Mon, Aug 19, 8:13 PM (148 days ago)
For the quarter ending June 30, 2024, American Resources Corporation reported significant financial challenges, reflecting a continued decline in revenue and increasing losses. Total revenue fell to $4,095 from $2,000,689 in the same period last year, primarily due to a complete drop in coal sales. The company recorded a net loss of $6,600,752, a slight improvement from a loss of $7,821,016 in Q2 2023. Operating expenses decreased to $6,233,513 from $9,350,482, driven by reduced costs in coal processing and development, although general and administrative expenses rose significantly. The company’s cash position improved, ending the quarter with $169,553,258, bolstered by proceeds from tax-exempt bonds totaling $149.7 million. Despite these cash inflows, the company faces uncertainties regarding ongoing operational viability, highlighted by recurring net losses and a substantial accumulated deficit of $226,097,239. Management is actively seeking additional financing to support operations and mitigate liquidity risks. The restatement of prior financials due to accounting errors also raises concerns about the reliability of past performance metrics.