NYSE:BCHT
Birchtech Corp.
A NYSE-traded technology company showing significant revenue contraction and net losses over the last three years.
Key Metrics
Investment Thesis
Bull Case
An investor might consider the stock if they believe the company will utilize its substantial paid-in capital to pivot to a profitable model or sell assets to address the liquidity crisis.
Bear Case
The stock is highly risky due to deteriorating financials with three consecutive years of negative net income trends, severe liquidity constraints indicated by high current liabilities, and an inability to generate positive operating cash flow.
About Birchtech Corp.
Birchtech Corp. operates within the technology sector with revenues of $17.4M in 2024, though specific product lines and markets are not detailed in this dataset.
Analysis
Management Discussion
Management has failed to stabilize operations as operating profit turned negative at -$7.2M, net income plummeted to -$10.8M after a profitable 2023, and financing activities drained $12.6M in cash while investing outflows totaled $809k.
Industry Overview
Birchtech operates in a competitive environment where revenue stability is crucial, yet the company has struggled to maintain growth compared to peers who typically show consistent year-over-year expansion rather than declining sales.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $21.6M | $17.9M | $17.4M |
| Cost of Revenue | $14.6M | $12.2M | $10.3M |
| Gross Profit | $6.1M | $5.8M | $7.1M |
| Operating Expenses | $7.7M | $14.4M | $14.3M |
| Operating Income | $-1.6M | $-8.7M | $-7.2M |
| G&A | $6.1M | $14.2M | $14.2M |
| Stock-Based Comp | $408.0K | $33.8K | $1.1M |
| D&A | $11.7K | $12.9K | $11.7K |
| Depreciation | $11.7K | $12.9K | $11.7K |
| Amortization | — | — | $204.6K |
| Other OpEx | $1.5M | $219.7K | $43.0K |
| Non-Operating Income | $0 | $15.0M | $-3.9M |
| Interest Expense | $1.6M | $1.4M | $267.5K |
| Interest Income | — | — | $293.5K |
| Pre-Tax Income | $-1.6M | $6.4M | $-11.1M |
| Income Tax | $18.0K | $473.2K | $-289.2K |
| Continuing Ops | $-1.6M | $5.9M | $-10.8M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-1.6M | $5.9M | $-10.8M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-1.6M | $5.9M | $-10.8M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $5.5M | $24.2M | $6.1M |
| Cash & Equivalents | $1.5M | $20.9M | — |
| Accounts Receivable | $2.8M | $2.2M | $1.8M |
| Inventory | $991.1K | $795.2K | $621.8K |
| Prepaid Expenses | $267.4K | $183.6K | $198.2K |
| Other Current Assets | $0 | $0 | $3.5M |
| Long-Term Assets | $3.8M | $3.3M | $4.2M |
| PP&E (Net) | $1.8M | $1.6M | $2.4M |
| Operating Leases | $51.6K | $10.6K | $305.1K |
| Other LT Assets | $1.9M | $1.7M | $1.5M |
| Total Assets | $9.3M | $27.5M | $10.3M |
| Current Liabilities | $3.2M | $2.2M | $8.8M |
| Current Leases | $43.3K | $11.2K | $42.7K |
| Other Current Liab | $3.2M | $2.2M | $8.8M |
| Long-Term Liabilities | $13.5M | $26.1M | $263.5K |
| LT Operating Leases | — | — | $263.5K |
| Other LT Liab | — | — | $0 |
| Total Liabilities | $16.8M | $28.3M | $9.1M |
| Shareholders' Equity | $-7.4M | $-782.9K | $1.2M |
| Paid-In Capital | $61.2M | $61.9M | $73.8M |
| Retained Earnings | $-68.7M | $-62.8M | $-72.8M |
| Total L&E | $9.3M | $27.5M | $10.3M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-1.6M | $5.9M | $-10.8M |
| Non-Cash Adjustments | $3.2M | $13.5M | $8.5M |
| Working Capital Changes | $-1.6M | $-164.8K | $-1.8M |
| Cash from Operations | $71.0K | $19.2M | $-4.1M |
| Capital Expenditures | $10.7K | $0 | $809.4K |
| Cash from Investing | $-10.7K | $0 | $-809.4K |
| Cash from Financing | $55.7K | $209.5K | $-12.6M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $115.9K | $19.4M | $-17.5M |
| Beginning Cash | $1.4M | $1.5M | $20.9M |
| Ending Cash | $1.5M | $20.9M | $3.5M |
Frequently Asked Questions
How does Birchtech Corp. make money?
Based on the financial structure, revenue appears to stem from a single core operating segment with general and administrative expenses of $14.2M driving costs, alongside specific non-operating income such as interest income of $293.5K.
What are the main risks for BCHT?
Significant cash burn with net change in cash of -$17.5M, deepening accumulated deficit of -$72.8M, current liabilities ($8.8M) exceeding current assets ($6.1M), and a sharp decline in revenue from $21.6M in 2022 to $17.4M in 2024.
What is BCHT's competitive advantage?
The company maintains a paid-in capital base of $73.8M which may provide funding flexibility, and has managed to generate positive interest coverage with interest income exceeding interest expense.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.