PERMA FIX ENVIRONMENTAL SERVICES INC 10-Q

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 September 30, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to___________________ Commission File No. 001-11596 PERMA-FIX ENVIRONMENTAL SERVICES, INC. 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) (IRS Employer Identification Number) 8302 Dunwoody Place , Suite 250 , Atlanta , GA (Address of principal executive offices) 30350 (Zip Code) (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 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 November 3, 2025 Common Stock, $ .001 Par Value 18,517,662 shares PERMA-FIX ENVIRONMENTAL SERVICES, INC. INDEX Page No. PART I FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (Unaudited) Condensed Consolidated Balance Sheets - September 30, 2025, and December 31, 2024 1 Condensed Consolidated Statements of Operations - Three and Nine Months Ended September 30, 2025, and 2024 3 Condensed Consolidated Statements of Comprehensive Loss - Three and Nine Months Ended September 30, 2025, and 2024 4 Condensed Consolidated Statement of Stockholders’ Equity - Nine Months Ended September 30, 2025, and 2024 5 Condensed Consolidated Statements of Cash Flows -Nine Months Ended September 30, 2025, and 2024 7 Notes to Condensed Consolidated Financial Statements 8 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 24 Item 3. Quantitative and Qualitative Disclosures About Market Risk 38 Item 4. Controls and Procedures 38 PART II OTHER INFORMATION Item 1. Legal Proceedings 38 Item 1A. Risk Factors 38 Item 6. Exhibits 39 PART I - FINANCIAL INFORMATION ITEM 1. – Financial Statements PERMA-FIX ENVIRONMENTAL SERVICES, INC. Condensed Consolidated Balance Sheets September 30, December 31, 2025 2024 (Amounts in Thousands, Except for Share and Per Share Amounts) (Unaudited) ASSETS Current assets: Cash $ 16,412 $ 28,975 Accounts receivable, net of allowance for credit losses of $ 229 and $ 202 , respectively 11,887 11,579 Unbilled receivables 8,396 4,990 Inventories 1,113 1,350 Prepaid and other assets 4,421 3,309 Current assets related to discontinued operations 37 20 Total current assets 42,266 50,223 Property and equipment: Buildings and land 24,680 24,717 Equipment 24,251 23,499 Vehicles 411 411 Leasehold improvements 8 8 Office furniture and equipment 1,113 1,082 Construction-in-progress 4,880 2,949 Total property and equipment 55,343 52,666 Less accumulated depreciation ( 32,697 ) ( 31,533 ) Net property and equipment 22,646 21,133 Property and equipment related to discontinued operations 146 130 Operating lease right-of-use assets 1,443 1,697 Intangibles and other long term assets: Permits 10,627 10,531 Other intangible assets - net 358 393 Finite risk sinking fund (restricted cash) 13,084 12,680 Other assets 585 461 Total assets $ 91,155 $ 97,248 The accompanying notes are an integral part of these condensed consolidated financial statements. 1 PERMA-FIX ENVIRONMENTAL SERVICES, INC. Condensed Consolidated Balance Sheets, Continued September 30, December 31, 2025 2024 (Amounts in Thousands, Except for Share and per Share Amounts) (Unaudited) LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 6,369 $ 6,373 Accrued expenses 6,484 5,111 Disposal/transportation accrual 1,941 2,271 Deferred revenue 7,112 6,711 Accrued closure costs - current 5 50 Current portion of long-term debt 536 550 Current portion of operating lease liabilities 372 345 Current portion of finance lease liabilities 227 285 Current liabilities related to discontinued operations 827 244 Total current liabilities 23,873 21,940 Accrued closure costs 8,616 8,290 Long-term debt, less current portion 1,352 1,765 Long-term operating lease liabilities, less current portion 1,149 1,427 Long-term finance lease liabilities, less current portion 483 491 Long-term liabilities related to discontinued operations 320 945 Total long-term liabilities 11,920 12,918 Total liabilities 35,793 34,858 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; 18,485,043 and 18,384,879 shares issued, respectively; 18,477,401 and 18,377,237 shares outstanding, respectively 18 18 Additional paid-in capital 160,622 159,590 Accumulated deficit ( 105,054 ) ( 96,930 ) Accumulated other comprehensive loss ( 136 ) ( 200 ) Less Common Stock in treasury, at cost; 7,642 shares ( 88 ) ( 88 ) Total stockholders’ equity 55,362 62,390 Total liabilities and stockholders’ equity $ 91,155 $ 97,248 The accompanying notes are an integral part of these condensed consolidated financial statements. 2 PERMA-FIX ENVIRONMENTAL SERVICES, INC. Condensed Consolidated Statements of Operations (Unaudited) (Amounts in Thousands, Except for Per Share Amounts) 2025 2024 2025 2024 Three Months Ended Nine Months Ended September 30, September 30, (Amounts in Thousands, Except for Per Share Amounts) 2025 2024 2025 2024 Net revenues $ 17,454 $ 16,812 $ 45,959 $ 44,415 Cost of goods sold 14,897 15,478 41,198 45,007 Gross profit 2,557 1,334 4,761 ( 592 ) Selling, general and administrative expenses 4,083 3,632 12,228 10,631 Research and development 342 303 1,037 872 Loss (gain) on disposal of property and equipment 4 — ( 2 ) 1 Loss from operations ( 1,872 ) ( 2,601 ) ( 8,502 ) ( 12,096 ) Other income (expense): Interest income 266 292 901 679 Interest expense ( 116 ) ( 121 ) ( 351 ) ( 346 ) Interest expense-financing fees ( 22 ) ( 18 ) ( 63 ) ( 47 ) Other ( 18 ) 59 171 61 Loss from continuing operations before taxes ( 1,762 ) ( 2,389 ) ( 7,844 ) ( 11,749 ) Income tax expense — 6,417 — 4,300 Loss from continuing operations, net of taxes ( 1,762 ) ( 8,806 ) ( 7,844 ) ( 16,049 ) Loss from discontinued operations, net of taxes (Note 10) ( 73 ) ( 173 ) ( 280 ) ( 441 ) Net loss $ ( 1,835 ) $ ( 8,979 ) $ ( 8,124 ) $ ( 16,490 ) Net loss per common share - basic and diluted: Continuing operations $ ( .10 ) $ ( .56 ) $ ( .43 ) $ ( 1.09 ) Discontinued operations — ( .01 ) ( .01 ) ( .03 ) Net loss per common share $ ( .10 ) $ ( .57 ) $ ( .44 ) $ ( 1.12 ) Weighted average number of common shares used in computing net loss per share: Basic 18,472 15,803 18,448 14,695 Diluted 18,472 15,803 18,448 14,695 The accompanying notes are an integral part of these condensed consolidated financial statements. 3 PERMA-FIX ENVIRONMENTAL SERVICES, INC. Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (Amounts in Thousands) 2025 2024 2025 2024 Three Months Ended Nine Months Ended September 30, September 30, (Amounts in Thousands) 2025 2024 2025 2024 Net loss $ ( 1,835 ) $ ( 8,979 ) $ ( 8,124 ) $ ( 16,490 ) Other comprehensive income (loss): Foreign currency translation adjustment 5 19 64 ( 68 ) Total other comprehensive income (loss) 5 19 64 ( 68 ) Comprehensive loss $ ( 1,830 ) $ ( 8,960 ) $ ( 8,060 ) $ ( 16,558 ) The accompanying notes are an integral part of these condensed consolidated financial statements. 4 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’ Shares Amount Capital Treasury Loss Deficit Equity Balance at December 31, 2024 18,384,879 $ 18 $ 159,590 $ ( 88 ) $ ( 200 ) $ ( 96,930 ) $ 62,390 Net loss — — — — — ( 3,573 ) ( 3,573 ) Foreign currency translation — — — — 17 — 17 Issuance of Common Stock for services 10,565 — 117 — — — 117 Issuance of Common Stock upon exercise of options 40,591 — 41 — — — 41 Stock-Based Compensation — — 196 — — — 196 Balance at March 31, 2025 18,436,035 $ 18 $ 159,944 $ ( 88 ) $ ( 183 ) $ ( 100,503 ) $ 59,188 Net loss — — — — — ( 2,716 ) ( 2,716 ) Foreign currency translation — — — — 42 — 42 Issuance of Common Stock for services 16,179 — 118 — — — 118 Issuance of Common Stock upon exercise of options 7,655 — 8 — — — 8 Stock-Based Compensation — — 186 — — — 186 Balance at June 30, 2025 18,459,869 $ 18 $ 160,256 $ ( 88 ) $ ( 141 ) $ ( 103,219 ) $ 56,826 Net loss — — — — — ( 1,835 ) ( 1,835 ) Foreign currency translation — — — — 5 — 5 Issuance of Common Stock for services 11,512 — 121 — — — 121 Issuance of Common Stock upon exercise of options 13,662 — 30 — — — 30 Stock-Based Compensation — — 215 — — — 215 Balance at September 30, 2025 18,485,043 $ 18 $ 160,622 $ ( 88 ) $ ( 136 ) $ ( 105,054 ) $ 55,362 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 PERMA-FIX ENVIRONMENTAL SERVICES, INC Condensed Consolidated Statement of Stockholders’ Equity, Continued (Unaudited) (Amounts in thousands, except for share amounts) Common Stock Additional Paid-In Common Stock Held In Accumulated Other Comprehensive Accumulated Total Stockholders’ Shares Amount Capital Treasury Loss Deficit Equity Balance at December 31, 2023 13,654,201 $ 14 $ 116,502 $ ( 88 ) $ ( 100 ) $ ( 76,951 ) $ 39,377 Net loss — — — — — ( 3,560 ) ( 3,560 ) Foreign currency translation — — — — ( 56 ) — ( 56 ) Issuance of Common Stock for services 14,963 — 118 — — — 118 Issuance of Common Stock upon exercise of options 31,416 — 104 — — — 104 Issuance of Common Stock upon exercise of warrant 30,000 — 105 — — — 105 Stock-Based Compensation — — 152 — — — 152 Balance at March 31, 2024 13,730,580 $ 14 $ 116,981 $ ( 88 ) $ ( 156 ) $ ( 80,511 ) $ 36,240 Net loss — — — — — ( 3,951 ) ( 3,951 ) Foreign currency translation — — — — ( 31 ) — ( 31 ) Issuance of Common Stock for services 9,965 — 120 — — — 120 Issuance of Common Stock upon exercise of options 4,201 — 9 — — — 9 Sale of Common Stock, net of offering costs 2,051,282 2 18,113 — — — 18,115 Issuance of warrants from sale of Common Stock — — 331 — — — 331 Stock-Based Compensation — — 132 — 132 Balance at June 30, 2024 15,796,028 $ 16 $ 135,686 $ ( 88 ) $ ( 187 ) $ ( 84,462 ) $ 50,965 Balance 15,796,028 $ 16 $ 135,686 $ ( 88 ) $ ( 187 ) $ ( 84,462 ) $ 50,965 Net loss — — — — — ( 8,979 ) ( 8,979 ) Foreign currency translation — — — — 19 — 19 Issuance of Common Stock for services 12,218 — 123 — — — 123 Issuance of Common Stock upon exercise of options 8,800 — 46 — — — 46 Adjustment of offering costs from sale of Common Stock — — 10 — — — 10 Stock-Based Compensation — — 182 — 182 Balance at September 30, 2024 15,817,046 $ 16 $ 136,047 $ ( 88 ) $ ( 168 ) $ ( 93,441 ) $ 42,366 Balance 15,817,046 $ 16 $ 136,047 $ ( 88 ) $ ( 168 ) $ ( 93,441 ) $ 42,366 The accompanying notes are an integral part of these condensed consolidated financial statements. 6 PERMA-FIX ENVIRONMENTAL SERVICES, INC. Condensed Consolidated Statements of Cash Flows (Unaudited) (Amounts in Thousands) 2025 2024 Nine Months Ended September 30, (Amounts in Thousands) 2025 2024 Cash flows from operating activities: Net loss $ ( 8,124 ) $ ( 16,490 ) Less: Loss from discontinued operations, net of taxes (Note 10) ( 280 ) ( 441 ) Loss from continuing operations, net of taxes ( 7,844 ) ( 16,049 ) Adjustments to reconcile loss from continuing operations to cash used in operating activities: Depreciation and amortization 1,299 1,295 Amortization of debt issuance costs 63 47 Deferred tax expense — 4,300 Provision for (recovery of) credit losses on accounts receivable 57 ( 9 ) (Gain) loss on disposal of property and equipment ( 2 ) 1 Issuance of Common Stock for services 356 361 Stock-based compensation 597 466 Changes in operating assets and liabilities of continuing operations Accounts receivable ( 365 ) 990 Unbilled receivables ( 3,406 ) 1,155 Prepaid expenses, inventories and other assets 1,678 2,277 Accounts payable, accrued expenses and deferred revenue ( 745 ) ( 5,805 ) Cash used in continuing operations ( 8,312 ) ( 10,971 ) Cash used in discontinued operations ( 317 ) ( 468 ) Cash used in operating activities ( 8,629 ) ( 11,439 ) Cash flows from investing activities: Purchases of property and equipment ( 2,608 ) ( 2,224 ) Addition to permits and other intangible assets ( 103 ) ( 577 ) Proceeds from sale of property and equipment 28 1 Cash used in continuing operations ( 2,683 ) ( 2,800 ) Cash used in discontinued operations ( 36 ) ( 49 ) Cash used in investing activities ( 2,719 ) ( 2,849 ) Cash flows from financing activities: Repayments of revolving credit borrowings ( 57,209 ) ( 78,313 ) Borrowing on revolving credit 57,209 78,313 Proceeds from sale of Common Stock completed in May 2024, net of offering costs paid — 18,495 Payment of offering costs from sale of Common Stock completed in December 2024 ( 194 ) — Principal repayments of finance lease liabilities ( 228 ) ( 218 ) Principal repayments of long term debt ( 470 ) ( 675 ) Payment of debt issuance costs ( 19 ) ( 61 ) Proceeds from issuance of Common Stock upon exercise of options/warrant 79 264 Cash (used in) provided by financing activities of continuing operations ( 832 ) 17,805 Effect of exchange rate changes on cash 21 1 (Decrease) increase in cash and finite risk sinking fund (restricted cash) ( 12,159 ) 3,518 Cash and finite risk sinking fund (restricted cash) at beginning of period 41,655 19,574 Cash and finite risk sinking fund (restricted cash) at end of period $ 29,496 $ 23,092 Supplemental disclosure: Interest paid $ 355 $ 349 Income taxes paid — 50 Non-cash financing activities: Equipment/property purchase subject to finance — 406 Equipment purchase subject to finance leases 162 — The accompanying notes are an integral part of these condensed consolidated financial statements. 7 PERMA-FIX ENVIRONMENTAL SERVICES, INC. Notes to Condensed Consolidated Financial Statements September 30, 2025 (Unaudited) 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. 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 nine months ended September 30, 2025, are not necessarily indicative of results to be expected for the fiscal year ending December 31, 2025. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2024. The condensed consolidated financial statements include the accounts of our wholly owned subsidiaries. 2. Summary of Significant Accounting Policies Our accounting policies are as set forth in the notes to the December 31, 2024, consolidated financial statements referred to above. Recently Issued Accounting Standards –Adopted In August 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-05, “Business Combinations—Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement.” ASU 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 by the venturers. The new guidance is applicable to joint venture entities with a formation date on or after January 1, 2025, on a prospective basis. The adoption of ASU 2023-05 by the Company on January 1, 2025, had no impact to its condensed consolidated financial statements. Recently Issued Accounting Standards – Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state, and local jurisdictions, among other changes. ASU 2023-09 will become effective starting with the Company’s annual financial statements for the year ended December 31, 2025. Other than the updated disclosure requirements, the Company does not expect the adoption of ASU 2023-09 to have a material impact to its consolidated financial statements. 8 In November 2024, the FASB issued ASU 2024-03, “Income Statement— Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) - Disaggregation of Income Statement Expenses,” which enhances the disclosures required for certain expense captions in the Company’s annual and interim consolidated financial statements. ASU 2024-03 is effective prospectively or retrospectively for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its financial statement disclosures. In July 2025, the FASB issued ASU 2025-05, “Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses for Accounts Receivable and Contract Assets.” ASU 2025-05 provides the option to elect a practical expedient to assume that the current conditions as of the balance sheet date will remain unchanged for the remaining life of the asset when developing a reasonable and supportable forecast as part of estimating expected credit losses on these assets. ASU 2025-05 is effective for the Company for fiscal year and interim periods beginning after December 15, 2025, on a prospective basis, with early adoption permitted. The Company is currently evaluating the impact of this standard to its consolidated financial statements. In September 2025, the FASB issued ASU 2025-06, “Intangible - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.” ASU 2025-06 removes all references to prescriptive and sequential software development stages. The ASU requires entities to begin capitalizing software costs when management authorizes and commits to funding the software project, and it is probable that the project will be completed, and the software will be used for its intended purpose. The amendments in this ASU are effective for the Company for fiscal years beginning after December 15, 2027, and interim periods within those annual reporting periods. The standard allows for prospective, modified, or retrospective transition. Early adoption is permitted. The Company is currently evaluating the impact of this standard to its consolidated financial statements. 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 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 Treatment Services Total Treatment Services Total Revenue by Contract Type (In thousands) Three Months Ended Three Months Ended September 30, 2025 September 30, 2024 Treatment Services Total Treatment Services Total Fixed price $ 13,114 $ 982 $ 14,096 $ 9,064 $ 6,396 $ 15,460 Time and materials — 3,358 3,358 — 1,352 1,352 Total $ 13,114 $ 4,340 $ 17,454 $ 9,064 $ 7,748 $ 16,812 Treatment Services Total Treatment Services Total Revenue by Contract Type (In thousands) Nine Months Ended Nine Months Ended September 30, 2025 September 30, 2024 Treatment Services Total Treatment Services Total Fixed price $ 33,696 $ 4,789 $ 38,485 $ 26,116 $ 15,405 $ 41,521 Time and materials — 7,474 7,474 — 2,894 2,894 Total $ 33,696 $ 12,263 $ 45,959 $ 26,116 $ 18,299 $ 44,415 9 Treatment Services Total Treatment Services Total Revenue by generator (In thousands) Three Months Ended Three Months Ended September 30, 2025 September 30, 2024 Treatment Services Total Treatment Services Total Domestic government $ 9,204 $ 3,376 $ 12,580 $ 6,578 $ 7,346 $ 13,924 Domestic commercial 2,855 716 3,571 2,229 312 2,541 Foreign government 859 160 1,019 — 65 65 Foreign commercial 196 88 284 257 25 282 Total $ 13,114 $ 4,340 $ 17,454 $ 9,064 $ 7,748 $ 16,812 Treatment Services Total Treatment Services Total Revenue by generator (In thousands) Nine Months Ended Nine Months Ended September 30, 2025 September 30, 2024 Treatment Services Total Treatment Services Total Domestic government $ 21,600 $ 10,661 $ 32,261 $ 18,997 $ 17,129 $ 36,126 Domestic commercial 7,644 1,161 8,805 6,045 867 6,912 Foreign government 3,684 285 3,969 1 232 233 Foreign commercial 768 156 924 1,073 71 1,144 Total $ 33,696 $ 12,263 $ 45,959 $ 26,116 $ 18,299 $ 44,415 Contract Balances The timing of revenue recognition and billings can result 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 the Company’s performance obligation. The following table represents changes in our contract asset and contract liabilities balances for the periods noted: Schedule of Contract Balances (In thousands) September 30, 2025 December 31, 2024 Year-to-date Change ($) Year-to-date Change (%) Contract assets Unbilled receivables - current $ 8,396 $ 4,990 $ 3,406 68.3 % Contract liabilities Deferred revenue $ 7,112 $ 6,711 $ 401 6.0 % The increase in unbilled receivables as of September 30, 2025, from December 31, 2024, was attributed primarily to increase in revenue from the Company’s Treatment Segment. (In thousands) September 30, 2024 December 31, 2023 Year-to-date Change ($) Year-to-date Change (%) Contract assets Unbilled receivables - current $ 7,277 $ 8,432 $ ( 1,155 ) - 14 % Contract liabilities Deferred revenue $ 5,398 $ 6,815 $ ( 1,417 ) - 20.8 % During the three and nine months ended September 30, 2025, the Company recognized revenue of $ 752,000 and $ 4,640,000 , respectively, related to untreated waste that was in the Company’s control as of the beginning of such respective year. During the three and nine months ended September 30, 2024, the Company recognized revenue of $ 677,000 and $ 5,596,000 , respectively, related to untreated waste that was in the Company’s control as of the beginning of such respective year. Revenue recognized in each period related to performance obligations satisfied within the respective period. 10 Accounts Receivable The following table represents changes in accounts receivable, net of credit losses, for the periods noted: Schedule of Changes in Accounts Receivable, Net of Credit Losses (In thousands) September 30, 2025 December 31, 2024 Year-to-date Change ($) Year-to-date Change (%) Accounts Receivable (net) $ 11,887 $ 11,579 $ 308 2.7 % (In thousands) September 30, 2024 December 31, 2023 Year-to-date Change ($) Year-to-date Change (%) Accounts Receivable (net) $ 8,741 $ 9,722 $ ( 981 ) - 10.1 % 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. 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. Finance leases primarily consist of lab, 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, 2025, and 2024 were as follows (in thousands): Schedule of Components of Lease Cost 2025 2024 2025 2024 Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Operating Leases: Lease cost $ 121 $ 129 $ 363 $ 420 Finance Leases: Amortization of ROU assets 66 65 193 196 Interest on lease liability 24 20 72 63 Finance lease 90 85 265 259 Short-term lease rent expense 2 1 6 3 Total lease cost $ 213 $ 215 $ 634 $ 682 11 The weighted average remaining lease term and the weighted average discount rate for operating and finance leases as of September 30, 2025, were: Schedule of Weighted Average Lease Operating Leases Finance Leases Weighted average remaining lease terms (years) 4.0 3.7 Weighted average discount rate 7.7 % 9.6 % The weighted average remaining lease term and the weighted average discount rate for operating and finance leases as of September 30, 2024, were: Operating Leases Finance Leases Weighted average remaining lease terms (years) 4.9 3.9 Weighted average discount rate 7.7 % 9.0 % The following table reconciles the undiscounted cash flows for the operating and finance leases as of September 30, 2025, 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 2025 (Remaining) $ 125 $ 96 2026 479 238 2027 447 204 2028 343 181 2029 334 120 2030 and thereafter 74 5 Total undiscounted lease payments 1,802 844 Less: Imputed interest ( 281 ) ( 134 ) Present value of lease payments $ 1,521 $ 710 Current portion of operating lease obligations $ 372 $ N/A Long-term operating lease obligations, less current portion $ 1,149 $ N/A Current portion of finance lease obligations $ N/A $ 227 Long-term finance lease obligations, less current portion $ N/A $ 483 Supplemental cash flow and other information related to our leases were as follows for the three and nine months ended September 30, 2025, and 2024 (in thousands): Schedule of Supplemental Cash Flow and Other Information Related to Leases 2025 2024 2025 2024 Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow used in operating leases $ 125 $ 119 $ 361 $ 415 Operating cash flow used in finance leases $ 24 $ 20 $ 72 $ 63 Financing cash flow used in finance leases $ 80 $ 72 $ 228 $ 218 ROU assets obtained in exchange for lease obligations for: Finance liabilities $ 30 $ — $ 162 $ — Operating liabilities $ — $ — $ — $ 497 Reduction to ROU assets resulting from purchase of underlying asset: Operating liabilities $ — $ 404 $ — $ 404 The reduction in ROU for the three and nine months ended September 30, 2024, as noted above was the result of the Company’s purchase of its Oak Ridge Environmental Waste Operations Center (“EWOC”) property which was previously accounted for under its operating leases. 12 5. Intangible Assets The following table summarizes information relating to the Company’s definite-lived intangible assets: Schedule of Definite Lived Intangible Assets Weighted Average September 30, 2025 December 31, 2024 Amortization Period Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying (Years) Amount Amortization Amount Amount Amortization Amount Other Intangibles (amount in thousands) Patents 5.9 $ 759 $ ( 451 ) $ 308 $ 753 $ ( 435 ) $ 318 Software 3 666 ( 616 ) 50 666 ( 591 ) 75 Total $ 1,425 $ ( 1,067 ) $ 358 $ 1,419 $ ( 1,026 ) $ 393 The intangible assets noted above are amortized on a straight-line basis over their useful lives. 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 Year (In thousands) 2025 (Remaining) $ 13 2026 49 2027 30 2028 21 2029 18 Amortization expenses relating to the definite-lived intangible assets as discussed above were $ 13,000 and $ 41,000 for the three and nine months ended September 30, 2025, respectively, and $ 22,000 and $ 70,000 for the three and nine months ended September 30, 2024, respectively. 6. Capital Stock, Stock Plans and 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. In connection with the appointment of Mr. Troy Eshleman to the position of Chief Operating Officer (“COO”) by the Company’s Board of Directors (the “Board”) on January 23, 2025, the Company granted to Mr. Eshleman an ISO for the purchase, under the Company’s 2017 Stock Option Plan (the “2017 Plan”), of up to 50,000 shares of the Company’s common stock, $ .001 (the “Common Stock”). The ISO has a six-year 6 term and vests at 20 % per year over a five-year 5 period, commencing on the first anniversary of the grant date. The exercise price of the ISO is $ 10.70 per share, which equals the closing price of the Company’s Common Stock as quoted on NASDAQ on the grant date. On July 24, 2025, 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 has a four-year term and vests at 25 % per year over a four-year 4 period, commencing on the first anniversary of the grant date. The exercise price of each NQSO is $ 12.23 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. 13 The following table summarizes stock-based compensation recognized for the three and nine months ended September 30, 2025, and 2024 for our employee and director stock options. Schedule of Share-based Compensation, Allocation of Recognized Period Costs 2025 2024 2025 2024 Three Months Ended Nine Months Ended Stock Options September 30, September 30, 2025 2024 2025 2024 Employee Stock Options $ 108,000 $ 96,000 $ 311,000 $ 259,000 Director Stock Options 107,000 86,000 286,000 207,000 Total $ 215,000 $ 182,000 $ 597,000 $ 466,000 As of September 30, 2025, the Company had approximately $ 2,131,000 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 3.0 years. The summary of the Company’s stock option plans as of September 30, 2025, and September 30, 2024, and changes during the periods then ended, are presented below. The Company’s plans consist of the 2017 Plan and the 2003 Plan: Schedule of Stock Options Roll Forward Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (5) Options outstanding January 1, 2025 1,000,900 $ 6.18 - Granted 120,000 $ 11.59 Exercised ( 88,700 ) $ 4.11 $ 586,180 Forfeited ( 17,000 ) $ 8.72 Options outstanding end of period (1) 1,015,200 $ 6.96 4.7 $ 3,367,934 Options exercisable at September 30, 2025 (2) 455,200 $ 6.50 4.5 $ 1,809,173 Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (5) Options outstanding January 1, 2024 994,500 $ 5.57 - Granted 150,500 $ 9.43 Exercised ( 58,700 ) $ 5.57 $ 306,574 Forfeited ( 46,400 ) $ 5.93 Options outstanding end of period (3) 1,039,900 $ 6.12 4.8 $ 6,397,354 Options exercisable at September 30, 2024 (4) 386,000 $ 5.31 4.0 $ 2,684,482 (1) Options with exercise prices ranging from $ 3.31 to $ 12.23 . (2) Options with exercise prices ranging from $ 3.31 to $ 10.20 . (3) Options with exercise prices ranging from $ 3.15 to $ 10.20 . (4) Options with exercise prices ranging from $ 3.15 to $ 9.81 . (5) The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price. During the nine months ended September 30, 2025, the Company issued a total of 38,256 shares of its Common Stock under the 2003 Plan to its outside directors as compensation for serving on the Company’s Board. The Company recorded approximately $ 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. 14 During the nine months ended September 30, 2025, the Company issued an aggregate 40,208 shares of its Common Stock from cashless exercises of options for the purchase of 67,000 shares of the Company’s Common Stock ranging from $ 3.15 to $ 7.75 per share. Additionally, the Company issued an aggregate 21,700 shares of its Common Stock from cash exercises of options for the purchase of 21,700 shares of the Company’s Common Stock, at exercise prices ranging from $ 3.15 and $ 4.19 per share, resulting in proceeds of approximately $ 79,000 . In connection with the Company’s sales of its Common Stock in May 2024 and December 2024, the Company issued warrants to certain underwriter, placement agents, and their designees to purchase up to an aggregate 188,038 shares of the Company’s Common Stock at exercise prices of $ 11.50 and $ 12.19 per share. These warrants remained outstanding as of September 30, 2025. 7. Loss Per Share Basic loss per share is calculated based on the weighted average number of outstanding common shares during the applicable period. Diluted 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 earnings per share. The following table reconciles the loss and average share amounts used to compute both basic and diluted loss per share: Schedule of Earnings Per Share 2025 2024 2025 2024 Three Months Ended Nine Months Ended September 30, September 30, (Amounts in Thousands, Except for Per Share Amounts) (Unaudited) (Unaudited) 2025 2024 2025 2024 Loss per common share from continuing operations Loss from continuing operations, net of taxes $ ( 1,762 ) $ ( 8,806 ) $ ( 7,844 ) $ ( 16,049 ) Basic loss per share $ ( .10 ) $ ( .56 ) $ ( .43 ) $ ( 1.09 ) Diluted loss per share $ ( .10 ) $ ( .56 ) $ ( .43 ) $ ( 1.09 ) Loss per common share from discontinued operations, net of taxes Loss from discontinued operations, net of taxes $ ( 73 ) $ ( 173 ) $ ( 280 ) $ ( 441 ) Basic loss per share $ — $ ( .01 ) $ ( .01 ) $ ( .03 ) Diluted loss per share $ — $ ( .01 ) $ ( .01 ) $ ( .03 ) Net loss per common share Net loss $ ( 1,835 ) $ ( 8,979 ) $ ( 8,124 ) $ ( 16,490 ) Basic loss per share $ ( .10 ) $ ( .57 ) $ ( .44 ) $ ( 1.12 ) Diluted loss per share $ ( .10 ) $ ( .57 ) $ ( .44 ) $ ( 1.12 ) Weighted average shares outstanding: Basic weighted average shares outstanding 18,472 15,803 18,448 14,695 Add: dilutive effect of stock options — — — — Add: dilutive effect of warrants — — — — Diluted weighted average shares outstanding 18,472 15,803 18,448 14,695 For the three and nine months ended September 30, 2025, 1,185,738 and 1,146,901 weighted average number of shares of common stock underlying options and warrants, respectively, were excluded from the computation of diluted loss per share because the effect would be anti-dilutive. For the three and nine months ended September 30, 2024, 1,081,943 and 989,683 weighted average number of shares of common stock underlying options and warrants, respectively, were excluded from the computation of diluted loss per share because the effect would be anti-dilutive. 15 8. Long Term Debt Long-term debt consists of the following as of September 30, 2025, and December 31, 2024: Schedule of Long Term Debt (Amounts in Thousands) September 30, 2025 December 31, 2024 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 rates for first nine months of 2025 was 9.5 % (1) $ — $ — Term Loan dated July 31, 2023, payable in equal monthly installments of principal, balance due on May 15, 2027 . Effective interest rates for first nine months of 2025 was 8.4 % (1) 1,458 1,834 Capital Loan dated May 4, 2021, payable in equal monthly installments of principal, balance due on May 15, 2027 . Effective interest rates for first nine months of 2025 was 7.8 % (1) 175 253 Debt Issuance Costs (2) ( 135 ) (2) ( 178 ) (2) Notes Payable up to 2044, with annual interest rates ranging from 8.2 % to 10.7 % (3) 390 406 Total debt 1,888 2,315 Less current portion of long-term debt 536 550 Long-term debt $ 1,352 $ 1,765 (1) Our Revolving Credit facility is collateralized by our accounts receivable, and our Term loan and Capital loan are collateralized by our property, plant, and equipment. (2) Aggregate unamortized debt issuance costs in connection with the Company’s Credit Facility, which consists of the Revolving Credit, Terms loan and Capital loan, as applicable. (3) Includes a promissory note entered into on July 24, 2024, in connection with the purchase of the Company’s EWOC property which include a variable interest rate provision, which interest rate will be adjusted at the end of years five, ten and fifteen from the date of the note. Credit Facility The Company entered into a Second Amended and Restated Revolving Credit, Term Loan and Security Agreement, dated May 8, 2020, which has since been amended, with PNC National Association (“PNC” and “lender”), acting as agent and lender (the “Loan Agreement”). The Loan Agreement provides the Company with a credit facility with a maturity date of May 15, 2027 (the “Credit Facility”) which consists of the following as of September 30, 2025: (a) up to $ 12,500,000 revolving credit (the “Revolving Credit”), which borrowing capacity is subject to eligible receivables (as defined) and reduced by outstanding standby letters of credit ($ 3,350,000 as of September 30, 2025) and borrowing reductions that the Company’s lender may impose from time to time ($ 750,000 as of September 30, 2025); (b) a term loan (the “Term Loan”) of $ 2,500,000 , requiring monthly installments of $ 41,667 ; and (c) a capital expenditure loan (the “Capital Loan”) of approximately $ 524,000 , requiring monthly installments of principal of approximately $ 8,700 plus interest. Pursuant to the Loan Agreement, payments of annual interest rates are as follows: (i) interest due on the Revolving Credit is at prime (7.25% as of September 30, 2025) plus 2% or Secured Overnight Finance Rate (“SOFR”) (as defined in the Loan Agreement) plus 3.00% plus an SOFR Adjustment applicable for an interest period selected by the Company; (ii) interest due on the Capital Loan is at prime plus 2.50% or SOFR plus 3.50% plus an SOFR Adjustment applicable for an interest period selected by the Company; and (iii) interest due on the Term Loan is at prime plus 3.00% or SOFR plus 4.00% plus an SOFR Adjustment applicable for an interest period selected by the Company. 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. 16 No early termination fee shall apply if the Company pays off its obligations under the Loan Agreement after July 31, 2025. On March 11, 2025, the Company entered into an amendment to its Loan Agreement with its lender which provided the following, among other things: ● removed the quarterly fixed charge coverage ratio (“FCCR”) covenant testing requirement utilizing a twelve-month trailing basis; however, such FCCR testing requirement will be triggered on the day the Company fails to meet a minimum of $ 5,000,000 in daily Liquidity (defined under the Loan Agreement as borrowing availability under the Revolving Credit plus cash in the money market deposit account (“MMDA”) maintained with the Company’s lender). If triggered, the Company will be required to show a compliance of a FCCR ratio of not less than 1.15 to 1.00 utilizing a trailing twelve-month-period ended starting with the most recently reported fiscal quarter and each fiscal quarter thereafter. The FCCR testing requirement can be removed again once the Company is able to achieve a minimum of $ 5,000,000 in daily Liquidity for a thirty-consecutive-day period from the trigger date; ● revised the Facility Fee (as defined) from .375% to .500%. Such fee percentage will revert back to 0.375% at such time that the Company is able to achieve a minimum 1.15 to 1.00 ratio in FCCR on a twelve-month trailing basis ; and ● required payment of an amendment fee of $ 12,500 , by the Company which is being amortized over the remaining term of the Loan Agreement as interest expense-financing fees. As of September 30, 2025, the Company had no outstanding borrowing under its Revolving Credit and its Liquidity was approximately $ 23,844,000 . The Company’s Loan Agreement, as amended, with PNC contains certain financial covenant requirements, along with customary representations and warranties. A breach of any of these financial covenant requirements, unless waived by PNC, could result in a default under the Company’s Loan Agreement allowing its lender to immediately require the repayment of all outstanding debt under the Company’s Loan Agreement and terminate all commitments to extend further credit. The Company met all of its financial covenant requirements in the first, second and third quarters of 2025. 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 we transport to our 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. 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 believe 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. Michael O’Neill On November 25, 2024, purported shareholder Michael O’Neill filed a complaint in the Court of Chancery of the State of Delaware against the Company and all current directors of the Company, asserting individual and class action claims for alleged breach of contract and breach of fiduciary duty. The case is styled Michael O’Neill v. Perma-Fix Environmental Services, Inc., et al., C.A. No. 2024-1211-PAF. 17 The complaint purports to be brought by the named plaintiff individually and on behalf of all “similarly situated Perma-Fix stockholders.” According to the complaint, defendants allegedly made materially false and misleading statements in its proxy statement filed with the Securities and Exchange Commission on June 8, 2023 regarding the effect of broker non-votes as it relates to an amendment to the Company’s 2017 Stock Option Plan. In particular, the complaint alleges that defendants incorrectly stated in the proxy statement that broker non-votes would have no effect on the vote solicited to approve an amendment to the Company’s 2017 Stock Option Plan to increase by 600,000 shares the number of shares of Common Stock issuable under the plan, resulting in an alleged defective approval of the plan amendment. As of the date of this Form 10-Q, the Company has not issued any options under the plan relating to the additional shares included in the plan amendment. The Defendants are vigorously defending against the complaint. The Company’s insurance carrier is providing a defense in connection with this lawsuit, subject to a $ 1,000,000 self-insured retention and the terms and limitations contained in the insurance policy. Shareholder Demand Letter The Company’s Board received a demand letter, dated February 4, 2025 (the “Letter”), from a putative shareholder of the Company, claiming that a provision in the Company’s Amended and Restated Bylaws (“Bylaws”), requiring shareholders, to the fullest extent permitted by law, to indemnify the Company for attorneys’ fees in certain corporate proceedings in which the shareholder is not the prevailing party, must be removed. This provision of the Company’s Bylaws was adopted in 2012 when the Company adopted its Amended and Restated Bylaws. The statute prohibiting certain reimbursements of attorneys’ fees was adopted in 2015. The Letter demands that the Board amend its Bylaws to remove the particular provision in question. After reviewing the Letter, the Board established a Demand Review Committee (the “Committee”) to review, analyze, and evaluate the shareholder demand received above, and to make recommendations to the Board with respect to such demand. The Committee was ad hoc, in that the composition of the Committee will necessarily change in response to the specific shareholder demand. Initial members of the Committee are comprised of Board members who were not members of the Board in 2012 when the Company adopted its Bylaws and are disinterested and independent with respect to the matters set forth in the Letter discussed above. The Committee was authorized to engage, at the Company’s expense, experts and advisors that the Committee deems appropriate to assist in its review and determination. Based on the Committee’s review and analysis of the demand and the current case law, in connection with the above Letter, the Committee recommended to the Board to reject such demand as being baseless. Based on the Committee’s recommendation to the Board, the Board determined that the demand is meritless and rejected such demand. 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 $ 23,951,000 as of September 30, 2025. As of September 30, 2025, and December 31, 2024, 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 $ 13,084,000 and $ 12,680,000 , respectively, which included interest earned of $ 3,613,000 and $ 3,209,000 on the finite risk sinking funds as of September 30, 2025, and December 31, 2024, respectively. Interest income for the three and nine months ended September 30, 2025, was approximately $ 131,000 and $ 404,000 , respectively. Interest income for the three and nine months ended September 30, 2024, was approximately $ 153,000 and $ 451,000 , respectively. If we so elect, AIG is obligated to pay the Company an amount equal to 100 % of the finite risk sinking fund account balance in return for a complete release of liability from both the Company and any applicable regulatory agency using this policy as an instrument to comply with financial assurance requirements. 18 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. As of September 30, 2025, the total amount of standby letters of credit outstanding was approximately $ 3,350,000 , and the total amount of bonds outstanding was approximately $ 16,044,000 . 10. Discontinued Operations The Company’s discontinued operations consist of all our subsidiaries included in our Industrial Segment which encompasses subsidiaries divested in 2011 and earlier, as well as three previously closed locations. The Company’s discontinued operations had net losses of $ 73,000 (net of tax expense of $ 0 ) and $ 173,000 (net of tax expense of $ 79,000 ) for the three months ended September 30, 2025, and 2024, respectively, and net losses of $ 280,000 (net of $ 0 tax expense) and $ 441,000 (net of $ 0 tax expense) for the nine months ended September 30, 2025, and 2024, respectively. The losses (excluding tax expenses) were primarily due to costs incurred in the administration and continued monitoring/evaluation of our discontinued operations. The Company’s discontinued operations had no revenue for any of the periods noted above. The following table presents the major class of assets of discontinued operations as of September 30, 2025, and December 31, 2024. No assets and liabilities were held for sale at each of the periods noted. Schedule of Disposal Groups, Including Discontinued Operation Balance Sheet September 30, December 31, (Amounts in Thousands) 2025 2024 Current assets Other assets $ 37 $ 20 Total current assets 37 20 Long-term assets Property, plant and equipment, net (1) 146 130 Total long-term assets 146 130 Total assets $ 183 $ 150 Current liabilities Accounts payable $ 34 $ 90 Accrued expenses and other liabilities 163 153 Environmental liabilities 630 1 Total current liabilities 827 244 Long-term liabilities Closure liabilities 186 179 Environmental liabilities 134 766 Total long-term liabilities 320 945 Total liabilities $ 1,147 $ 1,189 (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. 19 The Company has two reporting segments, consisting of the Treatment and Services Segments, which are primarily based on a service offering approach and defined as follow: 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”) 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 (“D&D”) field, technical, and management personnel and services to commercial and government customers; and ○ on-site waste management services to commercial and governmental customers. - Nuclear services, which include: ○ technology-based services including engineering, 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 service capabilities include 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 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. The Company’s reporting segments exclude our corporate headquarter which serves to support its two reporting segments through various functions, such as our executives, finance, treasury, human resources, accounting, and legal departments. Financial results for the corporate headquarter are not considered by the CODM in evaluating the performance of the reportable segments. Our reporting segment also excludes our discontinued operations (see “Note 10 – Discontinued Operations”) which do not generate revenues. The Company’s CODM is represented by its Chief Executive Officer (“CEO”) and COO (or “CODM group”). The CODM group evaluates the performance of the Treatment and Services segments and allocates resources (including financial or capital resources) to each reporting segment based on revenue and income (loss) from operations by comparing actual results for these metrics to budgeted and forecasted amounts for these metrics on a monthly, quarterly and year-to-date basis. The Company’s CODM group does not evaluate and allocate resources for the reportable segments using assets; therefore, the Company does not disclose assets for its reporting segments. The table below summarizes income (loss) from operations for the Company’s two reporting segments and its corporate headquarter and provides reconciliation of such financial metric to the Company’s consolidated totals for the three and nine months ended September 30, 2025, and 2024 for our continuing operations. Significant segment expenses that are included in the measure of segment profit or losses for each reportable segment and regularly provided to the CODM group include payroll and benefit, material and supplies, disposal, transportation and subcontract expenses and are reflected separately, where applicable (in thousands). 20 Schedule of Segment Reporting Information Segment Reporting for the Three Months Ended September 30, 2025 Treatment Services Segments Total Corporate (1) Consolidated Total Revenue from external customers $ 13,114 $ 4,340 $ 17,454 $ — $ 17,454 Cost of Goods Sold: Payroll and benefits expenses 4,809 2,358 7,167 — 7,167 Material and supplies expenses 2,158 — 2,158 — 2,158 Disposal expenses 1,075 — 1,075 — 1,075 Transportation expenses 361 — 361 — 361 Subcontract expenses — 118 118 — 118 Other cost of goods sold (2) 2,445 1,573 4,018 — 4,018 Total cost of goods sold 10,848 4,049 14,897 — 14,897 Gross profit 2,266 291 2,557 — 2,557 SG&A: Payroll and benefits 947 547 1,494 997 2,491 Other SG&A (3) 386 199 585 1,007 1,592 Total SG&A 1,333 746 2,079 2,004 4,083 Research and development 257 2 259 83 342 Loss on disposal of property and equipment 4 — 4 — 4 Income (loss) from operations $ 672 $ ( 457 ) $ 215 $ ( 2,087 ) ( 1,872 ) Interest income 266 Interest expense ( 116 ) Interest expense-financing fees ( 22 ) Other expense ( 18 ) Loss from continuing operations before taxes ( 1,762 ) Income tax expense — Loss from continuing operations, net of taxes $ ( 1,762 ) Segment Reporting for the Three Months Ended September 30, 2024 Treatment Services Segments Total Corporate (1) Consolidated Total Revenue from external customers $ 9,064 $ 7,748 $ 16,812 $ — $ 16,812 Cost of goods sold: Payroll and benefit expenses 4,275 2,636 6,911 — 6,911 Material and supplies expenses 1,035 — 1,035 — 1,035 Disposal expenses 788 — 788 — 788 Transportation expenses 322 — 322 — 322 Subcontract expenses — 2,135 2,135 — 2,135 Other cost of goods sold (2) 2,234 2,053 4,287 — 4,287 Total cost of goods sold 8,654 6,824 15,478 — 15,478 Gross profit 410 924 1,334 — 1,334 SG&A: Payroll and benefits 743 643 1,386 848 2,234 Other SG&A (3) 341 172 513 885 1,398 Total SG&A 1,084 815 1,899 1,733 3,632 Research and development 205 34 239 64 303 (Loss) income from operations $ ( 879 ) $ 75 $ ( 804 ) $ ( 1,797 ) ( 2,601 ) Interest income 292 Interest expense ( 121 ) Interest expense-financing fees ( 18 ) Other income 59 Loss from continuing operations before taxes ( 2,389 ) Income tax expense 6,417 Loss from continuing operations, net of taxes $ ( 8,806 ) 21 Segment Reporting for the Nine Months Ended September 30, 2025 Treatment Services Segments Total Corporate (1) Consolidated Total Revenue from external customers $ 33,696 $ 12,263 $ 45,959 $ — $ 45,959 Cost of Goods Sold: Payroll and benefits expenses 13,988 6,245 20,233 — 20,233 Material and supplies expenses 4,744 — 4,744 — 4,744 Disposal expenses 2,391 — 2,391 — 2,391 Transportation expenses 1,222 — 1,222 — 1,222 Subcontract expenses — 1,184 1,184 — 1,184 Other cost of goods sold (2) 7,269 4,155 11,424 — 11,424 Total cost of goods sold 29,614 11,584 41,198 — 41,198 Gross profit 4,082 679 4,761 — 4,761 SG&A: Payroll and benefits 2,763 1,732 4,495 2,869 7,364 Other SG&A (3) 1,276 573 1,849 3,015 4,864 Total SG&A 4,039 2,305 6,344 5,884 12,228 Research and development 780 29 809 228 1,037 Loss (gain) on disposal of property and equipment 3 ( 5 ) ( 2 ) — ( 2 ) Loss from operations $ ( 740 ) $ ( 1,650 ) $ ( 2,390 ) $ ( 6,112 ) ( 8,502 ) Interest income 901 Interest expense ( 351 ) Interest expense-financing fees ( 63 ) Other income 171 Loss from continuing operations before taxes ( 7,844 ) Income tax expense — Loss from continuing operations, net of taxes $ ( 7,844 ) Segment Reporting for the Nine Months Ended September 30, 2024 Treatment Services Segments Total Corporate (1) Consolidated Total Revenue from external customers $ 26,116 $ 18,299 $ 44,415 $ — $ 44,415 Cost of goods sold: Payroll and benefit expenses 11,970 7,065 19,035 — 19,035 Material and supplies expenses 2,876 — 2,876 — 2,876 Disposal expenses 4,211 — 4,211 — 4,211 Transportation expenses 837 — 837 — 837 Subcontract expenses — 6,498 6,498 — 6,498 Other cost of goods sold (2) 7,061 4,489 11,550 — 11,550 Total cost of goods sold 26,955 18,052 45,007 — 45,007 Gross (loss) profit ( 839 ) 247 ( 592 ) — ( 592 ) SG&A: Payroll and benefits 2,145 1,799 3,944 2,517 6,461 Other SG&A (3) 1,079 474 1,553 2,617 4,170 Total SG&A 3,224 2,273 5,497 5,134 10,631 Research and development 609 87 696 176 872 Loss on disposal of property and equiment — 1 1 — 1 Loss from operations $ ( 4,672 ) $ ( 2,114 ) $ ( 6,786 ) $ ( 5,310 ) ( 12,096 ) Interest income 679 Interest expense ( 346 ) Interest expense-financing fees ( 47 ) Other income 61 Loss from continuing operations before taxes ( 11,749 ) Income tax expense 4,300 Loss from continuing operations, net of taxes $ ( 16,049 ) (1) Amounts reflect the activity for corporate headquarters not included in the segment reporting information. (2) Other cost of goods sold for each reportable segment includes: Treatment - lab, regulatory, repair and maintenance, depreciation and amortization, travel, outside services and general expenses. Services - material and supplies, disposal, transportation, lab, regulatory, repair and maintenance, depreciation and amortization, travel, outside services and general expenses. (3) Other SG&A for each reportable segment and Corporate includes: Treatment -depreciation and amortization, travel, outside services, repair and maintenance and general expenses. Services - travel, outside services, repair and maintenance and general expenses. Corporate -repair and maintenance, depreciation and amortization, travel, public company, outside services and general expenses. 22 The following table presents depreciation and amortization for the three and nine months ended September 30, (in thousand): Schedule of Depreciation and Amortization Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Treatment $ 387 $ 370 $ 1,158 $ 1,104 Services 28 44 109 133 Total segment 415 414 1,267 1,237 Corporate 11 19 32 58 Total $ 426 $ 433 $ 1,299 $ 1,295 Depreciation and amortization $ 426 $ 433 $ 1,299 $ 1,295 The following table presents capital expenditures for the three and nine months ended September 30, (in thousand): Schedule of Capital Expenditures Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Treatment $ 1,145 $ 1,203 $ 2,525 $ 1,820 Services 31 180 83 404 Total segment 1,176 1,383 2,608 2,224 Corporate — — — — Total $ 1,176 (1) $ 1,383 (2) $ 2,608 (1) $ 2,224 (2) Capital expenditures $ 1,176 (1) $ 1,383 (2) $ 2,608 (1) $ 2,224 (2) (1) Net of financed amount of $ 30 and $ 162 for the three and nine months ended September 30, 2025, respectively. (2) Net of financed amount of $ 361 and $ 406 for the three and nine months ended September 30, 2024, respectively. 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 expenses of $ 0 and $ 6,417,000 for continuing operations for the three months ended September 30, 2025, and the corresponding period of 2024, respectively, and income tax expenses of $ 0 and $ 4,300,000 for continuing operations for the nine months ended September 30, 2025, and the corresponding period of 2024, respectively. The Company’s effective tax rates were approximately 0 % and 268.6 % for the three months ended September 30, 2025, and the corresponding period of 2024, respectively, and 0 % and 36.6 % for the nine months ended September 30, 2025, and the corresponding period of 2024, respectively. The Company’s effective tax rate for the each of the periods above was impacted by the Company’s recognition of a full valuation allowance against its U.S federal and state deferred tax assets in the quarter ended September 30, 2024. On July 4, 2025, the United States enacted tax reform legislation through the One Big Beautiful Bill Act (“OBBBA”), which changes existing U.S. tax laws, including extending or making permanent certain provisions of the Tax Cuts and Jobs Act, repealing certain clean energy initiatives, in addition to other changes. The Company has evaluated the provisions of the OBBBA and determined that the enactment of the legislation had no material impact to the Company’s condensed consolidated financial statements for the interim period ended September 30, 2025. Additionally, the Company does not expect OBBBA to have a material impact to the Company’s full year 2025 effective tax rate and its consolidated financial statements for the year ended December 31, 2025, due to the Company’s valuation allowance position, among other things. The Company continues to monitor the potential future impacts of the OBBBA on the Company’s consolidated financial statements. 13. Subsequent Events Management evaluated events occurring subsequent to September 30, 2025, through November 10, 2025, the date these condensed consolidated financial statements were available for issuance and determined that no material subsequent events occurred that would have required adjustment or disclosure in the condensed consolidated financial statements. 23 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 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; ● effect of reductions in the level of government funding or government programs; ● impact of One Big Beautiful Bill Act (“OBBBA”); ● continued improvement in financial results in the fourth quarter of 2025 and in 2026; ● revenue contribution from the West Valley Development Project to ramp up in 2026; ● approvals of scope attributable to the Company under the West Valley Development Project contract; ● impact from prolonged government shutdown; ● effect of prolonged government shutdown to our operations lessened by our backlog and increased commercial and international waste receipts; ● operations of the West Valley Development Project and potential value thereunder; ● full waste treatment operations of Direct-Feed Low-Activity Waste (“DFLAW”); ● reducing operating costs and non-essential expenditures; ● ability to meet loan agreement financial covenant requirements; ● cash flow requirements for the next twelve months; ● sufficient cash flow and Liquidity to fund operations for the next twelve months; ● reduction in Liquidity; ● expansion of international initiatives and market; ● amount of capital expenditures; ● manner in which the applicable government will be required to spend funding to remediate various sites; ● effect of additional losses; ● maintain skilled and stabilized labor force under the Bargaining Collective Agreement; ● funding of operating and capital expenditures from cash from operations, Liquidity under our Loan Agreement, and/or financing; ● our PFAS (Per- and polyfluoroalkyl) technology process will exceed other performance methods; ● receipt of an additional 50,000 gallons of aqueous film-forming foam (“AFFF”) liquid; ● deployment of the second-generation unit; ● triple our production capacity under our second-generation PFAS System; ● strategy for our Perma-Fix PFAS System; ● advancement of our PFAS technology; ● funding of remediation expenditures for sites from funds generated internally; ● compliance with environmental regulations; ● potential effect of being a potentially responsible party (“PRP”); and ● potential violations of environmental laws and attendant remediation at our facilities. 24 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; ● impact of government shutdown; ● inability to properly bid contracts; ● reduction in or inability to obtain new contracts with federal, state and local governments, agencies and departments, resulting in a reduction in 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; ● 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; ● tariff actions and uncertainties related to trade wars; ● 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; ● 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; ● 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; ● new or additional requirements to handle low-level radioactive and hazardous waste materials; ● 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 or termination 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; ● supply chain difficulties; ● pricing adjustments; ● cost reduction measures; ● new governmental regulations; and ● risk factors and other factors set forth in “Special Note Regarding Forward-Looking Statements” contained in the Company’s 2024 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”) of the first and second quarters of 2025 and this third quarter 2025 10-Q. 25 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 the forward-looking statements as noted above, which apply only to as of the date of this Form 10-Q. We undertake no obligation to update these forward-looking statements, even if our situation changes in the future. Overview Our revenue for the third quarter of 2025 reflects improvements from the corresponding period of 2024. Overall revenue increased by $642,000 or 3.8% to $17,454,000 for the three months ended September 30, 2025, from $16,812,000 in the same period of 2024. The increase was entirely from our Treatment Segment where revenue increased by $4,050,000 or approximately 44.7% to $13,114,000 for the three months ended September 30, 2025, from $9,064,000 in the same period of 2024. The increase in Treatment Segment revenue was primarily due to increased waste volume and higher averaged price waste from waste mix, which included increased revenue generated from both international and commercial clients. Services Segment revenue decreased $3,408,000 or 44.0% to $4,340,000 for the three months ended September 30, 2025, from $7,748,000 for the same period of 2024. The decrease in revenue in the Services Segment was attributed in part, to delays in project mobilizations from certain existing contracts along with delays in project awards primarily from government related entities. Gross profit increased $1,223,000 or 91.7% for the three months ended September 30, 2025, as compared to the corresponding period of 2024. Selling, General, and Administrative (“SG&A”) expenses increased by $451,000 or 12.4% for the three months ended September 30, 2025, as compared to the corresponding period of 2024. Our overall revenue increased by $1,544,000 or 3.5% to $45,959,000 for the nine months ended September 30, 2025, from $44,415,000 for the corresponding period of 2024. Similar to the third quarter of 2025, the increase was entirely from our Treatment Segment where revenue increased by $7,580,000 or approximately 29.0% to $33,696,000 for the nine months ended September 30, 2025, from $26,116,000 in the same period of 2024. The increase in Treatment Segment revenue was primarily due to increased waste volume and higher averaged price waste from waste mix, which included increased revenue generated from both international and commercial clients. Services Segment revenue decreased $6,036,000 or 33.0% to $12,263,000 for the nine months ended September 30, 2025, from $18,299,000 for the same period of 2024 due in part, to delays in project mobilizations from certain existing contracts and delays in procurements that resulted from changes to the new Administration and supporting policies that occurred in the first half of 2025. We generated an overall gross profit of $4,761,000 for the nine months ended September 30, 2025, as compared to a gross loss of $592,000 for the corresponding period of 2024, reflecting an increase in gross profit of $5,353,000 or 904.2%. SG&A expenses increased by $1,597,000 or 15.0% for the nine months ended September 30, 2025, as compared to the corresponding period of 2024. See “Results of Operations” below for discussions of certain financial metrics pertaining to our operations, which includes our two reportable segments. 26 We have seen steady improvements in our revenue and results of operations in each of the quarters in 2025. We believe we are positioned for improvements in the fourth quarter of 2025 and in 2026 (see a discussion of the recent federal government shutdown that may impact our results of operations below). Our Treatment Segment backlog stands at approximately $15,396,000 as of September 30, 2025, an increase of $7,537,000 or 95.9% from the December 31, 2024, balance of $7,859,000. In December 2024, BWXT Technologies and its team, of which we are a member, were awarded the West Valley Project contract for the cleanup operations at the West Valley Development Project in West Valley, New York. The contract has a 10-year ordering period with a maximum value of up to $3 billion for all of the services rendered by all members of the team that are performed for up to 15 years. Revenue contributed from this contract has been and is expected to be limited in 2025; however, we expect revenue to ramp up in 2026 as our scope under the contract is further defined, approved and transitions into operation. Also, we believe that our Perma-Fix Northwest Richland, Inc. (“PFNWR”) facility is positioned to support the DFLAW program at Hanford, Washington as hot commissioning of the Low-Activity Waste Vitrification Facility at Hanford has begun and is working toward full waste treatment operations. We continue to focus on increasing our expansion into the international markets which is reflected in revenue generated from foreign entities of approximately $4,893,000 for the nine months ended September 30, 2025, as compared to $1,377,000 for the corresponding period of 2024, an increase of $3,516,000 or 255.3%. Finally, we continue our aggressive approach in research and development (“R&D”), sales and marketing efforts and capital expenditures of our new PFAS technology which adversely impacted our results of operations for the first nine months of 2025 (See “Known Trends and Uncertainties – New Processing Technology” for a discussion of our new technology). We are continually monitoring our operating costs to ensure alignment with our revenue level. Effective October 1, 2025, the federal government went into a partial shutdown from failure to pass a new fiscal year funding bill. As a result of the government shutdown, we have been recently informed by certain government related clients that waste shipments are likely to be delayed until the government shutdown is resolved. Although the impact of the government shutdown has been limited at this time, a prolonged shutdown may materially impact our results of operations and liquidity (See “Known Trends and Uncertainties – Federal Funding” within this MD&A for a discussion of the impacts that a prolonged federal government shutdown may have on our results of operations). We believe that potential negative impact to our results of operations and liquidity from a prolonged government shutdown may be lessened by our Treatment Segment backlog, along with increased receipts from international and commercial clients. Business Environment Our Treatment and Services Segments’ business continue to be heavily dependent on services that we provide to federal governmental clients, primarily as subcontractors for others who are 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, current economic and political conditions, government reductions, government budget issues, government shutdown and the manner in which the applicable government authority will be required to spend funding to remediate various sites. In addition, our governmental contracts and subcontracts relating to activities at federal governmental sites are generally subject to termination for convenience at any time, at the government’s option. Significant reductions in the level of governmental funding, government shutdown 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, liquidity and cash flows. Results of Operations The reporting of financial results and pertinent discussions are tailored to our two reportable segments: The Treatment Segment and Services Segment. 27 Summary – Three and Nine Months Ended September 30, 2025, and 2024 Three Months Ended Nine Months Ended September 30, September 30, Consolidated (amounts in thousands) 2025 % 2024 % 2025 % 2024 % Net revenues $ 17,454 100.0 $ 16,812 100.0 $ 45,959 100.0 $ 44,415 100.0 Cost of goods sold 14,897 85.4 15,478 92.1 41,198 89.6 45,007 101.3 Gross profit (loss) 2,557 14.6 1,334 7.9 4,761 10.4 (592 ) (1.3 ) Selling, general and administrative 4,083 23.4 3,632 21.6 12,228 26.6 10,631 23.9 Research and development 342 2.0 303 1.8 1,037 2.3 872 2.0 Loss (gain) on disposal of property and equipment 4 — — — (2 ) — 1 — Loss from operations (1,872 ) (10.8 ) (2,601 ) (15.5 ) (8,502 ) (18.5 ) (12,096 ) (27.2 ) Interest income 266 1.5 292 1.7 901 1.9 679 1.5 Interest expense (116 ) (.6 ) (121 ) (.7 ) (351 ) (.8 ) (346 ) (.8 ) Interest expense-financing fees (22 ) (.1 ) (18 ) (.1 ) (63 ) (.1 ) (47 ) (.1 ) Other (18 ) (.1 ) 59 .4 171 .4 61 .1 Loss from continuing operations before taxes (1,762 ) (10.1 ) (2,389 ) (14.2 ) (7,844 ) (17.1 ) (11,749 ) (26.5 ) Income tax expense — — 6,417 38.2 — — 4,300 9.6 Loss from continuing operations, net of taxes $ (1,762 ) (10.1 ) $ (8,806 ) (52.4 ) $ (7,844 ) (17.1 ) $ (16,049 ) (36.1 ) Revenues Consolidated revenues increased $642,000 for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, as follows: (In thousands) 2025 % Revenue 2024 % Revenue Change % Change Treatment Government waste $ 9,503 54.4 $ 5,794 34.5 $ 3,709 64.0 Hazardous/non-hazardous (1) 1,375 7.9 1,199 7.1 176 14.7 Other nuclear waste 2,236 12.8 2,071 12.3 165 8.0 Total 13,114 75.1 9,064 53.9 4,050 44.7 Services Nuclear services 2,422 13.9 6,433 38.3 (4,011 ) (62.4 ) Technical services 1,918 11.0 1,315 7.8 603 45.9 Total 4,340 24.9 7,748 46.1 (3,408 ) (44.0 ) Total $ 17,454 100.0 $ 16,812 100.0 $ 642 3.8 (1) Includes waste generated by government clients of $560,000 and $784,000 for the three months ended September 30, 2025, and the corresponding period of 2024, respectively. Treatment Segment revenue increased by $4,050,000 or 44.7% for the three months ended September 30, 2025, over the same period in 2024. The overall increase in revenue in the Treatment Segment was primarily due to higher waste volume and higher averaged price waste from waste mix. Our Treatment Segment revenue was also positively impacted by our international initiatives, which resulted in an increase in revenue from international customers of approximately $798,000 or 310.5% as compared to the same period of last year. Services Segment revenue decreased by approximately $3,408,000 or 44.0%. The decrease in revenue in the Services Segment was due to reasons as discussed in the “Overview” section. Additionally, our Services Segment revenues are project based; as such, the scope, duration, and completion of each project vary. 28 Consolidated revenues increased $1,544,000 for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, as follows: (In thousands) 2025 % Revenue 2024 % Revenue Change % Change Treatment Government waste $ 23,715 51.6 $ 16,668 37.5 $ 7,047 42.3 Hazardous/non-hazardous (1) 3,848 8.4 3,829 8.6 19 0.5 Other nuclear waste 6,133 13.3 5,619 12.7 514 9.1 Total 33,696 73.3 26,116 58.8 7,580 29.0 Services Nuclear services 7,478 16.3 15,563 35.0 (8,085 ) (52.0 ) Technical services 4,785 10.4 2,736 6.2 2,049 74.9 Total 12,263 26.7 18,299 41.2 (6,036 ) (33.0 ) Total $ 45,959 100.0 $ 44,415 100.0 $ 1,544 3.5 (1) Includes waste generated by government clients of $1,569,000 and $2,330,000 for the nine months ended September 30, 2025, and the corresponding period of 2024, respectively. Treatment Segment overall revenue increased by $7,580,000 or 29.0% for the three months ended September 30, 2025, over the same period in 2024. The overall increase in revenue in the Treatment Segment was primarily due to higher waste volume and higher averaged price waste from waste mix. Our Treatment Segment revenue was also positively impacted by our international initiatives, which generated an increase in revenue of approximately $3,378,000 or 314.5% as compared to the same period of last year. Services Segment revenue decreased by approximately $6,036,000 or 33.0%. The decrease in revenue in the Services Segment was due to reasons as discussed in the “Overview” section. Additionally, our Services Segment revenues are project based; as such, the scope, duration, and completion of each project vary. Cost of Goods Sold Cost of goods sold decreased $581,000 for the quarter ended September 30, 2025, as compared to the quarter ended September 30, 2024, as follows: % % (In thousands) 2025 Revenue 2024 Revenue Change Treatment $ 10,848 82.7 $ 8,654 95.5 $ 2,194 Services 4,049 93.3 6,824 88.1 (2,775 ) Total $ 14,897 85.4 $ 15,478 92.1 $ (581 ) Cost of goods sold for the Treatment Segment increased by approximately $2,194,000 or 25.4%, primarily due to increased revenue. Treatment Segment’s variable costs increased by approximately $1,544,000 primarily due to overall higher material and supplies, disposal and transportation costs. Within our Treatment Segment, variable cost categories can fluctuate based on waste mix. Treatment Segment’s overall fixed costs were higher by approximately $650,000 resulting from the following: salaries and payroll related expenses were higher by approximately $471,000 which included higher salary expenses from cost of living adjustments (“COLA”) that became effective during the quarter; overall general expenses were higher by approximately $261,000 in various categories which included higher utility expenses of approximately $103,000; travel expense were higher by $66,000; and maintenance expenses were lower by approximately $148,000 as in the second and third quarter of 2024, the Treatment Segment experienced unexpected equipment breakdowns that required replacements or repairs. Services Segment cost of goods sold decreased $2,775,000 or 40.7% primarily due to lower revenue. The decrease in cost of goods sold was primarily due to overall lower salaries/payroll related, outside services, and travel costs totaling approximately $2,480,000; lower depreciation expenses of approximately $16,000; and overall lower material and supplies, disposal, regulatory and lab costs totaling approximately $279,000. Included within cost of goods sold is depreciation and amortization expense of $412,000 and $408,000 for the three months ended September 30, 2025, and 2024, respectively. 29 Cost of goods sold decreased $3,809,000 for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, as follows: % % (In thousands) 2025 Revenue 2024 Revenue Change Treatment $ 29,614 87.9 $ 26,955 103.2 $ 2,659 Services 11,584 94.5 18,052 98.7 (6,468 ) Total $ 41,198 89.6 $ 45,007 101.3 $ (3,809 ) Cost of goods sold for the Treatment Segment increased by approximately $2,659,000 or 9.9%. Treatment Segment’s variable costs increased by approximately $784,000 primarily due to the following: overall material and supplies, lab, and transportation costs were higher by approximately $2,281,000; variable payroll costs (overtime) were higher by approximately $323,000 due to increased waste volume production; and disposal costs were lower by approximately $1,820,000. Within our Treatment Segment, variable cost categories can fluctuate based on waste mix. Treatment Segment’s overall fixed costs were higher by approximately $1,875,000 resulting from the following: salaries and payroll related expenses were higher by $1,691,000 due to higher headcount and COLA effected during the third quarter of 2025; general expenses were higher by $378,000 primarily due to higher utility costs; travel expenses were higher by approximately $70,000; depreciation expenses were higher by $62,000 due to more finance leases and equipment purchases; maintenance expenses were lower by approximately $97,000 as the in the prior year, the Treatment Segment experienced unexpected equipment breakdowns that required replacements and repairs; and regulatory expenses were lower by approximately $229,000 from fewer regulatory matters. Services Segment cost of goods sold decreased $6,468,000 or 35.8% primarily due to lower revenue. The decrease in cost of goods sold was primarily due to overall lower salaries/payroll related, outside services, and travel costs totaling approximately $6,492,000; lower depreciation expenses totaling approximately $24,000 as certain equipment became fully depreciated in 2025; lower general expenses of approximately $106,000 in various categories; and overall higher material and supplies, disposal, and regulatory costs totaling approximately $154,000. Included within cost of goods sold is depreciation and amortization expense of $1,256,000 and $1,218,000 for the nine months ended September 30, 2025, and 2024, respectively. Gross Profit (Loss) Gross profit for the quarter ended September 30, 2025, increased $1,223,000 over the same period of 2024, as follows: % % (In thousands) 2025 Revenue 2024 Revenue Change Treatment $ 2,266 17.3 $ 410 4.5 $ 1,856 Services 291 6.7 924 11.9 (633 ) Total $ 2,557 14.6 $ 1,334 7.9 $ 1,223 Treatment Segment gross profit increased by $1,856,000 or approximately 452.7% and gross margin increased to 17.3% % from 4.5% primarily due to higher revenue from higher waste volume and higher averaged price from waste mix. The increase in fixed costs within the Treatment Segment negatively impacted gross profit and gross margin. Services Segment gross profit decreased by $633,000 or approximately 68.5% and gross margin decreased to 6.7% from 11.9%. The decreases were attributed primarily to lower revenue. Our Services Segment gross margin is impacted by our current projects which are competitively bid on and will therefore, have varying margin structures. 30 Gross profit for the nine months ended September 30, 2025, increased $5,353,000 over the same period in 2024, as follows: % % (In thousands) 2025 Revenue 2024 Revenue Change Treatment $ 4,082 12.1 $ (839 ) (3.2 ) $ 4,921 Services 679 5.5 247 1.3 432 Total $ 4,761 10.4 $ (592 ) (1.3 ) $ 5,353 Treatment Segment gross profit increased by $4,921,000 or approximately 586.5% and gross margin increased to 12.1% % from (3.2)% primarily due to higher revenue from higher waste volume and higher averaged price from waste mix. The increase in fixed costs within the Treatment Segment negatively impacted gross profit and gross margin. Services Segment gross profit increased by $432,000 or approximately 174.9% and gross margin improved from 1.3% to 5.5%. The increases were attributed primarily to overall improved margin on projects and lower fixed costs which were offset by the impact of lower revenue. Our Services Segment gross margin is impacted by our current projects which are competitively bid on and will therefore, have varying margin structures. SG&A SG& A expenses increased $451,000 for the three months ended September 30, 2025, as compared to the corresponding period for 2024, as follows: (In thousands) 2025 % Revenue 2024 % Revenue Change Administrative $ 2,004 — $ 1,733 — $ 271 Treatment 1,333 10.2 1,084 12.0 249 Services 746 17.2 815 10.5 (69 ) Total $ 4,083 23.4 $ 3,632 21.6 $ 451 Administrative SG&A expenses were higher primarily due to higher salaries, payroll related expenses and stock option compensation expenses totaling approximately $149,000. The hiring of the Company’s Chief Operation Officer (“COO”) in January 2025 and COLA effected during the third quarter of 2025 contributed to this increase. The remaining higher expenses in Administrative SG&A expenses were primarily due to higher outside services expenses of approximately $93,000 from more legal and business-related matters, higher general expenses by approximately $10,000 in various categories and higher travel expenses of approximately $19,000 due to more travel by senior management. Treatment Segment SG&A expenses were higher primarily due to the following: salaries and payroll related expenses were higher by approximately $204,000 as more employee hours were allocated to marketing initiatives of our new PFAS technology and overall business development; general expense were higher by approximately $37,000 in various categories; travel expenses were higher by $16,000; and outside services expenses were lower by approximately $8,000 from fewer consulting matters. Services Segment SG&A expenses were lower primarily due to lower salaries and payroll related expenses of approximately $96,000 as fewer employee hours were allocated in supporting administrative/marketing functions due to lower revenue. The lower expenses were offset by overall higher outside services, general and travel expense totaling approximately $27,000. Included in SG&A expenses is depreciation and amortization expenses of $14,000 and $25,000 for the three months ended September 30, 2025, and 2024, respectively. SG& A expenses increased $1,597,000 for the nine months ended September 30, 2025, as compared to the corresponding period for 2024, as follows: (In thousands) 2025 % Revenue 2024 % Revenue Change Administrative $ 5,884 — $ 5,134 — $ 750 Treatment 4,039 12.0 3,224 12.3 815 Services 2,305 18.8 2,273 12.4 32 Total $ 12,228 26.6 $ 10,631 23.9 $ 1,597 31 Administrative SG&A expenses were higher primarily due to higher salaries, payroll related expenses and stock option compensation expenses totaling approximately $352,000. The hiring of the Company’s COO in January 2025 and COLA effected during the third quarter of 2025 contributed to this increase. The remaining higher expenses in Administrative SG&A expenses were primarily due to higher outside services expenses of approximately $321,000 from more legal and business-related matters, higher general expenses of approximately $31,000 in various categories and higher travel expenses of approximately $46,000 due to more travel by senior management. Treatment Segment SG&A expenses were higher primarily due to the following: salaries and payroll related expenses were higher by approximately $618,000 as more employee hours were allocated to marketing initiatives of our new PFAS technology and overall business development; general expense were higher by approximately $159,000 in various categories (which include higher tradeshow expenses of approximately $77,000); travel expenses were higher by $27,000; bad debt expenses were higher by approximately $29,000; and outside services expenses were lower by approximately $18,000 from few consulting matters. Services Segment SG&A expenses were higher primarily due to the following: general expenses were higher by approximately $48,000 in various categories; outside services expenses were higher by approximately $45,000 due to more consulting matters; travel expense were slightly higher by approximately $6,000; and salaries and payroll related expenses were lower by approximately $67,000 as fewer employee hours were allocated in supporting administrative/marketing functions due to lower revenue. Included in SG&A expenses is depreciation and amortization expenses of $43,000 and $77,000 for the nine months ended September 30, 2024, and 2023, respectively. Interest Income Interest income decreased by approximately $26,000 and increased by approximately $222,000 for the three and nine months ended September 30, 2025, respectively, as compared to the corresponding period of 2024. The decrease in interest income for the third quarter of 2025 as compared to the corresponding quarter of 2024 was primarily due to lower interest income earned from our finite risk sinking fund from lower interest rate. The increase in interest income for the nine months ended September 30, 2025, as compared to the corresponding period of 2024 was primarily due to higher interest income earned from funds deposited into our money market deposit account (“MMDA”) from the two equity raises that were completed in May 2024 and December 2024, offset by lower interest income earned from our finite risk sinking fund from lower interest rate. Income Taxes We use 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 we operate, to determine our quarterly provision for income taxes. We had income tax expenses of $0 and $6,417,000 for continuing operations for the three months ended September 30, 2025, and the corresponding period of 2024, respectively, and income tax expenses of $0 and $4,300,000 for continuing operations for the nine months ended September 30, 2025, and the corresponding period of 2024, respectively. Our effective tax rates were approximately 0% and 268.6% for the three months ended September 30, 2025, and the corresponding period of 2024, respectively, and 0% and 36.6% for the nine months ended September 30, 2025, and the corresponding period of 2024, respectively. Our effective tax rate for the each of the periods above was impacted by our recognition of a full valuation allowance against its U.S federal and state deferred tax assets in the quarter ended September 30, 2024. On July 4, 2025, the United States enacted tax reform legislation through the OBBBA, which changes existing U.S. tax laws, including extending or making permanent certain provisions of the Tax Cuts and Jobs Act, repealing certain clean energy initiatives, in addition to other changes. We evaluated the provisions of the OBBBA and determined that the enactment of the legislation had no material impact to our condensed consolidated financial statements for the interim period ended September 30, 2025. Additionally, we do not expect OBBBA to have a material impact to our full year 2025 effective tax rate and our consolidated financial statements for the year ended December 31, 2025, due to our valuation allowance position, among other things. We continue to monitor the potential future impacts of the OBBBA on the Company’s consolidated financial statements. 32 Liquidity and Capital Resources Our cash flow requirements during the nine months ended September 30, 2025, were financed by our Liquidity (defined under our Loan Agreement as borrowing availability under the revolving credit plus cash in our MMDA maintained with our lender). Our MMDA consist of cash received in connection with the sale of our Common Stock completed in 2024 as discussed below under “Financing Activities.” We believe 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, R&D on our PFAS technology and capital expenditures (which include our PFAS technology) (see “Known Trends and Uncertainties – New Processing Technology” within this MD&A for a discussion of this technology). We plan to fund these requirements from our operations and our Liquidity. 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. As of September 30, 2025, we had no outstanding borrowing under our Revolving Credit and our Liquidity was approximately $23,844,000. We believe that our cash flows from operations and our Liquidity should be sufficient to fund our operations for the next twelve months. Assuming the federal government shutdown is quickly resolved, we believe our operations should improve in the fourth quarter of 2025 and in 2026. If we continue to incur losses such as in the first nine months of 2025, this could cause a reduction in our Liquidity and have a material adverse effect on our results of operations and our business. The following table reflects the cash flow activities during the first nine months of 2025 and 2024. Nine Months Ended September 30, (In thousands) 2025 2024 Cash used in operating activities of continuing operations $ (8,312 ) $ (10,971 ) Cash used in operating activities of discontinued operations (317 ) (468 ) Cash used in investing activities of continuing operations (2,683 ) (2,800 ) Cash used in investing activities of discontinued operations (36 ) (49 ) Cash (used in) provided by financing activities of continuing operations (832 ) 17,805 Effect of exchange rate changes in cash 21 1 (Decrease) increase in cash and finite risk sinking fund (restricted cash) $ (12,159 ) $ 3,518 As of September 30, 2025, we were in a positive cash position with no revolving credit balance. As of September 30, 2025, we had cash on hand of approximately $16,412,000. Operating Activities Cash used in operating activities of our continuing operations during the first nine months of 2025 consisted mostly of the net loss that we incurred of approximately $7,844,000, adjusted for certain non-cash items, such as $597,000 of stock-based compensation expenses and $1,299,000 of depreciation and amortization expenses. Cash flow decrease of approximately $2,838,000 resulting from net change in assets and liabilities reflects increases in unbilled and accounts receivable (net of provision for credit losses) totaling approximately $3,771,000, a net decrease in accounts payables, accrued expenses, deferred revenue and other accruals totaling approximately $745,000, offset by a net decrease in inventories, prepaids and other assets totaling approximately of $1,678,000. Our accounts receivables are impacted by timing of invoicing and collections. Our contracts with our customers are subject to various payment terms and conditions. Cash used in operating activities of our continuing operations during the first nine months of 2024 consisted primarily of the significant net loss that we incurred of approximately $16,049,000, adjusted for certain non-cash items, which included $466,000 of stock-based compensation expenses, $1,295,000 of depreciation and amortization expenses and $4,300,000 of deferred income tax expenses. Cash flow decrease of approximately $1,383,000 resulting from net change in assets and liabilities included a net decrease in accounts payables, accrued expenses, deferred revenue and other accruals totaling approximately $5,805,000, offset by decreases in accounts receivable (net of recovery in credit losses) and unbilled receivables totaling approximately $2,145,000, and a net decrease in inventories and prepaid and other assets totaling approximately of $2,277,000. 33 Cash used in operating activities of our discontinued operations in the first nine months of 2025 and 2024 consisted primarily of expenses incurred in connection with management and administration of regulatory matters for the Company’s remediation projects. We had working capital of $18,393,000 (which included working capital of our discontinued operations) as of September 30, 2025, as compared to working capital of $28,283,000 as of December 31, 2024. The decrease in our working capital was primarily due to the losses incurred from our operations during the nine months of 2025 as previously discussed. Investing Activities Cash used in investing activities of our continuing operations in the first nine months of 2025 consisted mostly of our purchases of property and equipment totaling approximately $2,770,000, of which $162,000 was financed. Our capital expenditures for 2025 included expenditures made for our PFAS treatment systems, which include our second-generation unit. The remaining cash used in investing activities consisted of cash outlays of approximately $103,000 made in connection with our operating permits and certain intangible assets. Total cash used in investing activities of our continuing operations was partially offset by approximately $28,000 from our sale of idle equipment. Cash used in investing activities of our discontinued operations in the first nine months of 2025 consisted of payments made in connection with a certain regulatory permit at our Perma-Fix South Georgia, Inc. (“PFSG”) subsidiary and improvements made to the existing building. Cash used in investing activities of our continuing operations in the first nine months of 2024 consisted mostly of our purchases of property and equipment totaling approximately $2,630,000, of which $406,000 was financed. Our capital expenditures for 2024 included expenditures made for the construction of our first PFAS treatment system. The remaining cash used in investing activities of $577,000 consisted of cash outlays made in connection with our operating permits and certain intangible assets. Cash used in investing activities of our discontinued operations in the first nine months of 2024 consisted of payments made for roof replacement at our PFSG location. Capital Expenditures We anticipate making capital expenditures of up to approximately $3,230,000 for the remainder of 2025 to maintain operations and regulatory compliance requirements and support revenue growth. Our remaining anticipated capital expenditures for 2025 include certain strategic project initiatives which include our second-generation unit for our PFAS technology (see “Known Trends and Uncertainties – New Processing Technology”). We plan to fund our capital expenditures for the remainder of 2025 from cash from operations, Liquidity and/or financing. The initiation and timing of our capital expenditures for the remainder of 2025 are subject to a number of factors which include, among other things, cost/benefit analysis, the pace of our strategic project initiatives, improvement in our operations and resolution of the federal government shutdown. Financing Activities Our cash used in financing during the first nine months of 2025 consisted mostly of principal payments of approximately $470,000 primarily for our Term and Capital Loans under our Credit Facility (see below for a discussion of our Credit Facility) principal payments of $228,000 for our finance leases, payments of $194,000 of offering costs from the equity raise that we completed in December 2024, partially offset by proceeds received from option exercises of approximately $79,000. As previously reported, during 2024, we had two offerings of our Common Stock which increased our cash position. As discussed below, in May 2024, we had the first offering. In December 2024, we completed the second securities offering in which we received net proceeds of approximately $23,208,000 after deducting offering fees and expenses. 34 Our cash provided in financing during the first nine months of 2024 consisted primarily of net proceeds of $18,495,000 received from the sale of our Common Stock in May 2024 and proceeds received from option and warrant exercises totaling approximately $264,000, partially offset by principal payments of approximately $675,000 for our Term and Capital Loans under our Credit Facility and principal payments of $218,000 for our finance leases. Credit Facility We entered into a Second Amended and Restated Revolving Credit, Term Loan and Security Agreement, dated May 8, 2020, which has since been amended, with PNC National Association (“PNC” and “lender”), acting as agent and lender (the “Loan Agreement”). The Loan Agreement provides us with a credit facility with a maturity date of May 15, 2027 (the “Credit Facility”) which consists of the following as of September 30, 2025: (a) up to $12,500,000 revolving credit (“Revolving Credit”), which borrowing capacity is subject to eligible receivables (as defined) and reduced by outstanding standby letters of credit ($3,350,000 as of September 30, 2025) and borrowing reductions that our lender may impose from time to time ($750,000 as of September 30, 2025); (b) a term loan (“Term Loan”) of $2,500,000, requiring monthly installments of $41,667, with a balance due under the Term Loan of approximately $1,458,000 as of September 30, 2025; and (c) a capital expenditure loan (“Capital Loan”) of approximately $524,000, requiring monthly installments of principal of approximately $8,700 plus interest. On March 11, 2025, we entered into an amendment to our Loan Agreement with our lender which provided the following, among other things: ● removed the quarterly fixed charge coverage ratio (“FCCR”) covenant testing requirement utilizing a twelve-month trailing basis; however, such FCCR testing requirement will be triggered on the day we fail to meet a minimum of $5,000,000 in daily Liquidity. If triggered, we will be required to show a compliance of a FCCR ratio of not less than 1.15 to 1.00 utilizing a trailing twelve-month-period ended starting with the most recently reported fiscal quarter and each fiscal quarter thereafter. The FCCR testing requirement can be removed again once we are able to achieve a minimum of $5,000,000 in daily Liquidity for a thirty-consecutive-day period from the trigger date; ● revised the Facility Fee (as defined) from .375% to .500%. Such fee percentage will revert back to .375% at such time that we are able to achieve a minimum 1.15 to 1.00 ratio in FCCR on a twelve-month trailing basis; and ● required payment of an amendment fee of $12,500 by the Company, which is being amortized over the remaining term of the Loan Agreement as interest expense-financing fees. Our Loan Agreement, as amended, with PNC, contains certain financial covenant requirements, along with customary representations and warranties. A breach of any of these financial covenant requirements, unless waived by PNC, could result in a default under our Loan Agreement allowing our lender to immediately require the repayment of all outstanding debt under our Loan Agreement and terminate all commitments to extend further credit. We met all of our financial covenant requirements in the first, second and third quarters of 2025. We expect to meet our covenant requirements under our Loan Agreement for the next twelve 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. As of September 30, 2025, the total amount of standby letters of credit outstanding totaled approximately $3,350,000, and the total amount of bonds outstanding totaled approximately $16,044,000. We also provide closure and post-closure requirements through a financial assurance policy for certain of our Treatment Segment facilities through AIG. As of September 30, 2025, the closure and post-closure requirements for these facilities were approximately $23,951,000. 35 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, 2024. Recent Accounting Pronouncements See “Note 2 – Summary of Significant Accounting Policies” in the “Notes to Condensed Consolidated Financial Statements” for the recent accounting pronouncement that was adopted in the first nine months of 2025 and recent accounting pronouncements that will be adopted in future periods. Collective Bargaining Agreement On September 25, 2025, our PFNWR, entered into a Collective Bargaining Agreement (the “CBA”) that became effective October 1, 2025, with the United Association of Plumbers and Steamfitters Local Union 598 (the “Union”). The CBA covers seventy-one (71) production employees (“Covered Employees”) at our PFNWR facility, and its purpose is to attempt to maintain a skilled and stabilized labor force for its waste treatment operations. The CBA generally governs, among other things, the Covered Employees’ compensation, vacation/holiday/sick pay, and working conditions. The CBA provides for annual base hourly wage increases for Covered Employees equal to one percent (1%) plus the annual percentage change in the Consumer Price Index for All Urban Consumers (CPI-U), Western Region Average. We continue to offer our healthcare benefits and 401k plan to the Covered Employees under the CBA. The term of the CBA is October 1, 2025 through October 1, 2030, and the CBA renews automatically on an annual basis thereafter, unless either PFNW or the Union gives written notice at least sixty (60) days prior to October 1, 2030 of its intent to modify or terminate the CBA. Known Trends and Uncertainties Significant Customers . The contracts that we are a party to with others as subcontractors to the federal government or directly with the federal government generally provide that the government may terminate the contract at any time for convenience at the government’s option. Our inability to continue under existing contracts that we have with the federal government authorities (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 federal government clients, either directly as a prime contractor or indirectly for others as a subcontractor to federal government entities, representing approximately $11,666,000 or 66.8% and $29,275,000 or 63.7% of our total revenues generated during the three and nine months ended September 30, 2025, respectively, as compared to $11,749,000 or 69.9% and $31,748,000 or 71.5% of our total revenues generated during the three and nine months ended September 30, 2024, respectively. Federal Funding. As previously disclosed, a significant portion of our revenue is generated through contracts entered into indirectly as subcontractors for prime contractors or directly as a prime contractor to federal government. Government funding levels in general have uncertainties associated with planned federal projects and procurements. On October 1, 2025, the U.S. federal government entered into a partial shutdown as Congress failed to pass a new fiscal year funding bill. As a result of the government shutdown, we have been recently informed by certain government related clients that waste shipments are likely to be delayed until the government shutdown is resolved. Although the impact of the government shutdown has been limited at this time, a prolonged shutdown may create uncertainty and disruption for us from additional delayed and/or cancelled waste shipments, suspension and/or slowdown of active projects, and/or delayed/cancelled procurement requests. Additionally, the recent government shutdown has resulted in furloughed and terminated employees which may result in contract award delays, delayed payments for services already rendered and restricted communication with agency counterparts who may not be working. These aforementioned impacts could negatively impact our result of operations and liquidity, the extent of which is unknown at this time. However, we believe that negative impact to our results of operations and liquidity from a prolonged government shutdown may be lessened by our Treatment Segment backlog, along with increased receipts from international and commercial clients. 36 Market Trends and Uncertainties. Macroeconomic conditions which include recent government and policy changes implemented in the United States, government budget issues, tariff actions and uncertainties related to trade wars, ambiguity around interest rates, softening labor markets, have created significant uncertainty in the global economy, volatility in the capital markets and recessionary pressures. We continue to monitor potential effects from these conditions that could impact our revenue and profitability which include supply chain challenges, cost volatility in goods that we utilize in our revenue production, and economic pressures on our customers that may result in reduced and/or delayed spending. We continue to monitor, evaluate and implement a range of strategic options which we believe will assist us to manage potential impacts from these factors, including supply chain optimization, pricing strategies, sourcing adjustments and cost reduction measures in order to minimize impacts to our financial results. New Processing Technology. We have completed the fabrication, installation, commissioning and startup of our first full scale commercial Perma-FAS system (“System”) for PFAS destruction, located at our Perma-Fix Florida, Inc. facility. PFAS, commonly known as “forever chemicals,” is the acronym for Perfluoroalkyl and Polyfluoroalkyl Substances, a diverse group of thousands of human-made chemical pollutants that have the potential to persist in both the environment and the human body. An increasing number of studies have documented adverse health risks that are associated with PFAS exposure, including increased risks of some cancers, reduced immune function, and developmental delays in children. Commercial destruction of PFAS offers a promising new source of revenue for us, as it complements our core waste remediation technologies, and we have filed patent applications relating to our System technology for PFAS destruction. We have already processed commercial quantities of PFAS-containing waste materials with our pilot System. We believe there are limited current treatment options for these materials, and we expect that our process will exceed the performance of other methods. Some of the sizable markets for PFAS include AFFF firefighting foams, both expired concentrate and flushing liquids, contaminated liquids from PFAS systems, and other water-based separation products from a variety of industrial systems. We have already secured and treated approximately 15,000 gallons of AFFF liquids through the prototype reactor and have approximately 20,000 gallons in backlog. We believe that we will receive an additional 50,000 gallons in the coming months. Our strategy for our System includes continued treatment of PFAS liquids over the coming months and targeting engineering refinements to support larger-scale Systems. With significant upgrades to our prototype currently being completed, we anticipate deployment of the second-generation unit in the first quarter of 2026 at one of our other existing treatment facilities. We believe our second-generation system will allow us to triple our production capacity. In the next several calendar quarters, we expect to advance the Perma-FAS technology from demonstrated successful bench-scale testing to pilot-scale applications for soil, biosolids, and filter media, broadening the reach of our System’s PFAS destruction capabilities. 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 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. 37 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. As of September 30, 2025, we had total accrued environmental remediation liabilities of $764,000, a decrease of $3,000 from the December 31, 2024 balance of $767,000. The decrease represents payments for our PFSG remediation project. As of September 30, 2025, $630,000 of the total accrued environmental remediation liabilities was recorded as current. Item 3. Quantitative and Qualitative Disclosures about Market Risks Not required for smaller reporting companies. Item 4. Controls and Procedures (a) Evaluation of disclosure controls and procedures. We 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 conducted 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 September 30, 2025. (b) Changes in 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. PART II – OTHER INFORMATION 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, 2024. Additionally, there has been no other material change in legal proceedings previously disclosed by us in our Form 10-Q for the quarter ended March 31, 2025. Item 1A. Risk Factors There is no other material change from the risk factors previously disclosed in our Form 10-K for the year ended December 31, 2024, and our Form 10-Q for the quarter ended June 30, 2025, except as follows. The following additional Risk Factor under “Risks Relating to our Business Operations” is as follows: A prolonged federal government shutdown may materially impact our results of operations. On October 1, 2025, the U.S. federal government entered into a partial shutdown as Congress failed to pass a new fiscal year funding bill. As a result of the government shutdown, we have been recently informed by certain government related clients that waste shipments are likely to be delayed until the government shutdown is resolved. Although the impact of the government shutdown has been limited at this time, a prolonged shutdown may create uncertainty and disruption for us from additional delayed and/or cancelled waste shipments, suspension and/or slowdown of active projects, and/or delayed/cancelled procurement requests. Additionally, the recent government shutdown has resulted in furloughed and terminated employees which may result in contract award delays, delayed payments for services already rendered and restricted communication with agency counterparts who may not be working. These aforementioned impacts could negatively impact our result of operations and liquidity, the extent of which is unknown at this time. However, we believe that negative impact to our results of operations and liquidity from a prolonged government shutdown may be lessened by our Treatment Segment backlog, along with increased receipts from international and commercial clients. 38 Item 6. Exhibits (a) Exhibits 10.1 Collective Bargaining Agreement between Perma-Fix Northwest Richland, Inc. and United Association of Plumbers and Steamfitters Local Union 598, Effective October 1, 2025. CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN EXCLUDED BECAUSE IT IS NOT MATERIAL AND COULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IS PUBLICLY DISCLOSED. 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-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. 39 SIGNATURES Pursuant to the requirements of the Securities 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: November 10, 2025 By: /s/ Mark Duff Mark Duff President and Chief (Principal) Executive Officer Date: November 10, 2025 By: /s/ Ben Naccarato Ben Naccarato Chief (Principal) Financial Officer 40