Birchtech Corp.
For the period ended Jun 30, 2026. Filed Aug 13, 2026.
View on SEC.govAbout this filing
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, 2026 · Filed Aug 13, 2026
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 2026-03-31; filed 2026-05-13.
0001477932-26-003054
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-13.
0001477932-26-004988
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 78 previous paragraphs and 78 current paragraphs.
48 unchanged; 24 reworded; 6 added; 5 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 1 previous and 1 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 (6)
Current report
On May 14, 2025, the EPA announced that it would retain the national drinking water standards for PFOA and PFOS but intends to extend the compliance deadline for those contaminants from 2029 to 2031 and establish a federal exemption framework. The EPA also announced its intent to rescind the existing regulations for PFHxS, PFNA, HFPO-DA, and the Hazard Index applicable to mixtures of PFHxS, PFNA, HFPO-DA, and PFBS, and to reconsider the underlying regulatory determinations for those substances through a new rulemaking process under the Safe Drinking Water Act. Until any such rulemaking is finalized, the April 2024 rule remains subject to ongoing administrative and legal developments.
Current report
Our operating loss was approximately $1,623,000 and $1,185,000 for the three months ended June 30, 2026 and 2025, respectively, and approximately $2,772,000 and $2,528,000 for the six months ended June 30, 2026 and 2025, respectively. This increase in operating loss was primarily attributable to higher SG&A expenses and increased R&D expenses during the 2026 periods, which more than offset the increased revenues and higher gross profit compared to the prior year periods.
Current report
Other income (expense) was approximately $(1,391,000) and $(356,000) for the three months ended June 30, 2026 and 2025, respectively, and $(1,587,000) and $(678,000) for the six months ended June 30, 2026 and 2025, respectively. The increase in net other expenses during the 2026 periods was primarily attributable to the recognition of $(1,250,000) of license and settlement fees during the second quarter of 2026, $750,000 of which is only due under certain circumstances if we receive net proceeds of at least $20.0 million from the Delaware litigation. Net other expense also reflected a loss on the change in fair value of the profit share liability, partially offset by increased interest income resulting from higher average cash balances following our February 2026 registered offering.
Current report
Interest income was approximately $116,000 and $20,000 for the three months ended June 30, 2026 and 2025, respectively, and $166,000 and $51,000 for the six months ended June 30, 2026 and 2025, respectively.
Current report
License and settlement fees were approximately $(1,250,000) and $0 for the three months ended June 30, 2026 and 2025, respectively, and $(1,250,000) and $0 for the six months ended June 30, 2026 and 2025, respectively.
Current report
For the three months ended June 30, 2026, we had a net loss of approximately $3,017,000 compared to approximately $1,542,000 for the three months ended June 30, 2025. For the six months ended June 30, 2026, we had a net loss of approximately $4,363,000 compared to approximately $3,221,000 for the six months ended June 30, 2025. The increase in net loss was primarily attributable to higher selling, general and administrative expenses, increased research and development expenses and higher net other expense, which more than offset the increases in revenues and gross profit during the 2026 periods.
Removed paragraphs (5)
Previous report
On March 12, 2025, the newly appointed EPA administrator under the Trump Administration announced plans to roll back dozens of environmental regulations including the reconsideration of the MATS regulation. On April 8, 2025, President Trump signed a Proclamation exempting certain stationary sources, identified in Annex 1 of the Proclamation, from compliance with the 2024 updated MATS Rule. As set out in the Proclamation, the President’s exemption lasts for a period of two years beyond the updated Rule’s compliance date (i.e., for the period beginning July 8, 2027, and concluding July 8, 2029). During the two-year period these stationary sources identified in Annex 1 are subject to the compliance obligations that they are currently subject to under MATS as the MATS Rule existed prior to the 2024 update. Annex 1 identifies 47 plant owners and over 60 power plants provided such exemption, which list includes a number of our customers.
Previous report
Our operating loss was approximately $1,149,000 and $1,343,000 for the three months ended March 31, 2026 and 2025, respectively. Such decrease in operating loss was primarily due to our increased revenues in the first three months of 2026 compared to prior year period coupled with a decrease in total operating expenses during the first three months of 2026 as discussed above.
Previous report
During the three months ended March 31, 2026 and 2025, we had total other expenses of $196,000 in 2026 compared to total other expenses of $322,000 in 2025.
Previous report
Interest income was approximately $50,000 and $31,000 for the three months ended March 31, 2026 and 2025.
Previous report
For the three months ended March 31, 2026, we had a net loss of approximately $1,346,000, an improvement from a net loss of $1,679,000 for the three months ended March 31, 2025. This improvement was primarily due to any increase in revenues in 2026 compared to 2025, and a decrease in expenses.
Reworded paragraphs (24)
Previous wording
We provide mercury capture solutions for coal-fired power plants driven by our patented two-part Sorbent Enhancement Additive (SEA®) process using a powerful combination of science and engineering. Our leading-edge services have been shown to achieve mercury emissions removal at a significantly lower cost and with less operational impact to coal-fired power plants than other used methods, while maintaining and/or increasing power plant output and preserving the marketability of byproducts for beneficial use. We design systems and materials tailored and formulated specifically to each customer’s coal-fired units. North America is currently the largest market for our emissions technologies. The market for mercury removal from power plant emissions in the United States has largely been driven by federal regulations. The MATS rule, proposed by the EPA in May 2011 and which became effective in April 2012, is intended to reduce air emissions of heavy metals, including Hg, from all major U.S. power plants burning coal or oil, which are the leading source of non-natural mercury emissions in the U.S. Our mercury removal technologies and systems achieve mercury removal levels which meet or exceed the MATS requirements with lower cost and plant systems impacts than typical PAC or BAC sorbent injection systems. Our products have been shown to be successful across a myriad of fuel and system types, tunable to any configuration, and environmentally friendly, allowing for the recycling of fly ash for beneficial use.
Current wording
We provide mercury capture solutions for coal-fired power plants driven by our patented two-part Sorbent Enhancement Additive (SEA®) process using a powerful combination of science and engineering. Our leading-edge services have been shown to achieve mercury emissions removal at a significantly lower cost and with less operational impact to coal-fired power plants than other used methods, while maintaining and/or increasing power plant output and preserving the marketability of byproducts for beneficial use. We design systems and materials tailored and formulated specifically to each customer’s coal-fired units. North America is currently the largest market for our emissions technologies. The market for mercury removal from power plant emissions in the United States has largely been driven by federal regulations. The MATS rule, proposed by the U.S. Environmental Protection Agency (“EPA”) in May 2011 and which became effective in April 2012, is intended to reduce air emissions of heavy metals, including Hg, from all major U.S. power plants burning coal or oil, which are the leading source of non-natural mercury emissions in the U.S. Our mercury removal technologies and systems achieve mercury removal levels which meet or exceed the MATS requirements with lower cost and plant systems impacts than typical PAC or BAC sorbent injection systems. Our products have been shown to be successful across a myriad of fuel and system types, tunable to any configuration, and environmentally friendly, allowing for the recycling of fly ash for beneficial use.
Previous wording
In April 2023, the EPA issued a proposal to strengthen and update MATS. Such proposal was finalized and published in May 2024 with an effective date of July 8, 2024 which, among other things, strengthens and updates MATS for coal-fired power plants and tightens the emission standard for mercury for existing lignite-fired power plants to a level that is aligned with the mercury standard that other coal-fired power plants have been achieving under MATS.
Current wording
In April 2023, the EPA issued a proposal to strengthen and update MATS. Such proposal was finalized and published in May 2024 with an effective date of July 8, 2024 which, among other things, strengthened and updated MATS for coal-fired power plants and tightened the emission standard for mercury for existing lignite-fired power plants to a level that is aligned with the mercury standard that other coal-fired power plants have been achieving under MATS.
Previous 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 PFAS, also known as “forever chemicals”. The rule as enacted established legally enforceable MCLs (maximum contaminant levels) 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 as enacted, public water systems must monitor these PFAS and must 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. 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, the EPA also announced its intent to extend the PFOA and PFOS MCL compliance deadlines to 2031 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/GenX), and the Hazard Index mixture of these three PFAS plus PFBS to ensure the determinations and any resulting drinking water regulation follow the SDWA process.
Current wording
In April 2024, the EPA issued the first-ever national, enforceable drinking water standard to protect communities from exposure to harmful PFAS, also known as “forever chemicals”, under the Safe Water Drinking Act. The rule as enacted established legally enforceable 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. As originally adopted, the rule required public water systems to complete initial monitoring for these PFAS by 2027, provide the public with information regarding PFAS levels in drinking water beginning in 2027, and achieve compliance with the applicable MCLs by 2029.
Previous wording
As part of this strategic pivot, we have invested in the commissioning of two state-of-the-art laboratory facilities—one in Pennsylvania and one in North Dakota—referred to as our “Design Centers.” The Design Centers are dedicated sites for water treatment innovation and development. Together, we believe these facilities represent the only known facilities that have integrated capability in North America to thermally reactivate spent GAC under controlled conditions and subsequently conduct RSSCTs to directly compare reactivated GAC performance against virgin carbon counterparts. 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 wording
As part of this strategic pivot, we have invested in the commissioning of two state-of-the-art laboratory facilities, one in Pennsylvania and one in North Dakota, referred to as our “Design Centers.” The Design Centers are dedicated sites for water treatment innovation and development, including but not limited to the development of a carbon reactivation process, referrred to as Carbon Rejuvenation TM, focused on the thermal reactivation of spent granular activated carbon (GAC). Together, we believe these facilities represent the only known facilities that have integrated capability in North America to thermally reactivate spent GAC under controlled conditions and subsequently conduct RSSCTs to directly compare reactivated GAC performance against virgin carbon counterparts. 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.
Previous wording
We previously commenced multiple patent infringement lawsuits to enforce our proprietary two-part SEA® process for mercury removal from coal-fired power plants. These actions, filed between 2019 and 2025, targeted various operators of coal-fired power plants and refined coal producers whom we allege have willfully infringed our patent rights.
Current wording
We have commenced multiple patent infringement lawsuits to enforce our proprietary two-part SEA® process for mercury removal from coal-fired power plants. One action was filed in 2019, and additional actions were filed between 2024 to 2025 against various operators of coal-fired power plants and refined coal producers whom we allege have willfully infringed our patent rights. The actions filed between 2024 and 2025 have been consolidated in the U.S. District Court for the Southern District of Iowa.
Previous wording
In addition, certain defendants have filed inter partes review (“IPR”) petitions challenging asserted claims of the Company’s patents. The U.S. Patent Trial and Appeal Board (“PTAB”) instituted review of certain petitions, and proceedings are ongoing. The U.S. District Court for the Southern District of Iowa has stayed the consolidated litigation pending resolution of the IPR proceedings. Other IPR petitions have been denied institution and requests for reconsideration have also been denied.
Current wording
Between January and July 2025, certain defendants in the consolidated Iowa actions filed inter partes review (“IPR”) petitions challenging asserted claims of our patents. The U.S. Patent Trial and Appeal Board instituted review of certain petitions, and in October 2025 the U.S. District Court for the Southern District of Iowa stayed the consolidated litigation pending resolution of the IPR proceedings.
Previous wording
On December 29, 2025, following resolution of post-trial motions, the U.S. District Court for the District of Delaware entered final judgment in favor of the Company in the amount of $78,397,157, inclusive of pre-judgment interest, in connection with the patent infringement action commenced in 2019. On January 28, 2026, the defendants filed a notice of appeal of the judgment. No stay of execution of the judgment has been obtained, and interest continues to accrue during the pendency of the appeal.
Current wording
With regard to the 2019 litigation, on December 29, 2025 and following resolution of post-trial motions, the U.S. District Court for the District of Delaware entered final judgment in favor of the Company in the amount of $78,397,157, inclusive of pre-judgment interest. On January 28, 2026, the defendants filed a notice of appeal of the judgment. No stay of execution of the judgment has been obtained, and interest continues to accrue during the pendency of the appeal.
Previous wording
Separately, the Company has entered into agreements with certain utilities resolving disputes and providing for licenses to certain of the Company’s patents and withdrawal of related proceedings. As a result, those parties have been dismissed from the applicable actions. Two utilities remain in the consolidated Iowa actions.
Current wording
Separately, in connection with the consolidated Iowa actions, the Company has entered into agreements with certain utilities and affiliated parties, the most recent of which became effective on May 28, 2026. These agreements resolved disputes with the applicable parties, granted licenses to certain of the Company’s patents and, where applicable, provided for the withdrawal of related IPR proceedings. As a result, those parties have been dismissed from the applicable actions, and all parties participating in the IPR proceedings have withdrawn from those proceedings which have concluded. One active case remains with one utility in the consolidated Iowa litigation. On July 23, 2026, the Court in Iowa issued its suggestion of remand that the remaining case be returned in its original court in Missouri for all further proceedings. The Company expects the stay previously issued to be lifted but cannot predict the ultimate outcome of the remaining litigation or the pending appeal of the Delaware judgment.
Previous wording
We generated revenues of approximately $4,240,000 and $3,221,000 for the three months ended March 31, 2026 and 2025, respectively. Such revenues were primarily derived from sorbent product sales which were approximately $4,188,000 and $2,677,000 for three months ended March 31, 2026 and 2025, respectively. Revenues in the mercury emissions market can be dependent on natural gas prices, extreme weather, and the maintenance and downtime requirements of customer plants. The increase in revenues for product sales from the prior year was primarily due to the mix of plants running and an increased demand for coal in connection with our mercury emissions business driven by more extreme weather conditions and higher natural gas prices in the current year compared to the prior year period. Additionally, sales were recognized for the water treatment market in 2026 compared to none in the comparable period of 2025.
Current wording
We generated revenues of approximately $3,791,000 and $3,254,000 for the three months ended June 30, 2026 and 2025, respectively, and approximately $8,031,000 and $6,475,000 for the six months ended June 30, 2026 and 2025, respectively. Such revenues were primarily derived from sorbent product sales which were approximately $3,466,000 and $3,244,000 for the three months ended June 30, 2026 and 2025, respectively and approximately $7,654,000 and $5,921,000 for the six months ended June 30, 2026 and 2025, respectively. Revenues in the mercury emissions market can be dependent on natural gas prices, extreme weather, and the maintenance and downtime requirements of customer plants. The increase in revenues for product sales from the prior year was primarily due to the mix of plants running and an increased demand for coal in connection with our mercury emissions business driven by more extreme weather conditions and higher natural gas prices in the current year compared to the prior year period. Additionally, sales were recognized for the water treatment market in 2026 compared to none in the comparable period of 2025.
Previous wording
Licensing revenues were $0 and $525,000 for the three months ended March 31, 2026 and 2025, respectively. Such decrease was primarily due to a new licensing agreement entered into in the first quarter of 2025 with a utility that provided for a one time up front license fee, for which there were no comparable transactions in the first quarter of 2026.
Current wording
Licensing revenues were $0 and $0 for the three months ended June 30, 2026 and 2025, respectively and $0 and $525,000 for the six months ended June 30, 2026 and 2025, respectively. Such decrease was primarily due to a new licensing agreement entered into in the first quarter of 2025 with a utility that provided for a one time up front license fee, for which there were no comparable transactions in the first six months of 2026.
Previous wording
Other revenues, consisting of demonstrations, consulting and equipment sales, were approximately $52,000 and $19,000 for the three months ended March 31, 2026 and 2025, respectively. Other revenues have not been material in relation to total revenues.
Current wording
Other revenues, consisting of demonstrations, consulting and services revenue, and equipment sales, were approximately $324,000 and $9,000, respectively for the three months ended June 30, 2026 and 2025 and $376,000 and $28,000 for the six months ended June 30, 2026 and 2025, respectively. Other revenues have not been material in relation to total revenues.
Previous wording
Cost of sales were approximately $2,857,000 and $1,987,000 for the three months ended March 31, 2026 and 2025, respectively. The increase in cost of sales of approximately $870,000 was primarily attributable to increased product sales in the first three months of 2026 compared to the prior year period, together with a change in the mix of products sold in the first three months of 2026 compared to the prior year period.
Current wording
Cost of sales were approximately $2,758,000 and $2,286,000 for the three months ended June 30, 2026 and 2025, respectively, and approximately $5,615,000 and $4,272,000 for the six months ended June 30, 2026 and 2025, respectively. The increase in cost of sales of approximately $1,343,000 was primarily attributable to increased product sales in the first six months of 2026 compared to the prior year period, together with a change in the mix of products sold in the first six months of 2026 compared to the prior year period.
Previous wording
Gross profit was approximately $1,383,000 and $1,234,000 for the three months ended March 31, 2026 and 2025, respectively. The increase in gross profit of approximately $149,000 was primarily driven by greater product sales in the first three months of 2026. This increase was partially offset by a shift in revenue mix as licensing revenues, which typically carry higher margins, were higher in the three months ended March 31, 2025.
Current wording
Gross profit was approximately $1,033,000 and $968,000 for the three months ended June 30, 2026 and 2025, respectively, and approximately $2,415,000 and $2,202,000 for the six months ended June 30, 2026 and 2025. The increase in gross profit of approximately $213,000 was primarily driven by greater product sales in the first six months of 2026. This increase was partially offset by a shift in revenue mix as licensing revenues, which typically carry higher margins, were higher in the six months ended June 30, 2025 compared to none in the six months ended June 30, 2026.
Previous wording
Operating expenses consisted of selling, general and administrative expenses (“SG&A”) and research and development expenses (“R&D”) in 2026 and 2025. Operating expenses decreased in the three months ended March 31,2026 compared to the prior year period. SG&A expenses were approximately $1,981,000 and $2,171,000 for the three months ended March 31, 2026 and 2025, respectively. Total SG&A expenses decreased in the three months ended March 31, 2026 compared to the prior year period, as a result of variances in individual categories. This includes decreases in professional fees, along with greater stock-based compensation in the three months ended March 31, 2025 compared to the comparable period of the current year. The decrease in professional fees was primarily due to lower legal fees in 2026.
Current wording
We continue to incur significant expenses as we invest in the expansion of the water division. Operating expenses consisted of selling, general and administrative expenses (“SG&A”) and research and development expenses (“R&D”) in 2026 and 2025. Operating expenses increased in the six months ended June 30,2026 compared to the prior year period. SG&A expenses were approximately $2,068,000 and $1,698,000 for the three months ended June 30, 2026 and 2025, respectively, and approximately $4,049,000 and $3,869,000 for the six months ended June 30, 2026 and 2025, respectively. Total SG&A expenses increased in the six months ended June 30, 2026 compared to the prior year period, as a result of variances in individual categories. This includes increases in professional fees, along with greater investor relations costs in the six months ended June 30, 2026 compared to the comparable period of the previous year. The increase in professional fees was primarily due to increases legal fees in 2026 and the increase in investor relations fees was primarily due to increased costs associated with the Company’s NYSE American uplisting completed in the first quarter of 2026.
Previous wording
Total R&D expenses were approximately $551,000 and $407,000 for the three months ended March 31, 2026 and 2025, respectively. R&D expenses relate to research conducted to develop water treatment products utilizing new sorbent technologies, and increased in in the three months ended March 31, 2026 compared to the prior period as the Company did not have all of its R&D strategy implemented at the beginning of 2025. 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 $587,000 and $455,000 for the three months ended June 30, 2026 and 2025, respectively, and $1,138,000 and $862,000 for the six months ended June 30, 2026 and 2025, respectively. R&D expenses relate to research conducted to develop water treatment products utilizing new sorbent technologies, and increased in in the six months ended June 30, 2026 compared to the prior period as the Company did not have all of its R&D strategy implemented at the beginning of 2025. The Company began incurring research and development costs when the lab equipment at the Company’s labs was placed into service.
Previous wording
Loss on change in fair value of profit share liability was approximately $246,000 and loss of approximately $353,000 for the three months ended March 31, 2026 and 2025, respectively.
Current wording
Loss on change in fair value of profit share liability was approximately $257,000 and $376,000 for the three months ended June 30, 2026 and 2025, respectively, and $503,000 and $729,000 for the six months ended June 30, 2026 and 2025, respectively.
Previous wording
We had approximately $14,748,000 in cash at March 31, 2026, compared to approximately $2,245,000 at December 31, 2025. Total current assets were approximately $17,749,000 and total current liabilities were approximately $10,029,000 at March 31, 2026, resulting in working capital of approximately $7,720,000. This compares to total current assets of approximately $5,004,000 and total current liabilities of approximately $10,740,000 at December 31, 2025, resulting in a working capital deficiency of approximately $5,737,000. The increases in cash and working capital were primarily attributable to proceeds from the Company’s public offering completed in the first quarter of 2026, as described below. Our accumulated deficit was approximately $77,125,000 at March 31, 2026 compared to $75,779,000 at December 31, 2025.
Current wording
We had approximately $11,836,000 in cash at June 30, 2026, compared to approximately $2,245,000 at December 31, 2025. Total current assets were approximately $15,755,000 and total current liabilities were approximately $11,080,000 at June 30, 2026, resulting in working capital of approximately $4,675,000. This compares to total current assets of approximately $5,004,000 and total current liabilities of approximately $10,740,000 at December 31, 2025, resulting in a working capital deficiency of approximately $5,737,000. The increases in cash and working capital were primarily attributable to proceeds from the Company’s public offering completed in the first quarter of 2026, as described below. Our accumulated deficit was approximately $80,142,000 at June 30, 2026 compared to $75,779,000 at December 31, 2025.
Previous wording
Total assets were approximately $21,395,000 at March 31, 2026 versus approximately $9,238,000 at December 31, 2025. The change in total assets is primarily attributable to an approximate $12,503,000 increase in cash primarily due to the proceeds from the Company’s public offering completed in the first quarter of 2026, offset by deferred offering costs recognized in 2025 of $481,000 compared to no deferred offering costs in the first quarter of 2026, together with other changes in asset categories consisting of smaller increases and decreases that were not individually significant.
Current wording
Total assets were approximately $19,415,000 at June 30, 2026 versus approximately $9,238,000 at December 31, 2025. The change in total assets is primarily attributable to an approximate $10,177,000 increase in cash primarily due to the proceeds from the Company’s public offering completed in the first quarter of 2026, offset by deferred offering costs recognized in 2025 of $481,000 compared to no deferred offering costs in the first quarter of 2026, together with other changes in asset categories consisting of smaller increases and decreases that were not individually significant.
Previous wording
Total liabilities were approximately $10,227,000 at March 31, 2026 versus approximately $10,953,000 at December 31, 2025. The change in total liabilities is primarily attributable to an approximate $984,000 decrease in accounts payable and accrued expenses.
Current wording
Total liabilities were approximately $11,264,000 at June 30, 2026 versus approximately $10,953,000 at December 31, 2025. The change in total liabilities is primarily attributable to an approximate $503,000 increase in the profit share liability offset by an approximate $179,000 decrease in accounts payable and accrued expenses.
Previous wording
Net cash used in operating activities was approximately $2,207,000 for the three months ended March 31, 2026 compared to approximately $254,000 for the three months ended March 31, 2025. The increase in net cash used in operating activities was primarily attributable to the following: (i) changes in accounts receivable, which used approximately $133,000 of cash in 2026 compared to providing approximately $558,000 in 2025; (iii) changes in accounts payable and accrued expenses, which used approximately $984,000 in cash in 2026 compared to providing approximately $304,000 of cash in 2025; and (iv) certain other changes in operating assets and liabilities, including accrued salaries, inventory, and prepaid expenses and other assets.
Current wording
Net cash used in operating activities was approximately $4,997,000 for the six months ended June 30, 2026 compared to approximately $1,986,000 for the six months ended June 30, 2025. The increase in net cash used in operating activities was primarily attributable to the following: (i) changes in accounts receivable, which used approximately $523,000 of cash in 2026 compared to using approximately $318,000 in 2025; (iii) changes in accounts payable and accrued expenses, which used approximately $179,000 in cash in 2026 compared to providing approximately $743,000 of cash in 2025; (iv) changes in prepaid expenses which used approximately $618,000 in cash in 2026 compared to providing approximately $72,000 of cash in 2025 and (v) certain other changes in operating assets and liabilities, including accrued salaries, inventory, and prepaid expenses and other assets.
Previous wording
We had net cash used in investing activities of $0 for the three months ended March 31, 2026 compared to cash used in investing activities of approximately $14,000 for the three months ended March 31, 2025 for the purchase of lab equipment.
Current wording
We had net cash used in investing activities of $122,000 for the six months ended June 30, 2026 compared to cash used in investing activities of approximately $16,000 for the six months ended June 30, 2025 for the purchase of lab equipment.
Previous wording
Net cash provided by financing activities was $14,710,000 for the three months ended March 31, 2026 compared to no cash provided or used in financing activities for the three months ended March 31, 2025. During the three months ended March 31, 2026, we completed a public offering of 6,850,000 shares of our common stock, generating net proceeds of approximately $14,229,000.
Current wording
Net cash provided by financing activities was $14,710,000 for the six months ended June 30, 2026 compared to no cash provided or used in financing activities for the six months ended June 30, 2025. During the six months ended June 30, 2026, we completed a public offering of 6,850,000 shares of our common stock, generating net proceeds of approximately $14,229,000.
Previous wording
Our critical accounting policies and estimated are discussed in our Annual Report on Form 10-K for the year ended December 31, 2025, and there have been no material changes to such policies or estimates during the three months ended March 31, 2026.
Current wording
Our critical accounting policies and estimated are discussed in our Annual Report on Form 10-K for the year ended December 31, 2025, and there have been no material changes to such policies or estimates during the six months ended June 30, 2026.
Previous wording
The following table shows our reconciliation of net loss to adjusted EBITDA for the three months ended March 31, 2026 and 2025, respectively:
Current wording
The following table shows our reconciliation of net loss to adjusted EBITDA for the six months ended June 30, 2026 and 2025, respectively:
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The Company cannot predict the ultimate outcome of the pending appeal or IPR proceedings.