Company Summary: Birchtech Corp.

Business Focus

• Provides specialty activated carbon technologies for air and water purification.
• Develops patented and proprietary mercury emissions capture solutions for coal-fired utility power plants.
• Is actively developing disruptive water purification technologies targeted at PFAS (per- and polyfluoroalkyl substances, “forever chemicals”).
• Focuses on environmentally friendly solutions that enable recycling of byproducts and have lower operational impact.

Core Technologies & Products

Mercury Emissions Capture

• Uses SEA® (Sorbent Enhancement Additive) technology — a two-part process involving front-end additives applied to coal and back-end sorbent injection.
• Designed for total mercury control, meeting or exceeding MATS standards (Mercury and Air Toxics Standards).
• Technologies are tunable for various fuel types and system configurations.
• Advantages: Lower cost, less disruption to plant operations, preserves fly ash for beneficial reuse, and improves mercury removal efficiency.
• Customization: Systems and materials tailored for each customer’s specific coal type and boiler configuration.
• Market: North America is the largest market, with about 210 coal-fired EGUs remaining in the U.S. (down from around 1,250 affected by the MATS rule in 2012).

Water Treatment

• Introduced in April 2024 with new division focusing on potable water (drinking water).
• Developing new sorbent technologies that use less activated carbon and are more environmentally friendly.
• Technologies focus on removing PFAS and other contaminants, with competitive advantages like renewable raw materials, low arsenic content, and lower pressure drops.
• Operating two new laboratories (located in Pennsylvania and North Dakota) to support R&D, carbon activation, reactivation, contaminant analysis, and product optimization.
• Initial marketing efforts target municipalities with limited resources and industrial wastewater remediation sectors.

Revenue & Financials (2024 & 2023)

• Total Revenue:
  • 2024: approximately $17.4 million (restated)
  • 2023: approximately $17.6 million (restated)
• Main Revenue Sources:
  • Product sales: ~$14.5 million in 2024 (down from ~$17.1 million in 2023)
  • Licensing revenue: ~$2.8 million in 2024 (up significantly from ~$388,000 in 2023)
  • Other revenue (demonstrations, equipment): minimal (~$116,000 in 2024)
• Net Income / Loss:
  • 2024: Net loss of approximately $10.8 million
  • 2023: Net income of approximately $5.7 million (restated)
• Gross Profit:
  • 2024: ~$7.1 million
  • 2023: ~$5.45 million
• Operating Expenses:
  • Around $14.2 million annually, stable year-over-year
• Other Income:
  • 2023 included $27.6 million from legal settlements (patent litigation)
• Interest Expense:
  • Reduced significantly in 2024 (~$267,000) from ~$1.36 million in 2023
• Loss on fair value change of profit share:
  • ~$4 million in 2024
  • ~$11.2 million in 2023

Operations & Employees

• Number of Employees: 15 total
  • 12 full-time employees
  • 3 part-time employees
• Locations:
  • Corporate headquarter: Corsicana, Texas (since 2015)
  • Laboratories:
    • Grand Forks, North Dakota (leased since August 2024)
    • State College, Pennsylvania (leased since November 2024)
• Business Strategy:
  • Focused on North American market initially.
  • Emphasizes demonstrations and long-term contracts.
  • Engaged in patent enforcement through litigation to protect SEA® technology.
  • Developing licensing models globally, with potential future expansion into Europe and Asia.

Customers

• Approximate number of beneficial owners and holders:
  • 385 stockholders of record (as of March 2025)
  • Estimated 2,500 beneficial owners
• Customer concentration details:
  • 3 customers accounted for significant share of revenue in 2024 (percentages unspecified)
  • 2 key customers for accounts receivable (percentages unspecified)
  • 2 suppliers supplied significant portion of raw materials (percentages unspecified)

Key Intellectual Property & Patents

• Owns a portfolio of 34 patents globally (26 U.S., 8 foreign patents)
• Patent expiration: between August 2025 to September 2034
• Licenses patented SEA® technology, with ongoing patent applications related to water treatment.
• Patent enforcement initiated against multiple infringers in the U.S., with legal verdicts and ongoing litigation.

Recent Legal & Business Highlights

• Awarded $57.1 million patent infringement verdict in March 2024.
• Entered into license agreements related to patent rights, including non-exclusive licenses.
• Continues patent litigation in various jurisdictions, seeking damages and injunctions.
• Operational shift includes entry into water purification market and laboratory establishment.

Summary

Birchtech Corp. is a specialized environmental technology company focusing on mercury emission control for coal-fired power plants using innovative SEA® sorbent technology, which is protected by patents. The company also develops water purification solutions for PFAS removal, supported by new laboratories and R&D efforts. It has roughly $17.4 million in annual revenue, with a net loss of approximately $10.8 million in 2024. The company has about 15 employees, operates mainly in North America, and has a beneficial ownership base of approximately 2,500 beneficial owners. It actively engages in patent enforcement and has ongoing legal litigation related to its innovations.