Company: BCHT
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001477932-25-008185
Chunk: 88

Company: Birchtech Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 88
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 for which revenue was recognized 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. 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. 

 11Table of Contents

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 disaggregated sales based on the type of revenue for the three and nine months ended September 30, 2025 and 2024. All sales were in the United States.   For the ThreeMonths Ended September 30,2025  For the ThreeMonths Ended September 30,2024 Product revenue $4,715,874  $5,092,123 License revenue  2,600,000   133,125 Demonstrations & Consulting revenue  27,070   9,000 Equipment revenue  18,945   2,742   $7,361,889  $5,236,990    For the NineMonths EndedSeptember 30,2025  For the NineMonths EndedSeptember 30,2024 Product revenue $10,637,304  $11,479,147 License revenue  3,125,000   273,750 Demonstrations & Consulting revenue  45,070   27,000 Equipment revenue  29,437   60,292   $13,836,811  $11,840,189  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