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 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;
●
partial U.S. government shutdown or additional continued resolution;
●
delay
waste shipment by government related customers;
●
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;
●
receipt
of remaining Canadian receivable upon completion of conditions/terms of the settlement agreement in 2024;
●
sufficient
liquidity to fund operations for the next twelve months;
●
revenue under the Italian project;
●
future
results of operations and liquidity;
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●
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 non-binding partnership agreement with Springfields Fuels Limited;
●
successful
on international bids;
●
continued
increases in operating costs;
●
funding
of capital expenditures from cash from operations, collections of unpaid receivables, borrowing availability under our credit facility
and/or financing;
●
steady
improvement in waste shipments and work under projects in 2024;
●
funding
of remediation expenditures for sites from funds generated internally;
●
compliance
with environmental regulations;
●
potential
effect of being a PRP;
●
potential
violations of environmental laws and attendant remediation at our facilities; and
●
our
ability to effect increases in the prices of the services we offer.
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;
●
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
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;
●
failure of joint venture partner to perform its requirements in connection with the Italian project;
●
failure to approve 2024 budget by the U.S. government;
●
partial government shutdown;
●
Changes in the scope of work relating to existing contracts;
●
occurrence of an event similar to COVID-19 having adverse effects on the U.S. and world economics;
●
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;
●
economic
uncertainties;
●
new
governmental regulations; and
●
risk
factors contained in Item 1A of this report.
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