American Resources Corp 10-Q for FY2023 Q1

American Resources Corp (AREC)

10-Q 2023-05-15 For: 2023-03-31

Added on April 06, 2026

About this 10-Q

American Resources Corp filed this 10-Q on May 15, 2023, covering the quarter ended March 31, 2023 (FY2023 Q1).

Headline figures

Quarter ended March 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $8.87M; down 2.3% from $9.08M a year earlier
Net loss: $3.1M; compared with a net loss of $2.75M a year earlier

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		PAGE
PART I. FINANCIAL INFORMATION

Item 1.	Condensed Consolidated Financial Statements		3

	Condensed Consolidated Balance Sheets (Unaudited)		4

	Condensed Consolidated Statements of Operation (Unaudited)		5

	Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit) for the Three Months ended March 31, 2023 and 2022 (unaudited)		6

	Condensed Consolidated Statements of Cash Flows (Unaudited)		7

	Notes to Unaudited Condensed Consolidated Financial Statements		8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		16

Item 3.	Quantitative and Qualitative Disclosures about Market Risk		27

Item 4.	Controls and Procedures		28

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings		29

Item 1A.	Risk Factors		29

Item 2.	Unregistered Sale of Equity Securities and Use of Proceeds		29

Item 3.	Defaults upon Senior Securities		29

Item 4.	Mine Safety Disclosures		29

Item 5.	Other Information		29

Item 6.	Exhibits		30

SIGNATURES			32

	March 31, 2023			December 31, 2022
ASSETS
CURRENT ASSETS
Cash	$	297,245		$	8,868,566
Accounts Receivable		1,694,929			660,755
Inventory		2,959,511			446,690
Prepaid fees		797,076			786,576
Total Current Assets		5,748,761			10,762,587

OTHER ASSETS
Cash - restricted		2,123,216			2,122,263
Property and equipment, net		9,303,457			9,113,722
Long-term right of use assets, net		12,913,548			13,033,889
Investment in LLC – Related Party		19,308,593			20,784,866
Note Receivable		99,022			99,022
Total Other Assets		43,747,836			45,153,762

TOTAL ASSETS	$	49,496,597		$	55,916,349

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

CURRENT LIABILITIES
Trade payable	$	4,305,293		$	4,916,243
Non-Trade Payables		2,685,008			2,524,243
Accounts payable – related party		3,005,044			4,295,232
Accrued interest		110,705			106,886
Current portion of long term-debt		839,730			1,917,506
Convertible note payables		-			9,787,423
Current portion of lease liabilities, net		3,962,155			3,889,235
Total Current Liabilities		21,843,507			27,436,768

OTHER LIABILITIES
Remediation liability		20,543,925			20,295,634
Lease liabilities, net		6,696,914			7,899,251
Total Other Liabilities		27,240,839			28,194,885

Total Liabilities		42,148,774			55,631,653

STOCKHOLDERS’ DEFICIT
Common stock: $.0001 par value; 230,000,000 shares authorized, 76,197,850 and 66,777,620 shares issued and outstanding		7,622			6,680
Additional paid-in capital		177,680,313			167,517,259
Accumulated deficit		(170,340,112	)		(167,239,243	)
Total Stockholders’ Equity (Deficit)		7,347,823			284,696

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)	$	49,496,597		$	55,916,349

	For the three months ended			For the three months ended
	March 31, 2023			March 31, 2022

Coal Sales	$	8,723,185		$	9,031,259
Metal recovery and sales		20,609			37,226
Royalty Income		124,662			12,137

Total Revenue		8,868,456			9,080,622

Cost of Coal Sales and Processing		(2,705,820	)		(2,890,858	)
Accretion Expense		(248,291	)		(267,622	)
Depreciation		(13,336	)		(626,042	)
Amortization of Mining Rights		(305,859	)		(303,394	)
General and Administrative		(1,321,468	)		(1,020,814	)
Professional Fees		(293,255	)		(350,938	)
Production Taxes and Royalties		(981,636	)		(819,477	)
Development Costs		(5,633,908	)		(6,784,188	)

Total Operating expenses		(11,503,573	)		(13,063,333	)

Net Loss from Operations		(2,635,117	)		(3,983,711	)

Other Income and (expense)
Other Income		93,000			82,156
Gain on cancelation of debt		-			1,521,304
Amortization of debt discount and debt issuance costs		-			-
Interest Income		17,212			10,045
Interest expense		(575,964	)		(383,696	)
Total Other income (expense)		(465,752	)		1,229,809

Net Loss		(3,100,869	)		(2,752,902	)

Less: Net Loss attributable to Non controlling interest					(7,884	)

Net loss attributable to American Resources Corp. Shareholders		-			(2,745,018	)

Net loss per common share - basic and diluted	$	(0.04	)	$	(0.04	)

Weighted average common shares outstanding- basic and diluted		72,953,104			65,253,533

	American Resources
	Common Stock										Non
	Par value			0.0001				Accumulated			controlling
	Shares		Amount		APIC			Deficit			interest			Total
Shares issued in connection with warrant conversions		187,250		19		280,856									280,875

Amortization of beneficial conversion features						(40,655	)								(40,655	)

Shares issued in connection with debt conversions		884,229		89		1,006,637									1,006,726

Amortization of Warrant and Stock Option Expense						199,843									199,843

Net Loss									(2,745,018	)		(7,884	)		(2,752,902	)

Balance March 31, 2022		66,156,471		6,616		164,888,336			(168,538,589	)		(7,884	)		(3,651,521	)

Balance at December 31, 2022	$	18,951,587
Accretion – 3 months March 31, 2023		1,344,047
Reclamation work – 3 months March 31, 2023		-
Balance at March 31, 2023	$	20,295,634
Balance at December 31, 2021	$	18,951,587
Accretion – 3 months March 31, 2022		267,622
Reclamation work – 3 months March 31, 2022		-
Balance at March 31, 2022	$	19,219,209

	March 31, 2023			December 31, 2022
Processing and rail facility	$	508,930		$	-
Underground equipment		-			-
Surface equipment		-			-
Coal refuse storage		12,134,192			12,134,192
Mine Development		561,575			561,575
Land		1,617,435			1,572,435
Less: Accumulated depreciation		(319,195	)		(5,199,478	)

Total Property and Equipment, Net	$	9,303,459		$	9,113,724

Processing and Rail Facilities	7-20 years
Surface Equipment	7 years
Underground Equipment	5 years
Mining Rights	5-10 years
Coal Refuse Storage	10 years

	March 31, 2023				March 31, 2022
	Asset		Liability		Asset		Liability
Operating Leases		613,094		617,892		704,627		776,424

Finance Leases		12,300,454		10,236,296		-		-

	March 31, 2023			March 31, 2022
Expected Dividend Yield		0	%		0	%
Expected volatility		87.97	%		123-617	%
Risk-free rate		2.37	%		1.40-1.62	%
Expected life of warrants	.22-8.75 years			1.635-5.588 years

			Weighted		Weighted
			Average		Average		Aggregate
	Number of		Exercise		Contractual		Intrinsic
	Warrants		Price		Life in Years		Value
Exercisable (Vested) – December 31, 2021		8,401,221	$	1.135		2.152	$	7,453,214
Granted		60,000	$	3.883		4.521	$	18,000
Forfeited or Expired		-	$	-		-	$	-
Exercised		1,681,022	$	1.215		3.094	$	5,321,781
Outstanding - March 31, 2022		6,780,199	$	1.139		1.635	$	18,277,625
Exercisable (Vested) - March 31, 2022		6,780,199	$	1.139		1.635	$	18,277,625

Exercisable (Vested) – December 31, 2022		9,724,369	$	2.75		1.69	$	6,515,327
Granted		-	$	-		-	$	121,018
Forfeited or Expired		-	$	-		-	$	-
Exercised		-	$	-		-	$	-
Outstanding - March 31, 2022		9,724,369	$	2.75		1.45	$	9,724,369
Exercisable (Vested) - March 31, 2022		9,724,369	$	2.75		1.45	$	9,724,369

Exhibit Number	Description	Location Reference

3.1	Articles of Incorporation of Natural Gas Fueling and Conversion Inc.	Incorporated herein by reference to Exhibit 3.1 to the Company’s Registration Statement on Form S-1, filed with the SEC on November 27, 2013.
3.2	Amended and Restated Articles of Incorporation of NGFC Equities Inc.	Incorporated herein by reference to Exhibit 3.1 to the Company’s 8k filed on February 25, 2015.
3.3	Articles of Amendment to Articles of Incorporation of NGFC Equities, Inc.	Incorporated herein by reference to Exhibit 10.2 to the Company’s Form 8-K on February 21, 2017.
3.4	Articles of Amendment to Articles of Incorporation of American Resources Corporation dated March 21, 2017.	Incorporated herein by reference to Exhibit 3.4 to the Company’s Form 10-Q, filed with the SEC on February 20, 2018.
3.5	Bylaws of Natural Gas Fueling and Conversion Inc.	Incorporated herein by reference to Exhibit 3.2 to the Company’s Registration Statement on Form S-1, filed with the SEC on November 27, 2013.
3.6	Bylaws, of NGFC Equities Inc., as amended and restated.	Incorporated herein by reference to Exhibit 3.2 to the Company’s 8k filed on February 25, 2015.
3.7	Articles of Amendment to Articles of Incorporation of American Resources Corporation dated November 8, 2018.	Filed as Exhibit 99.1 to the Company’s 8k filed on November 13, 2018, incorporated herein by reference.
3.8	Bylaws of American Resources Corporation, as amended and restated	Incorporated herein by reference to Exhibit 99.2 to the Company’s 8k filed on November 13, 2018.
4.1	Common Stock Purchase Warrant “B-4” dated October 4, 2017	Incorporated herein by reference to Exhibit 4.1 to the Company’s 8k filed on October 11, 2017.
4.2	Common Stock Purchase Warrant “C-1” dated October 4, 2017	Incorporated herein by reference to Exhibit 4.2 to the Company’s 8k filed on October 11, 2017.
4.3	Common Stock Purchase Warrant “C-2” dated October 4, 2017	Incorporated herein by reference to Exhibit 4.3 to the Company’s 8k filed on October 11, 2017.
4.4	Common Stock Purchase Warrant “C-3” dated October 4, 2017	Incorporated herein by reference to Exhibit 4.4 to the Company’s 8k filed on October 11, 2017.
4.5	Common Stock Purchase Warrant “C-4” dated October 4, 2017	Incorporated herein by reference to Exhibit 4.5 to the Company’s 8k filed on October 11, 2017.
4.6	Promissory Note for $600,000.00 dated October 4, 2017	Incorporated herein by reference to Exhibit 4.6 to the Company’s 8k filed on October 11, 2017.
4.7	Promissory Note for $1,674,632.14 dated October 4, 2017	Incorporated herein by reference to Exhibit 4.7 to the Company’s 8k filed on October 11, 2017.
4.8	Loan Agreement for up to $6,500,000 dated December 31, 2018	Incorporated herein by reference to Exhibit 99.1 to the Company’s 8k filed on January 3, 2019.
4.9	Promissory Note for up to $6,500,000 dated December 31, 2018	Incorporated herein by reference to Exhibit 99.2 to the Company’s 8k filed on January 3, 2019.
10.1	Secured Promissory Note	Incorporated herein by reference to Exhibit 99.1 to the Company’s 8k filed on May 15, 2018.
10.2	Security Agreement	Incorporated herein by reference to Exhibit 99.2 to the Company’s 8k filed on May 15, 2018.
10.3	Pledge Agreement	Incorporated herein by reference to Exhibit 99.3 to the Company’s 8k filed on May 15, 2018.
10.4	Guaranty Agreement	Incorporated herein by reference to Exhibit 99.4 to the Company’s 8k filed on May 15, 2018.
10.5	Bill of Sale	Incorporated herein by reference to Exhibit 99.5 to the Company’s 8k filed on May 15, 2018.
10.6	Sublease Agreement Between Colonial Coal Company, Inc. and McCoy Elkhorn Coal LLC	Incorporated herein by reference to Exhibit 99.1 to the Company’s 8k filed on May 1, 2018
10.7	Interim Operating Agreement	Incorporated herein by reference to Exhibit 99.2 to the Company’s 8k filed on May 1, 2018
10.8	Consolidated and Restated Loan and Security Agreement dated October 4, 2017	Incorporated herein by reference to Exhibit 10.1 to the Company’s 8k filed on October 11, 2017
10.9	Asset Purchase Agreement between Wyoming County Coal LLC and Thomas Shelton dated November 7, 2018	Incorporated herein by reference to Exhibit 10.9 to the Company’s registration statement filed on December 11, 2018.

10.10	Asset Purchase Agreement between Wyoming County Coal LLC and Synergy Coal, LLC dated November 7, 2018	Incorporated herein by reference to Exhibit 10.10 to the Company’s registration statement filed on December 11, 2018.
10.11	Security Agreement	Incorporated herein by reference to Exhibit 99.3 to the Company’s 8k filed on January 3, 2019.
10.12	Purchase Order	Incorporated herein by reference to Exhibit 99.4 to the Company’s 8k filed on January 3, 2019.
10.13	Employment Agreement with Mark C. Jensen	Incorporated herein by reference to Exhibit 10.13 to the Company’s registration statement filed on February 6, 2019.
10.14	Employment Agreement with Thomas M. Sauve	Incorporated herein by reference to Exhibit 10.14 to the Company’s registration statement filed on February 6, 2019.
10.15	Employment Agreement with Kirk P. Taylor	Incorporated herein by reference to Exhibit 10.15 to the Company’s registration statement filed on February 6, 2019.
10.16	Employee Stock Option Plan	Incorporated herein by reference to Exhibit 10.16 to the Company’s registration statement filed on February 6, 2019.
10.17	Letter of Intent	Incorporated herein by reference to Exhibit 10.17 to the Company’s registration statement filed on February 6, 2019.
10.18	Merger Agreement with Colonial Coal	Incorporated herein by reference to Exhibit 10.18 to the Company’s registration statement filed on February 14, 2019.
10.19	Share Exchange Agreement to replace Merger Agreement with Colonial Coal	Incorporated herein by reference to Exhibit 10.19 to the Company’s registration statement filed on February 14, 2019.
14.1	Code of Conduct	Incorporated herein by reference to Exhibit 99.2 to the Company’s 8k filed on November 13, 2018.
14.2	Financial Code of Ethics	Incorporated herein by reference to Exhibit 99.3 to the Company’s 8k filed on November 13, 2018.
21.1	Subsidiaries of the Registrant	Filed Herewith
31.1	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed Herewith
31.2	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed Herewith
32.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	Filed Herewith
32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	Filed Herewith
95.1	Mine Safety Disclosure pursuant to Regulation S-K, Item 104	Filed Herewith

101.INS		Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

	AMERICAN RESOURCES CORPORATION

Date: May 15, 2023	By:	/s/ Mark C. Jensen
	Name:	Mark C. Jensen
	Title:	CEO, Chairman of the Board
		(Principal Executive Officer)

	For the three months ended			For the three months ended
	March 31, 2023			March 31, 2022
Cash Flows from Operating activities:
Net loss	$	(3,100,869	)	$	(2,752,902	)
Adjustments to reconcile net loss to net cash used in operating activities:
Gain on forgiveness of debt		-			(1,521,304	)
Depreciation		13,336			626,042
Amortization of mining rights		305,859			303,394
Accretion expense		248,291			267,622
Accretion of right of use assets		107,895			2,899
Warrant expense		376,573			199,843
Issuance of common share options for compensation		-			-
Amortization of beneficial conversion feature		-			-
Issuance of common shares for services		-			-
Change in current assets and liabilities:

Accounts receivable		(1,034,174	)		319,312
Prepaid expenses and other assets		(10,500	)		(951,410	)
Inventory		(2,512,821	)		(1,236,065	)
Accounts payable		(450,185	)		(393,866	)
Accounts payable related party		(1,290,188	)		(691,607	)
Accrued interest		3,819			94,435
Cash provided by (used in) operating activities		(7,342,964	)		(5,733,607	)

Cash Flows from Investing activities:

Cash paid for PPE, net		(508,930	)		(724,900	)
Capitalized interest		-			267,875
Cash invested in notes receivable		-			(335,000	)
Investment in LLC		1,476,273			-
Cash provided by (used in) investing activities		967,343			(792,025	)

Cash Flows from Financing activities:

Principal payments on long term debt		(1,077,778	)		(39,559	)
Principal payments on finance lease		(1,116,969	)		-
Proceeds from convertible note		-			-
Proceeds from warrant conversions		-			280,875
Proceeds from sale of common stock, net		-			-
Cash provided by financing activities		(2,194,747	)		241,316

Entity Name		Domestic Jurisdiction
American Carbon Corp		Indiana
Deane Mining, LLC		Delaware
Quest Processing LLC		Indiana
ERC Mining Indiana Corp		Indiana
McCoy Elkhorn Coal LLC d/b/a McCoy Elkhorn Coal		Indiana
Knott County Coal LLC		Indiana
Wyoming County Coal LLC		Indiana
Perry County Resources LLC		Indiana
ReElement Technologies LLC		Indiana
American Metals LLC		Indiana
Advanced Carbon Materials LLC		Indiana
American Opportunity Ventures, LLC		Delaware
American Opportunity Ventures II, LLC		Delaware
Novusterra Inc		Florida

1.	I have reviewed this quarterly report on Form 10-Q of American Resources Corporation;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	AMERICAN RESOURCES CORPORATION

Date: May 15, 2023	By:	/s/ Kirk P. Taylor
		Kirk P. Taylor,
		Chief Financial Officer
		Principal Financial Officer
		Principal Accounting Officer

	(i)	the accompanying Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

	(ii)	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods covered by the Report.

*Mine or Operating Name / MSHA Identification Number*	*Section* *104(a)* *S&S* *Citations⁽¹⁾*		*Section* *104(b)* *Orders⁽²⁾*		*Section* *104(d)* *Citations* *and* *Orders⁽³⁾*		*Section* *110(b)(2)* *Violations⁽⁴⁾*		*Section* *107(a)* *Orders⁽⁵⁾*		*Total Dollar* *Value of MSHA* *Assessments* *Proposed (in thousands)⁽⁶⁾*
Active Operations
McCoy Elkhorn Mine #15 / 15-18775		0		0		0		0		0	$	441.2
McCoy Elkhorn Carnegie Mine / 15-19313		4		0		0		0		0	$	17.6
McCoy Elkhorn Carnegie 2 Mine / 15-19801		3		0		0		0		0	$	6.9
McCoy Elkhorn Bevins Branch Preparation Plant / 15-10445		12		0		0		0		0	$	22.9
Deane Mining Access Mine/ 15-19532		0		0		0		0		0	$	95.0
Deane Mining Mill Creek Preparation Plant / 15-16577		0		0		0		0		0	$	0
Deane Mining Razorblade / 15-19829		0		0		0		0		0	$	0
Perry County Resources/E4-2 15-19015		6		0		0		0		0	$	103.5
Perry County Resources/Davidson Preparation Facility 15-05485		0		0		0		0		0	$	24.8
Knott County Coal Wayland/15-19402		0		0		0		0		0	$	0

*Mine or Operating Name / MSHA Identification Number*	*Total* *Number of* *Mining* *Related* *Fatalities*		*Received* *Notice of* *Pattern of* *Violations* *Under* *Section* *104(e)* *(yes/no)⁽⁷⁾*	*Legal* *Actions* *Pending* *as of Last* *Day of* *Period*		*Legal* *Actions* *Initiated* *During* *Period*		*Legal* *Actions* *Resolved* *During* *Period*
Active Operations
McCoy Elkhorn Mine #15 / 15-18775		0	No		0		0		0
McCoy Elkhorn Carnegie Mine / 15-19313		0	No		0		0		0
McCoy Elkhorn Bevins Branch Preparation Plant / 15-10445		0	No		0		0		0
McCoy Elkhorn Carnegie 2 Mine / 15-19801		0	No		0		0		0
Deane Mining Access Mine / 15-19532		0	No		0		0		0
Deane Mining Mill Creek Preparation Plant / 15-16577		0	No		0		0		0
Deane Mining Razorblade / 15-19829		0	No		0		0		0
Perry County Resources/E4-2 15-19015		0	No		0		0		0
Perry County Resources/Davidson Preparation Facility 15-05485		0	No		0		0		0
Knott County Coal Wayland / 15-19402		0	No		0		0		0

*Mine or Operating Name / MSHA Identification Number*	*Contests* of *Citations* *and* *Orders*		*Contests* of *Proposed* *Penalties*		*Complaints* *for* *Compensation*		*Complaints of* *Discharge /* *Discrimination /* *Interference*		*Applications* *for Temporary* *Relief*		*Appeals* of *Judge’s Ruling*
Active Operations
McCoy Elkhorn Mine #15 / 15-18775		0		0		0		0		0		0
McCoy Elkhorn Carnegie Mine / 15-19313		0		0		0		0		0		0
McCoy Elkhorn Bevins Branch Preparation Plant / 15-10445		0		0		0		0		0		0
McCoy Elkhorn Carnegie 2 Mine / 15-19801		0		0		0		0		0		0
Deane Mining Access Mine / 15-19532		0		0		0		0		0		0
Deane Mining Mill Creek Preparation Plant / 15-16577		0		0		0		0		0		0
Deane Mining Razorblade / 15-19829		0		0		0		0		0		0
Perry County Resources/E4-2 15-19015		0		0		0		0		0		0
Perry County Resources/Davidson Preparation Facility 15-05485		0		0		0		0		0		0
Knott County Coal Wayland / 15-19402		0		0		0		0		0		0

(1)	Mine Act section 104(a) S&S citations shown above are for alleged violations of mandatory health or safety standards that could significantly and substantially contribute to a coal mine health and safety hazard. It should be noted that, for purposes of this table, S&S citations that are included in another column, such as Section 104(d) citations, are not also included as Section 104(a) S&S citations in this column.

(2)	Mine Act section 104(b) orders are for alleged failures to totally abate a citation within the time period specified in the citation.

(3)	Mine Act section 104(d) citations and orders are for an alleged unwarrantable failure (i.e., aggravated conduct constituting more than ordinary negligence) to comply with mandatory health or safety standards.

(4)	Mine Act section 110(b)(2) violations are for an alleged “flagrant” failure (i.e., reckless or repeated) to make reasonable efforts to eliminate a known violation of a mandatory safety or health standard that substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury.

(5)	Mine Act section 107(a) orders are for alleged conditions or practices which could reasonably be expected to cause death or serious physical harm before such condition or practice can be abated and result in orders of immediate withdrawal from the area of the mine affected by the condition.

(6)	Amounts shown include assessments proposed by MSHA during the three months ended March 31, 2023 on all citations and orders, including those citations and orders that are not required to be included within the above chart. This number may differ from actual assessments paid to MSHA as the Company may contest any proposed penalty.

(7)	Mine Act section 104(e) written notices are for an alleged pattern of violations of mandatory health or safety standards that could significantly and substantially contribute to a coal mine safety or health hazard.