STOCKHOLDERS EQUITY

9 Months Ended

Sep. 30, 2024

STOCKHOLDERS EQUITY

STOCKHOLDERS' EQUITY

NOTE 9 – STOCKHOLDERS’ EQUITY

Common Stock

During the nine months ended September 30, 2024, the company issued 902,419 shares of common stock upon exercise of warrants.

During the nine months ended September 30, 2024, the company issued 138,000 shares of common stock upon the exercise of 148,000 options at an exercise price of $1.05 a share.

During the nine months ended September 30, 2024, the company issued 10,000 shares of common stock upon the exercise of 10,000 options at an exercise price of $1.20 a share.

During the nine months ended September 30, 2024, the company issued 102,500 shares of common stock in relation to consulting services.

During the nine months ended September 30, 2023, the remaining amounts of the convertible notes in the amount of $9,787,423 was converted into 9,420,230 common shares.

During the nine months ended September 30, 2023, the company issued 49,020 shares of common stock in relation to consulting services.

Stock based compensation:

Effective July 1, 2018, the Board of Directors of American Resources Corporation. adopted the 2018 Incentive Stock Plan. The plan provides for the allocation and issuance of stock and options (both incentive stock options and non-qualified stock options) to officers, directors, employees and consultants of the company. The board reserved a total of 4,000,000 shares for possible issuance under the plan.

Total stock-based compensation expense for grants to officers, employees and consultants was $748,641 and $846,079 for the three months ended September 30, 2024, and 2023, respectively, which was charged to general and administrative expense.

Total stock-based compensation expense for grants to officers, employees and consultants was $2,511,894 and $2,216,767 for the nine months ended September 30, 2024, and 2023, respectively, which was charged to general and administrative expense.

As of September 30, 2024 and 2023, the company has $6,273,780 and 10,055,806, respectively, of unrecognized compensation cost related to unvested stock options granted and outstanding, net of estimated forfeitures. The cost is expected to be recognized on a weighted average basis over a period of approximately five years.

The following table summarizes the activity of our stock options for the nine months ended September 30, 2024:

			Weighted		Weighted
			Average		Average		Aggregate
	Number of		Exercise		Contractual		Intrinsic
	Options		Price		Life in Years		Value
Outstanding – December 31, 2023		9,626,770	$	1.571		5.39	$	1,035,181
Granted		-	$	-		-	$	-
Forfeited or Expired		-	$	-		-	$	-
Exercised		-	$	-		-	$	-
Outstanding – September 30, 2024		9,626,770	$	1.571		5.39	$	1,035,181
Exercisable (Vested) – September 30, 2024		4,876,840	$	1.558		4.25	$	402,881