Annual report pursuant to section 13 and 15(d)

RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS

v2.4.0.8
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS
 12 Months Ended
Dec. 31, 2012
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS [Abstract]  
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1A
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS
 
On November 13, 2013, management of Perma-Fix Environmental Services, Inc. (the "Company") concluded, in consultation with the Audit Committee of the Board of Directors ("Audit Committee") and BDO USA, LLP, the Company's independent registered public accounting firm, that the following financial statements previously filed by the Company with the Securities and Exchange Commission (the "Commission") should no longer be relied upon: the audited consolidated financial statements for the years ended December 31, 2012, 2011, and 2010 on its 2012 Form 10-K as filed with the Commission on March 22, 2013.

During the process of reviewing and filing the Company's 2012 corporate income tax returns, the Company identified information related to certain deferred tax assets ("DTA") that were recorded as part of the acquisition of our Diversified Scientific Services, Inc. subsidiary ("DSSI") in 2000.  Upon subsequent analysis of this information, the Company determined that there was not sufficient support for a portion of the DTA. The adjustment of DTA also resulted in re-evaluation and adjustments to valuation allowance and reserve for uncertain tax positions.  The Company also performed a review of its deferred tax liabilities ("DTL") and determined that the reported DTL related to depreciation for fixed assets for 2011 was understated. To correct these errors, the Company reduced the beginning retained earnings balance in 2010 by approximately $1,600,000, reduced income tax expense by approximately $1,355,000 in 2010, recorded approximately $5,768,000 of income tax expense in 2011 and reversed $2,913,000 of income tax expense recorded in 2012.

The restatement had no impact on the Company's previously reported cash and cash equivalents, revenue or income (loss) from continuing operations before income taxes.

As a result of the reverse stock split, which was effective on October 15, 2013, all references in the consolidated financial statements and notes thereto to the number of shares outstanding, per share amounts, and shares subject to outstanding stock options and warrant, have been amended to refect the effect of the reverse stock for all periods presented as though the reverse stock split was in effect as of the periods or periods presented herein.

The following table summarizes the impact of the restatements on each affected line of the Company's Consolidated Balance Sheets as of December 31, 2012 and December 31, 2011:

 
 
December 31, 2012
 
 
December 31, 2011
 
(Amounts in Thousands)
 
As Reported
 
 
Adjustment
 
 
As Restated
 
 
As Reported
 
 
Adjustment
 
 
As Restated
 
Deferred tax assets - current
 
$
1,553
 
 
$
(237
)
 
$
1,316
 
 
$
3,853
 
 
$
(488
)
 
$
3,365
 
Total current assets
 
 
30,447
 
 
 
(237
)
 
 
30,210
 
 
 
50,762
 
 
 
(488
)
 
 
50,274
 
Deferred tax asset, net of liabilities
 
 
1,103
 
 
 
(1,103
)
 
 
-
 
 
 
1,435
 
 
 
(1,435
)
 
 
-
 
Total assets
 
 
141,031
 
 
 
(1,340
)
 
 
139,691
 
 
 
165,577
 
 
 
(1,923
)
 
 
163,654
 
Accrued expenses
 
 
6,254
 
 
 
418
 
 
 
6,672
 
 
 
9,434
 
 
 
-
 
 
 
9,434
 
Total current liabilities
 
 
27,140
 
 
 
418
 
 
 
27,558
 
 
 
42,740
 
 
 
-
 
 
 
42,740
 
Deferred tax liabilities
 
 
-
 
 
 
1,340
 
 
 
1,340
 
 
 
-
 
 
 
4,088
 
 
 
4,088
 
Total long-term liabilities
 
 
25,254
 
 
 
1,340
 
 
 
26,594
 
 
 
28,517
 
 
 
4,088
 
 
 
32,605
 
Total liabilities
 
 
52,394
 
 
 
1,758
 
 
 
54,152
 
 
 
71,257
 
 
 
4,088
 
 
 
75,345
 
Accumulated deficit
 
 
(16,005
)
 
 
(3,098
)
 
 
(19,103
)
 
 
(9,733
)
 
 
(6,011
)
 
 
(15,744
)
Total Perma-Fix Environmental
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Services, Inc. stockholders' equity
 
 
86,780
 
 
 
(3,098
)
 
 
83,682
 
 
 
92,643
 
 
 
(6,011
)
 
 
86,632
 
Total stockholders' equity
 
 
87,352
 
 
 
(3,098
)
 
 
84,254
 
 
 
93,035
 
 
 
(6,011
)
 
 
87,024
 
Total liabilities and stockholders' equity
 
$
141,031
 
 
$
(1,340
)
 
$
139,691
 
 
$
165,577
 
 
$
(1,923
)
 
$
163,654
 

The following table summarizes the impact of the restatements on each affected line of the Company's Consolidated Statements of Operations for the years ended December 31, 2012, December 31, 2011 and December 31 2010:
 
 
 
December 31, 2012
 
 
December 31, 2011
 
 
December 31, 2010
 
(Amounts in Thousands)
 
As Reported
 
 
Adjustment
 
 
As Restated
 
 
As Reported
 
 
Adjustment
 
 
As Restated
 
 
As Reported
 
 
Adjustment
 
 
As Restated
 
Income tax expense (benefit)
 
$
1,250
 
 
$
(3,401
)
 
$
(2,151
)
 
$
(1,095
)
 
$
5,173
 
 
$
4,078
 
 
$
1,846
 
 
$
(1,611
)
 
$
235
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) income from continuing operations
 
$
(6,550
)
 
$
3,401
 
 
$
(3,149
)
 
$
11,572
 
 
$
(5,173
)
 
$
6,399
 
 
$
3,271
 
 
$
1,611
 
 
$
4,882
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from discontinued operations, net of taxes
 
$
458
 
 
$
(488
)
 
$
(30
)
 
$
777
 
 
$
(595
)
 
$
182
 
 
$
(663
)
 
$
(256
)
 
$
(919
)
Net (loss) income
 
$
(6,092
)
 
$
2,913
 
 
$
(3,179
)
 
$
13,858
 
 
$
(5,768
)
 
$
8,090
 
 
$
2,608
 
 
$
1,355
 
 
$
3,963
 
Net (loss) income attributable to Perma-Fix Environmental Services, Inc. common stockholders
 
$
(6,272
)
 
$
2,913
 
 
$
(3,359
)
 
$
13,836
 
 
$
(5,768
)
 
$
8,068
 
 
$
2,608
 
 
$
1,355
 
 
$
3,963
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income attributable to Perma-Fix Environmental Services, Inc. common stockholders - basic:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
$
(.60
)
 
$
.30
 
 
$
(.30
)
 
$
1.04
 
 
$
(.46
)
 
$
.58
 
 
$
.30
 
 
$
.14
 
 
$
.44
 
Discontinued operations
 
$
.04
 
 
$
(.04
)
 
$
-
 
 
$
.07
 
 
$
(.06
)
 
$
.01
 
 
$
(.06
)
 
$
(.02
)
 
$
(.08
)
Net (loss) income per common share
 
$
(.56
)
 
$
.26
 
 
$
(.30
)
 
$
1.25
 
 
$
(.52
)
 
$
.73
 
 
$
.24
 
 
$
.12
 
 
$
.36
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income attributable to Perma-Fix Environmental Services, Inc. common stockholders - diluted:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
$
(.60
)
 
$
.30
 
 
$
(.30
)
 
$
1.04
 
 
$
(.46
)
 
$
.58
 
 
$
.30
 
 
$
.14
 
 
$
.44
 
Discontinued operations
 
$
.04
 
 
$
(.04
)
 
$
-
 
 
$
.07
 
 
$
(.06
)
 
$
.01
 
 
$
(.06
)
 
$
(.02
)
 
$
(.08
)
Net (loss) income per common share
 
$
(.56
)
 
$
.26
 
 
$
(.30
)
 
$
1.25
 
 
$
(.52
)
 
$
.73
 
 
$
.24
 
 
$
.12
 
 
$
.36
 


The following table summarizes the impact of the restatements on each affected line of the Company's Consolidated Statements of Comprehensive (Loss) Income years ended December 31, 2012, December 31, 2011 and December 31 2010:

 
 
December 31, 2012
 
 
December 31, 2011
 
 
December 31, 2010
 
(Amounts in Thousands)
 
As Reported
 
 
Adjustment
 
 
As Restated
 
 
As Reported
 
 
Adjustment
 
 
As Restated
 
 
As Reported
 
 
Adjustment
 
 
As Restated
 
Net (loss) income
 
$
(6,092
)
 
$
2,913
 
 
$
(3,179
)
 
$
13,858
 
 
$
(5,768
)
 
$
8,090
 
 
$
2,608
 
 
$
1,355
 
 
$
3,963
 
Comprehensive (loss) income
 
$
(6,091
)
 
$
2,913
 
 
$
(3,178
)
 
$
13,855
 
 
$
(5,768
)
 
$
8,087
 
 
$
2,608
 
 
$
1,355
 
 
$
3,963
 
Comprehensive (loss) income attributable to Perma-Fix Environmental Services, Inc. common stockholders
 
$
(6,271
)
 
$
2,913
 
 
$
(3,358
)
 
$
13,833
 
 
$
(5,768
)
 
$
8,065
 
 
$
2,608
 
 
$
1,355
 
 
$
3,963
 

The following table summarizes the impact of the restatements on each affected line of the Company's Consolidated Statements of Cash Flows for the years ended December 31, 2012, December 31, 2011 and December 31 2010:

 
 
December 31, 2012
 
 
December 31, 2011
 
 
December 31, 2010
 
(Amounts in Thousands)
 
As Reported
 
 
Adjustment
 
 
As Restated
 
 
As Reported
 
 
Adjustment
 
 
As Restated
 
 
As Reported
 
 
Adjustment
 
 
As Restated
 
Net (loss) income
 
$
(6,092
)
 
$
2,913
 
 
$
(3,179
)
 
$
13,858
 
 
$
(5,768
)
 
$
8,090
 
 
$
2,608
 
 
$
1,355
 
 
$
3,963
 
Less: income (loss) on discontinued operations
 
$
458
 
 
$
(488
)
 
$
(30
)
 
$
2,286
 
 
$
(595
)
 
$
1,691
 
 
$
(663
)
 
$
(256
)
 
$
(919
)
(Loss) income from continuing operations
 
$
(6,550
)
 
$
3,401
 
 
$
(3,149
)
 
$
11,572
 
 
$
(5,173
)
 
$
6,399
 
 
$
3,271
 
 
$
1,611
 
 
$
4,882
 
Adjustment to reconcile net income from continuing operations to cash provided by operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred tax expense (benefit)
 
$
1,630
 
 
$
(1,864
)
 
$
(234
)
 
$
(3,230
)
 
$
5,173
 
 
$
1,943
 
 
$
1,819
 
 
$
(1,611
)
 
$
208
 
Prepaid expenses, inventories and other assets
 
$
4,800
 
 
$
(1,955
)
 
$
2,845
 
 
$
1,494
 
 
$
-
 
 
$
1,494
 
 
$
1,789
 
 
$
-
 
 
$
1,789
 
Accounts payable, accrued expenses and unearned revenue
 
$
(12,049
)
 
$
418
 
 
$
(11,631
)
 
$
4
 
 
$
-
 
 
$
4
 
 
$
(7,289
)
 
$
-
 
 
$
(7,289
)