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

Nine Months Ended

(in thousands)

September 30,
2022

September 30,
2021

Cash flows from:

Operating activities:

Net loss

$          (24,521)

$            (8,252)

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

Depreciation and amortization

10,061

9,560

Stock-based compensation

10,024

8,657

Provisions for bad debts, net of recoveries

80

33

Loss on disposal of assets

356

130

Provision for excess and obsolete inventory

209

1,955

Deferred income tax expense (benefit)

568

(3,667)

Change in operating assets and liabilities:

Decrease (Increase) in:

Accounts receivable

867

4,311

Inventories

2,129

(9,106)

Prepaid expenses and other current assets

(14,566)

(2,935)

(Decrease) Increase in:

Accounts payable and accrued liabilities

(2,249)

(14,153)

Income taxes payable

1,008

(1,847)

Customer deposits

588

1,966

Unearned service revenues

(2,710)

(2,223)

Net cash used in operating activities

(18,156)

(15,571)

Investing activities:

Purchases of property and equipment

(4,978)

(4,845)

Cash paid for technology development, patents and licenses

(9,154)

(1,933)

Acquisition of business, net of cash acquired

(29,068)

(33,908)

Net cash used in investing activities

(43,200)

(40,686)

Financing activities:

Payments on finance leases

(172)

(229)

Payments for taxes related to net share settlement of equity awards

(1,584)

(4,137)

Proceeds from issuance of stock related to stock option exercises

—

5,835

Net cash (used in) provided by financing activities

(1,756)

1,469

Effect of exchange rate changes on cash and cash equivalents

(10,343)

(5,031)

Decrease in cash and cash equivalents

(73,455)

(59,819)

Cash and cash equivalents, beginning of period

121,989

185,633

Cash and cash equivalents, end of period

$           48,534

$         125,814