Birchtech Corp. Noble Capital Markets Virtual Equity Investor Conference

Mr. McPherson. Thank you very much, Richard.

Folks, thanks so much for joining us today. We'll take a quick run through the deck as presented. It'll be available online as well post-presentation. I will also jump into a couple of other topics that we're working on in order to add some up-to-date color. My assistant, Stacy, will be handling the slide deck for us today. Stacy, if you don't mind, we'll move on to the forward-looking statements. As shown here on the screen, folks, if you would take the time to read that, because we'll make some financial statements as we go through the presentation. Very much appreciate it. Now we'll move on with the presentation itself. As an overview of Birchtech, we are an activated carbon technology company, and we've been providing consulting services both in the air and water business for the past 16, 17 years.

We have always worked on the mercury removal from coal fire power plants. About 3 years ago, we started to shift 90% of our efforts into becoming a clean water tech company, and we've made huge strides in that, moving forward, both on the drinking water side of things as well as water remediation from wastewaters. In general, we have in Q2, for example, a $3.8 million revenue base. We also have a final judgment from a previous lawsuit outstanding due to us of $78 million plus. We expect to be able to collect those monies sometime in 2027 and are waiting for the defendant's appeal to run out before we start in earnest on the collection of those. We have an approximate $12 million balance sheet at this time, and we have zero debt as a company. We have a good run rate going forward.

We don't need to raise capital. Once we move into the water program early in 2027, which I'll expand on, our base business, our core air business, will be profitable. We don't expect to have to lean on that to continue to grow the water business as we have been these past 3 years once our new facility is up and running in the first quarter of 2027. As I mentioned earlier, on the air side, all of the challenges to our patents have been terminated, which leaves us also in a position where we'll be moving forward to try to settle out our differences with the Ameren Corporation, which we are scheduled to go to trial with most likely in early 2027. The judge has yet to set the actual trial date.

We expect that will be set in the coming week or two, and we'll move forward with that as necessary. Our hope, however, is that we'll be able to become a partner and supplier to Ameren rather than have to go through the trial process, which is pending. On the clean water side, we've been extremely busy these past three years, starting with the construction and operation of our analytical lab in North Dakota, which has been extremely busy of late. Also through our large-scale pilot project that we have in Pennsylvania, which has been a product development center for us and also has given us the opportunity to work directly with engineers and their clients in the evaluation and strategic planning necessary for their clients to meet the upcoming PFOA and PFOS regulations.

Combined between our core business and the ramp-up we've had in our water side to date, we're extremely well-poised to move into 2027 as a very aggressive water treatment company. Next slide, please. As I mentioned, the legacy air business is a core business which underwrites the operations of the company. It's very solid at this time, given the AI demand on the coal-fired fleet in the U.S. We have a very solid position there with our patented process, which will continue to grow as we complete our protection of our patent package over the next year or two. It's expected that we'll see some significant growth in the product supply side either late this year or through 2027.

That core business, again, once we take the pressure off it underwriting the water side, will be profitable and grow nicely as we continue to transition into the water side of things. Next slide, please. Sorry, next slide, please. Potable and wastewater treatment solutions are key to our future growth. We have the world-class design center that we've spoken about. Also we've been putting together our own branded activated carbon and ion exchange resins for best available technology approaches to stay ahead of the opportunities on the PFOA/PFOS collection. We're media agnostic. We have both the granular activated carbon side of things and the ion exchange approach that we'll be bringing to market in 2027. Next slide, please. As we all know, the PFAS and PFOA contamination in the U.S. is widespread and very, very difficult to manage.

The new regulations, which start with monitoring in 2027 and ramp up to full compliance in 2030 and 2031, are going to be very onerous on the community's water supply systems. Our approach to this is to meet it head-on to reduce the pending costs across the country. We're going to do that with our new patented technologies and our new developed products that we've spent the last three years in development. Those new products will be coming to market early in 2027 as we finish off the commercialization efforts and move forward with the discussions that we're now having with water utilities across the country.

The PFOA, PFAS problem, we will be addressing through our new rejuvenation process, which takes spent carbons and rejuvenates them to well up to 100% efficacy, and in some cases more, better performing than the best possible granular activated carbons on the market today. We look very much forward to bringing that effort to market, as I say, early in 2027. Our first operation, we plan to have up and running in January of 2027, and that will give us complete, full commercialized proof of concept from our early days of design through our testing at the Pennsylvania site through to our new commercial facility, which will be up and running in January. Next slide. We will make a big difference in the industry with our approach.

Both the design centers and the analytical lab combined will give utilities the opportunity to figure out exactly what kind of challenges they have in this PFOA, PFAS regulated world, and also allow their engineers to work to develop the best possible strategy. Our water treatment solutions will be very significant, especially in the resin side of things, and we will be bringing that to market, as well as through licensed sellers along with ourselves in 2027 and beyond. The carbon rejuvenation approach will start in 2027, and it will grow through various facilities as we continue to grow that side of our company, through to the full regulation period in 2030, 2031.

We very much expect to have a significant uptick in growth in 2027 with that first facility up and running. I look forward to bringing some economic projections to the market once we close on that acquisition, begin the rebuild of that facility later this month. Next slide, please. The design center has, for the last year or 2, bridged the gap between lab results and full-scale utility deployment. We have been testing materials from a variety of different water utilities over these past 2 years and working with their engineering teams in order to be able to design both specialty products and special processes in order to be able to bring them into compliance with the PFOA, PFAS regulations at the lowest possible price.

We have been very successful with that and are extremely excited to move forward to be able to do that on a commercial level in January of next year. Everything is in place for us to make that transition, and we very much are looking forward to being able to show the market that we can operate at a full commercial level at high volumes with the same efficacy that we have been able to generate in our design center in Pennsylvania. We have expert leadership driven by Dr. David Mazurco and Dr. Nicholas Lentz, along with some very key individuals that have worked with us for years.

John Pavlish, James Tredle in particular, are leaders in the activated carbon industry overall, have specialized in the air side of things, but have been able to get up to speed under the tutelage of David Mazurco over the past couple of years to be able to execute our plan and our build-out as described so that we will be commercially operable this coming January. Next slide. Ion exchange media to treat PFAS and multiple contaminants is a burgeoning industry in the country, and we expect that it will continue to grow. It has a $300 million to $450 million opportunity, $2 million to $280 million with water utilities, another $50 million to $70 million with nuclear power opportunities, and $40 million to $60 million annually with coal and gas power operations.

Industrial water as well is another area of opportunity for us, and we have developed our own SEA or sorbent enhancing additive, IX, which we introduced earlier this year, which we will be bringing to market in 2027 and beyond. Not only will we be working in the activated carbon medium side of things, but also in the resins and the ion exchange side of things, which will give us a very much broad approach to the market regardless of how each of those solutions grows in market share. Next slide. We are looking to have a sustainable and more affordable PFAS compliance, in particular for smaller communities. When I say smaller, we are looking at the bedroom communities of the major centers around the country.