FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in thousands, except share and per share data)

September 30,
2024

December 31,
2023

ASSETS

Current assets:

Cash and cash equivalents

$                 88,913

$                 76,787

Short-term investments

—

19,496

Accounts receivable, net

83,208

92,028

Inventories, net

39,055

34,529

Prepaid expenses and other current assets

34,252

38,768

Total current assets

245,428

261,608

Non-current assets:

Property, plant and equipment, net

19,544

21,181

Operating lease right-of-use assets

17,208

12,231

Goodwill

110,972

109,534

Intangible assets, net

46,325

47,891

Service and sales demonstration inventory, net

21,436

23,147

Deferred income tax assets, net

24,826

25,027

Other long-term assets

3,891

4,073

Total assets

$               489,630

$               504,692

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$                 30,438

$                 27,404

Accrued liabilities

25,208

29,930

Income taxes payable

6,881

5,699

Current portion of unearned service revenues

41,495

40,555

Customer deposits

4,282

4,251

Lease liabilities

4,645

5,434

Total current liabilities

112,949

113,273

Loan - 5.50% Convertible Senior Notes

70,096

72,760

Unearned service revenues - less current portion

20,051

20,256

Lease liabilities - less current portion

15,412

10,837

Deferred income tax liabilities

13,048

13,308

Income taxes payable - less current portion

2,510

5,629

Other long-term liabilities

46

23

Total liabilities

234,112

236,086

Commitments and contingencies

Shareholders' equity:

Common stock - par value $0.001, 50,000,000 shares authorized;

20,869,974 and 20,343,359 issued, respectively; 18,908,076 and 18,968,798

outstanding, respectively

20

20

Additional paid-in capital

354,765

346,277

Retained earnings

(17,869)

(9,789)

Accumulated other comprehensive loss

(40,729)

(37,247)

Common stock in treasury, at cost - 1,961,898 and 1,374,561 shares held,

respectively

(40,669)

(30,655)

Total shareholders' equity

255,518

268,606

Total liabilities and shareholders' equity

$               489,630

$               504,692