Company: BCHT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001477932-25-003808
Chunk: 97

Company: Birchtech Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 97
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14Table of Contents

The Company uses the straight-line method of depreciation over estimated useful lives of 2 to 5 years. During the three months ended March 31, 2025 and 2024, depreciation expense was $10,298 and $535, respectively. At March 31, 2025, lab equipment included $132,469 of lab equipment not yet placed in service (December 31, 2024 - $725,626).

Note 6 - Intellectual Property License and patent costs capitalized as of March 31, 2025 and December 31, 2024 are as follows:    March 31,  December 31,   2025  2024 Licenses and patents $3,068,995  $3,068,995 Less: Accumulated amortization  (1,620,682 )  (1,569,532 )Intellectual property, net $1,448,313  $1,499,463  Amortization expense for the three months ended March 31, 2025 and 2024 was $51,150 and $51,150, respectively. Estimated annual amortization for each of the next 5 years and thereafter is as follows:  Annual amortization for the years ended:    December 31, 2025 (remaining) $153,450 December 31, 2026  204,600 December 31, 2027  204,600 December 31, 2028  204,600 December 31, 2029  204,600 Thereafter  476,463 Total $1,448,313 

Note 7 - Related Party Secured Note Payable On November 29, 2016, pursuant to a restated financing agreement entered with AC Midwest Energy, LLC (“AC Midwest”) on November 1, 2016, the Company closed on a secured note with AC Midwest (the “AC Midwest Secured Note”), which was to mature on December 15, 2018. AC Midwest is wholly-owned by a stockholder of the Company. The AC Midwest Secured Note is guaranteed by MES, is non-convertible and bears interest at a rate of 15.0% per annum, payable quarterly in arrears on or before the last day of each fiscal quarter. On February 25,