Telos Investor Presentation Solutions that empower and protect the enterprise.TM May 2021 Disclaimer The information contained in this presentation does not constitute or form part of, and should not be construed as, any offer or sale or subscription of, or any invitation to offer, buy or subscribe for, any securities, nor shall there be any offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. Telos Corporation (the "Company") will only make such an of ...

Telos Corporation (NASDAQ:TLS) Q1 2021 Earnings Conference Call May 17, 2021 4:30 PM ET Company Participants Brinlea Johnson – Investor Relations, The Blueshirt Group John Wood – Chairman and Chief Executive Officer Michele Nakazawa – Chief Financial Officer Ed Williams – Executive Vice President and Chief Operating Officer Rick Tracy – Senior Vice President and Chief Security Officer Conference Call Participants Alex Henderson – Needham Andrew Nowinski – D.A. Davidson Dan Ives – Wedbush Keith Bachman – Ban ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: March 31, 2021 ◻ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number: 001-08443 TELOS CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-08443 TELOS CORPORATION (Exact name of registrant as specified in its charter) Maryland 52-0880974 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Iden ...

Financial Performance - Revenue increased by 4.2% to $47.4 million for Q3 2020, compared to $45.5 million in Q3 2019[169]. - Services revenue rose to $44.2 million in Q3 2020, driven by increases from Telos ID ($2.5 million), Assurance/Xacta ($2.1 million), and Secure Communications ($1.7 million) while Secure Networks decreased by $1.3 million[169]. - Revenue for the nine months ended September 30, 2020, increased by 19.8% to $135.0 million from $112.7 million in the same period in 2019[177]. - Gross profit for Q3 2020 was $16.6 million, a 1.5% increase from $16.3 million in Q3 2019, with gross margin decreasing to 34.9%[171]. - Gross profit for the nine months ended September 30, 2020, increased by 31.4% to $46.4 million, with gross margin rising to 34.3%[179]. - Net loss attributable to Telos Corporation was $0.2 million for Q3 2020, compared to a net income of $2.2 million in Q3 2019[176]. Backlog and Demand - Total backlog as of September 30, 2020, was approximately $374.6 million, an increase from $307.5 million in 2019, and $354.5 million at December 31, 2019[154]. - Funded backlog as of September 30, 2020, was $147.0 million, up from $104.0 million in 2019, and $112.4 million at December 31, 2019[155]. - The company anticipates ongoing demand for its cybersecurity and cloud security solutions due to the increased reliance on information technology systems during the COVID-19 pandemic[165]. - The current health and economic crisis is expected to continue affecting federal departments and agencies, impacting the company's contracts and procurements[165]. Operating Expenses - Cost of sales increased to $30.9 million in Q3 2020, with a cost of sales as a percentage of revenue rising by 0.9%[170]. - SG&A expenses increased by 13.3% to $12.0 million in Q3 2020, primarily due to labor costs and outside services[172]. - Operating income decreased by 20.5% to $4.5 million in Q3 2020, attributed to higher SG&A expenses[174]. Capital Structure and Debt - The company has a complex capital structure consisting of redeemable preferred stock and common stock, impacting liquidity[192]. - The Credit Agreement includes an $11 million senior term loan with a maturity date of January 25, 2022, accruing interest at 13.0% per annum[193]. - Interest rates can increase to 14.5% per annum under certain conditions, with a monthly cash interest payment obligation of at least 10.0% per annum[194]. - The total principal amount of the loan increased to $16 million following a Fourth Amendment to the Credit Agreement[201]. - The exit fee was raised from $825,000 to $1,200,000, treated as an unamortized discount on the debt[201]. - The company incurred interest expenses of $0.8 million and $2.3 million for the three and nine months ended September 30, 2020, respectively[205]. Preferred Stock and Dividends - The total number of Public Preferred Stock shares issued and outstanding as of September 30, 2020, was 3,185,586[213]. - Cash dividends accrued on the Public Preferred Stock were $110.2 million and $107.4 million as of September 30, 2020, and December 31, 2019, respectively[220]. - Dividends accrued for the three and nine months ended September 30, 2020, were $1.0 million and $2.9 million, respectively[220]. - The Public Preferred Stock accrues a semi-annual dividend at an annual rate of 12% ($1.20) per share, based on a liquidation preference of $10 per share[220]. - The company has not declared or paid dividends on the Public Preferred Stock since 1991 due to various restrictions[215]. - The Public Preferred Stock is classified as a noncurrent liability as it is not due on demand or callable within 12 months from September 30, 2020[217]. - The company is prohibited from making any distributions or declaring dividends under the Credit Agreement until full payment of obligations[216]. Strategic Focus - The company has transitioned from product reselling to advanced solutions technologies, focusing on selling solutions and outsourcing product sales[159]. - The company is actively pursuing growth opportunities through GSA schedules and omnibus contracts, which provide a more flexible procurement cycle[156]. - The company’s offerings include Xacta for cyber risk management, Telos Ghost for secure communications, and Telos ID for digital identity services[152]. - The company maintains government certifications that distinguish its identity services, including TSA PreCheck™ enrollment provider and FINRA Electronic Fingerprint Submission provider[152]. Government Spending - The U.S. Government's defense spending is projected to increase by less than one percent in FY 2021 compared to FY 2020[161]. - Federal outlays for defense programs have decreased from 4.5% to 3.2% of GDP since the Budget Control Act of 2011[162].

FORM 10-Q ☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: June 30, 2020 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ◻ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number: 001-08443 TELOS CORPORATION (Exact name of registrant as specified in its charter) Maryland 52-0880974 (State or other jurisdiction of incorporation or organization) (I.R.S. Emplo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ⌧ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: March 31, 2020 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number: 001-08443 TELOS CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-08443 TELOS CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 198 ...

Financial Performance - Revenue for Q3 2019 increased by 31.2% to $45.5 million, up from $34.7 million in Q3 2018 [152]. - Services revenue rose to $39.2 million in Q3 2019, driven by increases in Identity Management solutions ($3.7 million), Cyber Security deliverables ($3.4 million), and IT & Enterprise solutions ($2.1 million) [152]. - Revenue increased by 10.5% to $112.7 million for the nine months ended September 30, 2019, from $102.0 million in the same period in 2018 [158]. - Cost of sales for Q3 2019 was $29.2 million, up from $18.4 million in Q3 2018, with a cost of sales as a percentage of revenue increasing by 11.1% [153]. - Cost of sales increased by 22.1% to $77.4 million for the nine months ended September 30, 2019, from $63.4 million for the same period in 2018 [159]. - Gross profit for Q3 2019 remained flat at $16.3 million, with gross margin decreasing to 35.8% from 46.9% in Q3 2018 [154]. - Gross profit decreased by 8.5% to $35.3 million for the nine months ended September 30, 2019, from $38.6 million for the same period in 2018 [160]. - Operating income decreased by 11.8% to $5.7 million in Q3 2019, down from $6.4 million in Q3 2018, primarily due to increased SG&A expenses [155]. - Operating income decreased by 54.8% to $3.9 million for the nine months ended September 30, 2019, compared to $8.6 million for the same period in 2018 [161]. - Net income attributable to Telos Corporation decreased by 46.3% to $2.2 million for Q3 2019, compared to $4.1 million for Q3 2018 [157]. - Net loss attributable to Telos Corporation was $2.9 million for the nine months ended September 30, 2019, compared to net income of $2.0 million for the same period in 2018 [164]. Backlog and Funding - Total backlog as of September 30, 2019, was approximately $307.5 million, compared to $303.9 million in 2018, and $290.8 million at December 31, 2018 [140]. - Funded backlog increased to $104.0 million as of September 30, 2019, from $91.1 million in 2018, and $79.3 million at December 31, 2018 [141]. Expenses - Selling, general, and administrative expenses (SG&A) increased by 8.0% to $10.6 million in Q3 2019, compared to $9.9 million in Q3 2018 [155]. - Interest expense increased by 7.2% to $5.5 million for the nine months ended September 30, 2019, from $5.1 million for the same period in 2018 [162]. Cash Flow - Cash provided by operating activities was $4.4 million for the nine months ended September 30, 2019, compared to $4.5 million for the same period in 2018 [170]. - Cash used in investing activities was approximately $5.3 million for the nine months ended September 30, 2019, compared to $2.8 million for the same period in 2018 [171]. - Cash provided by financing activities was $2.7 million for the nine months ended September 30, 2019, compared to cash used in financing activities of $1.9 million for the same period in 2018 [172]. Debt and Financing - The company borrowed an additional $5 million, increasing the total principal under the Credit Agreement to $16 million [185]. - The exit fee under the Credit Agreement was increased from $825,000 to $1,200,000 [185]. - The maturity date of the Credit Agreement was amended from January 25, 2022, to January 15, 2021 [185]. - The company paid a fee of $110,000 in connection with the Fourth Amendment to the Credit Agreement [185]. - The company incurred interest expenses of $0.7 million and $1.5 million for the three and nine months ended September 30, 2019, respectively, compared to $0.4 million and $1.3 million for the same periods in 2018 [184]. - The company incurred interest expenses of $83,000 and $245,000 for the three and nine months ended September 30, 2019, respectively, on the Porter Notes [193]. - As of September 30, 2019, approximately $984,000 of accrued interest was payable according to the stated interest rate of the Porter Notes [193]. - The maximum amount of outstanding Purchased Receivables under the Accounts Receivable Purchase Agreement is capped at $10 million [185]. Dividends - The company has not declared or paid dividends on its Public Preferred Stock since 1991 due to various restrictions [195]. - The total number of shares issued and outstanding for the Public Preferred Stock as of September 30, 2019, was 3,185,586 [194]. - The Public Preferred Stock accrues a semi-annual dividend at an annual rate of 12% ($1.20) per share, based on a liquidation preference of $10 per share [200]. - As of September 30, 2019, the company accrued $106.4 million in cash dividends, compared to $103.5 million as of December 31, 2018 [200]. - For the three months ended September 30, 2019, the company accrued dividends on the Public Preferred Stock of $1.0 million, down from $2.9 million for the same period in 2018 [200]. Accounting and Controls - The adoption of the new lease standard resulted in the recognition of right-of-use assets and additional lease liabilities of $2.0 million as of January 1, 2019 [204]. - There were no material changes to critical accounting policies during the three months ended September 30, 2019 [202]. - The company concluded that its disclosure controls and procedures are effective as of September 30, 2019 [205]. - There has been no change in internal control over financial reporting that materially affected the company during the quarter ended September 30, 2019 [206]. Government Spending - The defense spending limits for FY 2020 were increased by $90 billion to $667 billion, and for FY 2021 by $81 billion to $672 billion [149]. - The company anticipates ongoing debates and negotiations within the U.S. Government regarding federal and defense spending, which may impact operations [150].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: June 30, 2019 ◻ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number: 001-08443 TELOS CORPORATION (Exact name of registrant as specified in its charter) Maryland 52-0880974 (State or other jurisdiction of incorporation or organization) (I.R.S. Emplo ...