Company: BCHT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001477932-25-003808
Chunk: 125

Company: Birchtech Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 125
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 sales were approximately $1,987,000 and $2,113,000 for the three months ended March 31, 2025 and 2024, respectively. The decrease in cost of sales of approximately $127,000 was primarily attributable to decreased product sales in the first three months of 2025 compared to the prior year period, together with a change in the mix of products sold in the first quarter of 2025 compared to the first quarter of 2024.  

Gross Profit

Gross profit was approximately $1,234,000 and $1,128,000 for the three months ended March 31, 2025 and 2024, respectively.  This increase in gross profit of approximately $106,000 was primarily due to higher licensing revenues in 2025 compared to 2024, which typically carry higher margins than product sales, thus contributing to the overall improvement in gross profit.  

Operating Expenses

Operating expenses consisted of selling, general and administrative expenses (“SG&A”) and research and development expenses (“R&D”) in 2025 and SG&A and in 2024.  SG&A expenses were approximately $2,171,000 and $3,527,000 for the three months ended March 31, 2025 and 2024, respectively.  Total SG&A expenses decreased in the first three months of 2025 compared to the prior year period, as a result of variances in individual categories. Decreases in salaries and wages, and professional fees were partially offset by increases in consulting fees.  The decrease in salaries and wages was primarily due to the payment of bonus compensation in the first quarter of 2024 for which there were no comparable expenses in the first quarter of 2025, along with greater stock-based compensation in the first quarter of 2024 compared to first quarter of 2025. The decrease in professional fees was primarily due to lower legal fees in the first quarter of 2025 in connection with the Company’s patent litigation compared to the prior year period which had greater legal fees due to trial preparation and the jury trial in the U.S. District Court for the District of Delaware.

Total R&D expenses were approximately $407,000 and $0 for the three months ended March 31, 2025 and 2024, respectively. R&D expenses relate to research conducted to develop water treatment products utilizing new sorbent technologies, and increased in the first three months of 2025 compared to the prior year period