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.
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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;
●
opportunities
in Germany;
●
reductions
in the level of government funding in future years;
●
accelerated
investments;
●
base
business is positioned for improvement in 2025;
●
results
of operations improvement in 2025;
●
advancement
of initiatives to be further realized in 2025;
●
approvals
of scope attributable to the Company under the West Valley Development Project contract;
●
operations
of the West Valley Development Project;
●
Low-Level
Tank Waste and benefits of supplemental capability;
●
reducing
operating costs and non-essential expenditures;
●
revenues
relating to the West Valley Development Project;
●
ability
to meet loan agreement quarterly financial covenant requirements;
●
additional
CR impact;
●
spending
priorities under new Administration;
●
passage
of the 2025 fiscal year U.S. government budget;
●
cash
flow requirements;
●
sufficient
cash flow and Liquidity to fund operations for the next twelve months;
●
receipt
of international waste shipments in 2025;
●
amount
of capital expenditures;
●
revenue
under the Italian project;
●
manner
in which the applicable government will be required to spend funding to remediate various sites;
●
successful
on international bids;
●
funding
of operating and capital expenditures from cash from operations, Liquidity under our Credit Facility, and/or financing;
●
our
PFAS technology process will exceed current treatment options available;
●
receipt
of an additional 20,000 AFFF liquid;
●
deployment
of the second generation unit;
●
strategy
for our System;
●
advancement
of our PFAS technology;
●
funding
of remediation expenditures for sites from funds generated internally;
●
compliance
with environmental regulations;
●
positioning
for procurements from DOE and other government agencies;
●
potential
effect of being a potentially responsible party (“PRP”);
●
potential
violations of environmental laws and attendant remediation at our facilities; and
●
Quarterly
financial covenant requirement for the next twelve months.
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 and uncertainties;
●
contract
bids, including international markets;
●
our
dependence on contracts with federal, state and local governments, agencies, and departments for the majority of our revenue;
●
changes
in federal government budgeting and spending priorities;
●
failure
by Congress or other governmental bodies to approve budgets and debt ceiling increases in a timely fashion and related reductions
in government spending and/or a government shutdown;
●
uncertainties
relating to the new presidential administration (the “Administration”) and failure of the Administration to spend Congressionally
mandated appropriations, which may result in the failure to realize the full amount of our backlog;
●
failure
of the Administration and Congress to agree on spending priorities, which may result in temporary shutdowns of non-essential federal
functions, including our work to support such functions;
●
results
of routine and non-routine government audits and investigations, including the unpredictability of the actions of the newly-formed
DOGE;
●
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 treatment, storage and disposal (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 our Italian team partner to perform its requirements in connection with the Italian project;
●
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;
●
risks
resulting from expanding our service offerings and client base;
●
non-acceptance
of our new technology;
●
adjustments
to our valuation allowance;
●
new
governmental regulations; and
●
risk
factors contained in Item 1A of this report.
Our
forward-looking statements are based on the beliefs and assumptions of our management and the information available to our management
at the time these statements were prepared. Although we believe the expectations reflected in these statements are reasonable, we cannot
guarantee future results, levels of activity, performance, or achievements. You should not place undue reliance on these forward-looking
statements, which apply only as of the date of this Annual Report on Form 10-K. We undertake no obligation to update these forward-looking
statements, even if our situation changes in the future.
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