Mr. Richard MacPherson reports

BIRCHTECH FILES BRIEF IN FEDERAL CIRCUIT SUPPORTING THE $78 MILLION PATENT INFRINGEMENT JUDGMENT AGAINST CERT DEFENDANTS

Birchtech Corp. has filed its appellee brief with the United States Court of Appeals for the Federal Circuit in response to the appeal filed by the CERT defendants challenging the approximately $78-million final judgment entered in favour of Birchtech by the U.S. District Court for the district of Delaware.

Birchtech filed the brief on Oct. 22, 2026, in Birchtech Corp. v. Arthur J. Gallagher & Co., et al., Federal Circuit Case No. 2026-1403, on appeal from district of Delaware case No. 1:19-cv-01334-CJB. The brief asks the federal circuit to affirm the jury's verdict and the district court's final judgment in full.

The patent litigation, which involves Birchtech's patented SEA (sorbent enhancement additive) mercury emissions control technology for coal-fired power plants, was originally filed in July, 2019, against 43 defendants. By the March, 2024, jury trial, the case had narrowed to the remaining CERT defendants following settlements and licence agreements with other defendants. A federal jury in the district of Delaware returned a unanimous $57-million verdict against the CERT defendants, finding them liable for willful infringement, along with inducing and contributory infringement. In December, 2025, the court increased the final judgment amount to $78.4-million awarded to Birchtech, inclusive of prejudgment interest, with postjudgment interest continuing to accrue daily.

The brief responds to each of CERT's challenges to the verdict and judgment, including those concerning liability, the jury instructions and damages. In doing so, it cites and quotes the district court's pretrial and post-trial opinions, issued before entry of final judgment, in which the court reaffirmed the legal standards applied at trial and rejected many of the same arguments CERT now raises on appeal.

The appeal does not suspend the accrual of interest. Postjudgment interest on the judgment continues to accrue until it is paid.

Management commentary

"Our response is absolute and clear in upholding the unanimous jury verdict and the $78-million final judgment the district court entered on that verdict," said Richard MacPherson, president and chief executive officer of Birchtech. "We will continue to defend our SEA patents, pursue full collection of the judgment with interest and keep turning former users of our technology into licensed, long-term customers."

Background on 2019 patent litigation

• July, 2019: Birchtech (then Midwest Energy Emissions Corp.) files its patent infringement lawsuit against 43 defendants in the U.S. District Court for the district of Delaware.
• March, 2024: A federal jury returns a unanimous $57-million verdict against the CERT defendants, finding willful infringement, along with inducing and contributory infringement.
• December, 2025: The court increases the final judgment amount to $78.4-million, inclusive of prejudgment interest, with postjudgment interest continuing to accrue daily.
• Jan. 28, 2026: CERT files its notice of appeal to the federal circuit.
• Feb. 2, 2026: Birchtech formally requests payment of the full judgment.
• June 3, 2026: Every inter partes review petition challenging Birchtech's SEA patents has been dismissed, removed prior to institution or resolved.
• Oct. 22, 2026: Birchtech files its response brief with the federal circuit.

Since launching its patent enforcement program in 2019, Birchtech has received approximately $37.0-million in licence fees and settlements from utilities.

About Birchtech Corp.

Birchtech is a leader in specialty activated carbon technologies delivering innovative solutions for air and water purification to support a cleaner, more sustainable future. The company provides patented SEA sorbent technologies for mercury emissions capture for the coal-fired utility sector and SEA disruptive water purification technologies with a specialization on removing contaminants, including "forever chemicals" such as PFAS, from potable water and industrial wastewater. Backed by a strong intellectual property portfolio and a team of activated carbon experts, Birchtech provides cleaner air to North American communities and is applying this expertise to a novel approach in water purification.

We seek Safe Harbor.