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, 2024

☐

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.

(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		30350
(Address of principal executive offices)		(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 1, 2024
Common Stock, $.001 Par Value		15,827,977 shares

PERMA-FIX ENVIRONMENTAL SERVICES, INC.

INDEX

			Page No.
PART I	FINANCIAL INFORMATION

	Item 1.	Condensed Consolidated Financial Statements (Unaudited)	1

		Condensed Consolidated Balance Sheets - September 30, 2024, and December 31, 2023	1

		Condensed Consolidated Statements of Operations - Three and Nine Months Ended September 30, 2024, and 2023	3

		Condensed Consolidated Statements of Comprehensive (Loss) Income - Three and Nine Months Ended September 30, 2024, and 2023	4

		Condensed Consolidated Statement of Stockholders’ Equity - Nine Months Ended September 30, 2024, and 2023	5

		Condensed Consolidated Statements of Cash Flows - Nine Months Ended September 30, 2024, and 2023	7

		Notes to Condensed Consolidated Financial Statements	8

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	37

	Item 4.	Controls and Procedures	37

PART II	OTHER INFORMATION		38

	Item 1.	Legal Proceedings	38

	Item 1A.	Risk Factors	38

	Item 6.	Exhibits	38

PART I - FINANCIAL INFORMATION

ITEM 1. – Financial Statements

PERMA-FIX ENVIRONMENTAL SERVICES, INC.

Condensed Consolidated Balance Sheets


	September 30,
	2024			December 31,
(Amounts in Thousands, Except for Share and Per Share Amounts)	(Unaudited)			2023

ASSETS
Current assets:
Cash	$	10,567		$	7,500
Accounts receivable, net of allowance for credit losses of $21 and $30, respectively		8,741			9,722
Unbilled receivables		7,277			8,432
Inventories		1,135			1,155
Prepaid and other assets		4,346			3,738
Current assets related to discontinued operations		12			13
Total current assets		32,078			30,560

Property and equipment:
Buildings and land		24,764			24,311
Equipment		23,578			22,809
Vehicles		423			434
Leasehold improvements		8			8
Office furniture and equipment		1,139			1,130
Construction-in-progress		2,170			1,010
Total property and equipment		52,082			49,702
Less accumulated depreciation		(31,689	)		(30,693	)
Net property and equipment		20,393			19,009

Property and equipment related to discontinued operations		130			81

Operating lease right-of-use assets		1,778			1,990

Intangibles and other long term assets:
Permits		10,453			9,905
Other intangible assets - net		420			461
Finite risk sinking fund (restricted cash)		12,525			12,074
Deferred tax assets		—			4,299
Other assets		381			370
Total assets	$	78,158		$	78,749

The accompanying notes are an integral part of these condensed consolidated financial statements.

PERMA-FIX ENVIRONMENTAL SERVICES, INC.

Condensed Consolidated Balance Sheets, Continued

	September 30,
	2024			December 31,
(Amounts in Thousands, Except for Share and per Share Amounts)	(Unaudited)			2023

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	7,675		$	9,582
Accrued expenses		6,320			6,560
Disposal/transportation accrual		1,811			1,198
Deferred revenue		5,398			6,815
Accrued closure costs - current		40			79
Current portion of long-term debt		554			773
Current portion of operating lease liabilities		320			380
Current portion of finance lease liabilities		285			291
Current liabilities related to discontinued operations		251			269
Total current liabilities		22,654			25,947

Accrued closure costs		8,201			8,051
Long-term debt, less current portion		1,910			1,975
Long-term operating lease liabilities, less current portion		1,521			1,670
Long-term finance lease liabilities, less current portion		564			776
Long-term liabilities related to discontinued operations		942			953
Total long-term liabilities		13,138			13,425

Total liabilities		35,792			39,372

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; 15,817,046 and 13,654,201 shares issued, respectively; 15,809,404 and 13,646,559 shares outstanding, respectively		16			14
Additional paid-in capital		136,047			116,502
Accumulated deficit		(93,441	)		(76,951	)
Accumulated other comprehensive loss		(168	)		(100	)
Less Common Stock in treasury, at cost; 7,642 shares		(88	)		(88	)
Total stockholders’ equity		42,366			39,377

Total liabilities and stockholders’ equity	$	78,158		$	78,749

The accompanying notes are an integral part of these condensed consolidated financial statements.

PERMA-FIX ENVIRONMENTAL SERVICES, INC.

Condensed Consolidated Statements of Operations

(Unaudited)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Amounts in Thousands, Except for Per Share Amounts)	2024			2023			2024			2023

Net revenues	$	16,812		$	21,877		$	44,415		$	67,016
Cost of goods sold		15,478			17,328			45,007			54,942
Gross profit		1,334			4,549			(592	)		12,074

Selling, general and administrative expenses		3,632			3,933			10,631			10,969
Research and development		303			120			872			340
Loss on disposal of property and equipment		—			—			1			—
(Loss) income from operations		(2,601	)		496			(12,096	)		765

Other income (expense):
Interest income		292			146			679			445
Interest expense		(121	)		(89	)		(346	)		(189	)
Interest expense-financing fees		(18	)		(36	)		(47	)		(80	)
Other		59			(17	)		61			(11	)
(Loss) income from continuing operations before taxes		(2,389	)		500			(11,749	)		930
Income tax expense		6,417			254			4,300			482
(Loss) income from continuing operations, net of taxes		(8,806	)		246			(16,049	)		448

(Loss) income from discontinued operations, net of taxes (Note 10)		(173	)		95			(441	)		(44	)
Net (loss) income	$	(8,979	)	$	341		$	(16,490	)	$	404

Net (loss) income per common share - basic:
Continuing operations	$	(.56	)	$	.02		$	(1.09	)	$	.03
Discontinued operations		(.01	)		.01			(.03	)		—
Net (loss) income per common share	$	(.57	)	$	.03		$	(1.12	)	$	.03

Net (loss) income per common share - diluted:
Continuing operations	$	(.56	)	$	.02		$	(1.09	)	$	.03
Discontinued operations		(.01	)		—			(.03	)		—
Net (loss) income per common share	$	(.57	)	$	.02		$	(1.12	)	$	.03

Number of common shares used in computing net (loss) income per share:
Basic		15,803			13,568			14,695			13,468
Diluted		15,803			13,979			14,695			13,749

The accompanying notes are an integral part of these condensed consolidated financial statements.

PERMA-FIX ENVIRONMENTAL SERVICES, INC.

Condensed Consolidated Statements of Comprehensive (Loss) Income

(Unaudited)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Amounts in Thousands)	2024			2023			2024			2023

Net (loss) income	$	(8,979	)	$	341		$	(16,490	)	$	404
Other comprehensive income (loss):
Foreign currency translation adjustment		19			(57	)		(68	)		(4	)
Total other comprehensive income (loss)		19			(57	)		(68	)		(4	)

Comprehensive (loss) income	$	(8,960	)	$	284		$	(16,558	)	$	400

The accompanying notes are an integral part of these condensed consolidated financial statements.

PERMA-FIX ENVIRONMENTAL SERVICES, INC

Condensed Consolidated Statement of Stockholders’ Equity

(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 (Note 14)		2,051,282		2		18,113		—			—			—			18,115
Issuance of warrants from sale of Common Stock (Note 14)		—		—		331		—			—			—			331
Stock-Based Compensation		—		—		132		—									132
Balance at June 30, 2024		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 (Note 14)		—		—		10		—			—			—			10
Stock-Based Compensation		—		—		182		—									182
Balance at September 30, 2024		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.

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, 2022		13,332,398	$	13	$	115,209	$	(88	)	$	(165	)	$	(77,436	)	$	37,533
Net loss		—		—		—		—			—			(411	)		(411	)
Foreign currency translation		—		—		—		—			7			—			7
Issuance of Common Stock for services		33,319		—		118		—			—			—			118
Issuance of Common Stock upon exercise of options		31,719		—		7		—			—			—			7
Stock-Based Compensation		—		—		118		—			—			—			118
Balance at March 31, 2023		13,397,436	$	13	$	115,452	$	(88	)	$	(158	)	$	(77,847	)	$	37,372
Net income		—		—		—		—			—			474			474
Foreign currency translation		—		—		—		—			46			—			46
Issuance of Common Stock for services		10,171		—		119		—			—			—			119
Issuance of Common Stock upon exercise of options		155,136		1		93		—			—			—			94
Stock-Based Compensation		—		—		125		—			—			—			125
Balance at June 30, 2023		13,562,743	$	14	$	115,789	$	(88	)	$	(112	)	$	(77,373	)	$	38,230
Balance		13,562,743	$	14	$	115,789	$	(88	)	$	(112	)	$	(77,373	)	$	38,230
Net Income		—		—		—		—			—			341			341
Net Income (loss)		—		—		—		—			—			341			341
Foreign currency translation		—		—		—		—			(57	)		—			(57	)
Issuance of Common Stock for services		10,712		—		119		—			—			—			119
Issuance of Common Stock upon exercise of options		15,478		—		49		—			—			—			49
Stock-Based Compensation		—		—		149		—			—			—			149
Balance at September 30, 2023		13,588,933	$	14	$	116,106	$	(88	)	$	(169	)	$	(77,032	)	$	38,831
Balance		13,588,933	$	14	$	116,106	$	(88	)	$	(169	)	$	(77,032	)	$	38,831

The accompanying notes are an integral part of these condensed consolidated financial statements.

PERMA-FIX ENVIRONMENTAL SERVICES, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Nine Months Ended
	September 30,
(Amounts in Thousands)	2024			2023
Cash flows from operating activities:
Net (loss) income	$	(16,490	)	$	404
Less: Loss from discontinued operations, net of taxes (Note 10)		(441	)		(44	)

(Loss) income from continuing operations, net of taxes		(16,049	)		448
Adjustments to reconcile (loss) income from continuing operations to cash used in operating activities:
Depreciation and amortization		1,295			2,124
Amortization of debt issuance costs		47			80
Deferred tax expense		4,300			482
(Recovery of) provision for credit losses on accounts receivable		(9	)		56
Loss on disposal of property and equipment		1			—
Issuance of Common Stock for services		361			356
Stock-based compensation		466			392
Changes in operating assets and liabilities of continuing operations
Accounts receivable		990			(6,034	)
Unbilled receivables		1,155			(3,274	)
Prepaid expenses, inventories and other assets		2,277			3,696
Accounts payable, accrued expenses and unearned revenue		(5,805	)		2,175
Cash (used in) provided by continuing operations		(10,971	)		501
Cash used in discontinued operations		(468	)		(478	)
Cash used in operating activities		(11,439	)		23

Cash flows from investing activities:
Purchases of property and equipment		(2,224	)		(1,386	)
Addition to permits and other intangible assets		(577	)		(49	)
Proceeds from sale of property and equipment		1			—
Cash used in continuing operations		(2,800	)		(1,435	)
Cash used in discontinued operations		(49	)		—
Cash used in investing activities		(2,849	)		(1,435	)

Cash flows from financing activities:
Repayments of revolving credit borrowings		(78,313	)		(63,295	)
Borrowing on revolving credit		78,313			63,295
Proceeds from long term debt		—			2,500
Proceeds from sale of Common Stock, net of offering costs paid (Note 14)		18,495			—
Principal repayments of finance lease liabilities		(218	)		(135	)
Principal repayments of long term debt		(675	)		(450	)
Payment of debt issuance costs		(61	)		(175	)
Proceeds from issuance of Common Stock upon exercise of options/warrant		264			150
Cash provided by financing activities of continuing operations		17,805			1,890

Effect of exchange rate changes on cash		1			—

Increase in cash and finite risk sinking fund (restricted cash)		3,518			478
Cash and finite risk sinking fund (restricted cash) at beginning of period		19,574			13,436
Cash and finite risk sinking fund (restricted cash) at end of period	$	23,092		$	13,914

Supplemental disclosure:
Interest paid	$	349		$	172
Income taxes paid		50			—
Non-cash financing activities:
Equipment/property purchase subject to finance		406			309

The accompanying notes are an integral part of these condensed consolidated financial statements.

PERMA-FIX ENVIRONMENTAL SERVICES, INC.

Notes to Condensed Consolidated Financial Statements

September 30, 2024

(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 (the “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, 2024, are not necessarily indicative of results to be expected for the fiscal year ending December 31, 2024.

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, 2023.

The condensed consolidated financial statements include the accounts of our wholly-owned subsidiaries.

Reclassification

Certain amounts in the condensed consolidated statement of cash flows for the prior period have been reclassified to conform with current presentation. The reclassifications had no effect on the condensed consolidated statements of operations, balance sheets and stockholders’ equity.

2. Summary of Significant Accounting Policies

Our accounting policies are as set forth in the notes to the December 31, 2023, consolidated financial statements referred to above.

Recently Issued Accounting Standards – Not Yet 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 Company is currently evaluating the impact of this ASU on its consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which expands reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of a segment’s profit or loss. The ASU also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. Additionally, ASU 2023-07 requires all segment profit or loss and assets disclosures to be provided on an annual and interim basis. The amendments in this ASU are required to be adopted for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and should be applied on a retrospective basis. ASU 2023-07 will be effective for the Company’s financial statements for the year ended December 31, 2024. This ASU will not have impact on the Company’s consolidated financial condition or results of operations. The Company is evaluating the impact to the related segment reporting disclosures.

In December 2023, the FASB issued ASU No. 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. The guidance is effective for annual periods beginning after December 15, 2024. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. This ASU will not have impact on the Company’s consolidated financial condition or results of operations. The Company is evaluating the impact to its income taxes reporting disclosures.

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


Revenue by Contract Type
(In thousands)	Three Months Ended						Three Months Ended
	September 30, 2024						September 30, 2023
	Treatment		Services		Total		Treatment		Services		Total
Fixed price	$	9,064	$	6,396	$	15,460	$	10,795	$	10,188	$	20,983
Time and materials		—		1,352		1,352		—		894		894
Total	$	9,064	$	7,748	$	16,812	$	10,795	$	11,082	$	21,877


Revenue by Contract Type
(In thousands)	Nine Months Ended						Nine Months Ended
	September 30, 2024						September 30, 2023
	Treatment		Services		Total		Treatment		Services		Total
Fixed price	$	26,116	$	15,405	$	41,521	$	33,223	$	29,995	$	63,218
Time and materials		—		2,894		2,894		—		3,798		3,798
Total	$	26,116	$	18,299	$	44,415	$	33,223	$	33,793	$	67,016


Revenue by generator
(In thousands)	Three Months Ended						Three Months Ended
	September 30, 2024						September 30, 2023
	Treatment		Services		Total		Treatment		Services		Total
Domestic government	$	6,578	$	7,346	$	13,924	$	7,095	$	8,444	$	15,539
Domestic commercial		2,229		312		2,541		3,450		2,170		5,620
Foreign government		—		65		65		250		445		695
Foreign commercial		257		25		282		—		23		23
Total	$	9,064	$	7,748	$	16,812	$	10,795	$	11,082	$	21,877


Revenue by generator
(In thousands)	Nine Months Ended						Nine Months Ended
	September 30, 2024						September 30, 2023
	Treatment		Services		Total		Treatment		Services		Total
Domestic government	$	18,997	$	17,129	$	36,126	$	24,160	$	29,603	$	53,763
Domestic commercial		6,045		867		6,912		7,925		3,509		11,434
Foreign government		1		232		233		1,002		615		1,617
Foreign commercial		1,073		71		1,144		136		66		202
Total	$	26,116	$	18,299	$	44,415	$	33,223	$	33,793	$	67,016

Contract Balances

The timing of revenue recognition and billings can result in unbilled receivables (contract assets) or deferred revenue (contract liabilities). The following table represents changes in our contract asset and contract liabilities balances for the periods noted: The reduction in deferred revenue from December 31, 2023, to September 30, 2024, was primarily due to the substantial completion of a waste treatment project for a certain customer in which a prepayment was made to the Company by the customer in 2023.

Schedule of Contract Balances

(In thousands)	September 30, 2024		December 31, 2023		Change ($)			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	%

(In thousands)	September 30, 2023		December 31, 2022		Change ($)		Change (%)
Contract assets
Unbilled receivables - current	$	9,336	$	6,062	$	3,274		54.0	%

Contract liabilities
Deferred revenue	$	7,765	$	4,813	$	2,952		61.3	%

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 the year. During the three and nine months ended September 30, 2023, the Company recognized revenue of $842,000 and $6,289,000, respectively, related to untreated waste that was in the Company’s control as of the beginning of the year. All revenue recognized in each period related to performance obligations satisfied within the respective period.

Accounts Receivable

The following table represents changes in accounts receivable, net of credit losses, for the periods noted:

(In thousands)	September 30, 2024		December 31, 2023		Change ($)			Change (%)

Accounts Receivable (net)	$	8,741	$	9,722	$	(981	)		-10.1	%

	September 30, 2023		December 31, 2022		Change ($)		Change (%)

Accounts Receivable (net)	$	15,342	$	9,364	$	5,978		63.8	%

The decrease from December 31, 2023, to September 30, 2024, was primarily due to reduced billing from decreased revenues. The decrease in accounts receivable was also attributed to the collection by May 2024 of outstanding accounts receivable for work performed for a certain Canadian project for which a settlement agreement was reached, with collection subject to meeting certain conditions/terms. (see “Note 11 - Perma-Fix Canada Inc. (“PF Canada”)”) for a discussion on the collection of the receivables).

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. The Company’s operating leases also previously included the lease of a building with land where its Oak Ridge Environmental Waste Operations (“EWOC”) facility conducts its waste treatment operations. In July 2024, the Company completed the purchase of the EWOC property under the lease purchase option (see “Note 8 – Long Term Debt” for a discussion of the purchase of this property by the Company). Finance leases consist primarily of processing equipment and vehicles/trucks used by our facilities’ operations.

The components of lease cost for the Company’s leases for the three and nine months ended September 30, 2024, and 2023 were as follows (in thousands):

Schedule of Components of Lease Cost


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023

Operating Leases:
Lease cost	$	129	$	157	$	420	$	470

Finance Leases:
Amortization of ROU assets		65		39		196		115
Interest on lease liability		20		9		63		22
Finance lease		85		48		259		137

Short-term lease rent expense		1		—		3		1

Total lease cost	$	215	$	205	$	682	$	608

The weighted average remaining lease term and the weighted average discount rate for operating and finance leases at September 30, 2024, were:

Schedule of Weighted Average Lease

	Operating Leases			Finance Leases
Weighted average remaining lease terms (years)		4.9			3.9

Weighted average discount rate		7.7	%		9.0	%

The weighted average remaining lease term and the weighted average discount rate for operating and finance leases at September 30, 2023, were:

	Operating Leases			Finance Leases
Weighted average remaining lease terms (years)		5.7			3.2

Weighted average discount rate		7.5	%		7.0	%

The following table reconciles the undiscounted cash flows for the operating and finance leases at September 30, 2024, to the operating and finance lease liabilities recorded on the balance sheet (in thousands):

	Operating Leases		Finance Leases
2024	$	108	$	91
2025		486		345
2026		479		192
2027		447		157
2028		343		134
2029 and thereafter		407		102
Total undiscounted lease payments		2,270