FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in thousands, except share and per share data)

March 31,
2023

December 31,
2022

ASSETS

Current assets:

Cash and cash equivalents

$           68,564

$           37,812

Short-term investments

20,024

—

Accounts receivable, net

90,238

90,326

Inventories, net

50,886

50,026

Prepaid expenses and other current assets

45,830

41,201

Total current assets

275,542

219,365

Non-current assets:

Property, plant and equipment, net

19,505

19,720

Operating lease right-of-use assets

17,605

18,989

Goodwill

108,051

107,155

Intangible assets, net

48,793

48,978

Service and sales demonstration inventory, net

30,917

30,904

Deferred income tax assets, net

24,271

24,192

Other long-term assets

4,044

4,044

Total assets

$         528,728

$         473,347

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$           22,888

$           27,286

Accrued liabilities

26,180

23,345

Income taxes payable

7,282

6,767

Current portion of unearned service revenues

36,792

36,407

Customer deposits

6,389

6,725

Lease liabilities

5,479

5,709

Total current liabilities

105,010

106,239

Loan - 5.50% convertible Senior Notes

72,379

—

Unearned service revenues - less current portion

21,101

20,947

Lease liabilities - less current portion

13,287

14,649

Deferred income tax liabilities

11,897

11,708

Income taxes payable - less current portion

8,718

8,706

Other long-term liabilities

23

49

Total liabilities

232,415

162,298

Common stock - par value $0.001, 50,000,000 shares authorized; 20,276,813 and

20,156,233 issued, respectively; 18,902,121 and 18,780,013 outstanding, respectively

20

20

Additional paid-in capital

331,875

328,227

Retained earnings

25,624

46,788

Accumulated other comprehensive loss

(30,551)

(33,331)

Common stock in treasury, at cost - 1,376,351 and 1,382,367 shares held, respectively

(30,655)

(30,655)

Total shareholders' equity

296,313

311,049

Total liabilities and shareholders' equity

$         528,728

$         473,347