Exhibit 99.3
SYNALLOY CORPORATION                                        
Unaudited Pro Forma Combined Financial Information

Introduction
The following tables present unaudited pro forma combined financial information about the condensed consolidated balance sheet and statements of operations and comprehensive income (loss) of Synalloy Corporation ("Synalloy" or the "Company"), after giving effect to the acquisition (the "Acquisition") of DanChem Technologies, Inc. ("DanChem"), pursuant to the Stock Purchase Agreement dated October 22, 2021 (the "Agreement"), by and between the Company and DanChem Holdings, LLC.
The unaudited pro forma combined financial statements give effect to the Acquisition as well as the related debt financings, including the pro forma adjustments intended to illustrate the estimated effects of the Acquisition (collectively, "Adjustments" or "Pro Forma Adjustments").
The unaudited pro forma combined statements of operations and comprehensive income (loss) combine the historical results of Synalloy and DanChem for the nine months ended September 30, 2021 and the year ended December 31, 2020, and give effect to the Acquisition as if it occurred on January 1, 2020.
The unaudited pro forma combined statements of balance sheet as of September 30, 2021 combine the historical results of Synalloy and DanChem on a pro forma basis as if the Acquisition had occurred on September 30, 2021.
The unaudited pro forma combined financial information is based on various adjustments and assumptions and is not necessarily indicative of what Synalloy’s condensed consolidated statement of operations and comprehensive income (loss) or condensed consolidated balance sheet actually would have been had the Acquisition been completed as of the dates indicated or will be for any future periods. The unaudited pro forma financial statements do not purport to project the future financial position or operating results of Synalloy following the completion of the Acquisition. The unaudited pro forma financial information does not include adjustments to reflect any potential synergies or cost savings that may be achievable in connection with the Acquisition.
The unaudited pro forma combined financial statements should be read in conjunction with:
•The accompanying notes to the unaudited pro forma combined financial statements,
•Synalloy’s audited historical consolidated financial statements as of and for the year ended December 31, 2020 and the related notes, and unaudited historical condensed consolidated financial statements as of and for the nine months ended September 30, 2021; and
•DanChem’s historical audited financial statements for the year ended December 31, 2020 and the related notes, and unaudited historical financial statements as of and for the nine months ended September 30, 2021.
Description of Acquisition
On October 22, 2021, the Company completed the acquisition of DanChem, a contract manufacturer of chemical products located in Danville, Virginia. The Company accounted for the transaction as a business combination using the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) Topic 805 - "Business Combinations". The purchase price was paid in cash and funded through a drawdown of $34,520 on the Company’s existing revolving credit facility. Amounts outstanding under the revolving line of credit portion of the facility currently bear interest, at the Company's option, at (a) the Base Rate (as defined in the Credit Agreement) plus 0.50%, or (b) LIBOR plus l.50%. The current interest rate on drawn amounts is 1.75%. Had the acquisition taken effect as of the date presented on the unaudited pro forma combined statement of balance sheet, the purchase price would have been $32,183 including $3 in cash acquired through the acquisition.    

Exhibit 99.3
SYNALLOY CORPORATION                                        
Unaudited Pro Forma Combined Condensed Balance Sheet
As of September 30, 2021


Historical
Synalloy
Adjusted DanChem
(Note 2)
Transaction Accounting Adjustments
Pro Forma Combined
As of September 30, 2021
As of
September 30, 2021		 As of
September 30, 2021		 Note
(in thousands)
       
Assets       
Current assets       
Cash and cash equivalents
$1,174 $3 $(27,212)4a$3,514 

29,549 5a
Accounts receivable, net of allowance for credit
losses
44,096 6,125 — 50,221
Inventories, net
98,334 1,285 — 99,619
Prepaid expenses and other current assets
8,820 466 — 9,286
  Total current assets
152,424 7,879 2,337 162,640

Property, plant and equipment, net
29,691 10,321 6,753 4b48,388

1,623 4d
Right of use asset, operating leases, net
30,975 — 208 4d31,183
Goodwill
1,355 — 8,732 4e10,087
Intangible assets, net
9,385 138 4,262 4c13,785
Deferred charges, net
327 — — 327
Total assets$224,157 $18,338 $23,915 $266,410 
 
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable
34,8501,836-36,686
Accounts payable – related
 Party
2--2
Accrued expense and other current liabilities
10,1441,0548054h11,349

(654)4i
Current portion of long-term debt
1,750500(500)5b1,750
Current portion of earn-out liability
2,249--2,249
Current portion of operating lease liabilities
1,019-474d1,066
Current portion of finance lease liabilities
40-1984d238
  Total current liabilities
50,0543,390(104)53,340

Long-term debt
47,2134,47130,0495b81,733
Long-term portion of earn-out liability
----
Long-term portion of operating lease liabilities
32,191-1614d32,352
Long-term portion of finance lease liabilities
46-1,4254d1,471
Deferred income taxes
1,3422962,7164g4,224

(130)4i
Other long-term liabilities
84--84
  Total non-current liabilities
80,8764,76734,221119,864

Shareholders’ equity:
Common stock
10,300--10,300
Capital in-excess of par value
37,0376,820(6,820)4f37,037
Retained Earnings
55,0143,361(3,382)4f54,993

102,35110,181(10,202)102,330
Less: cost of common stock in treasury
(9,124)--(9,124)
         Total shareholders' equity
93,22710,181(10,202)93,206
Total liabilities and equity$224,157 $18,338 $23,915 $266,410 
See accompanying “Notes to Unaudited Pro Forma Combined Financial Information”

Exhibit 99.3
SYNALLOY CORPORATION                                            
Unaudited Pro Forma Combined Consolidated Statement of Operations and Comprehensive Loss
For the Year Ended December 31, 2020

Historical
Synalloy
Adjusted DanChem
(Note 2)
Transaction Accounting Adjustments
Pro Forma Combined
for Year Ended December 31, 2020
 Year Ended December 31, 2020Year Ended
December 31, 2020		Note
(in thousands, except per share data)      
Net sales$256,000 $26,365 $— $282,365 
Cost of sales(233,348)(21,266)(1,395)6c(255,982)
27 6f
Gross Profit22,652 5,099 (1,368)26,383 
Expenses
Selling, general and administrative(28,718)(4,334)(45)6c(33,390)
— (293)6a
Acquisition costs and other(845)— (805)6e(1,650)
Proxy contest costs and recoveries(3,105)— — (3,105)
Earn-out adjustments1,195 — — 1,195 
Asset impairments(6,214)— — (6,214)
Goodwill impairment(16,203)— — (16,203)
Gain on lease modification171 — — 171 
Operating (loss) income(31,067)765 (2,511)(32,813)
Other (expense) income
Interest expense(2,110)(321)(349)6d(2,821)
(41)6f
Change in fair value of interest rate swaps(51)— — (51)
Other, net1,255 — — 1,255 
Income (loss) before income taxes(31,973)444 (2,901)(34,430)
Income tax benefit (provision)4,706 (130)1,344 6b5,920 
Net (loss) and comprehensive (loss)$(27,267)$314 $(1,557)$(28,510)
    
Net income (loss) per common share:    
Basic$(3.00)$(3.13)
Diluted$(3.00)$(3.13)
Weighted average shares outstanding:
Basic9,099 9,099 
Dilutive effect from stock options and grants— — 
Diluted9,099 9,099 

See accompanying “Notes to Unaudited Pro Forma Combined Financial Information”

Exhibit 99.3
SYNALLOY CORPORATION                                            
Unaudited Pro Forma Combined Condensed Consolidated Statement of Operations
For the Nine Months Ended September 30, 2021

Historical
Synalloy
Adjusted DanChem
(Note 2)
Transaction Accounting Adjustments
Pro Forma Combined
for Nine Months Ended September 30, 2021
 Nine Months Ended September 30, 2021Nine Months Ended September 30, 2021Note
(in thousands, except per share data)      
Net sales$239,047 $22,273 $— $261,320 
Cost of sales(198,219)(17,855)(1,059)6c(217,112)
216f
Gross Profit40,8284,418(1,038)44,208
Expenses
Selling, general and administrative(21,941)(3,080)(23)6c(25,265)
(221)6a
Acquisition costs and other(201)--(201)
Proxy contest costs and recoveries(168)--(168)
Earn-out adjustments(1,430)--(1,430)
Asset impairments(233)--(233)
Goodwill impairment----
Gain on lease modification----
Operating (loss) income16,8551,338(1,282)16,911
Other (expense) income
Interest expense(1,068)(155)(318)6d(1,569)
(28)6f
Gain (loss) on extinguishment of debt(223)1,975 — 1,752 
Change in fair value of interest rate swaps2— — 2 
Other, net(152)— — (152)
Income (loss) before income taxes15,4143,158(1,628)16,944
Income tax benefit (provision)(3,235)(285)1806b(3,340)
Net income (loss)$12,179 $2,873 $(1,448)$13,604 
    
Net income (loss) per common share:    
Basic$1.32 $1.47 
Diluted$1.30 $1.46 
Weighted average shares outstanding:
Basic9,2379,237
Dilutive effect from stock options and grants111111
Diluted9,3489,348

See accompanying “Notes to Unaudited Pro Forma Combined Financial Information”

Exhibit 99.3
SYNALLOY CORPORATION                                        
Notes to Unaudited Pro Forma Combined Financial Information

1.Basis of Presentation
The accompanying pro forma financial statements were prepared in accordance with Article 11 of Regulation S-X as amended by the final rule, Release No. 33-10786 “Amendments to Financial Disclosures about Acquired and Disposed Businesses.” Release No. 33-10786 replaces the existing pro forma adjustment criteria with simplified requirements to depict the accounting for the transaction (“Transaction Accounting Adjustments”) and the option to present the reasonably estimable synergies and other transaction effects that have occurred or are reasonably expected to occur (“Management’s Adjustments”). The Company has elected not to present Management’s Adjustments and has only presented Transaction Accounting Adjustments in the following unaudited pro forma condensed combined financial information. The unaudited pro forma statements of operations and pro forma statement of financial position of the Company are based on the historical financial statements of Synalloy and DanChem, after giving effect to the Acquisition as described above. The adjustments presented in the unaudited pro forma combined financial information is based on currently available information and certain information that management of Synalloy and DanChem believe are reasonable under the circumstances. The unaudited pro forma adjustments may be revised as additional information becomes available.

The Acquisition is accounted for as a business combination using the acquisition method of accounting under the provisions of ASC 805, Business Combinations, with Synalloy considered the accounting and legal acquirer of DanChem. The unaudited pro forma financial statements reflect the preliminary assessment of fair values and useful lives assigned to the assets acquired and liabilities assumed. Fair value estimates were determined based on preliminary valuation analysis. Since this pro forma financial information has been prepared based on preliminary estimates of consideration and fair values attributable to the DanChem acquisition, the actual amounts eventually recorded for the purchase accounting, including the identifiable intangible assets and goodwill, may differ materially from the information presented.

Synalloy and DanChem did not have any historical relationship prior to the Acquisition. Accordingly, no pro forma adjustments were required to eliminate activities between the companies.
2.Presentation of Acquiree Company– reclassification adjustments
Certain reclassifications have been made to the historical presentation of the statement of operations and comprehensive income (loss) and balance sheet of DanChem to conform to the financial statement presentation of Synalloy. The following summarizes the reclassification adjustments in DanChem's unaudited pro forma combined statement of operations for the nine months ended September 30, 2021 and the year ended December 31, 2020 and unaudited pro forma combined statement of financial position as of September 30, 2021.

Unaudited pro forma combined condensed consolidated statement of operations for the nine months ended September 30, 2021:

Amounts
(in thousands)
Presentation in DanChem's
Financial Statements		Presentation in Unaudited Pro Forma
Combined Financial Information
$3,080General and administrative expensesSelling, general and administrative
$1,975Gain on forgiveness of PPP LoanGain (loss) on extinguishment of debt
$285Income tax expenseIncome tax provision (benefit)


Unaudited pro forma combined consolidated statement of operations for the year ended December 31, 2020:

Amounts
(in thousands)
Presentation in DanChem's
Financial Statements		Presentation in Unaudited Pro Forma
Combined Financial Information
$4,334General and administrative expensesSelling, general and administrative
$21,266Cost of goods soldCost of sales
$130Deferred income tax expenseIncome tax provision (benefit)








Exhibit 99.3
SYNALLOY CORPORATION                                        
Notes to Unaudited Pro Forma Combined Financial Information

Unaudited pro forma combined condensed balance sheet as of September 30, 2021:

Amounts
(in thousands)
Presentation in DanChem's
Financial Statements		Presentation in Unaudited Pro Forma
Combined Financial Information
$466Prepaid expensesPrepaid expenses and other current assets
$138Other assetsIntangible assets, net
$145Checks issued in excess of bank balanceAccrued expenses and other current liabilities
$797Accrued expensesAccrued expenses and other current liabilities
$112Income taxes payableAccrued expenses and other current liabilities
$6,820Additional paid-in capitalCapital in-excess of par value
3.Accounting Policy conformity changes
The accounting policies used in the preparation of the unaudited pro forma combined financial information are those set out in Synalloy's consolidated financial statements. Based on the procedures performed to date, the accounting policies of DanChem are similar in all material respects to Synalloy’s accounting policies, with the exception of the accounting for leases under ASC 842, Leases. The impact of conforming these policies is described in Note 4(d). As noted in Note 2, certain balances presented in the historical financial statements of DanChem have been reclassified to conform their presentation to that of Synalloy. Synalloy is not aware of any other material differences between the accounting policies or classification of amounts of the two companies that would continue to exist subsequent to the application of acquisition accounting. Following the consummation of the Acquisition, Synalloy has begun to conduct, but has not yet completed, a more detailed review of DanChem's accounting policies in an effort to determine if differences in accounting policies require further reclassifications of DanChem's results of operations or reclassification of assets or liabilities to conform to Synalloy’s accounting policies and classifications. As a result, Synalloy may identify additional differences between the accounting policies of the two companies that, when conformed, could have a material impact on this unaudited pro forma combined financial information.
4.Preliminary Fair Value Estimate of Assets Acquired and Liabilities Assumed
The unaudited pro forma combined balance sheet as of September 30, 2021 has been adjusted to reflect the preliminary allocation of purchase price to identifiable assets acquired and liabilities assumed related to DanChem, with the excess recorded as goodwill. The unaudited combined pro forma statement of operations for the nine months ended September 30, 2021 and the year ended December 31, 2020 gives effect to the Acquisition as if it occurred on January l, 2020.

Estimated purchase price and purchase price allocation of DanChem
Set forth below are the preliminary values of assets acquired and liabilities assumed calculated for the purpose of these unaudited combined pro forma financial statements. The allocation of the purchase price to the fair values of the assets acquired and liabilities assumed includes pro forma adjustments to the fair values of DanChem assets and liabilities. At the time of this filing, the Company has not finalized the detailed valuation analysis related to the fair values of identifiable assets acquired and liabilities assumed. The final amounts recorded for the acquisition may differ materially from the information presented below. The preliminary purchase price for DanChem is estimated to be $32,183 cash consideration.

Exhibit 99.3
SYNALLOY CORPORATION                                        
Notes to Unaudited Pro Forma Combined Financial Information

The preliminary estimated purchase price allocation of DanChem is calculated as follows:
 September 30, 2021 DanChem Historical Information DanChem Fair Value and Accounting Policy AdjustmentsNotePurchase Price Allocation
(in thousands)
      
Assets     
Cash and cash equivalents
$3 $— $3 
Accounts receivable, net of allowance for credit losses
6,125 — 6,125 
Inventories, net
1,285 — 1,285 
Prepaid expenses and other current assets
466 — 466 
Property, plant and equipment, net
10,321 6,753 4b18,697 

1,623 4d
Right of use asset, operating leases, net
— 208 4d208 
Goodwill
— 8,732 4e8,732 
Intangible assets, net
138 4,262 4c4,400 
Deferred charges, net
— — — 
Total assets acquired$18,338 $21,578 $39,916 
 
Accounts payable
1,836 — 1,836 
Accrued expense and other current liabilities
1,054 — 1,054 
Current portion of long-term debt
500 (500)5b— 
Current portion of operating lease liabilities
— 47 4d47 
Current portion of finance lease liabilities
— 198 4d198 
Long-term debt
4,471 (4,471)5b— 
Deferred income taxes296 2,716 4g3,012 
Long-term portion of operating lease liabilities
— 161 4d161 
Long-term portion of finance lease liabilities
— 1,425 4d1,425 
Total liabilities assumed$8,157 $(424)$7,733 
Historical equity value of DanChem:
Common stock
— — 
Capital in-excess of par value
6,820 (6,820)4f— 
Retained Earnings
3,361 (3,361)4f— 
Total shareholders' equity$10,181 $(10,181)$— 
Estimated purchase consideration$32,183 
a)Represents adjustments related to the payment of the cash purchase price of DanChem and the estimated Acquisition-related costs, as follows:
Pro forma adjustment to cash
RefAmount
(in thousands)
Cash paid to seller
$(25,172)
Acquisition-related costs paid on behalf of seller
(2,040)
Pro forma adjustment to cash
4a(27,212)
Cash paid towards paydown of debt on behalf of seller
5a(4,971)
Estimated transaction consideration
$(32,183)
b)Represents adjustments to record the preliminary fair value of DanChem's property, plant and equipment with a fair value determined to be $17,074 resulting in an increase of $6,753. The fair values of property, plant and equipment were determined using the cost and market approaches, which are commonly accepted valuation approaches. The Company is in the process of performing a more detailed valuation analysis the result of which may differ materially from this preliminary analysis. Refer to Note 6c for the related adjustment to the combined pro forma statements of operations.

Exhibit 99.3
SYNALLOY CORPORATION                                        
Notes to Unaudited Pro Forma Combined Financial Information

c)Represents adjustments to record the preliminary fair value of DanChem's acquired identifiable intangible assets related to customer relationships, product development know-how, and tradename with a fair value determined to be $4,400 resulting in an increase of $4,262. The fair value of the customer relationship was determined using the multi-period excess earnings method, and the fair values of the product development know-how and tradename were determined using the relief from royalty method. Both methods are commonly accepted valuation approaches. The Company is in the process of performing a more detailed valuation analysis the result of which may differ materially from this preliminary analysis. Refer to note 6a for the related adjustment to the combined pro forma statements of operations.
d)Represents adjustments to align the accounting policies of DanChem to reflect the adoption of ASC 842, Leases, including adjustments to the following:
(in thousands)
Property, plant and equipment, net
$1,623 
Right of use asset, operating leases, net
208 
Current portion of operating lease liabilities
47 
Current portion of finance lease liabilities
198 
Long-term portion of operating lease liabilities
161 
Long-term portion of finance lease liabilities
1,425 
Note that Company classifies finance lease assets as property, plant and equipment. The Company is in the process of performing a more detailed lease analysis and the result of which may differ materially from this preliminary analysis.
e)Represents the excess of the purchase price over the preliminary fair values of the underlying net intangible and identifiable tangible assets, net of liabilities, which is an estimated increase of $8,732. The estimated goodwill to be recognized is attributable to the assembled workforce and operational synergies in the expected Synalloy models.
f)Represents the elimination of DanChem's historical Capital in-excess of par value balance of $6,820 in connection with the acquisition. Additional adjustment to retained earnings related to transaction expenses as detailed below:
Pro forma adjustment to retained earnings
RefRetained earnings
(in thousands)
Elimination of DanChem’s historical retained earnings balance
$(3,361)
Impact of DanChem transaction expenses
4h(805)
Income tax adjustment
4i784
Pro forma adjustment to retained earnings
$(3,382)
g)Represents the recognition of deferred tax liabilities relating to the acquired intangible assets and net property, plant and equipment discussed in Note 4b and 4c. Deferred tax liabilities were calculated by applying the estimated blended U.S. statutory federal and state tax rate.
h)Represents $805 of additional transaction expenses that were incurred and not recognized in the historical financial statements of the Company.
i)Represents the impact of the acquisition on Synalloy's historical tax balances.

Exhibit 99.3
SYNALLOY CORPORATION                                        
Notes to Unaudited Pro Forma Combined Financial Information

5.Calculation of Acquisition Financing
The Company drew $34,520 on an existing credit facility to fund the Acquisition. The pro forma adjustments, as illustrated below, reflect the incurrence of the debt.
a)A summary of the total pro forma adjustments to cash related to the Acquisition financing include the following:
Pro forma adjustment to cash
(in thousands)
Synalloy line of credit drawPrepayment of DanChem’s term loan and revolverTotal
Increase from line of credit draw
34,52034,520
Repayment of DanChem's term loan and revolver
(4,971)(4,971)
Pro forma adjustment to cash
$29,549 
b)The total pro forma adjustment to debt includes the following:
Pro forma adjustment to debt
Synalloy line of credit drawPrepayment of DanChem’s term loan and revolverTotal
(in thousands)
Pro forma adjustment to current portion of debt
(500)(500)
Pro forma adjustment to long-term debt
34,520(4,471)30,049
Pro forma adjustment to debt
$29,549 
6.Unaudited Pro Forma Combined Statements of Operations Adjustments
The pro forma adjustments in the unaudited pro forma combined statements of operations are as follows:
a)Adjustment to intangibles assets expected to be recognized in connection with the acquisition, consists of the following:

Fair
Value
Estimated
Useful Life
(years)		Amortization Method
Amortization expense
For the year ended
31 December, 2020
Amortization expense
For the nine months ended
30 September, 2021
(in thousands)
Customer relationships$3,750 15Straight-line$250 $188 
Product development know-how500 15Straight-line33 25 
Trade name150 15Straight-line10 8 
Total acquired identifiable intangible assets adjustment$4,400 $293 $220 
The above adjustment to selling, general and administrative, of $293 and $220 for the year ended December 31, 2020 and the nine months ended September 30, 2021, respectively related to additional amortization expense for the estimated fair value adjustments to acquired intangible assets, which are being amortized using the straight line method.
b)Represents the adjustment to income tax expense. The income tax expense is calculated based on the pre-tax adjustment of DanChem’s transaction accounting adjustments at the estimated U.S. federal and state blended tax rate for the year ended December 31, 2020 and nine months ended September 30, 2021, net of the anticipated effect over the combined valuation allowance. The actual effective tax rate of the Company may differ materially from the pro forma tax rate due to, among other factors, changes in tax laws, the impact of permanent tax differences, income tax reserves determined in connection with the acquisition and tax planning.

Exhibit 99.3
SYNALLOY CORPORATION                                        
Notes to Unaudited Pro Forma Combined Financial Information

c)Adjustment to tangible assets expected to be recognized in connection with the acquisition, consists of the following:

Fair
Value
Estimated
Useful life
(in years)		Depreciation Method
Depreciation expense
for the year ended
31 December, 2020
Depreciation expense
for the nine months ended
30 September, 2021
(in thousands)
Land$720 N/AN/A$— $— 
Land improvements160 16Straight-line10 8 
Buildings1,455 20Straight-line75 57 
Furniture and fixtures471 3 - 5Straight-line117 88 
Machinery and equipment13,635 3 – 7Straight-line3,608 2,706 
Construction in equipment633 N/AN/A— — 
Total acquired property, plant and equipment$17,074 $3,810 $2,859 
(in thousands)
Depreciation expense
for the year ended
December 31, 2020
Depreciation expense
for the nine months ended
September 30, 2021
Elimination of historical depreciation from cost of sales$2,298 $1,712 
Depreciation expense to cost of sales(3,693)(2,771)
Adjustment to cost of sales$(1,395)$(1,059)
Elimination of historical depreciation from selling, general and administrative$72 $65 
Depreciation expense to selling, general and administrative(117)(88)
Adjustment to selling, general and administrative$(45)$(23)
d)A summary of the total pro forma adjustments related to financing to interest expense, net includes the following:

Ref
For the year ended
December 31, 2020
For the nine months ended
September 30, 2021
(in thousands)
Estimated interest expense on new financing (1)
604 453 
Elimination of historical interest expense (2)
(255)(135)
Total pro forma adjustment to interest expense6c$349 $318 
1)Represents the additional interest expense in connection with the new drawdown on existing credit facility. Amounts outstanding under the revolving line of credit portion of the facility currently bear interest, at the Company's option, at (a) the Base Rate (as defined in the Credit Agreement) plus 0.50%, or (b) LIBOR plus l.50%. The current interest rate on drawn amounts is 1.75%.

2)Represents the elimination of DanChem's historical interest expense as a result of the extinguishment of its historical term loan and revolver loan pursuant to the Purchase Agreement.

A 1/8 percent change in the interest assumed on the new financing would result in an aggregate increase or decrease to interest expense of $43 for the year ended December 31, 2020 and $32 for the nine months ended September 30, 2021.

Exhibit 99.3
SYNALLOY CORPORATION                                        
Notes to Unaudited Pro Forma Combined Financial Information

e)Represents the $805 adjustment to acquisitions costs for the year ended December 31, 2020, in connection with the additional transaction-related expenses that were incurred and not recognized in the historical financial statements of the Company as described in 4(h) above. These one-time, nonrecurring costs related to the acquisition will not affect the Company's income statement beyond 12 months after the acquisition date.
f)Represents the adjustments made to DanChem’s expenses related to the finance lease recorded in connection with the adoption of ASC 842, Leases, consisting of the following:
(in thousands)
For the year ended
December 31, 2020
For the nine months ended
September 30, 2021
Elimination of historic payments related to agreement$232 $175 
Reduction in carrying amount of finance lease right-of-use asset(205)(154)
Net adjustment to cost of sales$27 $21 
Interest on finance lease$(41)$(28)