Birchtech Reports Fourth Quarter 2024 Financial Results
Birchtech (TSX: BCHT) reported Q4 2024 financial results with revenues of $5.6 million, up 37% year-over-year, driven by increased licensing revenues. The company achieved a 60% gross margin, with gross profit rising 230% to $3.3 million.
Key highlights include a pending $57 million patent infringement verdict, with counsel requesting $160 million including enhancements. Management provided 2025 revenue guidance of at least $23 million for the air business, with expectations to reach a $40 million annual run-rate by end of 2026.
The company launched a new water purification business with two laboratory design centers and secured an agreement to purchase 2,000 tons of feedstock annually, potentially generating $7 million in annual sales starting mid-2025. Q4 2024 resulted in a net loss of $1.3 million ($0.01 per share), with cash balance of $3.5 million and no debt as of December 31, 2024.
Birchtech (TSX: BCHT) ha riportato i risultati finanziari del Q4 2024 con ricavi di $5,6 milioni, in aumento del 37% rispetto all'anno precedente, grazie all'aumento dei ricavi da licenze. L'azienda ha raggiunto un margine lordo del 60%, con un profitto lordo che è aumentato del 230% a $3,3 milioni.
Tra i punti salienti vi è un verdetto pendente per violazione di brevetto di $57 milioni, con l'avvocato che richiede $160 milioni inclusi i miglioramenti. La direzione ha fornito una previsione di ricavi per il 2025 di almeno $23 milioni per il settore aereo, con aspettative di raggiungere un tasso annuo di $40 milioni entro la fine del 2026.
L'azienda ha lanciato una nuova attività di purificazione dell'acqua con due centri di progettazione di laboratori e ha assicurato un accordo per acquistare 2.000 tonnellate di materia prima all'anno, generando potenzialmente $7 milioni di vendite annuali a partire dalla metà del 2025. Il Q4 2024 ha registrato una perdita netta di $1,3 milioni ($0,01 per azione), con un saldo di cassa di $3,5 milioni e nessun debito al 31 dicembre 2024.
Birchtech (TSX: BCHT) reportó los resultados financieros del Q4 2024 con ingresos de $5.6 millones, un aumento del 37% interanual, impulsado por el aumento de ingresos por licencias. La compañía logró un margen bruto del 60%, con un beneficio bruto que aumentó un 230% a $3.3 millones.
Los aspectos clave incluyen un veredicto pendiente por infracción de patente de $57 millones, con el abogado solicitando $160 millones incluyendo mejoras. La dirección proporcionó una guía de ingresos para 2025 de al menos $23 millones para el negocio aéreo, con expectativas de alcanzar un ritmo anual de $40 millones para finales de 2026.
La compañía lanzó un nuevo negocio de purificación de agua con dos centros de diseño de laboratorios y aseguró un acuerdo para comprar 2,000 toneladas de materia prima anualmente, lo que podría generar $7 millones en ventas anuales a partir de mediados de 2025. El Q4 2024 resultó en una pérdida neta de $1.3 millones ($0.01 por acción), con un saldo de efectivo de $3.5 millones y sin deudas al 31 de diciembre de 2024.
Birchtech (TSX: BCHT)는 2024년 4분기 재무 결과를 보고하며 수익이 $5.6 백만으로 전년 대비 37% 증가했다고 발표했습니다. 이는 라이센스 수익 증가에 힘입은 것입니다. 회사는 60%의 총 이익률을 달성했으며, 총 이익은 230% 증가하여 $3.3 백만에 달했습니다.
주요 하이라이트로는 $57 백만의 특허 침해 판결이 보류 중이며, 변호사가 $160 백만을 요청하고 있습니다. 경영진은 2025년 항공 사업을 위한 수익 가이드를 최소 $23 백만으로 제시하며, 2026년 말까지 연간 $40 백만의 실행 속도에 도달할 것으로 예상하고 있습니다.
회사는 두 개의 실험실 설계 센터와 함께 새로운 수처리 사업을 시작했으며, 매년 2,000톤의 원료를 구매하는 계약을 체결하여 2025년 중반부터 연간 $7 백만의 판매를 생성할 가능성이 있습니다. 2024년 4분기는 $1.3 백만 ($0.01 per 주식)의 순손실을 기록했으며, 2024년 12월 31일 기준으로 현금 잔고는 $3.5 백만이고 부채는 없습니다.
Birchtech (TSX: BCHT) a annoncé les résultats financiers du 4ème trimestre 2024 avec des revenus de $5,6 millions, en hausse de 37 % par rapport à l'année précédente, grâce à l'augmentation des revenus de licences. L'entreprise a atteint une marge brute de 60%, avec un bénéfice brut en hausse de 230% à $3,3 millions.
Les points clés incluent un verdict en attente pour violation de brevet de $57 millions, l'avocat demandant $160 millions y compris des améliorations. La direction a fourni une prévision de revenus pour 2025 d'au moins $23 millions pour le secteur aérien, avec des attentes d'atteindre un rythme annuel de $40 millions d'ici fin 2026.
L'entreprise a lancé une nouvelle activité de purification de l'eau avec deux centres de conception de laboratoires et a sécurisé un accord pour acheter 2 000 tonnes de matière première par an, générant potentiellement $7 millions de ventes annuelles à partir de la mi-2025. Le 4ème trimestre 2024 a entraîné une perte nette de $1,3 million ($0,01 par action), avec un solde de trésorerie de $3,5 millions et aucune dette au 31 décembre 2024.
Birchtech (TSX: BCHT) hat die Finanzzahlen für das 4. Quartal 2024 veröffentlicht, mit Einnahmen von $5,6 Millionen, was einem Anstieg von 37% im Vergleich zum Vorjahr entspricht, bedingt durch gestiegene Lizenzgebühren. Das Unternehmen erzielte eine Bruttomarge von 60%, wobei der Bruttogewinn um 230% auf $3,3 Millionen stieg.
Zu den wichtigsten Punkten gehört ein ausstehendes Urteil über Patentverletzung in Höhe von $57 Millionen, wobei der Anwalt $160 Millionen einschließlich Verbesserungen fordert. Das Management gab eine Umsatzprognose für 2025 von mindestens $23 Millionen für das Luftgeschäft ab, mit der Erwartung, bis Ende 2026 eine jährliche Rate von $40 Millionen zu erreichen.
Das Unternehmen hat ein neues Geschäft zur Wasseraufbereitung mit zwei Labor-Designzentren gestartet und einen Vertrag über den Kauf von jährlich 2.000 Tonnen Rohmaterial gesichert, was ab Mitte 2025 voraussichtlich $7 Millionen an Jahresumsatz generieren könnte. Im 4. Quartal 2024 ergab sich ein Nettoverlust von $1,3 Millionen ($0,01 pro Aktie), mit einem Kassenbestand von $3,5 Millionen und ohne Schulden zum 31. Dezember 2024.
- Revenue increased 37% YoY to $5.6 million in Q4 2024
- Gross margin improved significantly to 60% from 25% YoY
- Potential $160 million settlement from patent infringement case
- New water purification business launch with $7 million potential annual revenue
- Debt-free balance sheet with $3.5 million cash position
- Strong 2025 guidance of $23 million for air business
- Net loss of $1.3 million in Q4 2024 compared to $9.0 million profit year ago
- Negative Adjusted EBITDA of $0.2 million vs $20.8 million in Q4 2023
- Product sales declined in Q4 2024
Company Drives Fourth Quarter 2024 Revenues of
CORSICANA, Texas, March 31, 2025 (GLOBE NEWSWIRE) -- Birchtech Corp. (TSX: BCHT) (OTCQB: BCHT) ("Birchtech" or the "Company"), a leader in specialty activated carbon technologies for sustainable air and water treatment, has reported financial results for the fourth quarter and year ended December 31, 2024.
Key Fourth Quarter 2024 & Subsequent Operational Highlights
- Pending final judgement following the
$57 million patent infringement verdict, from which the Company’s counsel requested$160 million inclusive of enhancements, interest and legal fees. - Management provided guidance of revenues of at least
$23 million in 2025, excluding potential cash received from IP defense as well as revenues in new water purification technologies. - Air business annual revenue run-rate expected to be at least
$40 million by the end of 2026. - Launched new water purification business with the opening of two new laboratory “design centers” located in Grand Forks, North Dakota, and State College, Pennsylvania, for analytical testing and carbon development.
- Signed agreement to purchase up to 2,000 tons of feedstock annually to be used for treatment of drinking water, with the potential to generate an estimated
$7 million annually in product sales for Birchtech expected to start mid-2025. - Secured non-exclusive agreement with a second coal-fired power utility named as a defendant in the Company’s lawsuit previously announced on July 30, 2024.
- Filed a patent infringement lawsuit against Evergy, a major power utility company in the Midwest. The lawsuit has been transferred to the U.S. District Court for the Southern District of Iowa and consolidated with other lawsuits previously announced on July 30, 2024.
- Added Mitzi H. Coogler, CPA, to the Board of Directors, a certified public accountant with and accounting practice specializing in management support and guidance for closely held businesses.
- Announced corporate name change to "Birchtech" and stock symbol change to BCHT concurrent with an uplisting to the TSX.
Management Commentary
"The fourth quarter of 2024 was highlighted by the launch of our new water purification business and the accelerating pace of wins in our core air business line,” said Richard MacPherson, CEO of Birchtech Corp. “Our air business drove robust revenues of
"Most recently we announced a patent infringement lawsuit against Evergy, a major power utility company in the Midwest, and a non-exclusive agreement with a second coal-fired power utility named as a defendant in a lawsuit filed in mid-2024. Our outreach across the power industry continues, including ongoing discussions with other defendants named in our recent lawsuits in our efforts to establish positive business relationships. We expect to see additional license agreements and/or supply contracts with many of these utilities, and an increasing market share due to our patent defense and business first approach. Financially, we believe our air business will generate at least
“During the quarter we announced the formal launch of our water purification business with the opening of two new design centers, located in Grand Forks, North Dakota, and in State College, Pennsylvania. Our water business is focused on pioneering sustainable potable water treatment to meet today’s environmental challenges and future demands. With U.S. water utilities facing more than
“Operationally, with our business growing to become a multi-faceted environmental technology firm and strong experience and competencies in multiple sectors, we rebranded our corporate name to ‘Birchtech’. Subsequently, we graduated to the main board in Canada with a move onto the Toronto Stock Exchange, one of the most prominent exchanges in North America. We were also privileged to elect Mitzi H. Coogler, CPA, to the Board of Directors. Mitzi's vast experience in finance and accounting makes her a strong addition to our Board that will serve us well as we enter an exciting new phase of growth and development, including the expectation to pursue a listing onto a major U.S. exchange during 2025.
“Looking ahead, we expect an accelerating pace of revenue growth, continued IP wins and associated cash receipts, strong positive momentum from our current customers under contract, and multiple opportunities to scale our new water business. In tandem, with the recent repayment of our debt to our primary financial partner, we believe that we are in a stable, strong financial position in support of our launch into the water treatment market in the near term. We look forward to additional announcements in the months to come as we seek to drive sustainable, long-term value for our fellow shareholders,” concluded MacPherson.
Fourth Quarter 2024 Financial Results
Revenue for the fourth quarter of 2024 increased
Gross profit increased
Operating expenses totaled
Net loss for the fourth quarter of 2024 was
Adjusted EBITDA, a non-GAAP measure, totaled (
Cash as of December 31, 2024 totaled
Fourth Quarter 2024 Earnings Conference Call
Management will host an investor conference call at 5:00 p.m. Eastern time today, March 31, 2025, to discuss Birchtech's fourth quarter 2024 financial results, provide a corporate update and conclude with a question-and-answer session for telephone participants. To participate, please use the following information:
Date: Monday, March 31, 2025
Time: 5:00 p.m. Eastern time
U.S./Canada Dial-in: 1-877-407-0792
International Dial-in: 1-201-689-8263
Conference ID: 13752325
Webcast: BCHT Q4 2024 Earnings Conference Call
Please dial in at least 10 minutes before the start of the call to ensure timely participation.
A telephone playback of the call will be available through Thursday, May 1, 2025. To listen, call 1-844-512-2921 within the United States and Canada or 1-412-317-6671 when calling internationally, using replay pin number 13752325. A webcast replay will also be available for one year, using the webcast link above.
About Birchtech Corp.
Birchtech Corp. (TSX: BCHT) (OTCQB: BCHT) is a leader in specialty activated carbon technologies, serving as America’s clean coal and clean water Company by delivering innovative solutions for air and water purification to support a cleaner, more sustainable future. The Company provides patented SEA® sorbent technologies for mercury emissions capture for the coal-fired utility sector and is developing disruptive water purification technologies with a specialization on forever chemicals such as PFAS and PFOS. Backed by a strong intellectual property portfolio and a world-class team of activated carbon experts, Birchtech provides cleaner air to North American communities and is applying this expertise to a novel approach in water purification. To learn more, please visit www.birchtech.com.
Non-GAAP Financial Measures
To supplement our consolidated financial statements presented in accordance with GAAP and to provide investors with additional information regarding our financial results, we consider and are including herein Adjusted EBITDA, a Non-GAAP financial measure. We view Adjusted EBITDA as an operating performance measure and, as such, we believe that the GAAP financial measure most directly comparable to it is net income (loss). We define Adjusted EBITDA as net income adjusted for interest and financing fees, income taxes, depreciation, amortization, stock-based compensation, and other non-cash income and expenses. We believe that Adjusted EBITDA provides us an important measure of operating performance because it allows management, investors, debtholders and others to evaluate and compare ongoing operating results from period to period by removing the impact of our asset base, any asset disposals or impairments, stock based compensation and other non-cash income and expense items associated with our reliance on issuing equity-linked debt securities to fund our working capital.
Our use of Adjusted EBITDA has limitations as an analytical tool, and this measure should not be considered in isolation or as a substitute for an analysis of our results as reported under GAAP, as the excluded items may have significant effects on our operating results and financial condition. Additionally, our measure of Adjusted EBITDA may differ from other companies’ measure of Adjusted EBITDA. When evaluating our performance, Adjusted EBITDA should be considered with other financial performance measures, including various cash flow metrics, net income and other GAAP results. In the future, we may disclose different non-GAAP financial measures in order to help our investors and others more meaningfully evaluate and compare our future results of operations to our previously reported results of operations.
The following table shows our reconciliation of net income (loss) to adjusted EBITDA for the fourth quarters ended December 31, 2024 and 2023, respectively:
| For the Quarter Ended | |||||||||
| December 31, 2024 | December 31, 2023 | ||||||||
| (In thousands) | |||||||||
| Net income (loss) | $ | (1,343 | ) | $ | 8,961 | ||||
| Non-GAAP adjustments: | |||||||||
| Depreciation and amortization | 63 | 64 | |||||||
| Interest | 8 | 343 | |||||||
| Change in fair value of profit share | 1,287 | 10,597 | |||||||
| Impairment of property and equipment | 43 | 220 | |||||||
| Income Taxes | (289 | ) | 473 | ||||||
| Stock based compensation | 48 | 130 | |||||||
| Adjusted EBITDA | $ | (183 | ) | 20,788 | |||||
Safe Harbor Statement
With the exception of historical information contained in this press release, content herein may contain "forward-looking statements" that are made pursuant to the Safe Harbor Provisions of the U.S. Private Securities Litigation Reform Act of 1995 or forward-looking information under applicable Canadian securities laws (collectively, "forward-looking statements"). Forward-looking statements are generally identified by using words such as "anticipate," "believe," "plan," "expect," "intend," "will," and similar expressions, but these words are not the exclusive means of identifying forward-looking statements. Forward-looking statements in this release include statements relating to expected developments and growth in Birchtech’s business, as well as any revenue guidance provided. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Investors are cautioned that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the statements made. In addition, this release contains time-sensitive information that reflects management’s best analysis only as of the date of this release. Birchtech does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release. Further information concerning issues that could materially affect financial performance or other forward-looking statements contained in this release can be found in Birchtech’s periodic filings with the Securities and Exchange Commission or Canadian securities regulators.
Investor Relations Contact:
Lucas A. Zimmerman
Managing Director
MZ Group - MZ North America
(949) 259-4987
BCHT@mzgroup.us
www.mzgroup.us
FAQ
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