Company: BCHT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001477932-25-003808
Chunk: 60

Company: Birchtech Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 60
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 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 as the Company had not incurred any research related costs during the first three months of 2024. The Company began incurring research and development costs when the lab equipment at the Company’s labs was placed into service.

Operating Loss

Our operating loss was approximately $1,343,000 and $2,398,000 for the three months ended March 31, 2025 and 2024, respectively. Such decrease in operating loss was primarily due to our increased gross profit in 2025 compared to 2024 coupled with a decrease in total operating expenses during the current period.  

Other Income (Expense)

Interest expense related to the financing of capital was approximately $54 and $246,000 for the three months ended March 31, 2025 and 2024, respectively. The approximate breakdown of interest expense for the three months ended March 31, 2025 and 2024 is as follows:

  Three Months Ended   March 31,   2025  2024        Interest expense on notes payable $-  $4,000 Amortization of discount of notes payable  -   242,000            $-  $246,000 

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Loss on change in fair value of profit share liability were approximately $353,000 and $265,000 for the three months ended March 31, 2025 and 2024, respectively.  The change is primarily attributed to the modification of the terms of the profit share liability (see Note 7 to the consolidated financial statements). 

Net Loss

For