Company: BCHT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001477932-25-002237
Chunk: 1396

Company: Birchtech Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7A
Chunk 1396
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  $795,164 

Note 6 - Property and Equipment, Net Property and equipment at December 31, 2024 and December 31, 2023 are as follows:    December 31,  December 31,   2024  2023        Equipment & installation $1,096,979  $1,095,139 Leasehold improvements  117,512   101,821 Trucking equipment  911,377   845,102 Lab equipment  725,626   - Office equipment, computer equipment and software  1,874   1,874 Total equipment   2,853,368   2,043,936          Less: accumulated depreciation  (2,047,680 )  (2,035,978 )Construction in process  1,545,000   1,588,000 Property and equipment, net $2,350,688  $1,595,958 

 F-16Table of Contents

The Company uses the straight-line method of depreciation over estimated useful lives of 2 to 5 years. During the year ended December 31, 2024 and 2023 depreciation expense was $11,702 and $12,927, respectively. At December 31, 2024, lab equipment included $725,626 of lab equipment not yet placed in service. At December 31, 2024 and 2023, the Company concluded that Company’s plant construction in process asset had become impaired based on the existing and anticipated future economic outlook. As a result, the Company impaired the asset to reduce the carrying value to fair value. Estimated fair value of the impaired long-lived asset is based on the estimated cost to replace the asset. As a result of the uncertain cash flows related to the Company’s capitalized construction costs, the Company has recorded an impairment charge of $43,000 (2023 - $219,707).  

Note 7 - Intellectual Property License and patent costs capitalized as of December 31, 2024 and December 31, 2023 are as follows:    December 31,  December 31,   2024  2023 Licenses and patents $3,068,995  $3,068,995 Less: Accumulated amortization  (1,569,532 )