British Soldier Lichen

Lichens are an interesting creature - part fungus, part algae living together symbiotically. This one was given the common name of British Soldiers because of its little red hats. It's the algae that provides the red color. Only the fungal part of the relationship can spore and when it does so, the result is only a fungi, until and unless the algae finds and joins the new fungal growths to form a lichen.