American Resources Corporation (NASDAQ: AREC) disclosed in a regulatory filing that it has dismissed its independent auditor and that the outgoing firm has withdrawn its opinion on the company's most recent annual financial statements. The filing, submitted on July 24, 2026, details a sequence of events that will require the company's 2025 results to be re-audited by a new accounting firm.
Auditor Dismissal
On June 30, 2026, the Audit Committee of American Resources' Board of Directors approved the dismissal of GreenGrowth CPA's as the company's independent registered public accounting firm. The company stated that GreenGrowth's report on the consolidated financial statements for the fiscal year ended December 31, 2025 did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainty, audit scope, or accounting principles.
The filing notes that there were no disagreements between the company and GreenGrowth on matters of accounting principles, financial statement disclosure, or auditing scope during the relevant periods. However, the company acknowledged that material weaknesses in its internal control over financial reporting existed, as previously disclosed in its annual report. These material weaknesses constitute reportable events under SEC regulations.
Withdrawal of 2025 Audit Opinion
A critical development occurred on July 3, 2026, when the Audit Committee was notified that GreenGrowth was withdrawing its opinion on the company's December 31, 2025 financial statements. The filing does not elaborate on the specific reasons behind GreenGrowth's decision to withdraw its opinion, and the company provided no additional detail about the nature or scope of the issues that prompted the withdrawal.
The withdrawal of an audit opinion is a significant event for any public company. It means that investors can no longer rely on the previously issued audited financial statements for that fiscal year, and the company must engage a new auditor to perform a fresh examination of those results.
New Auditor Appointed
On July 11, 2026, the Audit Committee approved the appointment of UHY LLP as the company's new independent public accounting firm, effective immediately. The company confirmed that it had not previously consulted UHY regarding the application of accounting principles to any specific transaction or the type of audit opinion that might be rendered. The engagement with UHY includes providing an audit and issuing a new opinion on the company's December 31, 2025 Form 10-K and financial statements.
The company did not indicate a timeline for when the re-audit would be completed or when restated financial statements might be filed. Until UHY completes its work and a new audit opinion is issued, the company's 2025 financial results remain in an unaudited and unverified state from the perspective of an independent accounting firm.