Applied Minerals Inc Form 10-K

Applied Minerals, Inc.
10-K
03/27/2015
TABLE OF CONTENTS
Page(s)
Item 1.
PART I
Business
Item 1A.
Risk Factors
19
Item 1B.
Unresolved Staff Comments
21
Item 2.
Properties
21
Item 3.
Legal Proceedings
22
Item 4.
Mine Safety Disclosures
22
Item 5.
PART II
Market Price for the Registrant s Common
Equity, Related Stockholders Matters
and Issuer Purchases of Equity Securities
23
Item 6.
Selected Financial Data
24
Item 7.
Management s Discussion and Analysis of

Financial Condition and Results of Operation
25
Item 7A.
Quantitative and Qualitative Disclosures

About Market Risk
32
Item 8.
Consolidated Financial Statements and

Supplementary Data
32
Item 9.
Changes in and Disagreements with Accountants

on Accounting and Financial Disclosure
51
Item 9A.
Controls and Procedures
51
Item 9B.
Other Information
PART III
Directors and Executive Officers and Corporate
Governance
51
Item 11.
Executive Compensation
57
Item 12.
Security Ownership of Certain Beneficial

Owners and Management and Related Stockholder
Matters
71
Item 10.
52
Item 13.
Certain Relationships and Related Transactions,

and Director Independence
73
Item 14.
Principal Accounting Fees and Services
73
Item 15.
PART IV
Exhibits, Financial Statement Schedules
74
____________________________
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10-K
03/27/2015
PART I
Tons extracted
Halloysite clay
Iron oxide
Products produced (tons)
Halloysite clay
Iron oxide
2014.00
2013.00
650
2,200
450
3,300
69
166
22
13
____________________________

10-K
03/27/2015
PART I
Sales for:
Commercial Production
Scale-Ups
Testing
Other
Percentages of Sa
Use
2014.00 2013.00
70
69
26
17
2
4
2
10
100
100
____________________________

10-K
03/27/2015
Dragon Pit
Area
Dragon Pit
Acres Resource
4.95 Measured 1
Clay (tons) Clay Type

629,650 Pure Halloysite
565,575 Mix
____________________________
Average Clay Content (%)

Halloysite Kaolinite Illite-Smectite
94.00 N/A
N/A
42.60
19.20
11.60
Total
94.00
73.40

10-K
03/27/2015
Dragon Pit
Area
Dragon Pit
Acres Resource
4.95 Measured
Average Content of Hematite, Goethite

and LOI (%)
Iron (tons) Hematite Geothite Hematite + Goethite
LOI
2,631,825
24.30
69.70
94.00
11.40
____________________________

10-K
03/27/2015
Western Area
Area
Western Area
Acres Resource
6.30 Measured

Clay (tons) 1 Halloysite Kaolinite Illite-Smectite Total
862,903
6.70
47.20
17.50 71.30
____________________________

10-K
03/27/2015
Western Area
Area
Western Area
Acres Resource
6.33 Measured
Average Content of Hematite, Goethite

and LOI (%)
Iron (tons) Hematite Geothite Hematite + Goethite
LOI
670,450
75.90
20.20
96.10 ###
____________________________

10-K
03/27/2015
Surface Piles
Surface Pile

Halloysite
Clay
(tons)
1
2
3
4
5
____________________________
154,500
127,100
298,900
33,280
144,100
41.80
19.00
9.40
13.20
13.50
Kaolinite
IlliteSmectite
25.80
33.60
30.70
31.70
13.50
Total
9.40
27.80
24.90
31.70
31.80
77.00
80.40
65.40
76.70
81.80

10-K
03/27/2015
Market Prices for Our Common Stock
Year 2014
High
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Year 2013
High
Low
$1.09
$0.85
$0.86
$0.78
____________________________
$0.69
$0.60
$0.67
$0.59
$1.72
$1.47
$1.19
$1.22
ar 2013
gh
Low
$1.72
$1.47
$1.19
$1.22
$1.40
$1.11
$0.98
$1.00

10-K
03/27/2015
Equity Compensation Plans
Equity Compensation Information

As of December 31, 2014
Equity compensation plans approved by

security holders
Number of securities to
of outstanding options,
rights
Weighted-average
options, warrants
(a)
(b)
4,978,526
$1.39
Equity compensation plans not approved

by security holders
13,251,341
$0.87
Total
18,229,867
$1.01
____________________________
ighted-average
tions, warrants
)
$1.39
$0.87
$1.01
Number of securities re
for future issuance und
plans (excluding securi
in column (a))
(c)
3,644,490
--

10-K
03/27/2015
AMONG APPLIED MINERALS, INC.
Dec-09
iShares Russell Microcap Index ETF
S&P Metals & Mining Index ETF
____________________________
Dec-10
$100
$100
$100
$138
$128
$133
Dec-11
Dec-12
$219
$114
$95
Dec-13
$266
$134
$87
$190
$192
$82
Dec-14
$126
$197
$60

10-K
03/27/2015
AMONG APPLIED MINERALS, INC.
Year Ended December 31 (in 000 s except per

share data)
Revenue
Loss from continuing operations
Net loss
Loss from continuing operations - basic
Net loss - basic
Loss from continuing operations - diluted
Net loss - diluted
Cash and equivalents
Total assets
Long-term liabilities
Shareholders equity (deficit)
____________________________
2014.00
2013.00
$234.20
($10,316)
($10,316)
($0.11)
($0.11)
($0.11)
($0.11)
$10,701.70
$18,457.70
$54.80
($13,063.50)
($13,063.50)
($0.14)
($0.14)
($0.14)
($0.14)
$8,685.60
$15,215.30
$23,119
($7,517)
$11,727.40
$1,486.60
2013.00
2012.00
2011.00
2010.0
$54.80
($13,063.50)
($13,063.50)
($0.14)
($0.14)
($0.14)
($0.14)
$8,685.60
$15,215.30
$165.70
($9,732.40)
($9,732.40)
($0.11)
($0.11)
($0.11)
($0.11)
$3,356.10
$7,818.50
$93.00
($7,424.50)
($7,430.30)
($0.10)
($0.10)
($0.10)
($0.10)
$10,170.50
$12,874.80
$
($4,891.50
($4,767.70
($0.07
($0.07
($0.07
($0.07
$1,642.3
$4,215.1
$11,727.40
$1,486.60
$2,129.40
$3,966.20
$3,452.80
$8,828.40
$5,055.0
($1,561.30
2010.00
$0
($4,891.50)
($4,767.70)
($0.07)
($0.07)
($0.07)
($0.07)
$1,642.30
$4,215.10
$5,055.00
($1,561.30)

10-K
03/27/2015
CRITICAL ACCOUNTING POLICIES
Building and Building Improvements

Mining equipment
Office and shop furniture and equipment
Vehicles
Estimated
Useful Life *
5 40 years
2 7 years
3 7 years
5 years
* See Note 4 of the Company s financial statements

for explanation of change in useful life
in 2014.
____________________________

10-K
03/27/2015
RECENT ACCOUNTING PRONOUNCEMENTS
Twelve Months Ended December 31,

2014.00
REVENUES
OPERATING EXPENSES:
Production costs
Exploration costs
General and administrative *
Depreciation expense
Loss on impairment and disposition of land
and equipment
Total Operating Expenses
Operating Loss
OTHER INCOME (EXPENSE):
Interest expense, net, including amortization
of deferred financing cost and debt discount
Gain on revaluation of warrants derivative
Gain on revaluation of stock awards
Gain (Loss) on revaluation of PIK Notes
Other (expense)
Total Other Income (Expense)
Net Loss
____________________________
$234,221
49,464
4,626,139
5,195,830 *
1,164,366
-11,035,799
(10,801,578)
(1,667,285)
830,000
110,000
1,470,798
(258,252)
485,261
($10,316,317)
31,
% of Rev.
2013.00
100 %
21
###
###
497
0
%
%
%
%
%
### %
$54,825
17,244
4,551,666
8,569,413 *
317,570
2,482
13,458,375
Variance
Amount
% of Rev.
100 %
31
###
15,630
579
5
$179,39
%
%
%
%
%
24,548 %
### %)
(13,403,550)
### %)
(712) %)
(497,187)
(907) %)
354
47
628
(110)
207
%
%
%
%)
%
995,000
44,000
(195,000)
(6,789)
340,024
###
80
(356)
(12)
620
### %)
($13,063,526)
%
%
%)
%)
%
(23828% )
$2,747,20
riance
ount
%
$179,396
32,220
74,473
###
846,796
(2,482)
327 %
187
2
(39)
267
(100)
%
%
%)
%
%)
###
(18) %)
2,601,972
(19) %)
###
(165,000)
66,000
1,665,798
(251,463)
145,237
$2,747,209
235 %
(17)
150
854
3,704
43
(21%
%)
%
%
%
%
)

10-K
03/27/2015
RECENT ACCOUNTING PRONOUNCEMENTS
Twelve Months Ended December 31,

2013.00
REVENUES
OPERATING (INCOME) EXPENSES:
Production costs
Exploration costs
General and administrative
Loss on impairment and disposition of land
and equipment
Operating Loss
Gain on revaluation of warrants derivative
Gain (Loss) on revaluation of stock awards
(Loss) on revaluation of PIK Notes
Other (expense)
Total Other Income
Net Loss
____________________________
$54,825
17,244
4,551,666
8,569,413
317,570
2,482
13,458,375
(13,403,550)
(497,187)
995,000
44,000
(195,000)
(6,789)
340,024
($13,063,526)
% of Rev.
2012.00
100 %
31
###
15,630
579
5
$165,742
%
%
%
%
%
103,238
3,542,977
6,541,043
280,991
9,913
24,548 %
10,478,162
Variance
Amount
% of Rev.
100 %
62
###
###
170
6
%
%
%
%
%
### %
### %)
###
### %)
(907) %)
(12,993)
(8) %)
###
80
(356)
(12)
620
630,000
(27,000)
380 %
(16) %)
%
%
%)
%)
%
### %)
--
($110
-(9,986)
580,021
(6) %)
350 %
($9,732,399)
### %)
($3,331
riance
ount
%
($110,917)
(67) %)
(85,994)
1,008,689
2,028,370
36,579
(7,431)
(83)
28
31
13
(75)
%)
%
%
%
%)
2,980,213
28 %
(3,091,130)
30 %
(484,194)
### %
365,000
71,000
(195,000)
3,197
(239,997)
($3,331,127)
58 %
(263) %)
n/a
(32) %)
(41) %)
34 %

10-K
03/27/2015
ISSUANCE OF CONVERTIBLE DEBT
Key Terms
Inception Date
Cash Received
Principal
Original Issue Discount (OID)
Maturity (Term)
Series 2023 Notes

08/05/2013
Exercise Price
$1.40 at inception, adjusted downward
$10,500,000
$10,500,000
N/A
10 years, but convertible after 1 year based
on the market price of the Company s stock
based on antidilution provisions/downround

protection
Stated Interest
10% per annum, due semiannually
Derivative Liability
$2,055,000 established at inception due

to existence of antidilution provisions;
revalued every quarter using Monte Carlo
____________________________
Series A Notes
11/03/2014
$12,500,000
$19,848,486
$7,348,486
4 years, but may range between 2 years to
the full maturity of the Series 2023 Notes,
depending on whether a Specified Event
occurs and/or an Extension Option is elected
(see below for further details)
based on antidilution provisions; also
may be reduced by $0.10 if Extension Option
is elected (see below)
10% per annum, due semiannually, may be
reduced to 1% if Specified Event (see below)
occurs

10-K
03/27/2015
CONTRACTUAL OBLIGATIONS
Payment due by period

Total
Contractual Obligations:
Rent obligations
$309,871
$152,296
Total
$309,871
$152,296
____________________________
1 3 years
3 5 years
> 5 years
$157,575
--
--
$157,575
--
--

10-K
03/27/2015
CONTRACTUAL OBLIGATIONS
Page
Report of Independent Registered Public
Accounting Firm
33
Financial Statements:
Consolidated Balance Sheets as of December
31, 2014 and 2013
34
Consolidated Statements of Operations
35
for the years ended December 31, 2014, 2013,

and 2012
Consolidated Statements of Changes in
Stockholders Equity (Deficit) for the
years ended December 31, 2014, 2013 and
36
2012.00
Consolidated Statements of Cash Flows
for the years ended December 31, 2014, 2013,
and 2012
37
Notes to Consolidated Financial Statements
39
____________________________

10-K
03/27/2015
Balance Sheet
December 31,
2014.00
ASSETS
Current Assets
Cash and cash equivalents
Accounts receivable
Deposits and prepaid expenses
Total Current Assets
Property and Equipment, net
Other Assets
Deferred Financing Costs
Deposits
Total Other Assets
$10,701,666
112,831
289,644
11,104,141
7,055,874
28,750
268,937
297,687
TOTAL ASSETS
$18,457,702
LIABILITIES AND STOCKHOLDERS (DEFICIT)

EQUITY
Current Liabilities
Accounts payable and accrued liabilities
Stock award payable
Current portion of notes payable
Total Current Liabilities
$2,608,364
-246,894
2,855,258
Long-Term Liabilities
Long-term portion of notes payable
Warrant derivative
PIK notes payable, net of $18,400,297 and
$2,020,750 debt discount, respectively
PIK Note derivatives
Total Long-Term Liabilities
Total Liabilities
59,145
-13,024,439
10,035,625
23,119,209
25,974,467
Commitments and Contingencies (Note 15)

Stockholders (Deficit) Equity
Preferred stock, $0.001 par value, 10,000,000
shares authorized, none issued and outstanding
Common stock, $0.001 par value, 200,000,000
shares authorized, 95,054,552 and 94,646,013
shares issued and outstanding at December
31, 2014 and 2013, respectively
95,055
Additional paid-in capital

Accumulated deficit prior to the exploration
stage
Accumulated deficit during the exploration
stage
Total Stockholders (Deficit) Equity
TOTAL LIABILITIES AND STOCKHOLDERS (DEFICIT)
EQUITY
____________________________
64,526,469
###
###
(7,516,765)
$18,457,702
December 31,
2013.00
$8,685,552
5,756
282,639
8,973,947
6,031,549
-209,791
209,791
$15,215,287
$1,580,146
110,000
311,165
2,001,311
40,826
950,000
8,486,583
2,250,000
11,727,409
13,728,720
94,646
63,213,893
(20,009,496)
(41,812,476)
1,486,567
$15,215,287

10-K
03/27/2015
Income Statement
For the year ended

December 31,
2014.00
REVENUES
$234,221
OPERATING EXPENSES:
Production costs
Exploration costs
General and administrative
Loss from disposition and impairment of
land and equipment
Operating Loss
Gain on revaluation of warrant derivative
Gain (Loss) on revaluation of stock awards
Gain (Loss) on revaluation of PIK Note derivatives
Other expense
Total Other Income (Expense), net
Net loss
Net Loss Per Share (Basic and Diluted)
Weighted Average Shares Outstanding (Basic
and Diluted)
____________________________
49,464
4,626,139
5,195,830
1,164,366
-11,035,799
(10,801,578)
(1,667,285)
830,000
110,000
1,470,798
(258,252)
485,261
(10,316,317)
($0.11)
94,895,194
2013.00
2012.00
$54,825
$165,742
17,244
4,551,666
8,569,413
317,570
103,238
3,542,977
6,541,043
280,991
2,482
9,913
13,458,375
10,478,162
(13,403,550)
###
(497,187)
(12,993)
995,000
44,000
(195,000)
(6,789)
340,024
630,000
(27,000)
-(9,986)
580,021
(13,063,526)
(9,732,399)
($0.14)
($0.11)
94,303,264
89,552,788

10-K
03/27/2015
Shareholders' Equity
Common Stock
Shares
Balance, December 31, 2011
Reclassification from warrant derivative
liability due to change in valuation methodology
89,119,405
--
Shares issued for directors fees and other
103,580
services
Shares issued for cashless option and warrant
exercise
146,459
Shares issued for cash
1,250,000
Stock-based compensation expense
--
Net Loss
--
90,619,444

services
269,812
Shares issued for cash
3,756,757
--
Net Loss
--
94,646,013

services
408,539
Warrant Cancellation
--
--
Net Loss
--
95,054,552
____________________________
Accumulated
Deficit
Prior to
Exploration
Stage
Additional
Paid-In
Capital
Amount
89,120
47,765,350
780,000
103
150,956
146
(146)
1,250
1,623,750
--
--
2,314,154
--
-90,619
52,634,064
270
316,205
3,757
5,556,243
--
4,707,381
--
-94,646
63,213,893
409
326,860
--
120,000
--
865,716
--
-$95,055
$64,526,469
($20,009,49
cumulated
ficit
ior to
ploration
age
Accumulated
Deficit
During
Exploration
Stage
(20,009,496)
Total
Stockholders
Equity
(Deficit)
--
--
(19,016,551)
8,828,423
780,000
--
--
151,059
--
--
--
--
1,625,000
--
--
2,314,154
-(20,009,496)
--
(9,732,399)
(9,732,399)
(28,748,950)
3,966,237
--
--
316,475
--
--
5,560,000
--
--
4,707,381
-(20,009,496)
(13,063,526)
(13,063,526)
(41,812,476)
1,486,567
--
--
327,269
--
--
120,000
--
--
865,716
-($20,009,496)
(10,316,317)
(10,316,317)
($52,128,793)
($7,516,765)

10-K
03/27/2015
Cash Flows
For the Year Ended

December 31,
2014.00
Cash flows from operating activities:
Net loss
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation
Amortization of discount PIK Notes
Amortization of deferred financing costs
Accrued interest on PIK Notes
Stock issued for director and consulting
services
(Gain) on revaluation of warrant derivative
(Gain) Loss on revaluation of PIK note derivative
(Gain) Loss on revaluation of stock awards
for non-employees
Loss of disposal of equipment
Provision for (Reversal of) doubtful accounts
Change in operating assets and liabilities:
Accounts receivable
Deposits and prepaid expenses
Accounts payable and accrued expenses
Net cash used in operating activities
Cash flows from investing activities:
Purchases of property and equipment
Construction-in-progress
Net cash used in investing activities
Cash flows from financing activities:
Payments on notes payable
Payments on leases payable
Proceeds from PIK notes payable
Proceeds from sale of common stock
Net cash provided by financing activities
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning
of year
Cash and cash equivalents at end of year
($10,316,317)
1,164,366
218,031
1,250
1,076,250
327,269
865,716
(830,000)
(1,470,798)
(110,000)
--(107,075)
149,239
1,028,218
(8,003,851)
(2,039,562)
-(2,039,562)
(440,471)
-12,499,998
-12,059,527
2,016,114
8,685,552
$10,701,666
____________________________
2013.00
2012.00
($13,063,526)
($9,732,399)
317,570
41,583
---
280,991
----
316,475
151,059
4,707,381
(995,000)
195,000
(44,000)
2,314,154
(630,000)
-27,000
2,482
(25,106)
9,913
13,168
27,128
189,656
125,256
(8,205,101)
(482)
55,148
759,185
(6,752,263)
(64,345)
(1,982,013)
(2,046,358)
(321,440)
(1,051,537)
(1,372,977)
(479,092)
(304,099)
(10,094)
-10,500,000
5,560,000
15,580,908
-1,625,000
1,310,807
5,329,449
(6,814,433)
3,356,103
10,170,536
$8,685,552
$3,356,103

10-K
03/27/2015
Cash Flows
For the year ended

December 31,
2014.00
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest
Income Taxes
$10,460
$1,431
Supplemental disclosure of noncash investing

and financing activities:
Property and equipment financed with note
payable
$149,129
Construction-in-progress in accounts
payable
$120,000
Prepaid insurance financed with note payable
$245,390
Reclassification of Construction in Progress

to building and equipment
$3,091,163
Land reclassified from assets held for

sale to land and mining property
____________________________
$--
2013.00
$23,180
$3,841
$--
$--
2012.00
$18,206
$--
$438,250
$299,563
$105,000
$233,187
$170,600
$445,180

10-K
03/27/2015
Receivables
Building and Building Improvements

Mining equipment
Office and shop furniture and equipment
Vehicles
____________________________
Estimated
Useful Life *
5 40 years
2 7 years
3 7 years
5 years

10-K
03/27/2015
Recent Accounting Pronouncements
Land (a)
Land improvements
Buildings
Mining equipment
Milling equipment
Laboratory equipment
Office equipment
Vehicles
Less: Accumulated depreciation
Construction in progress (b)
Total
____________________________
2014.00
$945,180
164,758
3,308,465
1,684,197
2,620,300
594,451
72,174
148,673
9,538,198
2,482,324
2013.00
$945,180
164,758
631,299
1,569,635
333,594
65,934
60,992
140,002
3,911,394
1,317,958
7,055,874
0
$7,055,874
2,593,436
3,438,113
$6,031,549

10-K
03/27/2015
NOTE 6 #8211; FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS
Fair value measurement using inputs

Level 1
Level 2
Financial instruments:
Warrant derivative *
Series 2023 PIK Note Derivative
Series A PIK Note Derivative
____________________________
Level 3
-$478,149
$9,557,476
Carrying amount
December 31
-$478,149
$9,557,476
December 31
$950,000
$2,250,000
--

10-K
03/27/2015
Balance at December 31, 2013

Transfer into Level 3 (a)
Issuance of Series A PIK Note
Issuance of additional Series 2023 PIK
Note
Net unrealized losses included in earnings
(loss)
Balance at December 31, 2014
____________________________
$2,250,000
9,212,285
44,138
(1,470,798)
$10,035,625

10-K
03/27/2015
Series 2023 PIK Note derivative liability
Market price and estimated fair value of

stock
Exercise price
Term (years)
Dividend yield
Expected volatility *
Risk-free interest rate
____________________________
Fair Value Measurements

Using Inputs
December 31, 2014
December 31, 2013
$0.73
$1.10
$1.36
8.58
$1.40
9.58
$--
$-52.00 %
2.08 %
76.90 %
2.96 %

10-K
03/27/2015
Series A PIK Note derivative liability

stock
Exercise price
Term (years)
Dividend yield
Expected volatility
____________________________
Fair Value Measur

Using Inputs
December 31, 2014
$0.73
$0.92
3.83
$-52.00 %
2.08 %

10-K
03/27/2015
Warrant derivative liability

stock
Exercise price
Term (years)
Dividend yield
Expected volatility *
____________________________
Fair Value Mea

Using Inputs
December 31, 2
$1.10
$1.93
3
$-### %
0.78 %

10-K
03/27/2015
NOTE 7 - NOTES PAYABLE
December 31,
2014.00
Note payable for mining equipment, payable
$5,556 monthly, including interest (a)
$950 monthly, including interest (b)
$6,060 monthly, including interest (c)
Note payable for lab equipment, payable
$9,122 monthly, including interest (d)
$1,339 monthly, including interest (e)
Note payable for mine site vehicle, payable
$628 monthly (f)
$5,000 monthly, including interest (g)
$2,250 monthly, including interest (h)
Note payable to an insurance company, payable
$21,531monthly, including interest (i)
$6,094 monthly, including interest (j)
$4,447 monthly, including interest (k)
$4,447 monthly, including interest (l)
Less: Current Portion
Notes Payable, Long-Term Portion
____________________________
$-14,057
6,033
18,246
55,720
20,736
--149,036
42,211
--306,039
(246,894)
$59,145
2013.00
$42,927
23,302
76,313
--28,276
9,932
8,898
--132,576
29,767
351,991
(311,165)
$40,826

10-K
03/27/2015
2015.00
2016.00
2017.00
2018.00
Total Notes Payable
____________________________
$246,894
25,457
20,615
13,073
$306,039

10-K
03/27/2015
Key Terms
Inception Date
Cash Received
Principal (Initial Liability)
Original Issue Discount (OID)
Maturity (Term)
Series 2023 Notes

08/05/2013
Exercise Price
$10,500,000
$10,500,000
N/A
10 years, but convertible after 1 year based
on the market price of the Company s stock
based on antidilution provisions/downround

protection
Stated Interest
10% per annum, due semiannually
Derivative Liability

____________________________
Series A Notes
11/03/2014
$12,500,000
$19,848,486
$7,348,486
4 years, but may range between 2 years to
the full maturity of the Series 2023 Notes,
depending on whether a Specified Event
occurs and/or an Extension Option is elected
(see below for further details)
based on antidilution provisions; also
may be reduced by $0.10 if Extension Option
is elected (see below)
10% per annum, due semiannually, may be
reduced to 1% if Specified Event (see below)
occurs

10-K
03/27/2015
(in $$)
PIK Note Payable, Gross
Less: Discount
PIK Note Payable, Net
PIK Note Derivative Liability
____________________________
Series 2023 Notes

11,576,250
(1,949,555)
9,626,695
478,149
Series A Notes
ries A Notes
19,848,486
(16,450,742)
3,397,744
9,557,476
Total
31,424,736
(18,400,297)
13,024,439
10,035,625

10-K
03/27/2015
(in $$)
PIK Note Payable, Gross
Less: Discount
PIK Note Payable, Net
PIK Note Derivative Liability
____________________________
Series 2023 Notes

10,507,333
(2,020,750)
8,486,583
2,250,000
Series A No
-----
Total
10,507,333
(2,020,750)
8,486,583
2,250,000

10-K
03/27/2015
Outstanding Stock Warrants
Exercise Price
$
$
$
$
$
$
0.75
0.78
0.80
1.00
1.15
2.00
Warrants Outstanding and Exercisable

Number Outstanding
Weighted Average
Life (years)
139,340
0.75
213,402
1.09
124,481
1.00
180,000
0.81
461,340
6.33
54,367
1.59
1,172,930
3.08
____________________________
Weighted Average
$0.75
$0.78
$0.80
$1.00
$1.15
$2.00
$1.01

10-K
03/27/2015
Outstanding Stock Options
Dividend Yield
Expected Life (years)
Expected Volatility
Risk Free Interest Rate
____________________________
2014.00
0%
5.50
56.1%
1.79%
2013.00
0%
4.40
63.5%
1.48%

10-K
03/27/2015
December 31, 2014

Shares
Outstanding at beginning of period

Issued
Exercised
Forfeited
Outstanding at end of period
____________________________
Weighted
Average
Exercise Price
15,878,116
1,175,000
$1.03
17,053,116
$1.02
---
ighted
erage
ercise Price
December 31, 2013

Shares
$1.03
0.84
---
15,455,471
760,867
--
$1.02
Weighted
Average
Exercise Price
$1.04
1.19
--
(338,222)
15,878,116
$1.73
$1.03

10-K
03/27/2015
Shares
200,000
375,000
600,000
Vesting Information
Frequency
Quarterly
Immediately
Monthly
____________________________
Begin Date
03/31/2014
06/10/2014
06/10/2014
End Date
12/31/2014
06/10/2014
06/09/2017

10-K
03/27/2015
Options Outstanding
Number
Outstanding
Weighted
Average
Remaining
Contractual Life
Weighted
Average
Exercise
Price
7,358,277
3,405,134
975,000
60,000
300,000
3.94
6.69
9.45
1.50
8.64
$0.70
$0.83
$0.84
$1.00
$1.10
300,000
100,000
115,000
125,000
330,000
7,645
3,077,060
900,000
17,053,116
8.48
3.09
6.24
3.09
6.95
3.09
7.89
6.64
5.87
$1.15
$1.24
$1.35
$1.45
$1.55
$1.58
$1.66
$1.90
$1.02
____________________________
Options Exercisable
Number
Exercisable
Weighted
Average
Exercise
Price
7,358,277
3,405,134
491,667
60,000
100,000
$0.70
$0.83
$0.84
$1.00
$1.10
133,333
100,000
115,000
125,000
296,667
7,645
3,077,060
900,000
16,169,783
$1.15
$1.24
$1.35
$1.45
$1.55
$1.58
$1.66
$1.90
$1.02

10-K
03/27/2015
NOTE 11 - PER SHARE DATA
Net Loss
(Numerator)
For the year ended December 31, 2014:
Basic and Diluted EPS
Net loss
($10,316,317)

Net loss
($13,063,526)

Net loss
____________________________
($9,732,399)
Shares
(Denominator)
ares
enominator)
Per-Share
Amount
94,895,194
($0.11)
94,303,264
($0.14)
89,552,788
($0.11)

10-K
03/27/2015
December 31, 2014

Deferred tax assets:
Net operating loss carryforward
Stock-based compensation
Stock Award Payable
Total deferred tax assets
$23,246,809
4,121,311
$18,454,164
-27,368,120
Deferred tax liabilities:

Property and equipment
(673,241)
Less: valuation allowance
(26,694,879)
$--
____________________________
December 31, 2013
$--
cember 31, 2013
$18,454,164
3,685,646
40,792
22,180,602
(421,025)
(21,759,577)

10-K
03/27/2015
December 31, 2014

Federal statutory rate
State income taxes Idaho
State income taxes - Utah
State and local income taxes - NY
Change in valuation allowance
Net nontaxable gain on derivative
Miscellaneous
($3,610,711)
(11,016)
(239,093)
(46,372)
4,935,302
(843,861)
(184,249)
$--
____________________________
35.00
0.10
2.30
0.40
(47.80)
8.20
1.80
0
December 31, 2013

%
%
%
%
%)
%
%
%
($4,572,234)
(14,264)
(199,166)
(58,721)
5,034,877
(290,623)
100,131
$--
December 31, 2012

35.00
0.10
1.50
0.50
(39.0%
2.20
(0.3%
%
%
%
%
)
%
)
0 %
($3,406,340)
(37,982)
(227,169)
-3,903,777
(232,286)
0
$--
012
35.00 %
0.40 %
2.30 %
-(40.1%
)
2.40 %
-0 %

10-K
03/27/2015
Investor
IBS Turnaround Fund (A Limited Partnership)

IBS Turnaround Fund QP (A Limited Partnership)
IBS Opportunity Fund, Ltd.
____________________________
Investment
531,960
1,118,040
350,000
$2,000,000
OID/Discount
Principal
Shares Issuable
@0.92, excluding
interest
$0.66
806,000
876,087
$0.66
1,694,000
1,841,304
$0.66
530,303
$3,030,303
576,416
3,293,807

10-K
03/27/2015
Note 15A - FINANCIAL INFORMATION BY QUARTER (UNAUDITED)
2014 For Quarter Ended

Revenue
Operating loss
Net loss
Loss Per Share (Basic and Diluted)
____________________________
December 31
$119,533
($3,147,929)
($4,346,638)
($0.05)
September 30
$55,681
($2,389,291)
($2,576,750)
($0.03)
June 30
$47,993
($2,712,065)
($3,035,704)
($0.03)
March 31
$11,014
($2,552,293)
($357,225)
$0.00 )

10-K
03/27/2015
Note 15A - FINANCIAL INFORMATION BY QUARTER (UNAUDITED)
2013 For Quarter Ended

Revenue
Operating loss
Net loss
Loss Per Share (Basic and Diluted)
____________________________
December 31
$10,088
($3,795,077)
($3,510,651)
($0.04)
September 30
$6,773
($3,250,990)
($3,869,099)
($0.04)
June 30
$12,878
($2,774,969)
($2,604,885)
($0.03)
March 31
$25,086
($3,582,514)
($3,078,891)
($0.03)

10-K
03/27/2015
Identification of Directors and Officers
Name and Position with The Company

John F. Levy
Age
59
David A. Taft
Mario Concha
58
74
Robert T. Betz
Ali Zamani
Andre M. Zeitoun
73
35
42
Nat Krishnamurti
43
William Gleeson
72
____________________________
Director 1
/Officer Since
Non-executive Chairman since 2009, Director
since 2008
Director since 2008
Director since 2013
Principal Occupation
CEO of Board Advisory
Director since 2014

Director since 2014
Chief Executive Officer, President and
Director since 2009
Officer since 2012
President, IBS Capital LLC

President, Mario Concha & Associates,
LLC
Owner, Personal Care Ingredients
Portfolio Manager, Gefinor Capital
President, Chief Executive Officer and
Director of Company
Chief Financial Officer
Officer since 2011
General Counsel

10-K
03/27/2015
Committees of the Board
John Levy
Mario Concha
Robert Betz
Ali Zamani
Audit Committee
X
X
Nominating Committee
X
X
X
____________________________
Compensation Committee
X
X
X

10-K
03/27/2015
Summary Compensation
Name and
Principal Position
Salary
Year
Bonus
$0
$0
400,000
400,000
850,000
Andre M. Zeitoun,
CEO, Director (2)
###
###
###
600,000
600,000
600,000
Nat Krishnamurti,
CFO (3)
###
###
###
225,000
225,000
105,000
----
William Gleeson,
General Counsel
###
###
###
300,000
250,000
200,000
----
____________________________
Option
Awards
All Other
Comp.
$0
--2,408,539
----
31,055
49,686
400,200
270,486
-100,065
Total
$0
5,000
5,000
2,917
----
$0
tal
$0
1,000,000
1,000,000
3,858,539
261,055
279,686
508,117
545,486
250,000
300,065

10-K
03/27/2015
Stock Option Grants
Name
Grant date
Nat Krishnamurti, CFO (1)

William Gleeson (1)
____________________________
06-10-2014
06-10-2014
All other option aw

underlying
options
(#)
75,000
600,000
Exercise or base
Grant date fair val
awards
($/Share)
awards
0.84
0.84
$0
31,055
270,486

10-K
03/27/2015
Outstanding Equity Awards
OUTSTANDING EQUITY AWARDS AT FISCAL YEAR

END
OPTION AWARDS
Name
Grant Date
Andre Zeitoun
Nat Krishnamurti
William Gleeson
Number of Securities Un
Options: Exercisable
01-01-09
02-08-11
11-20-12
05-29-12
3,949,966
1,742,792
1,742,792
275,001
05-29-13
06-10-14
08-18-11
11-20-12
06-10-14
65,000
75,000
900,000
72,406
116,669
____________________________
Number of Securitie
Options: Unexercisa
----
Equity Ince
Securities
Options
Option Exercise P
24,999
-----
$0.70
$0.83
$1.66
$1.55
483,331
------
$1.35
$0.84
$1.90
$1.66
$0.84
-----
Option Expiration
01-01-19
01-01-22
01-01-23
05-01-22
05-29-23
06-10-24
08-18-21
11-20-22
06-10-24

10-K
03/27/2015
Grants of Plan-Based Awards
Name
Fees Earned or
Paid in Cash
Common Stock Awar
John Levy (1)
$70,000
$--
David Taft (2)
$71,288
$--
Mario Concha (1)

Robert Betz (1) (3)
Ali Zamani (1) (4)
$58,750
$38,733
$--
$--
Andre Zeitoun
$--
____________________________
$16,600
$45,278
$--
Options
Awards (1)
Total ($)
$21,288
$91,288
$--
$71,288
$21,288
$21,288
$21,288
$--
$80,038
$76,621
$66,566
$--

10-K
03/27/2015
Beneficial Ownership
200,000,000 authorized shares of Common

Stock;
____________________________

10-K
03/27/2015
Security Ownership of Certain Beneficial Owners and Management
95,331,128 issued shares of Common Stock

8,937,546 issuable shares of Common Stock,
the number of shares issuable on conversion
of 10% PIK Election Convertible Notes Due
2023 ("Series 2023 Notes") as of February
28, 2015.
21,574,441 issuable shares of Common Stock,
the number of shares issuable on the conversion
of 10% PIK Election Convertible Notes Due
2018 ("Series A Notes") the number of shares
issuable as of February 28, 2015.
____________________________

10-K
03/27/2015
Ownership Tables
Name and Address (1)
Number of Shares of
Common Stock
Beneficially Owned (2)
Andre Zeitoun (3) (4) (10)

John Levy (3) (5)
David Taft (3) (8)
Mario Concha (3) (7)
Robert Betz (3) (6)
Ali Zamani (3) (9)
Nat Krishnamurti (4) (11)
8,762,899
630,957
25,624,957
155,275
142,036
183,944
440,000
William Gleeson (4) (12)

All Officers and Directors as a Group
IBS Capital, LLC (8)
Samlyn Capital, LLC (13)
Berylson Capital Partners, LLC (14)
James Berylson (14)
1,155,743
37,095,811
25,624,957
20,869,565
5,620,170
6,893,170
____________________________
Percentage of Co
Stock Beneficial
Owned
rcentage of Co
ock Beneficial
ned
8.50 %
*
26.90 %
*
*
*
*
*
35.30
26.90
21.90
5.90
7.20
%
%
%
%
%

10-K
03/27/2015
Director Independence
December 31, 2014

Audit Fees
S-1 filing review
Tax Fees (1)
All Other Fees
Total
December 31, 2013
$117,500
4,000
7,500
--
$117,500
8,000
7,500
--
$129,000
$133,000
____________________________

10-K
03/27/2015
SCHEDULE II#8212;VALUATION AND QUALIFYING ACCOUNTS
Balance at
Beginning of
Year
Additions Charged
to Expenses/
Other Accounts
$--
$-$--
Allowance for doubtful accounts

2014.00
2013.00
2012.00
$25,106
$11,938
$13,168
Valuation allowance for deferred tax assets

2014.00
2013.00
$21,759,577
$16,724,700
$4,935,302
$5,034,877
2012.00
$12,820,923
$3,903,777
____________________________
ditions Charged
Expenses/
her Accounts
Net
(Deductions)
Recoveries
Balance at
End of Year
$--
$-$--
$25,106
$13,168
$--
$25,106
$4,935,302
$5,034,877
$-$--
$26,694,879
$21,759,577
$3,903,777
$--
$16,724,700

10-K
03/27/2015
Exhibit
Number
3.10 Articles of Incor
3.20 Bylaws, as amende
10.10 Form of Investmen
with January, 201
with August, 2013
10.30 Form of 10% PIK E
due 2023 used in
2013 capital rais
with November, 20
10.50 Form of 10% PIK E
due 2018 used in
2014 capital rais
10.60 Form of Warrant C
used in connectio
capital raise
10.70 2012 Long Term Op
10.80 Form of Stock Opt
10.90 Short Term Incent
10.10 Form of Stock Gra*
10.11 Terms of Private
10.12 Directors Compens
23.10 Consent of Eisner*
Registered Public
31.10 Certification pur*
of the Securities
pursuant to Secti
Act of 2002, of t
Officer
of the Securities
pursuant to Secti
Act of 2002, of t
Officer
1350, as adopted
of the Sarbanes-O
Principal Executi
1350, as adopted
of the Sarbanes-O
Principal Financi
95 Mine Safety Discl*
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
101.INS
101.SCH
101.CAL
101.DEF
101.LAB
101.PRE
XBRL
XBRL
XBRL
XBRL
XBRL
XBRL
Instance
Taxonomy
Taxonomy
Taxonomy
Taxonomy
Taxonomy
**
Ext**
Ext**
Ext**
Ext**
Ext**
____________________________

10-K
03/27/2015
(1) Incorporated by reference to exhibit 3(i)(a)

included in the Registrant s Current Report
on Form 8-K, filed on November 26, 2012
(2) Incorporated by reference to exhibit 3(i)(a)
(3) Incorporated by reference to exhibit 99.1
on Form 8-K, filed on January 23, 2013
on Form 8-K, filed on August 5, 2013
on Form 8-K, filed on August 5, 2013
(9) Incorporated by reference to exhibits
99.1 included in the Registrant s Current
Report on Form 8-K, filed on November 26,
2012.00
2012.00
2012.00
(12) Incorporated by reference to Items 1.01
on Form 8-K, filed on January 23, 2013, August
5, 2013, and November 5, 2014
included in Registrant s Form S-1 filed
on February 17, 2015
____________________________


10-K
03/27/2015
SIGNATURES
APPLIED MINERALS, INC.

By: /s/ ANDRE ZEITOUN
Andre Zeitoun
Chief Executive Officer
By: /s/ NAT KRISHNAMURTI
Nat Krishnamurti
____________________________
Created by Morningstar Document Researc
http://documentresearch.morningstar.com

10-K
03/27/2015
SIGNATURES
Signature
Title
Date
/s/ JOHN F. LEVY

John F. Levy
Director
March 27, 2015
/s/ ANDRE ZEITOUN

Andre Zeitoun
Director
March 27, 2015
/s/ ROBERT BETZ

Robert Betz
Director
March 27, 2015
/s/ MARIO CONCHA

Mario Concha
Director
March 27, 2015
/s/ DAVID TAFT

David Taft
Director
March 27, 2015
/s/ ALI ZAMANI

Ali Zamani
Director
March 27, 2015
____________________________

10-K
03/27/2015
Incentives
APPLIED MINERALS INC.

By:
Its:
______________________
Created by Morningstar
http://documentresearc

10-K
03/27/2015
RESTRICTED STOCK AWARD AGREEMENT
[Insert Name]
Signature:
Printed Name:
____________________________
Created by Morningstar Document
http://documentresearch.mornings

10-K
03/27/2015
AS ADOPTED PURSUANT TO
Date: March 27, 2015

Andre Zeitoun
____________________________

10-K
03/27/2015
NO TITLE

Nat Krishnamurti
____________________________

10-K
03/27/2015
NO TITLE

Andre Zeitoun
____________________________

10-K
03/27/2015
NO TITLE

Nat Krishnamurti
____________________________

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Applied Minerals, Inc.

Unresolved Staff Comments

Mine Safety Disclosures

Selected Financial Data

Management s Discussion and Analysis of

Quantitative and Qualitative Disclosures

Consolidated Financial Statements and

Changes in and Disagreements with Accountants

Controls and Procedures

Security Ownership of Certain Beneficial

Certain Relationships and Related Transactions,

Principal Accounting Fees and Services