Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November ~~7, 2019, 16,413,473~~5, 2020, 19,187,490 shares of common stock, par value $0.01, were outstanding.

Condensed Statement of Consolidated Operations and Comprehensive Loss (Unaudited)

	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
	September 30,						September 30,						September 30,						September 30,
	2019			2018			2019			2018			2020			2019			2020			2019
Revenue	$	10,884		$	16,589		$	35,742		$	39,339		$	17,399		$	10,884		$	41,881		$	35,742
Cost of sales		8,006			10,016			25,080			28,560			13,500			8,006			31,263			25,080
Gross profit		2,878			6,573			10,662			10,779			3,899			2,878			10,618			10,662
Operating expenses
Research and development		2,430			2,444			7,399			8,474			2,013			2,430			6,858			7,399
Selling, general and administrative		5,326			5,200			16,916			17,755			4,825			5,326			15,476			16,916
Gain from sale-leaseback of property and equipment														—			—			(1,462	)		—
		7,756			7,644			24,315			26,229			6,838			7,756			20,872			24,315
Loss from operations		(4,878	)		(1,071	)		(13,653	)		(15,450	)		(2,939	)		(4,878	)		(10,254	)		(13,653	)
Other expense (income)
Interest expense		85			73			227			179			54			85			171			227
Other income ̶ net		(134	)		(838	)		(65	)		(936	)
Other expense (income) ̶ net														314			(134	)		319			(65	)
		(49	)		(765	)		162			(757	)		368			(49	)		490			162
Loss before income taxes		(4,829	)		(306	)		(13,815	)		(14,693	)		(3,307	)		(4,829	)		(10,744	)		(13,815	)
Provision (benefit) for income taxes		15			17			(686	)		52
(Benefit) provision for income taxes														(34	)		15			200			(686	)
Net loss	$	(4,844	)	$	(323	)	$	(13,129	)	$	(14,745	)	$	(3,273	)	$	(4,844	)	$	(10,944	)	$	(13,129	)
Net loss per common share:
Basic	$	(0.30	)	$	(0.02	)	$	(0.81	)	$	(0.91	)	$	(0.19	)	$	(0.30	)	$	(0.65	)	$	(0.81	)
Diluted	$	(0.30	)	$	(0.02	)	$	(0.81	)	$	(0.91	)	$	(0.19	)	$	(0.30	)	$	(0.65	)	$	(0.81	)
Comprehensive loss:
Net loss	$	(4,844	)	$	(323	)	$	(13,129	)	$	(14,745	)	$	(3,273	)	$	(4,844	)	$	(10,944	)	$	(13,129	)
Other comprehensive loss:
Other comprehensive income (loss):
Foreign currency translation adjustments		(1,387	)		(429	)		(1,580	)		(1,267	)		856			(1,387	)		388			(1,580	)
Comprehensive loss	$	(6,231	)	$	(752	)	$	(14,709	)	$	(16,012	)	$	(2,417	)	$	(6,231	)	$	(10,556	)	$	(14,709	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

	September 30,			December 31,			September 30,			December 31,
	2019			2018			2020			2019
Assets
Current assets:
Cash and cash equivalents	$	4,756		$	7,592		$	39,428		$	5,265
Restricted cash		1,364			1,548			508			978
Accounts receivable ̶ net		3,711			6,393			5,540			6,522
Current portion of net investment in sales-type leases		210			302			225			213
Inventories ̶ net		18,610			15,930			22,187			19,770
Prepaid expenses and other current assets		3,219			2,438			3,848			2,182
Total current assets		31,870			34,203			71,736			34,930
Property and equipment ̶ net		39,146			41,906			20,924			38,895
Operating lease right-of-use assets								4,278			432
Net investment in sales-type leases ̶ net of current portion		792			1,351			568			738
Other noncurrent assets		408			222			260			371
Total assets	$	72,216		$	77,682		$	97,766		$	75,366
Liabilities
Current liabilities:
Current portion of long-term debt	$	151		$	144		$	1,496		$	153
Current portion of operating lease liabilities								1,843			158
Accounts payable		6,035			4,376			4,445			5,818
Accrued expenses and other current liabilities		4,116			6,049			5,163			6,942
Current portion of contract liabilities		8,824			2,343			12,732			11,846
Total current liabilities		19,126			12,912			25,679			24,917
Related party revolving credit facility		2,000			—
Long-term debt ̶ net of current portion		1,250			1,364			1,948			1,211
Operating lease liabilities ̶ net of current portion								2,435			274
Contract liabilities ̶ net of current portion		227			527			156			286
Other noncurrent liabilities		250			104			365			96
Total liabilities		22,853			14,907			30,583			26,784
Contingencies and commitments
Stockholders' equity
Common stock, $0.01 par value, 200,000,000 shares authorized, 16,346,960 (2019) and 16,234,201 (2018) shares issued and outstanding		163			162
Common stock, $0.01 par value, 200,000,000 shares authorized, 18,988,099 (2020) and 16,346,960 (2019) shares issued and outstanding								190			163
Additional paid-in capital		176,510			175,214			205,980			176,850
Accumulated deficit		(114,982	)		(101,853	)		(127,892	)		(116,948	)
Accumulated other comprehensive loss		(12,328	)		(10,748	)		(11,095	)		(11,483	)
Total stockholders' equity		49,363			62,775			67,183			48,582
Total liabilities and stockholders' equity	$	72,216		$	77,682		$	97,766		$	75,366

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Nine Months Ended

September 30,

2019

2018

Operating activities

Net loss

$
(13,129
)

$
(14,745
)
Adjustments to reconcile net loss to net cash used for operations:

Depreciation and amortization

3,491

4,039

Equity-based compensation

1,076

656

Amortization of debt issuance costs

70

52

Provision (recoveries) for bad debts  ̶  net

264

(40
)
Provision for slow-moving, obsolete and lower of cost or
   net realizable value inventories  ̶  net

37

910

Gain from disposal of property and equipment  ̶  net

(2
)

(33
)
Changes in assets and liabilities, excluding effects of foreign currency
   translation adjustments:

Decrease in accounts receivable

2,790

3,014

Decrease in net investment in sales-type leases

218

152

Increase in inventories

(4,373
)

(7,458
)
Increase in prepaid expenses and other assets

(827
)

(761
)
Increase (decrease) in accounts payable

1,822

(637
)
Decrease in accrued expenses and other liabilities

(1,934
)

(206
)
Increase in contract liabilities

6,301

6,168

Net cash used for operating activities

(4,196
)

(8,889
)
Investing activities

Capital expenditures

(613
)

(1,192
)
Proceeds from sale of property and equipment

3

77

Net cash used for investing activities

(610
)

(1,115
)
Financing activities

Proceeds from related party revolving credit facility

2,000

—

Proceeds from exercise of employee stock options

289

521

Payments on long-term debt

(111
)

(106
)
Taxes related to the net share settlement of equity-based awards

(68
)

—

Debt issuance costs

—

(265
)
Other

(10
)

(13
)
Net cash provided by financing activities

2,100

137

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(314
)

(294
)
Net change in cash, cash equivalents, and restricted cash

(3,020
)

(10,161
)
Cash, cash equivalents, and restricted cash at beginning of period

9,140

22,178

Cash, cash equivalents, and restricted cash at end of period

$
6,120

$
12,017

Supplemental disclosure of noncash investing and financing activities

Transfer of internally developed 3D printing machines from inventories to
   property and equipment for internal use or leasing activities

$
1,635

$
1,521

Transfer of internally developed 3D printing machines from property
   and equipment to inventories for sale

$
485

$
847

Property and equipment reclassified as assets held for sale

$
—

$
822

Property and equipment included in accounts payable

$
48

$
48

Property and equipment included in accrued expenses and other current liabilities

$
—

$
4

Property and equipment acquired through financing arrangements

$
—

$
14

~~The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.~~

~~Condensed Statement of Changes in Consolidated Stockholders’ Equity (Unaudited)~~

Accumulated

other

Total

Common stock

Additional

Accumulated

comprehensive

stockholders'

Shares

$

paid-in capital

deficit

loss

equity

Balance at December 31, 2017

16,125

$
161

$
173,718

$
(89,186
)

$
(9,484
)

$
75,209

Net loss

—

—

—

(6,385
)

—

(6,385
)
Other comprehensive income

—

—

—

—

1,402

1,402

Equity-based compensation

—

—

379

—

—

379

Common stock issued from equity incentive plan

25

—

—

—

—

—

Balance at March 31, 2018

16,150

161

174,097

(95,571
)

(8,082
)

70,605

Net loss

—

—

—

(8,037
)

—

(8,037
)
Other comprehensive loss

—

—

—

—

(2,240
)

(2,240
)
Equity-based compensation

—

—

(5
)

—

—

(5
)
Balance at June 30, 2018

16,150

161

174,092

(103,608
)

(10,322
)

60,323

Net loss

—

—

—

(323
)

—

(323
)
Other comprehensive loss

—

—

—

—

(429
)

(429
)
Equity-based compensation

—

—

282

—

—

282

Exercise of employee stock options

66

1

520

—

—

521

Common stock issued from equity incentive plan

17

—

—

—

—

—

Balance at September 30, 2018

16,233

$
162

$
174,894

$
(103,931
)

$
(10,751
)

$
60,374

Balance at December 31, 2018

16,234

$
162

$
175,214

$
(101,853
)

$
(10,748
)

$
62,775

Net loss

—

—

—

(4,496
)

—

(4,496
)
Other comprehensive loss

—

—

—

—

(776
)

(776
)
Equity-based compensation

—

—

439

—

—

439

Exercise of employee stock options

23

1

164

—

—

165

Taxes related to the net share settlement of
equity-based awards

—

—

(68
)

—

—

(68
)
Common stock issued from equity incentive plan

38

—

—

—

—

—

Balance at March 31, 2019

16,295

163

175,749

(106,349
)

(11,524
)

58,039

Net loss

—

—

—

(3,789
)

—

(3,789
)
Other comprehensive income

—

—

—

—

583

583

Equity-based compensation

—

—

642

—

—

642

Exercise of employee stock options

13

—

97

—

—

97

Common stock issued from equity incentive plan

10

—

—

—

—

—

Balance at June 30, 2019

16,318

163

176,488

(110,138
)

(10,941
)

55,572

Net loss

—

—

—

(4,844
)

—

(4,844
)
Other comprehensive loss

—

—

—

—

(1,387
)

(1,387
)
Equity-based compensation

—

—

(5
)

—

—

(5
)
Exercise of employee stock options

4

—

27

—

—

27

Common stock issued from equity incentive plan

25

—

—

—

—

—

Balance at September 30, 2019

16,347

$
163

$
176,510

$
(114,982
)

$
(12,328
)

$
49,363

	Nine Months Ended
	September 30,
	2020			2019
Operating activities
Net loss	$	(10,944	)	$	(13,129	)
Adjustments to reconcile net loss to net cash used for operations:
Depreciation		2,925			3,491
Equity-based compensation		828			1,076
Amortization of debt issuance costs		39			70
(Recoveries) provision for bad debts ̶ net		(4	)		264
Provision for slow-moving, obsolete and lower of cost or net realizable value inventories ̶ net		335			37
Foreign exchange losses (gains) on intercompany transactions ̶ net		250			(127	)
Gain from sale-leaseback of property and equipment		(1,462	)		—
Gain from disposal of property and equipment ̶ net		(1	)		(2	)
Deferred income taxes		195			—
Changes in assets and liabilities, excluding effects of foreign currency translation adjustments:
Decrease in accounts receivable		1,092			2,790
Decrease in net investment in sales-type leases		158			218
Increase in inventories		(3,310	)		(4,373	)
Increase in prepaid expenses and other assets		(1,681	)		(827	)
(Decrease) increase in accounts payable		(1,679	)		1,822
Increase (decrease) in accrued expenses and other liabilities		396			(1,934	)
Increase in contract liabilities		248			6,301
Net cash used for operating activities		(12,615	)		(4,323	)
Investing activities
Capital expenditures		(772	)		(613	)
Proceeds from sale of property and equipment		16,229			3
Net cash provided by (used for) investing activities		15,457			(610	)
Financing activities
Proceeds from borrowings on long-term debt		2,194			—
Proceeds from related party revolving credit facility		—			2,000
Payments on long-term debt		(117	)		(111	)
Proceeds from at-the-market offerings of common stock, net of issuance costs		27,699			—
Taxes related to the net share settlement of equity-based awards		(15	)		(68	)
Proceeds from exercise of employee stock options		858			289
Other		(63	)		(10	)
Net cash provided by financing activities		30,556			2,100
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		295			(187	)
Net change in cash, cash equivalents, and restricted cash		33,693			(3,020	)
Cash, cash equivalents, and restricted cash at beginning of period		6,243			9,140
Cash, cash equivalents, and restricted cash at end of period	$	39,936		$	6,120
Supplemental disclosure of noncash investing and financing activities
Transfer of internally developed 3D printing machines from inventories to property and equipment for internal use or leasing activities	$	1,434		$	1,635
Transfer of internally developed 3D printing machines from property and equipment to inventories for sale	$	2,771		$	485
Property and equipment included in accounts payable	$	113		$	48
At-the-market offering issuance costs included in accounts payable	$	147		$	—
At-the-market offering issuance costs included in accrued expenses and other current liabilities	$	66		$	—

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Condensed Statement of Changes in Consolidated Stockholders’ Equity (Unaudited)

												Accumulated
												other			Total
	Common stock					Additional			Accumulated			comprehensive			stockholders'
	Shares			$		paid-in capital			deficit			loss			equity
Balance at December 31, 2018		16,234		$	162	$	175,214		$	(101,853	)	$	(10,748	)	$	62,775
Net loss		—			—		—			(4,496	)		—			(4,496	)
Other comprehensive loss		—			—		—			—			(776	)		(776	)
Equity-based compensation		—			—		439			—			—			439
Exercise of employee stock options		23			1		164			—			—			165
Tax withholding related to the net share settlement of equity-based awards		—			—		(68	)		—			—			(68	)
Common stock issued from equity incentive plan		38			—		—			—			—			—
Balance at March 31, 2019		16,295		$	163	$	175,749		$	(106,349	)	$	(11,524	)	$	58,039
Net loss		—			—		—			(3,789	)		—			(3,789	)
Other comprehensive income		—			—		—			—			583			583
Equity-based compensation		—			—		642			—			—			642
Exercise of employee stock options		13			—		97			—			—			97
Common stock issued from equity incentive plan		10			—		—			—			—			—
Balance at June 30, 2019		16,318		$	163	$	176,488		$	(110,138	)	$	(10,941	)	$	55,572
Net loss		—			—		—			(4,844	)		—			(4,844	)
Other comprehensive loss		—			—		—			—			(1,387	)		(1,387	)
Equity-based compensation		—			—		(5	)		—			—			(5	)
Exercise of employee stock options		4			—		27			—			—			27
Common stock issued from equity incentive plan		25			—		—			—			—			-
Balance at September 30, 2019		16,347		$	163	$	176,510		$	(114,982	)	$	(12,328	)	$	49,363

Balance at December 31, 2019		16,347		$	163	$	176,850		$	(116,948	)	$	(11,483	)	$	48,582
Net loss		—			—		—			(3,648	)		—			(3,648	)
Other comprehensive loss		—			—		—			—			(838	)		(838	)
Equity-based compensation		—			1		291			—			—			292
Common stock issued from equity incentive plan		39			—		—			—			—			—
Balance at March 31, 2020		16,386		$	164	$	177,141		$	(120,596	)	$	(12,321	)	$	44,388
Net loss		—			—		—			(4,023	)		—			(4,023	)
Other comprehensive income		—			—		—			—			370			370
Equity-based compensation		—			—		157			—			—			157
Exercise of employee stock options		73			1		540			—			—			541
Common stock issued from equity incentive plan		22			—		—			—			—			—
At-the-market offerings of common stock, net of issuance costs		383			4		3,094			—			—			3,098
Balance at June 30, 2020		16,864		$	169	$	180,932		$	(124,619	)	$	(11,951	)	$	44,531
Net loss		—			—		—			(3,273	)		—			(3,273	)
Other comprehensive income		—			—		—			—			856			856
Equity-based compensation		—			—		379			—			—			379
Exercise of employee stock options		44			—		317			—			—			317
Common stock issued from equity incentive plan		20			—		—			—			—			—
Tax withholding related to the net share settlement of equity-based awards		(1	)		—		(15	)		—			—			(15	)
At-the-market offerings of common stock, net of issuance costs		2,061			21		24,367			—			—			24,388
Balance at September 30, 2020		18,988		$	190	$	205,980		$	(127,892	)	$	(11,095	)	$	67,183

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

The ExOne Company (“ExOne”) is a corporation organized under the laws of the state of Delaware. ExOne was formed on January 1, 2013, when The Ex One Company, LLC, a Delaware limited liability company, merged with and into a Delaware corporation, which survived and changed its name to The ExOne Company (the “Reorganization”). As a result of the Reorganization, The Ex One Company, LLC became ExOne, the common and preferred interest holders of The Ex One Company, LLC became holders of common stock and preferred stock, respectively, of ExOne, and the subsidiaries of The Ex One Company, LLC became the subsidiaries of ExOne. The condensed consolidated financial statements include the accounts of ExOne, its wholly-owned subsidiaries, ExOne Americas LLC (United States); ExOne GmbH (Germany); ExOne Property GmbH (Germany); and ExOne KK (Japan)~~; and through December 2018, ExOne Italy S.r.l (Italy)~~. Collectively, the consolidated group is referred to as the “Company”.

The Company filed a shelf registration statement on Form S-3 (No. 333-223690) with the Securities and Exchange Commission ~~(“SEC”)~~ on March 15, 2018. The purpose of the Form S-3 was to register ~~among other securities,~~various equity and debt securities. Subsidiaries of the Company are co-registrants with the Company (“Subsidiary Guarantors”), and the registration statement registered guarantees of debt securities by one or more of the Subsidiary Guarantors. The Subsidiary Guarantors are 100% owned by the Company and any guarantees by the Subsidiary Guarantors will be full and unconditional. ~~There have been no transactions undertaken subject to the Form S-3 since its initial filing.~~

The condensed consolidated financial statements of the Company are unaudited. The condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, considered necessary by management to fairly state the results of operations, financial position and cash flows of the Company. All material intercompany transactions and balances have been eliminated in consolidation. The results reported in these condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the entire year. The December 31, ~~2018~~2019 condensed consolidated balance sheet data was derived from the audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). This Quarterly Report on Form 10-Q should be read in connection with the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2018,~~2019, which includes all disclosures required by GAAP.

The preparation of these condensed consolidated financial statements requires the Company to make certain judgments, estimates and assumptions regarding uncertainties that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosure of contingent assets and liabilities. Areas that require significant judgments, estimates and assumptions include accounting for accounts receivable (including the allowance for doubtful accounts); inventories (including the allowance for slow-moving and obsolete inventories); product warranty reserves; contingencies; income taxes (including the valuation allowance on certain deferred tax assets and liabilities for uncertain tax positions); equity-based compensation (including the valuation of certain equity-based compensation awards issued by the Company); and testing for impairment of long-lived assets (including the identification of asset groups by management, estimates of future cash flows of identified asset groups and fair value estimates used in connection with assessing the valuation of identified asset groups). The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

Certain amounts relating to ~~contract~~operating lease right-of-use assets ($432), current portion of operating lease liabilities ($158) and operating lease liabilities – net of current portion ($~~527)~~274) in the accompanying condensed consolidated balance sheet at December 31, ~~2018,~~2019, have been reclassified from other noncurrent ~~liabilities to conform to~~assets, accrued expenses and other current ~~period presentation, following the adoption of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-09 (further described below).~~

Certain amounts relating to the lessor current portion of net investment in sales-type leases ($302) and lessor net investment in sales-type leases – net of current portion ($1,351) in the accompanying condensed consolidated balance sheet at December 31, 2018, have been reclassified from accounts receivableliabilities and other noncurrent ~~assets,~~liabilities, respectively, to conform to current period ~~presentation following~~presentation.

Certain amounts in the ~~adoption of FASB ASU 2016-02 (further described below).~~

~~Related to the reclassifications further described above, amounts within the~~accompanying condensed statement of consolidated cash flows ~~for the nine months ended September 30, 2018 associated with these changes~~ have ~~also~~ been reclassified to conform to current period presentation.

~~On January 1, 2019,~~In March 2020, the World Health Organization declared the novel strain of coronavirus a global pandemic (“COVID-19”) and recommended containment and mitigation measures worldwide. The impact of COVID-19 and the related economic, business and market disruptions are evolving rapidly, and their effects are uncertain. As a result of COVID-19, the Company ~~adopted FASB ASU 2014-09, “Revenue~~was required to temporarily close its operations at its North Huntingdon, Pennsylvania facility for the period from ~~Contracts~~March 23 through March 30, 2020. In response to COVID-19, the Company has incurred incremental costs associated with ~~Customers.” This ASU created a comprehensive framework for all entities in all industries to apply in~~protecting the ~~determination of when to recognize revenue~~health and ~~therefore,~~

supersedes virtually all existing revenue recognition requirements and guidance. This framework is expected to provide a consistent and comparable methodology for revenue recognition. The core principlesafety of the ~~guidance is that an entity should recognize revenue to depict~~Company’s global workforce, enhanced sanitization of the ~~transfer of promised goods or services to customers~~Company’s global operating facilities, and information technology capabilities for employees operating remotely. Beginning in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this principle, an entity should apply the following steps: identify the~~contract(s) with~~March 2020, restrictions imposed by various governmental authorities on both domestic and international shipping and travel have caused a ~~customer, identify the performance obligations in the contract(s), determine the transaction price, allocate the transaction price~~disruption to the ~~performance obligations in the contract(s),~~timing of delivery and ~~recognize revenue when, or as, the entity satisfies a performance obligation. The Company adopted this guidance using the modified retrospective approach. Revenue from~~installation of the Company’s ~~sale of three-dimensional (“3D”)~~3D printing machines, ~~and 3D printed and other products, materials and services continues~~resulting in negative impacts to ~~generally be recognized when the related machines, products or materials are delivered or accepted by~~ the Company’s ~~customers or as~~financial position, results of operations and cash flows. The duration and severity of the ~~related services are performed by the Company. As such, the adoption of this guidance did not have a material~~outbreak and its long-term impact on the Company’s business are uncertain at this time. The Company is unable to predict the impact that COVID-19 will have on its future financial position, or results of ~~operations. The Company has included the enhanced disclosures required by this guidance in its condensed consolidated financial statements (Note 5).~~

On January 1, 2019, the Company adopted FASB ASU 2016-02, “Leases.” This ASU requires lessees to recognize a right-of-use asset and lease liability on the consolidated balance sheet for leases classified as operating leases. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize a right-of-use asset and lease liability. Additionally, when measuring assets and liabilities arising from a lease, optional payments should be included only if the lessee is reasonably certain to exercise an option to extend the lease, exercise a purchase option, or not exercise an option to terminate the lease. A right-of-use asset represents an entity’s right to use the underlying asset for the lease term, and a lease liability represents an entity’s obligation to make lease payments. Previously, an asset and liability only were recorded for leases classified as capital leases (financing leases). The measurement, recognition, and presentation of expensesoperations and cash flows arising from leases by a lessee remains the same. In connection with the adoption of this guidance, the Company has completed an assessment resulting in an accumulation of all of its leasing arrangements and has validated the information for accuracy and completeness. Upon adoption of the new lease guidance, management recorded a right-of-use asset and lease liability, each in the amount of approximately $400, on the Company’s consolidated balance sheet for various types of operating leases, including certain machinery and other equipment and vehicles. This amount is equivalent to the aggregate future minimum lease payments on a discounted basis. The Company has also elected to apply the package of transitional practical expedients of the new lease guidance by allowing the Company to not: (1) reassess if expired or existing contracts are, or contain, leases; (2) reassess lease classification for any expired or existing leases; and (3) reassess initial direct costs for any existing leases. Additionally, in July 2018, the FASB issued guidance to provide for an alternative transition method to the new lease guidance, whereby an entity can choose to not reflect the impact of the new lease guidance in the prior periods included in its consolidated financial statements. The Company has utilized this alternative transition method in connection with its adoption on January 1, 2019. The Company has included the enhanced disclosures required by this guidance in its condensed consolidated financial statements (Note 11).flows.

On January 1, 2019, the Company adopted FASB ASU 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments.” This ASU is intended to reduce diversity in practice in how certain cash receipts and payments are presented and classified in the statement of consolidated cash flows. The standard provides guidance in a number of situations including, among others, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, and distributions received from equity method investees. The ASU also provides guidance for classifying cash receipts and payments that have aspects of more than one class of cash flows. The adoption of this ASU did not have an effect on the consolidated financial statements of the Company.6

The Company considers the applicability and impact of all ~~ASUs~~Accounting Standards Updates (“ASUs”) issued by the ~~FASB.~~Financial Accounting Standards Board (the “FASB”). Recently issued ASUs not listed below either were assessed and determined to be not applicable or are currently expected to have no impact on the consolidated financial statements of the Company.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses.” This ASU added a new impairment model (known as the current expected credit loss (“CECL”) model) that is based on expected losses rather than incurred losses. Under ~~this ASU,~~the new guidance, an entity recognizes as an allowance its estimate of expected credit losses. The CECL model applies to most debt instruments, trade receivables, lease receivables, financial guarantee contracts, and other loan commitments. The CECL model does not have a minimum threshold for recognition of impairment losses and entities will need to measure expected credit losses on assets that have a low risk of loss. ~~These~~As a smaller reporting company pursuant to Rule 12b-2 of the Securities Exchange Act of 1934, as amended, these changes become effective for the Company on January 1, ~~2020.~~2023. Management is currently evaluating the potential impact of these changes on the consolidated financial statements of the Company.

The Company has incurred a net loss in each of its annual periods since its inception. As shown in the accompanying condensed statement of consolidated operations and comprehensive loss, the Company incurred a net loss of ~~$4,844~~$3,273 and ~~$13,129~~$10,944 for the three months and nine months ended September 30, ~~2019,~~2020, respectively. At September 30, ~~2019,~~2020, the Company had ~~$4,756~~$39,428 in unrestricted cash and cash equivalents. In addition to its unrestricted cash and cash equivalents, the Company also has access to additional capital through its $10,000 related party revolving credit facility (Note 12).

Since its inception, the Company has received cumulative unrestricted net proceeds from the sale of its common stock (through its initial public offering and subsequent ~~secondary~~public offerings, including at-the-market offerings) of ~~$168,361~~$195,847 to fund its operations. The Company maintains additional access to capital through its active shelf registration statement (Note 1) which allows for the sale of various equity or debt instruments up to an aggregate amount of $125,000 (including the at-the-market offerings further described below).

In ~~March 2018,~~June 2020, the Company entered into an equity distribution agreement (the “Oppenheimer Equity Distribution Agreement”) with Oppenheimer & Company, Inc. (“Oppenheimer”) pursuant to which Oppenheimer agreed to act as sales agent in the sale of up to $25,000 in the aggregate of ExOne common stock in “at-the-market offerings” as defined in Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”). Sales of common stock under the Oppenheimer Equity Distribution Agreement ended in September 2020 when the offering limit ($25,000) was reached. Following completion of this offering, in September 2020, the Company entered into a ~~three-year, $15,000 revolving credit facility~~separate equity distribution agreement (the “Canaccord Equity Distribution Agreement”) with Canaccord Genuity LLC (“Canaccord”), pursuant to which Canaccord agreed to act as sales agent in the sale of up to $25,000 in the aggregate of ExOne common stock in “at-the-market offerings” as defined in Rule 415 under the Securities Act. The terms of both the Oppenheimer Equity Distribution Agreement and the Canaccord Equity Distribution Agreement require a ~~related party (Note 13)~~3.0% commission on the sale of ExOne common stock as well as reimbursement of certain expenses incurred by the sales agent.

During the three months ended September 30, 2020, the Company sold 2,060,878 shares of common stock in the above-described at-the market offerings (1,822,274 shares under the Oppenheimer Equity Distribution Agreement and 238,604 shares under the Canaccord Equity Distribution Agreement) at an average selling price of $12.26 per share, resulting in net proceeds to ~~provide additional funding for working capital~~the Company (after deducting commissions) of $24,512. During the nine months ended September 30, 2020, the Company sold 2,443,479 shares of common stock in the above-described at-the-market offerings (2,204,875 shares under the Oppenheimer Equity Distribution Agreement and ~~general corporate purposes.~~ 238,604 shares under the Canaccord Equity Distribution Agreement) at an average selling price of $11.73 per share, resulting in net proceeds to the Company (after deducting commissions) of $27,800. During the three months and nine months ended September 30, 2020, the Company incurred expenses (other than commissions) associated with at-the-market offerings of $124 and $314, respectively. At September 30, ~~2019, $13,000~~2020, $213 of the expenses (other than commissions) associated with at-the-market offerings remained ~~available~~unpaid, of which $147 was included in accounts payable and $66 was included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheet.

There have been no sales of shares of common stock in at-the-market offerings subsequent to September 30, 2020. Future sales of securities in at-the-market offerings under the ~~related party revolving credit facility.~~ Company’s active shelf registration statement, if any, are dependent on market conditions, which may restrict the timing and extent of any future offering of securities by the Company.

In ~~June 2018,~~addition to net proceeds from the sale of its common stock, on April 18, 2020, the Company ~~initiated~~received additional unrestricted cash proceeds of $2,194 in connection with a Paycheck Protection Program loan (Note 13).

The Company has previously exhibited its ability to modify its operating structure and support its liquidity position through various restructuring and other actions, including its 2018 global cost realignment ~~program focused on~~program. In response to adverse market conditions associated with COVID-19, beginning in March 2020 and through April 2020, the Company initiated various cost savings actions including a ~~reduction~~mix of employee terminations, furloughs and pay rate reductions, as well as reductions in ~~the Company’s production overhead costs~~consulting and ~~operating~~other expenses, all in an effort to ~~drive efficiency in its operations~~conserve cash and ~~preserve capital.~~maintain adequate liquidity.

Management believes that the Company’s existing capital resources will be sufficient to support the Company’s operating plan. If management anticipates that the Company’s actual results will differ from its operating plan, management believes it has sufficient capabilities to enact cost savings measures to preserve capital (in addition to ~~the costs savings measures associated with the Company’s 2018 global cost realignment program~~those further ~~described~~discussed above). The Company may also seek to raise additional capital to support its growth through the incurrence of additional debt, the sale of equity or other alternatives (including asset sales) or a combination thereof.

The following table summarizes changes in the components of accumulated other comprehensive loss for the periods indicated:

Foreign currency translation adjustments consist of the effect of translation of functional currency financial statements (denominated in the euro and Japanese yen) to the reporting currency of the Company (United States dollar) and certain long-term intercompany transactions between subsidiaries for which settlement is not planned or anticipated in the foreseeable future.

There were no0 tax impacts related to income tax rate changes and no0 amounts were reclassified to earnings for either of the periods presented.

The Company presents basic and diluted loss per common share amounts. Basic loss per common share is calculated by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the applicable period. Diluted loss per common share is calculated by dividing net loss available to common stockholders by the weighted average number of common shares and common equivalent shares outstanding during the applicable period.

As the Company incurred a net loss during each of the three months and nine months ended September 30, ~~2019~~2020 and ~~2018,~~2019, basic average common shares outstanding and diluted average common shares outstanding were the same because the effect of potential shares of common stock, including stock options ~~(828,059~~(654,617 – ~~2019~~2020 and ~~513,970~~828,059 – ~~2018)~~2019) and unvested restricted stock issued ~~(66,513~~(199,391 – ~~2019~~2020 and ~~67,001~~66,513 – ~~2018)~~2019), was anti-dilutive.

The information used to compute basic and diluted net loss per common share was as follows for the periods indicated:

The Company derives revenue from the sale of 3D printing machines and 3D printed and other products, materials and services. Revenue is recognized when the Company satisfies its performance obligation(s) under a contract (either implicit or explicit) by transferring the promised product or service to a customer either when (or as) the customer obtains control of the product or service. A performance obligation is a promise in a contract to transfer a distinct product or service to a customer. A contract’s transaction price is allocated to each distinct performance obligation.

Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or providing services. As such, revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales, value add, and other taxes collected from customers and remitted to governmental authorities are accounted for on a net (excluded from revenue) basis. Shipping and handling costs are included in cost of sales.

Certain of the Company’s contracts with customers provide for multiple performance obligations. Sales of 3D printing machines may also include optional equipment, materials, replacement components and services (installation, training and other services, including maintenance services and/or an extended warranty). Certain other contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation using the Company’s best estimate of stand-alone selling price for each distinct product or service in the contract, which is generally based on an observable price.

The Company’s revenue from products is transferred to customers at a point in time. The Company’s contracts for 3D printing machines generally include substantive customer acceptance provisions. Revenue under these contracts is recognized when customer acceptance provisions have been satisfied. For all other product sales, the Company recognizes revenue at the point in time in which the customer obtains control of the product, which is generally when product title passes to the customer upon delivery. In ~~limited~~certain cases, title does not transfer and revenue is not recognized until the customer has received the products at its physical location.

The Company’s revenue from service arrangements includes deferred maintenance contracts and extended warranties that can be purchased at the customer’s option. The Company generally provides a standard one-year warranty on the Company’s 3D printing machines, which is considered an assurance type warranty, and not considered a separate performance obligation (Note ~~10)~~9). Revenue associated with deferred maintenance contracts is generally recognized at a point in time when the related services are performed where sufficient historical evidence indicates that the costs of performing the related services under the contract are not incurred on a straight-line basis, with such revenue recognized in proportion to the costs expected to be incurred. Revenue associated with extended warranties is generally recognized over time on a straight-line basis over the related contract period.

The Company’s revenue from service arrangements includes contracts with the federal government under fixed-fee, cost reimbursable and time and materials arrangements (certain of which may have periods of performance greater than one year). Revenue under these contracts is generally recognized over time using an input measure based upon ~~labor hours~~direct costs incurred and provisional rates provided under the contracts. As such, the nature of these contracts may give rise to variable consideration, primarily based upon completion of the Company’s annual ~~Incurred Cost Submission~~incurred cost submission filing as required by the federal government. Historically, amounts associated with variable consideration have not been significant.

The Company’s revenue from service arrangements includes certain research and development services. Revenue under research and development service contracts is generally recognized over time where progress is measured in a manner that reflects the transfer of control of the promised goods or services to the customer. Depending on the facts and circumstances surrounding each research and development service contract, revenue is recognized over time using either an input measure (based on the entity’s direct costs incurred in an effort to satisfy the performance obligations) or an output measure ~~specifically~~(specifically units or parts delivered, based upon certain customer acceptance and delivery ~~requirements. Revenue recognized over time using an output measure is not significant.~~requirements).

The following table summarizes the Company’s revenue by product group for the periods indicated:

Revenue from 3D printing machines includes leasing revenue whereby the Company is the lessor of 3D printing machines to its customers. Leasing revenue is accounted for under ASU 2016-02, “Leases” (Note ~~11)~~10).

The timing of revenue recognition, billings and cash collections results in billed receivables, unbilled receivables (contract assets) and deferred revenue and customer prepayments (contract liabilities) in the accompanying condensed consolidated balance sheet. The Company considers a number of factors in its evaluation of the creditworthiness of its customers, including past due amounts, past

payment history, and current economic conditions. For 3D printing machines, the Company’s terms of sale vary by transaction. To reduce credit risk in connection with 3D printing machine sales, the Company may, depending upon the circumstances, require customers to furnish letters of credit or bank guarantees or to provide advanced payment (either partial or in full). For 3D printed and other products and materials, the Company’s terms of sale generally require payment within 30 to 60 days after delivery, although the Company also recognizes that longer payment periods are customary in certain countries where it transacts business. Service arrangements are generally billed in accordance with specific contract terms and are typically billed in advance or in proportion to performance of the related services.

For the nine months ended September 30, 2020, the Company recognized revenue of $7,233 related to contract liabilities at January 1, 2020. There were no other significant changes in contract liabilities during the ~~three months or~~ nine months ended September 30, ~~2019.~~2020. Contract assets ~~are~~were not ~~significant.~~

~~For~~significant during the nine months ended September 30, ~~2019, the Company recognized revenue~~2020.

At September 30, ~~2019,~~ 2020, the Company had approximately ~~$25,800~~$42,600 of remaining performance obligations (including contract liabilities), which is also referred to as backlog, of which approximately ~~$21,700 was~~$35,500 is expected to be fulfilled during the next twelve months ~~following such date.~~notwithstanding uncertainty related to the impact of COVID-19 (Note 1) including, but not limited to, international shipping and travel restrictions brought about by COVID-19 which could have an adverse effect on the timing of delivery and installation of products and/or services to customers.

The Company has elected to apply the practical expedient associated with incremental costs of obtaining a contract, and as such, sales commission expense is generally expensed when incurred because the amortization period would be one year or less. These costs are recorded within selling, general and administrative expenses.

Accounts receivable and net investment in sales-type leases (Note ~~11)~~10) are reported at their net realizable value. The Company carries its investment in sales-type leases based on discounting the minimum lease payments by the interest rate implicit in the lease, ~~and~~ less an allowance for doubtful accounts. The Company’s estimate of the allowance for doubtful accounts related to accounts receivable and net investment in sales-type leases is based on the Company’s evaluation of customer accounts with past-due outstanding balances or specific accounts for which it has information that the customer may be unable to meet its financial obligations. Based upon review of these accounts, and management’s analysis and judgment, the Company records a specific allowance for that customer’s accounts receivable or net investment in sales-type lease balance to reduce the outstanding balance to the amount expected to be collected. The allowance is re-evaluated and adjusted periodically as additional information is received that impacts the allowance amount reserved. At September 30, ~~2019~~2020 and December 31, ~~2018,~~2019, the allowance for doubtful accounts was ~~$481~~ $524and ~~$225,~~$508, respectively. During the three months ended September 30, ~~2019~~2020 and ~~2018,~~2019, the Company recorded net provision ~~(recoveries)~~ for bad debts of ~~$414~~$15 and ~~($3),~~$414, respectively. During the nine months ended September 30, ~~2019~~2020 and ~~2018,~~2019, the Company recorded net (recoveries) provision ~~(recoveries)~~ for bad debts of ($4) and $264, ~~and ($40),~~ respectively.

In August 2018, the Company committed to a plan to consolidate certain of its 3D printing operations from its Houston, Texas facility into its Troy, Michigan facility. These actions were taken as part of the Company’s efforts to optimize its business model and maximize its facility utilization. During the three months ended September 30, 2018, the Company recorded a charge of $28 split between cost of sales ($15) and selling, general and administrative expense ($13) associated with involuntary employee terminations related to this plan. During the three months ended September 30, 2018, the Company recorded an additional charge of $1 (to cost of sales) associated with asset impairments related to this plan. There are no additional charges expected to be incurred associated with this plan in future periods. The Company settled all amounts associated with involuntary employee terminations during the three months ended September 30, 2018.

In September 2019, the Company reached agreement with a third party for the sale of certain property and equipment ($822 included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheet for each of the periods presented) associated with the former Houston, Texas facility. The Company expects to receive net proceeds from the sale of the property and equipment of approximately $1,000 during the three months ended December 31, 2019 and to record a corresponding gain on the sale of approximately $200 from the disposal.

In December 2017, the Company committed to a plan to consolidate certain of its 3D printing operations from its Desenzano del Garda, Italy facility into its Gersthofen, Germany facility. These actions were taken as part of the Company’s efforts to optimize its business model and maximize its facility utilization. During the three months ended December 31, 2017, the Company recorded a charge of $72 split between cost of sales ($19) and selling, general and administrative expense ($53) associated with involuntary employee terminations related to this plan. During the three months ended March 31, 2018, the Company recorded an additional charge of $245 associated with other exit costs ($17) and asset impairments ($228) related to this plan. During the three months ended June 30, 2018, the Company recorded an additional charge of $13 associated with asset impairments related to this plan. In addition, during the three months ended June 30, 2018, the Company recorded a gain from disposal of certain property and equipment of $51 (recorded to cost of sales in the accompanying condensed statement of consolidated operations and comprehensive loss). Charges associated with other exit costs recorded during the six months ended June 30, 2018 were recorded to cost of sales in the

accompanying condensed statement of consolidated operations and comprehensive loss. Charges associated with asset impairments recorded during the three and six months ended June 30, 2018 were recorded to cost of sales as a component of depreciation expense in the accompanying condensed statement of consolidated operations and comprehensive loss. Other exit costs relate to the remaining facility rent due under a non-cancellable operating lease following the cessation of operations at the facility in January 2018. Asset impairment charges relate to certain leasehold improvements associated with the exited facility and other equipment which was abandoned by the Company. There are no additional charges expected to be incurred associated with this plan in future periods. The Company settled all amounts associated with involuntary employee terminations and other exit costs (remaining facility rent payments) during 2018.

During the three months ended September 30, 2019, as a result of continued operating losses and cash flow deficiencies, the Company identified a triggering event requiring a test for the recoverability of long-lived assets held and used at the asset group level. Assessing the recoverability of long-lived assets held and used requires significant judgments and estimates by management.

For purposes of testing long-lived assets for recoverability, the Company operates as three separate asset groups: United States, Europe and Japan. In assessing the recoverability of long-lived assets held and used, the Company determined the carrying amount of long-lived assets held and used to be in excess of the estimated future undiscounted net cash flows of the related assets. The Company proceeded to determine the fair value of its long-lived assets held and used, principally through use of the market approach. The Company’s use of the market approach included consideration of market transactions for comparable assets. Management concluded that the fair value of long-lived assets held and used exceeded their carrying value, and as such, no impairment loss was recorded.

A significant decrease in the market price of a long-lived asset, adverse change in the use or condition of a long-lived asset, adverse change in the business climate or legal or regulatory factors impacting a long-lived asset and continued operating losses and cash flow deficiencies associated with a long-lived asset, among other indicators, could cause a future assessment to be performed which may result in an impairment of long-lived assets held and used, resulting in a material adverse effect on the financial position and results of operations of the Company.

The following provides a reconciliation of cash, cash equivalents, and restricted cash as reported in the accompanying condensed consolidated balance sheet to the same such amounts shown in the accompanying condensed statement of consolidated cash flows as of the dates indicated:

Restricted cash at both September 30, ~~2019~~2020 and December 31, 2018 includes $857 and $1,044, respectively, associated with cash collateral required by a German bank for short-term financial guarantees issued by ExOne GmbH in connection with certain commercial transactions requiring security (Note 12). Restricted cash at September 30, 2019 ~~and December 31, 2018 includes $507 and $504, respectively,~~included $508 associated with cash collateral required by a United States bank to offset certain short-term, unsecured lending commitments associated with the Company’s corporate credit card program.

Restricted cash at December 31, 2019 included $470 associated with cash collateral required by a German bank for short-term financial guarantees issued by ExOne GmbH in connection with certain commercial transactions requiring security. Refer to Note 11 for further discussion related to an amendment to this cash collateral requirement effective in February 2020.

Each of the balances ~~described~~discussed above are considered legally restricted by the Company.

Raw materials and components consist of consumable materials and component parts and subassemblies associated with 3D printing machine manufacturing and support activities. Work in process consists of 3D printing machines and other products in varying stages

of completion. Finished goods consist of 3D printing machines and other products prepared for sale in accordance with customer specifications.

At September 30, ~~2019~~2020 and December 31, ~~2018,~~2019, the allowance for slow-moving and obsolete inventories was ~~$3,684~~$2,562 and ~~$4,143,~~$3,443, respectively, and has been reflected as a reduction to inventories (principally raw materials and components). The following table summarizes changes in the allowance for slow-moving and obsolete inventories for the periods indicated:

Reductions for sale, consumption or scrap of previously reserved amounts for the nine months ended September 30, 2020 consist principally of certain raw material and component inventories associated with the Company’s former Exerial 3D printing platform, which were disposed of during the period. There was no significant benefit or charge recorded during the period in connection with the related disposals.

During the ~~three~~nine months ended ~~June~~September 30, ~~2018,~~2020, the Company recorded a charge of ~~$561~~$205 to cost of sales in the accompanying condensed statement of consolidated operations and comprehensive loss ~~attributable~~associated with certain inventories for which cost was determined to ~~certain industrial microwave inventories based on a sustained absence~~exceed net realizable value.

Property and equipment consisted of ~~demand for such curing solutions~~the following as of the dates indicated:

For the three months ended September 30, 2020 and ~~a decision by~~2019, depreciation expense was $817 and $1,142, respectively. For the nine months ended September 30, 2020 and 2019, depreciation expense was $2,925 and $3,491, respectively.

On February 18, 2020, the Company completed a sale-leaseback transaction associated with its European headquarters and operating facility in Gersthofen, Germany (Note 10). As a result of the completion of this transaction, the Company derecognized $17,282 in net property and equipment during the three months ended March 31, 2020. Sale of the facility resulted in a gain of $1,462 during the three months ended March 31, 2020.

During the three months ended September 30, 2020, as a result of continued operating losses and cash flow deficiencies, the Company identified a triggering event requiring a test for the recoverability of long-lived assets held and used at the asset group level. Assessing the recoverability of long-lived assets held and used requires significant judgments and estimates by management.

For purposes of testing long-lived assets for recoverability, the Company operates as 3 separate asset groups: United States, Europe and Japan. In assessing the recoverability of long-lived assets held and used, the Company determined the carrying amount of long-lived assets held and used to ~~discontinue~~be in excess of the estimated future ~~manufacturing~~undiscounted net cash flows of the related assets. The Company proceeded to determine the fair value of its long-lived assets held and used, principally through use of the market approach. The Company’s use of the market approach included consideration of market transactions for comparable assets. Management concluded that the fair value of long-lived assets held and used exceeded their carrying value, and as such, ~~industrial microwaves.~~0 impairment loss was recorded.

A significant decrease in the market price of a long-lived asset, adverse change in the use or condition of a long-lived asset, adverse change in the business climate or legal or regulatory factors impacting a long-lived asset and continued operating losses and cash flow deficiencies associated with a long-lived asset, among other indicators, could cause a future assessment to be performed which may result in an impairment of long-lived assets held and used, which could result in a material adverse effect on the financial position and results of operations of the Company.

Substantially all of the Company’s 3D printing machines are covered by a standard ~~twelve-month~~one-year warranty. Generally, at the time of sale, a liability is recorded (with an offset to cost of sales) based upon the expected cost of replacement parts and labor to be incurred over the life of the standard warranty. Expected cost is estimated using historical experience for similar products. The Company periodically assesses the adequacy of the product warranty reserves based on changes in these factors and records any necessary adjustments if actual experience indicates that adjustments are necessary. Future claims experience could be materially different from prior results because of the introduction of new, more complex products, a change in the Company’s warranty policy in response to industry trends, competition or other external forces, or manufacturing changes that could impact product quality. In the event that the Company determines that its current or future product repair and replacement costs exceed estimates, an adjustment to these reserves would be charged to cost of sales in the period such a determination is made.

The following table summarizes changes in product warranty reserves, which amounts were reflected in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheet for the periods indicated:

The Company leases facilities, machinery and other equipment and vehicles under operating lease arrangements (with initial terms greater than twelve months), expiring in various years through 2026. In addition, the Company leases certain equipment and vehicles under finance ~~(previously capital)~~ lease arrangements, which are not significant.

For all operating lease arrangements (with the exception of short-term lease arrangements), the Company presents at the commencement date: a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.

The Company has elected, as a practical expedient, not to separate non-lease components from lease components, and instead ~~account~~accounts for each separate component as a single lease component for all lease arrangements, as lessee. In addition, the Company has elected, as a practical expedient, not to apply lease recognition requirements to short-term lease arrangements, generally those with a lease term of less than twelve months, for all classes of underlying assets. In determination of the lease term, the Company considers the likelihood of lease renewal options and lease termination provisions. As a result, lease payments under these short-term lease arrangements are recognized in the accompanying condensed statement of consolidated operations and comprehensive loss on a straight-line basis over the lease term.

The Company uses its incremental borrowing rate in determining the present value of lease payments, as the implicit rate of the lease arrangements is generally not readily determinable.

Through July 2019, certain of the Company’s operating lease arrangements were with related parties under common control (Note 18). Lease cost under operating lease agreements with related parties, included within short-term lease cost below, was $4 and $28 for the three ~~months~~ and nine months ended September 30, ~~2019.~~2019, respectively.

Future minimum lease payments of operating lease arrangements (with initial terms greater than twelve months)at September 30, ~~2019,~~2020, were as ~~follows:~~follows:

For the three months and nine months ended September 30, 2020, lease cost under operating lease arrangements was $527 and $1,560, including $24 and $96 relating to short-term lease arrangements, respectively. For the three months and nine months ended September 30, 2019, lease cost under operating lease arrangements was $94 ~~(including $44 relating to short-term lease arrangements)~~ and $305, ~~(including~~including $44 and $156 relating to short-term lease ~~arrangements),~~arrangements, respectively.

Supplemental information related to operating lease arrangements ~~(with initial terms greater than twelve months)~~ was as follows atas of and for the nine months ended September 30, ~~2019:~~2020:

~~As previously disclosed under~~On December 10, 2019, ExOne Property GmbH and ExOne GmbH, the German subsidiaries of the Company (the “German Subsidiaries”), entered into a purchase agreement (the “Purchase Agreement”) with Solidas Immobilien und Grundbesitz GmbH, a private, unaffiliated German real estate investor (the “Buyer”), for the sale of the Company’s European headquarters and operating facility in Gersthofen, Germany (the “Facility”) for a purchase price of approximately $18,500 (€17,000), of which approximately $2,200 (€2,000) was received prior to December 31, 2019. Concurrent with the execution of the Purchase Agreement, ExOne GmbH and the Buyer entered into a rental contract (the “Lease”) for the leaseback of the Facility for an initial aggregate annual rent totaling approximately $1,700 (€1,500), plus applicable taxes, which is fixed during the initial three-year term and is subject to adjustment on an annual basis (in accordance with the consumer price index for Germany) during the 2 five-year option extension periods. The sale-leaseback transaction closed on February 18, 2020. In connection with the completion of the sale-leaseback transaction, the Company recorded an operating lease ~~accounting standard,~~right-of-use asset and corresponding operating lease liability of $4,605, which was representative of the present value of future minimum lease payments over the initial three-year term, as there were no penalties or other factors associated with the lease that resulted in reasonable assurance of ~~operating lease arrangements (with initial terms greater than twelve months)~~its extension at ~~December 31, 2018, were as follows:~~inception.

The Company leases machinery and equipment to customers (principally 3D printing machines and related equipment) under lease arrangements classified as either operating leases or sales-type leases. The Company’s operating lease arrangements have initial terms generally ranging from one to five years, certain of which may contain extension or termination clauses, or both. Such operating lease arrangements also generally include a purchase option to acquire the related machinery and equipment at the end of the lease term for either a fixed amount as determined at inception, or a subsequently negotiated fair market value. At September 30, ~~2019,~~2020, the Company estimated that the total fair market value significantly exceeded the related net book value of the machinery and equipment held under the Company’s operating lease arrangements. The Company’s sales-type lease arrangements generally include transfer of ownership at the end of the lease term, and as such, the Company’s net investment in sale-type lease arrangements presented in the Company’s accompanying condensed consolidated balance sheet generally does not include an amount of unguaranteed residual value.

~~The~~For certain of its arrangements, the Company ~~has elected, as a practical expedient, not to separate~~separates and allocates (Note 5) certain non-lease components (principally maintenance services) from lease ~~components, and instead account for each separate component as a single lease component for all lease arrangements, as lessor.~~components. Sales, value add, and other taxes collected from customers and remitted to governmental authorities are accounted for on a net (excluded from lease income) basis. In determination of the lease term, the Company considers the likelihood of lease renewal options and lease termination provisions. Additionally, certain of the Company’s lease arrangements do not qualify as sale-type leases, as collectability is not reasonably assured.

The Company recognized the following components under operating and sales-type lease arrangements in the accompanying condensed statement of consolidated operations and comprehensive loss for the periods indicated:

The Company’s net investment in sales-type leases consisted of the following as of the dates indicated:

During the three months and nine months ended September 30, 2019, the Company recorded a provision for bad debt of $416 based on a deterioration in credit quality of a lessee. There were no such provisions recorded during the three months or nine months ended September 30, 2018.

Future minimum lease payments of non-cancellable operating and sales-type lease arrangements atas of September 30, ~~2019,~~2020 were as follows:

~~As previously disclosed under the prior lease accounting standard, minimum future rentals under non-cancellable operating and sales-type lease arrangements at December 31, 2018, were as follows:~~

On March 1, 2018, the Company’s ExOne GmbH subsidiary notified Voxeljet AG that it had materially breached a 2003 Patent and Know-How Transfer Agreement and asserted its rights to set-off damages as a result of the breaches against the annual license fee due from the Company under the agreement. At this time, the Company cannot reasonably estimate a contingency, if any, related to this matter.

The Company ~~and its subsidiaries are~~is subject to various litigation, claims, and proceedings which have been or may be instituted or asserted from time to time in the ordinary course of business. Management does not believe that the outcome of any pending or threatened matters will have a material adverse effect, individually or in the aggregate, on the financial position, results of operations or cash flows of the Company.

In the normal course of its operations, ExOne GmbH issues short-term financial guarantees and letters of credit to third parties in connection with certain commercial transactions requiring ~~security. ExOne GmbH maintains~~security through a credit facility with a German ~~bank which provides for various short-term financings in~~bank.

On February 24, 2020, ExOne GmbH entered into an amendment and replacement of its credit facility with the ~~form~~German bank. The credit facility amendments included the elimination of the overdraft credit and short-term loan features of the prior agreement and replaced them with an increased capacity amount of approximately $4,100 (€3,500) for the issuance of financial guarantees and letters of credit ~~and collateral security~~ for commercial transactions requiring security. The cash collateral requirement for ~~an aggregate~~the issuance of ~~approximately $1,400 (€1,300). In addition, ExOne GmbH may use the~~financial guarantees and letters of credit ~~facility~~ for ~~short-term, fixed-rate loans in minimum increments of approximately $100 (€100) with minimum terms of at least~~ 30 ~~days. The overdraft credit interest rate is fixed at 10.2% while the interest rate associated with~~ commercial transactions requiring security ~~(financial~~was eliminated for amounts up to approximately $1,200 (€1,000) as the amendment provided the German bank with a collateral interest in the accounts receivable of ExOne GmbH. Amounts in excess of approximately $1,200 (€1,000) continue to require cash collateral under the amended credit facility.

At September 30, 2020, total outstanding financial guarantees and letters of credit ~~or collateral security) is fixed at 1.75%. The~~issued by ExOne GmbH under the amended credit facility ~~has an indefinite term and is subject to cancellation by either party at any time upon repayment of amounts outstanding or~~were $583 (€497), with expiration of commercial transactions requiring security. There is no commitment fee associated with the credit facility. There are no negative covenants associated with the credit facility. The credit facility has been guaranteed by the Company.dates ranging from October 2020 through February 2023. At ~~September 30, 2019 and~~ December 31, ~~2018, there were no outstanding borrowings in the form of overdraft credit or short-term loans under the credit facility. At September 30,~~ 2019, total outstanding financial guarantees and letters of credit issued by ExOne GmbH under the former credit facility were ~~$857~~$560 (€~~785) with expiration dates ranging from~~ ~~October 2019~~ ~~through March 2020. At December 31, 2018, total outstanding financial guarantees and letters of credit issued by ExOne GmbH under the credit facility were $1,044 (€912)~~499).

In addition to amounts issued by ExOne GmbH under the credit facility, from time to time, ExOne GmbH enters into separate agreements with the same German bank for additional capacity for financial guarantees and letters of credit associated with certain commercial transactions requiring security. Terms of the separate agreements are substantially similar to those of the existing credit facility. At September 30, 2019 and December 31, 2018, ExOne GmbH had a singular financial guarantee outstanding under a separate agreement for $87 (€80) and $96 (€80), respectively, with an expiration date of February 2023. Related to this separate agreement, the requirement for cash collateral was waived by the German bank as it also represents the counterparty in the related transaction.

On March 12, 2018, ~~ExOne~~the Company and its ExOne Americas LLC and ExOne GmbH subsidiaries, as guarantors (collectively, the “Loan Parties”), entered into a Credit Agreement and related ancillary agreements with LBM Holdings, LLC (“LBM”), a company controlled by S. Kent Rockwell, who was the Executive Chairman of the Company (a related party) at such date and is currently Chairman of the ~~Board of Directors (the “Board”) of the~~ Company, relating to a $15,000 revolving credit facility (the ~~“LBM Credit~~“Credit Agreement”) to provide additional funding to the Company for working capital and general corporate purposes. The ~~LBM~~ Credit Agreement ~~provides~~provided a credit facility for a term of three years (through March 12, 2021) ~~and bears~~, bearing interest at a rate of one-month LIBOR plus an applicable margin of 500 basis points ~~(7.0%~~(6.8% at December 31, 2019 and ~~7.5%~~5.1% at September 30, ~~2019 and December 31, 2018, respectively)~~2020). The ~~LBM~~ Credit Agreement ~~requires~~required a commitment fee of 75 basis points, or 0.75%, on the unused portion of the facility, payable monthly in arrears. In addition, an up-front commitment fee of 125 basis points, or 1.25% ($188), was required at closing. Borrowings under the ~~LBM~~ Credit Agreement were collateralized by the accounts receivable, inventories and machinery and equipment of the Loan Parties.

On February 18, 2020, the Loan Parties and LBM entered into a First Amendment to the Credit Agreement (the “Amendment”) which (i) reduced the available capacity under the revolving credit facility to $10,000, (ii) extended the term of the credit facility until March 31, 2024, (iii) increased the commitment fee to 100 basis points, or 1.00%, on the unused portion of the revolving credit facility, and (iv) provided a process for the replacement of the LIBOR index after 2021. In addition, the accounts receivable of ExOne GmbH no longer serve as collateral for borrowings under the amended revolving credit facility.

Borrowings under the credit facility are required to be made in minimum increments of $1,000. ~~ExOne~~The Company may terminate or reduce the credit commitment at any time during the term of the ~~LBM~~amended Credit Agreement without penalty. ~~ExOne~~The Company may also make prepayments against outstanding borrowings under the ~~LBM~~amended Credit Agreement at any time without penalty. ~~Borrowings under the LBM Credit Agreement have been collateralized by the accounts receivable, inventories~~At December 31, 2019 and ~~machinery and equipment of the Loan Parties. At~~ September 30, ~~2019 and December 31, 2018,~~2020, the total estimated value of collateral was in significant excess of the maximum borrowing capacity under the ~~LBM Credit Agreement.~~credit facility.

The ~~LBM~~amended Credit Agreement contains several affirmative covenants including prompt payment of liabilities and taxes; maintenance of insurance, properties, and licenses; and compliance with laws. The ~~LBM~~amended Credit Agreement also contains several negative covenants including restricting the incurrence of certain additional debt; prohibiting future liens (other than permitted liens); prohibiting investment in third parties; limiting the ability to pay dividends; limiting mergers, acquisitions, and dispositions; and limiting the sale of certain property and equipment of the Loan Parties. The ~~LBM~~amended Credit Agreement does not contain any financial

covenants. The ~~LBM~~amended Credit Agreement also contains events of default, including, but not limited to, cross-default to certain other debt, breaches of representations and warranties, change of control events and breaches of covenants. The Company has obtained waivers related to its event of default on its building note payable (Note 13) and for the incurrence of additional debt associated with its PPP Loan (Note 13).

The Company does not consider the Credit Agreement, as amended, indicative of a fair market value lending, as LBM was determined to be a related party based on common control by S. Kent Rockwell. ~~Accordingly,~~S. Kent Rockwell is the ~~Company does not consider the LBM Credit Agreement indicative~~indirect sole owner of ~~a fair market value lending.~~LBM. Prior to execution, each of the ~~LBM~~ Credit Agreement and the Amendment was reviewed and approved by the Audit Committee of the Company’s Board of Directors (the “Board”), in accordance with The ExOne Company Policy and Procedures with Respect to Related Person Transactions, and subsequently by a sub-committee of independent members of the Board. At the time of execution of the ~~LBM~~ Credit Agreement, the ~~$15,000 in~~ available loan proceeds ~~was~~were deposited into an escrow account with an unrelated, third party financial institution acting as escrow agent pursuant to a separate ~~Escrow Agreement~~escrow agreement by and among the parties. Loan proceeds held in escrow are available to the Company upon its submission to the escrow agent of a loan request. Such proceeds will not be available to LBM until payment in-full of the obligations under the ~~LBM~~amended Credit Agreement and termination of the ~~LBM~~amended Credit Agreement. Payments of principal and other obligations will be made to the escrow agent, while interest payments will be made directly to LBM. Provided there exists no potential default or event of default, the ~~LBM~~amended Credit Agreement and ~~Escrow Agreement~~the escrow agreement prohibit any acceleration of repayment of any amount outstanding under the ~~LBM~~amended Credit Agreement and prohibit termination of the ~~LBM~~amended Credit Agreement or withdrawal from escrow of any unused portion of the available loan ~~proceeds~~proceeds.

~~During~~during the three or nine months ended September 30, ~~2019, the Company borrowed $2,000~~2020 or 2019. There were 0 borrowings outstanding under the ~~LBM Credit Agreement which remained outstanding~~credit facility at either September 30, 2020 or December 31, 2019.~~There were no borrowings by the Company under the LBM Credit Agreement during any period prior to the three months ended September 30, 2019 from its inception (March 12, 2018).~~

The Company incurred $265 in debt issuance costs associated with the ~~LBM Credit Agreement~~inception of the credit facility (including the aforementioned ~~up front~~up-front commitment fee paid at closing to LBM). and $49 in debt issuance costs associated with the Amendment.

During the three months and nine months ended September 30, ~~2019,~~2020, the Company recorded interest expense relating to the ~~LBM Credit Agreement~~credit facility of ~~$65~~$34 and ~~$165,~~$113, respectively. Included in interest expense for the three months and nine months ended September 30, ~~2019~~2020 was ~~$22~~$8 and ~~$66,~~$35, respectively, associated with amortization of debt issuance ~~costs. At September 30, 2019 and December 31, 2018,~~costs (resulting in $120 in remaining debt issuance costs ~~were $129 and $195, respectively (of~~at September 30, 2020, of which ~~$88~~$35 was included in prepaid expenses and other current assets ~~for both periods~~ and ~~$41 and $107, respectively,~~$85 was included in other noncurrent assets in the accompanying condensed consolidated balance sheet). ~~Also included~~Included in interest expense for the three months and nine months ended September 30, ~~2019~~2020 was ~~$43~~$26 and ~~$99,~~$78, respectively, associated with ~~interest on borrowings and~~ the commitment fee on the unused portion of the revolving credit facility. At September 30, ~~2019~~2020 and December 31, ~~2018, $20~~2019, $8 and ~~$10,~~$28, respectively, ~~was~~associated with the commitment fee on the unused portion of the revolving credit facility were included in accounts payable inon the accompanying condensed consolidated balance sheet. Amounts payable to LBM at September 30, ~~2019~~2020 and December ~~2018~~31, 2019 were settled by the Company in October ~~2019~~2020 and January ~~2019,~~2020, respectively.

During the three ~~months~~ and nine months ended September 30, ~~2018,~~2019, the Company recorded interest expense ~~relating~~related to the ~~LBM Credit Agreement~~credit facility of ~~$51~~$65 and ~~$110,~~$165, respectively.

On April 18, 2020, the Company entered into an unsecured promissory note (the “Note”) with an unrelated United States bank (the “Lender”) reflecting a loan in the principal amount of $2,194 (the “Loan”). The Loan was granted pursuant to the Paycheck Protection Program (the “PPP”) administered by the United States Small Business Administration (the “SBA”) as part of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”).

Pursuant to the terms of the Note, the Loan bears interest at a rate of 1.00% per annum and matures on April 18, 2022 (the “Maturity Date”). Principal and interest payments on the Loan are deferred until November 18, 2020, at which time equal installments of principal and interest will be due and payable monthly through the Maturity Date. The Note may be prepaid by the Company at any time prior to maturity without penalty. If the Company defaults on the Note, the Lender may, at its option, accelerate the maturity of the Company’s obligations under the Note.

Pursuant to the terms of the PPP, the Loan, or a portion thereof, may be forgiven if Loan proceeds are used for qualifying expenses as described in the CARES Act, such as payroll costs, costs used to continue group health care benefits, mortgage interest payments, rent and utilities. The Company intends to use all or a significant majority of the Loan proceeds for qualifying expenses. The terms of the Loan, including eligibility and forgiveness, may be subject to further requirements in regulations and guidance adopted by the SBA, including the Paycheck Protection Flexibility Act enacted in June 2020. The Company has elected to account for the Loan in accordance with the terms of the Note while its forgiveness eligibility remains subject to review.

On May 21, 2012, the Company entered into a building note payable with an unrelated United States bank. Terms of the building note payable include monthly payments of $18, including interest at 4.00% through May 2017, and subsequently, monthly payments of $19 including interest at the monthly average yield on United States Treasury Securities plus 3.25% for the remainder of the term through May 2027. The building note payable is collateralized by the Company’s facility located in North Huntingdon, Pennsylvania which had a carrying value of $4,838 at September 30, 2020.

At December 31, 2019, the Company identified that it was not in compliance with the annual cash flow-to-debt service ratio covenant associated with the building note payable. The Company requested and was granted a waiver related to compliance with this annual covenant at December 31, 2019 and through December 31, 2020. Related to the 2019 non-compliance, there were no cross-default provisions or related impacts on other lending or financing agreements (Note 12).

The (benefit) provision ~~(benefit)~~ for income taxes for the three months ended September 30, 2020 and 2019 was ($34) and ~~2018 was~~ $15, ~~and $17,~~ respectively. The provision (benefit) for income taxes for the nine months ended September 30, 2020 and 2019 was $200 and ~~2018 was~~ ($686) ~~and $52,~~, respectively. The Company has completed a discrete period computation of its (benefit) provision ~~(benefit)~~ for income taxes for each of the periods presented. The discrete period computation was required as a result of jurisdictions with losses before income taxes for which no tax benefit can be recognized and an inability to generate reliable estimates for results in certain jurisdictions as a result of inconsistencies in generating net operating profits (losses) in those jurisdictions.

The effective tax rate for the three months ended September 30, 2020 and 2019 ~~and 2018~~ was ~~0.3% (provision~~1.0% (benefit on a loss) and ~~5.6%~~0.3% (provision on a loss), respectively. The effective tax rate for the nine months ended September 30, 2020 and 2019 was 1.9% (provision on a loss) and ~~2018 was~~ 5.0% (benefit on a loss), respectively.

For the three and ~~0.4% (provision on a loss), respectively. For~~nine months ended September 30, 2020 and the three months ended September 30, 2019, ~~and 2018,~~ the effective tax rate ~~differs~~differed from the United States federal statutory rate of 21.0% primarily due to net changes in valuation allowances for the ~~periods.~~period. For the nine months ended September 30, 2019, the effective tax rate ~~differs~~differed from the United States federal statutory rate of 21.0% primarily due to the reversal of previously recorded liabilities for uncertain tax positions (further ~~described~~discussed below) and net changes in valuation allowances for the period. For the nine months ended September 30, 2018, the effective tax rate differs from the United States federal statutory rate of 21.0% primarily due to net changes in valuation allowances for the periods.

The Company has provided a valuation allowance for certain of its net deferred tax assets as a result of the Company not generating consistent net operating profits in certain jurisdictions in which it operates. As such, ~~any benefit~~certain benefits from deferred taxes in ~~any of~~ the periods presented ~~has~~have been fully offset by changes in the valuation allowance for the related net deferred tax assets. The Company continues to assess its future taxable income by jurisdiction based on recent historical operating results, the expected timing of reversal of temporary differences, various tax planning strategies that the Company may be able to enact in future periods, the impact of potential operating changes on the business and forecast results from operations in future periods based on available information at the end of each reporting period. To the extent that the Company is able to reach the conclusion that ~~its~~ net deferred tax assets are realizable based on any combination of

the above factors in a single, or in multiple, taxing jurisdictions, a reversal of the related portion of the Company’s existing valuation allowances may occur.

~~The Company has a liability for uncertain tax positions related to certain intercompany transactions.~~

A reconciliation of the beginning and ending amount of unrecognized tax benefits (including accrued interest and penalties) was as follows for the periods indicated:

The Company includes interest and penalties related to income taxes as a component of the (benefit) provision ~~(benefit)~~ for income taxes in the accompanying condensed statement of consolidated operations and comprehensive loss. There were no0 such interest or penalties included in the (benefit) provision ~~(benefit)~~ for income taxes for any of the periods presented.

At December 31, 2018, there was $820 in unrecognized tax benefits (including accrued interest and penalties) that if recognized would affect the annual effective tax rate. Such amounts were included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheet at December 31, 2018. There were no such unrecognized tax benefits at September 30, 2019.

At December 31, 2018, the Company’s ExOne GmbH (2010-2013) and ExOne Property GmbH (2013) subsidiaries were under examination by local taxing authorities in Germany. In January 2019, this examination was concluded ~~by the local taxing authorities in Germany~~ without significant adjustment to previously established tax positions. As a result, during the three months ended March 31, 2019, the Company recorded a reversal of certain of its previously recorded liabilities for uncertain tax positions of $1,075, of which $257 was offset against net operating loss carryforwards.

On January 24, 2013, the Board adopted the 2013 Equity Incentive Plan (the “Plan”). In connection with the adoption of the Plan, 500,000 shares of common stock were reserved for issuance pursuant to the Plan, with automatic increases in such reserve available each year annually on January 1 from 2014 through 2023 equal to the lesser of 3.0% of the total outstanding shares of common stock as of December 31 of the immediately preceding year, or a number of shares of common stock determined by the Board, provided that the maximum number of shares authorized under the Plan could not exceed 1,992,241 shares, subject to certain adjustments. The maximum number of shares authorized under the Plan was reached on January 1, 2017. At September 30, ~~2019, 654,134~~2020, 495,804 shares remained available for future issuance under the ~~Plan.~~Plan.

Stock options and restricted stock issued by the Company under the Plan are generally subject to service conditions resulting in annual vesting on the anniversary of the date of grant over a period typically ranging between one and three years. Certain stock options and restricted stock issued by the Company under the Plan vest immediately upon issuance. Stock options issued by the Company under the Plan have contractual lives which expire over a period typically ranging between five and ten years from the date of grant, subject to continued service to the Company by the ~~participant.~~participant.

On February 7, 2018, the Compensation Committee of the Board adopted the 2018 Annual Incentive Program (the “2018 Program”) as a subplan under the Plan. The 2018 Program provided an opportunity for performance-based compensation to senior executive officers of the Company, among others. The target annual incentive for each 2018 Program participant was expressed as a percentage of base salary and was conditioned on the achievement of certain financial goals (as approved by the Compensation Committee of the Board) or a combination of financial and non-financial goals. The Compensation Committee of the Board retained negative discretion over amounts payable under the 2018 Program.

On February 6, 2019, the Compensation Committee of the Board adopted the 2019 Annual Incentive Program (the “2019 Program”) as a subplan under the Plan. The 2019 Program provided an opportunity for performance-based compensation to senior executive officers of the Company, among others. The target annual incentive for each 2019 Program participant was expressed as a percentage of base salary and was conditioned on the achievement of certain financial goals (as approved by the Compensation Committee of the Board) ~~or a combination of financial and non-financial goals.~~. The Compensation Committee of the Board retained negative discretion over amounts payable under the 2019 Program. During the three months ended September 30, 2019, the Company recorded a net

reversal of $376 to equity-based compensation expense based on a change in the estimated outcome of the defined financial goals for 2019 under the 2019 program.

On February 5, 2020, the Compensation Committee of the Board adopted the 2020 Annual Incentive Program (the “2020 Program”) as a subplan under the Plan. The 2020 Program provided an opportunity for performance-based compensation to senior executive officers of the Company, among others. The target annual incentive for each 2020 Program participant was expressed as a percentage of base salary and was conditioned on the achievement of certain financial goals (as approved by the Compensation Committee of the Board). The Compensation Committee of the Board retained negative discretion over amounts payable under the 2020 Program. During the three and nine months ended September 30, 2020, the Company recorded 0equity-based compensation expense based on the estimated outcome of the defined financial goals for 2020 under the 2020 Program.

The following table summarizes the total equity-based compensation expense recognized by the Company for the periods indicated:

At September 30, ~~2019,~~2020, total future compensation expense related to unvested awards yet to be recognized by the Company was ~~$992~~$387 for stock options and ~~$293~~$1,664 for restricted stock. Total future compensation expense related to unvested awards yet to be recognized by the Company is expected to be recognized over a weighted-average remaining vesting period of ~~1.5~~2.3 years.

The fair value of stock options ~~granted~~ was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions for the periods indicated:

For certain stock option awards, ~~in which~~volatility is estimated based on the historical volatility of the Company when the expected term of the award is less than the period for which the Company has been publicly ~~traded,~~traded. For certain stock option awards, volatility is estimated based on the historical ~~volatility~~volatilities of ~~the Company. For~~ certain ~~stock option awards in which~~peer group companies when the expected term of the award exceeds the period for which the Company has been publicly ~~traded, volatility is estimated based on the historical volatilities of certain peer group companies.~~traded. The average risk-free rate is based on a weighted average yield curve of risk-free interest rates consistent with the expected term of the awards. Expected dividend yield is based on historical dividend data as well as future expectations. Expected term is calculated using the simplified method as the Company does not have sufficient historical exercise experience upon which to base an estimate.

	Nine Months Ended September 30,														Nine Months Ended September 30,
	2019							2018							2020							2019
	Number of Options			Weighted Average Exercise Price		Weighted Average Grant Date Fair Value		Number of Options			Weighted Average Exercise Price		Weighted Average Grant Date Fair Value		Number of Options			Weighted Average Exercise Price		Weighted Average Grant Date Fair Value		Number of Options			Weighted Average Exercise Price		Weighted Average Grant Date Fair Value
Outstanding at beginning of period		621,986		$	10.66	$	5.52		674,470		$	11.58	$	6.41		854,259		$	9.34	$	4.49		621,986		$	10.66	$	5.52
Stock options granted		290,610		$	7.35	$	2.95		147,500		$	7.01	$	3.13		25,022		$	14.40	$	5.99		290,610		$	7.35	$	2.95
Stock options exercised		(40,432	)	$	7.17	$	3.03		(65,833	)	$	7.91	$	3.87		(117,854	)	$	7.28	$	3.12		(40,432	)	$	7.17	$	3.03
Stock options forfeited		(9,773	)	$	7.67	$	3.70		(133,835	)	$	9.44	$	5.15		(79,936	)	$	7.85	$	3.41		(9,773	)	$	7.67	$	3.70
Stock options expired		(34,332	)	$	16.87	$	10.30		(108,332	)	$	13.28	$	7.58		(26,874	)	$	12.02	$	6.78		(34,332	)	$	16.87	$	10.30
Outstanding at end of period		828,059		$	9.44	$	4.56		513,970		$	10.94	$	5.89		654,617		$	9.81	$	4.75		828,059		$	9.44	$	4.56
Stock options exercisable at end of period		403,479		$	11.30	$	6.02		360,132		$	12.41	$	6.90
Stock options expected to vest at end of period		424,580		$	7.68	$	3.18		153,838		$	7.49	$	3.52
Exercisable at end of period																506,295		$	10.46	$	5.27		403,479		$	11.30	$	6.02
Expected to vest at end of period																148,322		$	7.62	$	3.01		424,580		$	7.68	$	3.18

At September 30, ~~2019,~~2020, intrinsic value associated with stock options exercisable and expected to vest was ~~$232~~$1,479 and ~~$557,~~$705, respectively. The weighted average remaining contractual term of stock options exercisable and ~~stock options~~ expected to vest at September 30, ~~2019,~~2020, was 3.3 years and 4.0 years, ~~and 4.5 years,~~ respectively. Stock options with an aggregate intrinsic value of $1,096 were exercised by employees during the nine months ended September 30, 2020, resulting in proceeds to the Company from the exercise of stock options of $858. Stock options with an aggregate intrinsic value of $358 were exercised by employees during the nine months ended September 30, 2019, resulting in proceeds to the Company from the exercise of stock options of $289. Stock options with an aggregate intrinsic value of $574 were exercised by employees during the nine months ended September 30, 2018, resulting in proceeds to the Company from the exercise of stock options of $521. The Company ~~received no~~recorded 0 income tax benefit related to ~~stock option exercises in any period.~~these exercises.

Restricted stock that vested during the nine months ended September 30, ~~2019~~2020 and ~~2018,~~2019, had a fair value of $635 and $535, respectively.

Participants have the option to elect net settlement for restricted stock awards. Under net settlement, the Company withholds shares of stock that would otherwise be delivered to the employee and ~~$326, respectively.~~

remits cash equal to the fair value of shares withheld to the taxing authority to satisfy tax withholding obligations. During the nine months ended September 30, 2020 and 2019, the Company ~~made cash payments for taxes~~withheld shares with a fair value of $15 and $68, ~~relating~~respectively, related to the net settlement of ~~certain equity-based~~restricted stock awards. ~~There were no cash payments for taxes or net settlement of equity-based awards during the nine months ended September 30, 2018.~~

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk.

The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

The Company is required to disclose its estimate of the fair value of material financial instruments, including those recorded as assets or liabilities in its consolidated financial statements, in accordance with GAAP.

At September 30, ~~2019~~2020 and December 31, ~~2018,~~2019, the Company had no0 financial instruments (assets or liabilities) measured at fair value on a recurring basis.

The carrying values and fair values of other financial instruments (assets and liabilities) not required to be recorded at fair value were as follows as of the dates indicated:

The carrying amounts of cash and cash equivalents and restricted cash ~~and current portion of long-term debt~~ approximate fair value due to their short-term maturities. The fair value of current portion of long term debt and long-term debt – net of current portion has been estimated by management based on the consideration of applicable interest rates, ~~(including~~including certain instruments at variable or floating ~~rates)~~rates and the nominal fixed interest rate (1.0%) associated with the Company’s PPP Loan (Note 13) and other available information (including quoted prices of similar instruments available to the Company). Cash and cash equivalents and restricted cash were classified as Level 1; Current portion of long-term debt and long-term debt – net of current portion were classified as Level 2.2.

During the three months and nine months ended September 30, ~~2019~~2020 and ~~2018,~~2019, the Company conducted a significant portion of its business with a limited number of customers, though not necessarily the same customers for each respective period. For the three months ended September 30, ~~2019~~2020 and ~~2018,~~2019, the Company’s five most significant customers represented ~~30.2%~~39.5% and ~~34.6%~~30.2% of total revenue, respectively. For the nine months ended September 30, ~~2019~~2020 and ~~2018,~~2019, the Company’s five most significant customers represented ~~23.8%~~20.0% and ~~17.9%~~23.8% of total revenue, respectively. At September 30, ~~2019~~2020 and December 31, ~~2018,~~2019, accounts receivable from the Company’s five most significant customers were ~~$638~~$1,291 and ~~$2,344,~~$3,230, respectively.

Purchases of products and/or services from related parties during the three months ~~ended September 30, 2019~~ and ~~2018, were $5 and $4, respectively. Purchases of products and/or services from related parties during the~~ nine months ended September 30, 2019 were $5 and ~~2018, were~~ $63, ~~and $16,~~ respectively. Purchases of products and/or services by the Company during ~~each of~~ the ~~respective periods~~three and nine months ended September 30, 2019 primarily included website design services and leased office space (through July 2019) from related parties under common control by S. Kent Rockwell, (currently ~~the~~ Chairman of the Board of the Company and previously the Executive Chairman and Chief Executive

Officer of the Company)~~. Also included in purchases of products and/or services by the Company during the nine months ended September 30, 2019, was~~ and the purchase of a 3D printing machine and certain ancillary equipment for $30 from an educational institution determined to be a related party on the basis that S. Kent Rockwell serves as a trustee of the educational institution.

None of the transactions met a threshold requiring review and approval by the Audit Committee of the Board.

~~Amounts due to related parties associated with the purchase~~ There were 0 purchases of products and/or services ~~at December 31, 2018 were $1 and are reflected in accounts payable in~~from related parties during the ~~accompanying condensed consolidated balance sheet.~~three or nine months ended September 30, 2020. There were no0 amounts due to related parties associated with the purchase of products and/or services at either September 30, 2020 or December 31, 2019.

The Company also receives the benefit of the corporate use of an airplane from a related party under common control by S. Kent Rockwell for no consideration. There were no such benefits received during the three months ended September 30, 2019. The Company estimates the fair market value of the benefits received during the nine months ended September 30, 2019 was $3. ~~The Company estimates the fair market value of the~~There were no such benefits received during the three months and nine months ended September 30, ~~2018 was $5.~~2020.

Refer to Note 1312 for further discussion relating to athe Company’s revolving credit facility with a related ~~party entered into in March 2018.~~party.

Other expense (income) – net consisted of the following for the periods indicated:

For the three and nine months ended September 30, 2018, gain on settlement of insurance claim represented $819 of a realized gain associated with an insurance recovery for a 3D printing machine damaged by a third-party freight company while in transit.

The Company has evaluated all of its activities and concluded that no other subsequent events have occurred that would require recognition in the condensed consolidated financial statements or disclosure in the notes to the condensed consolidated financial ~~statements.~~statements.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis should be read together with our unaudited condensed consolidated financial statements and related notes thereto set forth in this Quarterly Report on Form 10-Q as well as our Annual Report on Form 10-K for the year ended December 31, ~~2018.~~2019.

This Quarterly Report on Form 10-Q may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to our future financial or business performance, strategies, or expectations. Forward-looking statements typically are identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” as well as similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could” and “may.”

We caution that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made and we assume no duty, and do not undertake, to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to items described under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, ~~2018,~~ 2019 and as modified and supplemented by “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q, the following factors, among others, could cause results to differ materially from forward-looking statements or historical performance: the severity and duration of world health events, including the outbreak of the novel strain of coronavirus COVID-19 and the related economic repercussions and operational challenges; our ability to consistently generate operating profits; fluctuations in our ~~revenue~~revenues and operating results; our competitive environment and our competitive position; our ability to enhance our current 3Dthree-dimensional (“3D”) printing machines and technology and develop and introduce new 3D printing machines; ~~delays in customer capital equipment spending due to macroeconomic factors;~~ our ability to qualify more industrial materials in which we can print; demand for our products; the availability of skilled personnel; the impact of loss of key management; the impact of market conditions and other factors on the carrying value of long-lived assets; our ability to continue as a going concern; the impact of customer specific terms in machine sale agreements onin determining the period in which we recognize revenue; risks related to global operations including effects of COVID-19; foreign currency; the adequacy of sources of liquidity; the amount and sufficiency of funds for required capital expenditures, working capital, and debt service; dependency on certain critical suppliers; nature or impact of alliances and strategic investments; reliance on critical information technology systems; the effect of litigation, contingencies and warranty claims; liabilities under laws and regulations protecting the environment; the impact of governmental laws and regulations; operating hazards, war, terrorism and cancellation or unavailability of insurance coverage; the impact of disruption of our manufacturing facilities or ExOne Adoption Centers (“EACs”); the adequacy of our protection of our intellectual property; ~~and~~ expectations regarding demand for our industrial products, operating ~~revenue,~~revenues, operating and maintenance expenses, insurance expenses and deductibles, interest expenses, debt levels, and other matters with regard to outlook.; and other factors beyond our control, including the impact of COVID-19.

We are a global provider of 3D printing machines and 3D printed and other products, materials and services to industrial customers. Our business primarily consists of manufacturing and selling 3D printing machines and printing products to specification for our customers using our installed base of 3D printing machines. Our machines serve direct (metal) and indirect (sand) applications. Direct printing produces a component; indirect printing makes a tool to produce a component. We offer pre-production collaboration and print products for customers through our network of EACs. We also supply the associated materials, including consumables and replacement parts, and other services, including training and technical support, that are necessary for purchasers of our 3D printing machines to print products. We believe that our ability to print in a variety of industrial materials, as well as our industry-leading volumetric output (as measured by build box size and printing speed), uniquely position us to serve the needs of industrial customers.

~~We plan~~The impact of COVID-19 and the related economic, business and market disruptions are evolving rapidly, and their effects are uncertain. As a result of COVID-19, we were required to ~~grow~~temporarily close our ~~market leading position~~operations at our North Huntingdon, Pennsylvania facility for the period from March 23 through March 30, 2020. In response to COVID-19, we have incurred incremental costs associated with ~~respect~~protecting the health and safety of our global workforce, enhanced sanitization of our global operating facilities, and information technology capabilities for employees operating remotely. Beginning in March 2020, restrictions imposed by various governmental authorities on both domestic and international shipping and travel have caused a disruption to the timing of delivery and installation of our 3D printing ~~solutions~~machines, resulting in negative impacts to our financial position, results of operations and cash flows. The duration and severity of the outbreak and its long-term impact on our business are uncertain at this time. We are unable to predict the impact that COVID-19 will have on our future financial position, results of operations and cash flows.

In response to adverse market conditions associated with COVID-19, beginning in March 2020 and through April 2020, we initiated various cost savings actions including a mix of employee terminations, furloughs and pay rate reductions, as well as reductions in consulting and other expenses, all in an effort to conserve cash and maintain adequate liquidity. As a result of these actions, and other reduced costs such as global travel, we realized approximately $4,000 in cash cost savings through September 30, 2020. We estimate additional cash cost savings in the range of approximately $1,000 to $2,000 for ~~customers~~the remainder of 2020, with approximately $2,000 to $3,000 of the total 2020 cash cost savings sustained into 2021. Given the high level of uncertainty associated with the duration and severity of COVID-19, we expect to continue ~~advancing~~to assess whether additional cost actions are necessary to further adjust our ~~innovations~~operating model.

We are the global leader in ~~direct and indirect printing, principally through an expansion~~industrial 3D printers utilizing binder jetting technology for non-polymer-based materials. Our continued focus is to achieve profitable growth via three strategic initiatives:

Our operating results continue to be impacted by a prolonged downturn in global manufacturing trends as a result of COVID-19 which has influenced the capital expenditure investments of our ~~fine powder (less than 20 micron) direct printing capabilities~~customers. Despite these headwinds, we ended the third quarter with a record backlog balance of approximately $42,600. We expect the combination of our backlog at September 30, 2020 and ~~development activities associated~~an acceleration in market adoption of our binder jetting technology, including our newly introduced printer platforms (our X1 25Pro^® , X1 160Pro^TM and InnoventPro^® for metal applications and S-Max Pro^TM for sand applications), to provide the basis for our operating stability for the remainder of 2020 and into 2021 despite continuing negative macroeconomic trends for global manufacturing, including the impact of COVID-19.

Sale-Leaseback of European Headquarters and Operating Facility in Gersthofen, Germany

On December 10, 2019, ExOne Property GmbH and ExOne GmbH (our “German Subsidiaries”) entered into a purchase agreement (the “Purchase Agreement”) with ~~large format direct~~Solidas Immobilien und Grundbesitz GmbH, a private, unaffiliated German real estate investor (the “Buyer”), for the sale of our European headquarters and ~~indirect 3D printing machines. Our focus continues~~operating facility in Gersthofen, Germany (the “Facility”) for a cash price of approximately $18,500 (€17,000), of which approximately $2,200 was received prior to December 31, 2019. Concurrently with the execution of the Purchase Agreement, ExOne GmbH and the Buyer entered into a rental contract (the “Lease”) for the leaseback of the Facility for an initial aggregate annual rent totaling approximately $1,700 (€1,500), plus applicable taxes, which is fixed during the initial three-year term and is subject to adjustment on an annual basis (in accordance with the consumer price index for Germany) during the two five-year option extension periods. The sale-leaseback transaction closed on February 18, 2020.

As a result of the completion of the sale-leaseback transaction further discussed above, we recorded or expect to record the following effects on our results of operations, financial condition and cash flows:

At September 30, 2020, our backlog was approximately $42,600 of which approximately $35,500 is expected to be ~~industrial markets for utilization~~fulfilled during the next twelve months notwithstanding uncertainty related to the impact of ~~binder jetting technologies for non-polymer based materials. Our strength in industrial markets is rooted in~~COVID-19 (further discussed above) including, but not limited to, domestic and international shipping and travel restrictions brought about by COVID-19 which could have an adverse effect on the timing of delivery and installation of products and/or services to customers. At December 31, 2019, our ~~diverse material capabilities, our lower cost of adoption versus other competing technologies, our faster printing speeds~~backlog was approximately $31,100 and ~~our scalability to larger product size.~~

Atat September 30, 2019 our backlog was approximately ~~$25,800 of which approximately $21,700 was expected to be fulfilled during the twelve months following such date. At December 31, 2018, our backlog was approximately $12,300.~~$25,800.

Purchases of our 3D printing machines are often subject to the capital expenditure cycles of our customers. Generally, 3D printing machine sales are higher in our third and fourth quarters than in our first and second quarters; however, as acceptance of our 3D printing machines as a credible alternative to traditional methods of production grows, we expect to limit the seasonality we experience.

We believe that COVID-19 may have an adverse effect on the future capital expenditure decisions of our customers outside of their normal spending cycles, which may impact the timing and extent of such decisions.

Net loss for the three months ended September 30, ~~2019~~2020 was ~~$4,844,~~$3,273, or ~~$0.30~~$0.19 per basic and diluted share, compared with a net loss of ~~$323~~$4,844, or ~~$0.02~~$0.30 per basic and diluted share, for the three months ended September 30, ~~2018.~~ 2019. The decrease in our net loss was principally due to an increase in revenue and gross profit, primarily due to a higher volume of sales of 3D printing machines combined with a decrease in operating expenses (research and development and selling, general and administrative expenses) primarily as a result of certain cost savings actions taken, and other cost reductions realized, as a result of COVID-19.

Net loss for the nine months ended September 30, ~~2019,~~2020 was ~~$13,129,~~$10,944, or ~~$0.81~~$0.65 per basic and diluted share, compared with a net loss of ~~$14,745~~$13,129, or ~~$0.91~~$0.81 per basic and diluted share, for the nine months ended September 30, ~~2018.~~

The increase in our net loss for the three months ended September 30, 2019 as compared to the three months ended September 30, 2018 was principally due to a reduction in our revenues and gross profit, as well as the absence of a gain from an insurance recovery for a 3D printing machine damaged by a third party freight company while in transit (all changes further described below).

2019. The decrease in our net loss ~~for the nine months ended September 30, 2019 as compared to the nine months ended September 30, 2018~~ was principally due to lower operating expenses primarily as a result of certain cost savings actions taken, and other cost reductions realized, as a result of COVID-19 and the absence of costs associated with the GIFA international foundry show in Dusseldorf, Germany (a once every four-year event), which we attended in June 2019. We also recognized a gain of $1,462 during the three months ended March 31, 2020 associated with the sale-leaseback of our European headquarters and operating facility in Gersthofen, Germany. Partially offsetting the decrease in ~~our operating expenses (research and development and selling, general and administrative expense) mostly due to our 2018 global cost realignment program and a~~net loss, during the three months ended March 31, 2019, we recorded an income tax benefit of $818 associated with the reversal of previously recorded liabilities for uncertain tax positions ~~offset by~~following the completion of a ~~reduction in~~tax examination of our ~~revenues and gross profit and the absence of the aforementioned gain from an insurance recovery (all changes further described below).~~German operations.

The following table summarizes revenue by product ~~group:~~group for the periods indicated:

Revenue for the three months ended September 30, ~~2019~~2020 was ~~$10,884,~~$17,399, compared with revenue of ~~$16,589~~$10,884 for the three months ended September 30, ~~2018, a decrease~~2019, an increase of ~~$5,705,~~$6,515, or ~~34.4%~~59.9%. The ~~decrease~~increase in revenue resulted from ~~a decrease~~an increase in revenue attributable to our 3D printing machines product group, ~~offset by an~~primarily due to a higher volume of sales of 3D printing machines.

The increase in ~~revenue attributable~~revenues from 3D printing machines of $6,516 for the three months ended September 30, 2020, or 164.0%, as compared to the same period in the prior year, resulted from higher volumes (13 units sold during the three months ended September 30, 2020 versus nine units sold during the three months ended September 30, 2019) including contributions from our fourth quarter 2019 product introductions, the S-Max Pro^TM (sand) and X1 25Pro^TM (metal) platforms and a favorable mix of machine sold.

Revenue from 3D printed and other products, materials and services for the three months ended September 30, 2020 was generally consistent with the three months ended September 30, 2019. Comparably, increases in our aftermarket revenues of $572, driven by increases in our global installed base of 3D printing machines, and funded research and development arrangements of $283, driven by an automotive project which commenced during the three months ended December 31, 2019, were offset by decreases in revenues associated with our global sand EAC network of $918 based on lower end market demand as a result of the impact of COVID-19 on the macroeconomic environment.

Revenue for both product ~~group.~~groups were impacted by COVID-19, including disruptions to domestic and international shipping and travel in addition to the negative macroeconomic effects.

Revenue for the nine months ended September 30, 2020 was $41,881, compared with revenue of $35,742 for the nine months ended September 30, 2019, an increase of $6,139, or 17.2%. The ~~decrease~~increase in revenue resulted from an increase in revenue attributable to both our product groups.

The increase in revenues from 3D printing machines ~~resulted from a lower volume~~ of ~~units sold (nine 3D printing machines sold during~~$5,171 for the ~~three~~nine months ended September 30, ~~2019,~~2020, or 31.3%, as compared to ~~15 3D printing machines~~the same period in the prior year, resulted from higher volumes (35 units sold during the ~~three~~nine months ended September 30, ~~2018),~~2020 versus 30 units sold during the nine months ended September 30, 2019) and ~~an unfavorable~~a favorable mix of machines ~~sold, with a greater share of direct printers sold as compared to indirect printers (such indirect printers generally bearing a higher average selling price as compared to direct printers).~~ sold.

The increase in revenues from 3D printed and other products, materials and services ~~principally~~of $968 for the nine months ended September 30, 2020, or 5.0%, as compared to the same period in the prior year, resulted from an increase of $1,177 in consumable materials and aftermarket ~~sales (maintenance services and replacement components)~~revenues based on ~~an increased~~growth in our global installed base of 3D printing machines ~~offset by a decrease in materials (mostly~~and an increase of $897 associated with research and development arrangements primarily due to an automotive project which commenced during the three months ended December 31, 2019. Offsetting these increases were reductions in ~~pricing).~~

~~Revenue for the nine months ended September 30, 2019, was $35,742 compared with revenue~~revenues of $39,339 for the nine months ended September 30, 2018, a decrease of $3,597, or 9.1%. The decrease in revenue resulted from a decrease in revenue attributable to both of our product groups. The decrease in revenues from 3D printing machines resulted from a lower average selling price of units sold (primarily due to the mix of 3D printing machines sold), offset by a slightly higher volume of units sold (30 3D printing machines sold during the nine months ended September 30, 2019, as compared to 28 3D printing machines sold during the nine months ended September 30, 2018)~~. The decrease in revenues from 3D printed and other products, materials and services principally resulted from a decrease in revenues~~$1,098 from our ~~direct EAC printing operations (mostly due to the timing~~global EACs (metal and sand) based on lower end market demand as a result of ~~orders from a key customer), indirect EAC printing operations (mostly due to lower volumes of printed products and~~ the impact of ~~our exit of our Houston, Texas facility in August 2018, such facility contributing approximately $900 in revenue during~~COVID-19 on the ~~nine months ended September 30, 2018) and~~macroeconomic environment.

~~materials (mostly due to reductions in pricing based on external competition) offset by an increase in aftermarket sales based on an increased global installed base of 3D printing machines.~~ Revenue ~~was also~~for both product groups were impacted by ~~approximately $700 due~~COVID-19, including disruptions to ~~unfavorable exchange rates (principally~~domestic and international shipping and travel in addition to the ~~euro versus the United States dollar) during the nine months ended September 30, 2019.~~negative macroeconomic effects.

Cost of sales for the three months ended September 30, ~~2019~~2020 was ~~$8,006,~~$13,500, compared with cost of sales of ~~$10,016~~$8,006 for the three months ended September 30, ~~2018, a decrease~~2019, an increase of ~~$2,010,~~$5,494, or ~~20.1%~~68.6%. Gross profit for the three months ended September 30, ~~2019~~2020 was ~~$2,878,~~$3,899, compared with gross profit of ~~$6,573~~$2,878 for the three months ended September 30, ~~2018.~~2019, an increase of $1,021. Gross profit percentage was 22.4% for the three months ended September 30, 2020, compared with 26.4% for the three months ended September 30, ~~2019, compared with 39.6% for~~2019.

The increase in gross profit during the three months ended September 30, ~~2018. The decrease in our gross profit~~2020 was primarily due to ~~a decrease in our volume of~~higher revenue volumes and lower fixed overhead costs, partially offset by lower realized pricing on products sold ~~resulting~~(including sales of our X1 25Pro platform following its initial market introduction in the fourth quarter of 2019 and the sale of a discontinued sand system during the three months ended September 30, 2020) and unfavorable warranty experience. Lower fixed overhead costs during the three months ended September 30, 2020 were driven by a reduction in ~~leverage~~labor, travel, and other discretionary manufacturing expense based on actions taken and other realized reductions as a result of COVID-19. These decreases were offset by an increase in facility rent expense (versus depreciation) following completion of the sale-leaseback of our ~~fixed cost base.~~European headquarters and operating facility in Gersthofen, Germany during the three months ended March 31, 2020.

Cost of sales for the nine months ended September 30, ~~2019~~2020 was ~~$25,080,~~$31,263, compared with cost of sales ~~of $28,560~~ for the nine months ended September 30, ~~2018, a decrease~~2019 of ~~$3,480,~~$25,080, an increase of $6,183, or ~~12.2%~~24.7%. Gross profit for the nine months ended September 30, ~~2019~~2020 was ~~$10,662,~~$10,618, compared with gross profit of ~~$10,779~~$10,662 for the nine months ended September 30, ~~2018.~~2019, a decrease of $44. Gross profit percentage was 25.4% for the nine months ended September 30, 2020, compared with 29.8% for the nine months ended September 30, ~~2019, compared with 27.4% for~~2019.

The decrease in gross profit during the nine months ended September 30, ~~2018. The decrease in our gross profit~~2020 was primarily due to lower realized pricing on products (including sales of our X1 25Pro platform following its initial market introduction in the fourth quarter of 2019 and the sale of a ~~decrease in our volume of products sold resulting in~~discontinued sand system during the three months ended September 30, 2020) and unfavorable warranty experience, partially offset by higher revenue volumes and lower fixed overhead costs. Lower fixed overhead costs during the nine months ended September 30, 2020 were driven by a reduction in ~~leverage~~labor, travel, and other discretionary manufacturing expense based on actions taken and other realized reductions as a result of ~~our fixed cost base and net negative experience related to product warranties of $367.~~ COVID-19. These decreases were offset by ~~cost savings associated with~~an increase in facility rent expense (versus depreciation) following completion of the sale-leaseback of our ~~2018 global cost realignment program (primarily costs associated with our former Houston, Texas facility). In addition, we realized net benefits~~European headquarters and operating facility in cost of sales relating to a reduction in net charges associated with slow-moving, obsolete and lower of cost or net realizable value inventories of $873 (principally due to the $561 charge associated with our industrial microwave inventories recordedGersthofen, Germany during the three months ended ~~June 30, 2018) and the absence of $223 in exit costs associated with our Desenzano del Garda, Italy and Houston, Texas facility consolidations.~~March 31, 2020.

Research and development expenses for the three months ended September 30, ~~2019~~2020 were ~~$2,430,~~$2,013, compared with research and development expenses of ~~$2,444~~$2,430 for the three months ended September 30, ~~2018,~~2019, a decrease of ~~$14,~~$417, or ~~0.6%~~17.2%. The decrease in research and development expenses was primarily due to decreases associated with COVID-19, including reductions of employee-related costs of $84 and travel-related expenses of $53. In addition, material-related costs decreased by $159 and consulting and professional fees decreased by $72 based on reductions in ~~amounts expected~~machine and material development spending between the periods.

Research and development expenses for the nine months ended September 30, 2020, were $6,858 compared with research and development expenses of $7,399 for the nine months ended September 30, 2019, a decrease of $541, or 7.3%. The decrease in research and development expenses is primarily due to ~~be awarded under~~decreases associated with COVID-19, including reductions of employee-related costs of $17 and travel-related expenses of $62. In addition, material-related costs decreased by $389 and consulting and professional fees decreased by $198 based on reductions in machine and material development spending between the periods.

Selling, general and administrative expenses for the three months ended September 30, 2020 were $4,825, compared with selling, general and administrative expenses of $5,326 for the three months ended September 30, 2019, a decrease of $501, or 9.4%. The decrease in selling, general and administrative expenses was principally due to decreases associated with COVID-19, including employee-related costs of $252, travel-related expenses of $154 and trade show expenses of $86. In addition, consulting and professional fees decreased $198 and net provisions for bad debts decreased $400 due to the absence of a specific customer provision recorded in the 2019 period. Offsetting these decreases was an increase in sales commissions of $218 consistent with our increase in revenues for the comparable period and the absence of a net reversal of $310 to equity-based compensation expenses related to the 2019 Program ~~of $47~~ based on ~~a change~~changes in the estimated outcome of the defined financial goals for 2019 under the 2019 Program. ~~This decrease was offset by an increase in material costs and consulting and professional fees of $22, primarily associated with our development of the X1 25PRO~~^TM ~~direct 3D printing machine and S-MAX PRO~~^TM ~~indirect 3D printing machine.~~

Research and development expenses for the nine months ended September 30, 2019, were $7,399 compared with research and development expenses of $8,474 for the nine months ended September 30, 2018, a decrease of $1,075, or 12.7%. The decrease in research and development expenses was primarily due to decreases in employee-related costs (principally salaries and benefits) of $353 and consulting and professional fees of $841 (both reductions primarily as a result of our 2018 global cost realignment program) and a decrease in ~~amounts expected to be awarded under our 2019 Program of $87. These decreases were offset by an increase in material costs of $238, primarily associated with our development of the X1 25PRO~~^TM ~~direct 3D printing machine and S-MAX PRO~~^TM ~~indirect 3D printing machine.~~

Selling, general and administrative expenses for the three months ended September 30, 2019 were $5,326, compared with selling, general and administrative expenses of $5,200 for the three months ended September 30, 2018, an increase of $126, or 2.4%. The increase in selling, general and administrative expenses was principally due to a net provision for bad debts of $414 during the three months ended September 30, 2019 as compared to net recoveries of $2 during the three months ended September 30, 2018. The net provision for bad debts recorded during the three months ended September 30, 2019 included a specific customer provision of $416 associated with a leasing arrangement based on deterioration in credit quality of the lessee. This increase was offset by a decrease of $239 associated with a reduction in equity-based compensation and other amounts expected to be awarded under our 2019 Program ~~based on a change in the estimated outcome of the defined financial goals for 2019 under the 2019 Program~~.

Selling, general and administrative expenses for the nine months ended September 30, ~~2019~~2020 were ~~$16,916,~~$15,476, compared with selling, general and administrative expenses of ~~$17,755~~$16,916 for the nine months ended September 30, ~~2018,~~2019, a decrease of ~~$839,~~$1,440, or ~~4.7%~~8.5%. The decrease in selling, general and administrative expenses was principally due to ~~a decrease~~reductions in ~~employee-related costs (salaries~~trade show expenses of $766 due to COVID-19 and ~~benefits)~~the absence of ~~$1,524 (including $708 in employee termination~~ costs associated with the change in our Chief Executive Officer and our 2018 global cost realignment program, recorded during the three months ended June 2018) and $240 of amounts expected to be awarded under our 2019 Program. These decreases were offset by increases associated with equity-based compensation of $675 (principally associated with changes in executive management), net provision for bad debts of $304 (further discussed above) and selling costs (sales promotion, trade show and external commissions) of $222, primarily associated with our investment in the GIFA international foundry show in Dusseldorf, Germany (a once every four-year event), lower travel expenses of $418 as a result of COVID-19 global travel restrictions, lower consulting and professional fees of $580, lower equity-based and other incentive compensation of $295 and a reduction in provision for bad debts of $268 (further described above). Offsetting these decreases were increases in employee costs of $603 primarily due to investments made to our commercial operations, offset by actions taken (terminations and furloughs) in response to COVID-19 and an increase in sales commissions of $322 consistent with our increase in revenues for the comparable period.

Interest expense for the three months ended September 30, ~~2019~~2020 was ~~$85,~~$54, compared with interest expense of ~~$73~~$85 for the three months ended September 30, ~~2018, an increase~~2019, a decrease of ~~$12,~~$31, or ~~16.4%~~36.5%. ~~The increase~~ in interest expense was principally due to interest incurred in connection with our related party revolving credit facility ($65 during the nine months ended September 30, 2019, as compared to $51 during the nine months ended September 30, 2018) based on borrowings of $2,000 under the related party revolving credit facility during the three months ended September 30, 2019. There were no such borrowings during the three months ended September 30, 2018.

Interest expense for the nine months ended September 30, ~~2019~~2020 was ~~$227,~~$171, compared with interest expense of ~~$179~~$227 for the nine months ended September 30, ~~2018, an increase~~2019, a decrease of ~~$48,~~$56, or ~~26.8%~~24.7%. The ~~increase~~ decrease in interest expense for both periods was principally due to lower interest ~~incurred in connection~~associated with our related party revolving credit facility ~~entered into on March 12, 2018 ($165 during~~(including lower debt issuance cost amortization) following amendment of the ~~nine months ended September 30, 2019, including interest expense associated with~~Credit Agreement (which reduced the ~~aforementioned borrowings during~~borrowing capacity of the ~~three months ended September 30, 2019 further discussed above, as compared to $110 during~~facility) and the ~~nine months ended September 30, 2018)~~.extension of the term of the credit facility in February 2020.

Other ~~income~~expense (income) – net for the three months ended September 30, ~~2019~~2020 was ~~$134,~~$314, compared with other ~~income~~expense (income) – net of ~~$838~~($134) for the three months ended September 30, ~~2018. Other income – net for the three months ended September 30, 2019 includes $136 in net~~2019. The change of $448 was principally due to unfavorable foreign exchange ~~gains~~rate changes and the related impact on ~~commercial transactions and~~ certain intercompany transactions between subsidiaries ~~either settled~~for which settlement has occurred or planned for settlement in the foreseeable future (principally due to the appreciation of the United States dollar against the euro). Other income – net for the three months ended September 30, 2018 includes $39 in net foreign exchange gains on commercial transactions and certain intercompany transactions between subsidiaries either settled or planned for settlement in the foreseeable future (principally due to the appreciation of the United States dollar against the euro) and ~~$819 of a realized gain associated with an insurance recovery for a 3D printing machine damaged by a third party freight company while in transit.~~is planned.

Other ~~income~~expense (income) – net for the nine months ended September 30, ~~2019~~2020 was ~~$65,~~$319 compared with other ~~income~~expense (income) – net of ~~$936~~($65) for the nine months ended September 30, ~~2018. Other income – net for the nine months ended September 30, 2019 includes $85 in net~~2019. The change of $384 was principally due to unfavorable foreign exchange ~~gains~~rate changes and the related impact on ~~commercial transactions and~~ certain intercompany transactions between subsidiaries ~~either settled~~for which settlement has occurred or planned for settlement in the foreseeable future (principally due to the appreciation of the United States dollar against the euro). Other income – net for the nine months ended September 30, 2018 includes $138 in net foreign exchange gains on commercial transactions and certain intercompany transactions between subsidiaries either settled or planned for settlement in the foreseeable future (principally due to the appreciation of the United States dollar against the euro) and ~~$819 of a realized gain associated with an insurance recovery for a 3D printing machine damaged by a third party freight company while in transit~~.is planned.

The (benefit) provision ~~(benefit)~~ for income taxes for the three months ended September 30, 2020 and 2019 was ($34) and ~~2018 was~~ $15, ~~and $17,~~ respectively. The provision (benefit) for income taxes for the nine months ended September 30, 2020 and 2019 was $200 and ~~2018 was~~ ($686) ~~and $52,~~, respectively. We have completed a discrete period computation of our (benefit) provision ~~(benefit)~~ for income taxes for each of the periods presented. The discrete period computation was required as a result of jurisdictions with losses before income taxes for which no tax benefit can be recognized and an inability to generate reliable estimates for results in certain jurisdictions as a result of inconsistencies in generating net operating profits (losses) in those jurisdictions.

For the three and ~~0.4% (provision on a loss), respectively.~~ ~~For~~nine months ended September 30, 2020 and the three months ended September 30, 2019, ~~and 2018,~~ the effective tax rate ~~differs~~differed from the United States federal statutory rate of 21.0% primarily due to net changes in valuation allowances for the ~~periods.~~period. For the nine months ended September 30, 2019, the effective tax rate ~~differs~~differed from the United States federal statutory rate of 21.0% primarily due to the reversal of previously recorded liabilities for uncertain tax positions (further ~~described~~discussed below) and net changes in valuation allowances for the period. For the nine months ended September 30, 2018, the effective tax rate differs from the United States federal statutory rate of 21.0% primarily due to net changes in valuation allowances for the periods.

We have provided a valuation allowance for certain of our net deferred tax assets as a result of our inability to generate consistent net operating profits in certain jurisdictions in which we operate. As such, ~~any benefit~~certain benefits from deferred taxes in ~~any of~~ the periods presented ~~in our condensed consolidated financial statements has~~have been fully offset by changes in the valuation allowance for the related net deferred tax assets. We continue to assess our future taxable income by jurisdiction based on our recent historical operating results, the expected timing of reversal of temporary differences, various tax planning strategies that we may be able to enact in future periods, the impact of potential operating changes on our business and our forecast results from operations in future periods based on available information at the end of each reporting period. To the extent that we are able to reach the conclusion that net deferred tax assets are realizable based on any combination of the above factors in a single, or multiple, taxing jurisdictions, a reversal of the related portion of our existing valuation allowances may occur.

At December 31, 2018, our ExOne GmbH (2010-2013) and ExOne Property GmbH (2013) subsidiaries were under examination by local taxing authorities in Germany. In January 2019, this examination was concluded ~~by the local taxing authorities in Germany~~ without significant adjustment to previously established tax positions. As a result, during the three months ended March 31, 2019, we recorded a reversal of certain of our previously recorded liabilities for uncertain tax positions of $1,075, of which $257 was offset against net operating loss carryforwards.

In August 2018, we committed to a plan to consolidate certain of our 3D printing operations from our Houston, Texas facility into our Troy, Michigan facility. These actions were taken as part of our efforts to optimize our business model and maximize our facility utilization. During the three months ended September 30, 2018, we recorded a charge of $28 split between cost of sales ($15) and selling, general and administrative expense ($13) associated with involuntary employee terminations related to this plan. During the three months ended September 30, 2018, we recorded an additional charge of $1 (to cost of sales) associated with asset impairments related to this plan. There are no additional charges expected to be incurred associated with this plan in future periods. We settled all amounts associated with involuntary employee terminations during the three months ended September 30, 2018.

The consolidation of our 3D printing operations from our Houston, Texas facility into our Troy, Michigan facility is expected to result in a reduction in our annual revenues of approximately $1,400. Revenues associated with our Houston, Texas facility were $153 and $944 for the three months and nine months ended September 30, 2018. We expect annualized cost savings related to this consolidation of approximately $1,800, with approximately $1,600 in the form of cash cost savings (principally employee-related and other operating costs) and approximately $200 in the form of reduced depreciation expense. Cost savings associated with the exit of this facility are expected to benefit cost of sales by approximately $1,600 and selling, general and administrative expenses by approximately $200. We expect to invest these cost savings into technological or process advancements that support either long-term cost benefits or revenue growth.

In September 2019, we reached agreement with a third party for the sale of certain property and equipment ($822 included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheet for each of the periods presented) associated with the former Houston, Texas facility. We expect to receive net proceeds from the sale of the property and equipment of approximately $1,000 during the three months ended December 31, 2019 and to record a corresponding gain on the sale of approximately $200 from the disposal.

In December 2017, we committed to a plan to consolidate certain of our 3D printing operations from our Desenzano del Garda, Italy facility into our Gersthofen, Germany facility. These actions were taken as part of our efforts to optimize our business model and maximize our facility utilization. As a result of these actions, during the three months ended December 31, 2017, we recorded a charge of $72 split between cost of sales ($19) and selling, general and administrative expense ($53) associated with involuntary employee terminations related to this plan. During the three months ended March 31, 2018, we recorded an additional charge of $245 associated with other exit costs ($17) and asset impairments ($228) related to this plan. During the three months ended June 30, 2018, we recorded an additional charge of $13 associated with asset impairments related to this plan. In addition, during the three months ended June 30, 2018, we recorded a gain from disposal of certain property and equipment of $51 (recorded to cost of sales in the accompanying condensed statement of consolidated operations and comprehensive loss). Charges associated with other exit costs recorded during the six months ended June 30, 2018 were recorded to cost of sales in the accompanying condensed statement of consolidated operations and comprehensive loss. Charges associated with asset impairments recorded during the three and six months ended June 30, 2018 were recorded to cost of sales as a component of depreciation expense in the accompanying condensed statement of consolidated operations and comprehensive loss. Other exit costs relate to the remaining facility rent due under a non-cancellable operating lease following the cessation of operations at the facility in January 2018. Asset impairment charges relate to certain leasehold improvements associated with the exited facility and other equipment which we abandoned. There are no additional charges expected to be incurred associated with this plan in future periods. We settled all amounts associated with involuntary employee terminations and other exit costs (remaining facility rent payments) during 2018.

The consolidation of our 3D printing operations from our Desenzano del Garda, Italy facility into our Gersthofen, Germany facility is not expected to have a significant impact on our revenues in future periods. We expect annualized cost savings related to this consolidation of approximately $875, with approximately $600 in the form of cash cost savings (principally employee-related and other operating costs) and approximately $275 in the form of reduced depreciation expense. Cost savings associated with the exit of this facility are expected to benefit cost of sales by approximately $625 and selling, general and administrative expenses by approximately $250. We expect to invest these cost savings into technological or process advancements that support either long-term cost benefits or revenue growth.

During the three months ended September 30, ~~2019,~~2020, as a result of continued operating losses and cash flow deficiencies, we identified a triggering event requiring a test for the recoverability of long-lived assets held and used at the asset group level. Assessing the recoverability of long-lived assets held and used requires significant judgments and estimates by management.

For purposes of testing long-lived assets for recoverability, we operate as three separate asset groups: United States, Europe and Japan. In assessing the recoverability of long-lived assets held and used, we determined the carrying amount of long-lived assets held and used to be in excess of the estimated future undiscounted net cash flows of the related assets. We proceeded to determine the fair value of our long-lived assets held and used, principally through use of the market approach. Our use of the market approach included consideration of market transactions for comparable assets. Management concluded that the fair value of long-lived assets held and used exceeded their carrying value, and as such, no impairment loss was recorded.

A significant decrease in the market price of a long-lived asset, adverse change in the use or condition of a long-lived asset, adverse change in the business climate or legal or regulatory factors impacting a long-lived asset and continued operating losses and cash flow deficiencies associated with a long-lived asset, among other indicators, could cause a future assessment to be performed which may result in an impairment of long-lived assets held and used, ~~resulting~~which could result in a material adverse effect on our financial position and results of operations.

Our results of operations and financial condition are presented based on historical cost. While it is difficult to accurately measure the impact of inflation due to the imprecise nature of the estimates required, we believe the effects of inflation, if any, on our results of operations and financial condition are not significant.

We have incurred a net loss in each of our annual periods since our inception. ~~In addition, we~~We incurred a net loss of ~~$4,844~~$3,273 and ~~$13,129~~$10,944 for the three months and nine months ended September 30, ~~2019,~~2020, respectively. At September 30, ~~2019,~~2020, we had ~~$4,756~~$39,428 in unrestricted cash and cash equivalents. In addition to our unrestricted cash and cash equivalents, we also have access to additional capital through our $10,000 related party revolving credit facility (further discussed below).

WeSince our inception we have received cumulative unrestricted net proceeds from the sale of our common stock (through our initial public offering and subsequent ~~secondary~~public offerings, including at-the-market offerings) of ~~$168,361~~$195,847 to fund our operations. We maintain additional access to capital through our active shelf registration statement which allows for the sale of various equity or debt instruments up to an aggregate amount of $125,000 (including the at-the-market offerings further described below).

In ~~March 2018,~~June 2020, we entered into an equity distribution agreement (the “Oppenheimer Equity Distribution Agreement”) with Oppenheimer & Company, Inc. (“Oppenheimer”) pursuant to which Oppenheimer agreed to act as sales agent in the sale of up to $25,000 in the aggregate of our common stock in “at-the-market offerings” as defined in Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”). Sales of common stock under the Oppenheimer Equity Distribution Agreement ended in September 2020 when the offering limit ($25,000) was reached. Following completion of this offering, in September 2020, we entered into a ~~three-year, $15,000 revolving credit facility~~separate equity distribution agreement (the “Canaccord Equity Distribution Agreement”) with Canaccord Genuity LLC (“Canaccord”), pursuant to which Canaccord agreed to act as sales agent in the sale of up to $25,000 in the aggregate of our common stock in “at-the-market offerings” as defined in Rule 415 under the Securities Act. The terms of both the Oppenheimer Equity Distribution Agreement and the Canaccord Equity Distribution Agreement require a ~~related party (further described below)~~3.0% commission on the sale of our common stock as well as reimbursement of certain expenses incurred by the sales agent.

During the three months ended September 30, 2020, we sold 2,060,878 shares of common stock in the above-described at-the market offerings (1,822,274 shares under the Oppenheimer Equity Distribution Agreement and 238,604 shares under the Canaccord Equity Distribution Agreement) at an average selling price of $12.26 per share, resulting in net proceeds to ~~provide additional funding for working capital~~us (after deducting commissions) of $24,512. During the nine months ended September 30, 2020, we sold 2,443,479 shares of common stock in the above-described at-the-market offerings (2,204,875 shares under the Oppenheimer Equity Distribution Agreement and ~~general corporate purposes.~~238,604 shares under the Canaccord Equity Distribution Agreement) at an average selling price of $11.73 per share, resulting in net proceeds to us (after deducting commissions) of $27,800. During the three months and nine months ended September 30, 2020, we incurred expenses (other than commissions) associated with at-the-market offerings of $124 and $314, respectively. At September 30, ~~2019, $13,000~~2020, $213 of the expenses (other than commissions) associated with at-the-market offerings remained ~~available~~unpaid, of which $147 was included in accounts payable and $66 was included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheet.

We have previously exhibited our ability to modify our operating structure and support our liquidity position through various restructuring and other actions, including our 2018 global cost realignment ~~program focused on~~program. As further discussed above, in response to adverse market conditions associated with COVID-19, beginning in March 2020 and through April 2020, we commenced various cost savings actions including a ~~reduction~~mix of employee terminations, furloughs and pay rate reductions, as well as reductions in ~~our production overhead costs~~consulting and ~~operating~~other expenses, all in an effort to ~~drive efficiency in our operations~~conserve cash and ~~preserve capital~~.maintain adequate liquidity.

We believe that our existing capital resources will be sufficient to support our operating plan. If we anticipate that our actual results will differ from our operating plan, we believe we have sufficient capabilities to enact cost savings measures to preserve capital (in addition to ~~the costs savings measures associated with our 2018 global cost realignment program~~those further ~~described~~discussed above). We may also seek to raise additional capital to support our growth through the incurrence of additional debt, the sale of equity or other alternatives (including asset sales) or a combination ~~thereof~~.thereof.

On March 12, 2018, we and our ExOne Americas LLC and ExOne GmbH subsidiaries, as guarantors (collectively, the “Loan Parties”), entered into a Credit Agreement and related ancillary agreements with LBM Holdings, LLC (“LBM”), a company controlled by S. Kent Rockwell, who was ~~our~~the Executive Chairman of the Company (a related party) at such date and is currently Chairman of ~~our Board of Directors (the “Board”),~~the Company, relating to a $15,000 revolving credit facility (the ~~“LBM Credit~~“Credit Agreement”) to provide additional funding to us for working capital and general corporate purposes. The ~~LBM~~ Credit Agreement ~~provides~~provided a credit facility for a term of three years (through March 12, 2021) ~~and bears~~, bearing interest at a rate of one-month LIBOR plus an applicable margin of 500 basis points ~~(7.0%~~(6.8% at December 31, 2019 and ~~7.5%~~5.1% at September 30, ~~2019 and December 31, 2018, respectively)~~2020). The ~~LBM~~ Credit Agreement ~~requires~~required a commitment fee of 75 basis points, or 0.75%, on the unused portion of the facility, payable monthly in arrears. In addition, an up-front commitment fee of 125 basis points, or 1.25% ($188), was required at closing. Borrowings under the ~~LBM~~ Credit Agreement were collateralized by the accounts receivable, inventories and machinery and equipment of the Loan Parties.

Borrowings under the credit facility are required to be made in minimum increments of $1,000. We may terminate or reduce the credit commitment at any time during the term of the ~~LBM~~amended Credit Agreement without penalty. We may also make prepayments against outstanding borrowings under the ~~LBM~~amended Credit Agreement at any time without penalty. ~~Borrowings under the LBM Credit Agreement have been collateralized by the accounts receivable, inventories and machinery and equipment of the Loan Parties.~~ At ~~inception~~December 31, 2019 and September 30, ~~2019~~2020, the total estimated value of collateral was in significant excess of the maximum borrowing capacity under the ~~LBM Credit Agreement.~~credit facility.

We do not consider the Credit Agreement, as amended, indicative of a fair market value lending, as LBM was determined to be a related party based on common control by S. Kent Rockwell. ~~Accordingly, we do not consider~~S. Kent Rockwell is the ~~LBM Credit Agreement indicative~~indirect sole owner of ~~a fair market value lending.~~ LBM. Prior to execution, each of the ~~LBM~~ Credit Agreement and the Amendment was reviewed and approved by the Audit Committee of the Company’s Board of Directors (the “Board”), in accordance with The ExOne Company Policy and Procedures with Respect to Related Person Transactions, and subsequently by a sub-committee of independent members of the ~~Board~~.Board. At the time of execution of the ~~LBM~~ Credit Agreement, the ~~$15,000 in~~ available loan proceeds ~~was~~were deposited into an escrow account with an unrelated, third party financial institution acting as escrow agent pursuant to a separate ~~Escrow Agreement~~escrow agreement by and among the parties. Loan proceeds held in escrow are available to us upon our submission to the escrow agent of a loan request. Such proceeds will not be available to LBM until payment in-full of the obligations under the ~~LBM~~amended Credit Agreement and termination of the ~~LBM~~amended Credit Agreement. Payments of principal and other obligations will be made to the escrow agent, while interest payments will be made directly to LBM. Provided there exists no potential default or event of default, the ~~LBM~~amended Credit Agreement and ~~Escrow Agreement~~the escrow agreement prohibit any acceleration of repayment of any amount outstanding under the ~~LBM~~amended Credit Agreement and prohibit termination of the ~~LBM~~amended Credit Agreement or withdrawal from escrow of any unused portion of the available loan ~~proceeds~~proceeds.

~~During~~during the three or nine months ended September 30, ~~2019, we borrowed $2,000 under the LBM Credit Agreement which remained outstanding at September 30,~~2020 or 2019. There were no borrowings outstanding under the credit facility at either September 30, 2020 or December 31, 2019. At September 30, 2020 and December 31, 2019, $8 and $28, respectively, associated with the commitment fee on the unused portion of the revolving credit facility were included in accounts payable on the accompanying condensed consolidated balance sheet. Amounts payable to LBM at September 30, 2020 and December 31, 2019 were settled by us in October 2020 and January 2020, respectively.

On April 18, 2020, we entered into an unsecured promissory note (the “Note”) with an unrelated United States bank (the “Lender”) reflecting a loan in the principal amount of $2,194 (the “Loan”). The Loan was granted pursuant to the Paycheck Protection Program (the “PPP”) administered by the United States Small Business Administration (the “SBA”) as part of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”).

Pursuant to the terms of the Note, the Loan bears interest at a rate of 1.00% per annum and matures on April 18, 2022 (the “Maturity Date”). Principal and interest payments on the Loan are deferred until November 18, 2020, at which time equal installments of principal and interest will be due and payable monthly through the Maturity Date. The Note may be prepaid by us at any time prior to maturity without penalty. If we default on the Note, the Lender may, at its option, accelerate the maturity of our obligations under the ~~LBM Credit Agreement during any period prior~~Note.

Pursuant to the ~~three months ended September 30, 2019 from~~terms of the PPP, the Loan, or a portion thereof, may be forgiven if Loan proceeds are used for qualifying expenses as described in the CARES Act, such as payroll costs, costs used to continue group health care benefits, mortgage interest payments, rent and utilities. We intend to use all or a significant majority of the Loan proceeds for qualifying expenses. The terms of the Loan, including eligibility and forgiveness, may be subject to further requirements in regulations and guidance adopted by the SBA, including the Paycheck Protection Flexibility Act enacted in June 2020. We have elected to account for the Loan in accordance with the terms of the Note while its ~~inception (March 12, 2018).~~forgiveness eligibility remains subject to review.

The following table summarizes the significant components of cash flows for ~~each of~~ the ~~nine month~~ periods ~~ended September 30, 2019 and 2018,~~indicated, and our cash, cash equivalents, and restricted cash balances ~~at September 30, 2019 and December 31, 2018:~~as of the periods indicated:

Net cash used for operating activities for the nine months ended September 30, ~~2019~~2020 was ~~$4,196,~~$12,615, compared with net cash used for operating activities of ~~$8,889~~$4,323 for the nine months ended September 30, ~~2018.~~2019. The increase in net ~~decrease in~~cash outflows of ~~$4,693~~ $8,292 was due principally to ~~a decrease~~an unfavorable change in our net ~~loss (changes further described above) net of noncash items and a net decrease in~~ working capital attributable to a decrease in net cash inflows from customers (principally due to the timing of cash collections on 3D printing machine sales) and an increase in net cash outflows related to ~~inventory production of our 3D printing machines and~~ the timing of payments to our suppliers and vendors for our production and operating expenses. The unfavorable change in net working capital was partially offset by a decrease in net loss (net of noncash items).

We expect to maintain a balanced net working capital position for the remainder of 2020, with a targeted reduction in inventories consistent with our revised production plans which are expected to offset lower commercial activity (customer prepayments) stemming from the impact of COVID-19.

Net cash ~~used for~~provided by investing activities for the nine months ended September 30, ~~2019~~2020 was ~~$610,~~$15,457, compared with net cash used for investing activities of ~~$1,115~~$610 for the nine months ended September 30, ~~2018.~~2019.

For the nine months ended September 30, 2020, net cash provided by investing activities included $16,229 in proceeds from the sale of property and equipment, including the sale-leaseback of our European headquarters and operating facility in Gersthofen, Germany.

Activity for both periods included cash outflows for capital expenditures (consistent with our operating plans)~~, offset by proceeds from the sale of property and equipment.~~.

We expect our remaining ~~2019~~2020 capital expenditures to be limited to spending associated with sustaining our existing operations and strategic asset acquisition and deployment (additional estimated spending of approximately less than ~~$500)~~$1,000, which reflects a reduced spending target as part of our capital conservation plans in response to COVID-19 and its effect on our operations).

In September 2019, we reached agreement with a third party for the sale of certain property and equipment associated with the former Houston, Texas facility. We expect to receive net proceeds from the sale of the property and equipment of approximately $1,000 during the three months ended December 31, 2019.

Net cash provided by financing activities for the nine months ended September 30, ~~2019~~2020 was ~~$2,100,~~$30,556, compared with net cash provided by financing activities of ~~$137~~$2,100 for the nine months ended September 30, ~~2018.~~2019.

For the nine months ended September 30, 2020, net cash provided by financing activities included cash inflows of $27,699 in proceeds from at-the-market offerings of common stock, net of issuance costs (further discussed above) and $2,194 in proceeds from borrowings on long-term debt associated with our PPP Loan (further discussed above).

For the nine months ended September 30, 2019, net cash provided by financing activities included cash inflows of $2,000 associated with borrowings under our related party revolving credit ~~facility and $289~~facility.

Activity for both periods included cash inflows associated with proceeds from the exercise of stock options by ~~employees.~~employees and cash outflows associated with principal payments on outstanding debt.

The following summarizes the material changes in our financial condition from December 31, 2019 to September 30, 2020:

Restricted cash decreased by $470 following an amendment to our credit facility agreement with a German bank completed in February 2020 which relieved us of a cash collateral requirement for financial guarantees and letters of credit issued by us for commercial transactions requiring security for amounts up to approximately $1,200.

Accounts receivable decreased by $982 based on the timing of cash payments by customers (principally the timing of cash collections on 3D printing machine sales).

Inventories increased by $2,417 consistent with our growth in backlog. Inventories have also been impacted (primarily the increase in finished goods inventories) as a result of disruptions in delivery and installation of our 3D printing machines as a result of COVID-19.

Prepaid expenses and other current assets increased by $1,666, mostly due to increases in prepayments to suppliers for 3D printing machine components and subassemblies, and prepaid insurance (based on the timing of payments to providers as compared to the period of coverage).

Property and equipment – net decreased by $17,971, mostly due to the impact of the sale-leaseback of our European headquarters and operating facility in Gersthofen, Germany (which resulted in a derecognition of $17,282 of related property and equipment) and depreciation expense of $2,925 incurred during the period. These ~~amounts~~decreases were offset by ~~cash outflows of $111 in principal payments on long-term debt and $68~~increases associated with ~~taxes related~~capital expenditure additions of $885 and net transfers from inventory to property and equipment of 3D printing machines of $1,337.

Operating lease right-of-use assets increased by $3,846, principally as a result of the sale-leaseback transaction further discussed above.

Accounts payable decreased by $1,373 due to the ~~net settlement~~timing of ~~equity-based awards.~~payments to our suppliers and vendors for our production and operating expenses.

~~For~~Accrued expenses and other current liabilities decreased by $1,779, mostly due to the ~~nine months ended September 30, 2018, net cash provided by financing activities included cash inflows~~sale-leaseback transaction further discussed above based on the release of ~~$521 associated with proceeds~~$2,243 of a deposit liability received from the ~~exercise~~buyer in December 2019.

Operating lease liabilities increased $3,846, principally as a result of ~~stock options~~the sale-leaseback transaction further discussed above.

Contract liabilities increased $756 based on the timing of cash payments by ~~employees. This amount was offset by~~customers (principally the timing of cash ~~outflows~~collections on 3D printing machine sales consistent with growth in our backlog). Contract liabilities have also been impacted as a result of ~~$106~~disruptions in ~~principal payments on long-term debt~~delivery and ~~$265 in debt issuance costs associated with~~installation of our ~~related party revolving credit facility.~~3D printing machines as a result of COVID-19.

In the normal course of our operations, our ExOne GmbH subsidiary issues financial guarantees and letters of credit to third parties in connection with certain commercial transactions requiring security. At September 30, 2020, total outstanding financial guarantees and letters of credit issued by ExOne GmbH were$583 (€497) with expiration dates ranging from October 2020 through February 2023. At December 31, 2019, total outstanding financial guarantees and letters of credit issued by usExOne GmbH were ~~$944~~$560 (€~~865) with expiration dates ranging from October 2019 through February 2023. At December 31, 2018, total outstanding financial guarantees and letters of credit issued by us were $1,136 (€992)~~499). For further discussion related to financial guarantees and letters of credit issued by ~~us,~~ExOne GmbH, refer to Note 1211 to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form ~~10-Q.~~10-Q.

Refer to Note 1 to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Refer to Note 1 to the consolidated financial statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, ~~2018.~~2019.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934, as amended, ~~(the “Exchange Act”)~~ and are not required to provide the information under this item.

Our management, including our Chief Executive Officer and our Chief Financial Officer, performed an evaluation of the effectiveness of our disclosure controls and ~~procedures~~procedures. Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that, as of ~~September 30, 2019. These~~the end of the period covered by this Quarterly Report on Form 10-Q, as a result of certain material weaknesses in our internal control over financial reporting (further discussed below), our disclosure controls and procedures ~~are designed to provide reasonable assurance that~~were ineffective.

In connection with the ~~information required to be disclosed in~~preparation of our condensed consolidated financial statements as of and for the ~~reports that we file or submit under the Exchange Act are recorded, processed, summarized~~three and ~~reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to~~nine months ended September 30, 2020, our management, including our Chief Executive Officer and Chief Financial Officer, ~~in a manner to allow timely decisions regarding required disclosures. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer~~ concluded that there are material weaknesses in the design and operating effectiveness of our ~~disclosure controls~~internal control over financial reporting as defined in Securities and ~~procedures~~Exchange Commission Regulation S-X. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis.

A description of the identified material weaknesses in internal control over financial reporting is as follows:

Notwithstanding the identified material weaknesses described above, management believes that the condensed consolidated financial statements and related notes thereto included in this Quarterly Report on Form 10-Q fairly present, in all material respects, our financial condition, results of ~~September 30, 2019 were effective.~~operations and cash flows for the periods presented.

~~There~~During the three months ended September 30, 2020, as a result of the identification in earlier periods of the material weaknesses described above, management continued the execution of its remediation plans in an effort to ensure that our disclosure controls and procedures are effective. Our remediation plans include a comprehensive evaluation of the people, processes and systems responsible for each of the underlying control activities. We expect to complete this evaluation in 2020 and put measures in place in an effort to remediate the identified material weaknesses. Additionally, during the three months ended September 30, 2020, we increased the size and capabilities of our finance and accounting functions by establishing a new Corporate Controller role with responsibility for financial reporting, corporate accounting and oversight of our consolidated financial close process. In September 2020, we hired a financial professional with significant public accounting and financial reporting experience to fill this newly established Corporate Controller role. We expect that the hiring of this Corporate Controller will facilitate the effective execution of our remediation plans and improve our internal controls over financial reporting. However, we cannot be certain that the measures we may take will ensure that we establish and maintain adequate controls over our financial processes and reporting in the future or that material weaknesses identified will be remediated.

Other than the items described above, there were no changes in our internal control over financial reporting during the three months ended September 30, ~~2019,~~2020, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

We are subject to various litigation, claims, and proceedings which have been or may be instituted or asserted from time to time in the ordinary course of business. Management does not believe that the outcome of any pending or threatened matters will have a material adverse effect, individually or in the aggregate, on our financial position, results of operations or cash flows.

We face risks related to the COVID-19 global pandemic which could significantly disrupt our commercial activities and operations.

The outbreak of a novel strain of coronavirusand subsequent global pandemic (“COVID-19”) has resulted in global government-enforced travel and business closures throughout the world. Our sales, installation and service of 3D printing machines have been disrupted, and the future spread of the disease may cause our commercial efforts to be disrupted again. We may incur expenses or delays resulting from such events outside of our control, which could have a material adverse effect on our financial position, results of operations or cash flows.

We manufacture our 3D printing machines at our facilities in Gersthofen, Germany and North Huntingdon, Pennsylvania. In addition, we have a network of EACs in the United States, Germany and Japan. If the operations of one or more of these facilities are materially disrupted (including as a result of COVID-19), we may be unable to fulfill certain customer orders for the period of the disruption, we may not be able to recognize revenue on certain orders and we might need to modify our standard sales terms to secure commitments of customers during the period of the disruption and perhaps longer. Depending on the cause of the disruption, we could incur significant costs to remedy the disruption. Such a disruption could have an adverse effect on our financial position, results of operations or cash flows.

In addition to the commercial risks, the long-term effects of COVID-19 may also include risks associated with employee health and safety and supply chain disruption, each of which may have a material adverse effect on our financial position, results of operations or cash flows.

There have been no material changes from the risk factors as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, ~~2018.~~2019, except as described above.

Under the 2013 Equity Incentive Plan (the “Plan”), the Compensation Committee of the Board may require or permit participants under the Plan to elect net settlement upon the vesting of restricted stock awards under the Plan in order to satisfy the related tax withholding obligations. Under net settlement, we withhold from the shares that would otherwise be delivered to the participant such number of shares of our common stock having an aggregate fair market value equal to the tax withholding obligation. When we withhold these shares, we are required to remit to the appropriate taxing authorities the aggregate fair market value of the shares withheld, which could be deemed a purchase of the common shares by us on the date of withholding.

A summary of our deemed repurchases of shares of our common stock to satisfy tax withholding obligations related to the vesting of restricted stock, as described above, during the three months ended September 30, 2020 is as follows:

The Exhibits listed on the accompanying Index to Exhibits are filed as part of this Quarterly Report on Form 10-Q.

The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


Title of ~~each~~ class	Trading symbol	Name of ~~each~~ exchange on which registered
Common stock	XONE	~~NASDAQ~~The Nasdaq Stock Market

	September 30,			December 31,			Economic Life
	2020			2019			(in years)
Land	$	3,436		$	6,980		N/A
Buildings and related improvements		10,141			25,675		5 - 40
Machinery and equipment		20,658			19,531		3 - 20
Other		6,193			7,086		3 - 20
		40,428			59,272
Less: Accumulated depreciation		(20,092	)		(21,478	)
		20,336			37,794
Construction-in-progress		588			1,101
Property and equipment ̶ net	$	20,924		$	38,895

	September 30,			December 31,			September 30,			December 31,
	2019			2018			2020			2019
Future minimum lease payments receivable	$	1,650		$	1,969		$	1,413		$	1,595
Less: Allowance for doubtful accounts		(412	)		—			(443	)		(424	)
Net future minimum lease payments receivable		1,238			1,969			970			1,171
Less: Unearned interest income		(236	)		(316	)		(177	)		(220	)
Net investment in sales-type leases	$	1,002		$	1,653		$	793		$	951

	Operating		Sales-type
2019	$	278	$	112
2020		259		377
2021		48		377
2022		—		377
2023		—		407
Thereafter		—		—
Total minimum lease payments	$	585	$	1,650
Less: Allowance for doubtful accounts				(412	)
Less: Present value discount				(236	)
Future minimum lease payments receivable			$	1,002

	Nine Months Ended		Nine Months Ended
	September 30,		September 30,
	2019	2018	2020	2019
Weighted average fair value per stock option	$2.77 - $3.68	$3.01 - $3.77	$5.11 - $6.20	$2.77 - $3.68
Volatility	54.0% - 60.1%	62.6% - 63.7%	58.0% - 58.6%	54.0% - 60.1%
Average risk-free interest rate	1.5% - 2.5%	2.5% - 2.7%	0.2%	1.5% - 2.5%
Dividend yield	0.0%	0.0%	0.0%	0.0%
Expected term (years)	2.5 - 3.5	3.1 - 3.3	3.5	2.5 - 3.5

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☒
		Emerging growth company	☐

Operating lease right-of-use assets included in other noncurrent assets	$	261
Operating lease liabilities included in accrued expenses and other current liabilities	$	108
Operating lease liabilities included in other noncurrent liabilities	$	153
Operating lease right-of-use assets				$	4,278
Current portion of operating lease liabilities				$	1,843
Operating lease liabilities ̶ net of current portion				$	2,435
Right-of-use assets obtained in exchange for new operating lease liabilities	$	10		$	4,876
Cash paid for amounts included in the measurement of operating lease liabilities	$	147		$	1,472
Weighted average remaining lease term (in years)		2.9			2.3
Weighted average discount rate		6.6	%		5.1	%


(a)	Interest income relating to sales-type leases is recorded as a component of revenue in the accompanying condensed statement of consolidated operations and comprehensive loss for each of the periods presented.

	September 30, 2020									December 31, 2019
	Principal			Unamortized Debt Issuance Costs			Net			Principal			Unamortized Debt Issuance Costs			Net
Paycheck Protection Program loan	$	2,194		$	—		$	2,194		$	—		$	—		$	—
Building note payable		1,266			(16	)		1,250			1,384			(20	)		1,364
Less: Amount due within one year		(1,500	)		4			(1,496	)		(157	)		4			(153	)
	$	1,960		$	(12	)	$	1,948		$	1,227		$	(16	)	$	1,211

Level 1		Observable inputs such as quoted prices in active markets for identical investments that the Company has the ability to access.

Level 2		Inputs include:

		Quoted prices for similar assets or liabilities in active markets;

		Quoted prices for identical or similar assets or liabilities in inactive markets;

		Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and

		Inputs that are derived principally from, or corroborated by, observable market data by correlation or other means.

Level 3		Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.

Period	Total number of shares purchased (a)		Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs (a)		Maximum number (or approximate dollar value) of shares that may be purchased under the plans or programs (a)
July 1, 2020 - July 31, 2020		—	$	—		—	$	—
August 1, 2020 - August 31, 2020		—		—		—		—
September 1, 2020 - September 30, 2020		1,234		12.22		—		—
		1,234	$	12.22		—	$	—

Exhibit Number	Description	Method of Filing

10.1	Equity Distribution Agreement dated September 11, 2020, between the Company and Canaccord Genuity LLC.	Incorporated by reference to Exhibit 10.1 on Form 8-K (#001-35806) filed on September 11, 2020.

31.1	Rule 13(a)-14(a) Certification of Principal Executive Officer.	Filed herewith.

31.2	Rule 13(a)-14(a) Certification of Principal Financial Officer.	Filed herewith.

32	Section 1350 Certification of Principal Executive Officer and Principal Financial Officer.	Filed herewith.

101.INS	Inline XBRL Instance ~~Document.~~Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.	Filed herewith.

101.SCH	Inline XBRL Taxonomy Extension Schema Document.	Filed herewith.

101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.	Filed herewith.

101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.	Filed herewith.

101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.	Filed herewith.

101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.	Filed herewith.

104	Cover Page Interactive Data File (embedded within the Inline XBRL document).	Filed herewith.

	The ExOne Company

	By:		/s/ John F. Hartner
			John F. Hartner
			Chief Executive Officer
			(Principal Executive Officer)

	Date:		November ~~7, 2019~~5, 2020

	By:		/s/ Douglas D. Zemba
			Douglas D. Zemba
			Chief Financial Officer
			(Principal Financial Officer and Principal Accounting Officer)

	Date:		November ~~7, 2019~~5, 2020