What changed in this filing

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Item 7. Management’s Discussion and Analysis

2025-10-24 compared with 2025-06-02 · 26 added, 15 removed, 132 unchanged (24% of the section changed)

10 unchanged sentences

For the Years Ended

(As Restated)

$ (11,183,663 )

23 unchanged sentences

Interest expense

Total other income (expenses), net

Total other income (expenses)

(39,338,806 )

4 unchanged sentences

$ (38,527,408 )

$ (1,581,518 )

The following table summarizes the changes in revenue generating operations:

For the Years Ended

(As Restated)

$ (11,183,663 )

10 unchanged sentences

For the year ended 2024, the Company had de minimis tons of coal sold to steel making end users.

For the year ended 2023, tons sold to steel making end users amounted to 67,373 tons with a realized sales price of $180.

For the year ended 2023, tons sold to steel making end users amounted to 56,909 tons with a realized net sales price of $126.

The following table summarizes the changes in operating expenses (income):

For the Years Ended

(As Restated)

Operating expenses (income)

Coal production and holdings costs

$ (5,048,123 )

Amortization of mining rights

6 unchanged sentences

Total operating expenses

$ (15,582,739 )

Total operating expenses decreased in 2024 as compared to 2023.

This decrease was primarily attributable to decreases in coal production and holdings costs, litigation expense, production taxes and royalties and development.

These decreases were partially offset by increases in depreciation, amortization of mining, general and administrative and professional.

General and administrative expenses primarily consist of contract labor, payroll, facility maintenance, stock-based compensation to employees and consultants, insurance and other routine operating costs.

This decrease was primarily attributable to decreases in coal production and holdings costs, depreciation expense, litigation expense, production taxes and royalties and development.

These decreases were partially offset by amortization of mining, general and administrative and professional.

The $10.4 million increase in general and administrative expenses for the year ended December 31, 2024 was primarily attributable to consulting, and administrative services provided by affiliates in support of the Company’s operations, and higher rent expense related to the addition of new office and operating locations.

The decrease in our coal production and holding costs is aligned with the suspension of our coal production activities beginning in 2023.

The decrease in litigation expense is because in 2023, American Infrastructure recognized charges for certain litigation matters where the potential loss was assessed as probable in that year.

The increase in general and administrative expenses is primarily attributable to the shift in our business from coal production to other activities including the development of RLMT technology for refining rare earth and battery elements.

The following table summarizes the changes in other income (expense):

For the Years Ended

(As Restated)

Other income (expense)

6 unchanged sentences

$ (2,349,761 )

The increase in net other expense is primarily attributable to the net increase in interest expense driven by the WCC bonds being outstanding for the full twelve months of 2024 compared to approximately seven months in 2023 and the KCC bonds that were issued in March 2024.

$ (4,757,917 )

The increase in net other expense is primarily attributable to the net increase in interest expense and bond fund income driven by the WCC bonds being outstanding for the full twelve months of 2024 compared to approximately seven months in 2023.

Liquidity and Capital Resources.

Our primary sources of liquidity are derived from existing unrestricted cash, reimbursements from bond funds and other debt and capital proceeds.

With the suspension of our coal production activities beginning in 2023 and the development stage of our new ReElement and Electrified Materials businesses through 2024, our sources of revenue in 2024 were primarily limited to royalty income and coal processing fees.

We anticipate our ReElement and Electrified Materials new businesses to achieve increasing revenues in 2026;

however, we will continue to require cash flows from financing activities to support operations and the continued development of our new business models.

As of December 31, 2024, the company has a cash balance of $604,485 and a working deficit of $73,477,808.

As of December 31, 2024, the company has a cash balance of $604,485 and a working capital deficit of $73,477,808.

We expect to fund our liquidity requirements over the next 12 months primarily with cash on hand and additional debt and equity financing transactions.

4 unchanged sentences

Years Ended December 31,

(As Restated)

Consolidated statement of cash flow data:

2 unchanged sentences

$ (19,518,781 )

Cash provided by (used in) investing activities

Cash used in investing activities

(125,400,361 )

(31,743,043 )

Cash provided by financing activities

1 unchanged sentence

$ (5,913,269 )

The $2,124,423 increase in cash used for operating activities was primarily due to a $1,471,777 increase in net loss and a $3,654,193 decrease in cash flow provided by changes in working capital offset by an increase of $3,001,547 in non-cash charges.

Cash provided by investing activities during 2024 was $55,976 compared to cash used in investing activities of $1,127,427 in 2023.

The change was primarily due to purchases of property and equipment, net of capitalized interest income and (expense) of $1,059,062 offset proceeds from sales of equipment of $400,000 and proceeds from short-term investments of $715,038.

The $1,724,432 increase in cash used in operating activities was primarily due to a $613,843 increase in net loss, a $2,713,871 decrease in cash flow provided by changes in working capital, and an increase of $1,603,282 in non-cash charges.

Cash used in investing activities during 2024 was $125,400,361 compared to cash used in investing activities of $31,743,043 in 2023.

The change was primarily due to the $120,956,337 increase in the purchase of restricted investments within the tax-exempt bond funds and a $1,129,408 decrease in proceeds from the sale of equipment offset by restricted investments sold of $25,797,202, proceeds from short-term investments of $73,421 and a decrease of $2,557,804 in purchases of property and equipment.

Cash provided by financing activities during 2024 was $145,679,343 compared to $45,348,555 in 2023.

The change was due to proceeds from tax exempt bonds, net of $149,719,203, proceeds from convertible promissory note of $1,624,860, proceeds from exercise of stock option of $156,900, proceeds from warrant conversions of $32,339, proceeds received from other financing obligations of $2,493,819 offset by repayments of other financing obligations of $7,365,639.

The change was due to an increase in proceeds from tax exempt bonds, net of $106,243,315 and an increase in proceeds from convertible promissory note of $642,721, proceeds from exercise of stock options of $156,900, cash received from warrant conversions of $32,339, repayment of long term debt of $1,158,428 offset by a decrease in proceeds received from other financing obligations of $5,239,412.

Capital Resources.

32 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K/A

Item 7. Management’s Discussion and Analysis