FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

September 30,
2021 (unaudited)

December 31,

2020

ASSETS

Current assets:

Cash and cash equivalents

$

125,814

$

185,633

Accounts receivable, net

58,875

64,616

Inventories, net

55,507

47,391

Prepaid expenses and other current assets

28,776

26,295

Total current assets

268,972

323,935

Non-current assets:

Property, plant and equipment, net

22,576

23,091

Operating lease right-of-use assets

23,586

26,107

Goodwill

80,873

57,541

Intangible assets, net

24,714

13,301

Service and sales demonstration inventory, net

31,025

31,831

Deferred income tax assets, net

46,700

47,450

Other long-term assets

2,141

2,336

Total assets

$

500,587

$

525,592

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

16,415

$

14,121

Accrued liabilities

26,625

42,593

Income taxes payable

—

3,442

Current portion of unearned service revenues

38,555

39,149

Customer deposits

4,709

2,807

Lease liabilities

5,630

5,835

Total current liabilities

91,934

107,947

Unearned service revenues - less current portion

21,242

21,757

Lease liabilities - less current portion

19,724

22,131

Deferred income tax liabilities

595

787

Income taxes payable - less current portion

9,250

11,583

Other long-term liabilities

1,071

1,084

Total liabilities

143,816

165,289

Shareholders' equity:

Common stock - par value $.001, 50,000,000 shares authorized; 19,584,783 and 19,384,350 issued, respectively; 18,202,416 and 17,990,707 outstanding, respectively

20

19

Additional paid-in capital

298,082

287,979

Retained earnings

105,256

113,508

Accumulated other comprehensive loss

(15,795)

(10,160)

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

(30,792)

(31,043)

Total shareholders' equity

356,771

360,303

Total liabilities and shareholders' equity

$

500,587

$

525,592