American Resources Corporation (ARC) reported its financial results for the third quarter and the nine months ended September 30, 2025, revealing a significant decline in revenue and an increase in net losses compared to the same period in 2024. The company generated total revenue of $50,165 for the third quarter, a decrease of approximately 79% from $235,443 in the prior year. For the nine-month period, revenue fell to $95,349 from $333,557, primarily due to the absence of coal sales and a substantial drop in metal recovery and sales, which fell from $87,542 to $2,996.
The company's operating expenses also decreased, totaling $4,359,718 for the third quarter, down from $8,345,336 in 2024. This reduction was largely attributed to lower costs associated with coal production and processing, which dropped from $437,570 to $44,360, reflecting the suspension of coal production operations that began in 2023. General and administrative expenses also saw a significant decline, decreasing by nearly $3 million to $2,536,051. Despite these reductions, ARC reported a net loss of $6,302,798 for the third quarter, compared to a loss of $8,916,882 in the same quarter of the previous year.
In terms of strategic developments, ARC has shifted its focus towards diversifying its revenue streams through its subsidiaries, ReElement Technologies and Electrified Materials Corporation, which are aimed at the recovery and sale of critical and rare earth elements. The company has also undergone organizational changes, including the restructuring of its subsidiaries and the issuance of common stock to settle outstanding accounts payable. As of September 30, 2025, ARC had 84,608,920 shares of Class A common stock outstanding.
Operationally, the company reported a working capital deficit of $75,743,188 and a cash balance of $2,081,780. The company continues to seek additional financing to support its operations and the development of its new business models. The management has expressed concerns regarding its ability to continue as a going concern, contingent upon obtaining further financing and generating sufficient revenue. The company is actively pursuing various financing options, including debt and equity transactions, to address its liquidity needs.
Looking ahead, ARC anticipates that its new business segments will begin to generate increasing revenues in 2025. However, the company acknowledges that it will require ongoing cash flows from financing activities to support its operations and the continued development of these new business models. The management remains cautious about the future, emphasizing the need for successful execution of its strategic initiatives to improve financial performance and stabilize its operations.
About American Resources Corp
American Resources Corporation operates coal mining and processing subsidiaries primarily in eastern Kentucky, West Virginia, and Indiana, focusing on metallurgical coal for steelmaking and industrial uses. The company manages underground and surface mines, coal preparation plants, and rail loadouts, serving domestic and international steel and industrial customers. It also pursues metal recovery and rare earth element purification through subsidiaries, leveraging leased mineral rights and infrastructure assets within regulated mining operations.
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