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].

Financial Performance - Revenue for the second quarter of 2019 increased by 3.2% to $36.0 million, up from $34.9 million in the same period of 2018[148] - Services revenue rose to $34.4 million in Q2 2019, primarily driven by increases in Cyber Security deliverables ($3.4 million) and Identity Management solutions ($1.7 million)[148] - Revenue decreased by 0.2% to $67.2 million for the six months ended June 30, 2019, compared to $67.3 million in the same period in 2018[156] - Services revenue increased to $62.4 million for the six months ended June 30, 2019, from $59.7 million for the same period in 2018, driven by increases in Cyber Security deliverables by $4.9 million[156] Profitability - Gross profit decreased by 17.1% to $10.0 million in Q2 2019, with a gross margin of 27.8%, down from 34.6% in Q2 2018[151] - Gross profit decreased by 14.9% to $19.0 million for the six months ended June 30, 2019, from $22.3 million in the same period in 2018, with gross margin decreasing to 28.2%[159] - Operating loss for Q2 2019 was $0.4 million, compared to an operating income of $2.2 million in Q2 2018[152] - Operating loss was $1.8 million for the six months ended June 30, 2019, compared to operating income of $2.1 million for the same period in 2018[160] - Net loss attributable to Telos Corporation was $1.7 million for Q2 2019, compared to a net loss of $87,000 in the same period of 2018[155] - Net loss attributable to Telos Corporation was $5.2 million for the six months ended June 30, 2019, compared to $2.1 million for the same period in 2018[163] Expenses - Cost of sales for Q2 2019 increased to $26.0 million, with a cost of sales percentage of 72.2%, up from 65.4% in Q2 2018[147] - Selling, general, and administrative expenses increased by 5.2% to $10.4 million in Q2 2019, primarily due to higher labor costs and legal fees[152] - SG&A expense increased by 3.1% to $20.8 million for the six months ended June 30, 2019, from $20.2 million for the same period in 2018[160] Cash Flow and Working Capital - Cash provided by operating activities was $5.9 million for the six months ended June 30, 2019, compared to $3.5 million for the same period in 2018[169] - Cash used in investing activities was approximately $3.7 million for the six months ended June 30, 2019, compared to $1.8 million for the same period in 2018[170] - Working capital was $(4.5) million as of June 30, 2019, compared to $2.1 million as of December 31, 2018[168] Backlog - Total backlog as of June 30, 2019, was approximately $255.0 million, a decrease from $261.4 million in 2018 and $290.8 million at December 31, 2018[137] - Funded backlog as of June 30, 2019, was $74.1 million, compared to $70.2 million in 2018 and $79.3 million at December 31, 2018[138] Debt and Financing - The Company borrowed an additional $5 million, increasing total principal to $16 million, with the maturity date of the Credit Agreement amended to January 15, 2021[187] - The exit fee for the Credit Agreement was increased from $825,000 to $1,200,000[187] - Interest expense increased by 3.4% to $3.5 million for the six months ended June 30, 2019, from $3.4 million for the same period in 2018[161] Preferred Stock - The Company has accrued dividends on the Public Preferred Stock amounting to $105.4 million as of June 30, 2019[200] - The Public Preferred Stock accrues a semi-annual dividend at an annual rate of 12% based on a liquidation preference of $10 per share[200] - The Public Preferred Stock is classified as a noncurrent liability due to restrictions on redemption and dividend payments[197] Lease Accounting - The adoption of the new lease accounting standard (ASU 2016-02) resulted in the recognition of right-of-use assets of $2.0 million and additional lease liabilities of $2.0 million as of January 1, 2019[203] - The company adopted the new lease requirements using the Effective Date Method for all leases with terms greater than 12 months[203] - The adoption of the lease standard did not have a material impact on the company's operating results or cash flows[203] Government Spending - The U.S. Government's discretionary spending limits for FY 2020 and 2021 were raised to $738 billion and $740.5 billion, respectively, representing an increase over the FY 2019 amount of $716 billion[145]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ 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. Employer Identification No.) 19886 Ashburn Road, Ashburn, Virginia 20147-2358 (Address of principal executive offices) (Zip Code) WASHINGTON, D.C. 20549 FORM 10-Q ☑ Quarterly ...

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, 2018 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 ...