Current assets:

Cash

Restricted cash

Trade accounts receivable, net

Receivable from affiliates

Contract assets

Inventory

Income tax receivable

Prepaid expenses and other current assets

Total current assets

Property and equipment, net

Goodwill

Intangible assets, net

Equity method investments

Other assets

Total assets

Current liabilities:

Accounts payable

Contract liabilities

Notes payable, current maturities

Asset retirement obligation, current portion

Accrued liabilities

Other current liabilities

Total current liabilities

Deferred tax liabilities

Contingent payments for acquisitions

Asset retirement obligation

Line of credit

Notes payable, less current maturities

Other liabilities

Total liabilities

Mezzanine equity

Series A Preferred Stock — $0.01 par value; 50 shares authorized, 26 shares issued and outstanding as of September 30, 2020; aggregate liquidation preference of $27,878 as of September 30, 2020

Stockholders’ equity

Retained losses

Common Stock — $0.01 par value; 200,000 shares authorized, 29,986, 29,624, and 29,083 shares issued and outstanding as of September 30, 2020, December 31, 2019, and December 31, 2018, respectively

Additional paid-in capital

Total stockholders’ equity

Non-controlling interest

Total equity

Total liabilities, mezzanine equity and stockholders’ equity

Revenue

Cost of sales

Gross profit

General and administrative expenses

Impairment expense

Operating (loss) income

Interest expense, net

Loss on extinguishment of debt

Income from equity method investment

(Loss) income before income taxes

Income tax expense

Net (loss) income

Less income attributable to non-controlling interest

Net (loss) income attributable to Charah Solutions, Inc.

Deemed and imputed dividends on Series A Preferred Stock

Series A Preferred Stock dividends

Net (loss) income attributable to common stockholders

Loss per common share:

Basic

Diluted

Weighted-average shares outstanding:

Basic

Diluted

Revenue

Cost of sales

Gross profit

General and administrative expenses

Operating (loss) income

Interest expense, net

Income from equity method investment

(Loss) income before income taxes

Income tax expense

Net loss

Less income attributable to non-controlling interest

Net (loss) income attributable to Charah Solutions, Inc.

Loss per common share:

Basic

Diluted

Weighted-average shares outstanding:

Basic

Diluted

Revenue

Cost of sales

Gross profit

General and administrative expenses

Operating income (loss)

Interest expense, net

Income from equity method investment

(Loss) income before income taxes

Income tax (benefit) expense

Net (loss) income

Less income attributable to non-controlling interest

Net (loss) income attributable to Charah Solutions, Inc.

(Loss) earnings per common share:

Basic

Diluted

Weighted-average shares outstanding:

Basic

Diluted

Revenue

Cost of sales

Gross profit

General and administrative expenses

Operating income (loss)

Interest expense, net

Income from equity method investment

Income (loss) before income taxes

Income tax expense

Net income (loss)

Less income attributable to non-controlling interest

Net income (loss) attributable to Charah Solutions, Inc.

Earnings per common share:

Basic

Diluted

Weighted-average shares outstanding:

Basic

Diluted

As reported financial information for the Company has been derived from historical financial statements previously filed with the Securities and Exchange Commission.

Represents the elimination of the assets and liabilities of the Allied business.

Represents the elimination of revenue and operating expenses of the Allied business.

No income tax expense was attributed to Allied due to the Company’s valuation allowance.

Income tax expense (benefit) was attributed to Allied using the federal and state statutory income tax rate of 26.3%.

No income tax expense was attributed to Allied due to the Company’s status as a non-taxable entity.

Debt balances are adjusted to give effect to the Transaction as follows:

Gross Proceeds

Less: Estimated closing costs

Net proceeds

Less: Proceeds applied to current maturities of notes payable

Less: Proceeds applied to non-current maturities of notes payable

Proceeds applied to line of credit

Represents the allocation of the Maintenance & Technical Services reporting unit’s goodwill to Allied based on its relative fair value in proportion to the reporting unit’s fair value.

Represents the estimated pro forma “contribution” from the sale of the Allied business assuming net proceeds of $38,128, less Allied net assets, as this Transaction will be treated as a contribution to equity since the sale of Allied is to an entity under common control. Note, this estimate may not be indicative of the actual contribution to equity from the Transaction as there could be material changes to the financial position of Allied and the related working capital through the post-closing adjustments.

Represents the allocation of interest expense, net to Allied due to a requirement in our Credit Agreement that the net cash proceeds from this Transaction be utilized to reduce our debt.