Birchtech Corp. Segments Disclosure
Note 14 – Segment and Geographic Information
The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer (the “CEO”). The Company is a provider of specialty activated carbon technologies and, at December 31, 2025 and 2024, had one operating segment, which entails the provision of specialty activated carbon technologies for air and water purification in the United States.
There are no segment managers who are held accountable for operations, operating results or plans for levels or components below the consolidated unit level. Accordingly, management has determined that the Company has a single operating and reportable segment. The accounting policies related to operating and reportable segments are the same as those described in Note 3, “Basis of Presentation and Summary of Significant Accounting Policies”. The primary measure of segment profit or loss is consolidated net income as presented below and is used the by CEO for the purpose of evaluating segment performance and allocation of budget to support business expansion, new product development and operational efficiencies.
|
| 2025 |
|
| 2024 |
| ||
Material sales |
| $ | 14,233,056 |
|
| $ | 14,481,784 |
|
License fees |
|
| 3,159,375 |
|
|
| 2,808,125 |
|
Other revenues |
|
| 233,935 |
|
|
| 116,276 |
|
Total revenues |
|
| 17,626,366 |
|
|
| 17,406,185 |
|
|
|
|
|
|
|
|
|
|
Material costs |
|
| (7,689,298 | ) |
|
| (7,686,447 | ) |
Blending and milling |
|
| (360,680 | ) |
|
| (377,598 | ) |
Shipping |
|
| (1,092,297 | ) |
|
| (1,081,781 | ) |
Other cost of goods sold |
|
| (632,438 | ) |
|
| (700,279 | ) |
Compensation and benefits |
|
| (4,901,122 | ) |
|
| (6,148,100 | ) |
Stock-based compensation |
|
| (119,238 | ) |
|
| (1,088,922 | ) |
Amortization and depreciation |
|
| (388,297 | ) |
|
| (248,084 | ) |
Consulting fees |
|
| (1,362,900 | ) |
|
| (879,800 | ) |
Professional fees |
|
| (2,760,998 | ) |
|
| (4,722,313 | ) |
General and administrative |
|
| (1,058,436 | ) |
|
| (1,588,129 | ) |
Change in fair value of profit share |
|
| 5,926 |
|
|
| (3,959,065 | ) |
Interest expense |
|
| (13,673 | ) |
|
| (267,458 | ) |
Impairment loss |
|
| (50,000 | ) |
|
| (43,000 | ) |
Tax benefit (expense) |
|
| (96,963 | ) |
|
| 289,156 |
|
Research & development |
|
| (210,542 | ) |
|
| - |
|
Bad debt expense |
|
| (3,520 | ) |
|
| - |
|
Interest income |
|
| 82,103 |
|
|
| 293,524 |
|
Segment net (loss) income |
|
| (3,026,007 | ) |
|
| (10,802,111 | ) |
Reconciliation of profit or loss |
|
|
|
|
|
|
|
|
Adjustments and reconciling items |
|
| - |
|
|
| - |
|
|
|
|
|
|
|
|
|
|
Consolidated net (loss) income |
| $ | (3,026,007 | ) |
| $ | (10,802,111 | ) |
The segment assets are not reviewed by the CODM at a different asset level or category and is reviewed at the consolidated level.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.