Annual report [Section 13 and 15(d), not S-K Item 405]

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

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DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

NOTE 1

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

 

Perma-Fix Environmental Services, Inc. (the Company, which may be referred to as we, us, or our), an environmental and technology know-how company, is a Delaware corporation, engaged through its subsidiaries, in two reportable segments:

 

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
- R&D activities to identify, develop and implement innovative waste processing techniques for problematic waste streams.

 

SERVICES SEGMENT, which includes:

 

- Technical services:

 

professional radiological measurement and site survey of large government and commercial installations using advanced methods, technology and engineering;
health physics services including health physicists, radiological engineers, nuclear engineers and health physics technicians support to government and private radioactive materials licensees;
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 (civil, nuclear, mechanical, chemical, radiological and environmental), project management, waste management, environmental, and decontamination and decommissioning (“D&D”) field, technical, and management personnel and services to commercial and government customers; and
waste management services to commercial and governmental customers.

 

- Nuclear services:

 

D&D of government and commercial facilities impacted with radioactive material and hazardous constituents including engineering, technology applications, specialty services, logistics, transportation, processing and disposal; and
license termination support of radioactive material licensed and federal facilities over the entire cycle of the termination process: project management, planning, characterization, waste stream identification and delineation, remediation/demolition, final status survey, compliance demonstration, reporting, transportation, disposal and emergency response.

 

- 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 continuing operations consist of the operations of its subsidiaries/facilities as follow: Diversified Scientific Services, Inc. (“DSSI”), Perma-Fix of Florida, Inc. (“PFF”), Perma-Fix of Northwest Richland, Inc. (“PFNWR”), Safety & Ecology Corporation (“SEC”), Perma-Fix Environmental Services UK Limited (“PF UK Limited”), Perma-Fix Canada, Inc. (“PF Canada”) and Oak Ridge Environmental Waste Operations Center (“EWOC”).

 

The Company’s discontinued operations (see “Note 8 – Discontinued Operations”) consist of operations of all our subsidiaries included in our previous Industrial Segment which encompasses subsidiaries divested in 2011 and earlier, as well as three previously closed locations.

 

 

Financial Positions and Liquidity

 

The Company’s cash flow requirements during the twelve-months ended December 31, 2025, were primarily financed by its Liquidity (defined under the Company’s Loan Agreement as borrowing availability under the Revolving Credit of its Credit Facility plus cash in its Money Market Deposit Account (“MMDA”) maintained with its lender (see “Note 9 – Long-Term Debt – Credit Facility” for a discussion of the Company’s Credit Facility)). The Company’s Liquidity also consisted of net proceeds received from the sales of an aggregate 4,581,282 shares of its Common Stock pursuant to certain Securities Purchase and Underwriting Agreements executed in May 2024 and December 2024 (see “Note 17 – Sales of Common Stock” for a discussion of these offerings). The Company’s cash flow requirements for the next twelve months will consist primarily of general working capital needs, scheduled principal payments on its debt obligations, administration and monitoring of its discontinued operations, research and development (“R&D”) on its Per- and polyfluoroalkyl substances (“PFAS”) technology and capital expenditures (which include its PFAS technology). The Company plans to fund these requirements from its operations and Liquidity. The Company is 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 December 31, 2025, the Company had no outstanding borrowing under its Revolving Credit and Liquidity under its Loan Agreement was approximately $18,126,000, which included approximately $11,529,000 of cash in its MMDA. The Company believes that its cash flows from operations and Liquidity should be sufficient to fund its operations for the next twelve months. If the Company continues to incur losses, this could cause a reduction in its Liquidity.

 

Reclassification

 

During the year ended December 31, 2025, the Company revised the presentation of its disaggregation of revenue in “Note 3 – Revenue” for year ended December 31, 2024, to reclassify certain contracts previously reported as fixed price to time and materials. Specifically, approximately $642,000 of revenue was reclassified from fixed price revenues to time and materials revenues. The reclassification had no effect on the consolidated statements of operations, balance sheets, stockholders’ equity and cash flows.