FARO TECHNOLOGIES, INC. AND SUBSIDIARIES
| |||
| |||
| 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,
| 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 |