# EDGAR Filing Document

**Accession Number:** 0000914122
**File Stem:** 0001437749-25-029017
**Filing Date:** 2025-9
**Character Count:** 192324
**Document Hash:** 4efc4d23a7ccbf7582994a7697d4784a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-25-029017.hdr.sgml**: 20250915

**ACCESSION NUMBER**: 0001437749-25-029017

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 74

**CONFORMED PERIOD OF REPORT**: 20250731

**FILED AS OF DATE**: 20250915

**DATE AS OF CHANGE**: 20250915

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Perma-Pipe International Holdings, Inc.
- **CENTRAL INDEX KEY:** 0000914122
- **STANDARD INDUSTRIAL CLASSIFICATION:** INDUSTRIAL & COMMERCIAL FANS & BLOWERS & AIR PURIFYING EQUIP [3564]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 363922969
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0131

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-32530
- **FILM NUMBER:** 251313359

**BUSINESS ADDRESS:**
- **STREET 1:** 25025 I-45
- **STREET 2:** SUITE 200
- **CITY:** THE WOODLANDS
- **STATE:** TX
- **ZIP:** 77380
- **BUSINESS PHONE:** 2815986222

**MAIL ADDRESS:**
- **STREET 1:** 25025 I-45
- **STREET 2:** SUITE 200
- **CITY:** THE WOODLANDS
- **STATE:** TX
- **ZIP:** 77380

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MFRI INC
- **DATE OF NAME CHANGE:** 19970402

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MIDWESCO FILTER RESOURCES INC
- **DATE OF NAME CHANGE:** 19970402

?xml version='1.0' encoding='ASCII'? ppih20250731_10q.htm

[**Table of Contents**](#toc)

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 10-Q**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the quarterly period ended July 31, 2025

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the transition period from ________ to ________

**Commission File No. 001-32530**

**Perma-Pipe International Holdings, Inc.**

(Exact name of registrant as specified in its charter)

![logo.jpg](logo.jpg)

---

| | |
|:---|:---|
| **Delaware** | **36-3922969** |
| **(State or other jurisdiction of incorporation or organization)** | **(I.R.S. Employer Identification No.)** |
| **25025 Interstate 45, Suite 200, The Woodlands, Texas** | **77380** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**(847) 966-1000**

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| <u>Title of each class</u> | <u>Trading Symbol(s)</u> | <u>Name of each exchange on which registered</u> |
| Common Stock, $.01 par value per share | PPIH | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☒ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

On September 15, 2025, there were 8,094,045 shares of the registrant's common stock outstanding.

------

[**Table of Contents**](#toc)

**Perma-Pipe International Holdings, Inc.**

**FORM 10-Q**

**For the fiscal quarter ended July 31, 2025**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **Item** |  | **Page** |
| Part I | [FINANCIAL INFORMATION](#parti) |  |
| Item 1. | [Financial Statements](#item1) |  |
|  | [Consolidated Statements of Operations (Unaudited) for the Three and Six Months Ended July 31, 2025 and 2024](#item1) | [2](#parti) |
|  | [Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Six Months Ended July 31, 2025 and 2024](#comploss) | [3](#comploss) |
|  | [Consolidated Balance Sheets as of July 31, 2025 (Unaudited) and January 31, 2025](#balance) | [4](#balance) |
|  | [Consolidated Statements of Stockholders' Equity (Unaudited) for the Three and Six Months Ended July 31, 2025 and 2024](#soe) | [5](#soe) |
|  | [Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended July 31, 2025 and 2024](#cashflows) | [6](#cashflows) |
|  | [Notes to Consolidated Financial Statements (Unaudited)](#notes) | [6](#notes) |
| Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#mnda) | [21](#mnda) |
| Item 4. | [Controls and Procedures](#item4) | [29](#item4) |
| Part II | [OTHER INFORMATION](#partii) |  |
| Item 5. | [Other Information](#item5) | [30](#item5) |
| Item 6. | [Exhibits](#item6) | [30](#item6) |
| [SIGNATURES](#signatures) | [SIGNATURES](#signatures) | [31](#signatures) |

---

------

[**Table of Contents**](#toc)

**PART I FINANCIAL INFORMATION**

---

| | |
|:---|:---|
| **Item 1.**  | **Financial Statements** |

---

**PERMA-PIPE INTERNATIONAL HOLDINGS, INC.** 

**CONSOLIDATED STATEMENTS OF OPERATIONS**

***(In thousands, except per share data)***

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Three Months Ended July 31,*** | ***Three Months Ended July 31,*** | ***Six Months Ended July 31,*** | ***Six Months Ended July 31,*** |
|  | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| Net sales | $47902 | $37513 | $94648 | $71834 |
| Cost of sales | 33479 | 24039 | 63501 | 47843 |
| Gross profit | 14423 | 13474 | 31147 | 23991 |
| Operating expenses |  |  |  |  |
| General and administrative expenses | 10033 | 5979 | 17781 | 12128 |
| Selling expenses | 1203 | 1353 | 2289 | 2588 |
| Total operating expenses | 11236 | 7332 | 20070 | 14716 |
| Income from operations | 3187 | 6142 | 11077 | 9275 |
| Interest expense | 415 | 514 | 821 | 1021 |
| Other expense | 21 | 38 | 70 | 105 |
| Income before income taxes | 2751 | 5590 | 10186 | 8149 |
| Income tax expense | 1489 | 1306 | 3070 | 2076 |
| Net income | 1262 | 4284 | 7116 | 6073 |
| Less: Net income attributable to non-controlling interest | 411 | 995 | 1313 | 1341 |
| Net income attributable to common stock | $851 | $3289 | $5803 | $4732 |
| Weighted average common shares outstanding |  |  |  |  |
| Basic | 8007 | 7954 | 7995 | 7930 |
| Diluted | 8133 | 8125 | 8108 | 7987 |
| Earnings per share attributable to common stock |  |  |  |  |
| Basic | $0.11 | $0.41 | $0.73 | $0.60 |
| Diluted | $0.10 | $0.40 | $0.72 | $0.59 |

---

See accompanying notes to consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2

------

[**Table of Contents**](#toc)

**PERMA-PIPE INTERNATIONAL HOLDINGS, INC.** 

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME**

***(In thousands)***

 **(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Three Months Ended July 31,*** | ***Three Months Ended July 31,*** | ***Six Months Ended July 31,*** | ***Six Months Ended July 31,*** |
|  | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| Net income | $1262 | $4284 | $7116 | $6073 |
| Other comprehensive income |  |  |  |  |
| Foreign currency translation adjustments, net of tax | (111) | (192) | 811 | (1607) |
| Comprehensive income | $1151 | $4092 | $7927 | $4466 |
| Less: Comprehensive income attributable to non-controlling interests | 411 | 995 | 1313 | 1341 |
| Total comprehensive income attributable to common stock | $740 | $3097 | $6614 | $3125 |

---

See accompanying notes to consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3

------

[**Table of Contents**](#toc)

**PERMA-PIPE INTERNATIONAL HOLDINGS, INC.** 

**CONSOLIDATED BALANCE SHEETS**

***(In thousands, except per share data)***

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | ***July 31, 2025*** | ***January 31, 2025*** |
| **ASSETS** |  |  |
| Current assets |  |  |
| Cash and cash equivalents | $17258 | $15716 |
| Restricted cash | 1444 | 1401 |
| Trade accounts receivable, less allowance for credit losses of $1,064 at July 31, 2025 and $703 at January 31, 2025 | 47206 | 43148 |
| Inventories | 15885 | 16622 |
| Prepaid expenses and other current assets | 12312 | 10045 |
| &nbsp;&nbsp;&nbsp; Unbilled accounts receivable | 27672 | 18936 |
| Costs and estimated earnings in excess of billings on uncompleted contracts | 3569 | 2934 |
| Total current assets | 125346 | 108802 |
| Long-term assets |  |  |
| &nbsp;&nbsp;&nbsp; Property, plant and equipment, net of accumulated depreciation | 39267 | 35365 |
| Operating lease right-of-use asset | 11862 | 8199 |
| Deferred tax assets | 6218 | 6639 |
| Goodwill | 2154 | 2057 |
| Other long-term assets | 4143 | 4179 |
| Total long-term assets | 63644 | 56439 |
| Total assets | $188990 | $165241 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities |  |  |
| Trade accounts payable | $23069 | $23691 |
| Accrued compensation and payroll taxes | 1655 | 1388 |
| Commissions and management incentives payable | 5551 | 5840 |
| Revolving line - North America | 9732 | 6765 |
| Current maturities of long-term debt | 6358 | 2481 |
| Customers' deposits | 5371 | 2506 |
| Operating lease liability short-term | 1383 | 1071 |
| Other accrued liabilities | 6198 | 6697 |
| Billings in excess of costs and estimated earnings on uncompleted contracts | 1641 | 1249 |
| Income taxes payable | 3104 | 2375 |
| Loan payable to GIG | 2753 |  |
| Total current liabilities | 66815 | 54063 |
| Long-term liabilities |  |  |
| Long-term debt, less current maturities | 3711 | 3669 |
| Long-term finance obligations | 8662 | 8798 |
| Deferred compensation liabilities | 2040 | 1689 |
| Deferred tax liabilities | 1373 | 1320 |
| Operating lease liability long-term | 11425 | 7713 |
| &nbsp;&nbsp;&nbsp; Loan payable to GIG |  | 2753 |
| Other long-term liabilities | 2535 | 2131 |
| Total long-term liabilities | 29746 | 28073 |
| Commitments and contingencies |  |  |
| Non-controlling interest | 12225 | 10967 |
| Stockholders' equity |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock, $.01 par value, authorized 50,000 shares; 8,044 issued and outstanding at July 31, 2025 and 7,983 at January 31, 2025 | 80 | 80 |
| Additional paid-in capital | 61603 | 60151 |
| Retained earnings | 25907 | 20104 |
| Accumulated other comprehensive loss | (7386) | (8197) |
| Total stockholders' equity | 80204 | 72138 |
| Total liabilities and stockholders' equity | $188990 | $165241 |

---

See accompanying notes to consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4

------

[**Table of Contents**](#toc)

**PERMA-PIPE INTERNATIONAL HOLDINGS, INC.** 

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY** 

***(In thousands, except share data)***

**(Unaudited)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | ***Common Stock*** | ***Additional Paid-in Capital*** | ***Retained Earnings*** | ***Treasury Stock*** | ***Accumulated Other Comprehensive Loss*** | ***Total Stockholders' Equity*** |
| Total stockholders' equity at January 31, 2025 | $80 | $60151 | $20104 | $– $| (8197) | $72138 |
| Net income attributable to common stock |  |  | 4952 | – |  | 4952 |
| Stock-based compensation expense |  | 224 |  | – |  | 224 |
| Amount attributable to non-controlling interest |  | (369) |  | – |  | (369) |
| Foreign currency translation adjustment |  |  |  | – | 922 | 922 |
| Total stockholders' equity at April 30, 2025 | $80 | $60006 | $25056 | $– $| (7275) | $77867 |
| Net income attributable to common stock |  |  | 851 | – |  | 851 |
| Common stock issued under stock plans, net of shares used for tax withholding |  | (295) |  | – |  | (295) |
| Stock-based compensation expense |  | 1468 |  | – |  | 1468 |
| Amount attributable to non-controlling interest |  | 424 |  | – |  | 424 |
| Foreign currency translation adjustment |  |  |  | – | (111) | (111) |
| Total stockholders' equity at July 31, 2025 | $80 | $61603 | $25907 | $– $| (7386) | $80204 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | ***Common Stock*** | ***Additional Paid-in Capital*** | ***Retained Earnings*** | ***Treasury Stock*** | ***Accumulated Other Comprehensive Loss*** | ***Total Stockholders' Equity*** |
| Total stockholders' equity at January 31, 2024 | $80 | $60063 | $12088 | $(968) | $(5551) | $65712 |
| Net income attributable to common stock |  |  | 1443 |  |  | 1443 |
| Stock-based compensation expense |  | 228 |  |  |  | 228 |
| Amount attributable to non-controlling interest |  | (421) |  |  |  | (421) |
| Foreign currency translation adjustment |  |  |  |  | (1415) | (1415) |
| Total stockholders' equity at April 30, 2024 | $80 | $59870 | $13531 | $(968) | $(6966) | $65547 |
| Net income attributable to common stock |  |  | 3289 |  |  | 3289 |
| Common stock issued under stock plans, net of shares used for tax withholding | 1 | (210) |  |  |  | (209) |
| Stock-based compensation expense |  | 177 |  |  |  | 177 |
| Amount attributable to non-controlling interest |  | (29) |  |  |  | (29) |
| Foreign currency translation adjustment |  |  |  |  | (192) | (192) |
| Total stockholders' equity at July 31, 2024 | $81 | $59808 | $16820 | $(968) | $(7158) | $68583 |

---

---

| | | |
|:---|:---|:---|
| **Shares** | ***2025*** | ***2024*** |
| Balances at beginning of year | 7982568 | 8016781 |
| Treasury stock retired |  | (112015) |
| Shares issued, net of shares used for tax withholding | 61115 | 77802 |
| Balances at period end | 8043683 | 7982568 |

---

See accompanying notes to consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5

------

[**Table of Contents**](#toc)

**PERMA-PIPE INTERNATIONAL HOLDINGS, INC.** 

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

***(In thousands)***

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | ***Six Months Ended July 31,*** | ***Six Months Ended July 31,*** |
|  | ***2025*** | ***2024*** |
| **Operating activities** |  |  |
| Net income | $7116 | $6073 |
| Adjustments to reconcile net income to net cash (used in) provided by operating activities |  |  |
| Depreciation and amortization | 1894 | 1717 |
| Deferred tax expense | 428 | 203 |
| Stock-based compensation expense | 1692 | 396 |
| Provision on uncollectible accounts | 361 | 43 |
| Changes in operating assets and liabilities |  |  |
| Accounts receivable | (4024) | 6454 |
| Inventories | 493 | (809) |
| Costs and estimated earnings in excess of billings on uncompleted contracts | (243) | 221 |
| Accounts payable | (2607) | (4487) |
| Accrued compensation and payroll taxes | (47) | (48) |
| Customers' deposits | 2861 | 1810 |
| Income taxes payable | 19 | (789) |
| Prepaid expenses and other current assets | (1834) | (2774) |
| Unbilled accounts receivable | (8712) | (1857) |
| Other assets and liabilities | 1295 | (3409) |
| Net cash (used in) provided by operating activities | (1308) | 2744 |
| **Investing activities** |  |  |
| Capital expenditures | (3478) | (1233) |
| Net cash used in investing activities | (3478) | (1233) |
| **Financing activities** |  |  |
| Proceeds from revolving credit lines | 47265 | 39540 |
| Payments of debt on revolving credit lines | (40455) | (36887) |
| Payments of principal on finance obligations | (112) | (91) |
| Payments of other debt | (111) | (117) |
| Decrease in drafts payable | 6 | 8 |
| Payments on finance lease obligations | (17) | (16) |
| Stock options exercised and taxes paid related to restricted shares vested | (295) | (201) |
| Net cash provided by financing activities | 6281 | 2236 |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 90 | (106) |
| Net increase in cash, cash equivalents and restricted cash | 1585 | 3641 |
| Cash, cash equivalents and restricted cash - beginning of period | 17117 | 7240 |
| Cash, cash equivalents and restricted cash - end of period | $18702 | $10881 |
| **Supplemental cash flow information** |  |  |
| Cash interest paid | $801 | $1000 |
| &nbsp;&nbsp;&nbsp; Cash income taxes paid | $1769 | $2436 |
| Fixed assets acquired - non-cash | $1669 | $- |

---

See accompanying notes to consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6

------

[**Table of Contents**](#toc)

**PERMA-PIPE INTERNATIONAL HOLDINGS, INC.** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Tabular amounts in thousands, except per share data, or unless otherwise specified)**

**(Unaudited)**

**Note *1* - Basis of presentation**

The interim consolidated financial statements of Perma-Pipe International Holdings, Inc., and subsidiaries (collectively, "PPIH", "Company", or "Registrant") are unaudited, but include all adjustments that the Company's management considers necessary to fairly state the financial position and results of operations for the periods presented. These adjustments consist of normal recurring adjustments. Certain information and footnote disclosures have been omitted pursuant to Securities and Exchange Commission ("SEC") rules and regulations. The consolidated balance sheet as of *January 31, 2025* is derived from the audited consolidated balance sheet as of that date. The results of operations for any interim period are *not* necessarily indicative of future or annual results. Interim financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company's latest Annual Report on Form *10*-K. The Company's fiscal year ends on *January 31.* Years and balances described as *2025* and *2024* are for the fiscal year ending *January 31, 2026* and for the fiscal year ended *January 31, 2025*, respectively.

**Note *2* - Business segment reporting**

The Company operates under one segment: Piping Systems. The results are presented on a consolidated basis to the Chief Executive Officer who serves as the chief operating decision maker ("CODM"). The CODM regularly reviews consolidated revenues, significant expenses, and consolidated net income attributable to common stock to make operating decisions and assess performance. The CODM uses this information in making company-wide decisions when determining how to allocate resources.

Significant expenses represent amounts that are regularly provided to the CODM and included in consolidated net income attributable to common stock.

The following table summarizes the Company's revenues, net income attributable to common stock, and significant expenses:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Three Months Ended July 31,*** | ***Three Months Ended July 31,*** | ***Six Months Ended July 31,*** | ***Six Months Ended July 31,*** |
|  | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| Net sales | $47902 | $37513 | $94648 | $71834 |
| Cost of sales |  |  |  |  |
| Labor | 6904 | 5312 | 13193 | 10550 |
| Materials | 18947 | 12719 | 36363 | 25902 |
| Depreciation and amortization | 860 | 738 | 1710 | 1472 |
| Other costs of sales | 6768 | 5270 | 12235 | 9919 |
| Total cost of sales | 33479 | 24039 | 63501 | 47843 |
| Operating expenses |  |  |  |  |
| Salaries and wages | 6928 | 4284 | 11145 | 7658 |
| Depreciation and amortization | 95 | 142 | 184 | 245 |
| Other general and administrative expense | 3010 | 1553 | 6452 | 4225 |
| General and administrative expenses | 10033 | 5979 | 17781 | 12128 |
| Selling expense | 1203 | 1353 | 2289 | 2588 |
| Total operating expenses | 11236 | 7332 | 20070 | 14716 |
| Income from operations | 3187 | 6142 | 11077 | 9275 |
| Interest expense | 415 | 514 | 821 | 1021 |
| Other expense | 21 | 38 | 70 | 105 |
| Income before income tax | 2751 | 5590 | 10186 | 8149 |
| Income tax expense | 1489 | 1306 | 3070 | 2076 |
| Net income | 1262 | 4284 | 7116 | 6073 |
| Less: Net income attributable to non-controlling interest | 411 | 995 | 1313 | 1341 |
| Net income attributable to common stock | $851 | $3289 | $5803 | $4732 |

---

The CODM regularly reviews asset information by our reporting segment in a manner that is consistent with the presentation on the Company's accompanying consolidated balance sheets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *7*

------

[**Table of Contents**](#toc)

**Note *3* - Accounts receivable**

The majority of the Company's accounts receivable are due from geographically dispersed contractors and manufacturing companies. Credit is extended based on an evaluation of a customer's financial condition. In the United States, collateral is *not* generally required. In the United Arab Emirates ("U.A.E."), Saudi Arabia, Egypt and India, letters of credit are usually obtained for significant orders. Accounts receivable are due within various time periods specified in the terms applicable to the specific customer and are stated as amounts due from customers net of an allowance for claims and credit losses. Standard payment terms are generally net *30* to *60* days. The Company maintains an allowance for credit losses for accounts receivable. The assessment of the allowance for credit losses involves certain judgments and estimates. Management estimates the allowance balance using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. The Company *may* also establish an allowance for credit losses for specific receivables when it is probable that a specific receivable will *not* be collected and the loss can be reasonably estimated. Past due trade accounts receivable balances are written off when the Company's collection efforts have been unsuccessful in collecting the amount due and the amount is deemed uncollectible. The write off is recorded against the allowance for credit losses.

For the *three* and *six* months ended *July 31, 2025* and *2024*, no individual customer accounted for more than *10%* of the Company's consolidated net sales.

As of *July 31, 2025* and *January 31, 2025*, no individual customer accounted for more than *10%* of the Company's accounts receivable.

**Note *4* - Revenue recognition** 

The Company accounts for its revenues under Accounting Standards Codification ("ASC") *606, Revenue from Contracts with Customers*.

***Revenue from contracts with customers***

The Company defines a contract as an agreement that has approval and commitment from both parties, defined rights and identifiable payment terms, which ensures the contract has commercial substance and that collectability is reasonably assured.

The Company's standard revenue transactions are classified into *two* main categories:

*1*) Specialty Piping Systems and Coating - which include all bundled products in which the Company engineers, and manufactures pre-insulated specialty piping systems mainly relating to the district heating and cooling and oil & gas markets.

*2*) Products - which include cables, leak detection products, heat trace products, material/goods *not* bundled with piping or flowline systems, and field services *not* bundled into a project contract.

In accordance with ASC *606*-*10*-*25*-*27* through *29,* the Company recognizes specialty piping and coating systems revenue over time as the manufacturing process progresses because *one* of the following conditions exists:

*1*) the customer owns the material that is being coated, so the customer controls the asset and thus the work-in-process; or

*2*) the customer controls the work-in-process due to the custom nature of the pre-insulated, fabricated system being manufactured, which has *no* alternative future use, and there is a right to payment for work performed to date plus profit margin.

Products revenue is recognized when goods are shipped or services are performed (ASC *606*-*10*-*25*-*30*).

A breakdown of the Company's revenues by revenue class for the *three* and *six* months ended *July 31, 2025* and *2024* are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | ***Three Months Ended July 31,*** | ***Three Months Ended July 31,*** | ***Three Months Ended July 31,*** | ***Three Months Ended July 31,*** | ***Six Months Ended July 31,*** | ***Six Months Ended July 31,*** | ***Six Months Ended July 31,*** | ***Six Months Ended July 31,*** |
|  | ***2025*** | ***2025*** | ***2024*** | ***2024*** | ***2025*** | ***2025*** | ***2024*** | ***2024*** |
|  | ***Sales*** | ***% of Total*** | ***Sales*** | ***% of Total*** | ***Sales*** | ***% of Total*** | ***Sales*** | ***% of Total*** |
| **Products** | $3451 | 7% | $2795 | 7% | $7091 | 8% | $6048 | 8% |
| **Specialty Piping Systems and Coating** |  |  |  |  |  |  |  |  |
| Revenue recognized under input method | 12965 | 27% | 12613 | 34% | 25025 | 26% | 22752 | 32% |
| Revenue recognized under output method | 31486 | 66% | 22105 | 59% | 62532 | 66% | 43034 | 60% |
| **Total** | $47902 | 100% | $37513 | 100% | $94648 | 100% | $71834 | 100% |

---

The input method as noted in ASC *606*-*10*-*55*-*20* is used by certain operating entities to measure revenue by the costs incurred to date relative to the estimated costs to satisfy the contract over time. Generally, these contracts are considered a single performance obligation satisfied over time and due to the custom nature of the goods and services, the "over time" method is the most faithful depiction of the Company's performance as it measures the value of the goods and services transferred to the customer. Costs include all material, labor, and other direct costs incurred to satisfy the performance obligations of the contract. Revenue recognition begins when projects costs are incurred.

The output method as noted in ASC *606*-*10*-*55*-*17* is used by all other operating entities to measure revenue by the direct measurement of the outputs produced relative to the remaining goods promised under the contract. Due to the types of end customers, generally these contracts require formal inspection protocols or specific export documentation for units produced, or produced and shipped, therefore, the output method is the most faithful depiction of the Company's performance under the contract. Depending on the conditions of the contract, revenue *may* be recognized based on units produced, inspected and held by the Company prior to shipment or on units produced, inspected and shipped.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *8*

------

[**Table of Contents**](#toc)

***Contract assets and liabilities***

Contract assets represent revenue recognized in excess of amounts billed for work in progress for which the Company has a valid contract and an enforceable right to payment for work completed. Contract liabilities represent billings in excess of costs for work in progress for which the Company has a valid contract and an enforceable right to payment for work completed. Both customer billings and the satisfaction (or partial satisfaction) of the performance obligation(s) occur throughout the manufacturing process and impact the period end balances in these accounts. In addition, contract assets include receivables or amounts that are billable beyond the passage of time.

The following table shows the reconciliation of costs in excess of billings and billings in excess of costs:

---

| | | |
|:---|:---|:---|
|  | ***July 31, 2025*** | ***January 31, 2025*** |
| Costs incurred on uncompleted contracts | $16079 | $11621 |
| Estimated earnings | 10842 | 9366 |
| Earned revenue | 26921 | 20987 |
| &nbsp;&nbsp;&nbsp; Less billings to date | 24993 | 19302 |
| Costs in excess of billings, net | $1928 | $1685 |
| **Balance sheet classification** |  |  |
| Contract assets: Costs and estimated earnings in excess of billings on uncompleted contracts | $3569 | $2934 |
| Contract liabilities: Billings in excess of costs and estimated earnings on uncompleted contracts | (1641) | (1249) |
| Costs in excess of billings, net | $1928 | $1685 |

---

The Company anticipates that substantially all costs incurred on uncompleted contracts as of *July 31, 2025* will be billed and collected within one year.

***Unbilled accounts receivable***

The Company has recorded $27.7 million and $18.9 million of unbilled accounts receivable on the consolidated balance sheets as of *July 31, 2025* and *January 31, 2025*, respectively, from revenues generated by certain of its subsidiaries. The Company has fulfilled all performance obligations and has recorded revenue under the respective contracts. The deliverables under these contracts have been accepted by the customer and billings will be made once the customer takes possession of or arranges shipping for the products. The Company anticipates that substantially all of the amounts included in unbilled accounts receivable as of *July 31, 2025* will be billed within *one* year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *9*

------

[**Table of Contents**](#toc)

**Note *5* - Inventories**

Inventories are stated at the lower of cost or net realizable value. Cost is determined using the *first*-in, *first*-out method for all inventories.

---

| | | |
|:---|:---|:---|
|  | ***July 31, 2025*** | ***January 31, 2025*** |
| Raw materials | $16164 | $16374 |
| Work in process | 437 | 745 |
| Finished goods | 298 | 366 |
| Subtotal | 16899 | 17485 |
| Less allowance | 1014 | 863 |
| Inventories | $15885 | $16622 |

---

The Company conducts periodic reviews of its inventory and records allowances for slow moving and obsolete items to reflect their net realizable value, which is primarily attributable to finished goods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *10*

------

[**Table of Contents**](#toc)

**Note *6* - Income taxes** 

The determination of the consolidated provision for income taxes, deferred tax assets and liabilities and related valuation allowances requires management to make judgments and estimates. As a company with subsidiaries in foreign jurisdictions, the process of calculating income taxes involves estimating current tax obligations and exposures in each jurisdiction as well as making judgments regarding the future recoverability of deferred tax assets. The relative proportion of taxable income earned domestically versus internationally can fluctuate significantly from period to period. Changes in the estimated level of annual pre-tax income, tax laws and the results of tax audits can affect the overall effective income tax rate, which impacts the level of income tax expense and net income. Judgments and estimates related to the Company's projections and assumptions are inherently uncertain; therefore, actual results could differ materially from projections.

The Company's worldwide effective tax rates ("ETR") for the *three* months ended *July 31, 2025* and *2024* were 54% and 23%, respectively. The Company's ETR was 30% and 25% for the *six* months ended *July 31, 2025* and *2024*, respectively. The change in the ETR is due to the mix of income and loss in various jurisdictions, primarily an increase in income in UAE, and a tax deduction limitation that was attributable to an acceleration of certain executive compensation.

The Company expects that future distributions from foreign subsidiaries will *not* be subject to incremental U.S. federal tax as they will be excludible from U.S. taxable income either as remittances of previously taxed earnings and profits or eligible for a full dividends received deduction. Current and future earnings in the Company's subsidiaries in Canada and Egypt are *not* permanently reinvested. The earnings from these subsidiaries are subject to tax in their local jurisdiction and withholding taxes in these jurisdictions are considered. As such, the Company has accrued a liability of $1.0 million as of *July 31, 2025* related to these taxes.

On *July 4, 2025,* new tax legislation was signed into law (known as the "One Big Beautiful Bill Act" or "OBBBA") which makes permanent many of the tax provisions enacted in *2017* as part of the Tax Cuts and Jobs Act that were set to expire at the end of *2025.* In addition, the OBBBA makes changes to certain U.S. corporate tax provisions, but many are generally *not* effective until *2026.* Due to the timing of enactment within our current period end, the Company has undergone efforts to reasonably estimate the impact of the Act on our condensed consolidated financial statements and there were *no* material impacts to the financial statements. We will continue to evaluate the full impact of these legislative changes as more guidance becomes available.

**Note *7* - Goodwill**

All identifiable goodwill as of *July 31, 2025* and *January 31, 2025*, is attributable to the purchase of the remaining 50% interest in Perma-Pipe Canada, Ltd., which occurred in *2016.*

The Company performs an impairment assessment of goodwill annually as of *January 31,* or more frequently if triggering events occur that could indicate that more likely than *not* that the fair value of the reporting unit did *not* exceed its carrying value, resulting in an impairment.

The following table provides a reconciliation of changes in the carrying amount of goodwill:

---

| | | | |
|:---|:---|:---|:---|
|  | ***January 31, 2025*** | ***Foreign exchange change effect*** | ***July 31, 2025*** |
| Goodwill | $2057 | $97 | $2154 |

---

There were *no* triggering events identified during the *three* and *six* months ended *July 31, 2025*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *11*

------

[**Table of Contents**](#toc)

**Note *8* - Stock-based compensation** 

The Company has prior incentive plans under which previously granted awards remain outstanding, but under which *no* new awards *may* be granted, including the Company's *2021* Omnibus Stock Incentive Plan, which expired in *May 2024.* At *July 31, 2025*, the Company had reserved a total of 197,026 shares for grants and issuances under these incentive plans, including issuances pursuant to unvested or unexercised prior awards.

The Company's *2024* Omnibus Stock Incentive Plan, dated *May 28, 2024,* was approved by the Company's stockholders in *July 2024 ("2024* Plan"). The *2024* Plan will expire in *July 2027.* The *2024* Plan authorizes awards to officers, employees, consultants, and independent directors. The *2024* Plan provides for the grant of deferred shares, non-qualified stock options, incentive stock options, restricted shares, restricted stock units, and performance-based restricted stock units intended to qualify under section *422* of the Internal Revenue Code.

Grants were made in connection with the *2024* Plan and the prior incentive plans to employees, officers, and independent directors, as further described below.

***Stock-based compensation expense***

The Company has granted stock-based compensation awards to eligible employees, officers and independent directors. The Company recognized the following stock-based compensation expense for the periods presented:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Three Months Ended July 31,*** | ***Three Months Ended July 31,*** | ***Six Months Ended July 31,*** | ***Six Months Ended July 31,*** |
|  | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| Restricted stock-based compensation expense | $1468 | $177 | $1692 | $396 |

---

***Stock options***

The Company did not grant any stock options during the *three* or *six* months ended *July 31, 2025*. The following table summarizes the Company's stock option activity:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Options*** | ***Weighted Average Exercise Price (Per share)*** | ***Weighted Average Remaining Contractual Term (In years)*** | ***Aggregate Intrinsic Value*** |
| Outstanding at January 31, 2025 | 1 | $6.85 | 0.8 | $4 |
| Exercised |  |  | *-* | *-* |
| Expired or forfeited |  | 6.38 | *-* | *-* |
| Outstanding and exercisable at July 31, 2025 | 1 | $7.33 | 0.8 | $2 |

---

There was no vesting, expiration or forfeiture of previously unvested stock options during the *six* months ended *July 31, 2025*. In addition, there were no remaining unvested stock options outstanding, and therefore no unrecognized compensation expense related to unvested stock options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *12*

------

[**Table of Contents**](#toc)

***Restricted stock***

The following table summarizes the Company's restricted stock activity for the *six* months ended *July 31, 2025*:

---

| | | | |
|:---|:---|:---|:---|
|  | ***Restricted Shares*** | ***Weighted Average Price (Per share)*** | ***Aggregate Intrinsic Value*** |
| Outstanding at January 31, 2025 | 230 | $9.05 | $2080 |
| Granted | 90 | 21.61 |  |
| Vested and issued | (111) | 10.99 |  |
| Forfeited or retired for taxes | (22) | 17.41 |  |
| Outstanding at July 31, 2025 | 187 | $17.48 | $2228 |

---

As of *July 31, 2025*, there was $2.1 million of unrecognized compensation expense related to unvested restricted stock granted under the plans. These costs are expected to be recognized over a weighted average period of 2.3 years.

**Note *9* - Earnings per share**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Three Months Ended July 31,*** | ***Three Months Ended July 31,*** | ***Six Months Ended July 31,*** | ***Six Months Ended July 31,*** |
|  | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| Basic weighted average common shares outstanding at July 31, 2025 | 8007 | 7954 | 7995 | 7930 |
| Dilutive effect of equity compensation plans | 126 | 171 | 113 | 57 |
| Weighted average common shares outstanding assuming full dilution | 8133 | 8125 | 8108 | 7987 |
| Stock options and restricted stock not included in the computation of diluted earnings per share of common stock because the option exercise prices or grant date prices exceeded the average market prices of the common shares |  |  |  | 114 |
| Stock options and restricted stock with exercise prices or grant date prices below the average market prices | 126 | 171 | 113 | 57 |
| Net income attributable to common stock | $851 | $3289 | $5803 | $4732 |
| Earnings per share attributable to common stock |  |  |  |  |
| Basic | $0.11 | $0.41 | $0.73 | $0.60 |
| Diluted | $0.10 | $0.40 | $0.72 | $0.59 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *13*

------

[**Table of Contents**](#toc)

**Note *10* - Debt**

Debt totaled $31.3 million and $24.5 million at *July 31, 2025* and *January 31, 2025*, respectively.

***Revolving lines - North America*.** On *September 20, 2018,* and as amended, extended, or renewed subsequently thereafter, the Company and certain of its U.S. and Canadian subsidiaries (collectively the "North American Loan Parties") entered into a Revolving Credit and Security Agreement (the "Credit Agreement") with PNC Bank, National Association ("PNC"), as administrative agent and lender, providing for a three-year $18 million senior secured revolving credit facility, subject to a borrowing base including various reserves (the "Senior Credit Facility"). The Credit Agreement with PNC was subsequently extended on *September 17, 2021,* providing for a new five-year $18 million senior secured revolving credit facility, subject to a borrowing base including various reserves (the "Renewed Senior Credit Facility"). The Renewed Senior Credit Facility matures on *September 20, 2026.* 

As of *July 31, 2025*, the Company had borrowed an aggregate of $9.7 million at a rate of 9.0% and had $3.0 million available under the Renewed Senior Credit Facility. As of *January 31, 2025*, the Company had borrowed an aggregate of $6.8 million and had $3.7 million available under the Renewed Senior Credit Facility.

The Company was in compliance with respect to the covenants under the Credit Agreement as of *July 31, 2025*.

 ***Finance obligation - buildings and land.*** On *April 14, 2021,* the Company entered into a purchase and sale agreement, pursuant to which the Company sold its land and buildings in Lebanon, Tennessee (the "Property") for $10.4 million. The transaction generated net cash proceeds of $9.1 million. Concurrently with the sale, the Company paid off the approximately $0.9 million mortgage note on the Property to its lender. The Company used the remaining proceeds to repay its borrowings under the Senior Credit Facility, for strategic investments, and for general corporate needs. Concurrent with the sale of the Property, the Company entered into a fifteen-year lease agreement (the "Lease Agreement"), whereby the Company leases back the Property at an annual rental rate of approximately $0.8 million, subject to annual rent increases of 2.0%. Under the Lease Agreement, the Company has four consecutive options to extend the term of the lease by five years for each such option.

In accordance with ASC *842, Leases*, this transaction was recorded as a failed sale and leaseback as the present value of lease payments exceeded substantially all of the fair value of the underlying assets. The Company utilized an incremental borrowing rate of 8.0% to determine the finance obligation to record for the amounts received and will continue to depreciate the assets. The current portion of the finance obligation of $0.2 million is recognized in current maturities of long-term debt and the long-term portion of $8.7 million is recognized in long-term finance obligation on the Company's consolidated balance sheets as of *July 31, 2025* . The net carrying amount of the financial liability and remaining assets will be *zero* at the end of the lease term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *14*

------

[**Table of Contents**](#toc)

***Revolving lines - foreign*.** The Company also has credit arrangements used by its Middle Eastern subsidiaries in the U.A.E., Egypt and Saudi Arabia as discussed further below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *United Arab Emirates*

The Company has a revolving line for 8.0 million U.A.E. Dirhams (approximately $2.2 million at *July 31, 2025*) from a bank in the U.A.E. As of *July 31, 2025* , the facility has an interest rate of approximately 7.6% and expires in *November 2025,* of which, the Company has started the process to renew and extend this credit arrangement. The Company had *no* borrowings outstanding under the credit facility as of *July 31, 2025* , and $0.4 million as of *January 31, 2025* , respectively, and is presented as a component of current maturities of long-term debt in the Company's consolidated balance sheets. As of *July 31, 2025* and *January 31, 2025* , the Company had unused borrowing availability of approximately $2.2 million and $1.6 million, respectively.

The Company has a revolving line for 17.5 million U.A.E. Dirhams (approximately $4.8 million at *July 31, 2025*) from a bank in the U.A.E. As of *July 31, 2025* , the facility has an interest rate of approximately 7.6% and expires in *November 2025,* of which, the Company has started the process to renew and extend this credit arrangement. The Company had borrowed an aggregate of $2.4 million as of *July 31, 2025* and $0.1 million as of *January 31, 2025* , respectively, and is presented as a component of current maturities of long-term debt in the Company's consolidated balance sheets. The Company had unused borrowing availability of approximately $0.3 million and $2.5 million as of *July 31, 2025* and *January 31, 2025* , respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company has a revolving line for 47.7 million U.A.E. Dirhams (approximately $13.0 million at *July 31, 2025*) from a bank in the U.A.E. As of *July 31, 2025*, the facility has a minimum 8% interest rate and expires in *December 2025.* The Company had unused borrowing availability $5.3 million and $6.5 million as of *July 31, 2025* and *January 31, 2025*, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company has a guarantee for 48.6 million U.A.E. Dirhams (approximately $13.2 million at *July 31, 2025*) from a bank in the U.A.E. There is no interest rate on this facility, however, it earns a 1% commission. As of *July 31, 2025*, approximately $11.0 million has been utilized in the form of a bank guarantee, with $2.2 million of availability remaining. Additionally, in *August 2025,* a line of credit was added to the agreement for 51.4 million U.A.E Dirhams (approximately $14.0 million at *July 31, 2025*) which will incur an additional .8% commission.

*Egypt*

In *June 2021,* and as renewed or amended subsequently thereafter, the Company's Egyptian subsidiary entered into a credit arrangement with a bank in Egypt for a revolving line of 100.0 million Egyptian Pounds (approximately $2.0 million at *July 31, 2025*). This credit arrangement is in the form of project financing, for which the line is secured by certain assets (such as accounts receivable) of the Company's Egyptian subsidiary. Among other covenants, the credit arrangement established a maximum leverage ratio allowable and restricted the Company's Egyptian subsidiary's ability to undertake any additional debt. As of *July 31, 2025* , the facility has an interest rate of approximately 20.8% and expires in *November 2025.* As of *July 31, 2025* and *January 31, 2025*, the Company had an immaterial amount outstanding, which is presented as a component of current maturities of long-term debt in the Company's consolidated balance sheets. Further, as of *July 31, 2025* and *January 31, 2025* , the Company had approximately $2.0 million of unused borrowing capacity with respect to this credit arrangement.

In *December 2021,* the Company entered into a credit arrangement for project financing with a bank in Egypt for 28.2 million Egyptian Pounds. As this project has progressed and the Company has received collections, the facility has decreased to a current amount of 2.1 million Egyptian Pounds (approximately $0.1 million at *July 31, 2025*). This credit arrangement is in the form of project financing at rates competitive in Egypt. The line is secured by the contract for a project being financed by the Company's Egyptian subsidiary. The facility has an interest rate of approximately 15.0% and, as of *November 2022,* is no longer available for borrowings by the Company. The facility will expire in connection with final customer balance collections and the completion of the project. The Company had no outstanding balance as of *July 31, 2025* and *January 31, 2025* .

*Saudi Arabia*

In *March 2022,* the Company's Saudi Arabian subsidiary entered into a credit arrangement with a bank in Saudi Arabia for a revolving line of 37.0 million Saudi Riyals (approximately $9.9 million at *July 31, 2025*). This credit arrangement is in the form of project financing at rates competitive in Saudi Arabia. The line is secured by certain assets (such as accounts receivable) of the Company's Saudi Arabian subsidiary, and expires in *April 2026.* As of *July 31, 2025*, the facility has an interest rate of approximately 9.0%. The Company had borrowed an aggregate of $3.3 million and $1.5 million as of *July 31, 2025* and *January 31, 2025*, respectively, and is presented as a component of current maturities of long-term debt in the Company's consolidated balance sheets. The unused borrowing availability attributable to this credit arrangement at *July 31, 2025* and *January 31, 2025*, was $2.9 million and $3.0 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *15*

------

[**Table of Contents**](#toc)

These credit arrangements are in the form of overdraft facilities and project financing at rates competitive in the countries in which the Company operates. The lines are secured by certain equipment, certain assets (such as accounts receivable and inventory), and in some cases, a guarantee by the Company. Some credit arrangement covenants require a minimum tangible net worth to be maintained, including maintaining certain levels of intercompany subordinated debt. In addition, some of the revolving credit facilities restrict payment of dividends or undertaking of additional debt. The Company guarantees only a portion of the subsidiaries' debt, including foreign debt. As of *July 31, 2025* and *January 31, 2025*, the amount of foreign subsidiary debt guaranteed by the Company was approximately $8.6 million and $4.8 million, respectively.

The Company was in compliance with respect to the covenants under the credit arrangements in the U.A.E., Egypt, and Saudi Arabia as of *July 31, 2025*. Although certain arrangements are set to expire and the borrowings could be required to be repaid immediately by the bank, the Company is in regular communication with the bank throughout the renewal process and the arrangements have continued without interruption or penalty. On *July 31, 2025*, interest rates were based on (i) the Emirates Inter Bank Offered Rate plus 3.0% to 3.5% per annum for the U.A.E. credit arrangements, *two* of which have a minimum interest rate of 4.5% per annum; (ii) either the Central Bank of Egypt corporate loan rate plus 1.5% to 3.5% per annum or the stated interest rate in the agreements for the Egypt credit arrangements; and (iii) the Saudi Inter-Bank Offered Rate plus 3.5% for the Saudi Arabia credit arrangement. Based on these base rates, as of *July 31, 2025*, the Company's interest rates ranged from 7.6% to 20.8%, with a weighted average rate of 8.4%, and the Company had facility limits totaling $45.0 million under these credit arrangements. As of *July 31, 2025*, $24.4 million of availability was used to support letters of credit to guarantee amounts committed for inventory purchases and for performance guarantees. Additionally, as of *July 31, 2025*, the Company had borrowed $5.8 million and had an additional $14.9 million of borrowing availability remaining under the foreign revolving credit arrangements. The foreign revolving lines balances were included as a component of current maturities of long-term debt in the Company's consolidated balance sheets as of *July 31, 2025* and *January 31, 2025*.

In *June 2023,* the Company assumed a promissory note of approximately $2.8 million in connection with the formation of the joint venture with Gulf Insulation Group (see Note *15*). In accordance with the promissory note, all principal is due and payable on the maturity date of *April 9, 2026,* with the option to prepay, in whole or in part, at any time prior to the maturity date, without premium or penalty. This amount is presented as a component of current liabilities in the Company's consolidated balance sheets.

***Mortgages.*** On *July 28, 2016,* the Company entered into a mortgage agreement secured by the Company's manufacturing facility located in Alberta, Canada that matures on *December* 23, *2042.* As of *July 31, 2025*, the remaining balance on the mortgage in Canada is approximately CAD 5.6 million (approximately $4 million at *July 31, 2025*). The interest rate is variable, and was 6.8% at *July 31, 2025*. The principal balance is included as a component of long-term debt, less current maturities in the Company's consolidated balance sheets and is presented net of issuance costs of $0.1 million as of *July 31, 2025* and *January 31, 2025*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *16*

------

[**Table of Contents**](#toc)

**Note *11* - Leases**

The Company accounts for its leases under ASC *842, Leases*. Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases, and are recorded on the consolidated balance sheets, with the exception of leases with an initial term of *12* months or less in accordance with an accounting policy election, for which rent expense is recognized on a straight-line basis over the lease term.

***Operating Leases.***

Operating leases are included in operating lease right-of-use ("ROU") assets, operating lease liabilities short-term, and operating lease liabilities long-term in the Company's consolidated balance sheets.

In *January 2025,* the Company entered into a lease in Qatar for land upon which the Company intends to build a facility. The agreement provides for annual lease payments of 0.3 million Qatari Riyals (approximately $0.1 million at *July 31, 2025),* which is inclusive of certain escalation clauses and other variable consideration contained in the agreement. The agreement has an initial lease term of twenty years, which includes the option to terminate the lease agreement after *ten* years, and the ability to renew the lease at the end of the initial lease term.

In *July 2025,* the Company entered into an additional lease agreement in Qatar for land and a building. The agreement has an initial lease term of three years with annual lease payments of 1.9 million Qatar Riyals (approximately $0.5 million at *July 31, 2025),* which includes an escalation clause of approximately 10% for each year thereafter. The agreement *may* be terminated at any time; however, the Company will be obligated to pay any unpaid balance through the remainder of the lease term.

***Finance Leases.***

Finance leases are included in property, plant and equipment, current maturities of long-term debt, and long-term debt less current maturities in the Company's consolidated balance sheets.

The Company has several lease agreements, with lease terms of one to fifteen years, which consist of real estate, vehicles and office equipment leases. These leases do *not* require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees. Certain of the Company's leases include renewal options and escalation clauses; renewal options have *not* been included in the calculation of the lease liabilities and ROU assets as the Company is *not* reasonably certain to exercise these options. Variable expenses generally represent the Company's share of the landlord's operating expenses. The Company does *not* have any arrangements where it acts as a lessor, other than *one* sub-lease arrangement, which is *not* material.

Total lease costs consist of the following:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Three Months Ended July 31,** | **Three Months Ended July 31,** | **Six Months Ended July 31,** | **Six Months Ended July 31,** |
| **Lease costs**  | ***Consolidated Statements of Operations Classification*** | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| Finance Lease Costs |  |  |  |  |  |
| Amortization of ROU assets | *Cost of sales* | $25 | $37 | $75 | $75 |
| Interest on lease liabilities | *Interest expense* | 1 | 2 | 2 | 3 |
| Operating lease costs | *Cost of sales, SG&A expenses* | 701 | 438 | 1303 | 893 |
| Short-term lease costs (1) | *Cost of sales, SG&A expenses* | 759 | 93 | 1041 | 236 |
| ***Total Lease costs*** | ***Total Lease costs*** | $1486 | $570 | $2421 | $1207 |

---

(*1*) Includes variable lease costs, which are *not* material.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *17*

------

[**Table of Contents**](#toc)

Supplemental balance sheet information related to leases is as follows:

---

| | | |
|:---|:---|:---|
| **Operating and Finance leases** | ***July 31, 2025*** | ***January 31, 2025*** |
| Finance leases assets: |  |  |
| &nbsp;&nbsp;&nbsp; Property and Equipment - gross | $941 | $899 |
| &nbsp;&nbsp;&nbsp; Accumulated depreciation and amortization | (743) | (626) |
| Property and Equipment - net | $198 | $273 |
| Finance lease liabilities: |  |  |
| &nbsp;&nbsp;&nbsp; Finance lease liability short-term | $34 | $32 |
| Finance lease liability long-term | 27 | 43 |
| Total finance lease liabilities | $61 | $75 |
| Operating lease assets: |  |  |
| Operating lease ROU assets | $11862 | $8199 |
| Operating lease liabilities: |  |  |
| Operating lease liability short-term | $1383 | $1071 |
| Operating lease liability long-term | 11425 | 7713 |
| Total operating lease liabilities | $12808 | $8784 |

---

Weighted-average lease terms and discount rates are as follows:

---

| | |
|:---|:---|
|  | July 31, 2025 |
| Weighted-average remaining lease terms (in years): |  |
| Finance leases | 1.8 |
| Operating leases | 14.4 |
| Weighted-average discount rates: |  |
| Finance leases | 6.4% |
| Operating leases | 9.4% |

---

Supplemental cash flow information related to leases is as follows:

---

| | | |
|:---|:---|:---|
|  | ***Six Months Ended July 31,*** | ***Six Months Ended July 31,*** |
|  | ***2025*** | ***2024*** |
| **Cash paid for amounts included in the measurement of lease liabilities:** |  |  |
| Financing cash outflows from finance leases | $17 | $16 |
| Operating cash outflows from finance leases | 2 | 3 |
| Operating cash outflows from operating leases | 673 | 1045 |
| ROU assets obtained in exchange for new lease obligations: |  |  |
| Operating leases liabilities | $5242 | $1041 |

---

Maturities of lease liabilities as of *July 31, 2025*, are as follows:

---

| | | |
|:---|:---|:---|
|  | ***Operating Leases*** | ***Finance Leases*** |
| For the six months ending January 31, 2026 | $1517 | $19 |
| For the year ended January 31, 2027 | 2452 | 37 |
| For the year ended January 31, 2028 | 2617 | 9 |
| For the year ended January 31, 2029 | 1945 |  |
| For the year ended January 31, 2030 | 946 |  |
| For the year ended January 31, 2031 | 784 |  |
| Thereafter | 15557 |  |
| &nbsp;&nbsp;&nbsp; Total lease payments | $25818 | $65 |
| Less: amount representing interest | (13010) | (4) |
| Total lease liabilities at July 31, 2025 | $12808 | $61 |

---

Rent expense attributable to operating leases was $1.5 million and $0.6 million for the *three* months ended *July 31, 2025* and *2024*, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *18*

------

[**Table of Contents**](#toc)

**Note *12* - Restricted cash**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash held by foreign subsidiaries is related to fixed deposits that also serve as security deposits and guarantees:

---

| | | |
|:---|:---|:---|
|  | ***July 31, 2025*** | ***January 31, 2025*** |
| Cash and cash equivalents | $17258 | $15716 |
| Restricted cash | 1444 | 1401 |
| Cash, cash equivalents and restricted cash shown in the statement of cash flows | $18702 | $17117 |

---

**Note *13* - Fair value** 

The carrying values of cash and cash equivalents, accounts receivable and accounts payable are considered reasonable estimates of fair value due to their short-term nature. The carrying amount of the Company's short-term debt, revolving lines of credit and long-term debt approximate fair value because the majority of the amounts outstanding accrue interest at variable market rates.

**Note *14* - Recent accounting pronouncements**

In *December 2023,* the FASB issued ASU *No. 2023*-*09, Income Taxes* (*Topic *740*): *Improvements to Income Tax Disclosures*. Pursuant to this standard update, companies are required to provide additional information, which is primarily attributable to the rate reconciliation and income taxes paid. The standard update is to be applied prospectively, with retrospective application permitted. The new income tax disclosures are effective for fiscal years beginning after *December 15, 2024.* The Company is still evaluating this standard update but does *not* expect it to have a material impact on its consolidated financial statements.

In *November 2024,* the FASB issued ASU *No. 2024*-*03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic *220*-*40*): Disaggregation of Income Statement Expenses*. In accordance with this standard update, companies are required to disclose specified information about certain costs and expenses in the notes to the financial statements at each interim and annual reporting period. The amendments are effective for fiscal years beginning after *December 15, 2026,* and for interim periods within fiscal years beginning after *December 15, 2027.* Early adoption is permitted. The Company is currently evaluating the impact of this standard update on its consolidated financial statements and related disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *19*

------

[**Table of Contents**](#toc)

**Note *15* - Noncontrolling interest**

On *June 1, 2023,* the Company closed on its formation of a joint venture (the "JV", and the agreement governing the JV, the "JV Agreement") with Gulf Insulation Group ("GIG"), a leading provider of pre-insulated piping systems and pipe fabrication, in which the Company acquired a 60% controlling financial interest and contributed assets consisting of a building and equipment. The JV is a limited liability company named Perma Pipe Gulf Arabia Industry LLC and is a closed joint stock company established under the laws of the Kingdom of Saudi Arabia. The JV's capital is comprised of ordinary shares with 60% owned by the Company and the remaining 40% owned by GIG. This collaborative business arrangement results in expanding the Company's market presence in Saudi Arabia, Kuwait, and Bahrain. The primary business activities of the JV include the manufacture and sale of the pre-insulated piping systems and pipe coating services.

The balance sheets and operating activities of this investment are included in the Company's consolidated financial statements. As of *July 31, 2025*, the carrying amount of the assets and liabilities of the JV that are consolidated by the Company totaled $39.8 million and $19.9 million, respectively, and $39.1 million and $22.1 million, respectively, as of *January 31, 2025*.

The Company adjusts net income in the consolidated statements of operations to exclude the proportionate share of results that is attributable to the non-controlling interest. Additionally, the Company presents the proportionate share that is attributable to the non-controlling interest as temporary equity within the consolidated balance sheets. This temporary equity presentation is the result of the non-controlling interest being subject to certain redemption rights that are *not* entirely within the Company's control. Due to these redemption rights, at each balance sheet date, the Company is required to adjust the carrying value attributable to the non-controlling interest to fair value, which is limited to its original carrying value at the formation of the business arrangement. Adjustments made to reflect the change in the value of the redeemable non-controlling interest are offset against permanent equity within the Company's consolidated balance sheets.

Net income attributable to GIG was $0.4 million and $1.0 million for the *three* months ended *July 31, 2025* and *2024*, respectively. Net income attributable to GIG was $1.3 million for the *six* months ended *July 31, 2025* and *2024*. The proportionate share of net income was accounted for as a reduction in deriving net income attributable to common stock in the Company's consolidated statements of operations.

The non-controlling interest as measured at fair value was $12.2 million and $11.0 million at *July 31, 2025* and *January 31, 2025*, respectively. The change in non-controlling interest consists of $1.3 million in current year net income attributable to non-controlling interest, and approximately $(0.1) million as an adjustment to the carrying value of the redeemable non-controlling interest pertaining to the business arrangement. In addition, there were *no* dividends or any other form of distributions from non-controlling interest for the periods ended *July 31, 2025* and *January 31, 2025*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *20*

------

[**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **Item 2.** | **Management's Discussion and Analysis of Financial Condition and Results of Operations (**"**MD&A**"**)** |

---

The statements contained in this MD&A and other information contained elsewhere in this quarterly report, which can be identified by the use of forward-looking terminology such as "may," "will," "expect," "continue," "remains," "intend," "aim," "should," "prospects," "could," "future," "potential," "believes," "plans," "likely" and "probable" or the negative thereof or other variations thereon or comparable terminology, constitute "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, and are subject to the safe harbors created thereby. These statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected as a result of many factors, including, but not limited to, those under the heading Item 1A. Risk Factors included in the Company's latest Annual Report on Form 10-K. The Company's fiscal year ends on January 31. Years and balances described as 2025 and 2024 are for the fiscal year ending January 31, 2026 and the fiscal year ended January 31, 2025, respectively.

This MD&A should be read in conjunction with the Company's consolidated financial statements, including the notes thereto, contained elsewhere in this report. Percentages set forth below in this MD&A have been rounded to the nearest percentage point.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21

------

[**Table of Contents**](#toc)

 **CONSOLIDATED RESULTS OF OPERATIONS**

**(In thousands, except per share data, or unless otherwise specified)**

**(Unaudited)**

The Company is engaged in the manufacture and sale of products in one reportable segment. Since the Company focuses on discrete projects, operating results can be significantly impacted as a result of large variations in the level of project activity in reporting periods.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended July 31,** | **Three Months Ended July 31,** | **Three Months Ended July 31,** | **Three Months Ended July 31,** |  | **Six Months Ended July 31,** | **Six Months Ended July 31,** | **Six Months Ended July 31,** | **Six Months Ended July 31,** |  |
|  | **2025** | **2025** | **2024** | **2024** | **Change favorable (unfavorable)** | **2025** | **2025** | **2024** | **2024** | **Change favorable (unfavorable)** |
|  | **Amount** | **Percent of Net Sales** | **Amount** | **Percent of Net Sales** | **Amount** | **Amount** | **Percent of Net Sales** | **Amount** | **Percent of Net Sales** | **Amount** |
| Net sales | $47902 |  | $37513 |  | $10389 | $94648 |  | $71834 |  | $22814 |
| Gross profit | 14423 | 30% | 13474 | 36% | 949 | 31147 | 33% | 23991 | 33% | 7156 |
| General and administrative expenses | 10033 | 21% | 5979 | 16% | (4054) | 17781 | 19% | 12128 | 17% | (5653) |
| Selling expenses | 1203 | 3% | 1353 | 4% | 150 | 2289 | 2% | 2588 | 4% | 299 |
| Interest expense | 415 |  | 514 |  | 99 | 821 |  | 1021 |  | 200 |
| Other expense | 21 |  | 38 |  | 17 | 70 |  | 105 |  | 35 |
| Income before income taxes | 2751 |  | 5590 |  | (2839) | 10186 |  | 8149 |  | 2037 |
| Income tax expense | 1489 |  | 1306 |  | (183) | 3070 |  | 2076 |  | (994) |
| Net income | 1262 |  | 4284 |  | (3022) | 7116 |  | 6073 |  | 1043 |
| Less: Net income attributable to non-controlling interest | 411 |  | 995 |  | 584 | 1313 |  | 1341 |  | 28 |
| Net income attributable to common stock | 851 |  | 3289 |  | (2438) | 5803 |  | 4732 |  | 1071 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22

------

[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Three months ended July 31, 2025 vs. Three months ended July 31, 2024**

 ***Net sales:***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net sales were $47.9 million and $37.5 million in the three months ended July 31, 2025 and 2024, respectively. The increase o f $10.4 million was a result of increased sales volumes in the Middle East and in North America.

***Gross profit:***

Gross profit was $14.4 million and $13.5 million in the three months ended July 31, 2025 and 2024, respectively. The increase of $0.9 million, was driven primarily by increased volume of activity in the quarter.

***General and administrative expenses:***

General and administrative expenses were $10.0 million and $6.0 million in the three months ended July 31, 2025 and 2024, respectively. The increase of $4.0 million, was mainly due to higher payroll expenses and professional fees in the quarter. This includes a one-time charge due to an acceleration of certain executive compensation expense in the quarter as a result of a departure from the organization.

***Selling expenses:***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling expenses were $1.2 million and $1.4 million in the three months ended July 31, 2025 and 2024, respectively. The decrease of $0.2 million, was due to lower payroll expense in the quarter.

***Interest expense:***

Net interest expense remained consistent and was $0.4 million and $0.5 million in the three months ended July 31, 2025 and 2024, respectively.

***Income tax expense:***

The Company's ETR was 54% and 23% in the three months ended July 31, 2025 and 2024, respectively. The change in the ETR is due to the mix of income and loss in various jurisdictions, primarily an increase in income in UAE, and a tax deduction limitation that was attributable to an acceleration of certain executive compensation.

For further information, see Note 6 - Income taxes, in the Notes to Consolidated Financial Statements.

***Net income attributable to common stock:***

Net income attributable to common stock was $0.9 million and $3.3 million in the three months ended July 31, 2025 and 2024, respectively. The decrease of $2.4 million, was mainly due to higher payroll expenses in connection with a one-time charge of $2.1 million related to an acceleration of certain executive compensation as a result of a departure from the organization.

**Public Float:**

The Company performed its public float calculation pursuant to the SEC's Public Float Test as of the last business day of its second fiscal quarter ended July 31, 2025. Based on this calculation, the Company concluded that its public float exceeded the threshold of $75 million to retain its filer status as a Smaller Reporting Company ("SRC"). As a result, the Company's filer status has changed and henceforth will be classified as an accelerated filer. Accordingly, the Company will be subject to the requirements within this classification, including an accelerated timeline to file certain periodic reports and will no longer be eligible for the scaled-down financial disclosure requirements provided to entities that meet the definition of an SRC. This change in filer status goes into effect for fiscal year ended January 31, 2026, which is the first annual report filed for the fiscal year in which the Company loses its SRC status.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23

------

[**Table of Contents**](#toc)

**Six months ended July 31, 2025 vs. Six months ended July 31, 2024**

***Net sales:***

Net sales were $94.6 million and $71.8 million in the six months ended July 31, 2025 and 2024, respectively. The increase of $22.8 million was a result of increased sales volumes in the Middle East and in North America.

***Gross profit:***

Gross profit was $31.1 million and $24.0 million in the six months ended July 31, 2025 and 2024, respectively. The increase of $7.1 million, was driven primarily by increased volume of activity and better margins due to product mix.

***General and administrative expenses:***

General and administrative expenses were $17.8 million and $12.1 million in the six months ended July 31, 2025 and 2024, respectively. The increase of $5.7 million, was due to higher payroll expenses and professional fees. This includes a one-time charge due to an acceleration of certain executive compensation expense as a result of a departure from the organization.

***Selling expenses:***

Selling expenses remained consistent and were $2.3 million and $2.6 million in the six months ended July 31, 2025 and 2024, respectively. The decrease of $0.3 million was primarily attributable to lower payroll expenses.

***Interest expense:***

Net interest expense was $0.8 million and $1.0 million in the six months ended July 31, 2025 and 2024, respectively. The decrease of $0.2 million was the result of an overall reduction in interest rates during the current year.

***Income tax expense:***

The Company's ETR was 30% and 25% in the six months ended July 31, 2025 and 2024, respectively. The change in the ETR is due to the mix of income and loss in various jurisdictions, primarily an increase in income in UAE, and a tax deduction limitation that was attributable to an acceleration of certain executive compensation.

For further information, see Note 6 - Income taxes, in the Notes to Consolidated Financial Statements.

***Net income attributable to common stock:***

Net income attributable to common stock was $5.8 million and $4.7 million in the six months ended July 31, 2025 and 2024, respectively. The increase of $1.1 million, was mainly due to increased sales volumes and better project execution during the current year, offset by higher payroll expenses in connection with a one-time charge due to an acceleration of certain executive compensation expense as a result of the recent departure of the former chief executive officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24

------

[**Table of Contents**](#toc)

**Liquidity and capital resources**

Cash and cash equivalents as of July 31, 2025 were $17.3 million compared to $15.7 million on January 31, 2025. On July 31, 2025, $0.2 million was held in the United States, and $17.1 million was held at the Company's foreign subsidiaries. The Company's working capital was $58.5 million on July 31, 2025 compared to $54.7 million on January 31, 2025. Of the working capital components, accounts receivable increased by $4.1 million and cash and cash equivalents increased by $1.6 million as the result of the movements discussed below. As of July 31, 2025, the Company had $3.0 million of borrowing capacity under the Renewed Senior Credit Facility in North America and $14.9 million of borrowing capacity under its foreign revolving credit agreements. The Company had $9.7 million borrowed under the Renewed Senior Credit Facility and $5.8 million borrowed under its foreign revolving credit agreements at July 31, 2025.

Net cash (used in) provided by operating activities was $(1.3) million and $2.7 million in the six months ended July 31, 2025 and 2024, respectively. The decrease of $4.0 million was primarily attributable to changes in accounts receivable and unbilled accounts receivable, partially offset by increases related to inventories, customer deposits, accounts payable, prepaid expenses and other current assets, and net income.

Net cash used in investing activities in the six months ended July 31, 2025 and 2024 was $3.5 million and $1.2 million, respectively. The increase of $2.3 million was primarily due to increases in the amount of capital expenditures during the year.

Net cash provided by financing activities in the six months ended July 31, 2025 and 2024 was $6.3 million and $2.2 million, respectively. Debt totaled $31.3 million and $24.5 million as of July 31, 2025 and January 31, 2025, respectively. See Note 10 - Debt, in the Notes to Consolidated Financial Statements for further discussion relating to this topic.

As of July 31, 2025, Perma-Pipe had $17.3 million of cash and cash equivalents on hand and committed debt facility agreements with commercial banks aggregating $63.0 million, for which $17.9 million was available. The Company believes these amounts are sufficient to meet future business requirements for at least the next 12 months and beyond.

 ***Revolving lines - North America*** **.** On September 20, 2018, and as amended, extended, or renewed subsequently thereafter, the Company and certain of its U.S. and Canadian subsidiaries (collectively the "North American Loan Parties") entered into a Revolving Credit and Security Agreement (the "Credit Agreement") with PNC Bank, National Association ("PNC"), as administrative agent and lender, providing for a three-year $18 million senior secured revolving credit facility, subject to a borrowing base including various reserves (the "Senior Credit Facility"). The Credit Agreement with PNC was subsequently extended on September 17, 2021, providing for a new five-year $18 million senior secured revolving credit facility, subject to a borrowing base including various reserves (the "Renewed Senior Credit Facility"). The Renewed Senior Credit Facility matures on September 20, 2026.

As of July 31, 2025, the Company had borrowed an aggregate of $9.7 million at a rate of 9.0% and had $3.0 million available under the Renewed Senior Credit Facility. As of January 31, 2025, the Company had borrowed an aggregate of $6.8 million and had $3.7 million available under the Renewed Senior Credit Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company was in compliance with respect to the covenants under the Credit Agreement as of July 31, 2025.

 ***Finance obligation - buildings and land.*** On April 14, 2021, the Company entered into a purchase and sale agreement, pursuant to which the Company sold its land and buildings in Lebanon, Tennessee (the "Property") for $10.4 million. The transaction generated net cash proceeds of $9.1 million. Concurrently with the sale, the Company paid off the approximately $0.9 million mortgage note on the Property to its lender. The Company used the remaining proceeds to repay its borrowings under the Senior Credit Facility, for strategic investments, and for general corporate needs. Concurrent with the sale of the Property, the Company entered into a fifteen-year lease agreement (the "Lease Agreement"), whereby the Company leases back the Property at an annual rental rate of approximately $0.8 million, subject to annual rent increases of 2.0%. Under the Lease Agreement, the Company has four consecutive options to extend the term of the lease by five years for each such option.

In accordance with ASC 842, *Leases*, this transaction was recorded as a failed sale and leaseback as the present value of lease payments exceeded substantially all of the fair value of the underlying assets. The Company utilized an incremental borrowing rate of 8.0% to determine the finance obligation to record for the amounts received and will continue to depreciate the assets. The current portion of the finance obligation of $0.2 million is recognized in current maturities of long-term debt and the long-term portion of $8.7 million is recognized in long-term finance obligation on the Company's consolidated balance sheets as of July 31, 2025 . The net carrying amount of the financial liability and remaining assets will be zero at the end of the lease term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25

------

[**Table of Contents**](#toc)

 ***Revolving lines - foreign*** **.** The Company also has credit arrangements used by its Middle Eastern subsidiaries in the U.A.E. , Egypt and Saudi Arabia as discussed further below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *United Arab Emirates*

The Company has a revolving line for 8.0 million U.A.E. Dirhams (approximately $2.2 million at July 31, 2025) from a bank in the U.A.E. As of July 31, 2025 , the facility has an interest rate of approximately 7.6% and expires in November 2025, of which, the Company has started the process to renew and extend this credit arrangement. The Company had no borrowings outstanding under the credit facility as of July 31, 2025 , and $0.4 million as of January 31, 2025 , respectively, and is presented as a component of current maturities of long-term debt in the Company's consolidated balance sheets. As of July 31, 2025 and January 31, 2025 , the Company had unused borrowing availability of approximately $2.2 million and $1.6 million, respectively.

The Company has a revolving line for 17.5 million U.A.E. Dirhams (approximately $4.8 million at July 31, 2025) from a bank in the U.A.E. As of July 31, 2025 , the facility has an interest rate of approximately 7.6% and expires in November 2025, of which, the Company has started the process to renew and extend this credit arrangement. The Company had borrowed an aggregate of $2.4 million as of July 31, 2025 and $0.1 million as of January 31, 2025 , respectively, and is presented as a component of current maturities of long-term debt in the Company's consolidated balance sheets. The Company had unused borrowing availability of approximately $0.3 million and $2.5 million as of July 31, 2025 and January 31, 2025 , respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company has a revolving line for 47.7 million U.A.E. Dirhams (approximately $13.0 million at July 31, 2025) from a bank in the U.A.E. As of July 31, 2025, the facility has a minimum 8% interest rate and expires in December 2025. The Company had unused borrowing availability $5.3 million and $6.5 million as of July 31, 2025 and January 31, 2025, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company has a guarantee for 48.6 million U.A.E. Dirhams (approximately $13.2 million at July 31, 2025) from a bank in the U.A.E. There is no interest rate on this facility, however, it earns a 1% commission. As of July 31, 2025, approximately $11.0 million has been utilized in the form of a bank guarantee, with $2.2 million of availability remaining. Additionally, in August 2025, a line of credit was added to the agreement for 51.4 million U.A.E Dirhams (approximately $14.0 million at July 31, 2025) which will incur an additional .8% commission.

 *Egypt*

In June 2021, and as renewed or amended subsequently thereafter, the Company's Egyptian subsidiary entered into a credit arrangement with a bank in Egypt for a revolving line of 100.0 million Egyptian Pounds (approximately $2.0 million at July 31, 2025). This credit arrangement is in the form of project financing, for which the line is secured by certain assets (such as accounts receivable) of the Company's Egyptian subsidiary. Among other covenants, the credit arrangement established a maximum leverage ratio allowable and restricted the Company's Egyptian subsidiary's ability to undertake any additional debt. As of July 31, 2025 , the facility has an interest rate of approximately 20.8% and expires in November 2025. As of July 31, 2025 and January 31, 2025, the Company had an immaterial amount outstanding, which is presented as a component of current maturities of long-term debt in the Company's consolidated balance sheets. Further, as of July 31, 2025 and January 31, 2025 , the Company had approximately $2.0 million of unused borrowing capacity with respect to this credit arrangement.

In December 2021, the Company entered into a credit arrangement for project financing with a bank in Egypt for 28.2 million Egyptian Pounds. As this project has progressed and the Company has received collections, the facility has decreased to a current amount of 2.1 million Egyptian Pounds (approximately $0.1 million at July 31, 2025). This credit arrangement is in the form of project financing at rates competitive in Egypt. The line is secured by the contract for a project being financed by the Company's Egyptian subsidiary. The facility has an interest rate of approximately 15.0% and, as of November 2022, is no longer available for borrowings by the Company. The facility will expire in connection with final customer balance collections and the completion of the project. The Company had no outstanding balance as of July 31, 2025 and January 31, 2025 .

 *Saudi Arabia*

In March 2022, the Company's Saudi Arabian subsidiary entered into a credit arrangement with a bank in Saudi Arabia for a revolving line of 37.0 million Saudi Riyals (approximately $9.9 million at July 31, 2025). This credit arrangement is in the form of project financing at rates competitive in Saudi Arabia. The line is secured by certain assets (such as accounts receivable) of the Company's Saudi Arabian subsidiary, and expires in April 2026. As of July 31, 2025 , the facility has an interest rate of approximately 9.0% . The Company had borrowed an aggregate of $3.3 million and $1.5 million as of July 31, 2025 and January 31, 2025 , respectively, and is presented as a component of current maturities of long-term debt in the Company's consolidated balance sheets. The unused borrowing availability attributable to this credit arrangement at July 31, 2025 and January 31, 2025 , was $2.9 million and $3.0 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26

------

[**Table of Contents**](#toc)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; These credit arrangements are in the form of overdraft facilities and project financing at rates competitive in the countries in which the Company operates. The lines are secured by certain equipment, certain assets (such as accounts receivable and inventory), and in some cases, a guarantee by the Company. Some credit arrangement covenants require a minimum tangible net worth to be maintained, including maintaining certain levels of intercompany subordinated debt. In addition, some of the revolving credit facilities restrict payment of dividends or undertaking of additional debt. The Company guarantees only a portion of the subsidiaries' debt, including foreign debt. As of July 31, 2025 and January 31, 2025, the amount of foreign subsidiary debt guaranteed by the Company was approxim ately $8.6 million and $4.8 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company was in compliance with respect to the covenants under the credit arrangements in the U.A.E., Egypt, and Saudi Arabia as of July 31, 2025. Although certain arrangements are set to expire and the borrowings could be required to be repaid immediately by the bank, the Company is in regular communication with the bank throughout the renewal process and the arrangements have continued without interruption or penalty. On July 31, 2025, interest rates were based on (i) the Emirates Inter Bank Offered Rate plus 3.0% to 3.5% per annum for the U.A.E. credit arrangements, two of which have a minimum interest rate of 4.5% per annum; (ii) either the Central Bank of Egypt corporate loan rate plus 1.5% to 3.5% per annum or the stated interest rate in the agreements for the Egypt credit arrangements; and (iii) the Saudi Inter-Bank Offered Rate plus 3.5% for the Saudi Arabia credit arrangement. Based on these base rates, as of July 31, 2025, the Company's interest rates ranged from 7.6% to 20.8%, with a weighted average rate of 8.4%, and the Company had facility limits totaling $45.0 million under these credit arrangements. As of July 31, 2025 , $24.4 million o f availability was used to support letters of credit to guarantee amounts committed for inventory purchases and for performance guarantees. Additionally, as of July 31, 2025 , the Company had borrow ed $5.8 million and had an additional $14.9 million of borrowing availability remaining under the foreign revolving credit arrangements. The foreign revolving lines balances were included as a component of current maturities of long-term debt in the Company's consolidated balance sheets as of July 31, 2025 and January 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In June 2023, the Company assumed a promissory note of approximately $2.8 million in connection with the formation of the joint venture with Gulf Insulation Group (see Note 15). In accordance with the promissory note, all principal is due and payable on the maturity date of April 9, 2026, with the option to prepay, in whole or in part, at any time prior to the maturity date, without premium or penalty. This amount is presented as a component of current liabilities in the Company's consolidated balance sheets.

 ***Mortgages.*** On July 28, 2016, the Company entered into a mortgage agreement secured by the Company's manufacturing facility located in Alberta, Canada that matures on December 23, 2042. As of July 31, 2025, the remaining balance on the mortgage in Canada is approximately CAD 5.6 million (approximately $4 million at July 31, 2025). The interest rate is variable, and was 6.8% at July 31, 2025. The principal balance is included as a component of long-term debt, less current maturities in the Company's consolidated balance sheets and is presented net of issuance costs of $0.1 million as of July 31, 2025 and January 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27

------

[**Table of Contents**](#toc)

***Accounts receivable:***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In 2015, the Company completed a project in the Middle East with billings in the aggregate amount of approximately $41.9 million. The system has not yet been commissioned by the customer. Nevertheless, the Company has received approximately $40.7 million as of July 31, 2025, with a remaining balance due in the amount of $1.2 million, all of which pertains to retention clauses within the agreements with the Company's customer, and which become payable by the customer when this project is fully tested and commissioned. Of this amount, $1.2 million is classified in other long-term assets on the Company's consolidated balance sheets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company has been actively involved in ongoing efforts to collect this outstanding balance. The Company continues to engage with the customer to ensure full payment of the open balances, and during the six months ended July 31, 2025, and at various times throughout 2024, the Company received partial payments to settle $0.6 million and $0.3 million, respectively, of the customer's outstanding balances. Further, the Company has been engaged by the customer to perform additional work in 2024 under customary trade terms that support the continued cooperation between the Company and the customer. As a result, the Company did not reserve any allowance against the remaining outstanding balances as of July 31, 2025. However, if the Company's efforts to collect on this account are not successful, the Company may recognize an allowance for all, or substantially all, of any such then uncollected amounts.

**CRITICAL ACCOUNTING POLICIES AND ESTIMATES**

Critical accounting policies are described in Item 7. MD&A and in the Notes to the Consolidated Financial Statements for the year ended January 31, 2025 contained in the Company's latest Annual Report on Form 10-K. Any new accounting policies or updates to existing accounting policies as a result of new accounting pronouncements have been discussed in the Notes to Consolidated Financial Statements in this Quarterly Report on Form 10-Q. The application of critical accounting policies may require management to make assumptions, judgments and estimates about the amounts reflected in the Consolidated Financial Statements. Management uses historical experience and all available information to make these estimates and judgments, and different amounts could be reported using different assumptions and estimates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28

------

[**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **Item 4.** | **Controls and Procedures** |

---

**Evaluation of Disclosure Controls and Procedures**

The Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of July 31, 2025. The Company's disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed by the Company in the reports the Company files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and to provide reasonable assurance that such information is accumulated and communicated to the Company's management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of July 31, 2025, our disclosure controls and procedures were not effective because of the material weaknesses in internal control over financial reporting, as described below.

The Company's management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) under the Exchange Act. As required by Rule 13a-15(c) under the Exchange Act, the Company's management carried out an evaluation, with the participation of the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company's internal control over financial reporting as of January 31, 2025. The framework on which such evaluation was based is contained in the report entitled "Internal Control-Integrated Framework" (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

The Company's internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Based on management's evaluation, management has concluded that we did not maintain effective internal control over financial reporting as of July 31, 2025, due to the material weaknesses identified below.

**Material Weaknesses in Internal Control Over Financial Reporting**

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis.

The material weaknesses are as follows:

• We did not design and maintain effective controls in response to the risks of material misstatement. Specifically, changes to existing controls or the implementation of new controls have not been sufficient to respond to changes to the risks of material misstatement in financial reporting. This contributed to the following material weaknesses; 

• We did not design and maintain effective certain controls over financial reporting relating to the review and approval of manual journal entries, review of the financial close process, including the statement of cash flows, and review of certain financial policies and procedures; and

• We did not design and maintain effective controls at operating locations in the Middle East and North Africa ("MENA"), including not maintaining sufficient documentation to support an evaluation that controls over business processes were designed and operating effectively; 

These material weaknesses resulted in adjustments to property, plant, and equipment, net of accumulated depreciation, trade accounts payable, trade accounts receivable, and the statement of cash flows. These adjustments resulted in a revision of the unaudited consolidated financial statements as of and for the period ended April 30, 2024, a restatement as of and for the period ended July 31, 2024 and material adjustments as of and for the period ended October 31, 2024.

In addition, we had the following additional material weaknesses:

• We did not design and maintain effective information technology general controls ("ITGCs"), specifically controls over the timely review of user access and administrative access to adequately restrict access, program change management, computer operations, and program development; and

• We did not design and maintain effective controls over managements review of the completeness and accuracy of certain system-generated reports.

These material weaknesses did not result in a misstatement to the Company's annual or interim financial statements. However, each of these material weaknesses could result in a material misstatement of substantially all accounts and disclosures in the Company's annual or interim financial statements that would not be prevented or detected on a timely basis.

***Remediation** **Plan for the Material Weaknesses in Internal Control over Financial Reporting***

To address these matters, the Company has begun implementing its remediation plan. Our ongoing remediation plans include the following:

(i) performing an entity wide risk assessment to identify relevant risks and changes to those relevant risks to our financial reporting; ii) designing and implementing controls to identify and evaluate changes in our business and the impact on our internal control over financial reporting; (iii) engaging outside consultants with expertise relating to ITGCs to document processes, assist in addressing the design and operation of ITGCs, monitoring and testing reviews focusing on systems supporting our financial reporting process (iv) designing and maintaining controls and documentation evidencing those ITGCs for knowledge transfer and function changes, including access and program control and change management, computer operations, and program development, (v) designing and maintaining effective controls to review the completeness and accuracy of certain system-generated reports; and (vi) outsourcing certain functions to third-party providers, specifically relating to servers and firewalls, and managed detection and response.

Our remediation plans related to entity level controls, financial reporting controls, and business process controls include:

(i) enhancing the design of controls for the review of and posting of journal entries; (ii) evaluating and updating documented formal accounting policies, financial reporting, processes and procedures; and overall internal control procedures; and (iii) updating the design of controls for the preparation and review of the financial close process, including the statement of cash flows.

In addition to the items noted above, our remediation plans related to our MENA locations include: (i) evaluating and updating the Company's evidence of internal control policies and procedures; (ii) enhancing the design of controls over business processes that are relevant to our MENA locations; and (iii) formalizing our financial reporting processes and procedures.

The Company anticipates the actions described above will strengthen the Company's internal control over financial reporting and will address the related material weaknesses described above. However, the material weaknesses cannot be considered fully remediated until the necessary controls have been appropriately designed and implemented. The remediation processes and procedures will also need to be in operation for a period of time and management conclude through testing, that these controls are operating effectively.

***Changes in Internal Control over Financial Reporting***. There were no changes to our internal control over financial reporting which were identified in connection with the evaluation required by Rules 13a-15(d) or 15d-15(d) under the Exchange during the fiscal quarter ended July 31, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29

------

[**Table of Contents**](#toc)

**PART II OTHER INFORMATION**

---

| | |
|:---|:---|
| **Item *5.*** | **Other Information** |

---

During the *three* months ended *July 31, 2025*, none of the Company's directors or executive officers adopted or terminated any contract, instruction, or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule *10b5*-*1*(c) or any "non-Rule *10b5*-*1* trading arrangement" (as those terms are defined in Regulation S-K, Item *408*).

The Company entered into an Executive Employment Agreement with Mr. Saleh Sagr, effective as of *September 9, 2025 (*the "Employment Agreement"). Pursuant to the Employment Agreement, Mr. Sagr will receive an initial annual base salary of *$450,000* and a short-term annual incentive bonus opportunity with a target incentive equal to *100%* of his base salary. In addition, Mr. Sagr will also be eligible to receive a long-term incentive, consisting of a cash performance award and restricted stock grants with a total annual target award equal to *100%* of his base salary, with pro-rata vesting of restricted stock grants over a *three*-year period. The Employment Agreement is for an initial term of *three* years, with automatic annual renewal periods for up to *two* successive *one*-year terms.

The Employment Agreement, which is filed as Exhibit *10.1* hereto, is incorporated herein by reference. The foregoing description of the Employment Agreement does *not* purport to be complete and is qualified in its entirety by reference to Exhibit *10.1.*

---

| | |
|:---|:---|
| **Item 6.**  | **Exhibits** |

---

---

| | |
|:---|:---|
| 3.1 | Certificate of Incorporation of Perma-Pipe International Holdings, Inc. [Incorporated by reference to Exhibit 3.3 to Registration Statement No. 33-70298] |
| 3.2 | [Certificate of Amendment to Certificate of Incorporation of Perma-Pipe International Holdings, Inc. \[Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on March 20, 2017\]](http://www.sec.gov/Archives/edgar/data/914122/000091412217000008/a8knamechange.htm) |
| 3.3 | [Seventh Amended and Restated By-Laws of Perma-Pipe International Holdings, Inc. \[Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on April 4, 2025\]](http://www.sec.gov/Archives/edgar/data/914122/000143774919008795/ppih20190503_8k.htm) |
| 10.1\* | [Executive Employment Agreement by and between Perma-Pipe International Holdings, In. and Saleh Sagr, dated September 9, 2025](ex_859915.htm) |
| 31.1 | [Rule 13a - 14(a)/15d - 14(a) Certifications](ex_833404.htm)<br> [(1) Chief Executive Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex_833404.htm) |
| 31.2 | [Rule 13a - 14(a)/15d - 14(a) Certifications](ex_833405.htm)<br> [(2) Chief Financial Officer certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex_833405.htm) |
| 32 | [Section 1350 Certifications (Chief Executive Officer and Chief Financial Officer certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002)](ex_833406.htm) |
| 101.INS | Inline XBRL Instance Document (the Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) |
| 101.SCH | Inline XBRL Taxonomy Extension Schema |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation |
| 101.DEF | Inline XBRL Taxonomy Extension Definition |
| 101.LAB | Inline XBRL Taxonomy Extension Labels |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation  |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

\*Management contracts and compensatory plans or agreements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 30

------

[**Table of Contents**](#toc)

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  |  | **Perma-Pipe International Holdings, Inc.** |
| Date: | September 15, 2025 | By: /s/ Saleh N. Sagr |
|  |  | Saleh N. Sagr |
|  |  | President and Chief Executive Officer |
|  |  | (Principal Executive Officer) |
| Date: | September 15, 2025 | By: /s/ Matthew E. Lewicki |
|  |  | Matthew E. Lewicki |
|  |  | Vice President and Chief Financial Officer |
|  |  | (Principal Financial and Accounting Officer) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31

## Exhibit 10.1

**Exhibit 10.1**

---

| | |
|:---|:---|
| ![image1.jpg](image1.jpg) | **Executive Employment Agreement** |

---

This Employment Agreement ("Agreement") is entered into between Perma-Pipe International Holdings, Inc, a Delaware corporation ("PPIH") and Saleh Nehad Sagr ("Employee"). Throughout this Agreement, PPIH and Employee may be referred to individually as "Party" or collectively as "Parties."

In consideration of the mutual promises and covenants set forth herein, and other good and valuable consideration, the sufficiency of which is hereby acknowledged, PPIH and Employee hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. **Definitions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. **Client**. Means any individual, proprietorship, partnership, corporation, association, governmental entity, or other entity that has been solicited or served by PPIH during the one-year period immediately prior to termination of Employee's employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. **Change in Control**. Includes the following: (i) any person or entity (or persons or entities acting as a group) (other than a corporation, limited liability company or other entity owned or controlled directly or indirectly by the shareholders of PPIH) becomes the beneficial owner, directly or indirectly, of ownership interest representing 100% of the total voting power of all the stock of PPIH or such surviving entity outstanding immediately after such transaction; (ii) a merger or consolidation of Perma-Pipe International, Inc. ("PPIH, Inc.") occurs with or into any other entity, other than a merger or consolidation that would result in the stock of PPI, Inc. outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into ownership interest of the surviving entity) 100% of the total voting power represented by all the ownership interest of PPIH, Inc. or such surviving entity outstanding immediately after such merger or consolidation; or (iii) a complete liquidation of PPI, Inc., or the sale or disposition by PPIH, Inc. to any person or entity (or persons or entities acting as a group) of all or substantially all of PPIH, Inc.'s assets (in one or a series of related transactions during any 12-month period ending on the date of the most recent acquisition). However, in no event will a Change in Control be deemed to have occurred with respect to the Employee if the Employee is part of a purchasing group that consummates the Change in Control. Notwithstanding the foregoing, in any circumstance or transaction in which compensation would be subject to the excise tax under the Section 409A of the Internal Revenue Code of 1986, as amended (the "Code") if the definition of "Change in Control" in this Section were to apply, but would not be so subject if the term "Change in Control" were defined herein to mean a "change in control event" within the meaning of Treasury Regulation section 1.409A-3(i)(5), then "Change in Control" means, but only to the extent necessary to prevent such compensation from becoming subject to the excise tax under Section 409A of the Code, a transaction or circumstance that satisfies the requirements of both (1) a "Change in Control" under the applicable clauses (i) through (iii) of this paragraph, and (2) a "change in control event" within the meaning of Treasury Regulation section 1.409A-3(i)(5).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. **Competing Business**. Means any individual business, firm, undertaking, company or organization, other than PPIH, which is engaged in the business of providing anti-corrosion coatings, insulation solutions, containment systems, leak detection, fabrication, or support services to the industrial piping and energy industries.

Executive Employment Agreement – 1

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. **Work Product**. Means product or information resulting from or related to work or projects performed or to be performed by or for PPIH;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. **Other Proprietary Information**. Employee is aware of and acknowledges that PPIH has developed special competence and knowledge in the industrial pipe industry and has accumulated information not generally known to others in the field which is of unique value in the conduct and growth of PPIH's Business and which PPIH treats as proprietary. This information includes data relating to PPIH's proprietary rights prior to any public disclosure thereof, including but not limited to the nature of the proprietary rights, production data, the status and details of research and development of products and services, and information regarding acquiring, protecting, enforcing and licensing proprietary rights (including patents, copyrights and trade secrets);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. **Third-Party Information**. Confidential or proprietary information from third parties subject to a duty on PPIH's part to maintain the confidentiality of such information and to use it only for certain limited purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. **Business Operations**. Internal personnel and financial information, vendor names and other vendor information (including vendor characteristics, services and agreements), purchasing and internal cost information, internal services and operational manuals, and the manner and methods of conducting PPIH's Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. **Marketing and Development Operations**. Marketing and development plans, price and cost data, price and fee amounts, pricing and billing policies, quoting procedures, marketing techniques and methods of obtaining business, forecasts and forecast assumptions and volumes, and future plans and potential strategies of PPIH which have been or are being discussed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. **Clients**. Names and contact information for Clients and their representatives, Client contracts and their contents, customer service information, and data provided by Clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. **PPIH** ' **s Business**. Means the business of providing anti-corrosion coatings, insulation solutions, containment systems, leak detection, fabrication, and support services to the industrial piping and energy industries, and any other business which PPIH may, from time to time, add to its sales portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. **Workplace Claims**. Means all legal disputes directly or indirectly arising out of or relating to the employment relationship, including and excluding the following as noted below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. **Included in Workplace Claims**. All disputes between Executive and PPIH, including, but not limited to: (a) the Americans with Disabilities Act of 1990, as amended; (b) 42 U.S.C. Sec 1983; (c) Title VII of the Civil Rights Act of 1964, as amended and including 42 U.S.C. Sec 2000(e) et seq.; (d) the Civil Rights Act of 1991; (e) The Civil Rights Acts of 1866, 1871 and 1964, as amended; (f) 42 U.S.C. Sec 1981; (g) the Equal Pay Act of 1963; (h) the Fair Labor Standards Act, as amended; (i) the Rehabilitation Act of 1973, as amended; (j) the Older Workers Benefit Protection Act of 1990; (k) the Age Discrimination in Employment Act; (l) the Family Medical Leave Act of 1993, codified as 29 U.S.C. §§ 2601, et seq., as amended; (m) any state whistleblower law; (n) the National Labor Relations Act; (o) the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended; (p) the Executive Retirement Income Security Act, as amended; (q) the Internal Revenue Code of 1986, as amended, including but not limited to, any claim for taxes, interest, or penalties under IRC 409A; (r) the Sarbanes Oxley Act of 2002, including 15 U.S.C. § 1514A; (s) Immigration Reform and Control Act, as amended; (t) the Occupational Safety and Health Act, as amended; (u) any existing employment agreement or potential entitlement under any PPIH program or plan; (v) any state discrimination and/or retaliation law; and (w) any other statute or law, including all suits in tort or contract, including wrongful termination, negligence, and claims for reimbursement, bonus, incentives, commissions, compensation and benefits, defamation, damage to business reputation, impairment of economic opportunity, and any other claims for compensatory, statutory, liquidated, or punitive damages.

Executive Employment Agreement – 2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. **Excluded from Workplace Claims**. The sole exceptions to any Workplace Claims which must be resolved through the arbitration process under this Agreement are: (a) claims which arise under the National Labor Relations Act and which are brought before the National Labor Relations Board; (b) claims for medical and disability benefits under Workers' Compensation; (c) claims for sexual harassment which may not be arbitrated under the law; (d) unemployment compensation claims filed with the state; (e) misappropriation of trade secrets or confidential information; and (f) any claims for violation of any provision of <u>Sections 6</u> <u>–</u> <u>10</u> of this Agreement for which injunctive relief may be sought. That said, nothing herein shall prevent either of the Parties from obtaining from a court a temporary restraining order or preliminary injunctive relief to preserve the status quo or prevent any irreparable harm pending the arbitration of the underlying claim, dispute, and/or controversy.

&nbsp;&nbsp;&nbsp;&nbsp;2. **Position, Duties and Responsibilities**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. **Job Title \ Reporting Responsibilities**. Employee's job title shall be Chief Executive Officer for PPIH, Inc. including its subsidiary entities, unless otherwise changed by PPIH, provided, however, that PPIH shall not diminish Employee's title below that of any other senior level executive within PPIH without written consent of Employee. Employee shall report directly to PPIH's Board of Directors and the Chairman of the Board or a designated independent director shall be Employee's principal point of contact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. **Job Duties**. Employee's initial responsibilities shall be those listed on Exhibit "A," attached hereto and incorporated herein by reference, which may be from time to time, changed by PPIH, provided, however, that PPIH shall not diminish Employees duties below that of any other senior level executive within PPIH without written consent of Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. **PPIH Policies**. Employee shall follow all PPIH established policies for conduct and procedures as established or revised from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. **Availability**. Employee shall not, during the term of this Agreement, be engaged in any other business activity, whether such business activity is in the pursuit of gain, profit or other pecuniary advantage, without first obtaining the written consent of PPIH's Board of Directors. Employee shall devote such time and effort as reasonably required to meet Employee's position objectives as set by PPIH within the limitations set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. **Non-Solicitation of Client**. Employee shall not solicit existing or prospective Clients of PPIH for any purpose other than sale of PPIH products or performance of PPIH services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. **Professionalism and Decorum**. Employee agrees to maintain personal decorum in a manner befitting PPIH and reflects a positive image of PPIH upon all persons Employee encounters at any time, whether during Employee's business for PPIH or not.

Executive Employment Agreement – 3

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. **Protection of Good Will**. Employee acknowledges that while carrying out, performing and fulfilling Employee's duties to PPIH, Employee will be given access to and entrusted with Confidential Information relating to PPIH's Business and Clients. Employee recognizes that (i) the good will of PPIH depends upon, among other things, keeping the Confidential Information confidential and that the unauthorized disclosure of the Confidential Information would irreparably damage PPIH, and (ii) disclosure of any Confidential Information to a Competing Business against PPIH or to the general public would be highly detrimental to PPIH. Employee agrees to do his or her personal best to protect the good will of PPIH in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. **Conflict of Interest**. Employee shall conduct all work for PPIH with honesty, loyalty, and integrity. For this reason, Employee shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Not hold, directly or indirectly, a financial interest in excess of two percent in any business that provides the same goods or services as PPIH;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Not hold, directly or indirectly, a financial interest in excess of two percent in any business that provides goods or services to PPIH;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Not hold, directly or directly, a financial interest in excess of two percent in any business that purchases goods or services from PPIH and repackages and\or resells those goods or services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Report to PPIH if any family member or relative of employee works for or with a business that provides the same goods or services as PPIH;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Report any offer of employment received by Employee from a Client or vendor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. Report any attempted bribe of any kind made to Employee which could affect Employee's judgment in acting on behalf of PPIH even if it does not have that affect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. Not borrow money from or lend any money to a Client or vendor of PPIH; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. Not accept any gift or other consideration from a Client, vendor or prospective Client or vendor.

Notwithstanding the foregoing, Employee may own stock of publicly traded companies, even if such ownership exceeds two percent.

&nbsp;&nbsp;&nbsp;&nbsp;3. **Term of Employment**. Employee's service with PPIH shall begin on June 12, 2025 (the "Employment Commencement Date") and shall continue for a period of three years (the "Initial Term"), and then automatically renew annually for up to two successive one-year terms (each, a "Renewal Term", together with the Initial Term, the "Term") unless sooner terminated pursuant to Section 5 of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;4. **Compensation and Benefits**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. **Base Salary**. Employee shall be paid a base salary of $450,000.00 annually (the "Base Salary"), subject to applicable federal, state, and local withholding, such Base Salary to be paid to Employee in the same manner and on the same payroll schedule in which similarly situated employees are paid. Employee's Base Salary will be reviewed annually on a fiscal year basis and adjusted, in the sole discretion of the Board of Directors, if appropriate, by the Board of Directors based on performance and external benchmarking of market compensation for equivalent positions. Timing of any adjustments will be aligned to overall PPIH annual salary review. Should the Board of Directors reduce the base salary, they shall endeavor to provide Employee with 60 days' notice prior to such reduction becoming effective.

Executive Employment Agreement – 4

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. **Incentive Compensation**. Employee shall be eligible to participate in incentive compensation programs available to other similarly situated executives of PPIH as outlined below. Nothing in this Agreement shall be deemed to require the payment of bonuses, awards, or incentive compensation to Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. **Short Term Incentive (STI)**. Employee will be eligible to receive Short Term Incentive in the form of an annual cash bonus opportunity with a target incentive set at 100% of base salary. Performance measures applicable to the STI bonus will be based on PPIH performance metrics aligned to financial and strategic plans approved by the Board of Directors. Bonus payment award and timing will align with corporate annual bonus payouts following completion of the fiscal year. For the first fiscal year of the Term, bonus eligibility will be pro-rata for the portion of the fiscal year 2025 worked and based on partial year metrics for the same time period. Except as otherwise stated herein, to be eligible for the STI bonus, Employee must be employed by PPIH upon determination of the STI and approval thereof by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. **Long Term Incentive (LTI)**. Employee will be eligible to receive Long Term Incentive in the form of Restricted Stock and Cash Payments with a target annual award of 100% of base salary, and prepared pursuant to the terms of the PPIH Long Term Incentive Plan then in effect. Under PPIH's current plan, Restricted Stock and Cash Awards would be granted that vests over a three-year period, with 1/3 vesting at the end of each anniversary of the grant. The actual award may be adjusted up or down based on compensation benchmarking and/or performance as determined in good faith by the Board of Directors. The Board of Directors reserves the right to prospectively amend the PPIH Long Term Incentive Plan and terms as it deems necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. **Employee Benefits**. Employee shall be eligible to participate in all employee benefit plans, policies, programs, gratuity, or perquisites made available by PPIH to similarly situated employees. Notwithstanding anything herein to the contrary, the terms and conditions of Employee's participation in PPIH's employee benefit plans, policies, programs, or perquisites shall be governed by the terms of each such plan, policy, or program. Complete details of the plans including Health, Dental, Retirement, and Incentives will be provided separately. Employee benefits may be changed by PPIH from time to time and are not guaranteed or material.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. **Paid Time Off**. Employee shall be entitled to paid time off consistent with PPIH programs to provide such paid time off for similarly situated employees of PPIH as changed from time to time by PPIH during each year of the Agreement (currently four weeks). Such paid time off shall accrue and expire according to PPIH's then-existing policies for similarly situated senior executives. PPIH agrees to accommodate reasonable requests to take such paid time off based upon the reasonable business needs of PPIH. Employee agrees not to take more than 10 consecutive days paid time off without consulting the Chairman of the Board of Directors and obtaining written approval. In the event of termination of this Agreement for any reason, Employee shall not be entitled to payment of any accrued, but unused, paid time off.

Executive Employment Agreement – 5

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.  **<u>Expenses</u>** . Unless and until the Agreement is terminated for any reason, and in accordance with general PPIH policies which may subject purchases to prior approval, Employee shall be entitled to use of a corporate credit account for payment of all reasonable and necessary business expenses incurred by Employee in the performance of Employee's duties and obligations as determined from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.  **<u>Directors and Officers Liability Coverage</u>** . PPIH shall maintain, in good standing, a policy protecting its directors and officers, including Employee, for so long as Employee occupies an officer or director position within PPIH, from liability for wrongful acts to third-parties as defined under such policy as maintained or changed by PPIH from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.  **<u>Company Vehicle</u>** . PPIH agrees to provide a company owned vehicle with an approximate value of $100,000.00 (including taxes) for Employee's use in the course and scope of PPIH's business for so long as Employee: (i) is employed by PPIH, (ii) maintains an unrestricted location appropriate driving licenses, (iii) complies with all maintenance and registration requirements to maintain the vehicle in good condition and authorized to drive on United States roadways, (iv) does not materially alter the vehicle in a manner which might permanently impair its value, (v) exercises professionalism and decorum while using the vehicle, (vi) complies with all PPIH vehicle safety and driving requirements, as set forth from time-to-time; (vii) remains eligible to be insured as a driver at acceptable rates, (viii) and has no citations, indictments, or convictions for impaired driving. Employee agrees to: (i) properly maintain said vehicle in compliance with the vehicle's standard maintenance program, (ii) submit to periodic driver record checks upon PPIH's request, (iii) provide the Board of Directors notification of any citation, indictment, or conviction for impaired driving, and (iv) not to lend the vehicle to third-parties without approval from the Board of Directors. PPIH reserves the right to convert this fringe benefit to a reasonably comparable vehicle allowance at any time. At intervals not less than three years, PPIH and Employee will evaluate replacement of the vehicle provided.

&nbsp;&nbsp;&nbsp;&nbsp;5. **Termination of Employment**. Employee's employment with PPIH may be terminated in accordance with any of the following provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. **Termination by Employee Without Reason**. Employee may terminate Employee's employment and this Agreement upon 90 days' written notice to the Chairman of the Board of Directors. During the notice period, Employee must fulfill all duties and responsibilities set forth in Exhibit A, or any modification thereto, and use his best efforts to train and support his replacement, if any. Failure to comply with this requirement may result in Termination for Cause described below, but otherwise Employee's compensation, including incentive compensation, and benefits will remain unchanged during the notification period. During such notice period PPIH shall have the right to relieve Employee of some or all of Employee's duties, provided PPIH maintains employee's compensation, including incentive compensation, and benefits throughout the notice period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. **Termination by PPIH Without Cause**. PPIH may terminate Employee's employment at any time during the term of this Agreement upon 90 days' written notice to the Employee. During the notice period, Employee must fulfill all of Employee's duties and responsibilities set forth in Exhibit A, or any modification thereto, and use Employee's best efforts to train and support Employee's replacement, if any. Failure of Employee to comply with this requirement may result in termination for Cause described below, but otherwise Employee's compensation, including incentive compensation, and benefits will remain unchanged during the notification period. During such notice period PPIH shall have the right to relieve Employee of some or all of Employee's duties, provided PPIH maintains employee's compensation, including incentive compensation, and benefits throughout the notice period. Should PPIH terminate Employee's employment without Cause, contingent on Employee signing a release of liability in favor of PPIH generally in the form attached hereto as Exhibit B (adjusted as necessary to the local release requirements effective based on Employee's residence at the time) and resigning from all officer and Board of Directors positions, Employee will receive 12 months of Severance (defined below) plus pro-rata STI for the fiscal year of termination at 100% of target. All rights to any equity or other stock awards shall be addressed pursuant to the terms of the agreements documenting the grant thereof.

Executive Employment Agreement – 6

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. **Termination by Employee for Good Reason**. Employee may terminate Employee's employment and this Agreement for Good Reason (as defined below) subject to the limitations set forth in this <u>Section</u> by giving written notice to the Chairman of the Board of Directors. Employee must fulfill all of Employee's duties and responsibilities set forth above during any applicable notice period. Failure of Employee to comply with this requirement may result in Termination for Cause described below, but otherwise Employee's compensation, including incentive compensation, and benefits will remain unchanged during the notification period. Contingent on Employee signing a release of liability in favor of PPIH generally in the form attached hereto as Exhibit B (adjusted as necessary to the local release requirements effective based on Employee's residence at the time) and resigning from all officer and Board of Directors positions, Employee will receive 12 months of Severance (defined below) plus a pro-rata STI for the fiscal year of termination at 100% of target. All rights to any equity or other stock awards shall be addressed pursuant to the terms of the agreements documenting the grant thereof.

For the purposes of this Agreement, "Good Reason" includes: (i) material diminution (a reduction of 10% or more) in Employee's Base Salary unapproved by Employee which remains uncured upon 30 days' written notice by Employee reciting this provision as a basis for possible termination of the Agreement; (ii) material diminution in Employee's authority, duties or responsibilities which remains uncured upon 30 days' written notice by Employee reciting this provision as a basis for possible termination of the Agreement; (iii) a requirement that Employee report solely to a corporate officer or employee of the PPIH instead of reporting to the Board of Directors which remains uncured upon 30 days' written notice by Employee reciting this provision as a basis for possible termination of the Agreement; (iv) a material breach by PPIH of this Agreement which remains uncured upon 30 days' written notice by Employee reciting this provision as a basis for possible termination of the Agreement; or (v) PPIH files for or seeks bankruptcy protection. Good Reason shall not be considered to exist at any time that the Employee could be terminated for Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. **Termination by PPIH with Cause**. Subject to the limitations of this Section, PPIH may, at any time and without notice, terminate the Employee with "Cause." Termination with "Cause" shall include but not be limited to termination based upon any of the following: (i) Employee is indicted for a felony or crime of moral turpitude such as fraud, misappropriation, embezzlement, theft or other crime involving dishonesty; (ii) Employee engages in actions which endanger or are reasonably likely to endanger the health or safety of any employee or other person affiliated with PPIH; (iii) Employee's failure to commence employment with PPIH within five calendar days of the Employment Commencement Date; (iv) Employee is adjudicated incompetent or insane, or is found by PPIH to be addicted to drugs by a medical professional selected by PPIH (or refusing to submit to such determination), or to have an addiction to alcohol as determined by the aforementioned medical professional which interferes with Employee's ability to perform Employee's duties; (v) Employee engages in conduct amounting to fraud, dishonesty, gross negligence, self-dealing, willful misconduct; (vi) Employee engages in conduct that is unprofessional, unethical, or detrimental to the reputation, character and standing of PPIH, as determined in the sole discretion of PPIH, provided that PPIH provides Employee with notice of such conduct and 14 days to cure; (vi) Employee's intoxication while on duty or Employee's illegal use or possession of drugs or intoxicants; (vii) insubordination or deliberate refusal to follow the lawful instructions of the Board of Directors of PPIH, provided that PPIH provides Employee with notice of such conduct and 14 days to cure; (viii) breach of the Employee's duty of loyalty, including the diversion or usurpation of corporate opportunities properly belonging to PPIH, provided that PPIH provides Employee with notice of such conduct and 14 days to cure; (ix) Employee's failure to abide by the terms of this Agreement or any policy, procedure or directive of PPIH as established and revised from time to time and Employee fails to correct such conduct within 14 days of written notice of such violation by PPIH; (x) Employee engages in actions which damage or are reasonably likely to damage the reputation of PPIH and Employee fails to correct such conduct (if such conduct may reasonably corrected as determined in the sole discretion of PPIH) within 14 days of written notice of such violation by PPIH; (xi) Employee commits an action which PPIH, in its sole discretion, determines is likely to subject PPIH to legal liability, as determined by a court or arbitrator, including, but not limited to, commission of acts which violate: (a) the Americans with Disabilities Act of 1990, as amended; (b) Title VII of the Civil Rights Act of 1964, as amended and including 42 U.S.C. Sec 2000(e) et seq.; (c) the Civil Rights Act of 1991; (d) The Civil Rights Acts of 1866, 1871 and 1964, as amended; (e) 42 U.S.C. Sec 1981; (f) the Age Discrimination in Employment Act of 1967, as amended; (g) the Texas Commission on Human Rights Act of 1983, as amended; or other law; (xii) Employee fails to maintain appropriate decorum in and out of the workplace in a way that PPIH, in its sole discretion, determines negatively impacts the reputation or good will of PPIH and Employee fails to correct such conduct (if such conduct may reasonably corrected as determined in the sole discretion of PPIH) within 14 days of written notice of such violation by PPIH; or (xiii) Employee seeks federal bankruptcy protection and, in the sole discretion of PPIH, such action is determined to reflect negatively upon the reputation of PPIH. Note, PPIH shall be entitled, in its sole discretion, to remove Employee from some or all of Employee's duties during any notice and cure period if it deems it appropriate to do so. Such change in duties shall not support termination for Good Reason by Employee.

Executive Employment Agreement – 7

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Termination with Cause will result in immediate termination if not cured as set forth above. In the event of termination with Cause, Employee shall not be entitled to Severance or STI of any kind. Further, in the event of termination with Cause, all rights to any equity or other stock awards shall be addressed pursuant to the terms of the agreements documenting the grant thereof.

In the event Employee is terminated with Cause and it is subsequently determined Cause did not exist, Employee's termination shall be deemed without Cause and Employee shall be entitled only to the benefits to which Employee would be entitled if PPIH terminated Employee's employment without Cause and Employee agrees Employee shall not seek or accept any other remedy available at law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. **Termination by Death or Disability**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. **Death**. In the event of Employee's death, the Employee's employment and this Agreement shall immediately and automatically terminate. In the event of termination by death, Employee shall not receive any STI which was not accrued at the time of death, but shall be entitled to any Base Salary and reimbursable expenses through the date of passing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. **Disability**. PPIH may terminate Employee's employment hereunder, immediately upon notice to Employee, in the event that Employee becomes disabled during the term through any illness, injury, accident or condition of either a physical or psychological nature and, as a result, PPIH determines in its sole discretion that Employee is unable to perform the essential functions of Employee's duties hereunder, even with reasonable accommodation, for a period of not less than 60 days during any consecutive 365 days during the term ("Disability"). Except as expressly provided herein or in any PPIH benefit plan, in the event of such termination, all obligations of PPIH will terminate as of the date of such termination. In the event of termination by Disability, Employee shall not receive any STI which was not accrued at the time a disability is declared.

Executive Employment Agreement – 8

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. **Change in Control (CIC)**. If a Change in Control occurs and Employee experiences material diminution in Employee's authority, title, duties or responsibilities which remains uncured upon 30 days' written notice by Employee within the 12 months following such Change in Control, Employee shall be entitled to terminate the Agreement with Good Reason and all rights to any equity or other stock awards shall be addressed pursuant to the terms of the agreements documenting the grant thereof. If a Change in Control occurs and Employee is terminated without cause by PPIH before the end of the Initial Term, the Employee shall, contingent on Employee signing a release of liability in favor of PPIH generally in the form attached hereto as Exhibit B (adjusted as necessary to the local release requirements effective based on Employee's residence at the time) and resigning from all officer and Board of Directors positions, receive the greater of: (i) 12 months of Severance, or (ii) Severance equal to the number of months remaining in the Initial Term at the time of notice of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. **Severance**. Severance means a payment equal to Employee's annual Base Salary plus continuation of group health and welfare benefits, if any, for the severance period. Severance will be paid in installments for the length of the Severance period, beginning with the first payroll period on or after 30 days after Employee signs the release of liability in favor of PPIH generally in the form attached hereto as Exhibit B (adjusted as necessary to the local release requirements effective based on Employee's residence at the time). All Severance payments shall be treated as wages from which all necessary and required state and federal deductions shall be made. Employee must be available during the severance period as needed to provide transitional guidance and assistance to PPIH. Failure to comply with this obligation shall eliminate PPIH's obligation to make continued payments of Severance amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. **Release**. Any post-termination Severance or benefits are subject to Employee signing a release of liability in favor of PPIH generally in the form attached hereto as Exhibit B (adjusted as necessary to the local release requirements effective based on Employee's residence at the time).

&nbsp;&nbsp;&nbsp;&nbsp;6.  **<u>Non-Disclosure</u>** . Employee agrees to permanently secure and protect PPIH's Confidential Information in a manner consistent with the maintenance of PPIH's confidential and proprietary rights in the Confidential Information. Employee further agrees not to disclose to PPIH or any PPIH employee any confidential information Employee may have received which belongs to a former employer as PPIH has no desire to learn the secrets of any other company in the industry.

&nbsp;&nbsp;&nbsp;&nbsp;7.  **<u>Non-Disparagement</u>** . Except as noted in this <u>Section</u>, the Parties each promise to refrain from making any disparaging remarks about the other following the termination of the employment relationship between them. PPIH may, however, offer a faithful account of Employee's service to anyone seeking a recommendation or account for future employment of Employee. For purposes of this <u>Section</u>, PPIH's duty is limited to the executive leadership team and Board of Directors. Employee may make any appropriate good faith charge to any governmental agency regarding the actions of PPIH, including, but not limited to, making a report to the Securities and Exchange Commission regarding the actions of PPIH.

&nbsp;&nbsp;&nbsp;&nbsp;8.  **<u>Non-Solicitation of Employees and Contractors</u>** . During employment and for one years from the date of termination of this Agreement, Employee will not, directly or indirectly, acting individually or on behalf of another in any capacity, without the prior written consent of PPIH, attempt to hire, hire, or solicit, recruit or otherwise induce any person or entity Employee engaged with on behalf of PPIH that is (or was within three months of termination of this Agreement) an employee or independent contractor providing services to PPIH, to terminate or curtail their business relationship with PPIH.

Executive Employment Agreement – 9

------

&nbsp;&nbsp;&nbsp;&nbsp;9.  **<u>Non-Solicitation of Clients and Referral Sources</u>** . During employment and for one years from the date of termination of this Agreement, Employee will not, directly or indirectly, acting individually or on behalf of another in any capacity, without the prior written consent of PPIH, solicit or accept any business from any Client of PPIH, in the Geographic Area and who Employee was aware of, for any purpose that might cause the Client to curtail or terminate the Client's business or prospective business with PPIH, or solicit or accept referrals of business from any Referral Source.

&nbsp;&nbsp;&nbsp;&nbsp;10.  **<u>Covenant Not to Compete</u>** . Employee agrees that during employment and for a period of one years after ceasing to be employed by PPIH for any reason, Employee will not, directly or indirectly (for the benefit of Employee or another), through any kind of ownership or as an employee or agent, without the prior written consent of PPIH, participate in a Competing Business or compete with PPIH, in any respect, in the Geographic Area.

&nbsp;&nbsp;&nbsp;&nbsp;11.  **<u>Geographic Area</u>** . "Geographic Area" shall mean North America (United States, Canada and Mexico), the Middle East (Bahrain, Cyprus, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Palestine, Qatar, Saudi Arabia, the Syrian Arab Republic, Turkey, the United Arab Emirates and Yemen) and India. Employee may not avoid the purpose or intent of <u>Section 11</u> by engaging in conduct from a remote location outside of the Geographic Area through means such as telecommunication, written correspondence, computer generated or assisted communications or other similar methods that is targeted to individuals or entities within the geographically limited area.

&nbsp;&nbsp;&nbsp;&nbsp;12.  **<u>Obligations from Former Employment</u>** . Employee represents that Employee is not subject to a non-competition or non-solicitation agreement for any prior employer as of the Effective Date. Separately, Employee agrees not to breach any agreement to keep confidential any proprietary information, knowledge, or data acquired by Employee under an obligation to maintain such information in confidence because of any prior employment for the period required, if any, under such obligation.

&nbsp;&nbsp;&nbsp;&nbsp;13.  **<u>Extension Due to Breach</u>** . For any period during which Employee is in breach of the covenants set out in <u>Sections 8, 9 and 10</u> or during which the consequences of breach of said Section injure PPIH, Employee agrees the obligations in the affected Section shall be extended for the period of the breach or the period during which the consequences of the breach injure PPIH, up to the length of restriction of the breached <u>Section</u>.

&nbsp;&nbsp;&nbsp;&nbsp;14.  **<u>Confidential Information, Trade Secrets, and Specialized Training</u>** . PPIH promises to provide Employee access to some or all of PPIH's Confidential Information and\or specific trade secrets related to PPIH's Business. PPIH further promises to provide Employee specialized training related to PPIH's Business.

&nbsp;&nbsp;&nbsp;&nbsp;15.  **<u>Corporate Opportunity</u>** . Employee acknowledges that while employed by PPIH, every business opportunity which Employee encounters which is reasonably similar to PPIH's present or prospective business dealings is owned first by PPIH. Before personally engaging in any business opportunity of this type Employee shall present, by written notice to the Chairman of the Board of Directors, a good faith full description of the business opportunity outlining the details of the opportunity, the timeframe in which such opportunity must reasonably be pursued for potential success, and clearly stating Employee's desire to personally pursue the opportunity if passed on by PPIH. PPIH shall have 30 days from receipt of notice during which to consider the opportunity. If PPIH does not accept the opportunity in writing within 30 days of notice by Employee, Employee may engage in the business opportunity so long as engaging in such opportunity does not in any way infringe upon any obligation of Employee under this Agreement or interfere with Employee's ability to perform Employee's responsibilities to PPIH under the Agreement.

Executive Employment Agreement – 10

------

&nbsp;&nbsp;&nbsp;&nbsp;16.  **<u>Mediation</u>** . If either of the Parties fails to comply with or perform any term, provision or covenant of this Agreement except those contained in <u>Sections 6-10</u>, then the Parties shall submit their dispute to mediation at which the Parties each agree to negotiate in good faith to resolve the dispute prior to institution of litigation or arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;17. **Arbitration**. All Workplace Claims which arise between Employee and PPIH shall be submitted to binding arbitration before a single arbitrator. EMPLOYEE AND COMPANY ARE BOTH REQUIRED TO PARTICIPATE IN MANDATORY, BINDING ARBITRATION AS THEIR SOLE REMEDY, AND BOTH WILL GIVE UP THEIR RIGHT OF A TRIAL BY JURY OF ANY LEGAL CLAIM THAT EITHER MAY HAVE AGAINST THE OTHER—EXCEPT AS EXPRESSLY PROVIDED HEREIN. The Parties agree that PPIH's business involves interstate commerce. The Parties disclaim application of state arbitration law and desire this <u>Section</u> be governed by the Federal Arbitration Act and ask that: (a) this <u>Section</u> be read to the greatest extent possible in favor of arbitration; and (b) that the agreement be reformed if necessary to the greatest extent possible provide for arbitration. The Parties agree that this <u>Section</u> does not excuse a party from complying with and exhausting any administrative remedy or process through the EEOC or equivalent state agency. The Parties agree that, aside from Employee's filing fee, PPIH shall bear the costs of the arbitrator and administration of the arbitration. The Parties desire to arbitrate Workplace Claims on an individual basis and expressly waive any right to arbitrate as part of a class representative, class member or in a collective action, and there shall be no joinder or consolidation of Parties. The Parties agree that punitive, compensatory, and consequential damages may not be recovered by either party for any Workplace Claim. The Parties further agree that the selected arbitrator shall have full authority to determine: (a) the enforceability and validity of this <u>Section</u> and this Agreement (including, but not limited to, whether the agreement to arbitrate fails for lack of consideration, whether the agreement is subject to a state law defense, whether an oral agreement affects the validity of this agreement to arbitrate, and whether a valid agreement to arbitrate was formed between the Parties); (b) whether a particular claim or controversy between the Parties is a Workplace Claim covered by this <u>Section</u>; and (c) procedural questions concerning whether a claim should go forward in arbitration, including, but not limited to, compliance with notice, time limits, and other prerequisites. The Parties agree that any arbitration under this Agreement shall take place in Houston, Texas.

&nbsp;&nbsp;&nbsp;&nbsp;18.  **<u>Third-Party Beneficiaries</u>** . Except as otherwise provided in this Agreement, this Agreement is intended to benefit only the Parties and may be enforced solely by the Parties, their successors in interest or permitted assigns. It is not intended to, and shall not, create rights, remedies or benefits of any character whatsoever in favor of any persons, corporations, associations, or entities other than the Parties, except as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;19. **Code of Conduct and Compliance with Laws**. Employee agrees to be bound by the provisions of PPIH Code of Conduct and Global Anti-Corruption Policy and Procedure.

&nbsp;&nbsp;&nbsp;&nbsp;20. **Parachute Payment Limitation**. Notwithstanding any contrary provision above, if Employee is a " <u>disqualified individual</u> " (as defined in Section 280G of the Internal Revenue Code), and the CIC Benefits, together with any other payments which the Employee has the right to receive from PPIH, would constitute a " <u>parachute payment</u> " (as defined in Section 280G of the Code), the payments and benefits provided under this Agreement shall be either (i) reduced (but not below zero) so that the aggregate present value of such payments and benefits received by the Employee from PPIH shall be $1.00 less than three times Employee's " <u>base amount</u> " (as defined in Section 280G of the Code) and so that no portion of such payments received by Employee shall be subject to the excise tax imposed by Section 4999 of the Code, or (ii) paid in full, whichever produces the better net after-tax result for Employee (taking into account any applicable excise tax under Section 4999 of the Code and any applicable income tax). If a reduced payment is made to Employee pursuant to clause (i) above and through error or otherwise that payment, when aggregated with other payments from PPIH used in determining if a parachute payment exists, exceeds $1.00 less than three times Employee's base amount, Employee must immediately repay such excess to PPIH upon notification that an overpayment has been made.

Executive Employment Agreement – 11

------

&nbsp;&nbsp;&nbsp;&nbsp;23. **Indemnification and Insurance**. PPIH will defend, indemnify and hold Employee, his heirs, executors and administrators harmless against and in respect of any and all damages, losses, obligations, liabilities, claims, deficiencies, costs and expenses (including, but not limited to, attorneys' fees and other costs and expenses incident to any suit, action, investigation, claim or proceeding) suffered, sustained, incurred or required to be paid by Employee by reason of or on account of Employee's performance of work on behalf of PPIH, except to the extent due to any act or omission by Employee that constitutes a breach of this Agreement or is outside the scope of his authority under this Agreement. Employee shall cooperate with reasonable requests of PPIH in connection with any indemnifiable claim and shall provide such documentation or information which is reasonably necessary to defend the indemnifiable claim.

&nbsp;&nbsp;&nbsp;&nbsp;24. **409A Provision**. For purposes of this Agreement the term "termination of employment" and similar terms relating to Executive's termination of employment mean a "separation from service" as that term is defined under Section 409A of the Internal Revenue Code of 1986, as amended, and the final regulations issued thereunder ("Section 409A"). PPIH and Executive intend that this Agreement be exempt from or comply in form and operation with the requirements of Section 409A. To the extent permitted by applicable Department of Treasury/Internal Revenue Service guidance, or law or regulation, PPIH and Executive will take reasonable actions to reform this Agreement or any actions taken pursuant to Executive's and PPIH's operation of this Agreement in order to comply with Section 409A. All reimbursements under this Agreement shall be made on or prior to the last day of the taxable year following the taxable year in which the expenses being reimbursed were incurred by Executive, any right to reimbursement or to in kind benefits is not subject to liquidation or exchange for another benefit, and no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year. Notwithstanding any other provision of this Agreement, in no event shall PPIH be liable for any additional tax, interest or penalty imposed upon or other detriment suffered by Executive under Section 409A or for any damages suffered by Executive for any failure of any provision of this Agreement to be exempt from or to comply with Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;25. **General Provisions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. **Notices**. All notices and other communications required or permitted by this Agreement to be delivered by PPIH or Employee to the other party shall be delivered in writing to the address shown below, either personally, or by FedEx, to the address for such party specified below or to such other address as the party may from time to time advise the other party, and shall be deemed given and received as of actual personal delivery, or upon the date or actual receipt shown on any FedEx delivery, as the case may be.

Perma-Pipe International Holdings, Inc.:

25025 Interstate 45

Suite 200

The Woodlands, Texas 77380 USA

Attention: Chairman of the Board of Directors

Executive Employment Agreement – 12

------

Saleh Sagr

25025 Interstate 45

Suite 200

The Woodlands, Texas 77380 USA

(Or such other address in PPIH's employment records.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. **Amendments and Termination; Entire Agreement**. This Agreement may not be amended or terminated except in writing executed by all of the Parties. This Agreement constitutes the entire agreement of PPIH and Employee relating to the subject matter hereof and supersedes all prior oral and written understandings and agreements relating to such subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. **Successors and Assigns**. The rights and obligations of the Parties hereunder are not assignable to another person without prior written consent; provided, however, that PPIH, without obtaining Employee's consent, may assign its rights and obligations hereunder to a wholly-owned subsidiary and provided further that any post-employment restrictions shall be assignable by PPIH to any entity which purchases all or substantially all of PPIH's assets. In addition, in the event of any sale, transfer or other disposition of all or substantially all of PPIH's assets or business, whether by merger, consolidation or otherwise, PPIH may assign this Agreement and its rights hereunder without obtaining Employee's consent, provided that the assignee assumes all of the obligations of PPIH hereunder, and upon such assignment and assumption, the Employee shall have no right to look to PPIH for obligations arising hereunder after the effective date of such assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. **Severability Provisions Subject to Applicable Law**. All provisions of this Agreement shall be applicable only to the extent that they do not violate any applicable law and are intended to be limited to the extent necessary so that they will not render this Agreement invalid, illegal or unenforceable under any applicable law. If any provision of this Agreement or any application thereof shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of other provisions of this Agreement or of any other application of such provision shall in no way be affected thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. **Waiver of Rights**. No waiver by PPIH or Employee of a right or remedy hereunder shall be deemed to be a waiver of any other right or remedy or of any subsequent right or remedy of the same kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. **Definitions, Headings, and Number**. A term defined in any part of this Agreement shall have the defined meaning wherever such term is used herein. The headings contained in this Agreement are for reference purposes only and shall not affect in any manner the meaning or interpretation of this Agreement. Where appropriate to the context of this Agreement, use of the singular shall be deemed also to refer to the plural, and use of the plural to the singular.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. **Counterparts**. This Agreement may be executed in separate counterparts, each of which shall be deemed an original but both of which taken together shall constitute but one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. **Applicable Law, Forum, and Venue**. This Agreement shall be governed and construed exclusively in accordance with the laws of the State of Texas (including its statutes of limitations) without regard to the conflicts of laws or principles thereof with respect to all claims or causes of action (whether in contract, tort, or under statute) arising out of this Agreement, representations made concerning entry into this Agreement and performance thereunder. The Parties agree that Texas shall be the forum for any action or suit related to this Agreement, including, but not limited to, any claim affecting its validity, construction, effect, performance or termination. The Parties further agree that the venue for any such action or suit shall exclusively be the state or federal courts sitting in Harris County, Texas.

Executive Employment Agreement – 13

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. **Waiver of Trial by Jury**. **EACH OF THE PARTIES HERETO HEREBY KNOWINGLY AND VOLUNTARILY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION BASED ON ANY MATTER ARISING OUT OF, OR IN CONNECTION WITH, OR RELATING TO THIS AGREEMENT WHICH IS NOT REQUIRED TO BE ARBITRATED UNDER THIS AGREEMENT.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. **Attorney Fees**. Should PPIH be required to enforce the terms of this Agreement by court action or bring court action against Employee for breach of this Agreement or any breach of fiduciary duty by Employee, PPIH shall be entitled to recover all of its attorney fees and costs of suit from Employee, provided it is the prevailing party in such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. **No Construction Against Drafter**. Employee is encouraged to seek the advice of legal counsel in reviewing this Agreement and has had an opportunity to review and consider the Agreement before entering it. Therefore, in any construction to be made of this Agreement, the Agreement shall not be construed for or against either Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xx. **Defend Trade Secrets Act Notice**. An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that is made in confidence to a Federal, State, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law. An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal; and does not disclose the trade secret, except pursuant to court order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m. **Travel.** PPIH agrees to reimburse Employee up to $20,000 for four roundtrip, business class airfare (for Employee and three family members) once per year between the United Kingdom and Abu Dhabi.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n. **Return Shipping.** PPIH agrees to pay for or reimburse Employee, at Employee's discretion, the reasonable cost of shipping his property and belongings in one 40-foot container between the United Kingdom and the Middle East at the conclusion/separation/termination of Employee's employment for any reason.

This Agreement shall be effective as of September 9, 2025 (the "Effective Date")

[SIGNATURE PAGES TO FOLLOW]

Executive Employment Agreement – 14

------

IN WITNESS WHEREOF, PPIH and Employee have executed and delivered this Agreement as of the date written below. Date: ________________________

---

| | | |
|:---|:---|:---|
| Employee: | PPIH: | PPIH: |
| Saleh Sagr | Perma-Pipe International Holdings, Inc | Perma-Pipe International Holdings, Inc |
| /s/ Saleh N. Sagr | By: | /s/ Jon Biro |
| Individually |  | Its duly authorized agent |

---

Executive Employment Agreement – 15

------

**<u>Exhibit A</u>**

See attached Job Description

Executive Employment Agreement – 16

------

**CHIEF EXECUTIVE OFFICER**

The Chief Executive Officer (CEO) is responsible for the overall leadership, strategic direction, and operational management of PPIH. At the instruction of PPIH's Board of Directors, the CEO:

● Provides vision, direction and leadership and will have overall strategic, management and P&L responsibility for PPIH.

● Holds responsibility for the development and implementation of comprehensive strategic plans, annual business plans, objectives and strategies for sales and operations, and overall financial performance.

● Renders service to the very best of the CEO's ability all duties assigned by the Board of Directors.

● Executes the instructions of the Board of Directors in compliance with all PPIH policies, including, but not limited to PPIH's Delegation of Authority policy, as amended from time to time.

In pursuit of these objectives the CEO shall:

● Foster an organization with underlying values in safety, integrity and ethics.

● Relentlessly pursue, achieve and exceed cost, revenue and margin targets; develop contingency plans to overcome known and potential obstacles and ensure the achievement of financial and other business goals.

● Provide leadership to a team of key managers to develop and implement systems, practices and procedures that will lead to improved and sustained profitability, growth, efficiency in operations and shareholder value.

● Establish a high performance, results-driven culture that meets or exceeds commitments.

● Create a high performance, collaborative, hands on leadership team.

● Ensure a process is in place which provides robust sales and marketing plans and forecasts.

● Ensure a system is in place which drives operational excellence, continuous improvement and thoughtful innovation.

● Prioritize the best growth and investment strategies to pursue given limited resources.

● Instill a sense of urgency in the development and execution of sales and business plans and strategies.

● Oversee development and commercialization of new products and services and entry into new markets.

● Ensure connectivity to the competitive landscape including market trends, tracking key competitors and utilizing this intelligence and information to drive market differentiation and maintain and increase market share.

Executive Employment Agreement – 17

------

● Provide visibility and strong communication skills to internal and external stakeholders. Identify and evaluate attractiveness of potential new markets (geographic and/or product) for growth in the Americas region.

● Provide business development and client relationship leadership for and representation of PPIH.

● Serve as the public face of PPIH, leading PPIH's interactions with the investor community and driving sophisticated communication strategies.

● Lead PPIH's M&A strategies, with a specific focus on growth markets in the Middle East and North America.

● Cultivate a healthy corporate culture, one that is positive, engaging, and productive.

● Ensure PPIH's financial health by overseeing budgeting, forecasting, and financial planning processes, leveraging experience and knowledge to drive strategy and growth.

● Leverage international experience, particularly in the Middle East, to drive growth and new business ventures.

● Work closely with international executives, ensuring their engagement and contribution to PPIH's overall strategy.

● Direct the work of the CFO, SVP of MENA, SVP of Americas, VP of PermAlert and VP of HR, ensuring seamless cooperation and efficient operations.

● Broadly engage with industries such as energy, industrial, tech and others, to drive company growth.

● Utilize experience from large industrial companies or similar, to manage PPIH's public market exposure and M&A activities.

● Identify and form strategic partnerships with businesses that align with PPIH's growth and development objectives.

● Monitor and analyze market trends to inform strategic decision-making, ensuring PPIH remains competitive.

● Foster a collaborative environment among senior executives, promoting open communication and alignment of objectives.

● Engage with stakeholders and board members regularly to ensure transparency and collective decision-making.

● Drive PPIH's growth in various sectors, including oil and gas, industrial and tech leveraging prior experience and industry knowledge.

● Oversee potential divestiture processes, ensuring they are strategically beneficial and aligned with PPIH's overall objectives.

● Drive PPIH's R&D efforts.

Executive Employment Agreement – 18

------

● Foster innovation within PPIH, encouraging creative problem-solving and the development of new ideas.

● Identify and cultivate potential leaders within the organization, ensuring succession planning and continuity.

● Uphold and promote PPIH's values and ethics, setting an example of good corporate citizenship.

● Manage potential risks to PPIH, implementing strategies to mitigate them.

**PPIH reserves the right to change or modify the duties of this position from time to time to meet its business needs.**

#### Executive Employment Agreement – 19

------

**<u>Exhibit B</u>**

See attached Separation and Release Agreement

Executive Employment Agreement – 20

------

**<u>SEPARATION AND RELEASE AGREEMENT</u>**

This Separation and Release Agreement (the "Agreement") is entered between the undersigned individual (the "Former Employee") and _______________________. (the "PPIH").

1. In exchange for the benefits provided Former Employee under that certain Employment Agreement entered ________________________ between Former Employee and PPIH ("Employment Agreement") Former Employee enters this Agreement. Former Employee represents that PPIH has remitted to Former Employee any and all sums due to Former Employee arising from Former Employee's employment with PPIH and that Former Employee is not due or entitled to any additional sums from PPIH save under a retirement benefit program or insurance program.

2. Former Employee hereby releases PPIH and its principals, owners, directors, officers, parent companies, subsidiaries, affiliates, employees, agents and other persons acting on behalf of PPIH (collectively referred to as "the Released Parties") from all claims of whatsoever nature that Former Employee may have against the Released Parties arising from or in any way related to Former Employee's employment with PPIH. Former Employee also releases the Released Parties from all claims of whatsoever nature that Former Employee may have against the Released Parties arising from or in any way related to the termination of Former Employee's employment with PPIH, and from any and all claims that Former Employee may have against any of the Released Parties arising from any act occurring prior to the execution of this Agreement, including, without limitation, any claim, demand, action, cause of action or right, including claims for attorney's fees, based on but not limited to: (a) the Americans with Disabilities Act of 1990, as amended; (b) Tex. Hum. Res. Code § 121.001, et seq.; (c) Title VII of the Civil Rights Act of 1964, as amended and including 42 U.S.C. Sec 2000(e) et seq.; (d) the Civil Rights Act of 1991; (e) The Civil Rights Acts of 1866, 1871 and 1964, as amended; (f) 42 U.S.C. Sec 1981; (g) the Equal Pay Act of 1963; (h) the Fair Labor Standards Act, as amended; (i) the Rehabilitation Act of 1973, as amended; (j) the Age Discrimination in Employment Act of 1967, as amended; (k) the Older Workers Benefit Protection Act of 1990; (l) Chapter 21 of the Texas Labor Code (also known as the Texas Commission on Human Rights Act of 1983), as amended (including, but not limited to, Tex. Lab. Code §§21.051 – 21.055 and 21.401 – 21.405); (m) the Family Medical Leave Act of 1993, codified as 29 U.S.C. §§ 2601, et seq., as amended; (n) the Texas Workers' Compensation Act, as amended, including, but not limited to, Texas Labor Code §§ 451.001, et seq.; (o) the National Labor Relations Act; (p) the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended; (q) the Employee Retirement Income Security Act, as amended; (r) the Internal Revenue Code of 1986, as amended, including but not limited to, any claim for taxes, interest, or penalties under IRC 409A; (s) the Sarbanes Oxley Act of 2002, including 15 U.S.C. § 1514A; (t) Immigration Reform and Control Act, as amended; (u) the Occupational Safety and Health Act, as amended; (v) Genetic Nondiscrimination Act of 2008, as amended; (w) any existing employment agreement or potential entitlement under any PPIH program or plan; (x) Tex. Health & Safety Code §81.101, et seq. (the Texas communicable disease law); and (y) any other statute or law, including all suits in tort or contract, including wrongful termination and claims for reimbursement, bonus, incentives, commissions, compensation and benefits, defamation, damage to business reputation, impairment of economic opportunity, and any other claims for compensatory, statutory, or punitive damages. Former Employee expressly acknowledges and agrees that the sum referred to in Paragraph 1 above is reasonable consideration for granting this release.

Former Employee understands this release is not intended to interfere with Former Employee's right to file a charge with, or provide information regarding the activities of PPIH to, the Securities and Exchange Commission, Equal Employment Opportunity Commission, National Labor Relations Board, Department of Labor, Texas Commission on Human Rights or any other governmental agency (collectively "Governmental Agency") in connection with any claim Former Employee believes Former Employee may have against the Released Parties. However, by executing this Agreement, Former Employee hereby waives the right to recover in any proceeding Former Employee may bring before any Governmental Agency, in any proceeding brought by any Governmental Agency on Former Employee's behalf.

Executive Employment Agreement – 21

------

3. Former Employee understands that nothing in this Agreement is intended to waive claims: (a) that arise under any state's workers' compensation or unemployment laws; (b) for reimbursement of business expenses incurred on behalf of PPIH under PPIH's expense reimbursement policies; (c) for vested rights Former Employee may have under any ERISA-covered employee benefit plans as of the date Former Employee signs this Agreement, including, but not limited to COBRA benefits; (d) that may arise after Former Employee signs this Agreement; (e) to enforce or challenge the validity of this Agreement; or (f) which cannot be released.

4. In accordance with the Older Worker's Benefit Protection Act of 1990, Former Employee is aware of and acknowledges the following: (a) Former Employee is waiving all rights and claims that Former Employee has or may have under the federal Age Discrimination in Employment Act, as well as any rights or claims that Former Employee has under other federal, state, or local laws with regard to age and other employment discrimination; (b) Former Employee has been advised by PPIH to consult with an attorney prior to executing this Agreement; (c) Former Employee has a period of 21 days in which to consider this Agreement before signing it; (d) for a period of 7 days following the signing of this Agreement, Former Employee may revoke this Agreement (solely as to any claims under the federal Age Discrimination in Employment Act) and this Agreement shall not become effective and enforceable as to any claims under the federal Age Discrimination in Employment Act until that 7-day revocation period has expired; (e) Former Employee has carefully read and fully understands all of the provisions of this Agreement; (f) Former Employee knowingly and voluntarily agrees to all the terms set forth in this Agreement; and (g) Former Employee knowingly and voluntarily intends to be legally bound by this Agreement. Former Employee further agrees that, in the event Former Employee decides to revoke this Agreement as provided for by this section, Former Employee will deliver written notice to __________________ by mail (postmarked no later than the 7th day), facsimile, or email.

FORMER EMPLOYEE ACKNOWLEDGES THAT THE SEVEN DAY RIGHT TO RESCIND THIS AGREEMENT, AS NOTED IN THIS PARAGRAPH, SHALL EXTEND ONLY TO FORMER EMPLOYEE'S POTENTIAL AGE DISCRIMINATION CLAIMS. FORMER EMPLOYEE ACKNOWLEDGES AND AGREES THAT THE REMAINDER OF THE RELEASES ENUMERATED IN PARAGRAPH 3 OF THIS AGREEMENT SHALL REMAIN IN FULL FORCE AND EFFECT EVEN IF FORMER EMPLOYEE RESCINDS THE AGREEMENT AS PROVIDED BY THIS SECTION.

5. Former Employee recognizes that the benefits provided herein constitute consideration for this Agreement in that Former Employee is not entitled to benefits except in return for the execution and delivery of this Agreement. Former Employee recognizes that 10 percent of the separation pay is allocated and provided as the consideration for Former Employee's waiver of claims under the ADEA. In the event that Former Employee, in any way, challenges this release with respect to the Age Discrimination in Employment Act, Former Employee will surrender the above- referenced separate consideration back to PPIH.

6. Former Employee hereby relinquishes any right to re-employment with PPIH after Former Employee executes this Agreement. Former Employee agrees that Former Employee no longer desires employment with PPIH, and that Former Employee shall not seek, apply for, accept or otherwise pursue employment with PPIH. Former Employee acknowledges that if Former Employee re-applies for or seeks employment with PPIH, PPIH's refusal to hire Former Employee based on this provision will provide a complete defense to any claims arising from any attempt by Former Employee to apply for employment.

7. This Agreement sets forth the entire agreement between the Parties, and fully supersedes any and all prior agreements, understandings, or representations between the parties pertaining to Employee's employment with PPIH, the subject matter of this Agreement or any other term or condition of the relationship between PPIH and Employee except for the "Employment Agreement" effective as of ____________________ and the non-competition, non-solicitation, non-disparagement, and confidentiality provisions of that agreement which Employee hereby expressly acknowledges survive both the termination of the Employment Agreement and this Agreement.

Executive Employment Agreement – 22

------

IF THIS AGREEMENT IS NOT RECEIVED BY THE COMPANY ON OR BEFORE THE 25TH DAY AFTER DELIVERY, THIS OFFER IS WITHDRAWN WITHOUT FURTHER NOTICE.

SIGNED this ____ day of __________, ______.

---

| |
|:---|
| Former Employee: |
| Signature |
| Printed Name |

---

Executive Employment Agreement – 23

## Exhibit 31.1

**Exhibit 31.1**

I, Saleh N. Sagr, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Perma-Pipe International Holdings, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: September 15, 2025

<u>/s/ Saleh N. Sagr</u>

Saleh N. Sagr

President and Chief Executive Officer

(Principal Executive Officer)

## Exhibit 31.2

**Exhibit 31.2**

I, Matthew E. Lewicki, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Perma-Pipe International Holdings, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: September 15, 2025

<u>/s/ Matthew E. Lewicki</u>

Matthew E. Lewicki

Vice President and Chief Financial Officer

(Principal Financial and Accounting Officer)

## Ex-32

**Exhibit 32**

**Certification of Principal Executive Officers**

**Pursuant to 18 U.S.C. 1350**

**(Section 906 of the Sarbanes-Oxley Act of 2002)**

The undersigned, in their capacities as Chief Executive Officer and Chief Financial Officer of Perma-Pipe International Holdings, Inc. (the "Registrant") certify that, to the best of their knowledge, based upon a review of the Quarterly Report on Form 10-Q for the period ended July 31, 2025 of the Registrant, (the "Report"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

<u>/s/ Saleh N. Sagr</u>

Saleh N. Sagr

President and Chief Executive Officer

(Principal Executive Officer)

<u>/s/ Matthew E. Lewicki</u>

Matthew E. Lewicki

Vice President and Chief Financial Officer

(Principal Financial and Accounting Officer)

September 15, 2025

A signed original of this written statement required by Section 906 has been provided by Perma-Pipe International Holdings, Inc. and will be retained by Perma-Pipe International Holdings, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.