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

Six Months Ended

(in thousands)

June 30, 2020

June 30, 2019

Cash flows from:

Operating activities:

Net loss

$

(23,755)

$

(6,253)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

7,209

9,322

Stock-based compensation

4,345

5,316

Provisions for bad debts, net of recoveries

680

2

Loss on disposal of assets

299

348

Provision for excess and obsolete inventory

479

1,481

Deferred income tax benefit

(2,404)

(11)

Impairment charge on equity method investment

—

1,535

Change in operating assets and liabilities:

Decrease (Increase) in:

Accounts receivable

26,180

14,442

Inventories

892

(9,687)

Prepaid expenses and other current assets

11,347

2,282

Increase (Decrease) in:

Accounts payable and accrued liabilities

(1,395)

(1,466)

Income taxes payable

(5,058)

(3,119)

Customer deposits

384

(446)

Unearned service revenues

(3,139)

3,998

Net cash provided by operating activities

16,064

17,744

Investing activities:

Proceeds from sale of investments

25,000

—

Purchases of property and equipment

(1,533)

(3,693)

Proceeds from asset sales

643

—

Payments for intangible assets

(673)

(1,233)

Net cash provided by (used in) investing activities

23,437

(4,926)

Financing activities:

Payments on finance leases

(160)

(187)

Payments of contingent consideration for acquisitions

—

(250)

Payments for taxes related to net share settlement of equity awards

(2,409)

(1,440)

Proceeds from issuance of stock related to stock option exercises

3,854

735

Net cash provided by (used in) financing activities

1,285

(1,142)

Effect of exchange rate changes on cash and cash equivalents

(720)

145

Increase in cash and cash equivalents

40,066

11,821

Cash and cash equivalents, beginning of period

133,634

108,783

Cash and cash equivalents, end of period

$

173,700

$

120,604