Company: BCHT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001477932-25-002237
Chunk: 303

Company: Birchtech Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 303
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 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 )  (1,364,932 )Intellectual property, net $1,499,463  $1,704,063  Amortization expense for the year ended December 31, 2024 and 2023 was $204,600 and $205,534, respectively. Estimated annual amortization for each of the next 5 years and thereafter is as follows:  Annual amortization for the years ended:    December 31, 2025 $204,600 December 31, 2026  204,600 December 31, 2027  204,600 December 31, 2028  204,600 December 31, 2029  204,600 Thereafter  476,463 Total $1,499,463 

Note 8 - Related Party Secured Note Payable On November 29, 2016, pursuant to a restated financing agreement entered with AC Midwest Energy, LLC (“AC Midwest”) on November 1, 2016, the Company closed on a secured note with AC Midwest (the “AC Midwest Secured Note”), which was to mature on December 15, 2018. AC Midwest is wholly-owned by a stockholder of the Company. The AC Midwest Secured Note is guaranteed by MES, is non-convertible and bears interest at a rate of 15.0% per annum, payable quarterly in arrears on or before the last day of each fiscal quarter. On February 25