Birchtech (BCHT) Registration Filing summary

Company overview and business model

• Provides specialty activated carbon technologies for air and water purification, focusing on mercury emissions capture for coal-fired utilities and developing water purification solutions targeting PFAS contaminants.

• Holds a portfolio of proprietary and patented technologies, with active enforcement of IP rights through litigation and licensing.

• Recently expanded into water treatment, investing in two Design Centers for innovation and development of sustainable sorbent technologies.

• Operates primarily in North America, with a strong presence in the U.S. and Canada, and is exploring additional business opportunities through licensing agreements.

Financial performance and metrics

• 2024 revenues were $17.4M, primarily from sorbent product sales and increased licensing revenues; gross profit improved to $7.1M due to higher-margin licensing.

• Net loss for 2024 was $10.8M, compared to net income of $5.7M in 2023, mainly due to the absence of legal claim income in 2024.

• As of September 30, 2025, cash was $1.8M, with a working capital deficiency of $5.0M and an accumulated deficit of $75.2M.

• Adjusted EBITDA for 2024 was $(5.5)M, reflecting operating losses and non-cash expenses.

• Management and auditors have raised substantial doubt about the company's ability to continue as a going concern within one year, pending realization of litigation proceeds and new revenue streams.

Use of proceeds and capital allocation

• Net proceeds of approximately $13.1M (or $15.2M if over-allotment is exercised) are intended for operating expenses, working capital, and general corporate purposes.

• Management retains broad discretion over the allocation of funds, with no specific projects or acquisitions earmarked.