American Resources Corporation Reports 66.2% Revenue Decline and Net Loss Improvement

American Resources Corporation (ARC) reported a total revenue of $31,927 for the three months ended March 31, 2025, a significant decrease of 66.2% compared to $94,019 in the same period of the previous year. The decline was primarily driven by a reduction in royalty income, which fell from $64,667 to zero, and a decrease in metal recovery and sales from $29,352 to $1,050. The company also recorded a net loss attributable to shareholders of $6,652,763, an improvement from a loss of $6,941,363 in the prior year, indicating a reduction in net loss of approximately 4.2%.

In terms of operational changes, ARC has shifted its focus away from coal production, which has been idled since 2019 due to adverse market conditions. The company has instead concentrated on diversifying its revenue streams through its subsidiaries, ReElement Technologies and Electrified Materials Corporation, which are focused on the recovery and sale of metals and rare earth elements. As of March 31, 2025, the company had 82,274,703 shares of Class A common stock issued and outstanding, reflecting a slight increase from the previous period.

The company’s total operating expenses decreased to $5,015,360 from $6,824,204 year-over-year, largely due to reduced coal production costs and lower professional fees. The decrease in operating expenses was attributed to the suspension of coal production and efforts to lower payroll costs. Additionally, interest expenses rose significantly from $662,679 to $1,752,496, reflecting the financial strain from existing debt obligations.

American Resources Corporation's total assets as of March 31, 2025, were reported at $202,758,383, a slight decrease from $205,013,999 at the end of the previous fiscal year. The company’s liabilities increased to $289,261,436, up from $286,923,743, resulting in a stockholders' deficit of $84,938,111. The company has expressed substantial doubt about its ability to continue as a going concern, emphasizing the need for additional financing to meet its obligations and support its operations.

Looking ahead, ARC anticipates that its new business segments will begin generating increasing revenues in 2025. However, the company acknowledges that it will continue to require cash flows from financing activities to support operations and the development of these new business models. The management remains focused on securing additional funding through debt or equity financing to ensure the company's sustainability in the coming year.