Company: BCHT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001477932-25-002237
Chunk: 944

Company: Birchtech Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 944
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 and $32,220, respectively. Unsecured Note Payable The Company has the following unsecured note payable - related party outstanding as of December 31, 2024 and December 31, 2023:    December 31,  December 31,   2024  2023 Unsecured note payable $13,154,931  $13,154,931          Repayments  (12,314,895 )  - Less fair value adjustment on extinguishment, net of amortized discount of $1,965,984 and $1,547,536, respectively  (960,000 )  (2,175,208 )Plus fair value adjustment  119,964   -          Total unsecured note payable  -   10,979,723          Less current portion  -   -          Unsecured note payable, net of current portion $-  $10,979,723  On November 29, 2016, pursuant to a restated financing agreement entered with AC Midwest on November 1, 2016, the Company closed on an unsecured note with AC Midwest (the “AC Midwest Subordinated Note”), which was to mature on December 15, 2020. On February 25, 2019, the Company, entered into an Unsecured Note Financing Agreement (the “Unsecured Note Financing Agreement”) with AC Midwest, pursuant to which AC Midwest issued an unsecured note in the principal amount of $13,154,931 (the “AC Midwest Unsecured Note”), which represented the outstanding principal and accrued and unpaid interest at closing. The AC Midwest Unsecured Note, which replaced the AC Midwest Subordinated Note, was scheduled to mature on August 25, 2022 and bear a zero cash interest rate.  The Company determined that the rate of interest on the AC Midwest Subordinated Note was a below market rate of interest and determined that a discount of $6,916,687 should be recorded. This discount was based on an applicable market rate for unsecured debt for the Company of 21% and is being amortized as interest expense over the life of the loan. On August 30, 2022, AC Midwest agreed to an extension of the maturity date of the AC Midwest Unsecured Note (and AC Midwest Secured Note) from August 25, 2022 to September