Company: BCHT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001477932-25-003808
Chunk: 11

Company: Birchtech Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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. The following table presents sales by operating segment disaggregated based on the type of revenue for the three months ended March 31, 2025 and 2024. All sales were in the United States.    March 31, 2025  March 31, 2024 Product revenue $2,676,984  $3,084,088 License revenue  525,000   140,625 Demonstrations & Consulting revenue  9,000   6,000 Equipment sales and rental revenue  10,027   11,053   $3,221,011  $3,241,766  Accounts receivable and allowance for credit losses Accounts receivable are presented net of an allowance for credit losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance, a customer’s payment history, its current credit-worthiness and current economic trends. Accounts are written off after exhaustive efforts at collection.  Management believed that the accounts receivable were fully collectable and no allowance for credit losses was deemed to be required on its accounts receivable at March 31, 2025. The Company historically has not experienced significant uncollectible accounts receivable. As of March 31, 2025 and December 31, 2024, the Company’s allowance for credit losses was $0, and the Company recorded $0 of bad debt expense for both the three months ended March 31, 2025 and 2024. Research and Development Costs Research and development costs are expensed as incurred. Research and development costs consist of costs incurred to discover, research and develop products, and include personnel expenses, facility-related and depreciation expenses, and external costs of outside suppliers. Income Taxes The Company follows the asset and liability method of accounting for income taxes under FASB ASC 740, Income Taxes. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change