Applied Minerals, Inc. [AMNL] Filings

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended

September 30, 2022

¨	Transition report under section 13 or 15(d) of the Exchange Act

For the transition period from

to

Commission File Number

000-31380

APPLIED MINERALS, INC.

(Exact name of registrant as specified in its charter)

Delaware		82-0096527
(State or other jurisdiction of incorporation or organization)		(I. R. S. Employer Identification No.)
1200 Silver City Road, PO Box 432, Eureka, UT		84628
(Address of principal executive offices)		(Zip Code)

	(435) 433-2059
	(Issuer’s Telephone Number, Including Area Code)

Large Accelerated Filer	¨	Accelerated Filer	¨	Non-accelerated Filer	¨	Smaller Reporting Company	x
Emerging growth company	¨

		Page(s)
	PART I. FINANCIAL INFORMATION	3
Item 1.	Consolidated Financial Statements
	Consolidated Balance Sheets as of September 30, 2022 (unaudited) and December 31, 2021	3
	Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2022 and 2021 (unaudited)	4
	Consolidated Statements of Changes in Stockholders’ Deficit for the Three and Nine Months Ended September 30, 2022 and 2021 (unaudited)	5
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021 (unaudited)	7
	Notes to the Consolidated Financial Statements (unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	29
Item 1.	Legal Proceedings	30
Item 1A	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 3.	Defaults Upon Senior Securities	30
Item 4.	Mine Safety Disclosures	30
Item 5.	Other Information	30
Item 6.	Exhibits	31
Signatures		32

2

		September 30, 2022				December 31, 2021
		(unaudited)
ASSETS
Current Assets
Cash		$	729,828			$	74,253
Accounts receivable			92,575				34,309
Deposits and prepaid expenses			20,452				161,999
Total Current Assets			842,855				270,561
Land			500,000				500,000
Operating lease right-of-use asset			-				28,111
Finance lease right-of-use asset			33,893				42,821
Other Assets
Deposits			297,320				336,328
Total Other Assets			297,320				336,328
TOTAL ASSETS		$	1,674,068			$	1,177,821
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
Accounts payable and accrued liabilities		$	1,306,219			$	3,017,454
PIK Note interest accrual			623,690				372,028
Current portion of PIK Notes payable, net of $365,529 debt discount			48,298,591				-
Current portion of notes payable			110,880				112,835
Current portion of finance lease liabilities			12,519				11,986
Current portion of operating lease liabilities			-				29,085
Total Current Liabilities			50,351,899				3,543,388
Long-Term Liabilities
PIK Notes payable, net of $681,102 debt discount			-				47,004,480
Deferred revenue			1,000,000				1,000,000
Finance lease liabilities			21,373				30,835
Total Long-Term Liabilities			1,021,373				48,035,315
TOTAL LIABILITIES			51,373,272				51,578,703
Stockholders’ Deficit
Preferred stock, $0.001 par value, 10,000,000 shares authorized, and 164,000 and 262,000 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively			78				262
Common stock, $0.001 par value, 700,000,000 shares authorized, and 366,974,683 and 217,655,150 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively (208,818,846 reserved in Treasury)			366,974				217,654
Additional paid-in capital			76,937,697				74,686,581
Accumulated deficit prior to the exploration stage			(20,009,496	)			(20,009,496	)
Accumulated deficit during the exploration stage			(106,994,457	)			(105,295,883	)
Total Stockholders’ Deficit			(49,699,204	)			(50,400,882	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT		$	1,674,068			$	1,177,821

3

		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2022				2021				2022				2021
REVENUES		$	111,688			$	360,815			$	295,838			$	1,099,980
OPERATING EXPENSES:
Production costs			140,123				434,225				451,418				1,315,350
Exploration costs			16,098				47,866				266,111				175,715
General and administrative			341,847				443,503				1,082,953				1,244,975
Total Operating Expenses			498,068				925,594				1,800,482				2,736,040
Operating Loss			(386,380	)			(564,779	)			(1,504,644	)			(1,636,060	)
OTHER INCOME (EXPENSES):
Interest expense, net (including amortization of deferred financing cost and debt discount)			(643,933	)			(474,579	)			(1,596,548	)			(1,401,878	)
Gain on forgiveness of PPP loan			-				-				-				223,075
Gain on sale of iron oxide assets			1,938,000				-				1,938,000				-
Other income  (expense) , net			(716,800	)			20,308				(535,382	)			114,662
Total Other Income (Expense)			577,267				(454,271	)			(193,930	)			(1,064,141	)
NET INCOME (LOSS)		$	190,887			$	(1,019,050	)		$	(1,698,574	)		$	(2,700,201	)
Net Income ( Loss ) Per Common Share (Basic and Diluted)		$	0.00			$	(0.01	)		$	(0.01	)		$	(0.02	)
Weighted Average Common Shares Outstanding (Basic and Diluted)			321,090,805				199,138,961				276,820,927				194,202,348

4

 

		Three Months Ended
		Common Stock Shares				Common Stock Amount				Preferred Stock Shares				Preferred Stock Amount				Additional Paid-in Capital				Accumulated Deficit Prior to Exploration Stage				Accumulated Deficit During Exploration Stage				Total Stockholders’ Deficit
Balance, June 30, 2022			285,787,382			$	285,786				164,000			$	164			$	74,861,487			$	(20,009,496	)		$	(107,185,344	)		$	(52,047,403	)
Shares issued upon conversion of Series B Preferred Stock			43,409,524				43,410				(86,000	)			(86	)			(43,324	)			-				-				-
Beneficial conversion feature on Convertible Series B Preferred Stock			-				-				-				-				51,929				-				-				51,929
Deemed dividend from beneficial conversion feature on Convertible Series B Preferred Stock			-				-				-				-				(51,929	)			-				-				(51,929	)
Shares issued as part of liability settlement