Help me follow lace pattern instructions, PLEASE!

I am in the process of making the Bucket Hat, which I found on KP earlier this year. In the section for making the lace pattern, I find I am decreasing the number of stickes where I should be maintaining them (according to the pattern).

Round 3: *sl 1, K1, psso, yfwd, rep from * to last stich, K1

sl 1 -- I slip this stich from left needle to right needle

K1 -- with yarn in back, I knit one

psso -- I take the slipped stich from the right needle and slip it over the 'K1' I last knitted and off the needle (which decreases my stich count by one)

yfwd -- I put the yarn to the front of my work

I have watched videos of 'psso' and they do slip the stick off the needle, but the pattern count shows I should be maintaining the 69 stiches I began with.

If I am correctly doing psso, where am I incorrectly following these instructions on round 3???????