Item 7A. Quantitative and Qualitative Disclosures About Market Risk
ITEM
7A.
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not
required under Regulation S-K for smaller reporting companies.
SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS
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;
●
reductions
in the level of government funding in future years;
●
R&D
activity and necessary capital of our Medical Segment;
●
business
strategy;
●
reducing
operating costs and non-essential expenditures;
●
ability
to meet loan agreement covenant requirements;
●
cash
flow requirements;
●
accounts
receivable impact;
●
sufficient
liquidity to continue business;
●
PPP
Loan forgiveness;
●
furlough
or layoff eligible employees;
●
future
results of operations and liquidity;
●
effect
of economic disruptions on our business;
●
curtail
capital expenditures;
●
government
funding for our services;
●
may
not have liquidity to repay debt if our lender accelerates payment of our borrowings;
●
manner
in which the applicable government will be required to spend funding to remediate various sites;
●
funding
operations;
●
fund
capital expenditures from cash from operations and/or financing;
●
impact
from COVID-19;
●
completion
of material contract;
●
gradual
return in waste shipments;
●
fund
remediation expenditures for sites from funds generated internally;
●
collection
of accounts receivables;
●
compliance
with environmental regulations;
●
potential
effect of being a PRP;
●
potential
sites for violations of environmental laws and remediation of our facilities;
●
continuation
of contracts with federal government;
●
loss
of contracts;
●
permitting
and licensing requirements;
●
partial
or full shutdown of any of our facilities;
●
liability
from Tetra Tech claims;
●
shutdown
of projects and continued waste shipments delays by clients; and
●
R&D
costs.
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;
34
●
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;
●
potential
increases in equipment, maintenance, operating or labor costs;
●
management
retention and development;
●
financial
valuation of intangible assets is substantially more/less than expected;
●
the
requirement to use internally generated funds for purposes not presently anticipated;
●
inability
to continue to be profitable on an annualized basis;
●
inability
of the Company to maintain the listing of its Common Stock on the NASDAQ;
●
terminations
of contracts with government agencies (domestic and foreign) or subcontracts involving government agencies (domestic or foreign),
or reduction in amount of waste delivered to the Company under the contracts or subcontracts;
●
renegotiation
of contracts involving government agencies (domestic and foreign);
●
federal
government’s inability or failure to provide necessary funding to remediate contaminated federal sites;
●
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 the COVID-19;
●
audit
of our PPP Loan;
●
new
governmental regulations;
●
lender
refuses to waive non-compliance or revise our covenant so that we are in compliance; and
●
risk
factors contained in Item 1A of this report.
35