PERMA FIX ENVIRONMENTAL SERVICES INC

There has been no other material change from the risk factors previously disclosed in our Form 10-K for the year ended December 31, 2023, except for the following under “Risks Relating to our Financial Performance and Position and Need for Financing.”

Breach of any of the covenants, including the fixed charge coverage ratio under our Loan Agreement, as amended, could result in a default, triggering repayment of outstanding debt under the credit facility and the termination of our credit facility.

From time to time, the Company has failed to meet its minimum quarterly fixed charge coverage ratio requirement under its Loan Agreement, as amended, as in the first quarter of 2024. In these instances, the Company’s lender has either waived the non-compliance or removed the testing requirement for the quarter. The Company’s lender has removed the testing requirement for the fixed charge coverage ratio for the first and second quarters of 2024. If we fail to meet any of our financial covenants going forward, including the minimum quarterly FCCR requirement, and our lender does not waive the non-compliance or remove the testing requirement, our lender could accelerate the payment of our borrowings under our credit facility and terminate our credit facility. In such event, we may not have sufficient liquidity to repay our debt under our credit facility and other indebtedness and/or operate our business.