Mr. MacPherson.
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 three 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 three 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 two, 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 two 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 Mazyck and Dr. Nicholas Lentz, along with some very key individuals that have worked with us for years.
John Pavlish, Jim Trettel 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 Mazyck 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 - $450 million opportunity, $200 million - $280 million with water utilities, another $50 million - $70 million with nuclear power opportunities, and $40 million - $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.
Those are the places that need our hands-on expertise, our analytical expertise, our product design expertise, and our overall ability to provide start-to-finish options for them. The rejuvenation capabilities that we will be bringing to market will allow these mid to smaller size communities to meet these PFOA, PFAS regulations and avoid the horrendous cost of having to replace that granular activated carbon on a regular basis every nine months or so as they go forward to meet their PFOA, PFAS requirements. We have the ability to generate small-size operations that will fit nicely in regions around the country that have the requirements but not the capacity to support large, massive reactivation facilities that have been the norm. Next slide, please. From a financial point of view, there is this large settlement, of course, out there, $78 million-plus final judgment that is earning interest daily.
We are looking forward to bringing that down, but not running our business waiting for it. We have strong cash management. The balance sheet strengthened with a raise of $16 million in February of this year, and we maintain about $12 million at this point, after having paid off all of our debt. We have zero debt at this point and have completed the uplisting to the NYSE American, which we expect, in the long run, will be very beneficial for the shareholders. Moving forward, we are very much enthused, have a good run rate with that $12 million in hand to carry us over this next year or two of operations. With our new facility up and running in January of 2027, we expect to be able to provide a very solid, profitable future for the company that will be growing quarter-over-quarter.
We are in good shape financially, do not need to raise capital at this time, do not expect to do any equity raises in the future, and are looking forward to be able to build these plants out in a very solid fashion given the cash on hand and some very solid debt financing as required as we go forward. Next slide, please. The recent and upcoming catalysts, just to reiterate, we have strategic growth, settlements with these infringing parties, and an entrance into this $1.5 billion annual water market well underway. The $78 million judgment is on final appeal. We expect that to see its way through the court system in the coming six months or so, to be settled sometime in 2027.
All of the challenges against our patents have been terminated, which opens the door and clears the path for us to proceed with our negotiated settlement or litigation as necessary with the Ameren Corporation. Our water business is commercializing very nicely. We announced a $1 million initial in purchase orders. We expect to be adding additional revenues as we go forward. But the main push forward for us will be the rejuvenation of the spent carbons through our newly patented process. Also, we will be moving into the granular activated carbon sales business, and we will have product available to the market early in 2027. We do expect more licensing revenue ahead, given the situation with Ameren in particular, and other utilities that are still using our patented technology without paying us a fee. We will bring that news of those gains to the market as we go forward.
Our key centerpiece to our growth, which we are focused on and will have commercially up and running as a proven entity as part of our build-out, is underway. We expect to close on the acquisition that will make that happen, and we expect to have that first facility up and running in January of 2027. Next slide. That brings us to the question -and -answer part of our session today. [Richard], if you don't mind, what we will do is jump into the questions as necessary. As I mentioned, it's 18 minutes past the hour.
Well, thank you. I do have a two-part question here from someone.
Sure.
Have you had conversations with Ameren about settling before trial? With IPR challenge not available to Ameren, wouldn't it seem odd to go to trial? Do you have any update on the appeal process in the Delaware case?
Good questions. I have not heard back from Ameren since an initial conversation I had with their senior management. I'm hoping and expecting that as the case develops, we will hear back from them. There is an appeal on the Delaware case, which is still outstanding. Perhaps they're waiting to see how that goes. Either way, the court will be assigning a trial date and moving forward with the trial in the coming week or two is what we expect. If necessary, we'll go to trial. We feel very confident in our prospects of winning at trial. As always, we would very much prefer to have a business solution. Because we designed and patented the process that we are arguing about at this point, we would be able to bring some significant efficiencies to their program, their ongoing program that they use.
At the end of the day, if we have an opportunity to sit with them, I think we can make a lot of sense out of us settling this prior to trial. But again, that's their call. With regards to the collection, we have been advised by legal counsel to let the appeal process finish. We see it as a final appeal process. There is an alternative for them to seek a further appeal with the Supreme Court, which is highly unlikely that it would be taken up. Once the appeal process has exhausted itself, we feel we'll be in position to move forward aggressively with the collection efforts.
Okay. Very good. I have another question. It's just been added. They're asking, can you provide any more detail on Birchtech's own rejuvenated GAC facilities outside of the acquisition, timing, number of facilities, et cetera?
We'd like to get the first one up and running commercially, get all the bugs worked out of it, show the market that we can transition from pilot scale to full scale. Start running full loads of material through that from the utility market before we go into detail as to how we're going to build it out. In overall expectation, I would expect that we would have facilities in place that would handle about $250 million worth of material annually by 2030.
Oh, okay. I have another question here. You talked about your air business, and it's about the growth of that. I think you're looking at profitability or past your patent challenges. Earlier you indicated on the second quarter call that you expect a significant increase in 2026 air products supply revenue versus that of 2025. Although the timing depends partly on when existing utility supply contracts expire, what visibility do you have today into those conversions, and what milestones should investors watch over the next 6 - 12 months?
Well, ironically, we've had some significant product sales increases in both Q1, Q2, and we expect to be able to announce positive growth in Q3 when we get the final audited numbers out there. However, there were a number of multimillion-dollar license amounts that were received in 2024 that weren't reciprocated in 2025, which offset that product growth in terms of its specific explanation. So we are growing that air side, product side nicely. However, the net effect, because the licensing is not there due to the IPRs holding up that process, we're not showing the net gains that I was expecting. However, once we get back on track, in particular with this Ameren case, there is a very substantial claim in that situation that will offset or could offset that growing discrepancy substantially.
We will be proceeding with a substantial claim against Ameren based on the capacity factor of the plants that were using our technology for an extended period of time, based on the precedent that was set in the actual court win in Delaware. So that will see itself out over the next year in particular. I do expect to see some more product growth from the settlements we had in 2025. We've yet, however, to get notice, as is required, from any of those settled accounts as to their contracts coming up for renewal. We can't predict that or govern it, so we have to just basically wait until we get the request for proposal to be able to submit and hopefully grow that supply side. But on our own, we've been growing the supply side significantly.
I'll make sure I break that out in detail in my next earnings call.
Okay. Very well. Now move over to the water side regarding the water revenue inflection. Previously the company described 2026 as establishing the commercial foundation for water, saying it is laying the groundwork for significant growth next year. What needs to occur between now and year-end for 2027 to represent a meaningful inflection in water revenue? Can you give us, or give investors rather, a sense of the potential magnitude of that growth?
Sure. We established ourselves with about $1 million initial sales into the market. But what really has come to fruition over this past nine months or so is the ability for us to move forward with our first rejuvenation facility, which, as I mentioned earlier in the call, will be up and running in January of this coming year. That will allow us to transition to a commercial platform, taking our newly patented technology to market commercially, as well as introduce an enhanced line of granular activated carbons for sale into the industry. On top of that will be the actual core business of the company that we're acquiring and retrofitting to be our first facility. Collectively, the potential of that new facility, once it's up and running in January, is somewhere in the $12 million - $15 million annual amount.
We will start to build through that in 2027 so that by the time we get to the end of 2027, we'll have that up on plane, generating revenues annually going forward at about that level. I expect the business will ramp nicely through 2027. I don't have a final number or expected number of net output in 2027, but it will be substantial. It will add significantly to our position as a company, not only overall, but as a real player entering that water market. Not difficult for me to see how we could grow the company in significant amounts in 2027. I'll be reporting as we go through quarter to quarter, what those projected numbers will be, but they will be substantial. Again, the capacity factor of that new facility will be in the $12 million - $15 million annual range.
How quickly we get there has yet to be determined. I want to get the deal closed and start the retrofit before we start making any projections as to what we expect quarter by quarter in the coming year from that facility.
Okay. Thank you. This is more on water, particularly the sales funnel. The company is working with engineering firms and utilities through RSSCT testing, design centers, media sales, and treatment services. Can you characterize the current water opportunity pipeline, perhaps by number or size of customer engagements, and explain how an initial testing engagement typically progresses into recurring product or service revenue?
Wow, that's quite the question, [Richard].
Okay.
In a nutshell, basically, we've spent the last three years analyzing and working with clients' materials, water, spent carbons, through their engineering firms, to be able to let them understand what their challenges are and what the different options are, whether with ion exchange or activated carbons or rejuvenating spent carbons, to be able to get them in a situation where they can see what the options are to meet these coming PFOS, PFAS regulations. By moving through the analytical side in North Dakota and then onto the design centers in Pennsylvania, this culminating with commercial operation levels, which will be in effect in January. It provides the complete base from start to finish for us to be able to show them what they can do to meet these compliance numbers coming forward.
Whether if they put granular activated carbon in, then if they put spent carbons back to us, how that all plays out over the next 10 - 20 years. We've been very fortunate with our relationships with the engineering firms to be able to create multiple opportunities for us to move this process forward. We'll start in earnest at a commercial level, seeing that through in January of 2027. We didn't want to try to move forward to be able to create business with utilities until we had our first facility up and running and all the bugs worked out of it. That'll happen in January, then we see a very solid pathway forward to be able to grow the business substantially over the coming three years, when the final regulations come into place across the country.
All right. Well, thank you. I think we're just about out of time. Thank you very much for attending, and we wish Birchtech the best. I think you'll do very well. For all you viewers out there, this presentation has been recorded and will be available on Channelchek. Thank you.
Thank you, [Richard].