Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________ FORM 10-Q (Address of principal executive offices) (Zip Code) (703) 724-3800 ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: September 30, 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 ...

Telos Investor Presentation Solutions that empower and protect the enterprise.TM August 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 ...

Revenue and Financial Performance - Revenue increased by 8.1% to $52.6 million for Q2 2021, compared to $48.6 million in Q2 2020[140]. - Security Solutions revenue decreased by approximately 8.8% to $31.2 million, primarily due to a $4.6 million decrease in sales related to the U.S. Census Bureau contract[140]. - Secure Networks revenue increased by approximately 48.6% to $21.4 million, driven by contracts with the DoD[140]. - Gross profit increased by 17.0% to $20.6 million for Q2 2021, with a gross margin increase to 39.1% from 36.2% in Q2 2020[142]. - SG&A expenses increased by 212.7% to $39.1 million for Q2 2021, primarily due to stock-based compensation[143]. - Operating loss was $18.6 million for Q2 2021, compared to an operating income of $5.1 million in Q2 2020[144]. - Net loss attributable to Telos Corporation was $18.7 million for Q2 2021, compared to a net income of $0.3 million in Q2 2020[147]. - Total assets increased to $220.1 million as of June 30, 2021, from $183.8 million as of December 31, 2020[156]. - Total liabilities decreased to $55.4 million as of June 30, 2021, from $56.7 million as of December 31, 2020[157]. - Net loss attributable to Telos Corporation for the six months ended June 30, 2021, was $33.5 million, compared to $2.0 million for the same period in 2020[155]. - For the three months ended June 30, 2021, Telos Corporation reported a net loss of $18.7 million, compared to a net income of $0.3 million for the same period in 2020[162]. - Adjusted EBITDA for the six months ended June 30, 2021, was $5.7 million, a decrease from $8.2 million for the same period in 2020[162]. - Adjusted Net Income for the three months ended June 30, 2021, was $2.6 million, resulting in an Adjusted EPS of $0.04[164]. - The company does not anticipate paying any cash dividends on its common stock in the foreseeable future[167]. Backlog and Revenue Composition - Recurring revenue has exceeded 85% of the company's annual revenue for the past three years[125]. - Total backlog consists of contract revenues remaining to be earned, with funded backlog expected to be earned within one year[126]. Government and Cybersecurity Initiatives - President Biden's FY 2022 budget request includes $715 billion for the Department of Defense, a 1.6% increase from FY 2021[132]. - The company offers a premier platform for enterprise cyber risk management, Xacta, which is widely used across the U.S. federal government[122]. - The company has developed Telos Ghost, a virtual obfuscation network-as-a-service aimed at enhancing security and privacy[126]. - The company maintains government certifications that distinguish its identity services, including TSA PreCheck enrollment provider and FBI-approved Channeler[126]. - The company anticipates increased demand for its solutions due to intensified efforts to defend against ransomware and cyberattacks[136]. - Federal agencies are enhancing cybersecurity measures, which may lead to increased need for the company's services[138]. - The company is positioned to benefit from the government's shift towards secure cloud services and zero trust architecture[137]. - The company's solutions are critical for maintaining continuity of services during the ongoing shift to teleworking by federal employees[135]. Cash Flow and Capital Management - Cash used in operating activities was $5.8 million for the six months ended June 30, 2021, compared to cash provided of $0.8 million for the same period in 2020[169]. - Cash provided by financing activities was $35.5 million for the six months ended June 30, 2021, primarily due to proceeds from the follow-on offering[171]. - The company intends to use remaining net proceeds from the IPO and follow-on offering for general corporate purposes and potential acquisitions[167]. - As of June 30, 2021, working capital was $139.7 million, an increase from $105.2 million as of December 31, 2020[168]. - Cash used in investing activities was approximately $4.7 million for the six months ended June 30, 2021, primarily due to software development costs[170].

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 ...