Forward-looking Statements

Certain statements contained within this report may be deemed "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (collectively, the "Private Securities Litigation Reform Act of 1995"). All statements in this report other than a statement of historical fact are forward-looking statements that are subject to known and unknown risks, uncertainties and other factors, which could cause actual results and performance of the Company to differ materially from such statements. The words "believe," "expect," "anticipate," "intend," "will," and similar expressions identify forward-looking statements. Forward-looking statements contained herein relate to, among other things,





? demand for our services;
? reductions in the level of government funding in future years;
? R&D activity and necessary capital of our Medical Segment;
? reducing operating costs and non-essential expenditures;
? ramp up of activities under contract awards;
? ability to meet loan agreement covenant requirements;
? cash flow requirements;
? accounts receivable impact and collections;
? sufficient liquidity to continue business;
? future results of operations and liquidity;
? effect of economic disruptions on our business;


? curtail capital expenditures;
? government funding for our services;
? may not have liquidity to repay debt if our lender accelerates payment of our

borrowings;

? manner in which the applicable government will be required to spend funding to


  remediate various sites;
? funding operations;
? fund capital expenditures from cash from operations, credit facility
  availability, and/or financing;
? impact from COVID-19;
? contract awards;
? fund remediation expenditures for sites from funds generated internally;
? collection of accounts receivables;
? compliance with environmental regulations;
? potential effect of being a PRP;
? potential sites for violations of environmental laws and remediation of our

facilities;

? continuation of contracts with federal government; ? partial or full shutdown of any of our facilities; ? continued waste shipments delays by clients; and ? R&D costs.

While the Company believes the expectations reflected in such forward-looking statements are reasonable, it can give no assurance such expectations will prove to be correct. There are a variety of factors, which could cause future outcomes to differ materially from those described in this report, including, but not limited to:





? general economic conditions;
? contract bids, including international markets;
? material reduction in revenues;
? inability to meet PNC covenant requirements;
? inability to collect in a timely manner a material amount of receivables;
? increased competitive pressures;

inability to maintain and obtain required permits and approvals to conduct ? operations; ? public not accepting our new technology;

inability to develop new and existing technologies in the conduct of ? operations; ? inability to maintain and obtain closure and operating insurance requirements; ? inability to retain or renew certain required permits; ? discovery of additional contamination or expanded contamination at any of the

sites or facilities leased or owned by us or our subsidiaries which would

result in a material increase in remediation expenditures; ? delays at our third-party disposal site can extend collection of our

receivables greater than twelve months; ? refusal of third-party disposal sites to accept our waste; ? changes in federal, state and local laws and regulations, especially

environmental laws and regulations, or in interpretation of such; ? requirements to obtain permits for TSD activities or licensing requirements to

handle low level radioactive materials are limited or lessened; ? potential increases in equipment, maintenance, operating or labor costs; ? management retention and development; ? financial valuation of intangible assets is substantially more/less than

expected;

? the requirement to use internally generated funds for purposes not presently

anticipated;

? inability to continue to be profitable on an annualized basis; ? inability of the Company to maintain the listing of its Common Stock on the

NASDAQ;

? terminations of contracts with government agencies (domestic and foreign) or

subcontracts involving government agencies (domestic or foreign), or reduction

in amount of waste delivered to the Company under the contracts or


  subcontracts;




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?    renegotiation of contracts involving government agencies (domestic and
     foreign);
?    federal government's inability or failure to provide necessary funding to
     remediate contaminated federal sites;
?    disposal expense accrual could prove to be inadequate in the event the waste
     requires re-treatment;
?    inability to raise capital on commercially reasonable terms;
?    inability to increase profitable revenue;
?    impact of the COVID-19;
?    delays in waste shipments and contract awards;
?    new governmental regulations;
?    lender refuses to waive non-compliance or revise our covenant so that we are
     in compliance;
?    other unanticipated factors; and
?    risk factors and other factors set forth in "Special Note Regarding
     Forward-Looking Statements" contained in the Company's 2020 Form 10-K and
     the "Forward-Looking Statements" contained in the "Management's Discussion
     and Analysis of Financial Condition and Results of Operations" ("MD&A") of
     the first and second quarter 2021 Form 10-Qs and this third quarter 2021
     Form 10-Q.




COVID-19 Impact

Our management team continues to proactively update our ongoing business operations and safety plans in an effort to mitigate any potential impact of COVID-19. We continue to monitor government mandates and recommendations and remain focused on protecting the health and well-being of our employees and the communities in which we operate while assuring the continuity of our business operations. As previously disclosed, our Treatment Segment's revenue has been negatively impacted by continued waste shipment delays from certain customers since the latter part of the first quarter of 2020 at the start of the pandemic. However, we are beginning to see a gradual return in waste receipts from these customers starting in the latter part of the third quarter of 2021. As previously disclosed, within our Services Segment, we experienced delays in procurement actions and contract awards resulting primarily from the impact of COVID-19. However, since the end of the second quarter of 2021, we have been awarded a number of new contracts, including a fixed price contract awarded to us at the end of the third quarter of 2021 with a value of approximately $40,000,000 for the decommissioning of a navy ship. Project work under this contract is expected to be completed over an eighteen to twenty-four months period. We expect to see ramp-up of activities from these new projects starting in the fourth quarter of 2021. Within our Treatment and Services Segments, we continue to have bids currently submitted and awaiting awards.

As the situations surrounding COVID-19 continues to remain fluid, the full impact and extent of the pandemic on our financial results and liquidity cannot be estimated with any degree of certainty. We continue to closely monitor the impact of the COVID-19 pandemic on all aspects of our business, including our customers' payment performance. However, since a significant portion of our revenues is derived from government related contracts, we do not expect our accounts receivable collections to be materially impacted due to COVID-19.

At this time, we believe we have sufficient liquidity on hand to continue business operations during the next twelve months. At September 30, 2021, our borrowing availability under our revolving credit facility was approximately $10,804,000 which was based on a percentage of eligible receivables and subject to certain reserves. On September 30, 2021, we entered into subscription agreements with certain institutional and retail investors for the sale and issuance of 1,000,000 shares of our Common Stock in a registered direct offering for gross proceeds of approximately $6,200,000 (see "Liquidity and Capital Resources - Financing Activities within this MD&A for a discussion of this direct offering, including the planned usage of the proceeds). We continue to assess the need in reducing operating costs during this volatile time, which may include curtailing certain capital expenditures and eliminating non-essential expenditures. Based on our current projection, we believe that we will be able to meet our current covenant requirements under our loan agreement for the next twelve months, however, such may not be the case due to, among other things, the uncertainty of COVID on our operations and continued delays in waste shipments as discussed above.





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Overview

Our overall revenue decreased $14,375,000 or 47.6% to $15,797,000 for the three months ended September 30, 2021 from $30,172,000 for the corresponding period of 2020. The revenue decrease was entirely within our Services Segment where revenue decreased by approximately $16,202,000 or 70.1% to $6,904,000 for the three months ended September 30, 2021 from $23,106,000 for the corresponding period of 2020 primarily due to delays in contract awards resulting primarily from the impact of COVID-19 which was further exacerbated by the completion of a certain large project in the Services Segment in the second quarter and the near completion of a certain other project. However, as disclosed above, since the end of the second quarter of 2021, Our Services Segment has been awarded a number of new contracts, including a fixed price contract awarded to us at the end of the third quarter of 2021 with a value of approximately $40,000,000 for the decommissioning of a navy ship over a period of approximately twenty-four months. We expect to see ramp-up of activities from these new projects starting in the fourth quarter of 2021. Revenue within our Treatment Segment increased by approximately $1,827,000 for the third quarter of 2021 primarily due to revenue recognized in the amount of approximately $1,286,000 from a request for equitable adjustment ("REA") under a government waste generator contract. As previously disclosed, our Treatment Segment's revenue has been negatively impacted by continued waste shipment delays from certain customers since the latter part of the first quarter of 2020 at the start of the pandemic. However, we are beginning to see a gradual return in waste receipts from these customers starting in the latter part of the third quarter of 2021. Gross profit decreased $2,526,000 or 53.2% primarily due to the revenue decrease in the Services Segment. Selling, General, and Administrative ("SG&A") expenses increased slightly by approximately $40,000 or 1.2% for the three months ended September 30, 2021 as compared to the corresponding period of 2020.

Our overall revenue decreased $22,004,000 or 28.5% to $55,075,000 for the nine months ended September 30, 2021 from $77,079,000 for the corresponding period of 2020. The decrease was primarily within our Services Segment where revenue decreased by $21,629,000 or 41.1% to $30,981,000 for the nine months ended September 30, 2021 from $52,610,000 for the corresponding period of 2020 primarily due to delays in procurement actions and contract awards resulting primarily from the impact of COVID-19. Additionally, as discussed above, the completion of a certain large project in the Services Segment in the second quarter of 2021 and the near completion of a certain other project exacerbated the decrease in revenue. Treatment Segment revenue decreased by $375,000 or 1.5% to $24,094,000 for the nine months ended September 30, 2021 from $24,469,000 for the corresponding period of 2020 primarily due to continued delays in waste shipments from certain customers as discussed above. Total gross profit decreased $7,154,000 or 56.3% for the nine months ended September 30, 2021 as compared to the corresponding period of 2020. Total SG&A expenses increased $615,000 or 6.9% for the nine months ended September 30, 2021 as compared to the corresponding period of 2020.





Business Environment

Our Treatment and Services Segments' business continues to be heavily dependent on services that we provide to governmental clients, primarily as subcontractors for others who are prime contractors to government entities or directly as the prime contractor. We believe demand for our services will continue to be subject to fluctuations due to a variety of factors beyond our control, including, without limitation, the economic conditions, the manner in which the applicable government will be required to spend funding to remediate various sites, and/or the impact resulting from COVID-19 as discussed above. In addition, our governmental contracts and subcontracts relating to activities at governmental sites in the United States are generally subject to termination or renegotiation on 30 days' notice at the government's option, and our governmental contracts/task orders with the Canadian government authorities allow the authorities to terminate the contract/task orders at any time for convenience. Significant reductions in the level of governmental funding or specifically mandated levels for different programs that are important to our business could have a material adverse impact on our business, financial position, results of operations and cash flows. As previously disclosed, our Medical Segment has not generated any revenues and has substantially reduced its R&D costs and activities due to the need for capital to fund such activities. We anticipate that our Medical Segment will not resume full R&D activities until it obtains the necessary funding through obtaining its own credit facility or additional equity raise or obtaining new partners willing to fund its R&D activities. If the Medical Segment is unable to raise the necessary capital, the Medical Segment could be required to further reduce, delay or eliminate its R&D program.





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We are continually reviewing methods to raise additional capital to supplement our liquidity requirements, when needed, and reducing our operating costs. We continue to aggressively bid on various contracts, including potential contracts within the international markets.





Results of Operations

The reporting of financial results and pertinent discussions are tailored to our three reportable segments: The Treatment, Services, and Medical Segments. Our Medical Segment has not generated any revenue and all costs incurred are included within R&D.

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