Birchtech Corp. 10-Q: Assets $96M, Liabilities $94M

TL;DR

Birchtech Corp. 10-Q: Assets $96.1M, Liabilities $94.3M. Tight margins.

AI Summary

Birchtech Corp. filed its 10-Q for the period ending September 30, 2024. The company reported total assets of $96,178,153 and total liabilities of $94,360,107. Birchtech Corp. was formerly known as Midwest Energy Emissions Corp. and has undergone several name changes since its inception.

Why It Matters

This filing provides a snapshot of Birchtech Corp.'s financial health as of Q3 2024, detailing its asset and liability positions, which are crucial for investors and creditors to assess solvency and operational standing.

Risk Assessment

Risk Level: medium — The company has a significant amount of liabilities relative to its assets, indicating potential financial strain.

Key Numbers

• $96.18B — Total Assets (As of September 30, 2024, indicating the company's total resources.)
• $94.36B — Total Liabilities (As of September 30, 2024, representing the company's total obligations.)
• $1.82M — Net Assets (Calculated as Total Assets - Total Liabilities, showing a small positive equity.)

Key Players & Entities

• Birchtech Corp. (company) — Filer of the 10-Q
• Midwest Energy Emissions Corp. (company) — Former name of Birchtech Corp.
• $96,178,153 (dollar_amount) — Total assets as of September 30, 2024
• $94,360,107 (dollar_amount) — Total liabilities as of September 30, 2024
• 2024-09-30 (date) — End of the reporting period

FAQ

Key Financial Figures

• $269,467 — ministrative expenses (related party of $269,467, $137,967, $635,864 and $379,634) ( 2,
• $137,967 — ve expenses (related party of $269,467, $137,967, $635,864 and $379,634) ( 2,702,350 )
• $635,864 — s (related party of $269,467, $137,967, $635,864 and $379,634) ( 2,702,350 ) ( 2,459,
• $379,634 — rty of $269,467, $137,967, $635,864 and $379,634) ( 2,702,350 ) ( 2,459,229 ) ( 10,
• $342,647 — nterest expense (related party of $Nil, $342,647, $245,817 and $1,017,671) ( 7,356 )
• $245,817 — pense (related party of $Nil, $342,647, $245,817 and $1,017,671) ( 7,356 ) ( 344,193
• $1,017,671 — d party of $Nil, $342,647, $245,817 and $1,017,671) ( 7,356 ) ( 344,193 ) ( 258,990 )

Filing Documents

• meec_10q.htm (10-Q) — 1084KB
• meec_ex311.htm (EX-31.1) — 12KB
• meec_ex312.htm (EX-31.2) — 12KB
• meec_ex321.htm (EX-32.1) — 4KB
• meec_ex322.htm (EX-32.2) — 4KB
• 0001477932-24-007130.txt ( ) — 5471KB
• meec-20240930.xsd (EX-101.SCH) — 61KB
• meec-20240930_lab.xml (EX-101.LAB) — 305KB
• meec-20240930_cal.xml (EX-101.CAL) — 46KB
• meec-20240930_pre.xml (EX-101.PRE) — 257KB
• meec-20240930_def.xml (EX-101.DEF) — 143KB
• meec_10q_htm.xml (XML) — 908KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements. 4 Condensed Consolidated Balance Sheets as of September 30, 2024 (Unaudited) and December 31, 2023 4 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 5 Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 6 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 (Unaudited) 8 Notes to Condensed Consolidated Financial Statements (Unaudited) 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations. 28 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 35 Item 4.

Controls and Procedures

Controls and Procedures.

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1. Legal Proceedings. 36 Item 1A. Risk Factors. 36 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 36 Item 3. Default upon Senior Securities. 36 Item 4. Mine Safety Disclosures. 36 Item 5. Other Information. 36 Item 6. Exhibits. 37

SIGNATURES

SIGNATURES 38 2 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains "forward-looking statements," as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and reflect our current expectations regarding our future growth, results of operations, cash flows, performance and business prospects, and opportunities, as well as assumptions made by, and information currently available to, our management. 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. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such risks include, without limitation, the following: the loss of major customers; dependence on availability and retention of key suppliers; changes, or lack of changes, in environmental regulations; risks related to advancements in technologies; lack of diversification in the Company's business; risks related to intellectual property, including the ability to protect intellectual property and the success of any patent litigation; competition risks; changes in demand for coal as a fuel source for electricity production; ability to retain key personnel; absence of a liquid public market for our common stock; share price volatility; the potential that dividends may never be declared; and other factors discussed under the caption " Risk Factors " in the Company's 2023 Form 10-K. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statem

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. BIRCHTECH CORP. AND SUBSIDIARIES (formerly Midwest Energy Emissions Corp.) CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2024 (Unaudited) December 31, 2023 ASSETS Current assets Cash $ 4,393,872 $ 20,939,762 Accounts receivable 1,930,396 2,233,211 Income tax receivable 144,465 - Inventory 886,412 795,164 Prepaid expenses and other assets 235,562 183,621 Total current assets 7,590,707 24,151,758 Security deposits 5,115 5,175 Property and equipment, net 2,289,823 1,595,958 Right of use asset - operating lease 218,602 10,639 Intellectual property, net 1,550,613 1,704,063 Total assets $ 11,654,860 $ 27,467,593 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities Accounts payable and accrued expenses (related party $ 191,737 and $ 107,454 at September 30, 2024 and December 31, 2023, respectively) $ 3,127,368 $ 1,558,450 Income tax payable 87,734 437,821 Current portion of operating lease liability 31,990 11,157 Customer credits 167,000 167,000 Accrued salaries 572,678 8,936 Total current liabilities 3,986,770 2,183,364 Operating lease liability, net of current portion 187,170 - Secured note payable, net of discount – related party - 239,466 Unsecured note payable, net of discount and issuance costs – related party - 10,979,723 Profit share liability – related party 5,567,046 14,847,937 Total liabilities 9,740,986 28,250,490 Commitments and contingencies Stockholders' Equity (deficit) Preferred stock, $ 0.001 par value: 2,000,000 shares authorized, no shares issued - - Common stock, $ 0.001 par value; 150,000,000 shares authorized 96,178,153 and 94,360,107 shares issued and outstanding as of September 30, 2024 and December 31, 2023 respectively. 96,178 94,360 Additional paid-in capital 73,800,621 61,917,119 Accumulated deficit ( 71,982,925 ) ( 62,794,376 ) Total

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