Perma-Fix Canada Inc. received a Notice of Termination from Canadian Nuclear Laboratories, LTD. on a Task Order Agreement that PF Canada entered into with CNL in May 2019 for remediation work within Ontario, Canada. The NOT was received after most of the work under the Agreement was completed. CNL may terminate the Agreement at any time for convenience. PF Canada currently has approximately $1.6 million in unpaid receivables and unbilled costs due from CNL as a result of work performed under the Agreement. Additionally, CNL has approximately $845,000 in contractual holdback under the Agreement that is payable to PF Canada. CNL has previously established a bond of approximately $1.9 million to cover certain issue raised in connection with the Agreement. Under the Agreement, CNL may assert a claim against PF Canada to set off certain costs and expenses incurred by CNL in connection with the termination of the Agreement. PF Canada is currently in discussions with CNL on payment of the amounts due to PF Canada under the Agreement.