Birchtech Corp.
For the period ended Jun 30, 2025. Filed Aug 14, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 14, 2025
BCHT$1.15+11.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-15.
0001477932-25-003808
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0001477932-25-005905
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 75 previous paragraphs and 84 current paragraphs.
39 unchanged; 26 reworded; 19 added; 9 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 2 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
Our Business
Current report
Table of Content
Current report
On June 11, 2025, the EPA proposed to repeal certain amendments made to the MATS Rule published in May 2024, and return compliance obligations to the MATS standards which existed prior to the 2024 update. Such proposal is currently open for public comment, with the comment period scheduled to close in August 2025.
Current report
In April 2024, we announced the introduction of our new water treatment business to address the growing potable (drinking) water market with next-generation sorbent technologies. These new solutions are being designed to use significantly less activated carbon, offering a more environmentally sustainable approach to water treatment while maintaining or improving contaminant removal performance. Our products target not only compliance with emerging PFAS regulations, but also broader opportunities in water quality improvement positioning us to serve a large and expanding market.
Current report
As part of this strategic pivot, we have invested in the commissioning of two state-of-the-art laboratory facilities, one located in Pennsylvania and the other in North Dakota, that are referred to and serve as our Design Centers for water treatment innovation. Together, we believe these facilities represent the only known facilities that have integrated capability in North America to thermally reactivate spent granular activated carbon (“GAC”) under controlled conditions and subsequently conduct rapid small-scale column tests (“RSSCTs”) to directly compare reactivated GAC performance against virgin carbon counterpart. This combination allows us to evaluate reactivated GAC as a sustainable and cost-effective alternative to virgin carbon and address key water utility questions including how to optimize media changeout schedules, strategies to reduce operational costs, and provide lab-based validation of treatment performance for PFAS and other contaminants.
Current report
These Design Centers will also function as a direct resource for the water treatment industry, offering thermal reactivation, contaminant analysis, and carbon performance evaluations. By enabling municipal and industrial utilities to lower compliance costs and improve operational efficiency, we expect to build strong technical credibility and customer engagement ahead of large-scale market adoption. Importantly, we believe our technology platform is not solely dependent on PFAS regulations as market demand for improved water treatment solutions is broad.
Current report
Our investment in our Design Centers also serves as the basis for our planned commercial thermal reactivation plants which we intend to open and operate in the future. Data generated from the Design Centers is being used to define permitting requirements, capital expenditure parameters, and projected operating costs accelerating the commercialization timeline while avoiding costly future reliance on third-party providers.
Current report
In light of evolving water regulations and funding dynamics, we believe the Company is well positioned to capture a meaningful share in the rapidly growing water treatment sector.
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Table of Content
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Additional Information
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On December 17, 2024, the U.S. Judicial Panel on Multidistrict Litigation ordered the consolidation of the three lawsuits in the U.S. District Court for the Southern District of Iowa for coordinated pretrial proceedings. In January 2025, we initiated an additional infringement suit in the Western District of Missouri against several Evergy-affiliated entities, which was transferred to the Iowa court in February 2025 pursuant to the existing transfer order.
Current report
In January and February 2025, certain defendants in the consolidated Iowa actions filed Inter Partes Review petitions with the U.S. Patent and Trademark Office seeking to invalidate various asserted claims. Such matter remains pending.
Current report
On May 14, 2025, the EPA under the new Trump Administration announced the agency will keep the regulations for PFOA and PFOS. As part of this action, EPA also announced its intent to extend the PFOA and PFOS Maximum Contaminant Level compliance deadlines and establish a federal exemption framework. Additionally, the EPA announced its intent to rescind the regulations and reconsider the regulatory determinations for PFHxS, PFNA, HFPO-DA (commonly known as GenX), and the Hazard Index mixture of these three PFAS plus PFBS to ensure the determinations and any resulting drinking water regulation follow the Safe Drinking Water Act process.
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Table of Content
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Table of Content
Removed paragraphs (9)
Previous report
Business Operations
Previous report
In April 2024, we announced the introduction of our new division to address the potable (drinking) water market with new sorbent technologies under development. These new technologies involve less use of activated carbon and are a much more environmentally friendly approach to water treatment.
Previous report
AC is a form of carbon that has been processed to have a large surface area and a high degree of porosity. This gives it the ability to adsorb a wide range of substances, making it highly effective at removing particles, toxins and impurities. GAC and similar agglomerated activated carbons (or shaped activated carbons) are a form of activated carbon that is specifically produced in a granular, coarse form, as opposed to powdered or pelletized forms. This granularity allows for better flow through filtration systems, which makes it ideal for use in applications that require a continuous flow of air, water or liquids. GAC is commonly used in water filtration systems, including municipal water treatment plants. It is particularly effective at removing chlorine, organic compounds, pesticides, heavy metals, and other contaminants. Reactivated GAC is spent GAC that has been restored for reuse, making it more sustainable and cost-effective.
Previous report
Utilizing renewal raw materials allows us to develop and provide shaped activated carbon that can compete with other commercially available GAC options, and provide a superior activated carbon technology to remove contaminants (including PFAS) from potable water. While pending PFAS regulations are projected to significantly increase overall GAC demand, our products are expected to be successfully applied regardless of PFAS regulations reflecting significant competitive advantages (i.e., renewable raw material sources, low arsenic content, and overall performance) to presently available GAC products for the water market. In addition, our product(s) may provide inherent performance advantages such as lower pressure drop relative to existing carbon products in the marketplace today.
Previous report
Our efforts are supported by two new state of the art laboratories which we opened in 2024, one located in Pennsylvania and the other located in North Dakota. In addition to supporting the development of new technologies, the laboratories will also offer other services such as carbon activation, thermal reactivation and regeneration, contaminant analysis, as well as carbon evaluations and recommendations. These labs will enable us to tailor and optimize products for our customers’ needs and assist water utilities in implementing strategies to lower compliance costs, as well as provide a continued path to commercialization of our technologies.
Previous report
While the initial focus for our water treatment technologies will be on the potable water market, we expect that our technologies will also be valuable for industrial wastewater remediation. Industrial wastewater is the liquid waste generated by industrial activities, including manufacturing, processing, and production facilities. It often contains pollutants such as organic matter, heavy metals, chemicals, oils, and other contaminants that must be treated before being discharged into the environment or reused. We believe our water treatment technologies will be well suited to treat such industrial wastewater in an optimal and cost-effective manner.
Previous report
In July 2024, we commenced three patent infringement lawsuits against 14 defendants, including coal-fired power utilities, in three separate U.S. District Courts in Arizona, Iowa and Missouri. In January 2025, we commenced another patent infringement lawsuit against four defendants in the U.S. District Court for the Western District of Missouri. Such lawsuit claims infringement of the Company’s patent rights related to the Company’s mercury emissions reduction technologies. The United States Judicial Panel on Multidistrict Litigation has ordered that such patent infringement lawsuits be consolidated and centralized in the Southern District of Iowa.
Previous report
In January 2025, we commenced another patent infringement lawsuit against four defendants in the U.S. District Court for the Western District of Missouri. Such lawsuit claims infringement of the Company’s patent rights related to the Company’s mercury emissions reduction technologies. Named as defendants in the action are Evergy, Inc., Evergy Metro Inc., Evergy Missouri West, Inc. and Evergy Kansas Central, Inc. In the lawsuit, we request a trial by jury against the defendants and seek damages, costs, and legal expenses, along with a finding of willful infringement by the defendants, and an injunction prohibiting the defendants from further acts of infringement. In February 2025, such lawsuit was consolidated with and transferred to the Southern District of Iowa.
Previous report
Effective as of January 1, 2025, Birchtech Corp. entered into an investor relations consulting agreement with MZHCI, LLC.
Reworded paragraphs (26)
Previous wording
In addition, in May 2024, we announced the appointment of Dennis Baranik as Director of National Sales. Mr. Baranik will oversee product sales and IP licensing in the Company’s core business for mercury emissions capture as well as support both product and business development for the water market.
Current wording
In May 2024, we announced the appointment of David Mazyck to head our new business line to address the potable (drinking) water market with new sorbent technologies under development. In June 2025, he was appointed our Executive Director of Innovation and Commercialization. In addition, in May 2024, we announced the appointment of Dennis Baranik as Director of National Sales. Mr. Baranik will oversee product sales and IP licensing in the Company’s core business for mercury emissions capture as well as support both product and business development for the water market. Also, in June 2025, we announced the appointment of Christopher Rinaldi as Director of Strategic Operations, with a focus on our water treatment business.
Previous wording
Following a five-day trial, on March 1, 2024, we were awarded a $57.1 million patent infringement verdict by a federal jury in the U.S. District Court for the District of Delaware against a remaining group of defendants in the lawsuit commenced by us in 2019. Such group of affiliated defendants included multiple limited liability companies with refined coal industry operations, including CERT Operations II LLC, CERT Operations IV LLC, CERT Operations V LLC, and CERT Operations RCB LLC. The jury determined that these defendants infringed our patented technologies for mercury emissions and were liable for willful infringement, along with inducing and contributory infringement. Following the trial, various post-trial motions and applications were made by the parties. We are awaiting rulings from the Court.
Current wording
Following a five-day trial, on March 1, 2024, we were awarded a $57.1 million patent infringement verdict by a federal jury in the U.S. District Court for the District of Delaware against a remaining group of defendants in the lawsuit commenced by us in 2019. Such group of affiliated defendants included multiple limited liability companies with refined coal industry operations, including CERT Operations II LLC, CERT Operations IV LLC, CERT Operations V LLC, and CERT Operations RCB LLC. The jury determined that these defendants infringed our patented technologies for mercury emissions and were liable for willful infringement, along with inducing and contributory infringement. Following the trial, the Court entered non-final judgments on the verdict against the CERT defendants and the parties submitted post-trial motions relating to the jury trial. The CERT defendants also asserted that the Company’s claims were barred due to their defense that they had an implied license to the asserted patents. A bench trial was held on such issue. On June 10, 2025, the Court ruled that the CERT defendants failed to prove that they had such an implied license and denied their motion to alter or amend the non-final judgment. We are awaiting the Court’s determination as to the final judgment.
Previous wording
In April 2024, the EPA issued the first-ever national, enforceable drinking water standard to protect communities from exposure to harmful per-and polyfluoroalkyl substances (“PFAS”), also known as “forever chemicals”. The Rule sets limits for five individual PFAS: PFOA, PFOS, PFNA, PFHxS, and HFPO-DA (known as GenX Chemicals). The Rule also sets a hazard index level for two or more of four PFAS as a mixture: PFNA, PFHxS, HFPO-DA, and PFBS. Under the Rule, public water systems must monitor these PFAS and will have three years to complete initial monitoring (by 2027), followed by ongoing compliance monitoring. Water systems must also provide the public with information on the levels of these PFAS in their drinking water beginning in 2027.
Current wording
In April 2024, the EPA under the Biden Administration issued the first-ever national, enforceable drinking water standard to protect communities from exposure to harmful per-and polyfluoroalkyl substances (“PFAS”), also known as “forever chemicals”. The Rule established legally enforceable levels, called Maximum Contaminant Levels (MCLs), for six PFAS in drinking water: PFOA, PFOS, PFHxS, PFNA, and HFPO-DA as contaminants with individual MCLs, and PFAS mixtures containing at least two or more of PFHxS, PFNA, HFPO-DA, and PFBS using a Hazard Index MCL to account for the combined and co-occurring levels of these PFAS in drinking water. Under the Rule, public water systems must monitor these PFAS and will have three years to complete initial monitoring (by 2027), followed by ongoing compliance monitoring. Water systems must also provide the public with information on the levels of these PFAS in their drinking water beginning in 2027.
Previous wording
Effective as of October 8, 2024, we entered into agreement with one of the utilities and an affiliated entity named as defendants in the patent infringement lawsuit commenced by the Company in July 2024 in Arizona. Such agreement provides such parties and their affiliates with a non-exclusive license to certain Company patents for use in connection with a certain designated coal-fired power plant operated by such utility. The agreement includes a one-time license fee and provides the Company with a right of first refusal for certain of such utility’s product supply for mercury emissions capture at such designated power plant.
Current wording
In July 2024, we commenced three additional patent infringement lawsuits in U.S. District Courts in Arizona, Iowa and Missouri against multiple utilities and related entities. These actions allege willful infringement of our patents related to mercury emissions control. In October 2024, we entered into an agreement with one of the utility defendants and an affiliated entity in the Arizona action, and in January 2025, we entered into an agreement with another utility named in the Arizona action. Such agreements provide such parties and their affiliates with a non-exclusive license to certain Company patents related to our two-part Sorbent Enhancement Additive (SEA®) process for use in connection with a certain designated coal-fired power plant operated by them. The agreements include one-time license fees which have been received by us. One agreement provides us with a right of first refusal for certain of such utility’s product supply for mercury emissions capture at such designated power plant and the other agreement provides us with the right to be included in such party’s bidding process for certain product supply for mercury emissions capture at such party’s designated power plant.
Previous wording
On March 19, 2025, we announced that our Board of Directors authorized a share repurchase program under which the Company may purchase up to $5.0 million of its common stock. Purchases under the share repurchase program may be made from time to time, in such amounts as management deems appropriate, through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, purchases through 10b5-1 trading plans, or by any combination of such methods. The timing and amount of any repurchases pursuant to the share repurchase program will be determined based upon a variety of factors, including general market conditions, share price, corporate and regulatory requirements and limitations, corporate liquidity requirements and priorities, and other factors. We anticipate that any repurchases will not occur before the second half of 2025. The share repurchase program does not have an expiration date, does not require the Company to repurchase any specific number of shares of its common stock, if any, and may be modified, suspended or terminated at any time without notice. During the three months ended March 31, 2025, there were no repurchases made under the program.
Current wording
On March 19, 2025, we announced that our Board of Directors authorized a share repurchase program under which the Company may purchase up to $5.0 million of its common stock. Purchases under the share repurchase program may be made from time to time, in such amounts as management deems appropriate, through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, purchases through 10b5-1 trading plans, or by any combination of such methods. The timing and amount of any repurchases pursuant to the share repurchase program will be determined based upon a variety of factors, including general market conditions, share price, corporate and regulatory requirements and limitations, corporate liquidity requirements and priorities, and other factors. The share repurchase program does not have an expiration date, does not require the Company to repurchase any specific number of shares of its common stock, if any, and may be modified, suspended or terminated at any time without notice. During the three and six months ended June 30, 2025, there were no repurchases made under the program. Repurchases are not expected to occur until the second half of 2025 at the earliest, or until 2026, if at all.
Previous wording
Effective as of January 7, 2025, we entered into agreement with another one of the utilities named as a defendant in the Arizona action. Such agreement provides such party and its affiliates with a non-exclusive license to certain Company patents for use in connection with a certain designated coal-fired power plant operated by such utility. The agreement includes a one-time license fee and provides the Company with the right to be included in such party’s bidding process for certain product supply for mercury emissions capture at such party’s designated power plant.
Current wording
Effective as of August 5, 2025, we entered into separate agreements with two utilities, which are affiliated with each other, and named as defendants in the Southern District of Iowa action. Such agreements provide such parties and their affiliates with a non-exclusive license to certain Company patents related to our two-part Sorbent Enhancement Additive (SEA®) process for use in connection with certain designated coal-fired power plants operated by them. Each agreement includes a one-time license fee which is to be paid within 30 days of signing of the agreement. Such agreements provide us with the right to be included in each utility’s bidding process for certain product supply for mercury emissions capture at such party’s operated power plants. Such lawsuit will continue against the other non-affiliated defendants named in the Southern District of Iowa action.
Previous wording
We generated revenues of approximately $3,221,000 and $3,242,000 for the three months ended March 31, 2025 and 2024, respectively. Such revenues were primarily derived from sorbent product sales which were approximately $2,677,000 and $3,084,000 for three months ended March 31, 2025 and 2024, respectively. Revenues can be dependent on natural gas prices, extreme weather, and the maintenance and downtime requirements of customer plants. The decrease in revenues from the prior year was primarily due to the mix of plants running and products sold in the first three months of 2025 resulting in decreased product revenues for the quarter ended March 31, 2025 compared to the prior year period, offset by an increase in licensing revenues for the three months ended March 31, 2025 compared to March 31, 2024.
Current wording
We generated revenues of approximately $3,254,000 and $3,361,000 for the three months ended June 30, 2025 and 2024, respectively, and approximately $6,475,000 and $6,603,000 for the six months ended June 30, 2025 and 2024, respectively. Such revenues were primarily derived from sorbent product sales which were approximately $3,244,000 and $3,303,000 for the three months ended June 30, 2025 and 2024, respectively and approximately $5,921,000 and $6,387,000 for the six months ended June 30, 2025 and 2024, respectively. Revenues can be dependent on natural gas prices, extreme weather, and the maintenance and downtime requirements of customer plants. The decrease in revenues from the prior year was primarily due to the mix of plants running, unexpected customer forced outages and products sold in the first six months of 2025 resulting in decreased product revenues for the six months ended June 30, 2025 compared to the prior year period. This decrease was offset by an increase in licensing revenues for the six months ended June 30, 2025 compared to June 30, 2024.
Previous wording
Licensing revenues were approximately $525,000 and $141,000 for the three months ended March 31, 2025 and 2024, respectively. Such increase was primarily due to a new licensing agreement which was entered into during the three months ended March 31, 2025 with a utility.
Current wording
Licensing revenues were approximately $0 and $0 for the three months ended June 30, 2025 and 2024, respectively and approximately $525,000 and $141,000 for the six months ended June 30, 2025 and 2024, respectively. Such increase was primarily due to a new licensing agreement which was entered into during the three months ended March 31, 2025 with a utility.
Previous wording
Equipment sales and other revenues for the three months ended March 31, 2025 and 2024 were approximately $19,000 and $17,000, respectively. Other revenues were comparable for the periods ended March 31, 2025 and 2024.
Current wording
Equipment sales and other revenues for the three months ended June 30, 2025 and 2024 were approximately $9,465 and $59,000, respectively and approximately $28,000 and $76,000 for the six months ended June 30, 2025 and 2024, respectively. Other revenues were comparable for the periods ended June 30, 2025 and 2024.
Previous wording
Cost of sales were approximately $1,987,000 and $2,113,000 for the three months ended March 31, 2025 and 2024, respectively. The decrease in cost of sales of approximately $127,000 was primarily attributable to decreased product sales in the first three months of 2025 compared to the prior year period, together with a change in the mix of products sold in the first quarter of 2025 compared to the first quarter of 2024.
Current wording
Cost of sales were approximately $2,286,000 and $2,301,000 for the three months ended June 30, 2025 and 2024, respectively, and approximately $4,272,000 and $4,414,000 for the six months ended June 30, 2025 and 2024, respectively. This decrease in cost of sales of approximately $142,000 for the six months ended June 30, 2025 was primarily attributable to decreased product sales in the first six months of 2025 compared to the prior year period, together with a change in the mix of products sold in the first six months of 2025 compared to the first six months of 2024.
Previous wording
Gross profit was approximately $1,234,000 and $1,128,000 for the three months ended March 31, 2025 and 2024, respectively. This increase in gross profit of approximately $106,000 was primarily due to higher licensing revenues in 2025 compared to 2024, which typically carry higher margins than product sales, thus contributing to the overall improvement in gross profit.
Current wording
Gross profit was approximately $968,000 and $1,061,000 for the three months ended June 30, 2025 and 2024, respectively, and approximately $2,202,000 and $2,189,000 for the six months ended June 30, 2025 and 2024. The decrease in gross profit for the three months ended 2025 was primarily due to a decrease in sales. The increase in gross profit for the six months ended June 30, 2025 was primarily due to higher licensing revenues in 2025 compared to 2024, which typically carry higher margins than product sales, thus contributing to the overall improvement in gross profit.
Previous wording
Operating expenses consisted of selling, general and administrative expenses (“SG&A”) and research and development expenses (“R&D”) in 2025 and SG&A and in 2024. SG&A expenses were approximately $2,171,000 and $3,527,000 for the three months ended March 31, 2025 and 2024, respectively. Total SG&A expenses decreased in the first three months of 2025 compared to the prior year period, as a result of variances in individual categories. Decreases in salaries and wages, and professional fees were partially offset by increases in consulting fees. The decrease in salaries and wages was primarily due to the payment of bonus compensation in the first quarter of 2024 for which there were no comparable expenses in the first quarter of 2025, along with greater stock-based compensation in the first quarter of 2024 compared to first quarter of 2025. The decrease in professional fees was primarily due to lower legal fees in the first quarter of 2025 in connection with the Company’s patent litigation compared to the prior year period which had greater legal fees due to trial preparation and the jury trial in the U.S. District Court for the District of Delaware.
Current wording
Operating expenses consisted of selling, general and administrative expenses (“SG&A”) and research and development expenses (“R&D”) in 2025 and SG&A and in 2024. Operating expenses decreased significantly in 2025 compared to 2024, despite incurring costs related to the development of the Company’s water treatment business. SG&A expenses were approximately $1,698,000 and $4,634,000 for the three months ended June 30, 2025 and 2024, respectively, and approximately $3,869,000 and $8,161,000 for the six months ended June 30, 2025 and 2024, respectively. Total SG&A expenses decreased in the first six months of 2025 compared to the prior year period, as a result of variances in individual categories. Decreases in salaries and wages, and professional fees were partially offset by increases in consulting fees. The decrease in salaries and wages was primarily due to the payment of bonus compensation in the first six months of 2024 for which there were no comparable expenses in the first six months of 2025, along with greater stock-based compensation in the first six months of 2024 compared to the comparable period in 2025. The decrease in professional fees was primarily due to lower legal fees in the first six months of 2025 in connection with the Company’s patent litigation compared to the prior year period which had greater legal fees due to trial preparation and the jury trial in the U.S. District Court for the District of Delaware.
Previous wording
Total R&D expenses were approximately $407,000 and $0 for the three months ended March 31, 2025 and 2024, respectively. R&D expenses relate to research conducted to develop water treatment products utilizing new sorbent technologies, and increased in the first three months of 2025 compared to the prior year period as the Company had not incurred any research related costs during the first three months of 2024. The Company began incurring research and development costs when the lab equipment at the Company’s labs was placed into service.
Current wording
Total R&D expenses were approximately $455,000 and $0 for the three months ended June 30, 2025 and 2024, respectively, and $862,000 and $0 for the six months ended June 30, 2025 and 2024, respectively. R&D expenses relate to research conducted to develop water treatment products utilizing new sorbent technologies, and increased in the first six months of 2025 compared to the prior year period as the Company had not incurred any research related costs during the first six months of 2024. The Company began incurring research and development costs when the lab equipment at the Company’s labs was placed into service.
Previous wording
Our operating loss was approximately $1,343,000 and $2,398,000 for the three months ended March 31, 2025 and 2024, respectively. Such decrease in operating loss was primarily due to our increased gross profit in 2025 compared to 2024 coupled with a decrease in total operating expenses during the current period.
Current wording
Operating loss decreased significantly in 2025 compared to 2024. Our operating loss was approximately $1,185,000 and $3,574,000 for the three months ended June 30, 2025 and 2024, respectively, and approximately $2,528,000 and $5,972,000 for the six months ended June 30, 2025 and 2024, respectively. Such decrease in operating loss was primarily due to our increased license fee revenue in 2025 compared to 2024 coupled with a decrease in total operating expenses during the first six months of 2025 as discussed above.
Previous wording
Interest expense related to the financing of capital was approximately $54 and $246,000 for the three months ended March 31, 2025 and 2024, respectively. The approximate breakdown of interest expense for the three months ended March 31, 2025 and 2024 is as follows:
Current wording
Interest expense related to the financing of capital was approximately $0 and $6,000 for the three months ended June 30, 2025 and 2024, respectively, and $54 and $252,000 for the six months ended June 30, 2025 and 2024, respectively. The approximate breakdown of interest expense for the three and six months ended June 30, 2025 and 2024 is as follows:
Previous wording
Loss on change in fair value of profit share liability were approximately $353,000 and $265,000 for the three months ended March 31, 2025 and 2024, respectively. The change is primarily attributed to the modification of the terms of the profit share liability (see Note 7 to the consolidated financial statements).
Current wording
Loss on change in fair value of profit share liability and unsecured note was approximately $376,000 and $2,689,000 for the three months ended June 30, 2025 and 2024, respectively, and $729,000 and $2,955,000 for the six months ended June 30, 2025 and 2024, respectively. The change is primarily attributed to the modification of the terms of the profit share liability (see Note 7 to the unaudited condensed consolidated financial statements).
Previous wording
For the three months ended March 31, 2025 we had a net loss of approximately $1,679,000 compared to net loss of approximately $2,855,000 for the three months ended March 31, 2024. Such change was primarily due an increase in gross profit in 2025 compared to 2024, and a decrease in SG&A.
Current wording
Net loss decreased significantly in 2025 compared to 2024. For the three months ended June 30, 2025, we had a net loss of approximately $1,542,000 compared to a net loss of approximately $6,147,000 for the three months ended June 30, 2024. For the six months ended June 30, 2025, we had a net loss of approximately $3,221,000 compared to a net loss of approximately $9,002,000 for the six months ended June 30, 2024. Such change was primarily due an increase in license fee revenues in 2025 compared to 2024, and a decrease in SG&A.
Previous wording
We had approximately $3,188,000 in cash on our balance sheet at March 31, 2025 compared to approximately $3,456,000 at December 31, 2024. Total current assets were approximately $5,198,000 and total current liabilities were approximately $9,477,000 at March 31, 2025, resulting in a working capital deficiency of approximately $4,279,000. This compares to total current assets of approximately $6,099,000 and total current liabilities of approximately $8,806,000 at December 31, 2024, resulting in a working capital deficiency of approximately $2,707,000. Our accumulated deficit was approximately $74.4 million at March 31, 2025 compared to $72.8 million at December 31, 2024. Additionally, we had a net loss in the amount of approximately $1,679,000 and cash used in operating activities of approximately $254,000 for the three months ended March 31, 2025.
Current wording
We had approximately $1,454,000 in cash on our balance sheet at June 30, 2025 compared to approximately $3,456,000 at December 31, 2024. Total current assets were approximately $4,572,000 and total current liabilities were approximately $10,284,000 at June 30, 2025, resulting in a working capital deficiency of approximately $5,712,000. This compares to total current assets of approximately $6,099,000 and total current liabilities of approximately $8,806,000 at December 31, 2024, resulting in a working capital deficiency of approximately $2,707,000. Our accumulated deficit was approximately $76.0 million at June 30, 2025 compared to $72.8 million at December 31, 2024. Additionally, we had a net loss in the amount of approximately $3,221,000 and cash used in operating activities of approximately $1,986,000 for the six months ended June 30, 2025.
Previous wording
Based on the Company’s current cash levels and burn rate, discussed above, the Company believes its cash and financial resources may be insufficient to meet the Company’s anticipated needs for the twelve months following the date of issuance of the financial statements for the three months ended March 31, 2025, included elsewhere in this Form 10-Q, which raises substantial doubt about the Company’s ability to continue as a going concern within one year from the issuance date of the financial statements.
Current wording
Based on the Company’s current cash levels and burn rate, discussed above, the Company believes its cash and financial resources may be insufficient to meet the Company’s anticipated needs for the twelve months following the date of issuance of the financial statements for the quarterly period ended June 30, 2025, included elsewhere in this Form 10-Q, which raises substantial doubt about the Company’s ability to continue as a going concern within one year from the issuance date of the financial statements.
Previous wording
Total assets were approximately $9,302,000 at March 31, 2025 versus approximately $10,261,000 at December 31, 2024. The change in total assets is primarily attributable to an approximate $268,000 decrease in cash and an approximate $545,000 decrease in accounts receivable.
Current wording
Total assets were approximately $8,574,000 at June 30, 2025 versus approximately $10,261,000 at December 31, 2024. The change in total assets is primarily attributable to an approximate $2,002,000 decrease in cash, offset by an approximate $337,000 increase in accounts receivable.
Previous wording
Total liabilities were approximately $9,729,000 at March 31, 2025 versus approximately $9,069,000 at December 31, 2024. The increase is primarily attributable to an increase in accounts payable and accrued liabilities and an increase in the fair value of the non-recourse profit share liability.
Current wording
Total liabilities were approximately $10,523,000 at June 30, 2025 versus approximately $9,069,000 at December 31, 2024. The increase is primarily attributable to an increase in accounts payable and accrued liabilities and an increase in the fair value of the non-recourse profit share liability.
Previous wording
Net cash used in operating activities was approximately $254,000 for the three months ended March 31, 2025 compared to net cash used in operating activities of approximately $439,000 for the three months ended March 31, 2024. The decrease in net cash provided by operating activities was primarily due to the following: (i) a net loss of $1.7 million for the three months ended March 31, 2025 compared to net loss of $2.9 million for the three months ended March 31, 2024; and (ii) certain other changes in operating assets and liabilities including accounts receivable, inventory, prepaid expenses and other assets, accrued salaries, and accounts payable and accrued liabilities.
Current wording
Net cash used by operating activities was approximately $1,986,000 for the six months ended June 30, 2025 compared to net cash used by operating activities of approximately $3,123,000 for the six months ended June 30, 2024. The decrease in net cash provided by operating activities was primarily due to the following: (i) a net loss of $3.2 million for the six months ended June 30, 2025 compared to net loss of $9.0 million for the six months ended June 30, 2024; and (ii) certain other changes in operating assets and liabilities including accounts receivable, inventory, prepaid expenses and other assets, accrued salaries, and accounts payable and accrued liabilities.
Previous wording
The Company had net cash used in investing activities of approximately $14,000 for the three months ended March 31, 2025 for the purchase of lab equipment compared to no cash used in investing activities for the three months ended March 31, 2024.
Current wording
The Company had net cash used in investing activities of approximately $16,000 for the six months ended June 30, 2025 for the purchase of lab equipment compared to net cash used in investing activities of approximately $66,000 for the six months ended June 30, 2024. During the six months ended June 30, 2024, we paid $66,274 to purchase a truck.
Previous wording
Net cash used in financing activities was approximately $0 for the three months ended March 31, 2025 compared to approximately $9,312,000 used in financing activities for the three months ended March 31, 2024. During the three months ended March 31, 2024, we repaid the remaining principal of approximately $272,000 on the AC Midwest secured note and approximately $9,040,000 of the principal remaining on the AC Midwest unsecured note.
Current wording
Net cash used in financing activities was approximately $0 for the six months ended June 30, 2025 compared to approximately $9,312,000 used in financing activities for the six months ended June 30, 2024. During the six months ended June 30, 2024, we repaid the remaining principal of approximately $272,000 on the AC Midwest secured note and approximately $9,040,000 of the principal remaining on the AC Midwest unsecured note.
Previous wording
Our critical accounting policies and estimated are discussed in our Annual Report on Form 10-K for the year ended December 31, 2024, and there have been no material changes to such policies or estimates during the three months ended March 31, 2025.
Current wording
Our critical accounting policies and estimated are discussed in our Annual Report on Form 10-K for the year ended December 31, 2024, and there have been no material changes to such policies or estimates during the six months ended June 30, 2025.
Previous wording
The following table shows our reconciliation of net income (loss) to adjusted EBITDA for the three months ended March 31, 2025 and 2024, respectively:
Current wording
The following table shows our reconciliation of net income (loss) to adjusted EBITDA for the three and six months ended June 30, 2025 and 2024, respectively:
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
In May 2024, we announced the appointment of David Mazyck to head our new division to address the potable (drinking) water market with new sorbent technologies under development.