Birchtech Corp. (formerly Midwest Energy Emissions Corp.) reported significant financial changes in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a decline in revenue, with total revenues for the third quarter at approximately $5.2 million, down from $6.7 million in the same period last year. For the nine months ended September 30, 2024, revenues totaled approximately $12.2 million, compared to $13.9 million for the same period in 2023. The decrease in revenue was primarily attributed to a drop in product sales, which fell to $5.1 million from $6.7 million year-over-year.

Despite the revenue decline, the company reported a net loss of $470,236 for the third quarter of 2024, an improvement from a net loss of $828,000 in the same quarter of 2023. However, the nine-month net loss increased significantly to $9.2 million from $3.0 million in the prior year, indicating ongoing challenges in profitability. The operating loss for the nine months ended September 30, 2024, was $(6.8 million), compared to $(1.4 million) for the same period in 2023.

The company’s cash position has also deteriorated, with cash decreasing to approximately $4.4 million as of September 30, 2024, down from $20.9 million at the end of 2023. Total current assets fell to $7.6 million from $24.2 million, while total liabilities increased to $9.7 million from $28.3 million. The accumulated deficit rose to approximately $72.0 million, up from $62.8 million at the end of 2023.

Strategically, Birchtech has undergone significant restructuring, including a Debt Restructuring Agreement with AC Midwest Energy LLC, which involved the repayment of $9.0 million to reduce outstanding principal and the issuance of a new unsecured note. The company also recorded a capital contribution of $11.8 million related to the fair value of a restructured profit share.

In terms of operational developments, Birchtech is focusing on expanding its market presence in environmental services, particularly in mercury emissions reduction technologies. The company has initiated several patent infringement lawsuits against coal-fired power utilities and has entered into licensing agreements to enhance its revenue streams. Additionally, the company has opened new laboratories in North Dakota and Pennsylvania to support its growth in drinking water treatment and wastewater remediation technologies.

Overall, while Birchtech Corp. is navigating through financial challenges, it is actively pursuing strategic initiatives to bolster its market position and operational capabilities.