NOTES PAYABLE

12 Months Ended

Dec. 31, 2022

NOTES PAYABLE

NOTE 4 - NOTES PAYABLE

NOTE 4 - NOTES PAYABLE

During the year ended December 31, 2022 and 2021, principal payments on long term debt totaled $2,214,601 and $562,318, respectively. During the year ended December 31, 2021 and 2020, new debt issuances totaled $2,563,000 and $562,318, respectively.

Short-term and Long-term debt consisted of the following at December 31, 2022 and 2021:

	2022		2021
Equipment Loans - ACC
Note payable to an unrelated company in monthly installments of $1,468, With interest at 6.95%, through maturity in March 2021, when the note is due in full. The note is secured by equipment and a personal guarantee by an officer of the Company.		-		6,106
On December 7, 2017, ACC entered into an equipment financing agreement with an unaffiliated entity, to purchase certain surface equipment for $56,900. The agreement calls for an interest rate of 8.522%, monthly payments until maturity of January 7, 2021. The note is secured by the equipment purchased. The balance of the note was repaid with cash during 2021.		11,082		11,082
On January 25, 2018, ACC entered into an equipment loan agreement with an unrelated party in the amount of $346,660. The agreement calls for monthly payments of $11,360 until maturity date of December 24, 2020 and carries an interest rate of 9%. The loan is secured by the underlying surface equipment purchased by the loan. Loan proceeds were used directly to purchase equipment.		57,509		141,689
On May 9, 2018, ACC entered into a loan agreement with an unrelated party in the amount of $1,000,000 with a maturity date of September 24, 2018 with monthly payments of $250,000 due beginning June 15, 2018. The note is secured by the assets and equity of the company and carries an interest rate of 0%. Proceeds of the note were split between receipt of $575,000 cash and $425,000 payment for new equipment. No payments have been made on the note which is in default. The note is secured by the equipment purchased by the note and a personal guarantee of an officer.		-		1,000,000
ARC Corporate Loan
On June 3, 2022, the Company entered into a loan agreement with an unrelated party in the amount of $2,500,000 with a maturity date of June 27, 2023.  The interest rate is 5% and payments are based on coal sales.		1,604,180		-
On April 20, 2022 the Company entered into a loan agreement with an unrelated party in the amount of $45,000 and will repay $63,000.		63,000		-
On April 23, 2020, the Company received loan proceeds in the amount of approximately $2,649,800 under the Paycheck Protection Program (“PPP”). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will be reduced if the borrower terminates employees or reduces salaries during the period. On January 26, 2022, the Company received forgiveness of $1,521,304 of principal.		-		2,649,800
On September 11, 2020, the Company entered into a $1,493,233.65 settlement agreement with a non-related party. Starting April 1, 2021, the note requires monthly payments of $100,000 until the balance is paid in full.		-		1,293,234

Equipment Loans - McCoy
On September 25, 2017, ACC entered into an equipment purchase Agreement, which carries 0% interest with an unaffiliated entity, Inc. to purchase certain underground mining equipment for $350,000. The agreement provided for $20,000 monthly payments until the balance is paid in full. The note matures on September 25, 2019, and the note is in default. The note is secured by the equipment purchased with the note.	181,736	181,736

Total note payables		1,917,507		5,832,124
Less: Current maturities		1,917,507		5,283,647
Total Long-term note payables, net of discount	$	-	$	548,477

Convertible notes payable consisted of the following at December 31, 2022 and 2021:

	2022		2021
ARC
In 2020, the Company created a convertible debt offering. The debt matures in two years, with interest at 12.5% capitalizing monthly.  The remaining portion of convertible debt outstanding was converted to common shares during January 2023.		9,797,423		9,232,685
Less: Debt Discounts		-		(40,655	)
Total convertible note payables, net of discount		9,797,423		9,192,030

Affiliate notes consisted of the following at December 31, 2022 and 2021:

	2022		2021
Notes payable to affiliate, due on demand with no interest and is uncollateralized. Equipment purchasing was paid by an affiliate resulting in the note payable.	$	-	$	74,000
Total affiliate note payables		-		74,000

Total interest expense was $1,426,153 in 2022 and $4,159,813 in 2021.

Future minimum principal payments, interest payments and payments on capital leases are as follows:

Payable In	Loan  Principal
2023		11,704,929
2024		-
2025		-
2026		-
2027		-
Thereafter