FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

Nine Months Ended September 30,

(in thousands)

2023

2022

Cash flows from:

Operating activities:

Net loss

$          (58,165)

$          (24,521)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

11,728

10,061

Stock-based compensation

12,276

10,024

Inventory write-downs

8,132

—

Asset impairment charges

5,333

—

Deferred income tax (benefit) expense and other non-cash charges

(82)

568

Provision for excess and obsolete inventory

1,754

209

Amortization of debt discount and issuance costs

294

—

Loss on disposal of assets

(155)

356

Provisions for bad debts, net of recoveries

834

80

Change in operating assets and liabilities:

Decrease (Increase) in:

Accounts receivable

1,282

867

Inventories

(544)

2,129

Prepaid expenses and other current assets

4,047

(14,566)

(Decrease) Increase in:

Accounts payable and accrued liabilities

(2,802)

(2,249)

Income taxes payable

653

1,008

Customer deposits

(1,534)

588

Unearned service revenues

(1,198)

(2,710)

Other liabilities

567

—

Net cash used in operating activities

(17,580)

(18,156)

Investing activities:

Purchases of property and equipment

(5,016)

(4,978)

Cash paid for technology development, patents and licenses

(5,071)

(9,154)

Acquisition of business, net of cash acquired

—

(29,068)

Net cash used in investing activities

(10,087)

(43,200)

Financing activities:

Payments on finance leases

(154)

(172)

Payments for taxes related to net share settlement of equity awards

(89)

(1,584)

Proceeds from issuance of 5.50% Convertible Senior Notes, due 2028, net of discount,
issuance cost and accrued interest

72,310

—

Payment of contingent consideration for business acquisition

(1,098)

—

Net cash provided by (used in) financing activities

70,969

(1,756)

Effect of exchange rate changes on cash and cash equivalents

(1,195)

(10,343)

Increase (Decrease) in cash and cash equivalents

42,107

(73,455)

Cash and cash equivalents, beginning of period

37,812

121,989

Cash and cash equivalents, end of period

$            79,919

$            48,534