FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in thousands, except share and per share data)

December 31,
2021

December 31,
2020

ASSETS

Current assets:

Cash and cash equivalents

$         121,989

$         185,633

Short-term investments

—

Accounts receivable, net

78,523

64,616

Inventories, net

53,145

47,391

Prepaid expenses and other current assets

19,793

26,295

Total current assets

273,450

323,935

Non-current assets:

Property, plant and equipment, net

22,194

23,091

Operating lease right-of-use asset

22,543

26,107

Goodwill

82,096

57,541

Intangible assets, net

25,616

13,301

Service and sales demonstration inventory, net

30,554

31,831

Deferred income tax assets, net

21,277

47,450

Other long-term assets

2,010

2,336

Total assets

$         479,740

$         525,592

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$           14,199

$           14,121

Accrued liabilities

28,208

42,593

Income taxes payable

4,499

3,442

Current portion of unearned service revenues

40,838

39,149

Customer deposits

5,399

2,807

Lease liability

5,738

5,835

Total current liabilities

98,881

107,947

Unearned service revenues - less current portion

22,350

21,757

Lease liability - less current portion

18,648

22,131

Deferred income tax liabilities

1,058

787

Income taxes payable - less current portion

11,297

11,583

Other long-term liabilities

1,047

1,084

Total liabilities

153,281

165,289

Shareholders' equity:

Common stock - par value $0.001, 50,000,000 shares authorized; 19,588,003 and
19,384,350 issued; 18,205,636 and 17,990,707 outstanding, respectively

20

19

Additional paid-in capital

301,061

287,979

Retained earnings

73,544

113,508

Accumulated other comprehensive loss

(17,374)

(10,160)

Common stock in treasury, at cost - 1,382,367 and 1,393,643 shares held, respectively

(30,792)

(31,043)

Total shareholders' equity

326,459

360,303

Total liabilities and shareholders' equity

$         479,740

$         525,592