FARO TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

September 30,
2020 (unaudited)

December 31,
2019

ASSETS

Current assets:

Cash and cash equivalents

$

163,637

$

133,634

Short-term investments

—

24,870

Accounts receivable, net

47,533

76,162

Inventories, net

50,004

58,554

Prepaid expenses and other current assets

23,566

28,996

Total current assets

284,740

322,216

Non-current assets:

Property, plant and equipment, net

22,962

26,954

Operating lease right-of-use asset

15,060

18,418

Goodwill

55,640

49,704

Intangible assets, net

13,475

14,471

Service and sales demonstration inventory, net

33,181

33,349

Deferred income tax assets, net

23,833

18,766

Other long-term assets

2,835

2,964

Total assets

$

451,726

$

486,842

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

9,096

$

13,718

Accrued liabilities

37,622

38,072

Income taxes payable

211

5,182

Current portion of unearned service revenues

37,523

39,211

Customer deposits

3,912

3,108

Lease liability

5,089

6,674

Total current liabilities

93,453

105,965

Unearned service revenues - less current portion

19,354

20,578

Lease liability - less current portion

11,781

13,698

Deferred income tax liabilities

734

357

Income taxes payable - less current portion

12,058

13,177

Other long-term liabilities

1,016

1,075

Total liabilities

138,396

154,850

Shareholders' equity:

Common stock - par value $.001, 50,000,000 shares authorized; 19,231,375 and 18,988,379 issued, respectively; 17,832,934 and 17,576,618 outstanding, respectively

19

19

Additional paid-in capital

276,779

267,868

Retained earnings

86,100

112,879

Accumulated other comprehensive loss

(18,526)

(17,399)

Common stock in treasury, at cost; 1,398,441 and 1,411,761 shares, respectively

(31,042)

(31,375)

Total shareholders' equity

313,330

331,992

Total liabilities and shareholders' equity

$

451,726

$

486,842