Company: BCHT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001477932-25-003808
Chunk: 103

Company: Birchtech Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 103
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2025, and an annual market interest rate of 14.55%.The discounted cash flow model assumptions used at December 31, 2024 to calculate the Profit Share liability included: the projected full repayment of the profit share liability of $7,900,000 upon the receipt of Net Litigation Proceeds in 2025, and an annual market interest rate of 14.55%. The profit share liability will be marked to market every quarter utilizing management’s estimates.

 17Table of Contents

The following are the changes in the profit share liability (the only Level 3 financial instrument) during the three months ended March 31, 2025 and the year ended December 31, 2024:  Profit Share as of January 1, 2024 $14,847,937 Modification  (11,833,179) Loss on change in fair value of profit share  3,839,100 Profit Share as of December 31, 2024 $6,853,858      Profit Share as of January 1, 2025 $6,853,858 Loss on change in fair value of profit share  353,351 Profit Share as of March 31, 2025 $7,207,209  Related Party Transactions Kaye Cooper Kay & Rosenberg, LLP provides certain legal services to the Company and was paid $112,500 and $100,694 for the three months ended March 31, 2025 and 2024, respectively, for legal services rendered and disbursement incurred. David M. Kaye, a Director of the Company, is a partner of the law firm.  At March 31, 2025 and December 31, 2024, $37,500 and $37,500, respectively, was owed to the firm for services rendered. On January 31, 2023, the Company entered into a License and Supply Agreement with Dakin Holdings Ltd., a company incorporated in Barbados (“Dakin”), effective as of January 1, 2023 (the “Dakin Agreement”), pursuant to which Dakin has granted to the Company (i) a limited license to manufacture and produce for Dakin products comprising certain intellectual property owned by Dakin (the “Dakin IP”), and (ii) an exclusive license to commercialize the Dakin IP in the United States. In addition, the Company shall pay Dakin a license