FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in thousands, except share and per share data)

June 30,
2024

December 31,
2023

ASSETS

Current assets:

Cash and cash equivalents

$                 97,914

$                 76,787

Short-term investments

—

19,496

Accounts receivable, net

84,868

92,028

Inventories, net

34,409

34,529

Prepaid expenses and other current assets

30,468

38,768

Total current assets

247,659

261,608

Non-current assets:

Property, plant and equipment, net

18,412

21,181

Operating lease right-of-use assets

10,960

12,231

Goodwill

108,164

109,534

Intangible assets, net

46,135

47,891

Service and sales demonstration inventory, net

21,044

23,147

Deferred income tax assets, net

24,792

25,027

Other long-term assets

3,915

4,073

Total assets

$               481,081

$               504,692

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$                 27,867

$                 27,404

Accrued liabilities

25,373

29,930

Income taxes payable

3,227

5,699

Current portion of unearned service revenues

40,014

40,555

Customer deposits

5,208

4,251

Lease liabilities

4,645

5,434

Total current liabilities

106,334

113,273

Loan - 5.50% Convertible Senior Notes

69,983

72,760

Unearned service revenues - less current portion

19,984

20,256

Lease liabilities - less current portion

9,556

10,837

Deferred income tax liabilities

12,498

13,308

Income taxes payable - less current portion

6,114

5,629

Other long-term liabilities

16

23

Total liabilities

224,485

236,086

Commitments and contingencies

Shareholders' equity:

Common stock - par value $0.001, 50,000,000 shares authorized;
20,779,711 and 20,343,359 issued, respectively; 19,406,669 and 18,968,798
outstanding, respectively

20

20

Additional paid-in capital

351,849

346,277

Retained earnings

(17,580)

(9,789)

Accumulated other comprehensive loss

(47,038)

(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

256,596

268,606

Total liabilities and shareholders' equity

$               481,081

$               504,692