BUSINESS COMBINATION (Tables)

6 Months Ended

Jun. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

	Preliminary		Measurement Period Adjustments		Preliminary
	December 23, 2021				June 30, 2022
Cash, including cash acquired(1)	$	268,654	$	(640)	$	268,014
Equity(2)	21,716		—		21,716
Total fair value of consideration transferred	290,370		(640)		289,730
Assets acquired:
Cash and cash equivalents	$	7,654	$	—	$	7,654
Accounts receivable	31,456		—		31,456
Inventories	60,503		—		60,503
Prepaid expenses and other	2,438		—		2,438
Property, plant and equipment(3)	17,323		4,770		22,093
Goodwill(4)	141,266		(5,802)		135,464
Intangible assets(5)	254,500		—		254,500
Other long-term assets	122		(35)		87
Total assets acquired	515,262		(1,067)		514,195
Liabilities assumed:
Accounts payable	8,792		—		8,792
Other current liabilities	22,520		—		22,520
Total liabilities assumed	31,312		—		31,312
Redeemable noncontrolling interest(6)	193,580		(427)		193,153
Total assets acquired and liabilities assumed	$	290,370	$	(640)	$	289,730

(1) Cash sources of funding included $150,000 in new term loan debt and $118,654 of cash and marketable securities on hand. During the quarter ended March 31, 2022, working capital estimates at the time of acquisition were finalized. In April 2022, $640 was returned to the Company from the funds previously placed into escrow.

(2) Equity consideration included 551,458 shares of DMC common stock.

(3) Property, plant and equipment primarily consists of the following:

Land	$	1,500
Buildings and improvements	6,451
Manufacturing equipment and tooling	12,634
Furniture, fixtures, and computer equipment	211
Other	1,297
Total property, plant and equipment	$	22,093

The useful lives of property, plant and equipment are consistent with the Company's accounting policies.

(4) Amounts recorded for goodwill resulting in a tax basis step-up are generally expected to be deductible for tax purposes. Tax deductible goodwill is estimated to be $82,949.

(5) Intangible assets consist of $211,000 of customer relationships, $22,000 of trade name, and $21,500 of customer backlog.

(6) Redeemable noncontrolling interest represents 40% of the total fair value of Arcadia upon acquisition.

Schedule of Pro Forma Information

The following unaudited pro forma combined financial information presents combined results of the Company and Arcadia. Arcadia’s operating results have been included in the Company’s operating results for the three and six months ended June 30, 2022.

	Three months ended June 30, 2021				Six months ended June 30, 2021
	As Reported		Pro Forma		As Reported		Pro Forma
Net sales	$	65,438	$	126,576	$	121,096	$	239,475
Net income attributable to DMC Global Inc. stockholders	$	1,724	$	6,090	$	2,156	$	10,443