ATLANTA, Sept. 25, 2025 (GLOBE NEWSWIRE) -- Perma-Fix Environmental Services, Inc. (NASDAQ: PESI) (the “Company” or “Perma-Fix”) today announced that its founder and Executive Vice President of Strategic Initiatives, Dr. Louis Centofanti, has been awarded the Industry Innovation Award at the recent 2025 EI Digest Gathering in San Diego, California. The EI Digest Gathering is a premier executive-level conference focused on the commercial management of hazardous and universal wastes across North America. Dr. ...

Core Viewpoint - The investment thesis for PermaFix (NASDAQ: PESI) is based on the expectation that their core business will stabilize post-Covid, with potential significant upside from contracts related to the Hanford Nuclear Site [1] Company Analysis - PermaFix's core business is anticipated to recover and stabilize following the impacts of the Covid pandemic [1] - The company is positioned to benefit from potential contracts associated with the Hanford Nuclear Site, which could provide substantial growth opportunities [1] Investment Strategy - The analysis focuses on identifying opportunities where the market has not yet recognized or valued a company's fundamental business and upcoming catalysts [1] - The approach involves fundamental analysis to find discrepancies between a company's perceived value and its current share price [1]

Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 58-1954497 (IRS Employer Identification Number) 8302 Dunwoody Place, Suite 250, Atlanta, GA 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 ...

Financial Data and Key Metrics Changes - The total revenue from continuing operations for Q2 2025 was $14.6 million, an increase of $600,000 or 4.3% compared to Q2 2024 [13] - Revenue in the Treatment Segment increased by $3.1 million or 36.6% year-over-year, driven by increased waste volumes and average prices [13] - Gross profit improved to $1.5 million from a loss of $1.3 million in the previous year, reflecting a positive impact from revenue increases and lower variable costs [14] - The net loss for the quarter was $2.7 million, an improvement from a net loss of $4.0 million in the prior year [17] - EBITDA from continuing operations was a negative $2.3 million, compared to negative EBITDA of $4.6 million last year [17] Business Line Data and Key Metrics Changes - The Treatment Segment saw a revenue increase of approximately 37% year-over-year, with waste receipts more than doubling to approximately $14 million [6][13] - The Services Segment experienced a revenue decrease of $2.5 million due to project delays and completion of large projects in the prior year [14] - The waste backlog at the end of June was approximately $13.2 million, up from $7.9 million at the end of the previous year [18] Market Data and Key Metrics Changes - Internationally, the company received over $7 million in waste receipts over the past two quarters, with strong interest from customers in Canada, Germany, Mexico, and Italy [10] - The company has a EUR50 million contract with the European Union in Italy, progressing through the permitting phase, with treatment operations expected to start in 2026 [10] Company Strategy and Development Direction - The company is focused on expanding treatment and PFAS backlogs, driving performance improvements, and converting large services and federal bid opportunities [48] - The operational investments made earlier in the year, combined with progress in the PFAS program and DOE segments, position the company for strong results in the coming quarters [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver stronger financial performance in the second half of the year, supported by progress achieved [49] - The company remains optimistic about the long-term outlook for the DF Law facility, which is expected to provide substantial recurring revenue once operational [7][12] Other Important Information - The Department of Energy announced a delay in the DF Law facility startup from August 1 to as late as October 15, but management remains confident in the timeline [7][24] - The company is pursuing several large-scale federal and commercial procurement opportunities, representing over $200 million in potential contract value [11] Q&A Session Summary Question: Challenges and improvements in the treatment segment - Management discussed technical challenges that limited production capacity early in the quarter but noted that these issues have been resolved through automation and process improvements [20] Question: Timeline for DF Law facility startup - Management indicated confidence that the facility would enter operational phase before the end of the calendar year, following a hot commissioning period [24] Question: Expectations for the services segment and West Valley project - Management acknowledged delays in the services segment due to federal procurement timing but expects improvement in the upcoming quarters [30] Question: Revenue expectations from DF Law ramp-up - Management estimated potential revenue of $2 million to $3 million per month once operations begin, with a ramp-up to 70-80% capacity over the next 18 months [38] Question: Details on the Navy contract - Management provided insights into the $240 million RadMAC III IDIQ contract, emphasizing the competitive nature of task orders and the company's core competencies in radiological remediation [43]

Core Insights - The company reported sequential and year-over-year revenue growth for Q2 2025, with Treatment Segment revenue increasing by approximately 37% compared to the same period last year [2][6] - Waste receipts more than doubled in Q2 2025, reaching approximately 14 million, which is expected to contribute to a strong backlog for the remainder of 2025 [3] - The company is optimistic about its long-term growth strategy, particularly in scaling its PFAS destruction platform and has begun construction of a next-generation system [5][6] Financial Performance - Revenue for Q2 2025 was approximately $14.6 million, up from approximately $14.0 million in Q2 2024, driven entirely by the Treatment Segment, which saw revenue rise to $11.4 million from $8.4 million [6][19] - The Services Segment revenue decreased to $3.2 million from $5.6 million, attributed to project delays and procurement issues [6][19] - Gross profit for Q2 2025 was $1.5 million, compared to a gross loss of $1.3 million in Q2 2024, with gross margin improving to 13.7% from (14.3%) in the Treatment Segment [7][19] Operational Highlights - The company faced technical challenges that limited production early in Q2 2025 but believes these issues have been resolved through automation and process enhancements [2] - The Services Segment is seeing renewed momentum, highlighted by being awarded a position on the Navy's RADMAC III IDIQ contract, which aligns with the company's core competencies [4] - The company continues to focus on cost discipline and margin improvement, positioning itself for better results in the second half of 2025 [6]

Core Viewpoint - Perma-Fix Environmental Services, Inc. will host a conference call on August 7, 2025, to discuss company updates and performance [1]. Company Information - Perma-Fix Environmental Services, Inc. is a nuclear services company specializing in nuclear and mixed waste management services, catering to hospitals, research labs, federal agencies, and the commercial nuclear industry [4]. - The company provides a range of services including project management, waste management, environmental restoration, decontamination and decommissioning, and radiological protection [4]. - Perma-Fix operates four nuclear waste treatment facilities and offers services at various Department of Energy (DOE), Department of Defense (DOD), and commercial facilities across the United States [4]. Conference Call Details - The conference call will be led by key executives including the CEO, Executive Vice President of Strategic Initiatives, and Chief Financial Officer [2]. - A webcast of the call will be available on the company's website, and a telephone replay will be accessible for a limited time after the call [3].

Core Viewpoint - Perma-Fix Environmental Services, Inc. is expanding its PFAS treatment technology to address a wider range of contaminated waste streams, marking a significant advancement in its mission for sustainable PFAS remediation [1][2]. Company Developments - The company has successfully adapted its PFAS destruction technology to treat leachate and wastewater concentrate, with the first commercial batch received in June and treatment set to begin imminently [2]. - The technology is designed for flexibility, allowing potential future deployment at customer sites while currently focusing on centralized treatment at the company's facilities [2]. Market Context - The market for water separation technologies is rapidly growing as organizations seek to concentrate PFAS from contaminated water, with Perma-Fix collaborating with leading providers to enhance its destruction technology [3]. - The PFAS remediation market is expected to grow significantly due to increasing regulatory scrutiny, with estimates suggesting the addressable market in the U.S. could reach several billion dollars annually [5]. Competitive Advantage - Perma-Fix's system is competitively priced compared to alternative destruction methods, providing cost savings and reducing long-term liability exposure for clients [4]. - The company's comprehensive destruction of PFAS compounds supports compliance with evolving regulatory expectations, a benefit recognized by clients and partners [4][6]. Strategic Partnerships - The company is working closely with providers of water separation technologies, including foam fractionation, reverse osmosis, and resin systems, to offer a comprehensive solution for PFAS concentrate destruction [6]. Company Overview - Perma-Fix Environmental Services, Inc. is a leading provider of nuclear and mixed waste management services, operating four nuclear waste treatment facilities and serving various federal agencies and the commercial nuclear industry [7].

Company Overview - Perma-Fix Environmental Services, Inc (NASDAQ: PESI) is a nuclear service and waste management company based in Atlanta, Georgia, specializing in the treatment, processing, and disposal of nuclear and low-level radioactive waste [1] Business Segments - The company operates in two main segments: Treatment and Services, catering to a diverse customer base [1]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) Presents the unaudited condensed consolidated financial statements and management's discussion for the quarter ended March 31, 2025 [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) Presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, cash flows, and comprehensive notes for Q1 2025 and 2024 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20-%20March%2031%2C%202025%2C%20and%20December%2031%2C%202024) Details the company's financial position, assets, liabilities, and equity as of March 31, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (Amounts in Thousands) | ASSETS | March 31, 2025 (Unaudited) | December 31, 2024 | | :----------------------------------- | :-------------------------- | :------------------ | | Cash | $25,745 | $28,975 | | Accounts receivable, net | $9,311 | $11,579 | | Total current assets | $45,424 | $50,223 | | Net property and equipment | $21,395 | $21,133 | | Total assets | $92,853 | $97,248 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Total current liabilities | $20,792 | $21,940 | | Total long-term liabilities | $12,873 | $12,918 | | Total liabilities | $33,665 | $34,858 | | Total stockholders' equity | $59,188 | $62,390 | | Total liabilities and stockholders' equity | $92,853 | $97,248 | - Total assets decreased by **$4,395 thousand** from **$97,248 thousand** at December 31, 2024, to **$92,853 thousand** at March 31, 2025, primarily driven by a decrease in cash and accounts receivable[8](index=8&type=chunk) - Total liabilities decreased by **$1,193 thousand** from **$34,858 thousand** at December 31, 2024, to **$33,665 thousand** at March 31, 2025, mainly due to decreases in current liabilities like deferred revenue and disposal/transportation accrual[10](index=10&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20-%20Three%20Months%20Ended%20March%2031%2C%202025%2C%20and%202024) Reports the company's revenues, costs, and net loss for the three months ended March 31, 2025, and 2024 Condensed Consolidated Statements of Operations (Amounts in Thousands, Except for Per Share Amounts) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Revenues | $13,919 | $13,617 | | Cost of goods sold | $13,262 | $14,237 | | Gross profit (loss) | $657 | $(620) | | Selling, general and administrative expenses | $4,015 | $3,544 | | Loss from operations | $(3,736) | $(4,460) | | Net loss | $(3,573) | $(3,560) | | Net loss per common share | $(0.19) | $(0.26) | - Revenues increased by **$302 thousand (2.2%)** year-over-year, while gross profit significantly improved from a loss of **$620 thousand** in Q1 2024 to a profit of **$657 thousand** in Q1 2025[13](index=13&type=chunk) - Net loss per common share improved from **$(0.26)** in Q1 2024 to **$(0.19)** in Q1 2025, despite an increase in selling, general and administrative expenses[13](index=13&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss%20-%20Three%20Months%20Ended%20March%2031%2C%202025%2C%20and%202024) Presents the net loss and other comprehensive income/loss components for the three months ended March 31, 2025, and 2024 Condensed Consolidated Statements of Comprehensive Loss (Amounts in Thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Net loss | $(3,573) | $(3,560) | | Foreign currency translation gain (loss) | $17 | $(56) | | Total other comprehensive income (loss) | $17 | $(56) | | Comprehensive loss | $(3,556) | $(3,616) | - Comprehensive loss improved to **$(3,556) thousand** in Q1 2025 from **$(3,616) thousand** in Q1 2024, primarily due to a foreign currency translation gain of **$17 thousand** in 2025 compared to a loss of **$56 thousand** in 2024[15](index=15&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity%20-%20Three%20Months%20Ended%20March%2031%2C%202025%2C%20and%202024) Details changes in stockholders' equity, including net loss and stock transactions, for the three months ended March 31, 2025, and 2024 Condensed Consolidated Statements of Stockholders' Equity (Amounts in Thousands, Except for Share Amounts) | Metric | Balance at Dec 31, 2024 | Net Loss | Foreign Currency Translation | Issuance of Common Stock for Services | Issuance of Common Stock upon Exercise of Options | Stock-Based Compensation | Balance at Mar 31, 2025 | | :----------------------------------- | :---------------------- | :------- | :--------------------------- | :------------------------------------ | :--------------------------------------------- | :----------------------- | :---------------------- | | Common Stock (Shares) | 18,384,879 | — | — | 10,565 | 40,591 | — | 18,436,035 | | Common Stock (Amount) | $18 | — | — | — | — | — | $18 | | Additional Paid-In Capital | $159,590 | — | — | $117 | $41 | $196 | $159,944 | | Accumulated Deficit | $(96,930) | $(3,573) | — | — | — | — | $(100,503) | | Accumulated Other Comprehensive Loss | $(200) | — | $17 | — | — | — | $(183) | | Total Stockholders' Equity | $62,390 | $(3,573) | $17 | $117 | $41 | $196 | $59,188 | - Total stockholders' equity decreased from **$62,390 thousand** at December 31, 2024, to **$59,188 thousand** at March 31, 2025, primarily due to a net loss of **$3,573 thousand**[17](index=17&type=chunk) - The company issued **10,565 shares** of common stock for services and **40,591 shares** upon exercise of options, contributing to additional paid-in capital[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20-%20Three%20Months%20Ended%20March%2031%2C%202025%2C%20and%202024) Summarizes cash inflows and outflows from operating, investing, and financing activities for the three months ended March 31, 2025, and 2024 Condensed Consolidated Statements of Cash Flows (Amounts in Thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Cash used in operating activities | $(2,104) | $(4,517) | | Cash used in investing activities | $(586) | $(318) | | Cash used in financing activities | $(396) | $(125) | | Decrease in cash and finite risk sinking fund | $(3,086) | $(4,978) | | Cash and finite risk sinking fund at end of period | $38,569 | $14,596 | - Cash used in operating activities significantly decreased from **$(4,517) thousand** in Q1 2024 to **$(2,104) thousand** in Q1 2025, indicating improved operational cash management[20](index=20&type=chunk) - Cash used in investing activities increased to **$(586) thousand** in Q1 2025 from **$(318) thousand** in Q1 2024, primarily due to increased purchases of property and equipment[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the condensed consolidated financial statements [1. Basis of Presentation](index=10&type=section&id=1.%20Basis%20of%20Presentation) Outlines the preparation and presentation principles for the unaudited condensed consolidated financial statements - The condensed consolidated financial statements are unaudited and prepared in accordance with SEC rules, reflecting all necessary recurring adjustments[23](index=23&type=chunk) - Results for Q1 2025 are not necessarily indicative of the full fiscal year 2025[23](index=23&type=chunk) [2. Summary of Significant Accounting Policies](index=10&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) Describes the key accounting policies and recent accounting pronouncements adopted or under evaluation by the company - The company adopted ASU 2023-05 on January 1, 2025, regarding joint venture formations, which had no impact on its financial statements[26](index=26&type=chunk) - The company is evaluating the impact of ASU 2024-03 (effective after December 15, 2026) and ASU 2023-09 (effective after December 31, 2025) on future disclosures related to expense disaggregation and income tax disclosures, respectively[27](index=27&type=chunk)[29](index=29&type=chunk) [3. Revenue](index=11&type=section&id=3.%20Revenue) Details revenue disaggregation by contract type and generator, along with contract balances for the reporting periods Revenue by Contract Type (In thousands) | Contract Type | March 31, 2025 (Total) | March 31, 2024 (Total) | | :-------------- | :----------------------- | :----------------------- | | Fixed price | $12,116 | $13,023 | | Time and materials | $1,803 | $594 | | Total | $13,919 | $13,617 | Revenue by Generator (In thousands) | Generator | March 31, 2025 (Total) | March 31, 2024 (Total) | | :---------------- | :----------------------- | :----------------------- | | Domestic government | $9,784 | $10,064 | | Domestic commercial | $1,578 | $3,005 | | Foreign government | $2,261 | $79 | | Foreign commercial | $296 | $469 | | Total | $13,919 | $13,617 | - Foreign government revenue saw a significant increase from **$79 thousand** in Q1 2024 to **$2,261 thousand** in Q1 2025[31](index=31&type=chunk) Contract Balances (In thousands) | Metric | March 31, 2025 | December 31, 2024 | Change ($) | Change (%) | | :------------------------ | :------------- | :---------------- | :--------- | :--------- | | Unbilled receivables - current | $5,168 | $4,990 | $178 | 3.6% | | Deferred revenue | $5,881 | $6,711 | $(830) | -12.4% | [4. Leases](index=12&type=section&id=4.%20Leases) Presents information on total lease costs, weighted average lease terms, and discount rates for operating and finance leases Total Lease Cost (In thousands) | Lease Type | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------- | :-------------------------------- | :-------------------------------- | | Operating Lease Cost | $121 | $143 | | Finance Leases Cost | $86 | $87 | | Short-term lease rent expense | $2 | $0 | | Total lease cost | $209 | $230 | Weighted Average Lease Terms and Discount Rates (March 31, 2025) | Lease Type | Weighted Average Remaining Lease Terms (years) | Weighted Average Discount Rate | | :----------- | :--------------------------------------------- | :----------------------------- | | Operating Leases | 4.5 | 7.7% | | Finance Leases | 3.7 | 9.4% | [5. Intangible Assets](index=14&type=section&id=5.%20Intangible%20Assets) Provides details on definite-lived intangible assets, including patents and software, and related amortization expenses Definite-Lived Intangible Assets (In thousands) | Asset Type | March 31, 2025 (Net Carrying Amount) | December 31, 2024 (Net Carrying Amount) | | :----------- | :----------------------------------- | :-------------------------------------- | | Patents | $320 | $318 | | Software | $66 | $75 | | Total | $386 | $393 | - Amortization expenses for definite-lived intangible assets decreased from **$25 thousand** in Q1 2024 to **$15 thousand** in Q1 2025[43](index=43&type=chunk) [6. Capital Stock, Stock Plans, Warrants and Stock Based Compensation](index=14&type=section&id=6.%20Capital%20Stock%2C%20Stock%20Plans%2C%20Warrants%20and%20Stock%20Based%20Compensation) Outlines stock-based compensation, unrecognized costs, and details of stock option grants for employees and directors Stock-Based Compensation Recognized (In thousands) | Stock Options | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------- | :-------------------------------- | :-------------------------------- | | Employee Stock Options | $107 | $91 | | Director Stock Options | $89 | $61 | | Total | $196 | $152 | - Total unrecognized compensation costs related to unvested options for employees and directors were approximately **$2,004 thousand** as of March 31, 2025, expected to be recognized over approximately **3.1 years**[47](index=47&type=chunk) - The company granted **50,000 stock options** in Q1 2025 with an exercise price of **$10.70 per share**, vesting at **20% per year** over five years[45](index=45&type=chunk)[48](index=48&type=chunk) [7. Loss Per Share](index=16&type=section&id=7.%20Loss%20Per%20Share) Reports basic and diluted net loss per common share, including weighted average shares outstanding Net Loss Per Common Share | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Loss from continuing operations, net of taxes | $(3,500) | $(3,458) | | Basic and diluted loss per share (Continuing operations) | $(0.19) | $(0.25) | | Net loss | $(3,573) | $(3,560) | | Basic and diluted net loss per share | $(0.19) | $(0.26) | | Weighted average shares outstanding (Basic/Diluted) | 18,424 | 13,676 | - Dilutive effects of stock options and warrants were excluded from diluted loss per share calculations for both periods as they were anti-dilutive[52](index=52&type=chunk)[53](index=53&type=chunk) [8. Long Term Debt](index=17&type=section&id=8.%20Long%20Term%20Debt) Details the company's long-term debt, including term loans, capital loans, and notes payable, along with credit facility information Long-Term Debt (Amounts in Thousands) | Debt Type | March 31, 2025 | December 31, 2024 | | :----------------------------------- | :------------- | :---------------- | | Term Loan | $1,708 | $1,834 | | Capital Loan | $227 | $253 | | Notes Payable | $401 | $406 | | Debt Issuance Costs | $(174) | $(178) | | Total debt | $2,162 | $2,315 | | Less current portion of long-term debt | $541 | $550 | | Long-term debt | $1,621 | $1,765 | - The company's Credit Facility, maturing May 15, 2027, includes a **$12.5 million** revolving credit, a **$2.5 million** Term Loan, and a **$524 thousand** Capital Loan[57](index=57&type=chunk) - As of March 31, 2025, the company had no outstanding borrowing under its revolving credit and its Liquidity was approximately **$29,277 thousand**[61](index=61&type=chunk) [9. Commitments and Contingencies](index=18&type=section&id=9.%20Commitments%20and%20Contingencies) Discusses potential liabilities from hazardous waste management, legal proceedings, and financial commitments like letters of credit and bonds - The company is involved in hazardous waste management and could be a potentially responsible party for cleanup costs at disposal sites[63](index=63&type=chunk) - The Tetra Tech EC, Inc. lawsuit, alleging negligence and other claims, has been resolved with the company formally released from all claims[65](index=65&type=chunk)[69](index=69&type=chunk) - A shareholder complaint by Michael O'Neill, alleging breach of contract and fiduciary duty regarding a proxy statement, is being vigorously defended by the company[70](index=70&type=chunk)[72](index=72&type=chunk) - The Board rejected a shareholder demand to remove a bylaw provision requiring indemnification for attorneys' fees, deeming it meritless[73](index=73&type=chunk)[74](index=74&type=chunk) - As of March 31, 2025, standby letters of credit totaled approximately **$3,200 thousand** and bonds outstanding totaled approximately **$21,481 thousand**[76](index=76&type=chunk) [10. Discontinued Operations](index=20&type=section&id=10.%20Discontinued%20Operations) Provides financial information for discontinued operations, including net losses and assets/liabilities - Discontinued operations, comprising divested subsidiaries and closed locations from the previous Industrial Segment, incurred net losses of **$73 thousand** in Q1 2025 (vs. **$102 thousand** in Q1 2024) primarily due to administration and monitoring costs[77](index=77&type=chunk)[78](index=78&type=chunk) Assets and Liabilities of Discontinued Operations (Amounts in Thousands) | Category | March 31, 2025 | December 31, 2024 | | :----------------------- | :------------- | :---------------- | | Total current assets | $36 | $20 | | Total long-term assets | $130 | $130 | | Total assets | $166 | $150 | | Total current liabilities | $258 | $244 | | Total long-term liabilities | $948 | $945 | | Total liabilities | $1,206 | $1,189 | [11. Segment Reporting](index=21&type=section&id=11.%20Segment%20Reporting) Presents financial performance by operating segment: Treatment and Services, including revenue, cost of goods sold, and gross profit - The company operates in two reporting segments: Treatment (nuclear, low-level radioactive, mixed, hazardous, and non-hazardous waste treatment, processing, and disposal services, plus R&D) and Services (technical services including radiological measurement, occupational safety and health, consulting, engineering, project management, waste management, D&D, and equipment calibration)[83](index=83&type=chunk)[88](index=88&type=chunk) Segment Reporting for the Quarter Ended March 31, 2025 (Amounts in Thousands) | Metric | Treatment | Services | Total Segments | Corporate | Consolidated Total | | :----------------------------------- | :-------- | :------- | :------------- | :-------- | :----------------- | | Revenue from external customers | $9,186 | $4,733 | $13,919 | $0 | $13,919 | | Total cost of goods sold | $8,936 | $4,326 | $13,262 | $0 | $13,262 | | Gross profit | $250 | $407 | $657 | $0 | $657 | | Total SG&A | $1,356 | $736 | $2,092 | $1,923 | $4,015 | | Research and development | $291 | $23 | $314 | $69 | $383 | | Loss from operations | $(1,397) | $(347) | $(1,744) | $(1,992) | $(3,736) | - The Treatment Segment generated a gross profit of **$250 thousand** in Q1 2025, a significant improvement from a gross loss of **$(52) thousand** in Q1 2024[87](index=87&type=chunk)[89](index=89&type=chunk) - The Services Segment also improved its gross profit to **$407 thousand** in Q1 2025 from a gross loss of **$(568) thousand** in Q1 2024[87](index=87&type=chunk)[89](index=89&type=chunk) [12. Income Taxes](index=24&type=section&id=12.%20Income%20Taxes) Reports income tax expense and the effective tax rate for continuing operations, noting the impact of valuation allowances - The company reported **$0** income tax expense for continuing operations in Q1 2025, compared to an income tax benefit of **$956 thousand** in Q1 2024[93](index=93&type=chunk) - The effective tax rate was **0%** in Q1 2025 due to the recognition of a full valuation allowance against U.S. federal and state deferred tax assets in Q3 2024[93](index=93&type=chunk) [13. Executive Compensation](index=24&type=section&id=13.%20Executive%20Compensation) Details executive appointments, annual salaries, and the structure of the 2025 Management Incentive Plans - Mr. Troy Eshleman was appointed COO on January 23, 2025, with an annual salary of **$320,000**[94](index=94&type=chunk) - Mr. Richard Grondin was appointed EVP of Hanford and International Waste Operations with an annual salary of **$315,267**[95](index=95&type=chunk) - Management Incentive Plans (MIPs) for 2025 were approved, with potential target performance compensation ranging from **25% to 150%** of base salary for the CEO and **25% to 100%** for other executive officers[96](index=96&type=chunk) [14. Subsequent Events](index=24&type=section&id=14.%20Subsequent%20Events) Confirms the evaluation of events occurring after the balance sheet date, with no material adjustments or disclosures identified - The company evaluated subsequent events through May 8, 2025, and identified no events requiring adjustment or disclosure in the consolidated financial statements[97](index=97&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's analysis of financial condition and operational results for Q1 2025, discussing performance drivers, liquidity, and future outlook [Forward-looking Statements](index=25&type=section&id=Forward-looking%20Statements) Highlights statements regarding future performance, demand, funding, and potential risks, including government funding and contract uncertainties - The report contains forward-looking statements regarding future performance, demand for services, government funding, waste receipts, investments, growth, and the West Valley Development Project[100](index=100&type=chunk)[101](index=101&type=chunk) - Key risks include reductions in government funding, inability to obtain new contracts, changes in federal spending priorities, and uncertainties related to the new presidential administration[101](index=101&type=chunk) [Overview](index=26&type=section&id=Overview) Summarizes Q1 2025 financial performance, key impacts, waste backlog growth, and future project expectations - Q1 2025 financial results were impacted by seasonal slowdowns, project and waste shipment delays, operational readiness costs for a specific waste stream, and increased investment in PFAS technology[103](index=103&type=chunk)[110](index=110&type=chunk) - Waste backlog increased by approximately **$2,378 thousand (30.3%)** to **$10,237 thousand** as of March 31, 2025, from **$7,859 thousand** at December 31, 2024[105](index=105&type=chunk) - The company expects revenue contribution from the West Valley Project in the second half of 2025 and anticipates the DFLAW program at Hanford to begin operations in Q3 2025[106](index=106&type=chunk) Key Financial Highlights (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 (Thousands) | Q1 2024 (Thousands) | Change ($) | Change (%) | | :------------------- | :------------------ | :------------------ | :--------- | :--------- | | Revenues | $13,919 | $13,617 | $302 | 2.2% | | Treatment Segment Revenue | $9,186 | $8,709 | $477 | 5.5% | | Services Segment Revenue | $4,733 | $4,908 | $(175) | -3.6% | | Overall Gross Profit | $657 | $(620) | $1,277 | 206.0% | | SG&A Expenses | $4,015 | $3,544 | $471 | 13.3% | [Business Environment](index=27&type=section&id=Business%20Environment) Describes the company's reliance on federal government clients and the associated risks of funding fluctuations and contract terminations - The company's business heavily relies on services provided to federal governmental clients, subject to fluctuations from economic/political conditions and government funding levels[109](index=109&type=chunk) - Government contracts are generally subject to termination for convenience, posing a risk to financial performance[109](index=109&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Analyzes the company's financial performance, including detailed breakdowns of revenues, costs, and profits by segment [Revenues](index=28&type=section&id=Revenues) Provides a detailed breakdown of revenue by segment and category, highlighting changes year-over-year Revenue Breakdown (Q1 2025 vs. Q1 2024) | Category | 2025 (Thousands) | % Revenue 2025 | 2024 (Thousands) | % Revenue 2024 | Change ($) | % Change | | :------------------- | :--------------- | :------------- | :--------------- | :------------- | :--------- | :--------- | | Treatment - Government waste | $7,017 | 50.4 | $5,133 | 37.7 | $1,884 | 36.7 | | Treatment - Hazardous/non-hazardous | $1,067 | 7.7 | $1,337 | 9.8 | $(270) | -20.2 | | Treatment - Other nuclear waste | $1,102 | 7.9 | $2,239 | 16.5 | $(1,137) | -50.8 | | Total Treatment | $9,186 | 66.0 | $8,709 | 64.0 | $477 | 5.5 | | Services - Nuclear services | $3,375 | 24.2 | $4,569 | 33.5 | $(1,194) | -26.1 | | Services - Technical services | $1,358 | 9.8 | $339 | 2.5 | $1,019 | 300.6 | | Total Services | $4,733 | 34.0 | $4,908 | 36.0 | $(175) | -3.6 | | Total Consolidated | $13,919 | 100.0 | $13,617 | 100.0 | $302 | 2.2 | - Treatment Segment revenue increased by **5.5%** due to higher government waste volume, partially offset by lower average prices and decreased other nuclear waste volume[114](index=114&type=chunk) - Services Segment revenue decreased by **3.6%** due to a lack of projects and delays in procurement actions, particularly in nuclear services, despite a significant increase in technical services[114](index=114&type=chunk) [Cost of Goods Sold](index=29&type=section&id=Cost%20of%20Goods%20Sold) Analyzes changes in cost of goods sold by segment, explaining the drivers behind the year-over-year variations Cost of Goods Sold (Q1 2025 vs. Q1 2024) | Segment | 2025 (Thousands) | % Revenue 2025 | 2024 (Thousands) | % Revenue 2024 | Change ($) | | :-------- | :--------------- | :------------- | :--------------- | :------------- | :--------- | | Treatment | $8,936 | 97.3 | $8,761 | 100.6 | $175 | | Services | $4,326 | 91.4 | $5,476 | 111.6 | $(1,150) | | Total | $13,262 | 95.3 | $14,237 | 104.6 | $(975) | - Total cost of goods sold decreased by **$975 thousand (6.8%)** year-over-year, primarily driven by a **$1,150 thousand** decrease in the Services Segment due to cost-cutting initiatives[115](index=115&type=chunk) - Treatment Segment's cost of goods sold increased by **$175 thousand**, mainly due to higher fixed costs from increased headcount and utility costs, partially offset by lower variable disposal costs[115](index=115&type=chunk) [Gross profit (loss)](index=29&type=section&id=Gross%20profit%20%28loss%29) Examines the gross profit and loss performance by segment, highlighting significant improvements from the prior year Gross Profit (Loss) (Q1 2025 vs. Q1 2024) | Segment | 2025 (Thousands) | % Revenue 2025 | 2024 (Thousands) | % Revenue 2024 | Change ($) | | :-------- | :--------------- | :------------- | :--------------- | :------------- | :--------- | | Treatment | $250 | 2.7 | $(52) | -0.6 | $302 | | Services | $407 | 8.6 | $(568) | -11.6 | $975 | | Total | $657 | 4.7 | $(620) | -4.6 | $1,277 | - Overall gross profit increased by **$1,277 thousand (206.0%)**, moving from a consolidated gross loss of **$(620) thousand** in Q1 2024 to a gross profit of **$657 thousand** in Q1 2025[116](index=116&type=chunk) - Both Treatment and Services segments showed significant improvements in gross profit and gross margin, with Services benefiting from cost-cutting initiatives[116](index=116&type=chunk) [SG&A](index=30&type=section&id=SG%26A) Details the changes in selling, general, and administrative expenses, attributing increases to payroll, compensation, and marketing efforts SG&A Expenses (Q1 2025 vs. Q1 2024) | Category | 2025 (Thousands) | % Revenue 2025 | 2024 (Thousands) | % Revenue 2024 | Change ($) | | :----------- | :--------------- | :------------- | :--------------- | :------------- | :--------- | | Administrative | $1,923 | — | $1,687 | — | $236 | | Treatment | $1,356 | 14.8 | $1,065 | 12.2 | $291 | | Services | $736 | 15.6 | $792 | 16.1 | $(56) | | Total | $4,015 | 28.8 | $3,544 | 26.0 | $471 | - Total SG&A expenses increased by **$471 thousand (13.3%)**, primarily due to higher administrative and Treatment Segment expenses[118](index=118&type=chunk) - Administrative SG&A increased due to higher salaries, payroll, stock option compensation (including new COO hiring), and increased legal/consulting fees[118](index=118&type=chunk) - Treatment Segment SG&A rose due to increased payroll for PFAS technology marketing initiatives and higher trade show expenses[118](index=118&type=chunk) [R&D](index=30&type=section&id=R%26D) Reports the increase in research and development expenses, primarily driven by investments in PFAS technology - R&D expenses increased by approximately **$87 thousand** in Q1 2025 compared to Q1 2024, primarily due to investments in PFAS technology development[119](index=119&type=chunk) [Interest Income](index=30&type=section&id=Interest%20Income) Explains the increase in interest income, attributed to earnings from money market accounts following equity raises - Interest income increased by approximately **$161 thousand** in Q1 2025, driven by interest earned from funds in the money market deposit account following equity raises in May and December 2024[120](index=120&type=chunk) [Income Taxes](index=30&type=section&id=Income%20Taxes) Discusses the income tax expense and effective tax rate for continuing operations, noting the impact of a valuation allowance - The company reported **$0** income tax expense for continuing operations in Q1 2025 (**0%** effective tax rate) due to a full valuation allowance against deferred tax assets, compared to a **$956 thousand** income tax benefit (**21.7%** effective tax rate) in Q1 2024[121](index=121&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses the company's ability to meet short-term and long-term obligations, detailing cash flows, capital expenditures, and credit facilities [Operating Activities](index=31&type=section&id=Operating%20Activities) Analyzes cash flows from operating activities, highlighting improvements due to changes in accounts receivable and deferred revenue - Cash used in continuing operations decreased from **$4,358 thousand** in Q1 2024 to **$2,048 thousand** in Q1 2025, primarily due to a decrease in accounts receivable and deferred revenue[123](index=123&type=chunk)[124](index=124&type=chunk) - Cash used in discontinued operations decreased from **$159 thousand** in Q1 2024 to **$56 thousand** in Q1 2025, partially offset by rent payments received from a tenant[123](index=123&type=chunk)[126](index=126&type=chunk) [Investing Activities](index=32&type=section&id=Investing%20Activities) Examines cash flows used in investing activities, primarily driven by purchases of property and equipment, including PFAS technology investments - Cash used in investing activities for continuing operations increased from **$318 thousand** in Q1 2024 to **$571 thousand** in Q1 2025, mainly due to higher purchases of property and equipment, including investments in PFAS technology[123](index=123&type=chunk)[129](index=129&type=chunk)[132](index=132&type=chunk) - Cash used in investing activities for discontinued operations was **$15 thousand** in Q1 2025, related to regulatory permits[123](index=123&type=chunk)[130](index=130&type=chunk) [Capital Expenditures](index=32&type=section&id=Capital%20Expenditures) Outlines anticipated capital expenditures for 2025, including strategic project initiatives and funding sources - Anticipated capital expenditures for 2025 range from **$2,000 thousand** to **$5,500 thousand**, including strategic project initiatives like the installation of a second-generation PFAS technology unit[133](index=133&type=chunk) - Funding for capital expenditures will come from operations, liquidity under the Loan Agreement, and/or financing[133](index=133&type=chunk) [Financing Activities](index=32&type=section&id=Financing%20Activities) Details cash flows from financing activities, including debt payments and costs associated with equity raises - Cash used in financing activities increased from **$125 thousand** in Q1 2024 to **$396 thousand** in Q1 2025, primarily due to principal payments on debt, finance leases, and offering costs from a December 2024 equity raise[123](index=123&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk) [Credit Facility](index=32&type=section&id=Credit%20Facility) Describes the company's loan agreement, including revolving credit, term loans, and recent amendments to covenants - The Loan Agreement with PNC, maturing May 15, 2027, includes a **$12.5 million** revolving credit, a **$2.5 million** Term Loan, and a **$524 thousand** Capital Loan[136](index=136&type=chunk) - An amendment on March 11, 2025, removed the quarterly fixed charge coverage ratio (FCCR) covenant testing unless daily liquidity falls below **$5,000 thousand**, and revised the Facility Fee[137](index=137&type=chunk)[142](index=142&type=chunk) - The company met all financial covenant requirements in Q1 2025 and expects to continue meeting them for the next twelve months[137](index=137&type=chunk) [Off Balance Sheet Arrangements](index=33&type=section&id=Off%20Balance%20Sheet%20Arrangements) Reports outstanding standby letters of credit, bonds, and environmental closure and post-closure requirements - As of March 31, 2025, outstanding standby letters of credit totaled approximately **$3,200 thousand**, and bonds outstanding totaled approximately **$21,481 thousand**[138](index=138&type=chunk) - Closure and post-closure requirements for certain Treatment Segment facilities, supported by an AIG financial assurance policy, were approximately **$23,949 thousand**[138](index=138&type=chunk) [Critical Accounting Policies and Estimates](index=33&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Confirms no significant changes to critical accounting policies or estimates from the prior annual report - There were no significant changes in critical accounting policies or estimates from those discussed in the Annual Report on Form 10-K for the year ended December 31, 2024[139](index=139&type=chunk) [Recent Accounting Pronouncements](index=33&type=section&id=Recent%20Accounting%20Pronouncements) Refers to Note 2 for details on recently adopted and future accounting pronouncements - Refer to Note 2 for details on recently adopted and future accounting pronouncements[140](index=140&type=chunk) [Known Trends and Uncertainties](index=33&type=section&id=Known%20Trends%20and%20Uncertainties) Discusses key trends and uncertainties impacting the business, including customer reliance, federal funding, and macroeconomic conditions [Significant Customers](index=33&type=section&id=Significant%20Customers) Highlights the company's reliance on federal government clients and the associated risks of contract termination due to funding changes - Revenue from federal government clients (directly or indirectly) accounted for approximately **$8,404 thousand (60.4%)** of total revenue in Q1 2025, down from **$9,373 thousand (68.8%)** in Q1 2024[141](index=141&type=chunk) - Government contracts are subject to termination for convenience, posing a material adverse impact risk if funding is significantly reduced[141](index=141&type=chunk) [Federal Funding](index=34&type=section&id=Federal%20Funding) Addresses the impact of continuing resolutions and federal spending cuts on government funding and procurement actions - A full-year Continuing Resolution (CR) signed on March 15, 2025, funds federal agencies at 2024 fiscal year budget levels through September 30, 2025[143](index=143&type=chunk) - The CR and the Department of Government Efficiency's (DOGE) mission to slash federal spending create uncertainties that could negatively impact financial results through delayed or canceled procurement actions[143](index=143&type=chunk) [Market Trends and Uncertainties](index=34&type=section&id=Market%20Trends%20and%20Uncertainties) Examines macroeconomic conditions, including policy changes, interest rates, and labor markets, and their potential impact on the company - Macroeconomic conditions, including government policy changes, tariff actions, interest rate ambiguity, and softening labor markets, create significant uncertainty in the global economy[144](index=144&type=chunk) - The company is monitoring potential impacts on revenue and profitability from supply chain challenges, cost volatility, and economic pressures on customers, implementing strategic options to mitigate risks[144](index=144&type=chunk) [New Processing Technology](index=34&type=section&id=New%20Processing%20Technology) Details the deployment and future plans for the Perma-FAS system for PFAS destruction, a new revenue source - The company completed the installation and startup of its first full-scale commercial Perma-FAS system for PFAS destruction, a promising new revenue source[145](index=145&type=chunk) - The company has secured and is treating approximately **10,000 gallons** of AFFF liquids and expects an additional **50,000 gallons** in the coming months[145](index=145&type=chunk) - Plans include deploying a second-generation unit in Q4 2025 and advancing the technology into pilot-scale applications for soil, biosolids, and filter media by Q3 2025[146](index=146&type=chunk) [Environmental Contingencies](index=34&type=section&id=Environmental%20Contingencies) Discusses environmental regulations, potential liabilities as a responsible party, and accrued remediation liabilities - The company is subject to rigorous federal, state, and local environmental regulations in the waste management services segment[147](index=147&type=chunk) - Despite compliance efforts, the company could be liable for remedial costs as a potentially responsible party (PRP) at third-party disposal sites[148](index=148&type=chunk) - As of March 31, 2025, total accrued environmental remediation liabilities were **$767 thousand**, recorded as long-term, with expenses expected to be funded from operations[149](index=149&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Perma-Fix Environmental Services, Inc. is not required to provide quantitative and qualitative disclosures about market risk - Quantitative and qualitative disclosures about market risk are not required for smaller reporting companies[150](index=150&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's management, including the Principal Executive Officer and Principal Financial Officer, evaluated the effectiveness of its disclosure controls and procedures as of March 31, 2025, concluding they were effective. There were no material changes in internal control over financial reporting during the quarter - Disclosure controls and procedures were evaluated and deemed effective as of March 31, 2025[151](index=151&type=chunk) - No material changes in internal control over financial reporting occurred during the most recently completed fiscal quarter[152](index=152&type=chunk) [PART II. OTHER INFORMATION](index=35&type=section&id=PART%20II%20OTHER%20INFORMATION) Presents additional information not covered in the financial statements, including legal proceedings, risk factors, and exhibits [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) There are no new material legal proceedings pending against the company or its subsidiaries not previously reported. Updates to previously disclosed legal matters, specifically the Tetra Tech EC, Inc. lawsuit and a shareholder demand letter, are incorporated by reference from Note 9 - No new material legal proceedings are pending against the company[154](index=154&type=chunk) - Updates to the Tetra Tech EC, Inc. lawsuit and a shareholder demand letter are discussed in Note 9[154](index=154&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Form 10-K for the year ended December 31, 2024 - No material changes to risk factors previously disclosed in the 2024 Form 10-K[155](index=155&type=chunk) [Item 6. Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including amendments to the credit agreement, 2025 incentive compensation plans for executive officers, an incentive stock option agreement, certifications by the CEO and CFO, and XBRL interactive data files - Includes the Tenth Amendment to the Second Amended and Restated Revolving Credit, Term Loan and Security Agreement dated March 11, 2025[157](index=157&type=chunk) - Lists 2025 Incentive Compensation Plans for the CEO, CFO, EVP of Strategic Initiatives, EVP of Hanford and International Waste Operations, and COO[157](index=157&type=chunk) - Contains certifications by the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) and 18 U.S.C. Section 1350[157](index=157&type=chunk)

Financial Data and Key Metrics Changes - Total revenue for the first quarter was $13.9 million, a slight increase of 2.2% from $13.6 million in the prior year [16] - Gross profit for the quarter was $657,000, compared to a gross loss of $620,000 in Q1 of the previous year [17] - Net loss for the quarter remained consistent at $3.6 million, with a loss per share of $0.19 compared to $0.26 in the prior year [17][18] Business Segment Data and Key Metrics Changes - Treatment Segment revenue increased by $477,000 or 5.5% year over year, driven by higher waste volumes received and processed [16] - Services Segment revenue decreased by $175,000 due to delays in federal procurement activity [16][8] - Gross profit in the Treatment Segment improved due to higher revenue and lower variable costs, while the Services Segment saw a significant improvement in gross margins [17][8] Market Data and Key Metrics Changes - Waste backlog grew to over $10 million, up approximately 30% from the previous year [6][19] - International waste receipts improved, with approximately $7 million worth of waste received from Canada, Mexico, and Germany [11] Company Strategy and Development Direction - The company is focusing on expanding its PFAS program, which is seen as a long-term growth driver due to increasing state regulations [9] - Strategic partnerships are being developed to enhance international presence and diversify revenue streams [13] - The company anticipates stronger performance in the second half of 2025, supported by key growth drivers including waste treatment backlog and federal procurement visibility [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the federal budget, indicating no significant cuts to the Hanford project and potential increases in funding for waste remediation [23][24] - The company is seeing a significant increase in waste receipts from Hanford, with expectations of continued treatment for several years [26][28] - Management remains confident in the upcoming DF Law program and its potential to generate high-margin recurring revenue [10] Other Important Information - The company is making targeted investments to support new waste receipts, including staffing and facility readiness [7] - The new EPA Administrator's focus on PFAS remediation is viewed positively, potentially driving demand for the company's technology [10][42] Q&A Session Summary Question: Impact of the 2026 federal budget on 2025 and 2026 - Management noted that the proposed budget is favorable, with no reduction in Hanford funding and a significant increase in the NNSA side, which could lead to more remediation projects [23][24] Question: Current waste receipts from Hanford - Management confirmed receiving $2 million to $3 million a month from Hanford, significantly higher than in the past [26] Question: Margins from Hanford contracts - Management refrained from discussing specific margins but emphasized traditional margins and cost management efforts [27] Question: Update on grouting and near-term priorities - Management indicated that DOE is expected to provide clarity on their strategy by December 2025, with optimism about the company's role in the grouting program [35][36] Question: Contribution from the second-generation PFAS unit - Management expects the new system to generate approximately $1 million a month initially, with long-term goals of $20 million a year [39][40] Question: Status of services and RFPs - Management reported an increase in project opportunities and a clearer path forward for the West Valley project, with expectations for more clarity in the coming months [44][47] Question: CapEx priorities for the year - Management anticipates CapEx in the range of $5 million to $6 million, focusing on sustaining operations and the second-generation reactor [48] Question: Commentary on competition and market dynamics - Management acknowledged competition but expressed confidence in securing a significant portion of the waste due to local operations and community ties [84]