applied minerals inc form 10-k

Sheet: TABLE OF CONTENTSSheet: PART ISheet: PART I (1)Sheet: Dragon PitSheet: Dragon Pit (1)Sheet: Western AreaSheet: Western Area (1)Sheet: Surface PilesSheet: Market Prices for Our Common StSheet: Equity Compensation PlansSheet: AMONG APPLIED MINERALS INCSheet: AMONG APPLIED MINERALS (1)Sheet: CRITICAL ACCOUNTING POLICIESSheet: RECENT ACCOUNTING PRONOUNCEMENTSheet: RECENT ACCOUNTING (1)Sheet: ISSUANCE OF CONVERTIBLE DEBTSheet: CONTRACTUAL OBLIGATIONSSheet: CONTRACTUAL OBL (1)Sheet: Balance SheetSheet: Income StatementSheet: Shareholders EquitySheet: Cash FlowsSheet: Cash Flows (1)Sheet: ReceivablesSheet: Recent Accounting (2)Sheet: NOTE 6 8211 FAIR VALUE MEASUREMSheet: NOTE 6 8211 FAIR VALUE (1)Sheet: NOTE 6 8211 FAIR VALUE (2)Sheet: NOTE 6 8211 FAIR VALUE (3)Sheet: NOTE 6 8211 FAIR VALUE (4)Sheet: NOTE 7 NOTES PAYABLESheet: NOTE 7 NOTES PA (1)Sheet: NOTE 7 NOTES PA (2)Sheet: NOTE 7 NOTES PA (3)Sheet: NOTE 7 NOTES PA (4)Sheet: Outstanding Stock WarrantsSheet: Outstanding Stock OptionsSheet: Outstanding Stock (1)Sheet: Outstanding Stock (2)Sheet: Outstanding Stock (3)Sheet: NOTE 11 PER SHARE DATASheet: NOTE 11 PER SHARE (1)Sheet: NOTE 11 PER SHARE (2)Sheet: NOTE 11 PER SHARE (3)Sheet: Note 15A FINANCIAL INFORMATION Sheet: Note 15A FINANCIAL (1)Sheet: Identification of Directors andSheet: Committees of the BoardSheet: Summary CompensationSheet: Stock Option GrantsSheet: Outstanding Equity AwardsSheet: Grants of PlanBased AwardsSheet: Beneficial OwnershipSheet: Security Ownership of Certain BSheet: Ownership TablesSheet: Director IndependenceSheet: SCHEDULE II8212VALUATION AND QUSheet: SCHEDULE II8212VALUATION (1)Sheet: SCHEDULE II8212VALUATION (2)Sheet: SIGNATURESSheet: SIGNATURES (1)Sheet: IncentivesSheet: RESTRICTED STOCK AWARD AGREEMENSheet: AS ADOPTED PURSUANT TOSheet: NO TITLESheet: NO TITLE (1)Sheet: NO TITLE (2)Applied Minerals, Inc.10-K03/27/2015

TABLE OF CONTENTS

Page(s)

PART I

Item 1.Business1.0

Item 1A.Risk Factors19.0

Item 1B.Unresolved Staff Comments21.0

Item 2.Properties21.0

Item 3.Legal Proceedings22.0

Item 4.Mine Safety Disclosures22.0

PART II

Item 5.Market Price for the Registrant s Common23.0

Equity, Related Stockholders Matters

and Issuer Purchases of Equity Securities

Item 6.Selected Financial Data24.0

Item 7.Management s Discussion and Analysis of25.0

Financial Condition and Results of Operation

Item 7A.Quantitative and Qualitative Disclosures32.0

About Market Risk

Item 8.Consolidated Financial Statements and32.0

Supplementary Data

Item 9.Changes in and Disagreements with Accountants51.0

on Accounting and Financial Disclosure

Item 9A.Controls and Procedures51.0

Item 9B.Other Information51.0

PART III

Item 10.Directors and Executive Officers and Corporate52.0

Governance

Item 11.Executive Compensation57.0

Item 12.Security Ownership of Certain Beneficial71.0

Owners and Management and Related Stockholder

Matters

Item 13.Certain Relationships and Related Transactions,73.0

and Director Independence

Item 14.Principal Accounting Fees and Services73.0

PART IV

Item 15.Exhibits, Financial Statement Schedules74.0

____________________________Created by Morningstar Document Research.http://documentresearch.morningstar.com/Applied Minerals, Inc.10-K03/27/2015

PART I

2014.02013.0Tons extracted

Halloysite clay650.0450.0Iron oxide2200.03300.0Products produced (tons)

Halloysite clay69.022.0Iron oxide166.013.0


PART I

Percentages of Sales Classified by Customer

UseSales for:2014.02013.0Commercial Production70.069.0Scale-Ups26.017.0Testing2.04.0Other2.010.0

100.0100.0


Dragon Pit

Average Clay Content (%)AreaAcresResourceClay (tons)Clay TypeHalloysiteKaoliniteIllite-SmectiteTotalDragon Pit4.95Measured 1629650.0Pure Halloysite94.0N/AN/A94.0

565575.0Mix42.619.211.673.4


Dragon Pit

Average Content of Hematite, Goethite

and LOI (%)AreaAcresResourceIron (tons)HematiteGeothiteHematite + GoethiteLOIDragon Pit4.95Measured2631825.024.369.794.011.4


Western Area

Average Clay Content (%)AreaAcresResourceClay (tons) 1HalloysiteKaoliniteIllite-SmectiteTotalWestern Area6.3Measured862903.06.747.217.571.3


Western Area

Average Content of Hematite, Goethite

and LOI (%)AreaAcresResourceIron (tons)HematiteGeothiteHematite + GoethiteLOIWestern Area6.33Measured670450.075.920.296.16.8


Surface Piles

Average Clay Content (%)

Surface Pile

Clay

Halloysite

Kaolinite

Illite-

Total

(tons)

Smectite

1.0

154500.0

41.8

25.8

9.4

77.0

2.0

127100.0

19.0

33.6

27.8

80.4

3.0

298900.0

9.4

30.7

24.9

65.4

4.0

33280.0

13.2

31.7

31.7

76.7

5.0

144100.0

13.5

13.5

31.8

81.8


Market Prices for Our Common Stock

Year 2014

Year 2013

High

Low

High

Low

First Quarter

1.09

0.69

1.72

1.4

Second Quarter

0.85

0.6

1.47

1.11

Third Quarter

0.86

0.67

1.19

0.98

Fourth Quarter

0.78

0.59

1.22

1.0


Equity Compensation Plans

Equity Compensation Information

As of December 31, 2014

Number of securities to be issued upon exercise

Weighted-average exercise price of outstanding

Number of securities remaining available

of outstanding options, warrants, and

options, warrants and rights

for future issuance under equity compensation

rights

plans (excluding securities reflected

in column (a))

(a)

(b)

(c)

Equity compensation plans approved by

4978526.0

1.39

3644490.0

security holders

Equity compensation plans not approved

1.3251341E7

0.87

--

by security holders

Total

1.8229867E7

1.01


AMONG APPLIED MINERALS, INC.

Dec-09

Dec-10

Dec-11

Dec-12

Dec-13

Dec-14

Applied Minerals, Inc.

100.0

138.0

219.0

266.0

190.0

126.0

iShares Russell Microcap Index ETF

100.0

128.0

114.0

134.0

192.0

197.0

S&P Metals & Mining Index ETF

100.0

133.0

95.0

87.0

82.0

60.0


AMONG APPLIED MINERALS, INC.

Year Ended December 31 (in 000 s except per

2014.0

2013.0

2012.0

2011.0

2010.0

share data)Revenue

234.2

54.8

165.7

93.0

0.0

Loss from continuing operations

-10316.0

-13063.5

-9732.4

-7424.5

-4891.5

Net loss

-10316.0

-13063.5

-9732.4

-7430.3

-4767.7

Loss from continuing operations - basic

-0.11

-0.14

-0.11

-0.1

-0.07

Net loss - basic

-0.11

-0.14

-0.11

-0.1

-0.07

Loss from continuing operations - diluted

-0.11

-0.14

-0.11

-0.1

-0.07

Net loss - diluted

-0.11

-0.14

-0.11

-0.1

-0.07

Cash and equivalents

10701.7

8685.6

3356.1

10170.5

1642.3

Total assets

18457.7

15215.3

7818.5

12874.8

4215.1

Long-term liabilities

23119.0

11727.4

2129.4

3452.8

5055.0

Shareholders equity (deficit)

-7517.0

1486.6

3966.2

8828.4

-1561.3


CRITICAL ACCOUNTING POLICIES

Estimated

Useful Life *Building and Building Improvements5 40 yearsMining equipment2 7 yearsOffice and shop furniture and equipment3 7 yearsVehicles5 years

* See Note 4 of the Company s financial statementsfor explanation of change in useful lifein 2014.


RECENT ACCOUNTING PRONOUNCEMENTS

Twelve Months Ended December 31,

Variance

2014.0

% of Rev.

2013.0

% of Rev.

Amount

%

REVENUES

234221.0

100.0%

54825.0

100.0%

179396.0

327.0%

OPERATING EXPENSES:

Production costs

49464.0

21.0%

17244.0

31.0%

32220.0

187.0%Exploration costs

4626139.0

1975.0%

4551666.0

8302.0%

74473.0

2.0%General and administrative *

5195830.0*

2218.0%

8569413.0*

15630.0%

-3373583.0

-39.0%)Depreciation expense

1164366.0

497.0%

317570.0

579.0%

846796.0

267.0%Loss on impairment and disposition of land

--

0.0%

2482.0

5.0%

-2482.0

-100.0%)and equipmentTotal Operating Expenses

1.1035799E7

4712.0%

1.3458375E7

24548.0%

-2422576.0

-18.0%)

Operating Loss

-1.0801578E7

-4612.0%)

-1.340355E7

-24448.0%)

2601972.0

-19.0%)

OTHER INCOME (EXPENSE):

Interest expense, net, including amortization

-1667285.0

-712.0%)

-497187.0

-907.0%)

-1170098.0

235.0%of deferred financing cost and debt discountGain on revaluation of warrants derivative

830000.0

354.0%

995000.0

1815.0%

-165000.0

-17.0%)Gain on revaluation of stock awards

110000.0

47.0%

44000.0

80.0%

66000.0

150.0%Gain (Loss) on revaluation of PIK Notes

1470798.0

628.0%

-195000.0

-356.0%)

1665798.0

854.0%Other (expense)

-258252.0

-110.0%)

-6789.0

-12.0%)

-251463.0

3704.0%Total Other Income (Expense)

485261.0

207.0%

340024.0

620.0%

145237.0

43.0%

Net Loss

-1.0316317E7

-4405.0%)

-1.3063526E7

(23828%)

2747209.0

(21%)


RECENT ACCOUNTING PRONOUNCEMENTS

Twelve Months Ended December 31,

Variance

2013.0

% of Rev.

2012.0

% of Rev.

Amount

%

REVENUES

54825.0

100.0%

165742.0

100.0%

-110917.0

-67.0%)

OPERATING (INCOME) EXPENSES:

Production costs

17244.0

31.0%

103238.0

62.0%

-85994.0

-83.0%)Exploration costs

4551666.0

8302.0%

3542977.0

2138.0%

1008689.0

28.0%General and administrative

8569413.0

15630.0%

6541043.0

3947.0%

2028370.0

31.0%Depreciation expense

317570.0

579.0%

280991.0

170.0%

36579.0

13.0%Loss on impairment and disposition of land

2482.0

5.0%

9913.0

6.0%

-7431.0

-75.0%)and equipmentTotal Operating Expenses

1.3458375E7

24548.0%

1.0478162E7

6322.0%

2980213.0

28.0%

Operating Loss

-1.340355E7

-24448.0%)

-1.031242E7

-6222.0%)

-3091130.0

30.0%



-497187.0

-907.0%)

-12993.0

-8.0%)

-484194.0

3727.0%of deferred financing cost and debt discountGain on revaluation of warrants derivative

995000.0

1815.0%

630000.0

380.0%

365000.0

58.0%Gain (Loss) on revaluation of stock awards

44000.0

80.0%

-27000.0

-16.0%)

71000.0

-263.0%)(Loss) on revaluation of PIK Notes

-195000.0

-356.0%)

--

--

-195000.0

n/a

Other (expense)

-6789.0

-12.0%)

-9986.0

-6.0%)

3197.0

-32.0%)Total Other Income

340024.0

620.0%

580021.0

350.0%

-239997.0

-41.0%)

Net Loss

-1.3063526E7

-23828.0%)

-9732399.0

-5872.0%)

-3331127.0

34.0%


ISSUANCE OF CONVERTIBLE DEBT

Key TermsSeries 2023 Notes

Series A Notes

Inception Date08/05/2013

11/03/2014

Cash Received1.05E7

1.25E7

Principal1.05E7

1.9848486E7

Original Issue Discount (OID)N/A

7348486.0

Maturity (Term)10 years, but convertible after 1 year based

4 years, but may range between 2 years to

on the market price of the Company s stock

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)Exercise Price$1.40 at inception, adjusted downward

$0.92 at inception, adjusted downward

based on antidilution provisions/downround

based on antidilution provisions; also

protection

may be reduced by $0.10 if Extension Option

is elected (see below)Stated Interest10% per annum, due semiannually

10% per annum, due semiannually, may be

reduced to 1% if Specified Event (see below)

occursDerivative Liability$2,055,000 established at inception due

$9,212,285 established at inception due

to existence of antidilution provisions;


revalued every quarter using Monte Carlo

revalued every quarter using Monte Carlo____________________________Created by Morningstar Document Research.http://documentresearch.morningstar.com/Applied Minerals, Inc.10-K03/27/2015

CONTRACTUAL OBLIGATIONS

Payment due by period

Total

1 3 years

3 5 years

> 5 years

Contractual Obligations:

Rent obligations

309871.0

152296.0

157575.0

--

--

Total

309871.0

152296.0

157575.0

--

--


CONTRACTUAL OBLIGATIONS

Page

Report of Independent Registered Public33.0Accounting Firm

Financial Statements:

Consolidated Balance Sheets as of December34.031, 2014 and 2013

Consolidated Statements of Operations35.0for the years ended December 31, 2014, 2013,and 2012

Consolidated Statements of Changes in36.0Stockholders Equity (Deficit) for theyears ended December 31, 2014, 2013 and2012.0

Consolidated Statements of Cash Flows37.0for the years ended December 31, 2014, 2013,and 2012

Notes to Consolidated Financial Statements39.0


Balance Sheet

December 31,

December 31,

2014.0

2013.0

ASSETS

Current Assets

Cash and cash equivalents

1.0701666E7

8685552.0

Accounts receivable

112831.0

5756.0

Deposits and prepaid expenses

289644.0

282639.0

Total Current Assets

1.1104141E7

8973947.0

Property and Equipment, net

7055874.0

6031549.0

Other Assets

Deferred Financing Costs

28750.0

--

Deposits

268937.0

209791.0

Total Other Assets

297687.0

209791.0

TOTAL ASSETS

1.8457702E7

1.5215287E7

LIABILITIES AND STOCKHOLDERS (DEFICIT)

EQUITYCurrent Liabilities

Accounts payable and accrued liabilities

2608364.0

1580146.0

Stock award payable

--

110000.0

Current portion of notes payable

246894.0

311165.0

Total Current Liabilities

2855258.0

2001311.0

Long-Term Liabilities

Long-term portion of notes payable

59145.0

40826.0

Warrant derivative

--

950000.0

PIK notes payable, net of $18,400,297 and

1.3024439E7

8486583.0

$2,020,750 debt discount, respectivelyPIK Note derivatives

1.0035625E7

2250000.0

Total Long-Term Liabilities

2.3119209E7

1.1727409E7

Total Liabilities

2.5974467E7

1.372872E7

Commitments and Contingencies (Note 15)

Stockholders (Deficit) Equity

Preferred stock, $0.001 par value, 10,000,000

shares authorized, none issued and outstandingCommon stock, $0.001 par value, 200,000,000

95055.0

94646.0

shares authorized, 95,054,552 and 94,646,013shares issued and outstanding at December31, 2014 and 2013, respectivelyAdditional paid-in capital

6.4526469E7

6.3213893E7

Accumulated deficit prior to the exploration

-2.0009496E7

-2.0009496E7

stageAccumulated deficit during the exploration

-5.2128793E7

-4.1812476E7

stageTotal Stockholders (Deficit) Equity

-7516765.0

1486567.0

TOTAL LIABILITIES AND STOCKHOLDERS (DEFICIT)

1.8457702E7

1.5215287E7

EQUITY


Income Statement

For the year ended

December 31,

2014.0

2013.0

2012.0

REVENUES

234221.0

54825.0

165742.0

OPERATING EXPENSES:

Production costs

49464.0

17244.0

103238.0

Exploration costs

4626139.0

4551666.0

3542977.0

General and administrative

5195830.0

8569413.0

6541043.0

Depreciation expense

1164366.0

317570.0

280991.0

Loss from disposition and impairment of

--

2482.0

9913.0

land and equipmentTotal Operating Expenses

1.1035799E7

1.3458375E7

1.0478162E7

Operating Loss

-1.0801578E7

-1.340355E7

-1.031242E7



-1667285.0

-497187.0

-12993.0

of deferred financing cost and debt discountGain on revaluation of warrant derivative

830000.0

995000.0

630000.0

Gain (Loss) on revaluation of stock awards

110000.0

44000.0

-27000.0

Gain (Loss) on revaluation of PIK Note derivatives

1470798.0

-195000.0

--

Other expense

-258252.0

-6789.0

-9986.0

Total Other Income (Expense), net

485261.0

340024.0

580021.0

Net loss

-1.0316317E7

-1.3063526E7

-9732399.0

Net Loss Per Share (Basic and Diluted)

-0.11

-0.14

-0.11

Weighted Average Shares Outstanding (Basic

9.4895194E7

9.4303264E7

8.9552788E7

and Diluted)


Shareholders' Equity

Accumulated

Accumulated

Total

Common Stock

Deficit

Deficit

Stock-

Additional

Prior to

During

holders

Paid-In

Exploration

Exploration

Equity

Shares

Amount

Capital

Stage

Stage

(Deficit)

Balance, December 31, 2011

8.9119405E7

89120.0

4.776535E7

-2.0009496E7

-1.9016551E7

8828423.0

Reclassification from warrant derivative

--

--

780000.0

--

--

780000.0

liability due to change in valuation methodology

Shares issued for directors fees and other

103580.0

103.0

150956.0

--

--

151059.0

services

Shares issued for cashless option and warrant

146459.0

146.0

-146.0

--

--

--

exercise

Shares issued for cash

1250000.0

1250.0

1623750.0

--

--

1625000.0

Stock-based compensation expense

--

--

2314154.0

--

--

2314154.0

Net Loss

--

--

--

--

-9732399.0

-9732399.0


9.0619444E7

90619.0

5.2634064E7

-2.0009496E7

-2.874895E7

3966237.0


269812.0

270.0

316205.0

--

--

316475.0

services

Shares issued for cash

3756757.0

3757.0

5556243.0

--

--

5560000.0


--

--

4707381.0

--

--

4707381.0

Net Loss

--

--

--

--

-1.3063526E7

-1.3063526E7


9.4646013E7

94646.0

6.3213893E7

-2.0009496E7

-4.1812476E7

1486567.0


408539.0

409.0

326860.0

--

--

327269.0

services

Warrant Cancellation

--

--

120000.0

--

--

120000.0


--

--

865716.0

--

--

865716.0

Net Loss

--

--

--

--

-1.0316317E7

-1.0316317E7


9.5054552E7

95055.0

6.4526469E7

-2.0009496E7

-5.2128793E7

-7516765.0


Cash Flows

For the Year Ended

December 31,

2014.0

2013.0

2012.0

Cash flows from operating activities:

Net loss

-1.0316317E7

-1.3063526E7

-9732399.0

Adjustments to reconcile net loss to net

cash used in operating activitiesDepreciation

1164366.0

317570.0

280991.0

Amortization of discount PIK Notes

218031.0

41583.0

--

Amortization of deferred financing costs

1250.0

--

--

Accrued interest on PIK Notes

1076250.0

--

--

Stock issued for director and consulting

327269.0

316475.0

151059.0

servicesStock-based compensation expense

865716.0

4707381.0

2314154.0

(Gain) on revaluation of warrant derivative

-830000.0

-995000.0

-630000.0

(Gain) Loss on revaluation of PIK note derivative

-1470798.0

195000.0

--

(Gain) Loss on revaluation of stock awards

-110000.0

-44000.0

27000.0

for non-employeesLoss of disposal of equipment

--

2482.0

9913.0

Provision for (Reversal of) doubtful accounts

--

-25106.0

13168.0

Change in operating assets and liabilities:

Accounts receivable

-107075.0

27128.0

-482.0

Deposits and prepaid expenses

149239.0

189656.0

55148.0

Accounts payable and accrued expenses

1028218.0

125256.0

759185.0

Net cash used in operating activities

-8003851.0

-8205101.0

-6752263.0

Cash flows from investing activities:

Purchases of property and equipment

-2039562.0

-64345.0

-321440.0

Construction-in-progress

--

-1982013.0

-1051537.0

Net cash used in investing activities

-2039562.0

-2046358.0

-1372977.0

Cash flows from financing activities:

Payments on notes payable

-440471.0

-479092.0

-304099.0

Payments on leases payable

--

--

-10094.0

Proceeds from PIK notes payable

1.2499998E7

1.05E7

--

Proceeds from sale of common stock

--

5560000.0

1625000.0

Net cash provided by financing activities

1.2059527E7

1.5580908E7

1310807.0

Net increase (decrease) in cash and cash

2016114.0

5329449.0

-6814433.0

equivalentsCash and cash equivalents at beginning

8685552.0

3356103.0

1.0170536E7

of yearCash and cash equivalents at end of year

1.0701666E7

8685552.0

3356103.0


Cash Flows

For the year ended

December 31,

2014.0

2013.0

2012.0

Supplemental disclosure of cash flow information:

Cash paid during the period for:

Interest

10460.0

23180.0

18206.0

Income Taxes

1431.0

3841.0

$--

Supplemental disclosure of noncash investing

and financing activities:Property and equipment financed with note

149129.0

$--

438250.0

payable

Construction-in-progress in accounts

120000.0

299563.0

105000.0

payable

Prepaid insurance financed with note payable

245390.0

233187.0

170600.0

Reclassification of Construction in Progress

3091163.0

to building and equipment

Land reclassified from assets held for

$--

$--

445180.0

sale to land and mining property


Receivables

Estimated

Useful Life *Building and Building Improvements5 40 yearsMining equipment2 7 yearsOffice and shop furniture and equipment3 7 yearsVehicles5 years


Recent Accounting Pronouncements

2014.0

2013.0

Land (a)

945180.0

945180.0

Land improvements

164758.0

164758.0

Buildings

3308465.0

631299.0

Mining equipment

1684197.0

1569635.0

Milling equipment

2620300.0

333594.0

Laboratory equipment

594451.0

65934.0

Office equipment

72174.0

60992.0

Vehicles

148673.0

140002.0

9538198.0

3911394.0

Less: Accumulated depreciation

2482324.0

1317958.0

7055874.0

2593436.0

Construction in progress (b)

0.0

3438113.0

Total

7055874.0

6031549.0


NOTE 6 #8211; FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS

Fair value measurement using inputs

Carrying amount

Level 1

Level 2

Level 3

December 31, 2014

December 31, 2013

Financial instruments:

Warrant derivative *

--

--

950000.0

Series 2023 PIK Note Derivative

478149.0

478149.0

2250000.0

Series A PIK Note Derivative

9557476.0

9557476.0

--



Balance at December 31, 2013

$-

Transfer into Level 3 (a)

2250000.0

Issuance of Series A PIK Note

9212285.0

Issuance of additional Series 2023 PIK

44138.0

NoteNet unrealized losses included in earnings

-1470798.0

(loss)

Balance at December 31, 2014

1.0035625E7



Series 2023 PIK Note derivative liability

Fair Value Measurements

Using Inputs

December 31, 2014

December 31, 2013

Market price and estimated fair value of

0.73

1.1

stockExercise price

1.36

1.4

Term (years)

8.58

9.58

Dividend yield

$--

$--

Expected volatility *

52.0%

76.9%Risk-free interest rate

2.08%

2.96%



Series A PIK Note derivative liability


Using Inputs

December 31, 2014


0.73

stockExercise price

0.92

Term (years)

3.83

Dividend yield

$--

Expected volatility


2.08%



Warrant derivative liability


Using Inputs

December 31, 2013


1.1

stockExercise price

1.93

Term (years)

3.0

Dividend yield

$--

Expected volatility *


0.78%


NOTE 7 - NOTES PAYABLE

December 31,

2014.0

2013.0

Note payable for mining equipment, payable

$--

42927.0

$5,556 monthly, including interest (a)Note payable for mining equipment, payable

14057.0

23302.0

$950 monthly, including interest (b)Note payable for mining equipment, payable

6033.0

76313.0

$6,060 monthly, including interest (c)Note payable for lab equipment, payable

18246.0

--

$9,122 monthly, including interest (d)Note payable for mining equipment, payable

55720.0

--

$1,339 monthly, including interest (e)Note payable for mine site vehicle, payable

20736.0

28276.0

$628 monthly (f)Note payable for mining equipment, payable

--

9932.0

$5,000 monthly, including interest (g)Note payable for mining equipment, payable

--

8898.0

$2,250 monthly, including interest (h)Note payable to an insurance company, payable

149036.0

--

$21,531monthly, including interest (i)Note payable to an insurance company, payable

42211.0

--

$6,094 monthly, including interest (j)Note payable to an insurance company, payable

--

132576.0

$4,447 monthly, including interest (k)Note payable to an insurance company, payable

--

29767.0

$4,447 monthly, including interest (l)

306039.0

351991.0

Less: Current Portion

-246894.0

-311165.0

Notes Payable, Long-Term Portion

59145.0

40826.0



2015.0

246894.0

2016.0

25457.0

2017.0

20615.0

2018.0

13073.0

Total Notes Payable

306039.0



Key TermsSeries 2023 Notes

Series A Notes

Inception Date08/05/2013

11/03/2014

Cash Received1.05E7

1.25E7

Principal (Initial Liability)1.05E7

1.9848486E7

Original Issue Discount (OID)N/A

7348486.0

Maturity (Term)10 years, but convertible after 1 year based

4 years, but may range between 2 years to

on the market price of the Company s stock

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)Exercise Price$1.40 at inception, adjusted downward

$0.92 at inception, adjusted downward

based on antidilution provisions/downround

based on antidilution provisions; also

protection

may be reduced by $0.10 if Extension Option

is elected (see below)Stated Interest10% per annum, due semiannually

10% per annum, due semiannually, may be

reduced to 1% if Specified Event (see below)

occursDerivative Liability$2,055,000 established at inception due

$9,212,285 established at inception due



revalued every quarter using Monte Carlo

revalued every quarter using Monte Carlo____________________________Created by Morningstar Document Research.http://documentresearch.morningstar.com/Applied Minerals, Inc.10-K03/27/2015


(in $$)

Series 2023 Notes

Series A Notes

Total

PIK Note Payable, Gross

1.157625E7

1.9848486E7

3.1424736E7

Less: Discount

-1949555.0

-1.6450742E7

-1.8400297E7

PIK Note Payable, Net

9626695.0

3397744.0

1.3024439E7

PIK Note Derivative Liability

478149.0

9557476.0

1.0035625E7



(in $$)

Series 2023 Notes

Series A Notes

Total

PIK Note Payable, Gross

1.0507333E7

--

1.0507333E7

Less: Discount

-2020750.0

--

-2020750.0

PIK Note Payable, Net

8486583.0

--

8486583.0

PIK Note Derivative Liability

2250000.0

--

2250000.0


Outstanding Stock Warrants

Warrants Outstanding and Exercisable

Exercise Price

Number Outstanding

Weighted Average Remaining Contractual

Weighted Average Exercise Price

Life (years)$ 0.75

139340.0

0.75

0.75

$ 0.78

213402.0

1.09

0.78

$ 0.80

124481.0

1.0

0.8

$ 1.00

180000.0

0.81

1.0

$ 1.15

461340.0

6.33

1.15

$ 2.00

54367.0

1.59

2.0

1172930.0

3.08

1.01


Outstanding Stock Options

2014.0

2013.0

Dividend Yield

0%

0%

Expected Life (years)

5.5

4.4

Expected Volatility

56.1%

63.5%

Risk Free Interest Rate

1.79%

1.48%



December 31, 2014

December 31, 2013

Shares

Weighted

Shares

Weighted

Average

Average

Exercise Price

Exercise Price

Outstanding at beginning of period

1.5878116E7

1.03

1.5455471E7

1.04

Issued

1175000.0

0.84

760867.0

1.19

Exercised

--

--

--

--

Forfeited

--

--

-338222.0

1.73

Outstanding at end of period

1.7053116E7

1.02

1.5878116E7

1.03



Vesting InformationShares

Frequency

Begin Date

End Date200000.0

Quarterly

03/31/2014

12/31/2014375000.0

Immediately

06/10/2014

06/10/2014600000.0

Monthly

06/10/2014

06/09/2017



Options Outstanding

Options Exercisable

Number

Weighted

Weighted

Number

Weighted

Outstanding

Average

Average

Exercisable

Average

Remaining

Exercise

Exercise

Contractual Life (years)

Price

Price

7358277.0

3.94

0.7

7358277.0

0.7

3405134.0

6.69

0.83

3405134.0

0.83

975000.0

9.45

0.84

491667.0

0.84

60000.0

1.5

1.0

60000.0

1.0

300000.0

8.64

1.1

100000.0

1.1

300000.0

8.48

1.15

133333.0

1.15

100000.0

3.09

1.24

100000.0

1.24

115000.0

6.24

1.35

115000.0

1.35

125000.0

3.09

1.45

125000.0

1.45

330000.0

6.95

1.55

296667.0

1.55

7645.0

3.09

1.58

7645.0

1.58

3077060.0

7.89

1.66

3077060.0

1.66

900000.0

6.64

1.9

900000.0

1.9

1.7053116E7

5.87

1.02

1.6169783E7

1.02


NOTE 11 - PER SHARE DATA

Net Loss

Shares

Per-Share

(Numerator)

(Denominator)

Amount

For the year ended December 31, 2014:

Basic and Diluted EPS

Net loss

-1.0316317E7

9.4895194E7

-0.11



Net loss

-1.3063526E7

9.4303264E7

-0.14



Net loss

-9732399.0

8.9552788E7

-0.11



December 31, 2014

December 31, 2013

Deferred tax assets:

Net operating loss carryforward

2.3246809E7

1.8454164E7

Stock-based compensation

4121311.0

3685646.0

Stock Award Payable

--

40792.0

Total deferred tax assets

2.736812E7

2.2180602E7

Deferred tax liabilities:

Property and equipment

-673241.0

-421025.0

Less: valuation allowance

-2.6694879E7

-2.1759577E7

$--

$--



December 31, 2014

December 31, 2013

December 31, 2012

Federal statutory rate

-3610711.0

35.0%

-4572234.0

35.0%

-3406340.0

35.0%State income taxes Idaho

-11016.0

0.1%

-14264.0

0.1%

-37982.0

0.4%State income taxes - Utah

-239093.0

2.3%

-199166.0

1.5%

-227169.0

2.3%State and local income taxes - NY

-46372.0

0.4%

-58721.0

0.5%

--

--

Change in valuation allowance

4935302.0

-47.8%)

5034877.0

(39.0%)

3903777.0

(40.1%)Net nontaxable gain on derivative

-843861.0

8.2%

-290623.0

2.2%

-232286.0

2.4%Miscellaneous

-184249.0

1.8%

100131.0

(0.3%)

0.0

--

$--

0.0%

$--

0.0%

$--

0.0%



Investor

Investment

OID/Discount

Principal

Shares Issuable

@0.92, excluding

interest

IBS Turnaround Fund (A Limited Partnership)

531960.0

0.66

806000.0

876087.0

IBS Turnaround Fund QP (A Limited Partnership)

1118040.0

0.66

1694000.0

1841304.0

IBS Opportunity Fund, Ltd.

350000.0

0.66

530303.0

576416.0

2000000.0

3030303.0

3293807.0


Note 15A - FINANCIAL INFORMATION BY QUARTER (UNAUDITED)

2014 For Quarter Ended

December 31

September 30

June 30

March 31

Revenue

119533.0

55681.0

47993.0

11014.0

Operating loss

-3147929.0

-2389291.0

-2712065.0

-2552293.0

Net loss

-4346638.0

-2576750.0

-3035704.0

-357225.0

Loss Per Share (Basic and Diluted)

-0.05

-0.03

-0.03

0.0)


Note 15A - FINANCIAL INFORMATION BY QUARTER (UNAUDITED)

2013 For Quarter Ended

December 31

September 30

June 30

March 31

Revenue

10088.0

6773.0

12878.0

25086.0

Operating loss

-3795077.0

-3250990.0

-2774969.0

-3582514.0

Net loss

-3510651.0

-3869099.0

-2604885.0

-3078891.0

Loss Per Share (Basic and Diluted)

-0.04

-0.04

-0.03

-0.03


Identification of Directors and Officers

Name and Position with The Company

Age

Director 1 /Officer Since

Principal OccupationJohn F. Levy

59.0

Non-executive Chairman since 2009, Director

CEO of Board Advisory

since 2008David A. Taft

58.0

Director since 2008

President, IBS Capital LLCMario Concha

74.0

Director since 2013

President, Mario Concha & Associates,

LLCRobert T. Betz

73.0

Director since 2014

Owner, Personal Care IngredientsAli Zamani

35.0

Director since 2014

Portfolio Manager, Gefinor CapitalAndre M. Zeitoun

42.0

Chief Executive Officer, President and

President, Chief Executive Officer and

Director since 2009

Director of CompanyNat Krishnamurti

43.0

Officer since 2012

Chief Financial OfficerWilliam Gleeson

72.0

Officer since 2011

General Counsel


Committees of the Board

Audit CommitteeNominating CommitteeCompensation CommitteeJohn LevyXXXMario ConchaXXXRobert Betz

XXAli ZamaniX


Summary Compensation

Option

All Other

Name and

Salary

Bonus

Awards

Comp.

Total

Principal PositionYear

0.0

0.0

0.0

0.0

0.0

Andre M. Zeitoun,2014.0

600000.0

400000.0

--

--

1000000.0

CEO, Director (2)2013.0

600000.0

400000.0

--

--

1000000.0

2012.0

600000.0

850000.0

2408539.0

--

3858539.0

Nat Krishnamurti,2014.0

225000.0

--

31055.0

5000.0

261055.0

CFO (3)2013.0

225000.0

--

49686.0

5000.0

279686.0

2012.0

105000.0

--

400200.0

2917.0

508117.0

William Gleeson,2014.0

300000.0

--

270486.0

--

545486.0

General Counsel2013.0

250000.0

--

--

--

250000.0

2012.0

200000.0

--

100065.0

--

300065.0


Stock Option Grants

All other option awards: Number of securities

Exercise or base price of option

Grant date fair value of stock and option

underlying

Name

Grant date

options

awards

awards

(#)

($/Share)

0.0Nat Krishnamurti, CFO (1)

06-10-2014

75000.0

0.84

31055.0

William Gleeson (1)

06-10-2014

600000.0

0.84

270486.0


Outstanding Equity Awards

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR

ENDOPTION AWARDS

Name

Grant Date

Number of Securities Underlying Unexercised

Number of Securities Underlying Unexercised

Equity Incentive Plan Awards Number of

Option Exercise Price

Option Expiration Date

Options: Exercisable

Options: Unexercisable

Securities Underlying Unexercised Unearned

Options

Andre Zeitoun

01-01-09

3949966.0

--

--

0.7

01-01-19

02-08-11

1742792.0

--

--

0.83

01-01-22

11-20-12

1742792.0

--

--

1.66

01-01-23

Nat Krishnamurti

05-29-12

275001.0

24999.0

--

1.55

05-01-22

05-29-13

65000.0

--

--

1.35

05-29-23

06-10-14

75000.0

--

--

0.84

06-10-24

William Gleeson

08-18-11

900000.0

--

--

1.9

08-18-21

11-20-12

72406.0

--

--

1.66

11-20-22

06-10-14

116669.0

483331.0

--

0.84

06-10-24


Grants of Plan-Based Awards

Name

Fees Earned or

Common Stock Awards

Options

Total ($)

Paid in Cash

Awards (1)

John Levy (1)

70000.0

$--

21288.0

91288.0

David Taft (2)

71288.0

$--

$--

71288.0

Mario Concha (1)

58750.0

$--

21288.0

80038.0

Robert Betz (1) (3)

38733.0

16600.0

21288.0

76621.0

Ali Zamani (1) (4)

$--

45278.0

21288.0

66566.0

Andre Zeitoun

$--

$--

$--

$--


Beneficial Ownership

200,000,000 authorized shares of Common

Stock;


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.


Ownership Tables

Number of Shares of

Percentage of Common

Common Stock

Stock Beneficially

Name and Address (1)

Beneficially Owned (2)

Owned

Andre Zeitoun (3) (4) (10)

8762899.0

8.5%John Levy (3) (5)

630957.0

*

David Taft (3) (8)

2.5624957E7

26.9%Mario Concha (3) (7)

155275.0

*

Robert Betz (3) (6)

142036.0

*

Ali Zamani (3) (9)

183944.0

*

Nat Krishnamurti (4) (11)

440000.0

*

William Gleeson (4) (12)

1155743.0

*

All Officers and Directors as a Group

3.7095811E7

35.3%IBS Capital, LLC (8)

2.5624957E7

26.9%Samlyn Capital, LLC (13)

2.0869565E7

21.9%Berylson Capital Partners, LLC (14)

5620170.0

5.9%James Berylson (14)

6893170.0

7.2%


Director Independence

December 31, 2014

December 31, 2013

Audit Fees

117500.0

117500.0

S-1 filing review

4000.0

8000.0

Tax Fees (1)

7500.0

7500.0

All Other Fees

--

--

Total

129000.0

133000.0


SCHEDULE II#8212;VALUATION AND QUALIFYING ACCOUNTS

Balance at

Additions Charged

Net

Balance at

Beginning of

to Expenses/

(Deductions)

End of Year

Year

Other Accounts

RecoveriesAllowance for doubtful accounts

2014.0

$--

$--

$--

$--

2013.0

25106.0

$--

25106.0

$--

2012.0

11938.0

13168.0

$--

25106.0

Valuation allowance for deferred tax assets

2014.0

2.1759577E7

4935302.0

$--

2.6694879E7

2013.0

1.67247E7

5034877.0

$--

2.1759577E7

2012.0

1.2820923E7

3903777.0

$--

1.67247E7



Exhibit

Number3.1Articles of Incorporation-1.03.2Bylaws, as amended-2.010.1Form of Investment Agreement used in connection-3.0

with January, 2013 capital raise10.2Form of Investment Agreement used in connection-4.0

with August, 2013 capital raise10.3Form of 10% PIK Election Convertible Note-5.0

due 2023 used in connection with August,

2013 capital raise10.4Form of Investment Agreement used in connection-6.0

with November, 2014 capital raise10.5Form of 10% PIK Election Convertible Note-7.0

due 2018 used in connection with November,

2014 capital raise10.6Form of Warrant Cancellation Agreement-8.0

used in connection with November, 2014

capital raise10.72012 Long Term Option Plan-9.010.8Form of Stock Option Agreement-10.010.9Short Term Incentive Plan-11.010.1Form of Stock Grant*10.11Terms of Private Placement of Securities-12.010.12Directors Compensation-13.023.1Consent of EisnerAmper LLP, Independent*

Registered Public Accounting Firm31.1Certification pursuant to Rule 13a-14*

of the Securities Exchange Act, as adopted

pursuant to Section 302 of the Sarbanes-Oxley

Act of 2002, of the Principal Executive

Officer31.2Certification pursuant to Rule 13a-14*

of the Securities Exchange Act, as adopted

pursuant to Section 302 of the Sarbanes-Oxley

Act of 2002, of the Principal Financial

Officer32.1Certification pursuant to 18 U.S.C. Section*

1350, as adopted pursuant to Section 906

of the Sarbanes-Oxley Act of 2002, of the

Principal Executive Officer32.2Certification pursuant to 18 U.S.C. Section*

1350, as adopted pursuant to Section 906

of the Sarbanes-Oxley Act of 2002, of the

Principal Financial Officer95.0Mine Safety Disclosure*101.INSXBRL Instance**101.SCHXBRL Taxonomy Extension Schema**101.CALXBRL Taxonomy Extension Calculation**101.DEFXBRL Taxonomy Extension Definition**101.LABXBRL Taxonomy Extension Labels**101.PREXBRL Taxonomy Extension Presentation**



-1.0Incorporated by reference to exhibit 3(i)(a)

included in the Registrant s Current Report

on Form 8-K, filed on November 26, 2012-2.0Incorporated by reference to exhibit 3(i)(a)


on Form 8-K, filed on November 26, 2012-3.0Incorporated by reference to exhibit 99.1


on Form 8-K, filed on January 23, 2013-4.0Incorporated by reference to exhibit 99.1


on Form 8-K, filed on August 5, 2013-5.0Incorporated by reference to exhibit 99.2


on Form 8-K, filed on August 5, 2013-6.0Incorporated by reference to exhibit 99.1






on Form 8-K, filed on November 5, 2014-9.0Incorporated by reference to exhibits

99.1 included in the Registrant s Current

Report on Form 8-K, filed on November 26,

2012.0-10.0Incorporated by reference to exhibits



2012.0-11.0Incorporated by reference to exhibits



2012.0-12.0Incorporated by reference to Items 1.01


on Form 8-K, filed on January 23, 2013, August

5, 2013, and November 5, 2014-13.0Incorporated by reference to exhibit 10.13

included in Registrant s Form S-1 filed

on February 17, 2015


SIGNATURES

APPLIED MINERALS, INC.

By:/s/ ANDRE ZEITOUN

Andre Zeitoun

Chief Executive Officer

By:/s/ NAT KRISHNAMURTI

Nat Krishnamurti

Chief Financial Officer


SIGNATURES

Signature

Title

Date

/s/ JOHN F. LEVY

Director

March 27, 2015John F. Levy

/s/ ANDRE ZEITOUN

Director

March 27, 2015Andre Zeitoun

/s/ ROBERT BETZ

Director

March 27, 2015Robert Betz

/s/ MARIO CONCHA

Director

March 27, 2015Mario Concha

/s/ DAVID TAFT

Director

March 27, 2015David Taft

/s/ ALI ZAMANI

Director

March 27, 2015Ali Zamani


Incentives

APPLIED MINERALS INC.

By:

Its:


RESTRICTED STOCK AWARD AGREEMENT

[Insert Name]

Signature:

Printed Name:


AS ADOPTED PURSUANT TO

Date: March 27, 2015By:/s/ ANDRE ZEITOUN

Andre Zeitoun



NO TITLE

Date: March 27, 2015By:/s/ NAT KRISHNAMURTI

Nat Krishnamurti



NO TITLE

Date: March 27, 2015By:/s/ ANDRE ZEITOUN

Andre Zeitoun



NO TITLE

Date: March 27, 2015By:/s/ NAT KRISHNAMURTI

Nat Krishnamurti


____________________________Created by Morningstar Document Research.http://documentresearch.morningstar.com/

applied minerals inc form 10-k

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