Good morning, ladies and gentlemen. Thanks so much for joining me this morning. Has any questions at the end of the presentation. Birchtech, we're known as America's Clean Coal and Clean Water Company. I founded the company back in 2008. We've been commercially viable since 2011 and have been increasing and growing our company ever since. Forward-looking statements, of course, for you to read in detail as needed. Let's do a quick overview. In the clean air side of our company, we've established a core business of reducing mercury emissions at coal-fired plants around the country. We have dozens of plants now under contract and have been servicing them for these past 10 years or more. We've never had a cancellation of any of our contracts. It's a patented sorbent technology that we have put in place, and we continue to use it today.
We've generated to date approximately $265 million in revenue sales through in the industry, so we're an established company. On the water purification side, we see ourselves as being experts in the granular activated carbon space. And for those that don't know, granular activated carbon is used about 90% of the applications for drinking water in utilities across the US. Our expertise is in the area of carbonaceous materials. That's what we use to develop our patented processes for the air purification side. We've made a transition into water purification and the development of those materials over the last couple of years. The problem with utilities across the US that they're facing now is the new EPA regulations that go into place over the next few years that require the forever chemicals or forever plastics to be removed from the water. They're called PFOS o r PFAS.
It's the microplastics that need to be taken from the water sources. With that in mind, we've transitioned from our mercury emission controls, which are still in effect and will remain in effect for these coming decades, to the water side, which we're now working on. The solution, basically, that we have leverages decades of expertise. We offer a custom, tailor-made approach to removing these toxins from both the air and the water. Our custom approach that we have established in air had over 80% adoption for those plants that needed a sorption-type approach. We expect that we will take a significant share of market once we go commercial with our new products on the water side. Again, established legacy air business in place. These are just a couple of photos of some of our equipment that are operating in the field today.
The silo operation is part of our Texarkana plant. All of our installations, both plants in Corsicana and this one in Texarkana, are fully paid for. As I'll show later in the presentation, we are a 100% debt-free company at this time. Our SEA technology, or sorbent enhancement technology, has been very effective for air pollution at power plants, providing a more effective approach, lower cost, and less product used by the coal plants that are using it today. Our go-to-market strategy is to continue growing the air business, mainly by defending our IP portfolio. I'll get into this in general now. Over the past 8-10 years, we've been defending our patent package of these processes that have been installed in coal plants around the country.
Starting in 2016, we had reached about $33 million in annual revenues, and we're expecting to grow upwards to $100 million. However, we had done a lot of demonstrations across the country, and unfortunately, the power plant industry in general took it upon themselves to install our patented processes without coming back through the company. We found ourselves competing against ourselves from 2016 on. In 2019, I decided that we should make a stand. We filed litigation against 44 major utilities and other tax programs that were using our technologies. Long story short, we've succeeded 100% in those enforcements. We've collected to date about $40 to 45 million in license fees from users of our technologies. We also have an outstanding win at federal court from about a year ago, where the jury awarded us an additional $57 million. That judgment, the final judgment, is outstanding now.
Our attorneys have asked, due to the willfulness of the infringement, for $160 million in terms of a settlement asked for from the court. We expect to hear on that in finality in the coming months. In the meantime, our company has been growing nicely. We projected $23 million in revenue, dropping $3 or 4 million to the bottom line just on our core air business for 2025. On an adjusted EBITDA basis, we're running on basically a break-even at this point in time. That is mostly due to the fact that we've paid all of our debt and we're investing heavily in the water side of our technologies. With regards to our client mix, we have very strong margins with recurring revenue models, and as you can see, a broad selection of clients that are long-term clients that we are building with as well. Contracts.
Again, we've never lost a contract, and they always renew. Gross margins on our core business are about 30%. What's most exciting about us, not the fact that we've won $100 million in damage claims against multi-billion dollar companies over the past year, is our move into this water business. The water business has 10 times as much potential as the air business. We feel that we'll level off somewhere in the $40 million-plus range on our air business once we finish the litigation process. That will continue for many years to come, given that the coal-fired production side of things in the country has stabilized and is, in fact, growing in some sectors. The water purification side is an established, necessary, regulated business that's not affected by recessions or tariffs or any of that stuff.
We find ourselves as a company, as an operating tech company, that has true value in terms of long-term efforts. I went back about two years ago and hired out the very best scientists and engineers I could find in the water market as we were seeing this litigation through, and have put together a team that I feel is the best in the country. We've developed new technologies and have them all provisionally patented at this time that we'll be introducing in the second half of this year that we think will make a big dent in the supply side of the water purification business, which is about $1 billion a year of renewable annual sales of material. That market is virtually owned by a couple of companies, mostly the Calgon company. They produce great products.
We think we've developed a product line that will be an improvement on that, especially how it relates to the forever chemicals and the new EPA regulations that have been proposed to go in effect. Now, I don't know whether or not those EPA regulations will actually go into law. The new administration has not looked at them in any disparaging way at this point. I do think that they may be cut back as we go forward. Nevertheless, the industry will be still a $1 billion-plus annual industry. We feel that our new technologies, which we've proven at our labs and we'll be doing comparative testing starting this quarter, will provide a very strong entrance for us into the water market starting in the last half of 2025.
The guidance that I'm giving for the year for the company is only based on the supply side of the air business. It doesn't include any IP or licensing wins that are expected, nor does it include any water revenues that we are now moving into. Earlier this year, I discussed that we had acquired a $7 million feedstock contract where we will apply our know-how and expertise to that feedstock contract and produce about $8 million worth of product that will be sold into market in the latter half of 2025. Air pollution company into an air and water purification company as we move into the second half of 2025. We have received significant feedback from the market. We have approached the engineering firms and the utilities around the country.
We have received a great deal of what I would call soft commitments for our new technologies based on our explanation of them to those end users. The go-to-market strategy is our rapid movement into the water. As I mentioned earlier, we will be commercially viable in that space in the second half of 2025. It is unique the way that we are approaching this. We backed up, once I hired these folks a couple of years ago, and built out two very significant facilities: one in North Dakota and one in Pennsylvania. The one in Pennsylvania is a product development design center, and the one in North Dakota is an analytical center.
Both of them are multi-million dollar facilities, fully paid for, fully staffed, that have developed these new technologies and are now starting in with head-to-head testing using batch product-sized new materials that we're producing. We have started to do the analytical testing, and we will start now to bring in competitive utilities using competitive products from Calgon, Norit, and others, and do head-to-head testing at our facilities. The really unique part about this is we're able to do in about a week for tens of thousands of dollars what would typically cost hundreds of thousands of dollars and take months to get through. All of these utilities across the country are now trying to figure out how they're going to meet these new forever chemical regulations.
Even small communities, 100,000 to 150,000-person-sized towns, are budgeting tens of millions of dollars over the next four or five years to try to meet these new regulations. We think we have a solution where we can bring them into our facilities, show them how to do it with a much higher degree of efficacy for a much lower price than what they're facing now. We will become the folks in the industry that will teach the utilities how to be able to meet these new regs cheaper, faster, without massive CapEx requirements. We have a plan to do that. We know how to do that. The team of engineers that I've assembled have reached out and are now starting to work with the utilities to provide that.
Our laboratories actually are now looking like they'll turn into a very strong revenue source as well because of the demand that we've been able to solicit. It is going to be a very exciting time for us as we work with the utility operators across the country and help them meet the new regulations that are coming in, but also to improve what it is that they're doing today. Cost of clean water is expensive, and it's getting more expensive. The cost of the regular granular activated carbons continues to go up, and we expect that to continue. The new products that we've introduced or will be introducing have at least a 25% improvement in efficacy, according to our real-life testing in-house. We hope to be able to translate that into real results in the market.
We will be reporting back, of course, as we get into this head-to-head testing as the rest of the year goes on. Robust infrastructure, which I just talked about, is the Grand Forks Testing Center. We also have those other two facilities, Texarkana and Corsicana, and the design lab in Pennsylvania. Financial summary. I will just go over this briefly. I have six minutes left. We have a reoccurring revenue base, good margins, 30% in the air, expecting 50% in the water. Again, none of the water revenue is shown anywhere on this slide. Litigation upside. We have a base award at this point outstanding with the court of $57 million. We have strong cash management. We are balancing our run rate to basically a break-even. That is because we are investing as much as we can in the water development without taxing our operating balance sheet.
I am in the process as well of acquiring a couple of facilities that we are looking at to convert from basic material manufacturing facilities into granular activated facilities, using our know-how and our new IP. I'll bring that news to market in the coming month as I finish the due diligence. That will all be financed with debt financing through regional banks. We don't expect to have to use any equity to move those plants forward, acquire them, and put them in production. They're both money-making, profitable long-term businesses as they sit. We will be taking those plants and turning them to higher revenue, higher bottom line operations that fit our water strategy. If you look at the far right, which is easiest in this forum, you can see in the light blue what we actually have received to date annually in IP licensing.
I expect that to continue going forward for the next couple of years. As yet to be mentioned, we have 14 more defendants under litigation, which are being handled 100% by contingency by the law firm that won the case at federal court. So, the $27 average amount of monies that we're receiving in licensing revenues, I expect that to continue as well in 2025 and 2026. However, I've not mentioned it in any guidance I've given, which has been $23 million. As you can see, there's a lot of unstated revenue, potential revenue that we have that we've worked on, done all of the heavy lifting on that we expect to realize in 2025, 2026 as we go forward with our launch into the water market. The key takeaways.
We've got the right team, disruptive technologies in regulated, consistent, high-dollar markets, a recognized IP in the air pollution side, and regulatory tailwinds in the water side. We've got a world-class team of experts. We're specialists in carbonaceous materials, which continues and will continue to be the lead material in all water purification going forward. There's a ton of money that's supposed to be going into the federal funding, but we as a company have not relied on, nor do we participate in looking for federal funding. We prefer to do it the old-fashioned way, prove that it works, figure it out out of our own operating capital, and then bring it to market with only any strings attached so that we can make the technologies work best in the market on their own. We have a large, addressable market. We have a stable air business.
As I mentioned, $40 million-plus annually is expected just to come from the supply contracts of those that we have under litigation at this time. There is a massive, we feel, underserved water business. For many, many years, one major company has managed that business. As with most situations like that, over time, there are opportunities that develop for an innovative, high-service type company to step in and take a piece of that. That is what we aim to do. We have a very strong IP portfolio, as has been exposed in our 100% litigation wins to date, which we expect to continue, with, as I mentioned, the $35 million award in the final judgment and $35 million funds received to date from licensing settlements. Our move into the water business is underway.
That $7 million of initial feedstock that we've acquired will be converting into our final product and selling into market in the last half of 2025. That will establish a base of business in a number of different utilities across the country and make room for the new amounts of product that will be coming from these acquisitions I'm involved in to be added to and sold through in 2026. I've not made any firm commitments as to what that will mean. Our expectations, however, are that it'll be somewhere in the $20 to 30 million worth of additional product that we would have available to sell through into market in 2026. Again, none of these numbers have been included in any projections that we've made to date.
The build-out of our GAC facility, our granular activated carbon facility, the two initials that I'm looking at acquiring now will be up and running this year. We are, however, planning to build a major facility in the southeast later this year. That would come online end of 2026, have about $60 million worth of additional capacity. We would be moving that into market in 2027, keeping in mind that the team that I've hired have both conceived, designed, constructed, and operated GAC plants in the past profitably and are ready, set, and able to do that for us moving forward. It is not just a tech company trying to do something that the personnel have not done before.
I'll leave you with the thought that we're going to do for water what we've already proven and done for air with regards to activated carbon usage in the environmental space. With that, I'll open it up for any questions that you might have. Come on now. Somebody must have one. Thank you so much. All righty. Thank you now.