FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in thousands, except share and per share data)

March 31,
2024

December 31,
2023

ASSETS

Current assets:

Cash and cash equivalents

$                 79,518

$                 76,787

Short-term investments

19,763

19,496

Accounts receivable, net

88,908

92,028

Inventories, net

35,376

34,529

Prepaid expenses and other current assets

32,854

38,768

Total current assets

256,419

261,608

Non-current assets:

Property, plant and equipment, net

19,855

21,181

Operating lease right-of-use assets

11,075

12,231

Goodwill

108,359

109,534

Intangible assets, net

47,057

47,891

Service and sales demonstration inventory, net

20,655

23,147

Deferred income tax assets, net

24,933

25,027

Other long-term assets

3,951

4,073

Total assets

$               492,304

$               504,692

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$                 25,314

$                 27,404

Accrued liabilities

26,567

29,930

Income taxes payable

5,907

5,699

Current portion of unearned service revenues

41,012

40,555

Customer deposits

5,031

4,251

Lease liabilities

5,106

5,434

Total current liabilities

108,937

113,273

Loan - 5.50% Convertible Senior Notes

72,872

72,760

Unearned service revenues - less current portion

20,142

20,256

Lease liabilities - less current portion

9,690

10,837

Deferred income tax liabilities

12,543

13,308

Income taxes payable - less current portion

6,123

5,629

Other long-term liabilities

17

23

Total liabilities

230,324

236,086

Commitments and contingencies

Shareholders' equity:

Common stock - par value $0.001, 50,000,000 shares authorized;
20,578,403 and 20,343,359 issued, respectively; 19,205,361 and 18,968,798
outstanding, respectively

20

20

Additional paid-in capital

350,816

346,277

Retained earnings

(17,056)

(9,789)

Accumulated other comprehensive loss

(41,145)

(37,247)

Common stock in treasury, at cost - 1,373,042 and 1,374,561 shares held,
respectively

(30,655)

(30,655)

Total shareholders' equity

261,980

268,606

Total liabilities and shareholders' equity

$               492,304

$               504,692