Mon, Jun 2, 10:07 AM (11 days ago)
American Resources Corporation (AREC) reported its financial health for the quarter ended March 31, 2025. The company experienced a net loss of $6.66 million, a slight improvement from the $7.02 million loss in the same period last year. Revenue decreased by $62,092, primarily due to a reduction in royalty income. Operating expenses decreased by $1.81 million, driven by lower coal production costs, payroll reductions, and decreased legal fees. The company's cash flow from operating activities improved by $3.29 million, mainly due to a decrease in net loss and changes in working capital. However, cash provided by financing activities dropped significantly from $148.26 million in 2024 to $76,799 in 2025. AREC's liquidity remains a concern, with a cash balance of $24,623 and a working deficit of $75.84 million. The company plans to fund its liquidity needs through cash on hand and additional debt and equity financing. AREC's future operations are subject to significant uncertainties, including the generation of revenues from new business models and the ability to obtain additional financing. The company's management has concluded that its disclosure controls and procedures were not effective due to insufficient staff and lack of timely reconciliations. Despite these challenges, AREC is focused on developing its ReElement and Electrified Materials businesses to achieve increasing revenues in 2025.