Company: BCHT
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001477932-25-002237
Chunk: 907

Company: Birchtech Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 907
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 legal fees paid in 2023 to the patent litigation firm handling the cases, with no comparable expenses incurred in 2024.

 25Table of Contents

Operating Loss

Our operating loss was approximately $7,158,000 and $8,973,000 (as restated) for the years ended December 31, 2024 and 2023, respectively. Such decrease in operating loss was primarily due to our increased gross profit in 2024 compared to 2023 coupled with total operating expenses remaining relatively unchanged from year to year.  

Other Income (Expense)

During the years ended December 31, 2024 and 2023, we had income from legal claims of $0 and approximately $27,608,000, respectively. The income from legal claims in 2023 consisted of two settlement agreements reached in the fourth quarter of 2023 with various defendants in our patent litigation.  

Interest expense related to the financing of capital was approximately $267,000 and $1,362,000 for the years ended December 31, 2024 and 2023, respectively. The approximate breakdown of interest expense for the years ended December 31, 2024 and 2023 is as follows:

  Year Ended   December 31,   2024  2023        Interest expense on notes payable $4,000  $24,000 Other interest expense  21,000   2,000 Amortization of discount of notes payable  242,000   1,336,000            $267,000  $1,362,000 

Loss on change in fair value of profit share liability were approximately $3,959,000 and $11,210,000 for the years ended December 31, 2024 and 2023, respectively.  The change is primarily attributed to the modification of the terms of the profit share liability (see Note 8 to the consolidated financial statements). 

Net Income (Loss)

For the year ended December 31, 2024, we had a net loss of approximately $10,802,000 compared to net income of approximately $5,668,000 (as restated) for the year ended December 31, 2023. Such change was primarily due to no income from legal claims in 2024 compared to $27,608,000 in 2023, offset by an increase in gross profit in 2024 compared to