UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended

~~March 31,~~September 30, 2023

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

~~_____________~~

~~___________~~

~~Commission File No.~~ ~~1-11596~~

Commission File No.

001-11596

~~PERMA-FIX ENVIRONMENTAL SERVICES, INC.~~

~~(Exact name of registrant as specified in its charter)~~

PERMA-FIX ENVIRONMENTAL SERVICES, INC.
(Exact name of registrant as specified in its charter)

Delaware		~~58-1954497~~
(State or other jurisdiction of incorporation or organization)		58-1954497 (IRS Employer Identification Number)

8302 Dunwoody Place, Suite 250, Atlanta, GA		~~30350~~
(Address of principal executive offices)		30350 (Zip Code)

(770)587-9898 (Registrant’s telephone number)

~~(770)587-9898~~

~~(Registrant’s telephone number)~~

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol		Name of each exchange on which registered
Common Stock, $.001 Par Value		PESI		NASDAQ Capital ~~Markets~~Market

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☐ Accelerated Filer ☐ Non-accelerated Filer ☒ Smaller reporting company ☒ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of Common Stock, as of the close of the latest practical date.

	Class		Outstanding at ~~May 2,~~November 1, 2023
	Common Stock, $.001 Par Value		~~13,419,165~~13,613,334 shares

PERMA-FIX ENVIRONMENTAL SERVICES, INC.

INDEX

			Page No.
PART I	FINANCIAL INFORMATION		~~Page No.~~1

	Item 1.	Condensed Consolidated Financial Statements

		Condensed Consolidated Balance Sheets -September 30, 2023 and December 31, 2022	1

		Condensed Consolidated Statements of Operations - Three and Nine Months Ended September 30, 2023 and 2022	3

		Condensed Consolidated Statements of Comprehensive Income (Loss) - Three and Nine Months Ended September 30, 2023 and 2022	4

		Condensed Consolidated Statement of Stockholders’ Equity - Nine Months Ended September 30, 2023 and 2022	5

		Condensed Consolidated Statements of Cash Flows - Nine Months Ended September 30, 2023 and 2022	6

		Notes to Condensed Consolidated Financial Statements	7

		~~Condensed Consolidated Balance Sheets - March 31, 2023 and December 31, 2022~~	3

		~~Condensed Consolidated Statements of Operations - Three Months Ended March 31, 2023 and 2022~~	5

		~~Condensed Consolidated Statements of Comprehensive Loss - Three Months Ended March 31, 2023 and 2022~~	6

		~~Condensed Consolidated Statements of Stockholders’ Equity - Three Months Ended March 31, 2023 and 2022~~	7

		~~Condensed Consolidated Statements of Cash Flows - Three Months Ended March 31, 2023 and 2022~~	8

		~~Notes to Condensed Consolidated Financial Statements~~	9

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2322

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3234

	Item 4.	Controls and Procedures	33

~~PART II~~	~~OTHER INFORMATION~~	34

	~~Item 1.~~PART II	~~Legal Proceedings~~OTHER INFORMATION		3335

	Item ~~1A.~~1.	~~Risk Factors~~Legal Proceedings	3335

	Item 1A.	Risk Factors	35

	Item 6.	Exhibits	3435

PART I - FINANCIAL INFORMATION

~~Item~~ITEM 1. – Financial Statements

PERMA-FIX ENVIRONMENTAL SERVICES, INC.

Condensed Consolidated Balance Sheets

	March 31,			December 31,			September 30,
	2023			2022			2023			December 31,
(Amounts in Thousands, Except for Share and Per Share Amounts)	(Unaudited)						(Unaudited)			2022

ASSETS
Current assets:
Cash	$	2,411		$	1,866		$	1,988		$	1,866
Accounts receivable, net of allowance for credit losses of $7 and $57, respectively		10,881			9,364
Accounts receivable, net of allowance for credit losses of $42 and $57, respectively								15,342			9,364
Unbilled receivables		6,701			6,062			9,336			6,062
Inventories		1,104			814			1,030			814
Prepaid and other assets		3,800			5,405			4,506			5,405
Current assets related to discontinued operations		19			15			15			15
Total current assets		24,916			23,526			32,217			23,526

Property and equipment:
Buildings and land		24,045			24,021			24,103			24,021
Equipment		21,704			21,242			22,345			21,242
Vehicles		442			442			434			442
Leasehold improvements		23			23			8			23
Office furniture and equipment		1,133			1,299			1,129			1,299
Construction-in-progress		1,016			727			1,193			727
Total property and equipment		48,363			47,754			49,212			47,754
Less accumulated depreciation		(29,299	)		(28,797	)		(30,519	)		(28,797	)
Net property and equipment		19,064			18,957			18,693			18,957

Property and equipment related to discontinued operations		81			81			81			81

Operating lease right-of-use assets		1,852			1,971			2,094			1,971

Intangibles and other long term assets:
Permits		9,615			9,610			9,646			9,610
Other intangible assets - net		567			629			477			629
Finite risk sinking fund (restricted cash)		11,637			11,570			11,926			11,570
Deferred tax assets		4,350			4,116			3,987			4,116
Other assets		421			438			383			438
Total assets	$	72,503		$	70,898		$	79,504		$	70,898

The accompanying notes are an integral part of these condensed consolidated financial statements.

PERMA-FIX ENVIRONMENTAL SERVICES, INC.

Condensed Consolidated Balance Sheets, Continued

	March 31,			December 31,			September 30,
	2023			2022			2023			December 31,
(Amounts in Thousands, Except for Share and per Share Amounts)	(Unaudited)						(Unaudited)			2022

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	11,812		$	10,325		$	9,614		$	10,325
Accrued expenses		4,725			4,593			6,922			4,593
Disposal/transportation accrual		1,130			887			1,320			887
Deferred revenue		5,003			4,813			7,765			4,813
Accrued closure costs - current		610			682			94			682
Current portion of long-term debt		446			476
Current portion of long - term debt								880			476
Current portion of operating lease liabilities		401			416			412			416
Current portion of finance lease liabilities		161			154			223			154
Current liabilities related to discontinued operations		289			362			239			362
Total current liabilities		24,577			22,708			27,469			22,708

Accrued closure costs		7,387			7,284			7,972			7,284
Long-term debt, less current portion		443			563			2,115			563
Long-term operating lease liabilities, less current portion		1,493			1,584			1,744			1,584
Long-term finance lease liabilities, less current portion		320			318			423			318
Long-term liabilities related to discontinued operations		911			908			950			908
Total long-term liabilities		10,554			10,657			13,204			10,657

Total liabilities		35,131			33,365			40,673			33,365

Commitments and Contingencies (Note 9 )		-			-
Commitments and Contingencies (Note 9)								-

Stockholders’ Equity:
Preferred Stock, $.001 par value; 2,000,000 shares authorized, no shares issued and outstanding		—			—			-			-
Common Stock, $.001 par value; 30,000,000 shares authorized; 13,397,436 and 13,332,398 shares issued, respectively; 13,389,794 and 13,324,756 shares outstanding, respectively		13			13
Common Stock, $.001 par value; 30,000,000 shares authorized; 13,588,933 and 13,332,398 shares issued, respectively; 13,581,291 and 13,324,756 shares outstanding, respectively								14			13
Additional paid-in capital		115,452			115,209			116,106			115,209
Accumulated deficit		(77,847	)		(77,436	)		(77,032	)		(77,436	)
Accumulated other comprehensive loss		(158	)		(165	)		(169	)		(165	)
Less Common Stock in treasury, at cost; 7,642 shares		(88	)		(88	)		(88	)		(88	)
Total stockholders’ equity		37,372			37,533			38,831			37,533

Total liabilities and stockholders’ equity	$	72,503		$	70,898		$	79,504		$	70,898

The accompanying notes are an integral part of these condensed consolidated financial statements.

PERMA-FIX ENVIRONMENTAL SERVICES, INC.

Condensed Consolidated Statements of Operations

(Unaudited)

(Amounts in Thousands, Except for Per Share Amounts)	2023			2022

							Three Months Ended						Nine Months Ended
	Three Months Ended March 31,						September 30,						September 30,
(Amounts in Thousands, Except for Per Share Amounts)	2023			2022			2023			2022			2023			2022

Revenues	$	20,107		$	15,915
Net revenues							$	21,877		$	18,472		$	67,016		$	53,842
Cost of goods sold		17,098			14,279			17,328			15,402			54,942			46,252
Gross profit		3,009			1,636			4,549			3,070			12,074			7,590

Selling, general and administrative expenses		3,486			3,422			3,933			3,929			10,969			11,035
Research and development		99			96			120			69			340			245
Loss on disposal of property and equipment		—			1			-			-			-			1
Loss from operations		(576	)		(1,883	)
Income (loss) from operations								496			(928	)		765			(3,691	)

Other income (expense):
Interest income		127			11			146			29			445			69
Interest expense		(53	)		(35	)		(89	)		(47	)		(189	)		(123	)
Interest expense-financing fees		(20	)		(13	)		(36	)		(16	)		(80	)		(44	)
Other		—			(2	)		(17	)		1,965			(11	)		1,960
Loss from continuing operations before taxes		(522	)		(1,922	)
Income tax benefit		(204	)		(673	)
Loss from continuing operations, net of taxes		(318	)		(1,249	)
Income (loss) from continuing operations before taxes								500			1,003			930			(1,829	)
Income tax expense (benefit)								254			179			482			(147	)
Income (loss) from continuing operations, net of taxes								246			824			448			(1,682	)

Loss from discontinued operations (net of taxes) (Note 10)		(93	)		(94	)
Net loss	$	(411	)	$	(1,343	)
Income (loss) from discontinued operations, net of taxes (Note 10)								95			(160	)		(44	)		(442	)
Net income (loss)							$	341		$	664		$	404		$	(2,124	)

Net loss per common share - basic and diluted:

Net income (loss) per common share - basic:
Continuing operations	$	(.02	)	$	(.09	)	$	.02		$	.06		$	.03		$	(.13	)
Discontinued operations		(.01	)		(.01	)		.01			(.01	)		-			(.03	)
Net loss per common share	$	(.03	)	$	(.10	)
Net income (loss) per common share							$	.03		$	.05		$	.03		$	(.16	)

Net income (loss) per common share - diluted:
Continuing operations							$	.02		$	.06		$	.03		$	(.13	)
Discontinued operations								-			(.01	)		-			(.03	)
Net income (loss) per common share							$	.02		$	.05		$	.03		$	(.16	)

Number of common shares used in computing net loss per share:
Number of common shares used in computing net income (loss) per share:
Basic		13,358			13,234			13,568			13,297			13,468			13,265
Diluted		13,358			13,234			13,979			13,447			13,749			13,265

The accompanying notes are an integral part of these condensed consolidated financial statements.

PERMA-FIX ENVIRONMENTAL SERVICES, INC.

Condensed Consolidated Statements of Comprehensive ~~Loss~~Income (Loss)

(Unaudited)

(Amounts in Thousands) 2023 2022
Three Months Ended March 31,
(Amounts in Thousands) 2023 2022

Net loss $ (411 ) $ (1,343 )
Other comprehensive income:
Foreign currency translation gain 7 26
Total other comprehensive income 7 26

Comprehensive loss $ (404 ) (1,317 )

Three Months Ended Nine Months Ended
September 30, September 30,
(Amounts in Thousands) 2023 2022 2023 2022

Net income (loss) $ 341 $ 664 $ 404 $ (2,124 )
Other comprehensive loss:
Foreign currency translation adjustment (57 ) (135 ) (4 ) (176 )
Total other comprehensive loss (57 ) (135 ) (4 ) (176 )

Comprehensive income (loss) $ 284 $ 529 $ 400 $ (2,300 )

The accompanying notes are an integral part of these condensed consolidated financial statements.
64

PERMA-FIX ENVIRONMENTAL SERVICES, INC
Condensed Consolidated Statement of Stockholders’ Equity
(Unaudited)
(Amounts in thousands, except for share amounts)
Shares Amount Capital Treasury Loss Deficit Equity
Common Stock Additional Paid-In Common Stock Held In Accumulated Other Comprehensive Accumulated Total Stockholders’ Common Stock Additional Paid-In Common
Stock Held In Accumulated Other Comprehensive Accumulated Total
Stockholders’
Shares Amount Capital Treasury Loss Deficit Equity Shares Amount Capital Treasury Loss Deficit Equity

Balance at December 31, 2022 13,332,398 $ 13 $ 115,209 $ (88 ) $ (165 ) $ (77,436 ) $ 37,533 13,332,398 $ 13 $ 115,209 $ (88 ) $ (165 ) $ (77,436 ) $ 37,533
Net loss — — — — — (411 ) (411 ) - - - - - (411 ) (411 )
Foreign currency translation — — — — 7 — 7 - - - - 7 - 7
Issuance of Common Stock for services 33,319 — 118 — — — 118 33,319 - 118 - - - 118
Issuance of Common Stock upon exercise
of options 31,719 — 7 — — — 7
Issuance of Common Stock upon exercise of options 31,719 — 7 — — — 7 31,719 - 7 - - - 7
Stock-Based Compensation — — 118 — — — 118 - - 118 - - - 118
Balance at March 31, 2023 13,397,436 $ 13 $ 115,452 $ (88 ) $ (158 ) $ (77,847 ) $ 37,372 13,397,436 $ 13 $ 115,452 $ (88 ) $ (158 ) $ (77,847 ) $ 37,372
Net Income - - - - - 474 474
Foreign currency translation - - - - 46 - 46
Issuance of Common Stock for services 10,171 - 119 - - - 119
Issuance of Common Stock upon exercise of options 155,136 1 93 - - - 94
Stock-Based Compensation - - 125 - - - 125
Balance at June 30, 2023 13,562,743 $ 14 $ 115,789 $ (88 ) $ (112 ) $ (77,373 ) $ 38,230
Net Income - - - - - 341 341
Foreign currency translation - - - - (57 ) - (57 )
Issuance of Common Stock for services 10,712 - 119 - - - 119
Issuance of Common Stock upon exercise of options 15,478 - 49 - - - 49
Stock-Based Compensation - - 149 - - - 149
Balance at September 30, 2023 13,588,933 $ 14 $ 116,106 $ (88 ) $ (169 ) $ (77,032 ) $ 38,831

Balance at December 31, 2021 13,222,552 $ 13 $ 114,307 $ (88 ) $ (28 ) $ (73,620 ) $ 40,584 13,222,552 $ 13 $ 114,307 $ (88 ) $ (28 ) $ (73,620 ) $ 40,584
Balance 13,222,552 $ 13 $ 114,307 $ (88 ) $ (28 ) $ (73,620 ) $ 40,584
Net loss — — — — — (1,343 ) (1,343 ) - - - - - (1,343 ) (1,343 )
Foreign currency translation — — — — 26 — 26 - - - - 26 - 26
Issuance of Common Stock for services 19,520 — 123 — — — 123 19,520 - 123 - - - 123
Stock-Based Compensation — — 102 — — — 102 - - 102 - - - 102
Balance at March 31, 2022 13,242,072 $ 13 $ 114,532 $ (88 ) $ (2 ) $ (74,963 ) $ 39,492 13,242,072 $ 13 $ 114,532 $ (88 ) $ (2 ) $ (74,963 ) $ 39,492
Net loss - - - - - (1,445 ) (1,445 )
Foreign currency translation - - - - (67 ) - (67 )
Issuance of Common Stock upon exercise of options (cashless) 16,526 - - - - - -
Issuance of Common Stock for services 21,667 - 120 - - - 120
Stock-Based Compensation - - 103 - - - 103
Balance at June 30, 2022 13,280,265 $ 13 $ 114,755 $ (88 ) $ (69 ) $ (76,408 ) $ 38,203
Balance 13,242,072 $ 13 $ 114,532 $ (88 ) $ (2 ) $ (74,963 ) $ 39,492 13,280,265 $ 13 $ 114,755 $ (88 ) $ (69 ) $ (76,408 ) $ 38,203
Net Income - - - - - 664 664
Net income (loss) - - - - - 664 664
Foreign currency translation - - - - (135 ) - (135 )
Issuance of Common Stock upon exercise of options 2,400 - 13 - - - 13
Issuance of Common Stock for services 23,085 - 120 - - - 120
Stock-Based Compensation - - 105 - - - 105
Balance at September 30, 2022 13,305,750 $ 13 $ 114,993 $ (88 ) $ (204 ) $ (75,744 ) $ 38,970
Balance 13,305,750 $ 13 $ 114,993 $ (88 ) $ (204 ) $ (75,744 ) $ 38,970

The accompanying notes are an integral part of these condensed consolidated financial statements.
75

PERMA-FIX ENVIRONMENTAL SERVICES, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)

(Amounts in Thousands) 2023 2022

Three Months Ended Nine Months Ended
March 31, September 30,
(Amounts in Thousands) 2023 2022 2023 2022
Cash flows from operating activities:
Net loss $ (411 ) $ (1,343 )
Less: loss from discontinued operations, net of taxes (Note 10) (93 ) (94 )
Net income (loss) $ 404 $ (2,124 )
Less: Loss from discontinued operations, net of taxes (Note 10) (44 ) (442 )

Loss from continuing operations, net of taxes (318 ) (1,249 )
Adjustments to reconcile loss from continuing operations to cash provided by operating activities :
Income (loss) from continuing operations, net of taxes 448 (1,682 )
Adjustments to reconcile income (loss) from continuing operations to cash provided by (used in) operating activities:
Depreciation and amortization 747 456 2,124 1,433
Amortization of debt issuance costs 20 13 80 44
Deferred tax benefit (204 ) (673 )
Recovery of credit losses on accounts receivable (6 ) (55 )
Loss on disposal of plant, property, and equipment — 1
Deferred tax expense (benefit) 482 (147 )
Provision for (recovery of) credit losses on accounts receivable 56 (47 )
Loss on disposal of property and equipment - 1
Issuance of common stock for services 118 123 356 363
Stock-based compensation 118 102 392 310
Changes in operating assets and liabilities of continuing operations:
Changes in operating assets and liabilities of continuing operations
Accounts receivable (1,511 ) 1,105 (6,034 ) 1,426
Unbilled receivables (639 ) 3,720 (3,274 ) 2,689
Prepaid expenses, inventories and other assets 1,876 1,097 3,647 829
Accounts payable, accrued expenses and unearned revenue 1,561 (4,492 ) 2,175 (5,553 )
Cash provided by continuing operations 1,762 148
Cash provided by (used in) continuing operations 452 (334 )
Cash used in discontinued operations (198 ) (142 ) (478 ) (559 )
Cash provided by operating activities 1,564 6
Cash used in operating activities (26 ) (893 )

Cash flows from investing activities:
Purchases of property and equipment (748 ) (345 ) (1,386 ) (947 )
Proceeds from sale of plant, property, and equipment — 24
Proceeds from sale of property and equipment - 25
Cash used in investing activities of continuing operations (748 ) (321 ) (1,386 ) (922 )

Cash flows from financing activities:
Repayments of revolving credit borrowings (20,257 ) (17,494 ) (63,295 ) (54,414 )
Borrowing on revolving credit 20,257 17,494 63,295 54,414
Proceeds from issuance of Common Stock upon exercise of options 7 —
Proceeds from long term debt 2,500 524
Principal repayments of finance lease liabilities (41 ) (58 ) (135 ) (821 )
Principal repayments of long term debt (137 ) (110 ) (450 ) (375 )
Payment of debt issuance costs (33 ) (21 ) (175 ) (35 )
Cash used in financing activities (204 ) (189 )
Proceeds from issuance of common stock upon exercise of options 150 13
Cash provided by (used in) financing activities of continuing operations 1,890 (694 )

Effect of exchange rate changes on cash - (4 )

Increase (decrease) in cash and finite risk sinking fund (restricted cash) 612 (504 ) 478 (2,513 )
Cash and finite risk sinking fund (restricted cash) at beginning of period 13,436 15,911 13,436 15,911
Cash and finite risk sinking fund (restricted cash) at end of period $ 14,048 $ 15,407 $ 13,914 $ 13,398

Supplemental disclosure:
Interest paid $ 55 $ 34 $ 172 $ 125
Income taxes paid — 6 - 6
Non-cash investing and financing activities:
Non-cash financing activities:
Equipment purchase subject to finance lease 50 114 309 114

The accompanying notes are an integral part of these condensed consolidated financial statements.
86
PERMA-FIX ENVIRONMENTAL SERVICES, INC.
Notes to Condensed Consolidated Financial Statements
~~March 31,~~September 30, 2023
(Unaudited)
~~Reference is made herein to the notes to consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022.~~

1.Basis of Presentation

The condensed consolidated financial statements included herein have been prepared by the Company (which may be referred to as we, us or our), without an audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“the Commission”). Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes the disclosures which are made are adequate to make the information presented not misleading. Further, the condensed consolidated financial statements reflect, in the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position and results of operations as of and for the periods indicated. The results of operations for the ~~three~~nine months ended ~~March 31,~~September 30, 2023, are not necessarily indicative of results to be expected for the fiscal year ending December 31, ~~2023.~~2023.

The Company suggests that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

The condensed consolidated financial statements include the accounts of our wholly-owned subsidiaries. The Company’s continuing operations also consisted of Perma-Fix ERRG, a variable interest entity (“VIE”) for which we were the primary beneficiary. During the fourth quarter of 2022, project work under the JVjoint venture was completed.

2.Summary of Significant Accounting Policies
Our accounting policies are as set forth in the notes to the December 31, 2022 consolidated financial statements referred to above.
Recently Issued Accounting Standards – Not Yet Adopted

In August ~~2020,~~2023, the ~~FASB~~Financial Accounting Standards Board (“FASB”) issued ~~ASU No. 2020-06, “Debt – Debt with Conversion~~Accounting Standards Update (“ASU”) 2023-05, “Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and ~~Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity.~~Initial Measurement.” ASU ~~2020-06 simplifies~~2023-05 applies to the formation of a “joint venture” or a “corporate joint venture” and requires a joint venture to initially measure all contributions received upon its formation at fair value. The guidance does not impact accounting ~~for convertible instruments~~ by ~~removing major separation models and removing certain settlement condition qualifiers for~~ the ~~derivatives scope exception for contracts~~venturers. The new guidance is applicable to joint venture entities with a formation date on or after January 1, 2025 on a prospective basis. ASU 2023-05 is currently not applicable to the Company; however, the Company will apply this guidance in ~~an entity’s own equity, and simplifies~~future reporting periods after the ~~related diluted net income per share calculation for both Subtopics. ASU 2020-06~~guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, for the Company as a smaller reporting company. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently evaluating the impact ofto any future arrangements meeting this ~~ASU on its financial statements and disclosures.~~standard.
9

3. Revenue
Disaggregation of Revenue
In general, the Company’s business segmentation is aligned according to the nature and economic characteristics of our services and provides meaningful disaggregation of each business segment’s results of operations. The nature of the Company’s performance obligations within our Treatment and Services Segments ~~results~~result in the recognition of our revenue primarily over time. The following tables present further disaggregation of our revenues by different categories for our Services and Treatment Segments:
Schedule of Disaggregation of Revenue

Revenue by Contract Type
(In thousands) Three Months Ended Three Months Ended Three Months Ended Three Months Ended
March 31, 2023 March 31, 2022 September 30, 2023 September 30, 2022
Treatment Services Total Treatment Services Total Treatment Services Total Treatment Services Total
Fixed price $ 9,594 $ 8,647 $ 18,241 $ 7,479 $ 5,761 $ 13,240 $ 10,795 $ 10,188 $ 20,983 $ 8,877 $ 6,892 $ 15,769
Time and materials — 1,866 1,866 — 2,675 2,675 - 894 894 - 2,703 2,703
Total $ 9,594 $ 10,513 $ 20,107 $ 7,479 $ 8,436 $ 15,915 $ 10,795 $ 11,082 $ 21,877 $ 8,877 $ 9,595 $ 18,472
Revenue $ 9,594 $ 10,513 $ 20,107 $ 7,479 $ 8,436 $ 15,915

Revenue by generator
(In thousands) Three Months Ended Three Months Ended
March 31, 2023 March 31, 2022
Treatment Services Total Treatment Services Total
Domestic government $ 7,257 $ 9,718 $ 16,975 $ 5,815 $ 8,245 $ 14,060
Domestic commercial 2,206 597 2,803 1,436 162 1,598
Foreign government 95 177 272 92 6 98
Foreign commercial 36 21 57 136 23 159
Total $ 9,594 $ 10,513 $ 20,107 $ 7,479 $ 8,436 $ 15,915
Revenue $ 9,594 $ 10,513 $ 20,107 $ 7,479 $ 8,436 $ 15,915
7

Revenue by Contract Type
(In thousands) Nine Months Ended Nine Months Ended
September 30, 2023 September 30, 2022
Treatment Services Total Treatment Services Total
Fixed price $ 33,223 $ 29,995 $ 63,218 $ 24,749 $ 20,569 $ 45,318
Time and materials - 3,798 3,798 - 8,524 8,524
Total $ 33,223 $ 33,793 $ 67,016 $ 24,749 $ 29,093 $ 53,842
Revenue $ 33,223 $ 33,793 $ 67,016 $ 24,749 $ 29,093 $ 53,842

Revenue by generator
(In thousands) Three Months Ended Three Months Ended
September 30, 2023 September 30, 2022
Treatment Services Total Treatment Services Total
Domestic government $ 7,095 $ 8,444 $ 15,539 $ 5,728 $ 9,264 $ 14,992
Domestic commercial 3,450 2,170 5,620 2,806 313 3,119
Foreign government 250 445 695 287 - 287
Foreign commercial - 23 23 56 18 74
Total $ 10,795 $ 11,082 $ 21,877 $ 8,877 $ 9,595 $ 18,472

Revenue by generator
(In thousands) Nine Months Ended Nine Months Ended
September 30, 2023 September 30, 2022
Treatment Services Total Treatment Services Total
Domestic government $ 24,160 $ 29,603 $ 53,763 $ 17,786 $ 28,158 $ 45,944
Domestic commercial 7,925 3,509 11,434 6,045 859 6,904
Foreign government 1,002 615 1,617 532 12 544
Foreign commercial 136 66 202 386 64 450
Total $ 33,223 $ 33,793 $ 67,016 $ 24,749 $ 29,093 $ 53,842
Revenue $ 33,223 $ 33,793 $ 67,016 $ 24,749 $ 29,093 $ 53,842

Contract Balances

The timing of revenue recognition and billings results in unbilled receivables (contract assets). The Company’s contract liabilities consist of deferred revenues which represent ~~advance~~ payment from customers in advance of the completion of our performance obligation. The following table represents changes in our contract ~~asset~~assets and contract liabilities ~~balances:~~balances. Our deferred revenue balance at September 30, 2023 included a $2,500,000 invoice to a certain customer for a waste treatment project which is expected to commence and be completed in 2024.
Schedule of Contract Liabilities
Year-to-date Year-to-date
(In thousands) September 30, 2023 December 31, 2022 Change ($) Change (%)
Contract assets
Unbilled receivables - current $ 9,336 $ 6,062 $ 3,274 54.0 %

Contract liabilities
Deferred revenue $ 7,765 $ 4,813 $ 2,952 61.3 %

Year-to-date Year-to-date
(In thousands) March 31, 2023 December 31, 2022 Change ($) Change (%)
Contract assets
Unbilled receivables - current $ 6,701 $ 6,062 $ 639 10.5 %

Contract liabilities
Deferred revenue $ 5,003 $ 4,813 $ 190 3.9 %
8

During the three and nine months ended ~~March 31,~~September 30, 2023, ~~and 2022,~~ the Company recognized revenue of $~~3,494,000~~842,000 and $~~3,521,000~~6,289,000, respectively, related to untreated waste that was in the Company’s control as of the beginning of ~~each respective~~the year. ~~Revenue~~During the three and nine months ended September 30, 2022, the Company recognized revenue of $494,000 and $6,138,000, respectively, related to untreated waste that was in the Company’s control as of the beginning of the year. All revenue recognized in each period related to performance obligations satisfied within the respective period.

Remaining Performance Obligations
The Company applies the practical expedient in Accounting Standards Codification (“ASC”) 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

Within our Services Segment, there are service contracts which provide that the Company has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of our performance completed to date. For those contracts, the Company has utilized the practical expedient in ASC 606-10-55-18, which allows the Company to recognize revenue in the amount for which we have the right to invoice; accordingly, the Company does not disclose the value of remaining performance obligations for those contracts.

The Company’s contracts and subcontracts relating to activities at governmental sites generally allow for termination for convenience at any time at the government’s option without payment of a substantial penalty. The Company does not disclose remaining performance obligations on these contracts.

10
4. Leases

At the inception of an arrangement, the Company determines if an arrangement is, or contains, a lease based on facts and circumstances present in that arrangement. Lease classifications, recognition, and measurement are then determined at the lease commencement date.

The Company’s operating lease right-of-use (“ROU”) assets and operating lease liabilities include primarily leases for office and warehouse spaces used to conduct our business. The Company’s operating leases also include the lease of a building with land utilized for our waste treatment operations which includes a purchase option. Finance leases consist primarily of processing and transport equipment used by our facilities’ operations.

The components of lease cost for the Company’s leases for the three and nine months ended September 30, 2023 and 2022 were as follows (in thousands):
Schedule of Components of Lease Cost
2023 2022
Three Months Ended March 31, Three Months Ended Nine Months Ended
2023 2022 September 30, September 30,
Operating Lease:
2023 2022 2023 2022

Operating Leases:
Lease cost $ 156 $ 157 $ 157 $ 157 $ 470 $ 471

Finance Leases:
Amortization of ROU assets 38 47 39 42 115 133
Interst on lease liablity 6 11
Finance leases 44 58
Interest on lease liability 9 9 22 30
Finance lease 48 51 137 163

Short-term lease rent expense — 3 - - 1 7

Total lease cost $ 200 $ 218 $ 205 $ 208 $ 608 $ 641
9

The weighted average remaining lease term and the weighted average discount rate for operating and finance leases at ~~March 31,~~September 30, 2023 were:
Schedule of Weighted Average Lease
Operating Leases Finance Leases Operating Leases Finance Leases
Weighted average remaining lease terms (years) 6.1 3.0 5.7 3.2

Weighted average discount rate 7.8 % 5.5 % 7.5 % 7.0 %

~~The weighted average remaining lease term and the weighted average discount rate for operating and finance leases at March 31, 2022 were:~~
Operating Leases Finance Leases
Weighted average remaining lease terms (years) 6.7 4.0

Weighted average discount rate 7.6 % 6.1 %
11
The following table reconciles the undiscounted cash flows for the operating and finance leases at ~~March 31,~~September 30, 2023 to the operating and finance lease liabilities recorded on the balance sheet (in thousands):
Schedule of Operating And Finance Lease Liability Maturity
Operating Leases Finance Leases Operating Leases Finance Leases
2023 $ 412 $ 138
2023 (remaining) $ 147 $ 65
2024 416 182 519 260
2025 324 160 433 239
2026 301 30 415 85
2027 286 12 406 50
2028 and thereafter 656 2 749 28
Total undiscounted lease payments 2,395 524 2,669 727
Less: Imputed interest (501 ) (43 ) (513 ) (81 )
Present value of lease payments $ 1,894 $ 481 $ 2,156 $ 646

Current portion of operating lease obligations $ 401 $ — $ 412 $ -
Long-term operating lease obligations, less current portion $ 1,493 $ — $ 1,744 $ -
Current portion of finance lease obligations $ — $ 161 $ - $ 223
Long-term finance lease obligations, less current portion $ — $ 320 $ - $ 423

Supplemental cash flow and other information related to our leases were as follows for the three and nine months ended September 30, 2023 and 2022 (in thousands):
Schedule of Supplemental Cash Flow And Other Information Related To Leases

2023 2022 Three Months Ended Nine Months Ended
Three Months Ended March 31, September 30, September 30,
2023 2022 2023 2022 2023 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases $ 144 $ 143
Operating cash flow from finance leases $ 6 $ 11
Financing cash flow from finance leases $ 41 $ 58
Operating cash flow used in operating leases $ 145 $ 144 $ 435 $ 430
Operating cash flow used in finance leases $ 9 $ 9 $ 22 $ 30
Financing cash flow used in finance leases $ 54 $ 103 $ 135 $ 821

ROU assets obtained in exchange for lease obligations for:
Finance liabilities $ 50 $ 147 $ 154 $ - $ 311 $ 147
Operating liabilities $ 484 - $ 484 $ -
10

5. Intangible Assets

The following table summarizes information relating to the Company’s definite-lived intangible assets:
Schedule of Definite Lived Intangible Assets
March 31, 2023 December 31, 2022 September 30, 2023 December 31, 2022

Weighted Average
Amortization
Gross Net Gross Net Weighted Average
Amortization Gross Net Gross Net
Period Carrying Accumulated Carrying Carrying Accumulated Carrying Period Carrying Accumulated Carrying Carrying Accumulated Carrying
(Years) Amount Amortization Amount Amount Amortization Amount (Years) Amount Amortization Amount Amount Amortization Amount
Other Intangibles (amount in thousands)
Patent 8.3 $ 697 $ (377 ) $ 320 $ 711 $ (374 ) $ 337 8.3 $ 703 $ (384 ) $ 319 $ 711 $ (374 ) $ 337
Software 3 647 (484 ) 163 640 (468 ) 172 3 661 (515 ) 146 640 (468 ) 172
Customer relationships 10 3,370 (3,286 ) 84 3,370 (3,250 ) 120 10 3,370 (3,358 ) 12 3,370 (3,250 ) 120
Total $ 4,714 $ (4,147 ) $ 567 $ 4,721 $ (4,092 ) $ 629 $ 4,734 $ (4,257 ) $ 477 $ 4,721 $ (4,092 ) $ 629

The intangible assets noted above are amortized on a straight-line basis over their useful lives with the exception of customer relationships which are being amortized using an accelerated method.

12
The following table summarizes the expected amortization over the next five years for our definite-lived intangible assets:
Schedule of Finite Lived Intangible Assets, Future Amortization Expense

Amount Amount
Year (In thousands) (In thousands)

2023 (Remaining) $ 140 $ 30
2024 62 62
2025 26 26
2026 25 25
2027 22 22

Amortization ~~expenses~~expense relating to the definite-lived intangible assets as discussed above ~~were~~was $55,000 and $~~56,000~~165,000 for the three and nine months ended ~~March 31,~~September 30, 2023, respectively, and $65,000 and $176,000 for the three and nine months ended September 30, 2022, respectively.

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6.Capital Stock, Stock Plans ~~Warrants~~ and ~~Stock Based~~Stock-Based Compensation

The Company has certain stock option plans under which it may award incentive stock options (“ISOs”) and/or non-qualified stock options (“NQSOs”) to employees, officers, outside directors, and outside consultants.

On January 19, 2023, the Company granted ISOs to certain employees for the purchase, under the Company’s 2017 Stock Option Plan (the “2017 Plan”), of up to an aggregate 295,000 shares of the Company’s ~~Common Stock.~~common stock, par value $.001 per share (the “Common Stock”). The total ISOs granted included an ISO for each of the Company’s executive officers for the purchase set forth in his respective ISO Agreement, as follows: 70,000 shares for the Chief Executive Officer (“CEO”); 40,000 shares for the Chief Financial Officer (“CFO”); 30,000 shares for the Executive Vice President (“EVP”) of Strategic Initiatives; 30,000 shares for the EVP of Waste Treatment Operations; and 30,000 shares for the EVP of Nuclear and Technical Services. Each of the ISOs granted has a contractual term of six years with one-fifth yearly vesting over a five-year ~~period~~period.. The exercise price of ~~the~~each ISO is $3.95 per share, which was equal to the fair market value of the Company’s Common Stock on the date of grant.

On July 20, 2023, the Company issued a NQSO to each of the Company’s seven reelected outside (non-management) directors for the purchase, under the Company’s 2003 Outside Directors Stock Plan (the “2003 Plan”), of up to 10,000 shares of the Company’s Common Stock. Dr. Louis Centofanti and Mark Duff, each an executive officer of the Company as well as a director, were not eligible to receive an option under the 2003 Plan. Each NQSO granted is for a contractual term of ten years with one-fourth vesting annually over a four-year period.The exercise price of each NQSO is $9.81 per share, which was equal to the fair market value of the Company’s Common Stock on the day preceding the grant date, in accordance with the 2003 Plan.
On July 27, 2017, the Company granted a NQSO ~~to Robert Ferguson on July 27, 2017~~ from the Company’s 2017 Plan to Robert Ferguson, for the purchase of up to 100,000 shares of the Company’s Common Stock (“Ferguson Stock Option”) ~~in connection with his work as a consultant to the Company’s Test Bed Initiative (“TBI”) at our Perma-Fix of Northwest Richland, Inc. facility~~, at an exercise price of $3.65 per share, which was the fair market value of the Company’s Common Stock on the date of grant. The Ferguson Stock Option was granted in connection with Mr. Ferguson’s work as a consultant to the Company’s Test Bed Initiative (“TBI”) at our Perma-Fix of Northwest Richland, Inc. facility. The term of the Ferguson Stock Option iswas seven years from the grant ~~date. The~~date, with vesting ~~of the Ferguson Stock Option is~~ subject to the achievement of three separate milestones by certain ~~dates. The first milestone was met and~~dates, the achievement of which would entitle Mr. Ferguson to purchase, respectively, 10,000 shares under the first milestone were issued to Robert Ferguson in May 2018. The Company had previously entered into amendments whereby the vesting dates for the second and third milestones for the purchase of up to, 30,000, and 60,000 shares of the Company’s Common Stock ~~were extended to December 31, 2022~~issuable under the Ferguson Stock Option. Mr. Ferguson achieved the first milestone during the first vesting period, and ~~December 31, 2023, respectively. The~~was issued ~~30,000~~10,000 shares of the Company’s Common Stock pursuant to his exercise of the vested portion of the stock option. Upon the death of Mr. Ferguson, the balance of the shares issuable under the ~~second milestone failed to vest by December 31, 2022 and therefore were forfeited. The Company has not recognized compensation costs (fair value of approximately $502,000~~ ~~at March 31, 2023) for the remaining~~ ~~60,000~~ Ferguson Stock Option ~~under~~was forfeited in accordance with the ~~remaining final milestone since achievement~~terms of the performance obligation under the remaining final milestone is uncertain at December 31, 2023. Upon Mr. Ferguson’s death, the remaining Ferguson Stock Option is now held by Mr. Ferguson’s personal representative and/or beneficiary.option.

The following table summarizes stock-based compensation recognized for the three and nine months ended ~~March 31,~~September 30, 2023 and 2022 for our employee and director stock options.
Schedule of Share-based Compensation, Allocation of Recognized Period Costs
2023 2022
Stock Options Three Months Ended March 31,
2023 2022
Employee Stock Options $ 86,000 $ 86,000
Director Stock Options 32,000 16,000
Total $ 118,000 $ 102,000
13
2023 2022 2023 2022
Three Months Ended Nine Months Ended
Stock Options September 30, September 30,
2023 2022 2023 2022
Employee Stock Options $ 94,000 $ 76,000 $ 273,000 $ 248,000
Director Stock Options 55,000 29,000 119,000 62,000
Total $ 149,000 $ 105,000 $ 392,000 $ 310,000

At ~~March 31,~~September 30, 2023, the Company ~~has~~had approximately $~~1,769,000~~1,947,000 of total unrecognized compensation costs related to unvested options for employee and directors. The weighted average period over which the unrecognized compensation costs are expected to be recognized is approximately ~~3.8~~3.4 years.
12

The summary of the Company’s ~~total Stock Option Plans~~stock option plans as of ~~March 31,~~September 30, 2023 and ~~March 31,~~September 30, 2022, and changes during the periods then ended, are presented below. The Company’s ~~Plans~~plans consist of the 2017 Plan and the 2003 ~~Outside Directors Stock Plan (the “2003 Plan”):~~Plan:
Schedule of Stock Options Roll Forward
Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years)
Aggregate Intrinsic
Value ⁽²⁾
Shares
Weighted
Average
Exercise Price
Weighted Average Remaining Contractual Term (years)
Aggregate Intrinsic
Value ⁽²⁾

Options outstanding January 1, 2023 1,018,400 $ 5.02 - 1,018,400 $ 5.02 -
Granted 295,000 $ 3.95 365,000 $ 3.19
Exercised (44,400 ) $ 3.56 $ 370,196 (282,400 ) $ 3.70 $ 2,118,892
Forfeited/expired (4,500 ) $ 3.90
Forfeited/expired/cancelled (64,500 ) $ 3.67
Options outstanding end of period ⁽¹⁾ 1,264,500 $ 4.83 4.2 $ 8,791,279 1,036,500 $ 5.48 5.1 $ 5,146,126
Options exercisable at March 31, 2023⁽¹⁾ 499,500 $ 4.30 2.3 $ 6,047,029
Options exercisable at September 30, 2023⁽²⁾ 302,300 $ 4.91 3.9 $ 1,675,604

Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years)
Aggregate Intrinsic
Value ⁽²⁾
Shares
Weighted
Average
Exercise Price
Weighted Average Remaining Contractual Term (years)
Aggregate Intrinsic
Value ⁽⁴⁾

Options outstanding January 1, 2022 1,019,400 $ 4.91 - 1,019,400 $ 4.91 -
Granted — — 94,000 $ 5.20
Exercised — — $ — (52,400 ) $ 4.04 $ 97,856
Forfeited/expired — — (9,600 ) $ 5.50
Options outstanding end of period ⁽¹⁾⁽³⁾ 1,019,400 $ 4.91 3.8 $ 1,150,167 1,051,400 $ 4.98 4.0 $ 492,939
Options exercisable at March 31, 2022⁽¹⁾ 455,900 $ 3.92 2.5 $ 779,362
Options exercisable at September 30, 2022⁽³⁾ 453,900 $ 3.93 2.4 $ 354,709

⁽¹⁾ Options with exercise prices ranging from $3.15 to $9.81
⁽²⁾ Options with exercise prices ranging from $3.15 to $7.50
⁽³⁾ Options with exercise prices ranging from $2.79to $7.50
⁽²⁾⁽⁴⁾ The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise ~~price of the option.~~price.

During the ~~three~~nine months ended ~~March 31,~~September 30, 2023, the Company issued a total of ~~33,319~~54,202 shares of its Common Stock under the 2003 Plan to its outside directors as compensation for serving on our ~~Board of Directors (the “Board”).~~Board. The Company recorded approximately $~~120,000~~359,000 in compensation expenses (included in selling, general and administration (“SG&A”) expenses) in connection with the issuance of shares of its Common Stock to outside directors.

During the ~~three~~nine months ended ~~March 31,~~September 30, 2023, the Company issued an aggregate ~~29,319~~163,933 shares of its Common Stock from cashless exercises of options for the ~~purchase~~purchases of ~~42,000~~244,000 shares of the Company’s Common Stock, at exercise prices ranging from $3.60 per share to $7.005 per share. Additionally, the Company issued ~~2,400~~38,400 shares of its Common Stock from the cash exercise of ~~an option~~options for the purchase of ~~2,400~~38,400 shares of the Company’s Common Stock, at exercise prices ranging from at $2.785 per share to $7.005 per share resulting in proceeds of approximately $~~6,700~~150,000.

In connection with a $2,500,000 loan that the Company ~~entered into with~~received from Mr. Robert Ferguson (the “Ferguson Loan”) on April 1, 2019, the Company issued a warrant to Mr. Ferguson for the purchase of up to 60,000 shares of our Common Stock at an exercise price of $3.51 per share. The warrant expires on April 1, 2024 and remains outstanding at ~~March 31,~~September 30, 2023. Upon Mr. Ferguson’s death, the warrant ~~is now held by~~transferred to Mr. Ferguson’s ~~personal representative and/or beneficiary.~~heirs. The Ferguson Loan was ~~paid-in-full~~paid in full in December ~~2020~~2020..

1413

7. ~~Loss~~Income (Loss) Per Share

Basic ~~loss~~income (loss) per share is calculated based on the weighted-average number of outstanding common shares during the applicable period. Diluted ~~loss~~income (loss) per share is based on the weighted-average number of outstanding common shares plus the weighted-average number of potential outstanding common shares. In periods where they are anti-dilutive, such amounts are excluded from the calculations of dilutive ~~loss~~ earnings per ~~shares.~~share. The following table reconciles the ~~loss~~income (loss) and average share amounts used to compute both basic and diluted ~~loss~~income (loss) per share:
Schedule of Earning Per Share
(Amounts in Thousands, Except for Per Share Amounts) 2023 2022
Three Months Ended 2023 2022 2023 2022
(Unaudited) Three Months Ended Nine Months Ended
March 31, September 30, September 30,
(Amounts in Thousands, Except for Per Share Amounts) 2023 2022 (Unaudited) (Unaudited)
Loss per common share from continuing operations
Loss from continuing operations, net of taxes $ (318 ) $ (1,249 )
Basic and diluted loss per share $ (.02 ) $ (.09 )
2023 2022 2023 2022
Loss per common share from discontinued operations, net of taxes
Loss from discontinued operations, net of taxes $ (93 ) $ (94 )
Basic and diluted loss per share $ (.01 ) $ (.01 )
Income (loss) per common share from continuing operations
Income (Loss) from continuing operations, net of taxes $ 246 $ 824 $ 448 $ (1,682 )
Basic income (loss) per share $ .02 $ .06 $ .03 $ (.13 )
Diluted income (loss) per share $ .02 $ .06 $ .03 $ (.13 )

Net loss per common share
Net loss $ (411 ) $ (1,343 )
Basic and diluted loss per share $ (.03 ) $ (.10 )
Income (loss) per common share from discontinued operations, net of taxes
Income (loss) from discontinued operations, net of taxes $ 95 $ (160 ) $ (44 ) $ (442 )
Basic income (loss) per share $ .01 $ (.01 ) $ - $ (.03 )
Diluted loss per share $ - $ (.01 ) $ - $ (.03 )

Net income (loss) per common share
Net income (loss) $ 341 $ 664 $ 404 $ (2,124 )
Basic income (loss) per share $ .03 $ .05 $ .03 $ (.16 )
Diluted income (loss) per share $ .02 $ .05 $ .03 $ (.16 )

Weighted average shares outstanding:
Basic weighted average shares outstanding 13,358 13,234 13,568 13,297 13,468 13,265
Add: dilutive effect of stock options — — 370 131 244 -
Add: dilutive effect of warrants — — 41 19 37 -
Diluted weighted average shares outstanding 13,358 13,234 13,979 13,447 13,749 13,265

Potential shares excluded from above weighted average share calculations due to their anti-dilutive effect include:
Stock options 335 405 - 499 70 405
Warrant — — - - - -
Antidilutive Securities — — - - - -
14

8. Long Term Debt
Long-term debt consists of the following:
Schedule of Long Term Debt
(Amounts in Thousands) March 31, 2023 December 31, 2022 September 30, 2023 December 31, 2022
Revolving Credit facility dated May 8, 2020, borrowings based upon eligible accounts receivable, subject to monthly borrowing base calculation, balance due on May 15, 2024. Effective interest rate for first quarter of 2023 was 9.7% ⁽¹⁾ $ — $ —
Revolving Credit facility dated May 8, 2020, borrowings based upon eligible accounts receivable, subject to monthly borrowing base calculation, balance due on May 15, 2024. Effective interest rate for first quarter of 2023 was 9.7% ⁽¹⁾ $ — $ —
Term Loan dated May 8, 2020, payable in equal monthly installments of principal, balance due on May 15, 2024. Effective interest rate for first quarter of 2023 Effective interest rate for the first quarter of 2023 was 8.0% ⁽¹⁾ 432 ⁽²⁾ 552 ⁽²⁾
Capital Line dated May 4, 2021, payable in equal monthly installments of principal, balance due on May 15, 2024. Effective interest rate for first quarter of 2023 Effective interest rate for the first quarter of 2023 was 8.0% ⁽¹⁾ 437 463
Notes Payable to 2023 and 2025, annual interest rate of 5.6% and 9.1%. 20 24
Revolving Credit facility dated May 8, 2020, borrowings based upon eligible accounts receivable, subject to monthly borrowing base calculation, balance due on May 15, 2027. Effective interest rate for first nine months of 2023 was 9.7%. ⁽¹⁾ $ - $ -
Revolving Credit facility dated May 8, 2020, borrowings based upon eligible accounts receivable, subject to monthly borrowing base calculation, balance due on May 15, 2027. Effective interest rate for first nine months of 2023 was 9.7%. ⁽¹⁾ $ - $ -
Term Loan 1 dated May 8, 2020, payable in equal monthly installments of principal, balance due on May 15, 2027. Effective interest rate for first nine months of 2023 was 9.1% ⁽¹⁾ 320 640
Term Loan 2 dated July 31, 2023, payable in equal monthly installments of principal, balance due on May 15, 2027. Effective interest rate for first nine months of 2023 was 9.9% ⁽¹⁾ 2,458 -
Capital Line dated May 4, 2021, payable in equal monthly installments of principal, balance due on May 15, 2027. Effective interest rate for first nine months of 2023 was 8.5% ⁽¹⁾ 384 463
Debt Issuance Costs (182 )(2) (88 )(2)
Notes Payable to 2023 and 2025, annual interest rate of 5.6% and 9.1%. 15 24
Total debt 889 1,039 2,995 1,039
Less current portion of long-term debt 446 476 880 476
Long-term debt $ 443 $ 563 $ 2,115 $ 563

⁽¹⁾ Our revolving credit facility is collateralized by our accounts receivable, and our term ~~loan~~loans and capital line are collateralized by our property, plant, and equipment.
⁽²⁾ ~~Net of~~Aggregate unamortized debt issuance costs in connection with the Company’s credit facility, which consists of ($~~101,000~~)the Revolving Credit Facility, Term loan 1, Term loan 2 and ($~~88,000) at March 31, 2023 and December 31, 2022, respectively.~~Capital Line, as applicable.

15
Revolving Credit and Term Loan Agreement
The Company entered into a Second Amended and Restated Revolving Credit, Term Loan and Security Agreement, dated May 8, 2020 (“Loan Agreement”), with PNC National Association (“PNC”), acting as agent and lender. The Loan Agreement, as amended from time to time and including the March 21, 2023 and the July 31, 2023 amendments as discussed below), provides the Company with the following credit facility with a maturity date of May 15, ~~2024~~2027: (a) up to $12,500,000 revolving credit (“revolving credit”) ~~(see a discussion of an amendment that~~, with the ~~Company entered into with its lender on March 21, 2023, which reduced the maximum revolving credit to $12,500,000~~ ~~from the previous amount of $18,000,000). The~~ maximum that the Company can borrow under the ~~revolving credit is~~Revolving Credit based on a percentage of eligible receivables (as defined) at any one time reduced by outstanding standby letters of credit and borrowing reductions that the Company’s lender may impose from time to time; (b) a term loan (“~~term loan”~~Term Loan 1”) of approximately $1,742,000, requiring monthly installments of $35,547; (c) a term loan (“Term Loan 2”) of $2,500,000, requiring monthly installments of $41,667; and ~~(c)~~(d) a capital expenditure line (“~~capital loan”~~Capital line”) of up to $1,000,000 with advances on the line, subject to certain limitations, permitted for up to twelve months starting May 4, 2021 (the “Borrowing Period”)~~. Only~~, with interest ~~was~~only payable on advances during the Borrowing Period. ~~Amount~~Amounts advanced under the ~~capital line~~Capital Line at the end of the Borrowing Period totaled approximately $524,000 ~~which requires~~, requiring monthly installments inof principal of approximately $8,700 plus interest, ~~starting~~commencing June 1, 2022. ~~At the maturity date of the Loan Agreement, as amended, any unpaid principal balance plus interest, if any, will become due.~~

On March 21, 2023, the Company entered into an amendment to its Loan Agreement, as amended, with its lender which ~~provides,~~provided, among other things, the following:

● removed the quarterly fixed charge coverage ratio (“FCCR”) testing requirement for the fourth quarter of 2022 and ~~removes~~removed the FCCR testing requirement for the first quarter of 2023;
● reduced the maximum revolving credit line under the credit facility from $18,000,000 to $12,500,000;
● ~~reinstates~~reinstated the quarterly FCCR testing requirement starting in the second quarter of 2023 using a trailing twelve-month period (with no change to the minimum 1.15:1 ratio requirement for each quarter);and
● ~~requires~~required maintenance of a minimum of $3,000,000 in borrowing availability under the revolving credit until the minimum FCCR requirement for the quarter ended June 30, 2023 has been met and certified to the ~~lender.~~lender (the Company met its FCCR in the second quarter of 2023 which was certified to its lender and therefore, this requirement is no longer applicable under the Loan Agreement, as amended).
15

In connection with the March 2023 amendment, the Company paid its lender a fee of $25,000 which is being amortized over the remaining term of the Loan Agreement, as amended, as interest expense-financing fees.

~~Pursuant to~~On July 31, 2023, the Company entered into a further amendment of the Loan Agreement, as amended, ~~payment of annual rate of interest due on~~which provided, among other things, the ~~revolving credit is at prime (8.00% at March 31, 2023) plus 2%~~following:
● extended the maturity date of the Loan Agreement, as amended, to May 15, 2027, from May 15, 2024;
● an additional term loan (“Term Loan 2”) to the Company in the amount of $2,500,000, requiring monthly installments of approximately $41,667. The annual rate of interest due on Term Loan 2 is at prime plus 3.00% or ~~Term~~ Secured Overnight Finance Rate (“SOFR”) (as defined in the Loan Agreement, as amended) plus 4.00% plus an SOFR Adjustment applicable for an interest period selected by the Company. A SOFR Adjustment rate of 0.10% and 0.15% is applicable for a one-month interest period and three-month period, respectively, that may be selected by the Company;
● removed the minimum Tangible Adjusted Net Worth (as defined in the Loan Agreement) covenant requirement;
● placed an indefinite reduction in borrowing availability of $750,000; and
● allows for up to $2,500,000 in capital expenditure made in fiscal year 2023 and thereafter to be treated as financed capital expenditure in the Company’s quarterly FCCR covenant calculation requirement.
At maturity of the Loan Agreement, as amended, any unpaid principal balance plus interest, if any, will become due.
Pursuant to the amendment dated July 31, 2023 as discussed above, the Company has agreed to pay PNC 1.0% of the total financing under the Loan Agreement, as amended, in the event the Company pays off its obligations on or before July 31, 2024, and 0.5% of the total financing if the Company pays off its obligations after July 31, 2024, to and including July 31, 2025. No early termination fee shall apply if the Company pays off its obligations under the amended Loan Agreement after July 31, 2025.
In connection with the amendment dated July 31, 2023, the Company paid its lender a fee of $100,000 which is being amortized over the remaining term of the Loan Agreement, as amended, as interest expense-financing fees.
Pursuant to the Loan Agreement, as amended, the annual rate of interest due on the revolving credit is at prime (8.50% at September 30, 2023) plus 2% or SOFR plus 3.00% plus an SOFR Adjustment applicable for an interest period selected by the ~~Company and payment of~~Company. The annual rate of interest due on ~~the term loan~~Term Loan 1 and the ~~capital~~Capital Line loan is at prime plus 2.50% or Term SOFR Rate plus 3.50% plus an SOFR Adjustment applicable for an interest period selected by the Company. A SOFR Adjustment rates of 0.10% and 0.15% are applicable for a one-month interest period and three-month period, respectively, that may be selected by the ~~Company~~Company.. See payment of annual rate of interest due on Term Loan 2 as provided under the amendment dated July 31, 2023.

After May 7, 2022, the Company may terminate its Loan Agreement, as amended upon 90 days’ prior written notice upon payment in full of our obligations under the Loan Agreement, as amended, with no early termination fees.
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At ~~March 31,~~September 30, 2023, the borrowing availability under the Company’s revolving credit was approximately $~~7,133,000~~10,378,000 which included our cash and was based on our eligible receivables and is net of approximately $~~3,016,000~~3,200,000 in outstanding standby letters of ~~credit. The Company’s~~credit and net of the $750,000 indefinite reduction in borrowing availability ~~of $7,133,000~~ ~~at March~~imposed by the Company’s lender pursuant to the amendment dated July 31, 2023 ~~included a requirement from our lender that we maintain a minimum of $3,000,000~~ ~~in borrowing availability~~ as discussed above.
The Company’s credit facility under its Loan Agreement, as amended, with PNC contains certain financial covenants, along with customary representations and warranties. A breach of any of these financial covenants, unless waived by PNC, could result in a default under our credit facility allowing our lender to immediately require the repayment of all outstanding debt under our credit facility and terminate all commitments to extend further credit. The Company was not required to perform testing of the FCCR requirement in the first quarter of 2023 pursuant to the March 21, 2023 amendment as discussed ~~above,~~above. It otherwise it met all of its other financial covenant requirements. The Company met all of its covenant requirements in the second and third quarters of 2023.

9. Commitments and Contingencies

Hazardous Waste

In connection with our waste management services, the Company processes hazardous, non-hazardous, low-level radioactive and mixed (containing both hazardous and low-level radioactive) waste, which the Company transports to its own, or other, facilities for destruction or disposal. As a result of disposing of hazardous substances, in the event any cleanup is required at the disposal site, the Company could be a potentially responsible party for the costs of the cleanup notwithstanding any absence of fault on our part.

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Legal Matters
In the normal course of conducting our business, the Company may be involved in various litigation. The Company is not a party to any litigation or governmental proceeding which our management believes could result in any judgments or fines against us that would have a material adverse effect on our financial position, liquidity or results of future operations.

Tetra Tech EC, Inc. (“Tetra Tech”)
During July 2020, Tetra Tech EC, Inc. (“(“Tetra ~~Tech”~~Tech”) filed a complaint in the United States District Court for the Northern District of California (the “Court”) against CH2M Hill, Inc. (“CH2M”) and four subcontractors of CH2M, including the Company (“Defendants”). The complaint alleges various claims, including a claim for negligence, negligent misrepresentation, equitable indemnification and related business claims against all ~~defendants~~Defendants related to alleged damages suffered by Tetra Tech in respect of certain draft reports prepared by ~~defendants~~Defendants at the request of the U.S. Navy as part of an investigation and review of certain whistleblower complaints about Tetra ~~Tech’s~~ Tech’s environmental restoration at the Hunter’s Point Naval Shipyard in San Francisco.

CH2M was hired by the Navy in 2016 to review Tetra Tech’s work. CH2M subcontracted with environmental consulting and cleanup firms Battelle Memorial Institute, Cabrera Services, Inc., SC&A, Inc. and the Company to assist with the review, according to the complaint.

The Company’s insurance carrier is providing a defense on our behalf in connection with this lawsuit, subject to a $100,000 self-insured retention and the terms and limitations contained in the insurance policy.

The majority of Tetra Tech’s claims have been dismissed by the Court. Remaining claims include: (1) ~~Intentional Interference~~intentional interference with ~~Contractual Relations;~~contractual relations; and (2) ~~Inducing~~inducing a ~~Breach~~breach of ~~Contract.~~contract. The Company continues to believe it has no liability exposure to Tetra Tech.

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Perma-Fix of Canada Inc. (“PF Canada”)
During the fourth quarter of 2021, PF Canada received a Notice of Termination (“NOT”) from Canadian Nuclear Laboratories, LTD. (“CNL”) on a Task Order Agreement (“TOA”) that PF Canada entered into with CNL in May 2019 for remediation work within Ontario, Canada (“Agreement”). The NOT was received after work under the TOA was substantially completed and work under the TOA has since been completed. CNL may terminate the TOA at any time for convenience. As of ~~March 31,~~September 30, 2023, PF Canada has approximately $~~1,855,000~~2,287,000 in unpaid receivables due from CNL as a result of work performed under the TOA. Additionally, CNL has approximately $~~1,061,000~~1,056,000 in contractual holdback under the TOA that is payable to PF Canada. CNL ~~also established a bond securing approximately $1,900,000~~ ~~(CAD) to cover certain issues raised in connection with the TOA. Under the TOA, CNL may be entitled to set off certain costs~~ and ~~expenses incurred by CNL in connection with the termination of the TOA, including the bond as discussed above, against amounts owed to~~ PF Canada ~~for work performed by PF Canada or its subcontractors. PF Canada continues~~have completed discussions and reached an agreement in principle to settle related matters under which, subject to execution of a written settlement agreement, the noted unpaid receivables and contractual holdback amounts will be ~~in discussions with CNL to finalize the amounts due to PF Canada under the TOA and continues to believe these amounts are due and payable~~paid to PF Canada.
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Insurance

The Company has a 25-year finite risk insurance policy entered into in June 2003 (“2003 Closure Policy”) with AIG Specialty Insurance Company (“AIG”), which provides financial assurance to the applicable states for our permitted facilities in the event of unforeseen closure. The 2003 Closure Policy, as amended, provides for a maximum allowable coverage of $28,177,000 which includes available capacity to allow for annual inflation and other performance and surety bond requirements. Total coverage under the 2003 Closure Policy, as amended, was $~~22,454,000~~22,461,000 at ~~March 31,~~September 30, 2023. At ~~March 31,~~September 30, 2023, and December 31, 2022, finite risk sinking funds contributed by the Company related to the 2003 Closure Policy, which is included in other long term assets on the accompanying Condensed Consolidated Balance Sheets, totaled $~~11,637,000~~11,926,000 and $11,570,000, respectively, ~~which included~~including interest earned of $~~2,166,000~~2,455,000 and $2,099,000 on the finite risk sinking funds as of ~~March 31,~~September 30, 2023, and December 31, 2022, respectively. Interest income for the three and nine months ended ~~March 31,~~September 30, 2023, was approximately $146,000and $356,000, respectively. Interest income for the three and nine months ended September 30, 2022, was approximately $~~67,000~~29,000 and $~~11,000~~69,000, respectively. If we so elect, AIG is obligated to pay usthe Company an amount equal to ~~100~~100%% of the finite risk sinking fund account balance in return for complete release of liability from both usthe Company and any applicable regulatory agency using this policy as an instrument to comply with financial assurance requirements.

Letter of Credits and Bonding Requirements

From time to time, the Company is required to post standby letters of credit and various bonds to support contractual obligations to customers and other obligations, including facility closures. At ~~March 31,~~September 30, 2023, the total amount of standby letters of credit outstanding was approximately $~~3,016,000~~3,200,000 and the total amount of bonds outstanding was approximately $~~27,321,000~~36,428,000.

10.Discontinued Operations

The Company’s discontinued operations consist of all our subsidiaries included in our ~~previous~~ Industrial Segment which encompasses subsidiaries divested in 2011 and ~~prior and~~earlier, as well as three previously closed locations.

The Company’s discontinued operations had net ~~losses~~income of $~~93,000~~95,000 ~~(net of tax benefit~~and net loss of $~~30,000~~160,000~~) and $94,000~~ ~~(net of tax benefit of $63,000~~) for the three months ended ~~March 31,~~September 30, 2023 and ~~2022.~~2022, respectively (net of tax benefits of $234,000 and $46,000 for the three month ended September 30, 2023 and 2022, respectively) and net losses of $44,000 and $442,000 for the nine months ended September 30, 2023 and 2022, respectively, (net of tax benefits of $353,000 and $127,000 for the nine month ended September 30, 2023 and 2022, respectively). The income and losses (excluding the tax benefits) were primarily due to costs incurred in the administration and continued ~~monitoring~~monitoring/evaluation of our discontinued operations. The Company’s discontinued operations had no revenues for ~~each~~any of the periods noted above.

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The following table presents the major class of assets of discontinued operations as of ~~March 31,~~September 30, 2023 and December 31, 2022. No assets and liabilities were held for sale at each of the periods noted.
Schedule of Disposal Groups, Including Discontinued Operation Balance Sheet
March 31, December 31, September 30, December 31,
(Amounts in Thousands) 2023 2022 2023 2022
Current assets
Other assets $ 19 $ 15 $ 15 $ 15
Total current assets 19 15 15 15
Long-term assets
Property, plant and equipment, net ⁽¹⁾ 81 81 81 81
Total long-term assets 81 81 81 81
Total assets $ 100 $ 96 $ 96 $ 96
Current liabilities
Accounts payable $ 39 $ 104 $ 23 $ 104
Accrued expenses and other liabilities 138 146 139 146
Environmental liabilities 112 112 77 112
Total current liabilities 289 362 239 362
Long-term liabilities
Closure liabilities 162 159 166 159
Environmental liabilities 749 749 784 749
Total long-term liabilities 911 908 950 908
Total liabilities $ 1,200 $ 1,270 $ 1,189 $ 1,270

⁽¹⁾ net of accumulated depreciation of $10,000 for each period presented.

11.Operating Segments
In accordance with ASC 280, “Segment Reporting”, the Company defines an operating segment as a business activity: (1) from which we may earn revenue and incur expenses; (2) whose operating results are regularly reviewed by the chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance; and (3) for which discrete financial information is available.

Our reporting segments are defined below:

TREATMENT SEGMENT, which includes:

- nuclear, low-level radioactive, mixed waste (containing both hazardous and low-level radioactive constituents), hazardous and non-hazardous waste treatment, processing and disposal services primarily through four uniquely licensed and permitted treatment and storage facilities; and
- Research and Development (“R&D&D”) activities to identify, develop and implement innovative waste processing techniques for problematic waste streams.

SERVICES SEGMENT, which includes:

- Technical services, which include:

○ professional radiological measurement and site survey of large government and commercial installations using advanced methods, technology and engineering;
○ integrated Occupational Safety and Health services including industrial hygiene (“IH”) assessments; hazardous materials surveys, e.g., exposure monitoring; lead and asbestos management/abatement oversight; indoor air quality evaluations; health risk and exposure assessments; health & safety plan/program development, compliance auditing and training services; and Occupational Safety and Health Administration (“OSHA”) citation assistance;
○ global technical services providing consulting, engineering, project management, waste management, environmental, and decontamination and decommissioning field, technical, and management personnel and services to commercial and government customers; and
○ on-site waste management services to commercial and governmental customers.
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- Nuclear services, which include:

○ technology-based services including engineering, decontamination and decommissioning (“D&D”), specialty services and construction, logistics, transportation, processing and disposal;
○ remediation of nuclear licensed and federal facilities and the remediation cleanup of nuclear legacy sites. Such services capability includes: project investigation; radiological engineering; partial and total plant D&D; facility decontamination, dismantling, demolition, and planning; site restoration; logistics; transportation; and emergency response; and

- A ~~company~~Company owned equipment calibration and maintenance laboratory that services, maintains, calibrates, and sources (i.e., rental) health physics, IH and customized nuclear, environmental, and occupational safety and health (“NEOSH”) instrumentation.

Our reporting segments exclude our corporate headquarters and our discontinued operations (see “Note 10 – Discontinued Operations”) which do not generate revenues.

The table below presents certain financial information of our operating segments for the three and nine months ended ~~March 31,~~September 30, 2023 and 2022 (in thousands):.
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Schedule of Segment Reporting Information
Treatment Services Segments Total Corporate⁽¹⁾ Consolidated Total
Segment Reporting for the Quarter Ended March 31, 2023
Treatment Services Segments Total Corporate⁽¹⁾ Consolidated Total
Revenue from external customers $ 9,594 $ 10,513 $ 20,107 $ — $ 20,107
Intercompany revenues 204 19 223 — —
Gross profit 1,252 1,757 3,009 — 3,009
Research and development 67 3 70 29 99
Interest income — — — 127 127
Interest expense (22 ) (1 ) (23 ) (30 ) (53 )
Interest expense-financing fees — — — (20 ) (20 )
Depreciation and amortization 573 160 733 14 747
Segment income (loss) before income taxes 157 943 1,100 (1,622 ) (522 )
Income tax benefit (174 ) (30 ) (204 ) — (204 )
Segment income (loss) 331 973 1,304 (1,622 ) (318 )
Expenditures for segment assets 748 — 748 — 748 (2)
Segment Reporting for the Quarter Ended September 30, 2023

Treatment Services Segments Total Corporate⁽¹⁾ Consolidated Total ⁽¹⁾
Segment Reporting for the Quarter Ended March 31, 2022
Treatment Services Segments Total Corporate⁽¹⁾ Consolidated Total Treatment Services Segments Total Corporate ⁽¹⁾ Consolidated Total
Revenue from external customers $ 7,479 $ 8,436 $ 15,915 $ — $ 15,915 $ 10,795 $ 11,082 $ 21,877 $ — $ 21,877
Intercompany revenues — — — — — 4 88 92 — —
Gross profit 638 998 1,636 — 1,636 1,494 3,055 4,549 — 4,549
Research and development 65 14 79 17 96 102 1 103 17 120
Interest income — — — 11 11 — — — 146 146
Interest expense (14 ) (1 ) (15 ) (20 ) (35 ) (23 ) (1 ) (24 ) (65 ) (89 )
Interest expense-financing fees — — — (13 ) (13 ) — — — (36 ) (36 )
Depreciation and amortization 371 71 442 14 456 584 88 672 14 686
Segment (loss) income before income taxes (481 ) 285 (196 ) (1,726 ) (1,922 )
Income tax benefit (559 ) (114 ) (673 ) — (673 )
Segment income (loss) 78 399 477 (1,726 ) (1,249 ) 1,014 1,120 2,134 (1,888 ) 246
Expenditures for segment assets 296 49 345 — 345 ⁽²⁾ 333 7 340 — 340 ⁽³⁾
Segment Reporting for the Quarter Ended September 30, 2022
⁽¹⁾
Treatment Services Segments Total Corporate ⁽¹⁾ Consolidated Total
Revenue from external customers $ 8,877 $ 9,595 $ 18,472 $ — $ 18,472
Intercompany revenues 28 16 44 — —
Gross profit 1,967 1,103 3,070 — 3,070
Research and development 55 — 55 14 69
Interest income — — — 29 29
Interest expense (20 ) (2 ) (22 ) (25 ) (47 )
Interest expense-financing fees — — — (16 ) (16 )
Depreciation and amortization 387 87 474 23 497
Segment income (loss) 1,628 710 2,338 (1,514 ) 824 ⁽²⁾
Expenditures for segment assets 149 39 188 1 189 ⁽⁴⁾
Segment Reporting for the Nine Months Ended September 30, 2023
⁽¹⁾
Treatment Services Segments Total Corporate ⁽¹⁾ Consolidated Total
Revenue from external customers $ 33,223 $ 33,793 $ 67,016 $ — $ 67,016
Intercompany revenues 234 124 358 — —
Gross profit 5,237 6,837 12,074 — 12,074
Research and development 260 11 271 69 340
Interest income — — — 445 445
Interest expense (68 ) (2 ) (70 ) (119 ) (189 )
Interest expense-financing fees — — — (80 ) (80 )
Depreciation and amortization 1,745 337 2,082 42 2,124
Segment income (loss) 2,619 2,933 5,552 (5,104 ) 448
Expenditures for segment assets 1,376 10 1,386 — 1,386 ⁽³⁾
Segment Reporting for the Nine Months Ended September 30, 2022
⁽¹⁾
Treatment Services Segments Total Corporate ⁽¹⁾ Consolidated Total
Revenue from external customers $ 24,749 $ 29,093 $ 53,842 $ — $ 53,842
Intercompany revenues 28 43 71 — —
Gross profit 4,168 3,422 7,590 — 7,590
Research and development 179 23 202 43 245
Interest income — — — 69 69
Interest expense (53 ) — (53 ) (70 ) (123 )
Interest expense-financing fees — — — (44 ) (44 )
Depreciation and amortization 1,139 244 1,383 50 1,433
Segment income (loss) 1,766 1,580 3,346 (5,028 ) (1,682 )⁽²⁾
Expenditures for segment assets 819 127 946 1 947 ⁽⁴⁾

⁽¹⁾ Amounts reflect the activity for corporate headquarters not included in the segment information.
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⁽²⁾ Includes approximately $1,975,000 recorded as other income under the Employee Retention Credit program under the CARES Act, as amended (see “Note 13 – Employee Retention Credit (“ERC”) below for a discussion of this refund amount).
⁽³⁾ Net of financed amount of $~~50,000~~152,000 and $1$~~14,000~~309,000 for the three and nine months ended ~~March 31,~~September 30, 2023, ~~and 2022,~~ respectively.
⁽⁴⁾ Net of financed amount of $0 and $114,000 for the three and nine months ended September 30, 2022, respectively.
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12.Income Taxes

The Company uses an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates, to determine its quarterly provision for income taxes.

The Company had income tax ~~benefits~~expenses of ~~approximately~~ $~~204,000~~254,000 and $~~673,000~~179,000 for continuing operations for the three months ended ~~March 31,~~September 30, 2023 and 2022, respectively, and income tax expense of $482,000 and income tax benefit of $147,000 for the nine months ended September 30, 2023 and 2022, respectively. The Company’s effective tax ~~rate was~~rates were approximately ~~39.1~~50.8%% and ~~35.0~~17.8%% for the three months ended ~~March 31,~~September 30, 2023 and 2022, respectively, and 51.8% and 8.0% for the ~~corresponding period of~~nine months ended September 30, 2023 and 2022, respectively. The Company’s effective tax rates for the three and nine months ended ~~March 31,~~September 30, 2023 ~~and 2022~~ were impacted by non-deductible expenses and state taxes.

13.Employee Retention Credit (“ERC”)

The Coronavirus Aid, Relief and Economic ~~Security~~Securities Act ~~(the “CARES~~(“CARES Act”), which was enacted on March 27, 2020, ~~provides~~provided an ~~ERC~~Employee Retention Credit (“ERC”) for qualifying businesses keeping employees on their payroll during the COVID-19 pandemic. The ERC was subsequently amended by the Taxpayer Certainty and Disaster Tax Relief Act of 2020, the Consolidated Appropriation Act of 2021, and the American Rescue Plan Act of 2021, all of which amended and extended the ERC availability and guidelines under the CARES Act. Following these amendments, the Company determined that it was eligible for the ERC, and as a result of the foregoing legislations, was eligible to claim a refundable tax credit against the Company’s share of certain payroll taxes equal to 7070%% of the qualified wages paid to employees between July 1, 2021 and September 30, 2021. Qualified wages were limited to $10,000 per employee per calendar quarter in 2021 for a maximum allowable ERC per employee of $7,000 per calendar quarter in 2021. For purposes of the amended ERC, an eligible employer iswas defined as having experienced a significant (20% or more) decline in gross receipts during one or more of the first three 2021 calendar quarters when compared to ~~2019~~2019..

During the third quarter of 2022, the Company determined it was eligible for the ERC and amended its third quarter 2021 employer payroll tax filings claiming a refund from the U.S. Treasury in the amount of approximately $1,975,000. As there is no authoritative guidance under U.S. GAAP on accounting for government assistance to for-profit business entities, the Company accounted for the ERC by analogy to International Accounting Standard (“IAS”) 20, Accounting for Government Grants and Disclosure of Government Assistance. In accordance with IAS 20, management determined it had reasonable assurance for receipt of the ERC and recorded the expected refund as other income (within “Other income (expense)”) on the Company’s Condensed Consolidated Statements of Operations and other receivables (within “Prepaid and other assets”) on the Company’s Condensed Consolidated Balance Sheets. On March 30, 2023, the Company received the ERC refund of $1,975,000~~including~~ and approximately $60,000in interest (recorded within “Interest Income” on the Company’s Condensed Consolidated Statements of Operations for the ~~three months~~quarter ended March 31, 2023), totaling approximately $2,035,000.

14.~~Executive Compensation~~
~~Management Incentive Plans (“MIPs”)~~
On January 19, 2023, the Company’s Board and the Compensation and Stock Option Committee (the “Compensation Committee”) approved individual MIP for the calendar year 2023 for each of the Company’s executive officers. Each MIP is effective January 1, 2023 and applicable for year 2023. Each MIP provides guidelines for the calculation of annual cash incentive-based compensation, subject to Compensation Committee oversight and modification. The performance compensation under each of the MIPs is based upon meeting certain of the Company’s separate target objectives during 2023. Assuming each target objective is achieved under the same performance threshold range under each MIP, the total potential target performance compensation payable ranges from 25~~% to~~ ~~150% of the 2023 base salary for the CEO ($93,717~~ ~~to $562,305~~), 25~~% to~~ ~~100% of the 2023 base salary for the CFO ($76,193~~ ~~to $304,772~~), 25~~% to~~ ~~100% of the 2023 base salary for the EVP of Strategic Initiatives ($63,495~~ ~~to $253,980~~), 25~~% to~~ ~~100% of the 2023 base salary for the EVP of Nuclear and Technical Services ($76,193~~ ~~to $304,772) and~~ 25~~% to~~ ~~100% ($65,308~~ ~~to $261,233) of the 2023 base salary for the EVP of Waste Treatment Operations.~~
~~15.~~Subsequent Events
~~Management~~The Company evaluated subsequent events ~~occurring subsequent to March 31, 2023~~and transactions that occurred after the balance sheet date through ~~May 10,~~November 2, 2023, the date that these condensed consolidated financial statements were available ~~for issuance, and other than as noted below determined that no material recognizable~~to be issued. Based upon this review, the Company did not identify any subsequent events ~~occurred.~~
~~Employment Agreements~~
~~On April 20, 2023,~~that would have required adjustment or disclosure in the Company’s Board and the Compensation Committee approved and the Company entered into, an employment agreement with each of Mark Duff, CEO (the “CEO Employment Agreement”), Ben Naccarato, CFO (the “CFO Employment Agreement”), Dr. Louis Centofanti, EVP of Strategic Initiatives (the “EVP of Strategic Initiatives Employment Agreement”), Andrew Lombardo, EVP of Nuclear and Technical Services (the “EVP of Nuclear and Technical Services Employment Agreement”), and Richard Grondin, EVP of Waste Treatment Operations (the “EVP of Waste Treatment Operations Employment Agreement”), collectively with the CEO Employment Agreement, the CFO Employment Agreement, the EVP of Strategic Initiative Employment Agreement, the EVP of Nuclear and Technical Services Employment Agreement and the EVP of Waste Treatment Operations Employment Agreement, the “New Employment Agreements” and each individually the “New Employment Agreement.” The Company had previously entered into an employment agreement dated July 20, 2020, with each of Mark Duff, Ben Naccarato, Dr. Louis Centofanti, Andrew Lombardo and Richard Grondin, with each of the five employment agreements due to expire on July 22, 2023. These five employment agreements dated July 22, 2020 were terminated effective April 20, 2023.condensed consolidated financial statements.

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The New Employment Agreements, which are substantially identical, except for compensation, are effective April 20, 2023. Pursuant to the New Employment Agreements, each of these executive officers is provided an annual salary, which annual salary may be increased from time to time, but not reduced, as determined by the Compensation Committee. In addition, each of these executive officers is entitled to participate in the Company’s broad-based benefit plans and certain performance compensation payable under separate MIP as approved by the Company’s Compensation Committee and the Company’s Board (see “Note 14 – Executive Compensation – Management Incentive Plans (“MIPs”)” for a discussion of the individual 2023 MIPs approved for the Company’s executive officers).
Each of the New Employment Agreements is effective for three years from April 20, 2023 (the “Initial Term”) unless earlier terminated by the Company or by the executive officer. At the end of the Initial Term of each New Employment Agreement, each New Employment Agreement will automatically be extended for one additional year, unless at least six months prior to the expiration of the Initial Term, the Company or the executive officer provides written notice not to extend the terms of the New Employment Agreement.
Pursuant to the New Employment Agreements, if the executive officer’s employment is terminated due to death, disability or for cause (as defined in the agreements), the Company will pay to the executive officer or to his estate an amount equal to the sum of any unpaid base salary and accrued unused vacation time through the date of termination and any benefits due to the executive officer under any employee benefit plan (the “Accrued Amounts”) plus any performance compensation payable pursuant to the MIP with respect to the fiscal year immediately preceding the date of termination. In the event that an executive officer’s employment is terminated due to death, the Company will also pay a lump-sum payment (the “Cash Medical Continuation Benefit”) equal to eighteen times the monthly premium that would be required to be paid, pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) to continue group health coverage for the executive officer’s eligible covered dependents in effect on the date of the executive officer’s termination of employment, based on the premium for the first month of COBRA coverage. Such cash payment will be taxable and will be made regardless of whether the executive officer’s eligible covered dependents elect COBRA continuation coverage.
If the executive officer terminates his employment for “good reason” (as defined in the agreements) or is terminated by the Company without cause (including any such termination for “good reason” or without cause within 24 months after a Change in Control (as defined in the agreements), the Company will pay the executive officer Accrued Amounts, (a) two years of full base salary, plus (b) (i) two times the performance compensation (under the executive officer’s MIP) earned with respect to the fiscal year immediately preceding the date of termination provided the performance compensation earned with respect to the fiscal year immediately preceding the date of termination has not yet been paid, or (ii) if performance compensation earned with respect to the fiscal year immediately preceding the date of termination has already been paid to the executive officer, the executive officer will be paid an additional year of the performance compensation earned with respect to the fiscal year immediately preceding the date of termination, and (c) the Cash Medical Continuation Benefit. If the executive officer terminates his employment for a reason other than for good reason, the Company will pay to the executive officer an amount equal to the Accrued Amounts plus any performance compensation payable pursuant to the MIP applicable to such executive officer.
Additionally, in the event of a Change in Control (as defined in the agreements), all outstanding stock options to purchase the common stock held by the executive officer will immediately become exercisable in full commencing on the date of termination through the original term of the options. In the event of the death of an executive officer, all outstanding stock options to purchase common stock held by the executive officer will immediately become exercisable in full commencing on the date of death, with such options exercisable for the lesser of the original option term or twelve months from the date of the executive officer’s death. In the event an executive officer terminates his employment for “good reason” (as defined in the agreements) or is terminated by the Company without cause, all outstanding stock options to purchase common stock held by the officer will immediately become exercisable in full commencing on the date of termination, with such options exercisable for the lesser of the original option term or within 60 days from the date of the executive officer’s date of termination. Severance benefits payable with respect to a termination (other than Accrued Amounts) shall not be payable until the termination constitutes a “separation from service” (as defined under Treasury Regulation Section 1.409A-1(h)).
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~~Item 2.~~
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-looking Statements

Certain statements contained within this report may be deemed “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (collectively, the “Private Securities Litigation Reform Act of 1995”). All statements in this report other than a statement of historical fact are forward-looking statements that are subject to known and unknown risks, uncertainties and other factors, which could cause actual results and performance of the Company to differ materially from such statements. The words “believe,” “expect,” “anticipate,” “intend,” “will,” and similar expressions identify forward-looking statements. Forward-looking statements contained herein relate to, among other things,

● demand for our services;
● U.S. government shutdown;
● reductions in the level of government funding in future years;
● reducing operating costs and non-essential expenditures;
●● ability to meet loan agreement quarterly covenant requirements;
●● cash flow requirements;
● ~~maintain satisfactory margins;~~
● Canadian receivable;
● execution of written settlement agreement between PF Canada and CNL;
● sufficient liquidity to fund operations for the next twelve months;
●● future results of operations and liquidity;
●● effect of macroeconomic concerns, such as inflation and higher interest rates, on our business;
●● manner in which the applicable government will be required to spend funding to remediate various sites;
● finalization of partnership agreement with Springfields Fuels Limited;
● successful on international bids;
● continued increases in operating costs;
● ~~fund~~funding of capital expenditures from cash from operations, borrowing availability under our credit facility and/or financing;
● steady improvement in waste shipments and work under projects during balance of 2023;
● ~~fund~~funding of remediation expenditures for sites from funds generated internally;
● compliance with environmental regulations;
● potential effect of being a PRP;
● potential ~~sites for~~ violations of environmental laws and attendant remediation ofat our facilities; and
● ~~increase~~ our ~~sales price.~~ability to effect increases in the prices of the services we offer.
23
While the Company believes the expectations reflected in such forward-looking statements are reasonable, it can give no assurance such expectations will prove to be correct. There are a variety of factors which could cause future outcomes to differ materially from those described in this report, including, but not limited to:

● general economic conditions;
● contract bids, including international markets;
● material reduction in revenues;
● inability to meet PNC covenant requirements;
● inability to collect in a timely manner a material amount of receivables;
●● increased competitive pressures;
● inability to maintain and obtain required permits and approvals to conduct operations;
●22
~~public not accepting our new technology;~~●
● inability to develop new and existing technologies in the conduct of operations;
● inability to maintain and obtain closure and operating insurance requirements;
● inability to retain or renew certain required permits;
● discovery of additional contamination or expanded contamination at any of the sites or facilities leased or owned by us or our subsidiaries which would result in a material increase in remediation expenditures;
●● delays at our third-party disposal site can extend collection of our receivables greater than twelve months;
● refusal of third-party disposal sites to accept our waste;
● changes in federal, state and local laws and regulations, especially environmental laws and regulations, or in interpretation of such;
● requirements to obtain permits for TSD activities or licensing requirements to handle low level radioactive materials are limited or lessened;
● management retention and development;
● financial valuation of intangible assets is substantially more/less than expected;
● the ~~requirement~~need to use internally generated funds for purposes not presently anticipated;
● inability of the Company to maintain the listing of its Common Stock on the NASDAQ;
● terminations of contracts with government agencies or subcontracts involving government agencies or reduction in amount of waste delivered to the Company under the contracts or subcontracts;
●● renegotiation of contracts involving government agencies;
● disposal expense accrual could prove to be inadequate in the event the waste requires re-treatment;
● inability to raise capital on commercially reasonable terms;
● inability to increase profitable revenue;
● ~~impact of COVID-19 and~~ economic uncertainties;
● new governmental regulations; and
● risk factors and other factors set forth in “Special Note Regarding Forward-Looking Statements” contained in the Company’s 2022 Form 10-K and the “Forward-Looking Statements” contained in the Management’s Discussion and Analysis of Financial Condition and Results of Operations” (“MD&A”) offor the first and second quarters 2023 10-Q and this ~~first~~third quarter 2023 10-Q.

2423
Overview

Revenue increased by ~~$4,192,000~~$3,405,000 or ~~26.3%~~18.4% to ~~$20,107,000~~$21,877,000 for the three months ended ~~March 31,~~September 30, 2023, from ~~$15,915,000~~$18,472,000 for the corresponding period of 2022. We saw increases in both segments where Treatment Segment revenue increased by ~~$2,115,000~~$1,918,000 to ~~$9,594,000~~$10,795,000 or ~~28.3%~~21.6% from ~~$7,479,000~~$8,877,000 and Services Segment revenue increased by ~~$2,077,000~~$1,487,000 or ~~24.6%~~15.5% to ~~$10,513,000~~$11,082,000 from ~~$8,436,000.~~$9,595,000. The increase in revenue in the Treatment Segment was primarily due to overall higher waste volume which was offset by lower averaged price waste due to revenue mix. The increase in revenue in the Services Segment was due to ~~achievement of full operational status~~continuing operation and improved productivity on certain projects which had been ~~curtailed/delayed primarily~~delayed/curtailed in ~~the early part of~~ 2022 due, in part, from the lingering effects of the COVID-19 pandemic. Revenue in both segments were also positively impacted by contracts won in the first half of 2023. As previously disclosed, the lingering effects of COVID-19 negatively impacted our revenue in 2022 as work under projects and waste shipments continued to be delayed by certain customers into the first half of 2022. Additionally, in 2022, procurement and planning on behalf of our government clients continued to be delayed which did not ease until the second half of 2022. Total gross profit for the ~~first~~third quarter of 2023 increased ~~$1,373,000~~$1,479,000 or ~~83.9%~~48.2% due to increased revenue. Selling, General, and Administrative (“SG&A”) expenses remained flat for the three months ended September 30, 2023 as compared to the corresponding period of 2022.
Revenue increased by $13,174,000 or 24.5% to $67,016,000 for the nine months ended September 30, 2023, from $53,842,000 for the corresponding period of 2022. As with the third quarter of 2023, we saw increases in both segments where Treatment Segment revenue increased by $8,474,000 to $33,223,000 or 34.2% from $24,749,000 and Services Segment revenue increased by $4,700,000 or 16.2% to $33,793,000 from $29,093,000. The increases in revenue in both the Treatment and Services Segments were due primarily to the same reasons as discussed above for the third quarter. Total gross profit for the nine months ended 2023 increased $4,484,000 or 59.1% due to increased revenue generated in both segments. ~~Selling, General, and Administrative (“~~SG~~&A”)~~&A expenses ~~increased $64,000~~decreased $66,000 or ~~1.9%~~0.6% for the ~~three~~nine months ended ~~March 31,~~September 30, 2023, as compared to the corresponding period of 2022.

We expect to see continued steady improvements in waste receipts and ~~increase~~increases in project work from certain existing contracts, contracts ~~recently~~already won in 2023, and bids submitted in both segments that are awaiting ~~awards. We expect this positive trend to continue~~awards during the balance of 2023. However, if Congress is unable to enact FY 2024 appropriation bills or extend the continuing resolutions to fund government spending by November 17, 2023, as the ~~lingering effects~~U.S. government will enter into a shutdown. The full impact of ~~the COVID-19 pandemic~~any government shutdown is uncertain. However, if a government shutdown were to occur and were to continue ~~to subside.~~
~~In March 2023, we received the Employee Retention Credit (“ERC”)~~an extended period, our financial results of ~~$1,975,000 that we applied for during the third quarter of 2022 as permitted under the CARES Act. In addition to the $1,975,000, we also received approximately $60,000~~operations could be negatively impacted by delays in ~~interest (recorded within “Interest Income”~~procurement actions, waste shipments and project delays on ~~our Condensed Consolidated Statements of Operations).~~newly awarded projects.

Business Environment

Our Treatment and Services Segments’ business continues to be heavily dependent on services that we provide to governmental clients, primarily as subcontractors for others who are prime contractors to government entities or directly as the prime contractor. We believe demand for our services will continue to be subject to fluctuations due to a variety of factors beyond our control, including, without limitation, the economic conditions and the manner in which the applicable government will be required to spend funding to remediate various sites ~~and/or~~and a potential ~~further impact from COVID-19.~~government shutdown. In addition, our governmental contracts and subcontracts relating to activities at governmental sites in the United States are generally subject to termination for convenience at any time at the government’s option, and our governmental contracts/TOAs with the Canadian government authorities also ~~allow~~allowed the authorities to terminate the contract/task orders at any time for convenience. Work under all of our contracts/TOAs with Canadian government authorities has ~~substantially~~ been completed. ~~A significant account receivable due to PF Canada is subject to continuing negotiations.~~ See ~~“Known~~‘Known Trends and Uncertainties – Perma-Fix Canada Inc. (“PF Canada”)” within this MD&A for ~~additional~~a discussion ~~as to~~of a ~~terminated~~significant account receivable due PF Canada under a Canadian ~~TOA.~~TOA which was previously terminated. Significant reductions in the level of governmental funding or specifically mandated levels for different programs that are important to our business could have a material adverse impact on our business, financial position, results of operations, and cash flows.

24
We are continually reviewing methods to raise additional capital to supplement our liquidity requirements, when needed (see “Liquidity and Capital Resources” below for a discussion of our liquidity). We continue to aggressively bid on various contracts, including potential contracts within the international markets.

Results of Operations

The reporting of financial results and pertinent discussions are tailored to our two reportable segments: The Treatment Segment and ~~Services.~~Services Segment.

25
Summary – Three and Nine Months Ended ~~March 31,~~September 30, 2023 and 2022

Three Months Ended Three Months Ended Nine Months Ended
March 31, September 30, September 30,
Consolidated (amounts in thousands) 2023 % 2022 % 2023 % 2022 % 2023 % 2022 %
Revenues $ 20,107 100.0 $ 15,915 100.0
Cost of good sold 17,098 85.0 14,279 89.7
Net revenues $ 21,877 100.0 $ 18,472 100.0 $ 67,016 100.0 $ 53,842 100.0
Cost of goods sold 17,328 79.2 15,402 83.4 54,942 82.0 46,252 85.9
Gross profit 3,009 15.0 1,636 10.3 4,549 20.8 3,070 16.6 12,074 18.0 7,590 14.1
Selling, general and administrative 3,486 17.3 3,422 21.5 3,933 18.0 3,929 21.3 10,969 16.4 11,035 20.5
Research and development 99 .5 96 .6 120 .5 69 .3 340 .5 245 .5
Loss on disposal of property and equipment — — 1 — — — — — — — 1 —
Loss from operations $ (576 ) (2.8 ) $ (1,883 ) (11.8 ) 496 2.3 (928 ) (5.0 ) 765 1.1 (3,691 ) (6.9 )
Interest income 127 .6 11 — 146 .7 29 .2 445 .7 69 .1
Interest expense (53 ) (.3 ) (35 ) (.2 ) (89 ) (.4 ) (47 ) (.2 ) (189 ) (.3 ) (123 ) (.2 )
Interest expense-financing fees (20 ) (.1 ) (13 ) (.1 ) (36 ) (.2 ) (16 ) (.1 ) (80 ) (.1 ) (44 ) —
Other — — (2 ) — (17 ) (.01 ) 1,965 10.6 (11 ) — 1,960 3.6
Loss from continuing operations before taxes (522 ) (2.6 ) (1,922 ) (12.1 )
Income tax benefit (204 ) (1.0 ) (673 ) (4.3 )
Loss from continuing operations $ (318 ) (1.6 ) $ (1,249 ) (7.8 )
Income (loss) from continuing operations before taxes 500 2.3 1,003 5.5 930 1.4 (1,829 ) (3.4 )
Income tax expense (benefit) 254 1.2 179 1.0 482 .7 (147 ) (.3 )
Income (loss) from continuing operations, net of taxes $ 246 1.1 $ 824 4.5 $ 448 .7 $ (1,682 ) (3.1 )
Revenues

Consolidated revenues increased ~~$4,192,000~~$3,405,000 for the three months ended ~~March 31,~~September 30, 2023, compared to the three months ended ~~March 31,~~September 30, 2022, as follows:

(In thousands) 2023 % Revenue 2022 % Revenue Change % Change 2023 % Revenue 2022 % Revenue Change % Change
Treatment
Government waste $ 6,642 33.0 $ 5,437 34.2 $ 1,205 22.2 $ 6,692 30.6 $ 5,475 29.7 $ 1,217 22.2
Hazardous/non-hazardous ⁽¹⁾ 1,511 7.5 1,001 6.3 510 50.9 1,389 6.3 1,150 6.2 239 20.8
Other nuclear waste 1,441 7.2 1,041 6.5 400 38.4 2,714 12.4 2,252 12.2 462 20.5
Total 9,594 47.7 7,479 47.0 2,115 28.3 10,795 49.3 8,877 48.1 1,918 21.6

Services
Nuclear services 10,082 50.2 8,281 52.0 1,801 21.7 9,996 45.7 9,360 50.7 636 6.8
Technical services 431 2.1 155 1.0 276 178.1 1,086 5.0 235 1.2 851 362.1
Total 10,513 52.3 8,436 53.0 2,077 24.6 11,082 50.7 9,595 51.9 1,487 15.5

Total $ 20,107 100.0 $ 15,915 100.0 $ 4,192 26.3 $ 21,877 100.0 $ 18,472 100.0 $ 3,405 18.4
⁽¹⁾Includes wastes generated by government clients of ~~$710,000~~$653,000 and ~~$470,000~~$540,000 for the three months ended ~~March 31,~~September 30, 2023, and the corresponding period of 2022, respectively.

Treatment Segment revenue increased by ~~$2,115,000~~$1,918,000 or ~~28.3%~~21.6% for the three months ended ~~March 31,~~September 30, 2023 over the same period in 2022. The overall increase was primarily due to higher waste volume offset by lower averaged price waste from revenue mix. As previously disclosed, starting in the latter part of the second quarter of 2022, our Treatment Segment began to see steady improvements in waste receipts from certain customers who had previously delayed waste shipments due, in part, from the lingering effects of ~~COVID-19 which continue to subside.~~COVID-19. Services Segment revenue increased by approximately ~~$2,077,000~~$1,487,000 or ~~24.6%~~15.5%. The increase in revenue in the Services Segment was ~~primarily~~ due to ~~achievement of full operational status~~continuing operation and improved productivity on certain projects which had been ~~curtailed/delayed~~delayed/curtailed in the early part of 2022 due, in part, from the lingering effects of the COVID-19 pandemic. Our Services Segment revenues are ~~project based;~~project-based; as such, the scope, duration, and completion of each project vary. As a result, our Services Segment revenues are subject to differences relating to timing and project value. ~~Revenue~~Revenues from both of our ~~Segments~~segments were also positively impacted from contracts ~~recently~~ won ~~as procurement and planning on behalf~~in the first half of ~~our government clients continue to progress as the lingering effects of COVID-19 pandemic continue to subside.~~2023.

2625

Consolidated revenues increased $13,174,000 for the nine months ended September 30, 2023, as compared to the nine months ended September 30, 2022, as follows:
(In thousands) 2023 % Revenue 2022 % Revenue Change % Change
Treatment
Government waste $ 23,036 34.4 $ 16,666 31.0 $ 6,370 38.2
Hazardous/non-hazardous ⁽¹⁾ 4,522 6.7 3,515 6.5 1,007 28.6
Other nuclear waste 5,665 8.5 4,568 8.5 1,097 24.0
Total 33,223 49.6 24,749 46.0 8,474 34.2

Services
Nuclear services 31,918 47.6 28,320 52.6 3,598 12.7
Technical services 1,875 2.8 773 1.4 1,102 142.6
Total 33,793 50.4 29,093 54.0 4,700 16.2

Total $ 67,016 100.0 $ 53,842 100.0 $ 13,174 24.5
⁽¹⁾Includes wastes generated by government clients of $2,126,000 and $1,652,000 for the nine months ended September 30, 2023, and the corresponding period of 2022, respectively.
Treatment Segment revenue increased by $8,474,000 or 34.2% for the nine months ended September 30, 2023 over the same period in 2022. Similar to the third quarter, the overall increase was primarily due to higher waste volume offset by lower averaged price waste from revenue mix. Services Segment revenue increased by approximately $4,700,000 or 16.2%. due to continuing operation and improved productivity on certain projects which had been delayed/curtailed in the early part of 2022 due, in part, from the lingering effects of the COVID-19 pandemic. Our Services Segment revenues are project-based; as such, the scope, duration, and completion of each project vary. As a result, our Services Segment revenues are subject to differences relating to timing and project value. Revenues from both of our segments were also positively impacted from contracts won in the first half of 2023.
Cost of Goods Sold

Cost of goods sold increased ~~$2,819,000~~$1,926,000 for the quarter ended ~~March 31,~~September 30, 2023, as compared to the quarter ended ~~March 31,~~September 30, 2022, as follows:

% % % %
(In thousands) 2023 Revenue 2022 Revenue Change 2023 Revenue 2022 Revenue Change
Treatment $ 8,342 87.0 $ 6,841 91.5 $ 1,501 $ 9,301 86.2 $ 6,910 77.8 $ 2,391
Services 8,756 83.3 7,438 88.2 1,318 8,027 72.4 8,492 88.5 (465 )
Total $ 17,098 85.0 $ 14,279 89.7 $ 2,819 $ 17,328 79.2 $ 15,402 83.4 $ 1,926

Cost of goods sold for the Treatment Segment increased by approximately ~~$1,501,000~~$2,391,000 or ~~21.9%.~~34.6% primarily due to higher revenue. Treatment Segment’s variable costs increased by approximately ~~$816,000~~$1,584,000, primarily due to higher material and supplies, disposal, ~~transportation,~~lab and ~~lab~~outside services costs. Treatment Segment’s overall fixed costs were higher by approximately ~~$685,000~~$807,000 resulting from the following: general expenses were higher by $266,000 primarily due to higher utility costs; depreciation expenses were higher by approximately $198,000 due to depreciation for asset retirement obligations in connection with our EWOC facility; regulatory expenses were higher by approximately $63,000; maintenance costs were higher by approximately $60,000; and salaries and payroll related expenses were higher by ~~$98,000.~~approximately $484,000 due to higher headcount; depreciation expenses were higher by approximately $194,000 due to depreciation for asset retirement obligations (“ARO”) in connection with our Oak Ridge Environmental Waste Operations Center (“EWOC”) facility; regulatory expenses were higher by approximately $57,000; travel expenses were higher by approximately $30,000; and general expenses were higher by approximately $42,000 in various categories. Services Segment cost of goods sold decreased $465,000 or 5.5%. The overall decrease in cost of goods sold was primarily due to the following: lower outside services and travel costs totaling approximately $761,000; overall lower material and supplies, lab, regulatory and disposal costs totaling approximately $186,000; higher general expenses by approximately $48,000 in various categories; and higher salaries and payroll related expenses by approximately $434,000. Included within cost of goods sold is depreciation and amortization expense of $666,000 and $471,000 for the three months ended September 30, 2023, and 2022, respectively.
26
Cost of goods sold increased $8,690,000 for the nine months ended September 30, 2023, as compared to the nine months ended September 30, 2022, as follows:
% %
(In thousands) 2023 Revenue 2022 Revenue Change
Treatment $ 27,986 84.2 $ 20,581 83.2 $ 7,405
Services 26,956 79.8 25,671 88.2 1,285
Total $ 54,942 82.0 $ 46,252 85.9 $ 8,690
Cost of goods sold for the Treatment Segment increased by approximately $7,405,000 or 36.0%. Treatment Segment’s variable costs increased by approximately $4,858,000 primarily due to higher material and supplies, disposal, lab and outside services costs. Treatment Segment’s overall fixed costs were higher by approximately $2,547,000 resulting from the following: salaries and payroll related expenses were higher by approximately $1,106,000 due to higher headcount; depreciation expenses were higher by approximately $597,000 due to depreciation for ARO in connection with our EWOC facility; general expenses were higher by approximately $310,000 primarily due to higher utility costs; maintenance costs were higher by approximately $251,000; regulatory expenses were higher by approximately $222,000; and travel expenses were higher by approximately $61,000. Services Segment cost of goods sold increased ~~$1,318,000~~$1,285,000 or ~~17.7% primarily~~5.0% due to higher revenue. The overall increase in cost of goods sold was primarily due to the following: aggregated higher salaries/payroll related, outside services, and travel costs totaling approximately ~~$1,193,000;~~$1,886,000; higher depreciation expenses of $93,000; lower material and supplies, lab, regulatory and ~~regulatory~~disposal expenses totaling approximately ~~$24,000; higher depreciation expense totaling approximately $89,000 from additional equipment;~~$582,000; and ~~slightly higher~~lower general expenses by approximately ~~$12,000~~$112,000 in various categories. Included within cost of goods sold is depreciation and amortization expense of ~~$726,000~~$2,063,000 and ~~$439,000~~$1,373,000 for the ~~three~~nine months ended ~~March 31,~~September 30, 2023, and 2022, respectively.

Gross Profit

Gross profit for the quarter ended ~~March 31,~~September 30, 2023, increased ~~$1,373,000~~$1,479,000 over the ~~corresponding~~same period of 2022, as follows:

% % % %
(In thousands) 2023 Revenue 2022 Revenue Change 2023 Revenue 2022 Revenue Change
Treatment $ 1,252 13.0 $ 638 8.5 $ 614 $ 1,494 13.8 $ 1,967 22.2 $ (473 )
Nuclear Services
Services 1,757 16.7 998 11.8 759 3,055 27.6 1,103 11.5 1,952
Total $ 3,009 15.0 $ 1,636 10.3 $ 1,373 $ 4,549 20.8 $ 3,070 16.6 $ 1,479

Treatment Segment gross profit ~~increased~~decreased by ~~$614,000~~$473,000 or approximately ~~96.2%~~24.0% and gross margin ~~increased~~decreased to ~~13.0%~~13.8% from ~~8.5%~~22.2% primarily due to ~~higher~~lower averaged price waste from revenue ~~from higher waste volume.~~mix and the increase in fixed costs. Services Segment gross profit increased by ~~$759,000~~$1,952,000 or ~~76.1%~~177.0% and gross margin increased to ~~16.7%~~27.6% from ~~11.8%~~11.5% primarily due to higher revenue and improved margin projects. Our overall Services Segment gross margin is impacted by our current projects which are competitively bid on and ~~will~~therefore have varying margin structures.
27
Gross profit for the nine months ended September 30, 2023, increased $4,484,000 over the same period in 2022, as follows:
% %
(In thousands) 2023 Revenue 2022 Revenue Change
Treatment $ 5,237 15.8 $ 4,168 16.8 $ 1,069
Services 6,837 20.2 3,422 11.8 3,415
Total $ 12,074 18.0 $ 7,590 14.1 $ 4,484
Treatment Segment gross profit increased by $1,069,000 or 25.6% due to higher revenue. The decrease in gross margin to 15.8% from 16.8% was primarily due to lower averaged price waste from revenue mix and the increase in fixed costs. Services Segment gross profit increased by $3,415,000 or 99.8% and gross margin increased from 11.8% to 20.2% primarily due to higher revenue and improved margin projects. Our overall Services Segment gross margin is impacted by our current projects which are competitively bid and therefore have varying margin structures.

SG&A

SG&A expenses increased ~~$64,000~~$4,000 for the three months ended ~~March 31,~~September 30, 2023, as compared to the corresponding period for 2022, as follows:

(In thousands) 2023 % Revenue 2022 % Revenue Change
Administrative $ 1,670 — $ 1,687 — $ (17 )
Treatment 1,006 10.5 1,040 13.9 (34 )
Services 810 7.7 695 8.2 115
Total $ 3,486 17.3 $ 3,422 21.5 $ 64
27
(In thousands) 2023 %
Revenue 2022 %
Revenue Change
Administrative $ 1,916 — $ 1,826 — $ 90
Treatment 1,039 9.6 1,144 12.9 (105 )
Services 978 8.8 959 10.0 19
Total $ 3,933 18.0 $ 3,929 21.3 $ 4

Administrative SG&A expenses were ~~lower~~higher primarily due to ~~lower~~the following: salaries and payroll-related expenses were higher by approximately $205,000, primarily due to higher accrued incentives of approximately $178,000 in connection with the Company’s management incentive plans (“MIPs”); outside services expenses were lower by approximately ~~$71,000~~$85,000 resulting from fewer ~~consulting/~~audit/~~outside services matters. This overall~~consulting matters; and general expenses were lower ~~expense was offset primarily~~ by ~~higher payroll related expenses.~~approximately $30,000 in various categories. Treatment Segment SG&A expenses were lower primarily due to the following: outside services expenses were lower by approximately $19,000 as a result of fewer consulting matters; salaries and payroll related expenses were lower by approximately ~~$62,000 which was offset~~$92,000; travel expenses were lower by ~~overall~~approximately $3,000; and general expense were higher ~~general expenses in various categories.~~by approximately $9,000. The increase in Services Segment SG&A was primarily due to higher general and travel expenses. Included in SG&A expenses is depreciation and amortization expense of $20,000 and $26,000 for the three months ended September 30, 2023, and 2022, respectively.
SG&A expenses decreased $66,000 for the nine months ended September 30, 2023, as compared to the corresponding period for 2022, as follows:
(In thousands) 2023 %
Revenue 2022 %
Revenue Change
Administrative $ 5,281 — $ 5,278 — $ 3
Treatment 3,071 9.2 3,302 13.3 (231 )
Services 2,617 7.7 2,455 8.4 162
Total $ 10,969 16.4 $ 11,035 20.5 $ (66 )
28
Administrative SG&A expenses were slightly higher primarily due to the following: payroll-related expenses were higher by approximately $241,000, including an increase in accrued incentives of approximately $192,000 in connection with the Company’s MIPs and higher 401(k) matching expenses as payroll expenses in the first nine months of 2022 included more forfeitures of 401(k) plan matching funds contributed by us for former employees who failed to meet the 401(k) plan vesting requirements; outside services expenses were lower by approximately $187,000 as a result of fewer audit/consulting matters; general expenses were lower by approximately $42,000 in various categories; and travel expenses were lower by approximately $9,000. Treatment Segment SG&A expenses were lower primarily due to the following: outside services expenses were lower by approximately $83,000 due to fewer consulting matters; salaries and payroll related expenses were lower by approximately $210,000; travel expenses were lower by approximately $15,000; general expenses were higher by approximately $45,000 in various categories; and credit losses on accounts receivable were higher by approximately ~~$44,000,~~$32,000. The increase in SG&A expenses within our Services Segment was primarily due to the following: salaries/payroll-related expenses were higher by approximately $86,000 due to more administrative support functions required as the result of higher revenue; travel expenses were higher by approximately $25,000; and credit losses on accounts receivable were higher by approximately $72,000, as in the first quarter of 2022 our Services Segment collected on certain accounts that were previously deemed to be ~~uncollectible; travel~~uncollectible. Such increases were partially offset by decreases in general expenses ~~were higher by~~of approximately $10,000; outside services expense were slightly higher by approximately $6,000; and salaries and payroll related expenses were higher by approximately $55,000 due to more administrative support functions resulting from higher revenue. $21,000 in various categories. Included in SG&A expenses is depreciation and amortization expense of ~~$21,000~~$61,000 and ~~$17,000~~$60,000 for the ~~three~~nine months ended ~~March 31,~~September 30, 2023, and 2022, respectively.

Interest Income

Interest income increased by approximately ~~$116,000 in~~$117,000 and $376,000 for the ~~first quarter of~~three and nine months ended September 30, 2023, as compared to the corresponding period of 2022 due to higher interest earned from our finite risk sinking fund and interest received in connection with the refund that we received in March 2023 from the ERC program under the CARES Act (see a discussion of this refund, along with interest in “Overview” within this Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”).
~~Interest Expense~~
~~Interest expense increased approximately $18,000 in the first quarter of 2023~~respectively, as compared to the corresponding period of 2022 primarily due to higher interest ~~rates~~earned from the finite risk sinking fund. Interest income for the nine months ended September 30, 2023, also included approximately $60,000 received in March 2023 under the Employee Retention Credit (“ERC”) program under the CARES Act.
Interest Expense
Interest expense increased by approximately $42,000 and $66,000 for the three and nine months ended September 30, 2023, respectively, as compared to the corresponding period of 2022 due to interest incurred on the new $2,500,000 term loan dated July 31, 2023, under the Company’s credit facility. Interest expense was also higher in both periods from higher interest rate on our term loan ~~balance and revolver under our credit facility. Also, we~~dated May 8, 2020, which was offset by the declining term loan balance. The increase in interest expense for the nine months ended September 30, 2023, was also the result of interest incurred ~~interest~~ from advances made in May of 2022 from the capital line under our credit facility.

Income Taxes

We had income tax ~~benefits~~expenses of ~~approximately $204,000~~$254,000 and ~~$673,000~~$179,000 for continuing operations for the three months ended ~~March 31,~~September 30, 2023, and 2022, respectively, and income tax expense of $482,000 and income tax benefit of $147,000 for the nine months ended September 30, 2023, and 2022, respectively. Our effective tax ~~rate was~~rates were approximately ~~39.1%~~50.8% and ~~35.0%~~17.8% for the three months ended ~~March 31,~~September 30, 2023, and 2022, respectively, and 51.8% and 8.0% for the ~~corresponding period of~~nine months ended September 30, 2023, and 2022, respectively. Our effective tax rates for the three and nine months ended ~~March 31,~~September 30, 2023, ~~and 2022~~ were impacted by non-deductible expenses and state taxes.

Liquidity and Capital Resources

Our cash flow requirements during the ~~three~~nine months ended ~~March 31,~~September 30, 2023 were primarily financed by our operations, cash on hand (which included the ERC, along with interest, that we received in March ~~2023)~~2023 and proceeds from a new term loan dated July 31, 2023 in the amount of $2,500,000 provided to us under an amendment to our existing credit facility), and credit facility ~~availability.~~availability (See “Financing Activities” below for a discussion of an amendment to our credit facility that we entered into with our lender on July 31, 2023, which extended the maturity date of our credit facility and provided the new term loan to us, among other things). Our cash flow requirements for the next twelve months will consist primarily of general working capital needs, scheduled principal payments on our debt obligations, remediation projects, and planned capital expenditures. We plan to fund these requirements from our operations, credit facility availability, and cash on hand. We are continually reviewing operating costs and reviewing the possibility of further reducing operating costs and non-essential expenditures to bring them in line with revenue levels, when necessary. At ~~March 31,~~September 30, 2023, ~~we had~~our borrowing availability under our revolving credit facility ofwas approximately ~~$7,133,000~~$10,378,000, which included our cash and was based on ~~a percentage of~~our eligible receivables and ~~subject to certain reserves. Our borrowing availability~~was net of ~~$7,133,000 at March 31, 2023 included~~approximately $3,200,000 in outstanding standby letters of credit and a ~~requirement from our lender that we maintain a minimum of $3,000,000~~$750,000 indefinite reduction in borrowing availability ~~under~~that our ~~revolving credit until~~lender imposed pursuant to the ~~minimum fixed FCCR requirement for~~July 31, 2023 amendment of the ~~quarter ended June 30, 2023 has been met and certified to our lender. Although we~~Loan Agreement. We believe that our cash flows from operations, our available liquidity from our credit facility, and our cash on hand should be sufficient to fund our operations for the next twelve months, we continue to work toward improving our liquidity by either amending our existing lines of credit, obtaining new term loans or entering into equity transactions. There are no assurances that we will be successful in increasing our liquidity through these efforts.

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The following table reflects the cash flow activities during the first ~~three~~nine months of 2023:

(In thousands)
Cash provided by operating activities of continuing operations $ 1,762 $ 452
Cash used in operating activities of discontinued operations (198 ) (478 )
Cash used in investing activities of continuing operations (748 ) (1,386 )
Cash used in financing activities of continuing operations (204 )
Cash provided by financing activities of continuing operations 1,890
Increase in cash and finite risk sinking fund (restricted cash) $ 612 $ 478

At ~~March 31,~~September 30, 2023, we were in a positive cash position with no revolving credit balance. At ~~March 31,~~September 30, 2023, we had cash on hand of approximately ~~$2,411,000.~~$1,988,000.

Operating Activities
Accounts receivable, net of credit losses, totaled ~~$10,881,000~~$15,342,000 at ~~March 31,~~September 30, 2023, an increase of ~~$1,517,000~~$5,978,000 from the December 31, 2022 balance of $9,364,000. The increase was attributed to increased revenue, timing of invoicing, and our accounts receivable collection. Our contracts with our customers are subject to various payment terms and conditions. Our accounts receivable at ~~March 31,~~September 30, 2023, include invoices for work performed for a certain Canadian project that ~~remain~~remains outstanding ~~and~~which we expect to collect, subject to ~~negotiations~~finalization of a written settlement agreement (See discussion under “Known Trends and Uncertainties – Perma-Fix Canada Inc. (“PF Canada”)”) for a discussion ~~as to this certain~~of the account receivable.
Prepaid and other assets totaled $3,800,000 at March 31, 2023, a decrease of $1,605,000 from the December 31, 2022 balance of $5,405,000. The decrease was primarily due to the receipt of the ERC of $1,975,000 in March 2023 that we applied for during the third quarter of 2022.

Accounts payable totaled ~~$11,812,000~~$9,614,000 at ~~March 31,~~September 30, 2023, ~~an increase~~a decrease of ~~$1,487,000~~$711,000 from the December 31, 2022 balance of $10,325,000. Our accounts payable are impacted by the timing of payments as we are continually managing payment terms with our vendors to maximize our cash position throughout all segments.

We had working capital of ~~$339,000~~$4,748,000 (which included working capital of our discontinued operations) at ~~March 31,~~September 30, 2023, as compared to working capital of $818,000 at December 31, 2022. The ~~decrease~~increase in our working capital was primarily due to increases in our accounts ~~payable~~ and ~~accruals which were mostly~~unbilled receivables from improved operations. The overall increase was offset by ~~increases~~the increase in our ~~accounts and unbilled receivables.~~accrued expenses.

Investing Activities
For the ~~three~~nine months ended ~~March 31,~~September 30, 2023, our purchases of capital equipment totaled approximately ~~$798,000,~~$1,695,000, of which ~~$50,000~~$309,000 was subject to financing, with the remaining funded from cash from operations and our credit facility. We have budgeted approximately $2,000,000 for 2023 capital expenditures primarily for our Treatment and Services Segments to maintain operations and regulatory compliance requirements and support revenue growth. Certain of these budgeted projects may either be delayed until later years or deferred altogether. We plan to fund our capital expenditures from cash from operations, borrowing availability under our credit facility, and/or financing. The initiation and timing of projects are also determined by financing alternatives or funds available for such capital projects.

During March 2022, we signed a joint venture term sheet addressing plans to partner with Springfields Fuels Limited (“SFL”), an affiliate of Westinghouse Electric Company LLC, to develop and manage a nuclear waste-materials treatment facility (the “Facility”) in the United Kingdom. The Facility is for the purpose of expanding the partners’ waste treatment capabilities for the European nuclear market. It is expected that upon finalization of a partnership agreement, SFL will have an ownership interest of fifty-five ~~(55)~~ percent (55%) and our interest will be forty-five ~~(45) percent.~~percent (45%). The finalization, form and capitalization of this unpopulated partnership is subject to numerous conditions, including but not limited to, winning a certain contract, completion and execution of a definitive agreement and facility design, granting of required regulatory, lender or permitting approvals and updated cost and profitability analysis based on current and forecast future economic conditions. Upon finalization of this venture, we will be required to make an investment in this venture. The amount of our investment, the period ofin which it is to be made and the method of funding are to be determined.

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Financing Activities
We entered into a Second Amended and Restated Revolving Credit, Term Loan and Security Agreement, dated May 8, 2020 (“Loan Agreement”), with PNC National Association (“PNC”), acting as agent and lender. The Loan Agreement, as amended (including the two amendments that we entered into with PNC in 2023 described below), provides us with the following credit facility with a maturity date of May 15, ~~2024:~~2027: (a) up to $12,500,000 revolving credit (“revolving credit”) ~~(see a discussion of an amendment that we entered into~~, with ~~our lender on March 21, 2023 which reduced~~ the ~~maximum revolving credit to $12,500,000 from the previous amount of $18,000,000). The~~ maximum that we can borrow under the revolving credit is based on a percentage of eligible receivables (as defined) at any one time reduced by outstanding standby letters of credit and borrowing reductions that our lender may impose from time to time; (b) a term loan (“~~term loan”~~Term Loan 1”) dated May 8, 2020, of approximately $1,742,000, requiring monthly installments of $35,547; (c) a term loan (“Term Loan 2”) of $2,500,000 dated July 31, 2023, requiring monthly installments of $41,667; and ~~(c)~~(d) a capital expenditure line (“~~capital loan”~~Capital Line”) of up to $1,000,000 with advances on the line, subject to certain limitations, permitted for up to twelve months starting May 4, 2021 (the “Borrowing Period”)~~. Only~~, with interest ~~was~~only payable on advances during the Borrowing Period. ~~Amount~~Amounts advanced under the ~~capital line~~Capital Line at the end of the Borrowing Period totaled approximately $524,000, ~~which requires~~requiring monthly installments inof principal of approximately $8,700 plus interest, ~~starting~~commencing June 1, 2022. ~~At March 31, 2023, balance on the capital line was approximately $437,000. At the maturity date of the Loan Agreement, as amended, any unpaid principal balance plus interest, if any, will become due.~~

On March 21, 2023, we entered into an amendment to our Loan Agreement, as amended, with our lender which ~~provides,~~provided, among other things, the following:

● removed the ~~FCCR~~quarterly fixed charge coverage ratio (“FCCR”) testing requirement for the fourth quarter of 2022 and ~~removes~~removed the FCCR testing requirement for the first quarter of 2023;
● reduced the maximum revolving credit line under the credit facility from $18,000,000 to $12,500,000;
● ● ~~reinstates~~reinstated the quarterly FCCR testing requirement starting in the second quarter of 2023 using a trailing twelve-month period (with no change to the minimum 1.15:1 ratio requirement for each quarter); and
● ● ~~requires~~required maintenance of a minimum of $3,000,000 in borrowing availability under the revolving credit until the minimum FCCR requirement for the quarter ended June 30, 2023 has been met and certified to the ~~lender.~~lender (we met our FCCR requirement in the second quarter of 2023 which was certified to our lender and therefore, this requirement is no longer applicable under our Loan Agreement, as amended).

In connection with the March 2023 amendment, we paid our lender a fee of $25,000 which is being amortized over the remaining term of the Loan Agreement, as amended, as interest expense-financing fees.

On July 31, 2023, we entered into a further amendment of the Loan Agreement, as amended, with our lender which provided, among other things, the following:
● extended the maturity date of the Loan Agreement, as amended, to May 15, 2027, from May 15, 2024;
● an additional term loan (“Term Loan 2”) to us in the amount of $2,500,000, requiring monthly installments of approximately $41,667. The annual rate of interest due on Term Loan 2 is at prime plus 3.00% or SOFR (as defined in the Loan Agreement, as amended) plus 4.00% plus an SOFR Adjustment applicable for an interest period selected by us. A SOFR Adjustment rate of 0.10% and 0.15% is applicable for a one-month interest period and three-month period, respectively, that may be selected by us;
● removed the minimum Tangible Adjusted Net Worth (as defined in the Loan Agreement) covenant requirement;
● placed an indefinite reduction in borrowing availability of $750,000; and
● allows for up to $2,500,000 in capital expenditure made in fiscal year 2023 and thereafter to be treated as financed capital expenditure in the Company’s quarterly FCCR covenant calculation requirement.
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At maturity of the Loan Agreement, as amended, any unpaid principal balance plus interest, if any, will become due.
Pursuant to the amendment dated July 31, 2023, we have agreed to pay PNC 1.0% of the total financing under the Loan Agreement, as amended, in the event we pay off our obligations on or before July 31, 2024, and 0.5% of the total financing if we pay off our obligations after July 31, 2024, to and including July 31, 2025. No early termination fee shall apply if we pay off our obligations under the amended Loan Agreement after July 31, 2025.
In connection with amendment dated July 31, 2023, we paid our lender a fee of $100,000 which is being amortized over the remaining term of the Loan Agreement, as amended, as interest expense-financing fees.
Pursuant to the Loan Agreement, as amended, ~~payment of~~the annual rate of interest due on the revolving credit is at prime ~~(8.00%~~(8.50% at ~~March 31,~~September 30, 2023) plus 2% or ~~Term Secured Overnight Finance Rate (“SOFR”) (as defined in the Loan Agreement, as amended)~~SOFR plus 3.00% plus an SOFR Adjustment applicable for an interest period selected by ~~us and payment of~~us. The annual rate of interest due on ~~the term loan~~Term Loan 1 and the ~~capital expenditure~~Capital line is at prime plus 2.50% or Term SOFR Rate plus 3.50% plus an SOFR Adjustment applicable for an interest period selected by us. A SOFR Adjustment rates of 0.10% and 0.15% are applicable for a one-month interest period and three-month period, respectively, that may be selected by us.
~~After May 7, 2022, the Company may terminate its~~ See payment of annual rate of interest due on Term Loan ~~Agreement, as amended, upon 90 days’ prior written notice upon payment in full of our obligations~~2 under the ~~Loan Agreement,~~amendment dated July 31, 2023, as ~~amended, with no early termination fees.~~discussed above.
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Our credit facility under our Loan Agreement, as amended, ~~with PNC~~ contains certain financial covenants, along with customary representations and warranties. A breach of any of these financial covenants, unless waived by ~~PNC,~~our lender, could result in a default under our credit facility allowing our lender to immediately require the repayment of all outstanding debt under our credit facility and terminate all commitments to extend further credit. We were not required to perform testing of the FCCR requirement in the first quarter of 2023 pursuant to the March 21, 2023 amendment as discussed ~~above,~~above. We otherwise we met all of our other financial covenant requirements. We met all of our covenant requirements in the second and third quarters of 2023 and we expect to meet our ~~quarterly financial~~ covenant requirements ~~for~~in the next twelve ~~months under our Loan Agreement, as amended.~~months.

Off Balance Sheet Arrangements

From time to time, we are required to post standby letters of credit and various bonds to support contractual obligations to customers and other obligations, including facility closures. At ~~March 31,~~September 30, 2023, the total amount of standby letters of credit outstanding totaled approximately ~~$3,016,000~~$3,200,000 and the total amount of bonds outstanding totaled approximately ~~$27,321,000.~~$36,428,000. We also provide closure and post-closure requirements through a financial assurance policy for certain of our Treatment Segment facilities through AIG. At ~~March 31,~~September 30, 2023, the closure and post-closure requirements for these facilities were approximately ~~$22,454,000.~~$22,461,000.

Critical Accounting Policies and Estimates

There were no significant changes in our accounting policies or critical accounting estimates that are discussed in our Annual Report on Form 10-K for the year ended December 31, 2022.

Recent Accounting Pronouncements

See “Note 2 – Summary of Significant Accounting Policies” in the “Notes to Condensed Consolidated Financial Statements” for the recent accounting ~~pronouncements~~pronouncement that will be adopted in future periods.

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Known Trends and Uncertainties

Significant Customers. Our Treatment and Services Segments have significant relationships with the U.S governmental authorities through contracts entered into indirectly as subcontractors for others who are prime contractors or directly as the prime contractor to government authorities. We also had significant relationships with Canadian government authorities primarily through TOAs entered into with Canadian government authorities. Project work under all TOAs with Canadian government authorities has ~~substantially~~ been completed. The contracts that we are a party to with others as subcontractors to the U.S federal government or directly with the U.S federal government generally provide that the government may terminate the contract at any time for convenience at the government’s option. The contracts/TOAs that we ~~are/~~were a party to with Canadian governmental authorities also generally provide that the government authorities may terminate the contracts/TOAs at any time for any reason for convenience. Our inability to continue under existing contracts that we have with the U.S government (directly or indirectly as a subcontractor) or significant reductions in the level of governmental funding in any given year could have a material adverse impact on our operations and financial condition.
We performed services relating to waste generated by government clients (domestic and foreign (primarily Canadian)), either ~~indirectly as a subcontractor or~~ directly as a prime contractor or indirectly for others as a subcontractor to government entities, representing approximately ~~$17,247,000~~$16,234,000 or ~~85.8%~~74.2% and $55,380,000 or 82.6% of our total ~~revenue~~revenues generated during the three and nine months ended ~~March 31,~~September 30, 2023, respectively, as compared to ~~$14,158,000~~$15,279,000 or ~~89.0%~~82.7% and $46,488,000 or 86.3% of our total ~~revenue~~revenues generated during the ~~corresponding period of 2022.~~
~~Perma-Fix Canada, Inc. (“PF Canada”)~~
During the fourth quarter of 2021, PF Canada received a Notice of Termination (“NOT”) from Canadian Nuclear Laboratories, LTD. (“CNL”) on a TOA that PF Canada entered into with CNL in May 2019 for remediation work within Ontario, Canada (“Agreement”). The NOT was received after work under the TOA was substantially completedthree and work under the TOA has since been completed. CNL may terminate the TOA at any time for convenience. As of March 31, 2023, PF Canada has approximately $1,855,000 in unpaid receivables due from CNL as a result of work performed under the TOA. Additionally, CNL has approximately $1,061,000 in contractual holdback under the TOA that is payable to PF Canada. CNL also established a bond securing approximately $1,900,000 (CAD) to cover certain issues raised in connection with the TOA. Under the TOA, CNL may be entitled to set off certain costs and expenses incurred by CNL in connection with the termination of the TOA, including the bond as discussed above, against amounts owed to PF Canada for work performed by PF Canada or its subcontractors. PF Canada continues to be in discussions with CNL to finalize the amounts due to PF Canada under the TOA and continues to believe these amounts are due and payable to PF Canada.nine months ended September 30, 2022, respectively.

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Potential U.S Government Shutdown. As discussed above, a significant portion of our revenue is generated through contracts entered into indirectly as subcontractors for others who are prime contractors or directly as the prime contractor to U.S. government authorities. As previously disclosed, if Congress is unable to enact FY 2024 appropriation bills or extend the continuing resolutions to fund government spending by November 17, 2023, the U.S. government will enter into a shutdown. The full impact of any government shutdown is uncertain. However, if a government shutdown were to occur and were to continue an extended period, our financial results of operations could be negatively impacted by delays in procurement actions, waste shipments and project delays on newly awarded projects.
Potential Partnership with Springfields Fuels Limited. As discussed above, we have signed a term sheet addressing plans to partner with Springfields Fuels Limited, an affiliate of Westinghouse Electric Company LLC, to develop and manage a nuclear waste-materials treatment facility in the United Kingdom. See “Liquidity and Capital Resources – Investing Activities” of this MD&A for a discussion of this transaction.

Perma-Fix Canada Inc. (“PF Canada”). During the fourth quarter of 2021, PF Canada received a Notice of Termination (“NOT”) from Canadian Nuclear Laboratories, LTD. (“CNL”) on a Task Order Agreement (“TOA”) that PF Canada entered into with CNL in May 2019 for remediation work within Ontario, Canada (“Agreement”). The NOT was received after work under the TOA was substantially completed and work under the TOA has since been completed. CNL may terminate the TOA at any time for convenience. As of September 30, 2023, PF Canada has approximately $2,287,000 in unpaid receivables due from CNL as a result of work performed under the TOA. Additionally, CNL has approximately $1,056,000 in contractual holdback under the TOA that is payable to PF Canada. CNL and PF Canada have completed discussions and reached an agreement in principle to settle related matters under which, subject to execution of a written settlement agreement, the noted unpaid receivables and contractual holdback amounts will be paid to PF Canada.
Potential International Contracts
We continue to aggressively bid, either individually or with others as a joint venture partner, on potential contracts within the international markets. At any given time, we are awaiting decisions on any number of outstanding bids by prospective customers. Certain of these outstanding bids, if awarded, could be material to the Company.
Inflation and Supply Chain. Our financial results have been negatively impacted ~~from~~by various macroeconomic factors, including the effects of ~~inflation,~~inflation, supply chain issues, labor ~~shortage,~~shortages, and higher interest rates, ~~from the countries’ macroeconomic concerns~~ due, in part, ~~from~~to the continued impact of COVID-19. Continued increases in any of our operating costs, including utility, transportation, wage rates, and supply costs, may further increase our overall cost of goods sold or operating expenses. ~~Additionally, as previously disclosed, labor shortages and supply chain issues had previously impacted production at certain of our facilities which impacted our financial results.~~ We may attempt to increase our ~~sales~~service and treatment prices in order to maintain satisfactory margin from the effect of these factors isas discussed above; however, competitive pressures in our industry may have the effect of inhibiting our ability to reflect these increased costs in the prices of our services that we provide to our customers and therefore reduce our profitability.

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Environmental Contingencies

We are engaged in the waste management services segment of the pollution control industry. As a participant in the on-site treatment, storage and disposal market and the off-site treatment and services market, we are subject to rigorous federal, state and local regulations. These regulations mandate strict compliance and therefore are a cost and concern to us. Because of their integral role in providing quality environmental services, we make every reasonable attempt to maintain complete compliance with these regulations; however, even with a diligent commitment, we, along with many of our competitors, may be required to pay fines for violations or investigate and potentially remediate our waste management facilities.

We routinely use third party disposal companies, who ultimately destroy, or secure landfill for, residual materials generated at our facilities or at a client’s site. In the past, numerous third-party disposal sites have improperly managed waste and consequently require remedial action; consequently, any party utilizing these sites may be liable for some or all of the remedial costs. Despite our aggressive compliance and auditing procedures for disposal of wastes, we could ~~further~~ be notified, in the future, that we are a potentially responsible party (“PRP”) at a remedial action site, which could have a material adverse effect.

We have three environmental remediation projects, all within our discontinued operations, which principally entail the removal/remediation of contaminated soil, and, in most cases, the remediation of surrounding ground water. We expect to fund the expenses to remediate these sites from funds generated from operations. At ~~March 31,~~September 30, 2023, we had total accrued environmental remediation liabilities of $861,000 with no change from the December 31, 2022 balance. At ~~March 31,~~September 30, 2023, ~~$112,000~~$77,000 of the total accrued environmental liabilities was recorded as current.
~~Item 3.~~ ~~Quantitative and Qualitative Disclosures about Market Risks~~
Item 3. Quantitative and Qualitative Disclosures about Market Risks

Not required for smaller reporting companies.

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Item 4. Controls and Procedures

~~Item 4.~~ ~~Controls and Procedures~~
(a) Evaluation of disclosure controls and procedures.

WWee maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our periodic reports filed with the Securities and Exchange Commission is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission and that such information is accumulated and communicated to our management. As of the end of the period covered by this report, we carried out an evaluation with the participation of our Principal Executive Officer and Principal Financial Officer. Based on this recent assessment, our Principal Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended) were effective as of ~~March 31,~~September 30, 2023.
(b)
Changes in internal control over financial ~~reporting~~reporting.
There was no other change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during our most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
There was no other change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during our most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
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PART II – OTHER INFORMATION
~~Item 1.~~ ~~Legal Proceedings~~

Item 1. Legal Proceedings

There are no material legal proceedings pending against us and/or our subsidiaries not previously reported by us in Item 3 of our Form 10-K for the year ended December 31, 2022. Additionally, there has been no other material change in legal proceedings previously disclosed by us in our Form 10-K for the year ended December 31, 2022.
~~Item 1A.~~ ~~Risk Factors~~

Item 1A. Risk Factors
There has been no other material change from the risk factors previously disclosed in our Form 10-K for the year ended December 31, 2022, ~~except~~and our Form 10-Q for the ~~following under “Risks Relating to our Business Operations.”~~quarter ended March 31, 2023.

~~Climate change could have a negative impact to the Company’s result of operations and financial condition.~~Item 6.
Climate change may present both immediate and long-term risks to the Company and our customers and the risks may increase over time. Climate risks can arise from both physical risks (those risks related to the physical effects of climate change) and transition risks (risks related to governmental regulatory requirements, legal technology, market and reputational changes from a transition to a low carbon economy). Climate change could have a material, adverse effect on environmental companies like ours that are involved in the treatment, disposal and other services related to hazardous waste, radioactive waste and/or mixed (waste that contain both hazardous and radioactive) waste by changing or restricting how we perform our services or what services we can perform or taking action that materially increases our costs to do business in order to regulate or reduce climate change.
Exhibits
~~The collapse of certain U.S. banks and potentially other financial institutions could adversely affect our business, financial condition and results of operations.~~

Recent negative developments affecting the banking industry, and resulting media coverage, have eroded confidence in the banking system. Concerns regarding the financial systems could result in less favorable commercial financing terms, including higher interest rates, costs, tighter financial and operating covenants, and systemic limitations on access to credit and liquidity sources, thereby making it more difficult for us to acquire capital on acceptable terms, when needed. Additionally, recent developments affecting the banking industry have generated significant market volatility and consumer confidence which in turn, could result in reduced demands for our services which could negatively impact our business operations, financial condition, and results of operations.
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~~Item 6.~~(a) Exhibits

~~(a)~~ ~~Exhibits~~
~~3(ii)~~4.1 Second Amended and Restated Bylaws of Perma-Fix Environmental Services, Inc., as amended effective April 20, 2023, as incorporated by reference from Exhibit 3(ii) to the Company’s Form 8-K filed on April 26, 2023.
~~4.1~~ ~~Sixth~~Seventh Amendment to Second Amended and Restated Revolving Credit, Term Loan and Security Agreement dated ~~March 21,~~July 31, 2023, between Perma-Fix Environmental Services, Inc. and PNC Bank, National Association, as incorporated by reference from Exhibit ~~4.3~~4.1 to the Company’s ~~2022~~ Form ~~10-K~~10-Q for the quarter ended June 30, 2023, filed on ~~March 23,~~August 3, 2023.
~~10.1~~ 4.2 Term Note dated July 31, 2023, ~~Incentive Compensation Plan for Chief Executive Officer, effective January 1, 2023,~~between Perma-Fix Environmental Services, Inc. and PNC Bank, National Association, as incorporated by reference from Exhibit ~~99.1~~4.2 to the Company’s Form ~~8-K~~10-Q for the quarter ended June 30, 2023, filed on ~~January 23, 2023. CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN EXCLUDED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED.~~
~~10.2~~ 2023 Incentive Compensation Plan for Chief Financial Officer, effective January 1, 2023, as incorporated by reference from Exhibit 99.2 to the Company’s Form 8-K filed on January 23, 2023. CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN EXCLUDED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED.
~~10.3~~ 2023 Incentive Compensation Plan for Executive Vice President of Strategic Initiatives, effective January 1, 2023, as incorporated by reference from Exhibit 99.3 to the Company’s Form 8-K filed on January 23, 2023. CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN EXCLUDED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED.
~~10.4~~ 2023 Incentive Compensation Plan for Executive Vice President of Nuclear and Technical Services, effective January 1, 2023, as incorporated by reference from Exhibit 99.4 to the Company’s Form 8-K filed on January 23, 2023. CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN EXCLUDED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED.
~~10.5~~ 2023 Incentive Compensation Plan for Executive Vice President of Waste Treatment Operations, effective January 1, 2023, as incorporated by reference from Exhibit 99.5 to the Company’s Form 8-K filed on January 23, 23. CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN EXCLUDED BECAUSE IT IS NOT MATERIAL AND WOULD LLIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED.
~~10.6~~ Incentive Stock Option Agreement between Perma-Fix Environmental Services, Inc. and Chief Executive Officer, dated January 19, 2023, as incorporated by reference from Exhibit 99.6 to the Company’s Form 8-K filed on January 23,August 3, 2023.
~~10.7~~ 31.1 Incentive Stock Option Agreement between Perma-Fix Environmental Services, Inc. and Chief Financial Officer, dated January 19, 2023, as incorporated by reference from Exhibit 99.7 to the Company’s Form 8-K filed on January 23, 2023.
~~10.8~~ Incentive Stock Option Agreement between Perma-Fix Environmental Services, Inc. and EVP of Strategic Initiatives, dated January 19, 2023, as incorporated by reference from Exhibit 99.8 to the Company’s Form 8-K filed on January 23, 2023.
~~10.9~~ Incentive Stock Option Agreement between Perma-Fix Environmental Services, Inc. and EVP of Nuclear and Technical Services, dated January 19, 2023, as incorporated by reference from Exhibit 99.9 to the Company’s Form 8-K filed on January 23, 2023.
~~10.10~~ Incentive Stock Option Agreement between Perma-Fix Environmental Services, Inc. and EVP of Waste Treatment Operations, dated January 19, 2023, as incorporated by reference from Exhibit 99.10 to the Company’s Form 8-K filed on January 23, 2023.
~~10.11~~ Employment Agreement dated April 20, 2023 between Mark Duff, Chief Executive Officer and Perma-Fix Environmental Services, Inc., as incorporated by reference from Exhibit 99.1 to the Company’s Form 8-K filed on April 26, 2023.
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~~10.12~~ Employment Agreement dated April 20, 2023 between Ben Naccarato, Chief Financial Officer and Perma-Fix Environmental Services, Inc., as incorporated by reference from Exhibit 99.2 to the Company’s Form 8-K filed on April 26, 2023.
~~10.13~~ Employment Agreement dated April 20, 2023 between Dr. Louis Centofanti, EVP of Strategic Initiatives and Perma-Fix Environmental Services, Inc., as incorporated by reference from Exhibit 99.3 to the Company’s Form 8-K filed on April 26, 2023.
~~10.14~~ Employment Agreement dated April 20, 2023 between Andrew Lombardo, EVP of Nuclear and Technical Services and Perma-Fix Environmental Services, Inc., as incorporated by reference from Exhibit 99.4 to the Company’s Form 8-K filed on April 26, 2023.
~~10.15~~ Employment Agreement dated April 20, 2023 between Richard Grondin, EVP of Waste Treatment Operations and Perma-Fix Environmental Services, Inc., as incorporated by reference from Exhibit 99.5 to the Company’s Form 8-K filed on April 26, 2023.
~~31.1~~ Certification by Mark Duff, Chief Executive Officer of the Company pursuant to Rule 13a-14(a) or 15d-14(a).
31.2 Certification by Ben Naccarato, Chief Financial Officer of the Company pursuant to Rule 13a-14(a) or 15d-14(a).
32.1 Certification by Mark Duff, Chief Executive Officer of the Company furnished pursuant to 18 U.S.C. Section 1350.
32.2 Certification by Ben Naccarato, Chief Financial Officer of the Company furnished pursuant to 18 U.S.C. Section 1350.
101.INS Inline XBRL Instance Document*Document-the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document*
101.SCH Inline XBRL Taxonomy Extension Schema Document*
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document*
101.LAB Inline XBRL Taxonomy Extension Labels Linkbase Document*
101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document*
104 Cover Page Interactive Data File (formatted as an Inline XBRL document and included in Exhibit 101).
* Pursuant to Rule 406T of Regulation S-T, the Inline Interactive Data File in Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purpose of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
35
SIGNATURES
Pursuant to the requirements of the Securities ~~and~~ Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

PERMA-FIX ENVIRONMENTAL SERVICES

Date: ~~May 10,~~November 2, 2023 By: /s/ Mark Duff

Mark Duff
President and Chief (Principal) Executive Officer

Date: ~~May 10,~~November 2, 2023 By: /s/ Ben Naccarato
Ben Naccarato
Chief (Principal) Financial Officer

36

(Amounts in Thousands)	2023			2022
	Three Months Ended March 31,
(Amounts in Thousands)	2023			2022

Net loss	$	(411	)	$	(1,343	)
Other comprehensive income:
Foreign currency translation gain		7			26
Total other comprehensive income		7			26

Comprehensive loss	$	(404	)		(1,317	)

	Shares		Amount		Capital		Treasury			Loss			Deficit			Equity
	Common Stock				Additional Paid-In		Common Stock Held In			Accumulated Other Comprehensive			Accumulated			Total Stockholders’			Common Stock				Additional Paid-In		Common Stock Held In			Accumulated Other Comprehensive			Accumulated			Total Stockholders’
	Shares		Amount		Capital		Treasury			Loss			Deficit			Equity			Shares		Amount		Capital		Treasury			Loss			Deficit			Equity

Balance at December 31, 2022		13,332,398	$	13	$	115,209	$	(88	)	$	(165	)	$	(77,436	)	$	37,533			13,332,398	$	13	$	115,209	$	(88	)	$	(165	)	$	(77,436	)	$	37,533
Net loss		—		—		—		—			—			(411	)		(411	)		-		-		-		-			-			(411	)		(411	)
Foreign currency translation		—		—		—		—			7			—			7			-		-		-		-			7			-			7
Issuance of Common Stock for services		33,319		—		118		—			—			—			118			33,319		-		118		-			-			-			118
Issuance of Common Stock upon exercise
of options		31,719		—		7		—			—			—			7
Issuance of Common Stock upon exercise of options		31,719		—		7		—			—			—			7			31,719		-		7		-			-			-			7
Stock-Based Compensation		—		—		118		—			—			—			118			-		-		118		-			-			-			118
Balance at March 31, 2023		13,397,436	$	13	$	115,452	$	(88	)	$	(158	)	$	(77,847	)	$	37,372			13,397,436	$	13	$	115,452	$	(88	)	$	(158	)	$	(77,847	)	$	37,372
Net Income																				-		-		-		-			-			474			474
Foreign currency translation																				-		-		-		-			46			-			46
Issuance of Common Stock for services																				10,171		-		119		-			-			-			119
Issuance of Common Stock upon exercise of options																				155,136		1		93		-			-			-			94
Stock-Based Compensation																				-		-		125		-			-			-			125
Balance at June 30, 2023																				13,562,743	$	14	$	115,789	$	(88	)	$	(112	)	$	(77,373	)	$	38,230
Net Income																				-		-		-		-			-			341			341
Foreign currency translation																				-		-		-		-			(57	)		-			(57	)
Issuance of Common Stock for services																				10,712		-		119		-			-			-			119
Issuance of Common Stock upon exercise of options																				15,478		-		49		-			-			-			49
Stock-Based Compensation																				-		-		149		-			-			-			149
Balance at September 30, 2023																				13,588,933	$	14	$	116,106	$	(88	)	$	(169	)	$	(77,032	)	$	38,831

Balance at December 31, 2021		13,222,552	$	13	$	114,307	$	(88	)	$	(28	)	$	(73,620	)	$	40,584			13,222,552	$	13	$	114,307	$	(88	)	$	(28	)	$	(73,620	)	$	40,584
Balance		13,222,552	$	13	$	114,307	$	(88	)	$	(28	)	$	(73,620	)	$	40,584
Net loss		—		—		—		—			—			(1,343	)		(1,343	)		-		-		-		-			-			(1,343	)		(1,343	)
Foreign currency translation		—		—		—		—			26			—			26			-		-		-		-			26			-			26
Issuance of Common Stock for services		19,520		—		123		—			—			—			123			19,520		-		123		-			-			-			123
Stock-Based Compensation		—		—		102		—			—			—			102			-		-		102		-			-			-			102
Balance at March 31, 2022		13,242,072	$	13	$	114,532	$	(88	)	$	(2	)	$	(74,963	)	$	39,492			13,242,072	$	13	$	114,532	$	(88	)	$	(2	)	$	(74,963	)	$	39,492
Net loss																				-		-		-		-			-			(1,445	)		(1,445	)
Foreign currency translation																				-		-		-		-			(67	)		-			(67	)
Issuance of Common Stock upon exercise of options (cashless)																				16,526		-		-		-			-			-			-
Issuance of Common Stock for services																				21,667		-		120		-			-			-			120
Stock-Based Compensation																				-		-		103		-			-			-			103
Balance at June 30, 2022																				13,280,265	$	13	$	114,755	$	(88	)	$	(69	)	$	(76,408	)	$	38,203
Balance		13,242,072	$	13	$	114,532	$	(88	)	$	(2	)	$	(74,963	)	$	39,492			13,280,265	$	13	$	114,755	$	(88	)	$	(69	)	$	(76,408	)	$	38,203
Net Income																				-		-		-		-			-			664			664
Net income (loss)																				-		-		-		-			-			664			664
Foreign currency translation																				-		-		-		-			(135	)		-			(135	)
Issuance of Common Stock upon exercise of options																				2,400		-		13		-			-			-			13
Issuance of Common Stock for services																				23,085		-		120		-			-			-			120
Stock-Based Compensation																				-		-		105		-			-			-			105
Balance at September 30, 2022																				13,305,750	$	13	$	114,993	$	(88	)	$	(204	)	$	(75,744	)	$	38,970
Balance																				13,305,750	$	13	$	114,993	$	(88	)	$	(204	)	$	(75,744	)	$	38,970


Revenue by Contract Type
(In thousands)	Three Months Ended						Three Months Ended						Three Months Ended						Three Months Ended
	March 31, 2023						March 31, 2022						September 30, 2023						September 30, 2022
	Treatment		Services		Total		Treatment		Services		Total		Treatment		Services		Total		Treatment		Services		Total
Fixed price	$	9,594	$	8,647	$	18,241	$	7,479	$	5,761	$	13,240	$	10,795	$	10,188	$	20,983	$	8,877	$	6,892	$	15,769
Time and materials		—		1,866		1,866		—		2,675		2,675		-		894		894		-		2,703		2,703
Total	$	9,594	$	10,513	$	20,107	$	7,479	$	8,436	$	15,915	$	10,795	$	11,082	$	21,877	$	8,877	$	9,595	$	18,472
Revenue	$	9,594	$	10,513	$	20,107	$	7,479	$	8,436	$	15,915

Revenue by generator
(In thousands)	Three Months Ended						Three Months Ended
	March 31, 2023						March 31, 2022
	Treatment		Services		Total		Treatment		Services		Total
Domestic government	$	7,257	$	9,718	$	16,975	$	5,815	$	8,245	$	14,060
Domestic commercial		2,206		597		2,803		1,436		162		1,598
Foreign government		95		177		272		92		6		98
Foreign commercial		36		21		57		136		23		159
Total	$	9,594	$	10,513	$	20,107	$	7,479	$	8,436	$	15,915
Revenue	$	9,594	$	10,513	$	20,107	$	7,479	$	8,436	$	15,915

					Year-to-date		Year-to-date
(In thousands)	September 30, 2023		December 31, 2022		Change ($)		Change (%)
Contract assets
Unbilled receivables - current	$	9,336	$	6,062	$	3,274		54.0	%

Contract liabilities
Deferred revenue	$	7,765	$	4,813	$	2,952		61.3	%

	Operating Leases			Finance Leases			Operating Leases			Finance Leases
Weighted average remaining lease terms (years)		6.1			3.0			5.7			3.2

Weighted average discount rate		7.8	%		5.5	%		7.5	%		7.0	%


	Amount		Amount
Year	(In thousands)		(In thousands)

2023 (Remaining)	$	140	$	30
2024		62		62
2025		26		26
2026		25		25
2027		22		22

	2023		2022
Stock Options	Three Months Ended March 31,
	2023		2022
Employee Stock Options	$	86,000	$	86,000
Director Stock Options		32,000		16,000
Total	$	118,000	$	102,000

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ⁽²⁾		Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ⁽²⁾
Options outstanding January 1, 2023		1,018,400		$	5.02				-		1,018,400		$	5.02				-
Granted		295,000		$	3.95						365,000		$	3.19
Exercised		(44,400	)	$	3.56			$	370,196		(282,400	)	$	3.70			$	2,118,892
Forfeited/expired		(4,500	)	$	3.90
Forfeited/expired/cancelled											(64,500	)	$	3.67
Options outstanding end of period ⁽¹⁾		1,264,500		$	4.83		4.2	$	8,791,279		1,036,500		$	5.48		5.1	$	5,146,126
Options exercisable at March 31, 2023⁽¹⁾		499,500		$	4.30		2.3	$	6,047,029
Options exercisable at September 30, 2023⁽²⁾											302,300		$	4.91		3.9	$	1,675,604

⁽¹⁾	Options with exercise prices ranging from $3.15 to $9.81
⁽²⁾	Options with exercise prices ranging from $3.15 to $7.50
⁽³⁾	Options with exercise prices ranging from $2.79to $7.50


⁽²⁾		~~Net of~~Aggregate unamortized debt issuance costs in connection with the Company’s credit facility, which consists of ($~~101,000~~)the Revolving Credit Facility, Term loan 1, Term loan 2 and ($~~88,000) at March 31, 2023 and December 31, 2022, respectively.~~Capital Line, as applicable.

	●	removed the quarterly fixed charge coverage ratio (“FCCR”) testing requirement for the fourth quarter of 2022 and ~~removes~~removed the FCCR testing requirement for the first quarter of 2023;
	●	reduced the maximum revolving credit line under the credit facility from $18,000,000 to $12,500,000;
	●	~~reinstates~~reinstated the quarterly FCCR testing requirement starting in the second quarter of 2023 using a trailing twelve-month period (with no change to the minimum 1.15:1 ratio requirement for each quarter);and
	●	~~requires~~required maintenance of a minimum of $3,000,000 in borrowing availability under the revolving credit until the minimum FCCR requirement for the quarter ended June 30, 2023 has been met and certified to the ~~lender.~~lender (the Company met its FCCR in the second quarter of 2023 which was certified to its lender and therefore, this requirement is no longer applicable under the Loan Agreement, as amended).

	●	extended the maturity date of the Loan Agreement, as amended, to May 15, 2027, from May 15, 2024;
	●	an additional term loan (“Term Loan 2”) to the Company in the amount of $2,500,000, requiring monthly installments of approximately $41,667. The annual rate of interest due on Term Loan 2 is at prime plus 3.00% or ~~Term~~ Secured Overnight Finance Rate (“SOFR”) (as defined in the Loan Agreement, as amended) plus 4.00% plus an SOFR Adjustment applicable for an interest period selected by the Company. A SOFR Adjustment rate of 0.10% and 0.15% is applicable for a one-month interest period and three-month period, respectively, that may be selected by the Company;
	●	removed the minimum Tangible Adjusted Net Worth (as defined in the Loan Agreement) covenant requirement;
	●	placed an indefinite reduction in borrowing availability of $750,000; and
	●	allows for up to $2,500,000 in capital expenditure made in fiscal year 2023 and thereafter to be treated as financed capital expenditure in the Company’s quarterly FCCR covenant calculation requirement.

	-	nuclear, low-level radioactive, mixed waste (containing both hazardous and low-level radioactive constituents), hazardous and non-hazardous waste treatment, processing and disposal services primarily through four uniquely licensed and permitted treatment and storage facilities; and
	-	Research and Development (“R&D&D”) activities to identify, develop and implement innovative waste processing techniques for problematic waste streams.

	○	professional radiological measurement and site survey of large government and commercial installations using advanced methods, technology and engineering;
	○	integrated Occupational Safety and Health services including industrial hygiene (“IH”) assessments; hazardous materials surveys, e.g., exposure monitoring; lead and asbestos management/abatement oversight; indoor air quality evaluations; health risk and exposure assessments; health & safety plan/program development, compliance auditing and training services; and Occupational Safety and Health Administration (“OSHA”) citation assistance;
	○	global technical services providing consulting, engineering, project management, waste management, environmental, and decontamination and decommissioning field, technical, and management personnel and services to commercial and government customers; and
	○	on-site waste management services to commercial and governmental customers.

	○	technology-based services including engineering, decontamination and decommissioning (“D&D”), specialty services and construction, logistics, transportation, processing and disposal;
	○	remediation of nuclear licensed and federal facilities and the remediation cleanup of nuclear legacy sites. Such services capability includes: project investigation; radiological engineering; partial and total plant D&D; facility decontamination, dismantling, demolition, and planning; site restoration; logistics; transportation; and emergency response; and

	Treatment			Services			Segments Total			Corporate⁽¹⁾			Consolidated Total
Segment Reporting for the Quarter Ended March 31, 2023
	Treatment			Services			Segments Total			Corporate⁽¹⁾			Consolidated Total
Revenue from external customers	$	9,594		$	10,513		$	20,107		$	—		$	20,107
Intercompany revenues		204			19			223			—			—
Gross profit		1,252			1,757			3,009			—			3,009
Research and development		67			3			70			29			99
Interest income		—			—			—			127			127
Interest expense		(22	)		(1	)		(23	)		(30	)		(53	)
Interest expense-financing fees		—			—			—			(20	)		(20	)
Depreciation and amortization		573			160			733			14			747
Segment income (loss) before income taxes		157			943			1,100			(1,622	)		(522	)
Income tax benefit		(174	)		(30	)		(204	)		—			(204	)
Segment income (loss)		331			973			1,304			(1,622	)		(318	)
Expenditures for segment assets		748			—			748			—			748	(2)

●	demand for our services;
●	U.S. government shutdown;
●	reductions in the level of government funding in future years;
●	reducing operating costs and non-essential expenditures;
●●	ability to meet loan agreement quarterly covenant requirements;
●●	cash flow requirements;
●	~~maintain satisfactory margins;~~
●	Canadian receivable;
●	execution of written settlement agreement between PF Canada and CNL;
●	sufficient liquidity to fund operations for the next twelve months;
●●	future results of operations and liquidity;
●●	effect of macroeconomic concerns, such as inflation and higher interest rates, on our business;
●●	manner in which the applicable government will be required to spend funding to remediate various sites;
●	finalization of partnership agreement with Springfields Fuels Limited;
●	successful on international bids;
●	continued increases in operating costs;
●	~~fund~~funding of capital expenditures from cash from operations, borrowing availability under our credit facility and/or financing;
●	steady improvement in waste shipments and work under projects during balance of 2023;
●	~~fund~~funding of remediation expenditures for sites from funds generated internally;
●	compliance with environmental regulations;
●	potential effect of being a PRP;
●	potential ~~sites for~~ violations of environmental laws and attendant remediation ofat our facilities; and
●	~~increase~~ our ~~sales price.~~ability to effect increases in the prices of the services we offer.

●	general economic conditions;
●	contract bids, including international markets;
●	material reduction in revenues;
●	inability to meet PNC covenant requirements;
●	inability to collect in a timely manner a material amount of receivables;
●●	increased competitive pressures;
●	inability to maintain and obtain required permits and approvals to conduct operations;

~~public not accepting our new technology;~~●
●	inability to develop new and existing technologies in the conduct of operations;
●	inability to maintain and obtain closure and operating insurance requirements;
●	inability to retain or renew certain required permits;
●	discovery of additional contamination or expanded contamination at any of the sites or facilities leased or owned by us or our subsidiaries which would result in a material increase in remediation expenditures;
●●	delays at our third-party disposal site can extend collection of our receivables greater than twelve months;
●	refusal of third-party disposal sites to accept our waste;
●	changes in federal, state and local laws and regulations, especially environmental laws and regulations, or in interpretation of such;
●	requirements to obtain permits for TSD activities or licensing requirements to handle low level radioactive materials are limited or lessened;
●	management retention and development;
●	financial valuation of intangible assets is substantially more/less than expected;
●	the ~~requirement~~need to use internally generated funds for purposes not presently anticipated;
●	inability of the Company to maintain the listing of its Common Stock on the NASDAQ;
●	terminations of contracts with government agencies or subcontracts involving government agencies or reduction in amount of waste delivered to the Company under the contracts or subcontracts;
●●	renegotiation of contracts involving government agencies;
●	disposal expense accrual could prove to be inadequate in the event the waste requires re-treatment;
●	inability to raise capital on commercially reasonable terms;
●	inability to increase profitable revenue;
●	~~impact of COVID-19 and~~ economic uncertainties;
●	new governmental regulations; and
●	risk factors and other factors set forth in “Special Note Regarding Forward-Looking Statements” contained in the Company’s 2022 Form 10-K and the “Forward-Looking Statements” contained in the Management’s Discussion and Analysis of Financial Condition and Results of Operations” (“MD&A”) offor the first and second quarters 2023 10-Q and this ~~first~~third quarter 2023 10-Q.

(In thousands)	2023		% Revenue		2022		% Revenue		Change		% Change		2023		% Revenue		2022		% Revenue		Change		% Change
Treatment
Government waste	$	6,642		33.0	$	5,437		34.2	$	1,205		22.2	$	6,692		30.6	$	5,475		29.7	$	1,217		22.2
Hazardous/non-hazardous ⁽¹⁾		1,511		7.5		1,001		6.3		510		50.9		1,389		6.3		1,150		6.2		239		20.8
Other nuclear waste		1,441		7.2		1,041		6.5		400		38.4		2,714		12.4		2,252		12.2		462		20.5
Total		9,594		47.7		7,479		47.0		2,115		28.3		10,795		49.3		8,877		48.1		1,918		21.6

Services
Nuclear services		10,082		50.2		8,281		52.0		1,801		21.7		9,996		45.7		9,360		50.7		636		6.8
Technical services		431		2.1		155		1.0		276		178.1		1,086		5.0		235		1.2		851		362.1
Total		10,513		52.3		8,436		53.0		2,077		24.6		11,082		50.7		9,595		51.9		1,487		15.5

Total	$	20,107		100.0	$	15,915		100.0	$	4,192		26.3	$	21,877		100.0	$	18,472		100.0	$	3,405		18.4

(In thousands)	2023		% Revenue		2022		% Revenue		Change
Administrative	$	1,916		—	$	1,826		—	$	90
Treatment		1,039		9.6		1,144		12.9		(105	)
Services		978		8.8		959		10.0		19
Total	$	3,933		18.0	$	3,929		21.3	$	4

(In thousands)
Cash provided by operating activities of continuing operations	$	1,762		$	452
Cash used in operating activities of discontinued operations		(198	)		(478	)
Cash used in investing activities of continuing operations		(748	)		(1,386	)
Cash used in financing activities of continuing operations		(204	)
Cash provided by financing activities of continuing operations					1,890
Increase in cash and finite risk sinking fund (restricted cash)	$	612		$	478

●	removed the ~~FCCR~~quarterly fixed charge coverage ratio (“FCCR”) testing requirement for the fourth quarter of 2022 and ~~removes~~removed the FCCR testing requirement for the first quarter of 2023;
●	reduced the maximum revolving credit line under the credit facility from $18,000,000 to $12,500,000;
●	●	~~reinstates~~reinstated the quarterly FCCR testing requirement starting in the second quarter of 2023 using a trailing twelve-month period (with no change to the minimum 1.15:1 ratio requirement for each quarter); and
●	●	~~requires~~required maintenance of a minimum of $3,000,000 in borrowing availability under the revolving credit until the minimum FCCR requirement for the quarter ended June 30, 2023 has been met and certified to the ~~lender.~~lender (we met our FCCR requirement in the second quarter of 2023 which was certified to our lender and therefore, this requirement is no longer applicable under our Loan Agreement, as amended).

~~Item 4.~~	~~Controls and Procedures~~

(a)	Evaluation of disclosure controls and procedures.

	WWee maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our periodic reports filed with the Securities and Exchange Commission is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission and that such information is accumulated and communicated to our management. As of the end of the period covered by this report, we carried out an evaluation with the participation of our Principal Executive Officer and Principal Financial Officer. Based on this recent assessment, our Principal Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended) were effective as of ~~March 31,~~September 30, 2023.

(b)	Changes in internal control over financial ~~reporting~~reporting.

	There was no other change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during our most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

~~3(ii)~~4.1		Second Amended and Restated Bylaws of Perma-Fix Environmental Services, Inc., as amended effective April 20, 2023, as incorporated by reference from Exhibit 3(ii) to the Company’s Form 8-K filed on April 26, 2023.
~~4.1~~		~~Sixth~~Seventh Amendment to Second Amended and Restated Revolving Credit, Term Loan and Security Agreement dated ~~March 21,~~July 31, 2023, between Perma-Fix Environmental Services, Inc. and PNC Bank, National Association, as incorporated by reference from Exhibit ~~4.3~~4.1 to the Company’s ~~2022~~ Form ~~10-K~~10-Q for the quarter ended June 30, 2023, filed on ~~March 23,~~August 3, 2023.
~~10.1~~	4.2		Term Note dated July 31, 2023, ~~Incentive Compensation Plan for Chief Executive Officer, effective January 1, 2023,~~between Perma-Fix Environmental Services, Inc. and PNC Bank, National Association, as incorporated by reference from Exhibit ~~99.1~~4.2 to the Company’s Form ~~8-K~~10-Q for the quarter ended June 30, 2023, filed on ~~January 23, 2023. CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN EXCLUDED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED.~~
~~10.2~~		2023 Incentive Compensation Plan for Chief Financial Officer, effective January 1, 2023, as incorporated by reference from Exhibit 99.2 to the Company’s Form 8-K filed on January 23, 2023. CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN EXCLUDED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED.
~~10.3~~		2023 Incentive Compensation Plan for Executive Vice President of Strategic Initiatives, effective January 1, 2023, as incorporated by reference from Exhibit 99.3 to the Company’s Form 8-K filed on January 23, 2023. CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN EXCLUDED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED.
~~10.4~~		2023 Incentive Compensation Plan for Executive Vice President of Nuclear and Technical Services, effective January 1, 2023, as incorporated by reference from Exhibit 99.4 to the Company’s Form 8-K filed on January 23, 2023. CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN EXCLUDED BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED.
~~10.5~~		2023 Incentive Compensation Plan for Executive Vice President of Waste Treatment Operations, effective January 1, 2023, as incorporated by reference from Exhibit 99.5 to the Company’s Form 8-K filed on January 23, 23. CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN EXCLUDED BECAUSE IT IS NOT MATERIAL AND WOULD LLIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED.
~~10.6~~		Incentive Stock Option Agreement between Perma-Fix Environmental Services, Inc. and Chief Executive Officer, dated January 19, 2023, as incorporated by reference from Exhibit 99.6 to the Company’s Form 8-K filed on January 23,August 3, 2023.
~~10.7~~	31.1		Incentive Stock Option Agreement between Perma-Fix Environmental Services, Inc. and Chief Financial Officer, dated January 19, 2023, as incorporated by reference from Exhibit 99.7 to the Company’s Form 8-K filed on January 23, 2023.
~~10.8~~		Incentive Stock Option Agreement between Perma-Fix Environmental Services, Inc. and EVP of Strategic Initiatives, dated January 19, 2023, as incorporated by reference from Exhibit 99.8 to the Company’s Form 8-K filed on January 23, 2023.
~~10.9~~		Incentive Stock Option Agreement between Perma-Fix Environmental Services, Inc. and EVP of Nuclear and Technical Services, dated January 19, 2023, as incorporated by reference from Exhibit 99.9 to the Company’s Form 8-K filed on January 23, 2023.
~~10.10~~		Incentive Stock Option Agreement between Perma-Fix Environmental Services, Inc. and EVP of Waste Treatment Operations, dated January 19, 2023, as incorporated by reference from Exhibit 99.10 to the Company’s Form 8-K filed on January 23, 2023.
~~10.11~~		Employment Agreement dated April 20, 2023 between Mark Duff, Chief Executive Officer and Perma-Fix Environmental Services, Inc., as incorporated by reference from Exhibit 99.1 to the Company’s Form 8-K filed on April 26, 2023.

~~10.12~~		Employment Agreement dated April 20, 2023 between Ben Naccarato, Chief Financial Officer and Perma-Fix Environmental Services, Inc., as incorporated by reference from Exhibit 99.2 to the Company’s Form 8-K filed on April 26, 2023.
~~10.13~~		Employment Agreement dated April 20, 2023 between Dr. Louis Centofanti, EVP of Strategic Initiatives and Perma-Fix Environmental Services, Inc., as incorporated by reference from Exhibit 99.3 to the Company’s Form 8-K filed on April 26, 2023.
~~10.14~~		Employment Agreement dated April 20, 2023 between Andrew Lombardo, EVP of Nuclear and Technical Services and Perma-Fix Environmental Services, Inc., as incorporated by reference from Exhibit 99.4 to the Company’s Form 8-K filed on April 26, 2023.
~~10.15~~		Employment Agreement dated April 20, 2023 between Richard Grondin, EVP of Waste Treatment Operations and Perma-Fix Environmental Services, Inc., as incorporated by reference from Exhibit 99.5 to the Company’s Form 8-K filed on April 26, 2023.
~~31.1~~		Certification by Mark Duff, Chief Executive Officer of the Company pursuant to Rule 13a-14(a) or 15d-14(a).
	31.2		Certification by Ben Naccarato, Chief Financial Officer of the Company pursuant to Rule 13a-14(a) or 15d-14(a).
	32.1		Certification by Mark Duff, Chief Executive Officer of the Company furnished pursuant to 18 U.S.C. Section 1350.
	32.2		Certification by Ben Naccarato, Chief Financial Officer of the Company furnished pursuant to 18 U.S.C. Section 1350.
	101.INS		Inline XBRL Instance DocumentDocument-the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document
	101.SCH		Inline XBRL Taxonomy Extension Schema Document*
	101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document*
	101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document*
	101.LAB		Inline XBRL Taxonomy Extension Labels Linkbase Document*
	101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document*
	104		Cover Page Interactive Data File (formatted as an Inline XBRL document and included in Exhibit 101).

	PERMA-FIX ENVIRONMENTAL SERVICES

Date: ~~May 10,~~November 2, 2023	By:	/s/ Mark Duff
		Mark Duff
		President and Chief (Principal) Executive Officer


Date: ~~May 10,~~November 2, 2023	By:	/s/ Ben Naccarato
		Ben Naccarato
		Chief (Principal) Financial Officer