Company: BCHT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001477932-25-005905
Chunk: 133

Company: Birchtech Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 133
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Cost of sales were approximately $2,286,000 and $2,301,000 for the three months ended June 30, 2025 and 2024, respectively, and approximately $4,272,000 and $4,414,000 for the six months ended June 30, 2025 and 2024, respectively. This decrease in cost of sales of approximately $142,000 for the six months ended June 30, 2025 was primarily attributable to decreased product sales in the first six months of 2025 compared to the prior year period, together with a change in the mix of products sold in the first six months of 2025 compared to the first six months of 2024. 

Gross Profit

Gross profit was approximately $968,000 and $1,061,000 for the three months ended June 30, 2025 and 2024, respectively, and approximately $2,202,000 and $2,189,000 for the six months ended June 30, 2025 and 2024.  The decrease in gross profit for the three months ended 2025 was primarily due to a decrease in sales.  The increase in gross profit for the six months ended June 30, 2025 was primarily due to higher licensing revenues in 2025 compared to 2024, which typically carry higher margins than product sales, thus contributing to the overall improvement in gross profit.  

Operating Expenses

Operating expenses consisted of selling, general and administrative expenses (“SG&A”) and research and development expenses (“R&D”) in 2025 and SG&A and in 2024. Operating expenses decreased significantly in 2025 compared to 2024, despite incurring costs related to the development of the Company’s water treatment business. SG&A expenses were approximately $1,698,000 and $4,634,000 for the three months ended June 30, 2025 and 2024, respectively, and approximately $3,869,000 and $8,161,000 for the six months ended June 30, 2025 and 2024, respectively.  Total SG&A expenses decreased in the first six months of 2025 compared to the prior year period, as a result of variances in individual categories. Decreases in salaries and wages, and professional fees were partially offset by increases in consulting fees.  The decrease in salaries and wages was primarily due to the payment of bonus compensation in the first