Company: BCHT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001477932-25-005905
Chunk: 81

Company: Birchtech Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 81
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 December 31, 2024. The increase is primarily attributable to an increase in accounts payable and accrued liabilities and an increase in the fair value of the non-recourse profit share liability.

Operating Activities

Net cash used in operating activities consists of net loss, adjusted by certain non-cash items, and changes in operating assets and liabilities. 

Net cash used by operating activities was approximately $1,986,000 for the six months ended June 30, 2025 compared to net cash used by operating activities of approximately $3,123,000 for the six months ended June 30, 2024.  The decrease in net cash provided by operating activities was primarily due to the following: (i) a net loss of $3.2 million for the six months ended June 30, 2025 compared to net loss of $9.0 million for the six months ended June 30, 2024; and (ii) certain other changes in operating assets and liabilities including accounts receivable, inventory, prepaid expenses and other assets, accrued salaries, and accounts payable and accrued liabilities.

Investing Activities

The Company had net cash used in investing activities of approximately $16,000 for the six months ended June 30, 2025 for the purchase of lab equipment compared to net cash used in investing activities of approximately $66,000 for the six months ended June 30, 2024. During the six months ended June 30, 2024, we paid $66,274 to purchase a truck.

Financing Activities

Net cash used in financing activities was approximately $0 for the six months ended June 30, 2025 compared to approximately $9,312,000 used in financing activities for the six months ended June 30, 2024.   During the six months ended June 30, 2024, we repaid the remaining principal of approximately $272,000 on the AC Midwest secured note and approximately $9,040,000 of the principal remaining on the AC Midwest unsecured note. 

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Critical Accounting Policies and Estimates

Our critical accounting policies and estimated are discussed in our Annual Report on Form 10-K for the year ended December 31, 2024, and there have been no material changes to such policies or estimates during the six months ended June 30, 2025. 

Non-GAAP Financial Measures

Adjusted EBITDA

To supplement our consolidated financial statements presented in accordance with GAAP and to provide investors with