Company: BCHT
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001477932-25-005905
Chunk: 98

Company: Birchtech Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 98
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 over time. When a license arrangement contains payment terms beyond one year, a significant financing component may exist. The significant financing component is calculated as the difference between the stated value and present value of the license fees and is recognized as interest income over the payment period. 

 11Table of Content

 Variable consideration is recorded as revenue only to the extent that a significant reversal of cumulative revenue recognized is not probable of occurring when the uncertainty associated with the variable consideration is subsequently resolved. Significant judgment is required in estimating variable consideration for the performance obligation identified in the contract and this judgment involves assessing factors outside of our influence.  Revenue for equipment sales is recognized upon commissioning and customer acceptance of the installed equipment per the terms of the purchase contract. Revenue for demonstrations and consulting services is recognized when performance obligations contained in the contract have been completed, typically the completion of necessary field work and the delivery of any required analysis per the terms of the agreement. The following table presents sales by operating segment disaggregated based on the type of revenue for the three and six months ended June 30, 2025 and 2024. All sales were in the United States.    For the ThreeMonths Ended June 30,2025  For the ThreeMonths Ended June 30,2024 Product revenue $3,244,446  $3,302,936 License revenue  -   - Demonstrations & Consulting revenue  9,000   12,000 Equipment revenue  465   46,497   $3,253,911  $3,361,433    For the SixMonths EndedJune 30,2025  For the SixMonths EndedJune 30,2024 Product revenue $5,921,430  $6,387,024 License revenue  525,000   140,625 Demonstrations & Consulting revenue  18,000   18,000 Equipment revenue  10,492   57,550   $6,474,922  $6,603,199  Accounts receivable and allowance for credit losses Accounts receivable are presented net of an allowance for credit losses. The Company reviews the accounts receivable on a periodic basis and makes general and specific allowances when there is doubt as to the collectability of individual balances. In evaluating the collectability of individual receivable balances, the Company considers many factors, including the age of the balance