 1) - Warrants [Member] - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Outstanding, Beginning Balance	0	0
Exercisable (Vested), Beginning Balance	10,213,764	8,401,221
Granted	0	4,601,250
Forfeited Or Expired	0	0
Exercised	248,051	1,732,508
Outstanding, Ending Balance	9,965,713	11,296,963
Exercisable (Vested), Ending Balance	9,965,713	11,296,963
Weighted Average Exercise Price, Beginning Balance	$ 0	$ 0
Exercisable (Vested), Weighted Average Exercise Price, Beginning Balance	2.25	1.135
Grantes, Weighted Average Exercise Price	0	3.531
Forfeited Or Expired, Weighted Average Exercise Price	0	0
Exercised, Weighted Average Exercise Price	1.50	0.86
Weighted Average Exercise Price, Ending Balance	1.14	2.25
Exercisable (Vested), Weighted Average Exercise Price, Ending Balance	$ 1.14	$ 2.25
Weighted Average Contractual Life in Years, Beginning Balance	0 years	0 years
Exercisable (Vested), Weighted Average Contractual Life in Years, Beginning Balance	2 years 8 months 8 days	2 years 1 month 25 days
Weighted Average Contractual Life in Years, Granted		4 years 9 months 23 days
Weighted Average Contractual Life in Years, Exercised	2 years	2 years 1 month 28 days
Weighted Average Contractual Life in Years, Ending Balance	3 years 10 months 9 days	2 years 4 months 20 days
Exercisable (Vested), Weighted Average Contractual Life in Years, Ending Balance	3 years 10 months 9 days	2 years 8 months 8 days
Aggregate Intrinsic value, Beginning Balance	$ 0	$ 0
Exercisable (Vested), Aggregate Intrinsic value, Beginning Balance	121,018	7,453,214
Aggregate Intrinsic value, Granted	0	69,700
Aggregate Intrinsic value, Forfeited Or Expired	0	0
Aggregate Intrinsic value, Exercised	0	7,038,153
Aggregate Intrinsic value, Ending Balance	49,193	4,221,721
Exercisable (Vested), Aggregate Intrinsic value, Ending Balance	$ 49,193	$ 4,221,721

EQUITY TRANSACTIONS (Detail 2)

EQUITY TRANSACTIONS (Detail 2) - Options [Member] - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Outstanding, Beginning Balance	4,209,269	2,159,269
Exercisable (Vested), Beginning Balance	3,159,268	888,659
Granted	0	325,000
Forfeited Or Expired	0	275,000
Exercised	0	25,000
Outstanding, Ending Balance	4,209,269	2,184,269
Exercisable (Vested), Ending Balance	4,209,269	1,134,268
Weighted Average Exercise Price, Beginning Balance	$ 1.665	$ 1.606
Exercisable (Vested), Weighted Average Exercise Price, Beginning Balance	1.517	1.581
Grantes, Weighted Average Exercise Price	0	2.30
Forfeited Or Expired, Weighted Average Exercise Price	0	1.45
Exercised, Weighted Average Exercise Price	0	1.640
Weighted Average Exercise Price, Ending Balance	1.980	1.67
Exercisable (Vested), Weighted Average Exercise Price, Ending Balance	$ 1.980	$ 1.52
Weighted Average Contractual Life in Years, Beginning Balance	5 years 7 months 28 days	5 years 4 months 20 days
Exercisable (Vested), Weighted Average Contractual Life in Years, Beginning Balance	4 years 10 months 28 days	5 years 17 days
Weighted Average Contractual Life in Years, Granted		6 years 8 months 26 days
Weighted Average Contractual Life in Years, Forfeited or Expired		3 years 6 months 14 days
Weighted Average Contractual Life in Years, Exercised		6 years 6 months 22 days
Weighted Average Contractual Life in Years, Ending Balance	6 years 5 months 26 days	5 years 4 months 13 days
Exercisable (Vested), Weighted Average Contractual Life in Years, Ending Balance	6 years 5 months 26 days	4 years 10 months 28 days
Aggregate Intrinsic value, Beginning Balance	$ 3,186,870	$ 1,919,129
Exercisable (Vested), Aggregate Intrinsic value, Beginning Balance	3,141,183	749,470
Aggregate Intrinsic value, Granted	0	105,000
Aggregate Intrinsic value, Forfeited Or Expired	0	199,500
Aggregate Intrinsic value, Exercised	0	41,500
Aggregate Intrinsic value, Ending Balance	3,257,470	1,416,548
Exercisable (Vested), Aggregate Intrinsic value, Ending Balance	$ 3,257,470	$ 774,380

EQUITY TRANSACTIONS (Details Na

EQUITY TRANSACTIONS (Details Narrative) - USD ($)							1 Months Ended		3 Months Ended			9 Months Ended
	Jun. 09, 2021	Mar. 15, 2021	Mar. 12, 2021	Mar. 11, 2021	Feb. 07, 2021	Feb. 02, 2021	Mar. 16, 2021	Jan. 26, 2021	Sep. 30, 2022	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 09, 2022	Sep. 06, 2022	Mar. 31, 2022	Mar. 30, 2022	Jan. 13, 2022
Employee Stock Compensation									$ 170,385	$ 115,025		$ 560,252	$ 331,665
Issuance of common shares for professional services									38,800	0	$ 10,000	38,800	0
Conversion of debt and interest									$ 602,000	$ 624,537		$ 2,424,210	$ 10,253,912
Common Shares Class A [Member]
Shares Issued									5,364			5,364		42,000	13,437	22,500	47,500	117,250
Exercise price									$ 1.50			$ 1.50		$ 1.50	$ 1.50	$ 1.50	$ 1.50	$ 1.50
Common Shares Class A [Member] | Warrant C-38 [Member]
Shares Issued	2,150,000			42,500
Exercise price	$ 3.50			$ 5
Warrants expiration date	Jun. 09, 2026			Mar. 11, 2023
Common Shares Class A [Member] | Warrant C-39 [Member]
Shares Issued	2,150,000	75,000	42,500
Exercise price	$ 3.50	$ 4.59	$ 5
Warrants expiration date	Jun. 09, 2026	Mar. 15, 2026	Mar. 12, 2023
Common Shares Class A [Member] | Warrant C-40 [Member]
Shares Issued							21,250
Exercise price							$ 5
Warrants expiration date							Mar. 16, 2023
Warrant A-11 [Member] | Common Shares Class A [Member]
Shares Issued					50,000
Exercise price					$ 4.25
Warrants expiration date					Feb. 07, 2026
Warrant A-10 [Member] | Common Shares Class A [Member]
Shares Issued								10,000
Exercise price								$ 2.05
Warrants expiration date								Jan. 26, 2024
Warrant C-37 [Member] | Common Shares Class A [Member]
Shares Issued						60,000
Exercise price						$ 1.50
Warrants expiration date						Feb. 02, 2023
Shares Issuable Upon Exercise Of Warrant, Amount						$ 600,000

CONTINGENCIES (Details Narrativ

CONTINGENCIES (Details Narrative)		1 Months Ended	9 Months Ended
	Oct. 08, 2021 USD ($) ft²	Aug. 17, 2021 USD ($) a	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Apr. 03, 2019 USD ($)
Term	2 years	5 years
Rent For The Office Space			$ 5,726
Working capital			$ 800,000
Note totaled				$ 485,900
Commercial Land Lease Sublease Area | a		7
Income		$ 3,500
Warehouse Space | ft²	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			$ 42,013		$ 1,325,286
KCC [Member]
Accrued Liabilities			1,707,621
Commonwealth of Kentucky [Member] | Kentucky Energy Cabinet [Member]
Accrued Liabilities			351,071
Claims Amounts			754,398
Mine Health Safety [Member]
Claims Amounts			1,430,997
Rare Earth Commercial Purification Facility Lease [Member]
Rent For The Office Space	$ 4,745		$ 1,702
Rental Lease Expired Date			January 1, 2030
Warrant C-37 [Member] | Common Shares Class A [Member]
Settlement Of Reclamation Issue						$ 100,000
Remaining Amount Settlement						$ 299,038

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative)	1 Months Ended
	Oct. 21, 2022
Sales Purchase Agreement [Member] | Subsequent Event [Member]
Sell Ownership Percentage	7.50%