FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

(in thousands, except share and per share data)

September 30,
2023

December 31,
2022

ASSETS

Current assets:

Cash and cash equivalents

$                 79,919

$                 37,812

Accounts receivable, net

88,363

90,326

Inventories, net

40,095

50,026

Prepaid expenses and other current assets

37,325

41,201

Total current assets

245,702

219,365

Non-current assets:

Property, plant and equipment, net

22,207

19,720

Operating lease right-of-use assets

12,521

18,989

Goodwill

106,873

107,155

Intangible assets, net

46,999

48,978

Service and sales demonstration inventory, net

22,662

30,904

Deferred income tax assets, net

24,093

24,192

Other long-term assets

4,047

4,044

Total assets

$               485,104

$               473,347

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$                 23,408

$                 27,286

Accrued liabilities

24,994

23,345

Income taxes payable

12,083

6,767

Current portion of unearned service revenues

34,493

36,407

Customer deposits

5,237

6,725

Lease liabilities

5,258

5,709

Total current liabilities

105,473

106,239

Loan - 5.50% Convertible Senior Notes

72,604

—

Unearned service revenues - less current portion

20,893

20,947

Lease liabilities - less current portion

11,495

14,649

Deferred income tax liabilities

11,497

11,708

Income taxes payable - less current portion

4,020

8,706

Other long-term liabilities

30

49

Total liabilities

226,012

162,298

Commitments and contingencies

Shareholders' equity:

Common stock - par value $0.001, 50,000,000 shares authorized;
20,328,417 and 20,156,233 issued, respectively; 18,953,725 and 18,780,013
outstanding, respectively

20

20

Additional paid-in capital

340,414

328,227

Retained earnings

(11,377)

46,788

Accumulated other comprehensive loss

(39,310)

(33,331)

Common stock in treasury, at cost - 1,374,692 and 1,376,220 shares held,
respectively

(30,655)

(30,655)

Total shareholders' equity

259,092

311,049

Total liabilities and shareholders' equity

$               485,104

$               473,347