Company: BCHT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001477932-25-002237
Chunk: 81

Company: Birchtech Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 81
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, net $2,350,688  $1,595,958 

 F-16Table of Contents

The Company uses the straight-line method of depreciation over estimated useful lives of 2 to 5 years. During the year ended December 31, 2024 and 2023 depreciation expense was $11,702 and $12,927, respectively. At December 31, 2024, lab equipment included $725,626 of lab equipment not yet placed in service. At December 31, 2024 and 2023, the Company 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