FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

June 30, 2021 (unaudited)

December 31,
2020

ASSETS

Current assets:

Cash and cash equivalents

$

133,337

$

185,633

Accounts receivable, net

59,966

64,616

Inventories, net

51,433

47,391

Prepaid expenses and other current assets

26,978

26,295

Total current assets

271,714

323,935

Non-current assets:

Property, plant and equipment, net

21,578

23,091

Operating lease right-of-use assets

23,356

26,107

Goodwill

81,702

57,541

Intangible assets, net

24,252

13,301

Service and sales demonstration inventory, net

31,477

31,831

Deferred income tax assets, net

47,251

47,450

Other long-term assets

2,251

2,336

Total assets

$

503,581

$

525,592

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

14,115

$

14,121

Accrued liabilities

28,255

42,593

Income taxes payable

1,166

3,442

Current portion of unearned service revenues

40,098

39,149

Customer deposits

4,496

2,807

Lease liabilities

5,235

5,835

Total current liabilities

93,365

107,947

Unearned service revenues - less current portion

21,885

21,757

Lease liabilities - less current portion

19,962

22,131

Deferred income tax liabilities

674

787

Income taxes payable - less current portion

9,250

11,583

Other long-term liabilities

1,083

1,084

Total liabilities

146,219

165,289

Shareholders' equity:

Common stock - par value $.001, 50,000,000 shares authorized; 19,557,240 and 19,384,350 issued, respectively; 18,174,873 and 17,990,707 outstanding, respectively

20

19

Additional paid-in capital

294,490

287,979

Retained earnings

109,111

113,508

Accumulated other comprehensive loss

(15,467)

(10,160)

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

(30,792)

(31,043)

Total shareholders' equity

357,362

360,303

Total liabilities and shareholders' equity

$

503,581

$

525,592