Company: BCHT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001477932-25-003808
Chunk: 8

Company: Birchtech Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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 The Company’s assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The profit share liability is the only item measured at fair value on a recurring basis by the Company at March 31, 2025 and December 31, 2024. The profit share liability is considered to be Level 3 measurements.  Financial instruments include cash, accounts receivable, accounts payable, and short-term debt. The carrying amounts of these financial instruments approximated fair value at March 31, 2025 and December 31, 2024 due to their short-term maturities.  At March 31, 2025, the fair value of the profit share liability is calculated using a discounted cash flow model based on estimated future cash payments. The fair value of the profit share liability at December 31, 2024 was also calculated using a discounted cash flow model based on estimated future cash payments. At March 31, 2025 and December 31, 2024, the fair value of the profit share liability was determined on a Level 3 measurement. These values are determined using pricing models for which the assumptions utilized management’s estimates. Significant unobservable inputs include a discount rate of approximately 14.55% and the projection of future cash flows. The following tables present the Company’s liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy.       Fair Value Measurement as of      March 31, 2025   Total  Level 1  Level 2  Level 3 Liabilities:                         Profit share liability – related party (1) $7,207,209  $-  $-  $7,207,209 Total Liabilities $7,207,209  $-  $-  $7,207,209       Fair Value Measurement as of       December 31, 2024   Total  Level 1  Level 2  Level 3 Liabilities:                         Profit share liability – related party (1) $6,853,858  $-  $-  $6,853,858 Total Liabilities $6,853,858  $-  $-  $6,853,