Birchtech (BCHT) risk factors, FY2024 10-K

Risks Related to Our Company

1. 01Demand for our mercury emissions services and products is largely driven by coal consumption by North American electricity power generating plants. Any significant changes that diminish the use of coal as a primary fuel source for electricity production may adversely affect our business
2. 02The risks associated with technological change may make our products and services less marketable
3. 03Our industry is highly competitive. If we are unable to compete effectively with competitors having greater resources than we do, our financial results could be adversely affected
4. 04We may not be able to successfully protect our intellectual property rights
5. 05We may not be successful in patent litigation
6. 06We depend on third-party suppliers for materials needed to implement our technologies; availability of raw materials and volatility in price could impact our results of operations
7. 07We are dependent on key customers. A significant adverse change in such relationships could adversely impact our results of operations and financial condition
8. 08We rely on a small number of key employees. The loss of more than one of these employees could disrupt our operations and future growth
9. 09Our lack of diversification increases the risk of an investment in the Company
10. 10Low gas prices can negatively impact our results of operations; mild weather could also have corresponding effects on the demand for coal
11. 11Our insurance coverage may not be adequate to protect us from all business risks
12. 12Litigation resulting from disputes with customers may result in substantial costs, liabilities, and loss of revenues
13. 13Revenues are generated under contracts or blanket purchase orders that must be renegotiated periodically
14. 14Business interruptions could significantly disrupt our operations and could have a material adverse impact on us
15. 15Any disruptions to our information technology systems or breaches of our network security could interrupt our operations, compromise our reputation, and expose us to and costly response measures and could have a material adverse effect on our business operations
16. 16Maintaining and improving our financial controls may divert management’s attention and increase costs
17. 17Liquidity risk could impair our ability to fund operations and jeopardize our financial condition
18. 18Discretion in the use of available funds
19. 19Possible inability to continue as a going concern
20. 20Our board of directors concluded in 2025 that we needed to restate previously issued financial statements as a result of a change in accounting for a certain license agreement

Risks Related to Regulation

1. 21Any significant changes in environmental regulations related to mercury emissions and potable water treatment could have a major impact on us
2. 22Since being enacted, the MATS Rule has been subject to legal challenges which may continue
3. 23The results of the 2024 United States presidential election has created regulatory uncertainty
4. 24Uncertainty of and variability in international environmental regulations could restrict our ability to expand outside of the United States
5. 25There is a limited trading market for our common stock
6. 26Our stock price may be volatile, which could result in substantial losses to investors and litigation
7. 27changes in general market, economic and political conditions in the United States, and global economies or financial markets, including those resulting from natural or man-made disasters
8. 28Shares eligible for future sale may have adverse effects on our share price
9. 29We do not anticipate paying any cash dividends on our capital stock in the foreseeable future
10. 30We may need additional capital in the future, which may not be available on acceptable terms or at all, to continue investing in our business and to finance acquisitions and other strategic transactions
11. 31Our officers and directors are entitled to indemnification from us for liabilities under our articles of incorporation, which could be costly to us and may discourage the exercise of stockholder rights
12. 32If a “penny stock” is sold to the investor in a fraudulent manner, the investor may be able to sue the persons and firms that committed the fraud for damages
13. 33If we cannot continue to satisfy the continued listing requirements, of the TSX, our securities may be delisted from the TSX, which could negatively impact the price of our securities and your ability to sell them
14. 34Potential future sales pursuant to Rule 144