0000320121-22-000064 | 10-K | XBRL Viewer

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue
Total revenue	$ 242,433	$ 179,917	$ 159,218
Costs and expenses
Total costs and expenses	156,404	117,497	106,874
Selling, general and administrative expenses
Sales and marketing	19,655	6,176	5,951
Research and development	19,096	14,243	10,647
General and administrative	88,742	41,704	30,721
Selling, general and administrative expenses	127,493	62,123	47,319
Operating (loss) income	(41,464)	297	5,025
Other income (expenses)
Gain on redemption of public preferred stock	0	14,012	0
Non-operating (expense) income	(921)	(255)	201
Interest expense	(777)	(7,259)	(7,467)
(Loss) income before income taxes	(43,162)	6,795	(2,241)
Benefit from income taxes	28	46	104
Net (loss) income	(43,134)	6,841	(2,137)
Less: Net income attributable to non-controlling interest	0	(5,154)	(4,264)
Net (loss) income attributable to Telos Corporation	$ (43,134)	$ 1,687	$ (6,401)
Net (loss) earnings per share attributable to Telos Corporation, basic (in dollars per share)	$ (0.65)	$ 0.04	$ (0.17)
Net (loss) earnings per share attributable to Telos Corporation, diluted (in dollars per share)	$ (0.65)	$ 0.04	$ (0.17)
Weighted-average shares of common stock outstanding, basic (in shares)	66,374,000	41,642,000	37,729,000
Weighted-average shares of common stock outstanding, diluted (in shares)	66,374,000	42,877,000	37,729,000
Services
Revenue
Total revenue	$ 221,548	$ 161,180	$ 143,581
Costs and expenses
Total costs and expenses	143,357	106,969	98,772
Products
Revenue
Total revenue	20,885	18,737	15,637
Costs and expenses
Total costs and expenses	$ 13,047	$ 10,528	$ 8,102

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest [Abstract]
Net (loss) income	$ (43,134)	$ 6,841	$ (2,137)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(71)	38	(11)
Less: Comprehensive income attributable to non-controlling interest	0	(5,154)	(4,264)
Comprehensive (loss) income attributable to Telos Corporation	$ (43,205)	$ 1,725	$ (6,412)

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

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+ Details

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 126,562	$ 106,045
Accounts receivable, net	59,844	30,913
Inventories, net	1,247	3,311
Prepaid expenses	3,329	3,059
Other current assets	732	786
Total current assets	191,714	144,114
Property and equipment
Furniture and equipment	15,420	13,574
Leasehold improvements	2,994	2,669
Finance leases right-of-use assets	30,784	30,791
Property and equipment, gross	49,198	47,034
Less: Accumulated depreciation and amortization	(34,057)	(32,057)
Net property and equipment	15,141	14,977
Operating lease right-of-use assets	852	1,464
Goodwill	17,922	14,916
Intangible assets, net	19,199	7,420
Other assets	1,253	926
Total assets	246,081	183,817
Current liabilities
Accounts payable and other accrued liabilities	34,548	20,899
Accrued compensation and benefits	6,557	8,474
Contract liabilities	6,381	5,654
Finance lease obligations – short-term	1,461	1,339
Operating lease obligations – short-term	564	677
Other current liabilities	1,430	1,903
Total current liabilities	50,941	38,946
Finance lease obligations - long-term	12,840	14,301
Operating lease obligations - long-term	388	941
Deferred income taxes	723	652
Other liabilities	935	1,873
Total liabilities	65,827	56,713
Commitments and contingencies (Note 18)
Stockholders’ equity
Common stock, $0.001 par value, 250,000,000 shares authorized, 66,767,450 shares and 64,625,071 shares issued and outstanding as of December 31, 2021 and 2020, respectively	105	103
Additional paid-in capital	367,153	270,800
Accumulated other comprehensive (loss) income	(27)	44
Accumulated deficit	(186,977)	(143,843)
Total stockholders’ equity	180,254	127,104
Total liabilities and stockholders' equity	$ 246,081	$ 183,817

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2021	Dec. 31, 2020
Stockholders’ equity
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares, issued (in shares)	66,767,450	64,625,071
Common stock, shares, outstanding (in shares)	66,767,450	64,625,071

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Operating activities:
Net (loss) income	$ (43,134)	$ 6,841	$ (2,137)
Adjustments to reconcile net (loss) income to cash provided by (used in) operating activities:
Gain on redemption of public preferred stock	0	(14,012)	0
Net loss on early extinguishment of debt and other transactions	0	275	0
Stock-based compensation	60,231	4	0
Dividends from preferred stock recorded as interest expense	0	3,384	3,823
Depreciation and amortization	5,624	5,353	4,972
Provision for inventory obsolescence	10	(1)	376
Provision for (benefit from) doubtful accounts receivable	7	(412)	414
Provision for doubtful non-trade receivables	0	569	0
Amortization of debt issuance costs	0	978	461
Provision for (benefit from) deferred income tax	70	31	(197)
Loss on disposal of fixed assets	6	1	15
Accretion of discount on acquisition holdback	19	0	0
Changes in assets and liabilities:
(Increase) decrease in accounts receivable	(28,937)	(2,559)	6,186
Decrease (increase) in inventories	2,054	(1,345)	2,048
Increase in prepaid expenses, other current assets and other assets	(982)	(938)	(4,005)
Increase (decrease) in accounts payable and other accrued payables	16,086	3,413	(6,730)
(Decrease) increase in accrued compensation and benefits	(1,917)	(3,713)	3,105
Increase (decrease) in contract liabilities	727	(683)	1,106
(Decrease) increase in other current liabilities and other liabilities	(2,602)	710	2,379
Cash provided by (used in) operating activities	7,262	(2,104)	11,816
Investing activities:
Cash paid for acquisition	(5,925)	0	0
Capitalized software development costs	(9,968)	(6,681)	(2,442)
Purchases of property and equipment	(3,201)	(780)	(4,090)
Cash used in investing activities	(19,094)	(7,461)	(6,532)
Financing activities:
Proceeds from issuance of common stock, net of issuance costs	64,269	272,813	0
Repurchase of outstanding warrants	(26,894)	0	0
Repurchase of common stock	(1,251)	0	0
Redemption of public preferred stock	0	(108,878)	0
Purchase of Telos ID membership interest	0	(30,000)	0
Payment of senior term loan	0	(17,351)	0
Payment of subordinated debt	0	(3,657)	0
Proceeds from senior term loan	0	0	4,881
Payments under finance lease obligations	(1,339)	(1,225)	(1,115)
Amendment fee paid to lender	0	(100)	0
Distributions to Telos ID Class B member – non-controlling interest	(2,436)	(2,743)	(2,371)
Cash provided by financing activities	32,349	108,859	1,395
Increase in cash and cash equivalents	20,517	99,294	6,679
Cash and cash equivalents, beginning of period	106,045	6,751	72
Cash and cash equivalents, end of period	126,562	106,045	6,751
Cash paid during the year for:
Interest	758	7,259	3,299
Income taxes	60	64	40
Supplemental disclosures of non-cash investing and financing activities:
Acquisition holdback	506	0	0
Operating lease ROU assets obtained in exchange for operating lease liabilities	638	613	488
Dividends from preferred stock recorded as interest expense	0	3,384	3,823
Common stock issued on redemption of public preferred stock	0	19,213	0
Common stock issued on purchase of Telos ID membership interest	0	148,399	0
Distributions to Telos ID Class B member – non-controlling interest	0	2,436	0
Debt issuance costs and prepayment of interest on senior term loan	$ 0	$ 0	$ 119

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid–in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Non-Controlling Interest	Class A Common Stock Common Stock	Class B Common Stock Common Stock
Beginning balance (in shares) at Dec. 31, 2018		0					45,143,000	4,038,000
Beginning balance at Dec. 31, 2018	$ (132,103)	$ 0	$ 4,310	$ 17	$ (139,129)	$ 2,621	$ 65	$ 13
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(2,137)				(6,401)	4,264
Purchase of Telos ID membership interest						0
Foreign currency translation (loss) gain	(11)			(11)
Distributions	(2,371)					(2,371)
Ending balance (in shares) at Dec. 31, 2019		0					45,143,000	4,038,000
Ending balance at Dec. 31, 2019	(136,622)	$ 0	4,310	6	(145,530)	4,514	$ 65	$ 13
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	6,841				1,687	5,154
Issuance of common stock upon conversion of Class A and Class B common stock (in shares)		39,003,000					(45,143,000)	(4,038,000)
Issuance of common stock upon conversion of Class A and Class B common stock	0	$ 78					$ (65)	$ (13)
Issuance of common stock (in shares)		25,622,000
Issuance of common stock	292,022	$ 25	291,997
Purchase of Telos ID membership interest	(30,000)		(25,511)			(4,489)
Foreign currency translation (loss) gain	38			38
Stock-based compensation	4		4
Distributions	$ (5,179)					(5,179)
Ending balance (in shares) at Dec. 31, 2020	64,625,071	64,625,000					0	0
Ending balance at Dec. 31, 2020	$ 127,104	$ 103	270,800	44	(143,843)	0	$ 0	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(32,422)
Ending balance at Jun. 30, 2021	$ 165,785				(176,265)
Beginning balance (in shares) at Dec. 31, 2020	64,625,071	64,625,000					0	0
Beginning balance at Dec. 31, 2020	$ 127,104	$ 103	270,800	44	(143,843)	0	$ 0	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(37,644)
Ending balance at Sep. 30, 2021	$ 171,837		354,300		(182,572)
Beginning balance (in shares) at Dec. 31, 2020	64,625,071	64,625,000					0	0
Beginning balance at Dec. 31, 2020	$ 127,104	$ 103	270,800	44	(143,843)	0	$ 0	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(43,134)				(43,134)
Issuance of common stock (in shares)		2,050,000
Issuance of common stock	64,269	$ 2	64,267
Foreign currency translation (loss) gain	(71)			(71)
Stock-based compensation (in shares)		132,000
Stock-based compensation	60,231		60,231
Repurchase of outstanding warrants	(26,894)		(26,894)
Repurchase of common stock (in shares)		(40,000)
Repurchase of common stock	$ (1,251)		(1,251)
Ending balance (in shares) at Dec. 31, 2021	66,767,450	66,767,000					0	0
Ending balance at Dec. 31, 2021	$ 180,254	$ 105	367,153	$ (27)	(186,977)	$ 0	$ 0	$ 0
Beginning balance at Jun. 30, 2021	165,785				(176,265)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(5,222)
Ending balance at Sep. 30, 2021	$ 171,837		$ 354,300		$ (182,572)

Overview and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Overview and Summary of Significant Accounting Policies

Note 1. Overview and Summary of Significant Accounting Policies

Overview of Business

Organization

Telos Corporation, together with its subsidiaries, (the “Company” or “Telos” or “We”), a Maryland corporation, is a leading provider of cyber, cloud and enterprise security solutions for the world's most security-conscious organizations. We own all of the issued and outstanding share capital of Xacta Corporation, a subsidiary that develops, markets and sells government-validated secure enterprise solutions to government and commercial customers. We also own all of the issued and outstanding share capital of Ubiquity.com, Inc., a holding company for Xacta Corporation. We hold a 100% ownership interest in Telos Identity Management Solutions, LLC (“Telos ID”), Teloworks, Inc. (“Teloworks”) and Telos APAC Pte. Ltd. ("Telos APAC").

On November 12, 2020, we amended our charter to effect an approximate 0.794-for-1 reverse stock split with respect to our common stock. The par value and the authorized shares of the common stock were not adjusted as a result of the reverse stock split. The accompanying consolidated financial statements and notes to the consolidated financial statements give retroactive effect to the reverse stock split for all periods presented.

Public Offering of Common Stock

On November 19, 2020, we completed our initial public offering of shares of our common stock. We issued 17.2 million shares of our common stock at a price of $17.00 per share, generating net proceeds of approximately $272.8 million. We used approximately $108.9 million of the net proceeds in connection with the conversion of our outstanding shares of Exchangeable Redeemable Preferred Stock into the right to receive cash and shares of our common stock, $30.0 million to fund our acquisition of the outstanding Class B Units of Telos ID, and $21.0 million to repay our outstanding senior term loan and subordinated debt.

On April 6, 2021, we completed our follow-on offering of 9.1 million shares of our common stock at a price of $33.00 per share, including 7.0 million shares of common stock held by certain existing stockholders of Telos. The offering generated approximately $64.3 million of net proceeds to Telos. We did not receive any proceeds from the shares of common stock sold by the selling stockholders. On April 19, 2021, we used approximately $1.3 million of the net proceeds to repurchase 39,682 shares of our common stock and $26.9 million to repurchase the warrants to purchase 900,970 shares of our common stock owned by certain affiliates of EnCap.

We have used and intend to continue using the remaining net proceeds for general corporate purposes, including working capital, sales and marketing activities, research and development, general and administrative matters and capital expenditures. We also may use a portion of the net proceeds to acquire complementary businesses, products, services, or technologies. The amounts and timing of our actual use of the net proceeds will vary depending on numerous factors.

Principles of Consolidation and Reporting

The accompanying consolidated financial statements include the accounts of Telos and its subsidiaries, including Ubiquity.com, Inc., Xacta Corporation, Telos ID, Teloworks, and Telos APAC, all of whose issued and outstanding share capital is wholly-owned directly and indirectly by the Telos Corporation. All intercompany transactions have been eliminated in consolidation.

In preparing these consolidated financial statements, we have evaluated subsequent events through the date that these consolidated financial statements were issued.

Basis of Comparison

Certain prior-period amounts have been reclassified to conform to the current period presentation. In the current period, we have reclassified and presented intangible assets separately from our property and equipment line item. The reclassification had no impact on our total assets or liabilities nor on our net (loss) income or stockholders' equity.

Revision of Prior Quarterly 2021 Financial Statements

In connection with the preparation of the consolidated financial statements, the Company recorded certain revisions related to previously issued unaudited condensed consolidated financial statements. The Company considered the errors identified in accordance with the SEC's Staff Accounting Bulletin No. 99 and determined the impact was immaterial to the previously issued consolidated interim financial statements. Nonetheless, the Company has revised the previously reported interim financial information for the quarterly periods ended March 31, 2021, June 30, 2021, and September 30, 2021. There is no cumulative impact to the Company’s full-year 2021 financial statements as a result of these revisions. Revisions to amounts in previously filed quarterly financial statements are reflected in Note 20 - Revision of Interim Financial Statements.

Segment Reporting

Operating segments are defined as components of an enterprise for which separate discrete financial information is available and evaluated regularly by the chief operating decision maker (“CODM”), who the Company has identified is the Chief Executive Officer, in deciding how to allocate resources and assess performance.

During the fourth quarter of 2021, we reorganized our internal management reporting structure and the financial results evaluated by our CODM; therefore, we changed our operating segments to align with how our CODM currently oversees the business, allocates resources and evaluates operating performance. As a result of the segment reorganization, we reported two reportable and operating segments: Security Solutions and Secure Networks. Our Security Solutions segment focuses on the Company's cybersecurity, cloud and identity solutions. Our Secure Networks segment provides offerings for enterprise security.

Summary of Significant Accounting Policies

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience, current available information and various other assumptions that we believe are reasonable under the circumstances. Significant estimates and assumptions used in the preparation of our consolidated financial statements include revenue recognition, allowance for doubtful accounts, allowance for inventory obsolescence, the valuation allowance for deferred tax assets, income taxes, contingencies and litigation, potential impairments of goodwill and estimated pension-related costs for our foreign subsidiaries. Actual results could differ from those estimates.

Risks and Uncertainties

Financial instruments that subject us to concentrations of credit risk consist primarily of cash and cash equivalents, and accounts receivable.

In accordance with ASC 275-10-50-16, in consideration that such a large amount of our working capital and total assets are held in cash and cash equivalents, we have considered that the balances held in our various treasury accounts may exceed federally insured limits as of the date of the financial statements. Due to the financial strength of the financial institution where the accounts are held, we do not believe that this concentration risk makes it reasonably possible that a near-term severe impact risk of loss will occur.

The Company's receivables are primarily due from the U.S. government, or from prime contractors on which we are subcontractors and the end customer is the U.S. government, and are generally considered collectable from the perspective of the customer's ability to pay. The Company does not have a material credit risk exposure. We maintain an allowance for doubtful accounts for estimated potential credit losses.

The COVID-19 pandemic has caused significant disruption to national and global economies and government activities. This highly contagious disease has spread to most of the countries in the world and throughout the United States, creating a serious impact on customers, workforce, and suppliers, disrupting economies and financial markets, and leading to a world-wide economic downturn. COVID-19, together with subsequently reported variants of this strain, have caused a disruption of the normal operations of many businesses, including the temporary closure or scale-back of business operations and/or the imposition of either quarantine or remote work or meeting requirements for employees, either by government order or on a voluntary basis.

The COVID-19 pandemic has impacted our estimates and assumptions and will continue to do so. The pandemic may adversely affect our customers’ ability to perform their missions and is in many cases disrupting their operations. Given the uncertainties around the pandemic, including its duration and potential future disruptions to our supply chain or workforce, it is reasonably possible that the actual impact of the pandemic on our contract costs could be materially different than our current estimates. It may also impact the ability of our subcontractors, partners, and suppliers to operate and fulfill their contractual obligations, and result in an increase in their costs and cause delays in performance. These supply chain effects, and the direct effect of the virus and the disruption on our operations, may negatively impact both our ability to meet customer demand and our revenue and profit margins. Our employees, in some cases, are working remotely due either to safety concerns or to customer-imposed limitations and relying on various technologies to perform their functions. We could see delays or changes in customer demand, particularly if government funding priorities change. Additionally, the disruption and volatility in the global and domestic capital markets may increase the cost of capital and limit our ability to access capital. Both the health and economic aspects of COVID-19 are highly fluid and the future course of each is uncertain.

Cash and Cash Equivalents

We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Our cash management program utilizes zero balance accounts. Accordingly, all book overdraft balances have been reclassified to accounts payable and other accrued liabilities.

Accounts Receivable

Receivables include billed and unbilled receivables. Unbilled receivables, substantially all of which are expected to be billed and collected within one year, are stated at their estimated realization value and consist of costs and fees billable on contract completion or the occurrence of a specific event, other than the passage of time.

Inventories

Inventories are stated at the lower of cost or net realizable value, where cost is determined using the weighted-average method. Substantially all inventories consist of purchased customer off-the-shelf hardware and software, and component computer parts used in connection with system integration services that we perform. Provisions have been made to reduce all obsolete, slow-moving or unsaleable inventories to their net realizable values. This provision is based on our overall obsolescence experience and our assessment of future inventory requirements. This charge is taken primarily due to the age of the specific inventory and the significant additional costs that would be necessary to upgrade to current standards as well as the lack of forecasted sales for such inventory in the near future.

Gross inventory was $2.1 million and $4.2 million at December 31, 2021 and 2020, respectively. As of December 31, 2021, it is management’s judgment that we have fully provided for any potential inventory obsolescence.

The components of the allowance for inventory obsolescence are set forth below (in thousands):


	Balance Beginning of Year		Additions Charge to Costs and Expense		Recoveries		Balance End of Year

Year Ended December 31, 2021	$	851	$	10	$	—	$	861
Year Ended December 31, 2020	$	860	$	(1)	$	(8)	$	851
Year Ended December 31, 2019	$	520	$	376	$	(36)	$	860

Property and Equipment

Property and equipment are recorded at cost. Depreciation is provided using the straight-line method at rates based on the estimated useful lives of the individual assets or classes of assets as follows:


Furniture and equipment			3-5 Years
Leasehold improvements			Lesser of life of lease or useful life of asset
Property and equipment under finance leases			Lesser of life of lease or useful life of asset

Leased property meeting certain criteria is capitalized at the present value of the related minimum lease payments. Amortization of property and equipment under finance leases is computed using the straight-line method over the lesser of the term of the related lease and the useful life of the related asset.

Upon sale or retirement of property and equipment, the costs and related accumulated depreciation are eliminated from the accounts and any gain or loss on such disposition is reflected in the consolidated statements of operations. For the years ended December 31, 2021, 2020, and 2019, such amounts are negligible. Expenditures for repairs and maintenance are charged to operations as incurred.

Long-lived assets, including property and equipment, are reviewed for impairment whenever circumstances indicate that the carrying amount of the asset exceeds its estimated fair value. Considerable management judgment is necessary to estimate its fair value. Accordingly, actual results could differ from such estimates. No events have been identified that caused an evaluation of the recoverability of long-lived assets.

Depreciation and amortization expenses related to property and equipment, including property and equipment under finance leases was $3.1 million, $2.9 million, and $2.5 million for the years ended December 31, 2021, 2020, and 2019, respectively.

Software Development Costs

We account for development costs of software in accordance with ASC Topic 985-20, “Software – Costs of Software to be Sold, Leased, or Marketed” and ASC Topic 350-40 “Internal Use Software”, depending on the intended use of the software being developed. Software development costs are capitalized and amortized over the estimated product life on a straight-line basis. The Company analyzes the net realizable value of capitalized software development costs on at least an annual basis and has determined that there is no indication of impairment of the capitalized software development costs as forecasted future sales are adequate to support the carrying values.

Advertising Costs

Advertising costs, which are expensed and included in sales and marketing expense when incurred, were $1.8 million, $1.0 million, and $0.4 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Income Taxes

We follow the provisions of ASC 740 related to accounting for uncertainty in income taxes. The accounting estimates related to liabilities for uncertain tax positions require us to make judgments regarding the sustainability of each uncertain tax position based on its technical merits. If we determine it is more likely than not that a tax position will be sustained based on its technical merits, we record the impact of the position in our consolidated financial statements at the largest amount that is greater than fifty percent likely of being realized upon ultimate settlement. These estimates are updated at each reporting date based on the facts, circumstances and information available. We are also required to assess at each reporting date whether it is reasonably possible that any significant increases or decreases to our unrecognized tax benefits will occur during the next 12 months.

Business Combinations

Acquisitions were accounted for under U.S. GAAP using the acquisition method in accordance with ASC 805, Business Combinations. The Company allocates the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities, if any, is recorded as goodwill.

The accounting for business combinations requires management to make judgments and estimates of the fair value of assets acquired, including the identification and valuation of intangible assets, as well as liabilities and contingencies assumed. Such judgments and estimates directly impact the amount of goodwill recognized in connection with an acquisition. Estimating the fair value of acquired assets and assumed liabilities, including intangibles, requires judgment about expected future cash flows, weighted-average cost of capital, discount rates and expected long-term growth rates.

Goodwill and Intangible Assets

Goodwill is recorded for the difference between the aggregate consideration paid for an acquisition and the fair value of net tangible and intangible assets acquired and liabilities assumed. Goodwill is not amortized, but rather tested for potential impairment. We evaluate the impairment of goodwill in accordance with ASC 350, which requires goodwill and indefinite-lived intangible assets to be assessed on at least an annual basis, as of December 31 each year, for impairment using a fair value basis. Between annual evaluations, if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount, then impairment must be evaluated. Such circumstances could include, but are not limited to: (1) a significant adverse change in legal factors or business climate, or (2) a loss of key contracts or customers.

We may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying value, and if so, we perform a quantitative test. We compare the carrying value of each reporting unit to its estimated fair value, and if the fair value is determined to be less than the carrying value, we recognize an impairment loss for the difference. The evaluation is based on the estimation of the fair values at the reporting unit level in comparison to the reporting unit’s net asset carrying values. Our discounted cash flows required management’s judgment with respect to forecasted revenue streams and operating margins, capital expenditures and the selection and use of an appropriate discount rate. We utilized the weighted average cost of capital as derived by certain assumptions specific to our facts and circumstances as the discount rate.

The Company's goodwill is amortized and deducted over a 15-year period for tax purposes.

We completed the required annual impairment test of goodwill for all reporting units as of December 31, 2021, resulting in no impairments. The fair value of our reporting units exceeded their carrying value. See Note 5 - Goodwill for additional information.

Intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed using the method that best reflects how their economic benefits are utilized or, if a pattern of economic benefits cannot be reliably determined, on a straight-line basis over their estimated useful lives. Intangible assets with finite lives are assessed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

Stock-Based Compensation

Under our 2016 Omnibus Long-Term Incentive Plan, as amended (the “2016 LTIP”), we have the ability to award restricted stock units with time-based vesting (“Service-Based RSUs”) and restricted stock units with performance-based vesting (“Performance-Based RSUs”) to senior executives, directors, employees and other eligible service providers. Under the 2016 LTIP, our Board of Directors or, by designation of authority, the Management Development and Compensation Committee of our Board of Directors has the discretion to establish the terms, conditions and criteria of the various awards, including the weighing and vesting schedule of Service-Based RSUs and the performance conditions applicable to the Performance-Based RSUs, including the achievement of certain financial performance criteria or price targets for our common stock. Upon vesting, Service-Based RSUs and Performance-Based RSUs will be settled in the Company’s common stock.

•Service-Based RSUs granted to eligible employees as an incentive generally may vest in installments over a period of up to three years from the date of grant. Service-Based RSUs granted to senior executives in 2021 vest in three annual installments from the date of grant, with 30% vesting on the first and second anniversaries and 40% vesting on the third anniversary. The grant date fair value per share is equal to the closing stock price on the date of grant.

•Performance-Based RSUs may vest upon the achievement of a defined performance target or at the end of the defined performance period from the date of grant, whichever initially occurs. The grant date fair value per share of these Performance-Based RSUs is equal to the closing stock price on the date of the grant or the fair value of the award on the grant date as determined through an independent valuation for Performance-Based RSUs with market condition. Performance-Based RSUs may vest upon the achievement of certain price targets for the Company’s common stock anytime over a three-year period from the date of grant. In order to reflect the substantive characteristics of these market condition awards, the Company employs a Monte Carlo simulation valuation model to calculate the grant date fair value and corresponding requisite service period of the award. Monte Carlo approaches are a class of computational algorithms that rely on repeated random sampling to compute their results. This approach allows the calculation of the value of such awards based on a large number of possible stock price path scenarios.

We recognize these share-based payment transactions when services from the employees are received and recognize a corresponding increase in additional paid-in capital in our consolidated balance sheets, in accordance with ASC 718, "Compensation - Stock Compensation." The measurement objective for these equity awards is the estimated fair value at the date of grant of the equity instruments that we are obligated to issue when employees have rendered the requisite service and satisfied any other conditions necessary to earn the right to benefit from the instruments. The compensation expense for an award is recognized ratably over the requisite service period for the entire award, which is the period during which an employee is required to provide service in exchange for an award. Compensation expense for awards with performance conditions is recognized over the requisite service period if it is probable that the performance condition will be satisfied. If such performance conditions are not or are no longer considered probable, no compensation expense for these awards is recognized, and any previously recognized expense is reversed. If the performance condition is achieved prior to the completion of the requisite service period, any unrecognized compensation expense will be recognized in the period the performance condition is achieved. Compensation expense for awards with market conditions is recognized over the derived service period, or sooner, if the market condition is achieved. Previously recognized expense for awards with market conditions will never be reversed even if the market conditions are never achieved. We recognize forfeitures of share-based compensation awards as they occur. Share-based compensation expense is recognized as part of the cost of sales and selling, general and administrative expenses in our consolidated statements of operations.

Net Earnings (Loss) per Share

Basic net earnings (loss) per share is computed by dividing the net earnings (loss) by the weighted-average number of common shares outstanding for the period, without consideration for potentially dilutive securities. Diluted net earnings (loss) per share is computed by dividing the net earnings (loss) by the weighted-average number of shares of common stock and dilutive common stock equivalents outstanding for the period determined using the treasury-stock and if-converted methods. Dilutive common stock equivalents are comprised of unvested restricted common stock and warrants.

For the year ended December 31, 2019, the Class A common basic and diluted net loss per share was $(0.17), the Class A common basic and diluted weighted-average shares were 34,525, the Class B common basic and diluted net loss per share was $(0.17), and the Class B common basic and diluted weighted-average shares were 3,204.

For the period of net loss, potentially dilutive securities are not included in the calculation of diluted net (loss) earnings per share because to do so would be anti-dilutive. Potentially dilutive securities are as follows (in common stock equivalent shares, in thousands):


	Year Ended December 31,
	2021	2020
Unvested restricted stock	520	60
Common stock warrants, exercisable at $1.665/sh.	400	901
Total	920	961

Other Comprehensive Income (Loss)

Our functional currency is the U.S. Dollar. For one of our wholly-owned subsidiaries, the functional currency is the local currency. For this subsidiary, the translation of its foreign currency into U.S. Dollars is performed for assets and liabilities using current foreign currency exchange rates in effect at the balance sheet date and for revenue and expense accounts using average foreign currency exchange rates during the periods presented. Translation gains and losses are included in stockholders’ equity (deficit) as a component of accumulated other comprehensive income.

Financial Instruments

We use various methods and assumptions to estimate the fair value of our financial instruments. Due to their short-term nature, the carrying value of cash and cash equivalents, accounts receivable and accounts payable approximates fair value. The fair value of long-term debt is based on the discounted cash flows for similar term borrowings based on market prices for the same or similar issues.

Fair value estimates are made at a specific point in time, based on relevant market information. These estimates are subjective in nature and involve matters of judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Recent Accounting Pronouncements Adopted

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which introduces new guidance for estimating credit losses on certain types of financial instruments based on expected losses and the timing of the recognition of such losses. This standard was effective for interim and annual reporting periods beginning after December 15, 2019, which made this standard effective for us on January 1, 2020. The adoption of this ASU did not have a material impact on our consolidated financial position, results of operations and cash flows.

In January 2017, the FASB issued ASU 2017-4, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which eliminates Step 2 of the current goodwill impairment test that requires a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment loss instead is measured at the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the recorded amount of goodwill. The provisions of this ASU were effective for years beginning after December 15, 2019, which made this standard effective for us on January 1, 2020. The adoption of this ASU did not have a material impact on our consolidated financial position, results of operations and cash flows.

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement”, which modifies the disclosure requirement for fair value measurement under ASC 820 to improve the effectiveness of such disclosures. Those modifications include the removal and addition of disclosure requirements as well as clarifying specific disclosure requirements. This standard was effective for interim and annual reporting periods beginning after December 15, 2019, which made this standard effective for us on January 1, 2020. The adoption of this ASU did not have a material impact on our consolidated financial position, results of operations and cash flows.

In August 2018, the FASB issued ASU 2018‑15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This standard was effective for interim and annual reporting periods beginning after December 15, 2019, which made this standard effective for us on January 1, 2020. The adoption of this ASU did not have a material impact on our consolidated financial position, results of operations and cash flows.

In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The ASU also clarifies and amends existing guidance to improve consistent application. This standard was effective for reporting periods beginning after December 15, 2020, which made this standard effective for us on January 1, 2021. The adoption of this ASU did not have a material impact on our consolidated financial position, results of operations and cash flows.

In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which provides optional expedients and exceptions for a limited period of time to ease the potential burden in accounting for contracts, hedging relationship and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This amendment is effective for all entities as of March 12, 2020 through December 31, 2022. The adoption of this ASU did not have a material impact on our consolidated financial position, results of operations or cash flows.

Recent Accounting Pronouncements Not Yet Adopted

Revenue

12 Months Ended

Dec. 31, 2021

Revenue Recognition and Deferred Revenue [Abstract]

Revenue

Revenue Recognition

We account for revenue in accordance with ASC Topic 606, “Revenue from Contracts with Customers.” The unit of account in ASC 606 is a performance obligation, which is a promise in a contract with a customer to transfer a good or service to the customer. ASC 606 prescribes a five-step model for recognizing revenue that includes identifying the contract with the customer, determining the performance obligation(s), determining the transaction price, allocating the transaction price to the performance obligation(s), and recognizing revenue as the performance obligations are satisfied. Timing of the satisfaction of performance obligations varies across our businesses due to our diverse product and service mix, customer base, and contractual terms. Significant judgment can be required in determining certain performance obligations, and these determinations could change the amount of revenue and profit recorded in a given period. Our contracts may have a single performance obligation or multiple performance obligations. When there are multiple performance obligations within a contract, we allocate the transaction price, net of any discounts, to each performance obligation based on the standalone selling price of the product or service underlying each performance obligation. Our contracts with the U.S. Government are generally subject to Federal Acquisition Regulation ("FAR") and the price is typically based on estimated or actual costs plus a reasonable profit margin. As such, the standalone selling price of products or services in our contracts with the U.S. Government are typically equal to the selling price stated in the contract. For non-U.S. Government contracts with multiple performance obligations, standalone selling price is the observable price of a good or service when Telos sells that good or service separately in similar circumstances and to similar customers.

Contracts are routinely and often modified to account for changes in contract requirements, specifications, quantities, or price. Depending on the nature of the modification, we determine whether to account for the modification as an adjustment to the existing contract or as a new contract. Generally, modifications are not distinct from the existing contract due to the significant interrelatedness of the performance obligations and are therefore accounted for as an adjustment to the existing contract, and recognized as a cumulative adjustment to revenue (as either an increase or reduction of revenue) based on the modification’s effect on progress toward completion of a performance obligation.

The majority of our revenue is recognized over time, as control is transferred continuously to our customers who receive and consume benefits as we perform, and is classified as services revenue. Revenue transferred to customers over time accounted for 91%, 90% and 90% of our revenue for the years ended December 31, 2021, 2020 and 2019. All of our business groups earn services revenue under a variety of contract types, including time and materials, firm-fixed price, firm fixed price level of effort, and cost-plus fixed fee contract types, which may include variable consideration as discussed further below.

Revenue is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, material, subcontractor costs and indirect expenses. This continuous transfer of control to the customer is supported by clauses in our contracts with U.S. government customers whereby the customer may terminate a contract for convenience and then pay for costs incurred plus a profit, at which time the customer would take control of any work in process. For non-U.S. government contracts where we perform as a subcontractor and our order includes similar FAR provisions as the prime contractor’s order from the U.S. government, continuous transfer of control is likewise supported by such provisions. For other non-U.S. government customers, continuous transfer of control to such customers is also supported due to general terms in our contracts and rights to recover damages which would include, among other potential damages, the right to payment for our work performed to date plus a reasonable profit.

Revenue that is recognized at a point in time is for the sale of software licenses in our Information Assurance / Xacta and Secure Communications business groups and for the sale of resold products in Telos ID and Secure Networks, and is classified as product revenue. Revenue transferred to customers at a point in time accounted for 9%, 10% and 10% of our revenue for the years ended December 31, 2021, 2020 and 2019. Revenue on these contracts is recognized when the customer obtains control of the transferred product or service, which is generally upon delivery of the product to the customer for their use, due to us maintaining control of the product until that point. Orders for the sale of software licenses may contain multiple performance obligations, such as maintenance, training, or consulting services, which are typically delivered over time, consistent with the transfer of control disclosed above for the provision of services. When an order contains multiple performance obligations, we allocate the transaction price to the performance obligations based on the standalone selling price of the product or service underlying each performance obligation. The standalone selling price represents the amount we would sell the product or service to a customer on a standalone basis.

For certain performance obligation where we are not primarily responsible for fulfilling the promise to provide the goods or services to the customer, do not have inventory risk and have limited discretion in establishing the price for the goods or services, we recognize revenue on a net basis.

Contract Estimates

Due to the transfer of control over time, revenue is recognized based on progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the performance obligations. We generally use the cost-to-cost measure of progress on a proportional performance basis for our contracts because it best depicts the transfer of control to the customer, which occurs as we incur costs on our contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. Due to the nature of the work required to be performed on certain of our performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables and requires significant judgment. Contract estimates are based on various assumptions, including labor and subcontractor costs, materials and other direct costs and the complexity of the work to be performed. A significant change in one or more of these estimates could affect the profitability of our contracts. We review and update our contract-related estimates regularly and recognize adjustments in estimated profit on contracts on a cumulative catch-up basis, which may result in an adjustment increasing or decreasing revenue to date on a contract in a particular period that the adjustment is identified. Revenue and profit in future periods of contract performance are recognized using the adjusted estimate.

Our contracts may include various types of variable consideration, such as claims (for instance, indirect rate or other equitable adjustments) or incentive fees. We include estimated amounts in the transaction price based on all of the information available to us, including historical information and future estimations, and to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when any uncertainty associated with the variable consideration is resolved. We have revised and re-submitted several years of incurred cost submissions reflecting certain indirect rate structure changes as a result of regular DCAA audits of incurred cost submissions. This resulted in signed final rate agreement letters for fiscal years 2014 to 2016 and conformed incurred cost submissions for 2017 to 2020. We evaluated the resulting changes to revenue under the applicable cost-plus fixed fee contracts for the years 2014 to 2016 as variable consideration, and determined the most likely amount to which we expect to be entitled, to the extent that no constraint exists that would preclude recognizing this revenue or result in a significant reversal of cumulative revenue recognized. We included these estimated amounts of variable consideration in the transaction price and as performance on these contracts is complete, we have recognized revenue of $0.2 million during the year ended December 31, 2021.

We provide for anticipated losses on contracts during the period when the loss is determined by recording an expense for the total expected costs that exceeds the total estimated revenue for a performance obligation. We recorded an immaterial contract loss during the year ended December 31, 2021.

Historically, most of our contracts do not include award or incentive fees. For incentive fees, we would include such fees in the transaction price to the extent we could reasonably estimate the amount of the fee. With limited historical experience, we have not included any revenue related to incentive fees in our estimated transaction prices. We may include in our contract estimates additional revenue for submitted contract modifications or claims against the customer when we believe we have an enforceable right to the modification or claim, the amount can be estimated reliably and its realization is probable. We consider the contractual/legal basis for the claim (in particular FAR provisions), the facts and circumstances around any additional costs incurred, the reasonableness of those costs and the objective evidence available to support such claims.

For our contracts that have an original duration of one year or less, we use the practical expedient applicable to such contracts and do not consider the time value of money. We capitalize sales commissions related to proprietary software and related services that are directly tied to sales. We do not elect the practical expedient to expense as incurred the incremental costs of obtaining a contract if the amortization period would have been one year or less. For the sales commissions that are capitalized, we amortize the asset over the expected customer life, which is based on recent and historical data.

As discussed above, we have identified two (2) reportable segments. We treat sales to U.S. customers as sales within the U.S. regardless of where the services are performed. Substantially most of our revenues are generated from U.S. customers, while international customers are de minimus, as such the financial information by geographic location is not presented.

The following tables disclose revenue disaggregated by several categories for the years ended December 31, 2021, 2020, and 2019 (in thousands).


Revenue Type	2021		2020		2019
Security Solutions
Services	$	102,649	$	100,422	$	86,286
Products	20,885		16,890		15,637
	123,534		117,312		101,923
Secure Networks
Services	118,899		60,758		57,295
Products	—		1,847		—
	118,899		62,605		57,295
Total revenue	$	242,433	$	179,917	$	159,218


Customer Type	2021		2020		2019
Security Solutions
Federal	$	114,159	$	109,410	$	92,336
State & Local, and Commercial	9,375		7,902		9,587
	123,534		117,312		101,923
Secure Networks
Federal	118,717		62,267		56,921
State & Local, and Commercial	182		338		374
	118,899		62,605		57,295
Total revenue	$	242,433	$	179,917	$	159,218


Contract Type	2021		2020		2019
Security Solutions
Firm fixed-price	$	104,534	$	98,379	$	80,316
Time-and-materials	12,433		12,617		14,100
Cost plus fixed fee	6,567		6,316		7,507
	123,534		117,312		$	101,923
Secure Networks
Firm fixed-price	107,770		53,324		51,313
Time-and-materials	28		838		469
Cost plus fixed fee	11,101		8,443		5,513
	118,899		62,605		$	57,295
Total revenue	$	242,433	$	179,917	$	159,218

Revenue resulting from contracts and subcontracts with the U.S. government accounted for 96.1%, 95.4%, and 93.7% of consolidated revenue in 2021, 2020, and 2019, respectively. As our primary customer base includes agencies of the U.S. government, we have a concentration of credit risk associated with our accounts receivable, as 97.3% of our billed accounts receivable were directly with U.S. government customers. While we acknowledge the potentially material and adverse risk of such a significant concentration of credit risk, our past experience of collecting substantially all of such receivables provide us with an informed basis that such risk, if any, is manageable. We perform ongoing credit evaluations of all of our customers and generally do not require collateral or other guarantee from our customers. We maintain allowances for potential losses.

The percentage of total revenue for the U.S. government, its agencies and other customers comprising more than 10% of total revenue is as follows:


	2021		2020		2019
U.S. Department of Defense	74	%	65	%	65	%
Civilian	22	%	30	%	29	%

Contract Balances

Performance obligations are satisfied either over time or at a point in time and are typically invoiced to the customers as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. Generally, revenue recognition occurs before billing, resulting in contract assets. These contract assets are referred to as unbilled receivables and are reported within accounts receivable, net of reserve on our consolidated balance sheets.

Contract liabilities are payments received in advance and milestone payments from our customers on selected contracts that exceed revenue earned to date, resulting in contract liabilities. Contract liabilities typically are not considered a significant financing component because they are generally satisfied within one year and are used to meet working capital demands that can be higher in the early stages of a contract. Contract liabilities are reported on our consolidated balance sheets on a net contract basis at the end of each reporting period. As of December 31, 2021 and 2020, the contract liabilities primarily related to product support services.

Contract balances for the periods presented are as follow (in thousands):


	December 31,
	2021		2020		2019
Contract assets (unbilled receivables)	$	41,374	$	19,161	$	16,745
Contract liabilities	$	6,381	$	5,654	$	6,337

The significant changes in the Company's contract assets and contract liabilities during the current period were primarily the result of the timing differences between the Company's performance, invoicing and customer payments. For the years ended December 31, 2021, 2020 and 2019, the amount of revenue recognized during the year that was included in the opening contract liabilities balance was $4.3 million, $5.3 million, and $4.2 million, respectively.


	December 31,
	2021		2020
Remaining performance obligation (funded backlog)	$	123,479	$	127,735

We expect to recognize approximately 85.8% of our remaining performance obligations as revenue in 2022, and approximately 14.1% by 2023, with the remainder recognized thereafter.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 606
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Accounts Receivables

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Accounts Receivables

Billed receivables are amounts billed and due from our customers and are reported within accounts receivable, net of reserve on the consolidated balance sheets. The portion of the payments retained by the customer until final contract settlement is not considered a significant financing component due to the intent of the retainage being the customer’s protection with respect to full and final performance under the contract.

The components of accounts receivable, net consisted of the following (in thousands):


	December 31,
	2021		2020
Billed accounts receivable	$	18,586	$	12,060
Unbilled receivables	41,374		19,161
Allowance for doubtful accounts	(116)		(308)
Accounts receivable, net	$	59,844	$	30,913

The activities in the allowance for doubtful accounts are set forth below (in thousands):


	Balance Beginning of Year		Bad Debt Expenses (1)		Write-offs / Recoveries (2)		Balance End of Year

Year Ended December 31, 2021	$	308	$	7	$	(199)	$	116
Year Ended December 31, 2020	$	720	$	(412)	$	—	$	308
Year Ended December 31, 2019	$	306	$	414	$	—	$	720

(1)Accounts receivable reserves and reversal of allowance for subsequent collections, net

(2)Accounts receivable written-off and subsequent recoveries, net

On July 15, 2016, the Company entered into an accounts receivable purchase agreement under which the Company could sell certain accounts receivable (balance not to exceed $10 million) to a third party, or the “Factor”, without recourse to the Company, with an availability period through June 30, 2022. There were no accounts receivable sold during 2021 and 2020, respectively. As of December 31, 2021 and 2020, there were no outstanding sold accounts receivable.

Acquisition	12 Months Ended
Acquisition	Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]
Acquisition	Acquisition On July 30, 2021, the Company acquired the assets of Diamond Fortress Technologies ("DFT") and wholly-owned subsidiaries for a total purchase consideration of $6.7 million, inclusive of $0.3 million related to a pre-existing contractual arrangement with DFT. Upon closing, $5.9 million of cash was paid with an additional $0.6 million payable to DFT 18 months after the close date (the "holdback"). The holdback amount has been discounted to its present value of $0.5 million using a discount rate relevant to the acquisition. The acquisition adds several new patents to the Company’s library of biometric and digital identity intellectual property. The addition of contactless biometrics technology will enable the Company to better serve the needs of organizations in existing and new markets. The acquisition of DFT has been accounted for under U.S. GAAP using the acquisition method of accounting. The total purchase consideration of $6.7 million has been allocated among the assets acquired at their fair value at acquisition date. The Company recognized $3.7 million of intangible assets and $3.0 million of goodwill, which is housed in the Telos ID reporting unit, part of the Security Solutions operating segment. Goodwill is primarily attributable to excess of the purchase price over the acquired identifiable net tangible and intangible assets. The acquired intangible assets will be amortized on a straight-line basis over 3 - 8 years. The acquisition was considered an asset purchase for tax purposes and the recognized goodwill is deductible for tax purposes. The results of DFT operations have been included in our consolidated statements of operations from the acquisition date, and are not material for the year ended December 31, 2021. Acquisition-related costs were immaterial and have been expensed as incurred. The pro-forma financial information has not been presented for this acquisition as the impact to our consolidated financial statements is not material.

Goodwill

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The carrying value of the goodwill is as follows:


	Security Solutions		Secure Networks		Total
Balance at December 31, 2020	$	—	$	14,916	$	14,916
Acquired goodwill	3,006		—		3,006
Balance at December 31, 2021	$	3,006	$	14,916	$	17,922

As discussed in Note 1 - Overview and Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements, we reorganized our segment reporting in the fourth quarter of 2021 to align with how our CODM currently oversees the business, allocates resources and evaluates operating performance. As a result of the segment reorganization, we reported two operating and reportable segments: Security Solutions and Secure Networks.

The Security Solution segment consists of three reporting units: Secure Communications, Information Assurance / Xacta and Telos ID; while the Secure Networks segment also became its own reporting unit for purposes of testing goodwill.

The existing goodwill reported from prior years was previously identified under the Cyber Operations and Defense reporting unit, which was comprised of Information Assurance / Xacta and Secure Networks. We determined that the goodwill balance was specifically related to an acquisition associated within the Secure Networks reporting unit; therefore, the previous goodwill balance was allocated entirely under our updated reporting unit structure to Secure Networks. Our goodwill from the recent DFT acquisition is housed within the Telos ID reporting unit, which is part of the Security Solutions operating segment.

The net assets attributable to the reporting units are determined based upon the estimated assets and liabilities attributable to the reporting units in deriving its free cash flows. In addition, the estimate of the total fair value of our reporting units is compared to the market capitalization of the Company.

Goodwill is subject to annual impairment tests and in the interim if triggering events are present before the annual tests, we will assess impairment. At year-end, the Company performed its annual impairment test of goodwill for all of the reporting units. Based on our qualitative assessment, we concluded that it was more-likely-than-not that the estimated fair value of the reporting units exceeded its carrying value. For the years ended December 31, 2021, 2020 and 2019, no impairment charges were taken.

Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible assets with finite lives are amortized over the following estimated useful lives:


						Estimated Useful Life
Acquired technology						8 years
Customer relationship						3 years
Software development costs						2 years

Intangible assets, all of which are finite-lived, consists of the following (in thousands):


	December 31, 2021						December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
Acquired technology	$	3,630	$	(256)	$	3,374	$	—	$	—	$	—
Customer relationships	40		(5)		35		—		—		—
Software development costs	22,222		(6,432)		15,790		12,253		(4,833)		7,420
	$	25,892	$	(6,693)	$	19,199	$	12,253	$	(4,833)	$	7,420

Amortization expense was $1.9 million, $1.7 million, and $1.8 million for the years ended December 31, 2021, 2020, and 2019, respectively.

The expected future annual amortization expense of intangible assets as of December 31, 2021 is presented below (in thousands):


Years Ending December 31,	Amount
2022	$	6,820
2023	7,657
2024	2,460
2025	703
2026	454
2027 and thereafter	1,105
Total	$	19,199

Debt Obligations	12 Months Ended
Debt Obligations	Dec. 31, 2021
Debt Disclosure [Abstract]
Debt Obligations	Debt Obligations Enlightenment Capital Credit Agreement On January 25, 2017, we entered into a Credit Agreement (the "Credit Agreement") with Enlightenment Capital Solutions Fund II, L.P., as agent (the "Agent") and the lenders party thereto (the "Lenders") (together referenced as “EnCap”). The Credit Agreement provided for an $11 million senior term loan (the "Loan") with a maturity date of January 25, 2022, subject to acceleration in the event of customary events of default. All borrowings under the Credit Agreement accrued interest at the rate of 13.0% per annum. In connection with the Credit Agreement, on January 25, 2017, the Company issued warrants (each, a "Warrant") to the Agent and certain of the Lenders representing in the aggregate the right to purchase in accordance with their terms 900,970 shares of the Class A Common Stock of the Company, no par value per share, which was equivalent to approximately 2.5% of the common equity interests of the Company on a fully diluted basis. The exercise price as $1.665 per share and each Warrant would expire on January 25, 2027. The value of the warrants was determined to be de minimis and no value was allocated to them on a relative fair value basis in accounting for the debt instrument. The Credit Agreement also included an $825,000 exit fee, which was payable upon any repayment or prepayment of the loan. This amount had been included in the total principal due and treated as an unamortized discount on the debt, which would be amortized over the term of the loan, using the effective interest method at a rate of 15.0%. We incurred fees and transaction costs of approximately $374,000 related to the issuance of the Credit Agreement, which are being amortized over the life of the Credit Agreement. On March 30, 2018, the Credit Agreement was further amended (the “Third Amendment”) to add a minimum revenue covenant and a net working capital covenant. In consideration of these amendments, the interest rate on the loan was increased by 1%, which would revert back to the original rate upon achievement of two consecutive quarters of a specified fixed charge coverage ratio as defined in the agreement. The increase in interest expense had been paid in cash. Contemporaneously with the Third Amendment, Mr. John B. Wood agreed to transfer 50,000 shares of the Company’s Class A Common Stock owned by him to EnCap. On July 19, 2019, we entered into the Fourth Amendment to Credit Agreement and Waiver; First Amendment to Fee Letter (“Fourth Amendment”) to amend the Credit Agreement. As a result of the Fourth Amendment, several terms of the Credit Agreement were amended, including (but not limited to) the following: •The Company borrowed an additional $5 million from the Lenders, increasing the total amount of the principal to $16 million. •The maturity date of the Credit Agreement was amended from January 25, 2022 to January 15, 2021. •The prepayment price was amended as follows: (a) from January 26, 2019 through January 25, 2020, the prepayment price was 102% of the principal amount, (b) from January 26, 2020 through October 14, 2020, the prepayment price was 101% of the principal amount, and (c) from October 15, 2020 to the maturity date, the prepayment price would be at par. However, the prepayment price for the additional $5 million loan attributable to the Fourth Amendment would be at par. •The borrowing under the Credit Agreement continued to be collateralized by substantially all of the Company’s assets including inventory, equipment and accounts receivable. •The Company paid the Agent a fee of $110,000 in connection with the Fourth Amendment and incurred immaterial third-party transaction costs which were expensed during the period. •The exit fee was increased from $825,000 to $1,200,000. The exit fee had been included in the total principal due and treated as an unamortized discount on the debt, which was amortized over the term of the loan using the effective interest method at a rate of 17.3% over the remaining term of the loan. On March 26, 2020, the Credit Agreement was amended (the “Fifth Amendment”) to modify the financial covenants and to update the previously agreed-upon definition of certain financial covenants, specifically the amount of Capital Expenditures to be included in the measurement of the covenants. The Fifth Amendment provided for four quarterly maturity date extensions, which would increase the Exit Fee payable under the Credit Agreement by $250,000 for each quarterly maturity date extension elected, for a total of $1 million increase to the Exit Fee were all four of the maturity date extensions to be elected. The Company paid EnCap an amendment fee of $100,000 and out-of-pocket costs and expenses in consideration for the Fifth Amendment. On November 24, 2020, upon the closing of the IPO, the Company paid a total of $17.4 million which paid off the Credit Agreement in full, including an exit fee of $1.2 million, accrued interest of $138,000, and legal fees of $13,000. As a result, we recognized a loss on debt extinguishment of $138,000 presented as a part of the non-operating expense in the consolidated statements of operations. We incurred interest expenses in the amount of $2.7 million and $2.2 million for the years ended December 31, 2020 and 2019, respectively, under the Credit Agreement. On April 19, 2021, the Company entered into multiple Redemption Agreements and Warrant Redemption and Cancellation Agreements (collectively the "Repurchase Agreement") with EnCap and certain related funds that held the warrants to purchase 900,970 shares of the Company's common stock in addition to 39,682 shares of the Company's common stock. Under the Repurchase Agreement, the Company agreed to repurchase the outstanding warrants for $26.9 million and common stock for $1.3 million. The average price of the warrants and common stock repurchased were $29.85 per share and $31.51 per share, respectively. Upon settlement, the repurchased warrants were retired. The Company reduced common stock for the $0.001 par value of the shares repurchased, with the excess purchase price over par value recorded as a reduction of additional paid-in-capital ("APIC"). As a result of the repurchases, the Company recognized these amounts as a reduction to APIC. Subordinated Debt On March 31, 2015, the Company entered into Subordinated Loan Agreements and Subordinated Promissory Notes (“Porter Notes”) with affiliated entities of Mr. John R. C. Porter (together referenced as “Porter”). Mr. Porter and Toxford Corporation, of which Mr. Porter was the sole shareholder, owned 35.0% of our Class A Common Stock. Under the terms of the Porter Notes, Porter lent the Company $2.5 million on or about March 31, 2015. Telos also entered into Subordination and Intercreditor Agreements (the “Subordination Agreements”) with Porter and a prior senior lender, in which the Porter Notes were fully subordinated to the financing provided by that senior lender, and payments under the Porter Notes were permitted only if certain conditions were met. According to the original terms of the Porter Notes, the outstanding principal sum bore interest at the fixed rate of twelve percent (12%) per annum, which would be payable in arrears in cash on the 20th day of each May, August, November and February, with the first interest payment date due on August 20, 2015. The Porter Notes did not call for amortization payments and were unsecured. The Porter Notes, in whole or in part, were permitted to be repaid at any time without premium or penalty. The unpaid principal, together with interest, was originally due and payable in full on July 1, 2017. On April 18, 2017, we amended and restated the Porter Notes to reduce the interest rate from twelve percent (12%) to six percent (6%) per annum, to be accrued, and extended the maturity date from July 1, 2017 to July 25, 2022. Telos also entered into Intercreditor Agreements with Porter and EnCap, in which the Porter Notes were fully subordinated to the Credit Agreement and any subsequent senior lenders, and payments under the Porter Notes were permitted only if certain conditions were met. All other terms remained in full force and effect. We incurred interest expense in the amount of $319,000 and $330,000 for 2020 and 2019, respectively, on the Porter Notes. On November 23, 2020, upon the closing of the IPO, the Porter Notes were paid in full.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Exchangeable Redeemable Preferred Stock Conversion	12 Months Ended
Exchangeable Redeemable Preferred Stock Conversion	Dec. 31, 2021
Temporary Equity Disclosure [Abstract]
Exchangeable Redeemable Preferred Stock Conversion	Exchangeable Redeemable Preferred Stock Conversion Public Preferred Stock A maximum of 6,000,000 shares of the Public Preferred Stock, par value $0.01 per share, had been authorized for issuance. We initially issued 2,858,723 shares of the Public Preferred Stock pursuant to the acquisition of the Company during fiscal year 1990. The Public Preferred Stock was recorded at fair value on the date of original issue, November 21, 1989, and we made periodic accretions under the interest method of the excess of the redemption value over the recorded value. We adjusted our estimate of accrued accretion in the amount of $1.5 million in the second quarter of 2006. The Public Preferred Stock was fully accreted as of December 2008. We declared stock dividends totaling 736,863 shares in 1990 and 1991. Since 1991, no other dividends, in stock or cash, were declared. In November 1998, we retired 410,000 shares of the Public Preferred Stock. The total number of shares issued and outstanding at December 31, 2019, was 3,185,586. The Public Preferred Stock was quoted as “TLSRP” on the OTCQB marketplace and the OTC Bulletin Board. We paid dividends on the Public Preferred Stock when and if declared by the Board of Directors. The Public Preferred Stock accrued a semi-annual dividend at the annual rate of 12% ($1.20) per share, based on the liquidation preference of $10 per share, and was fully cumulative. Dividends in additional shares of the Public Preferred Stock for 1990 and 1991 were paid at the rate of 6% per share for each $0.60 of such dividends not paid in cash. We accrued dividends on the Public Preferred Stock of $3.4 million and $3.8 million for the years ended December 31, 2020, and 2019, respectively, which was recorded as interest expense. Prior to the effective date of ASC 480 on July 1, 2003, such dividends were charged to stockholders’ accumulated deficit. Upon the closing of the IPO, which constituted a qualified initial public offering for the purposes of the terms of the Exchangeable Redeemable Preferred Stock, each issued and outstanding share of Exchangeable Redeemable Preferred Stock automatically was converted (the “ERPS Conversion”) into the right to receive (i) an amount of cash equal to (I) the ERPS Liquidation Value; multiplied by (II) 0.90; multiplied by (III) 0.85 and (ii) that number of shares of common stock (valued at the initial offering price to the public) equal to (I) the ERPS Liquidation Value; multiplied by (II) 0.90; multiplied by (III) 0.15. No fractional shares of common stock, however, were issued upon an ERPS Conversion Event but, in lieu thereof, the holder was entitled to receive an amount of cash equal to the fair market value of a share of common stock (valued at the initial offering price to the public) at the time of such ERPS Conversion Event multiplied by such fractional amount (rounded to the nearest cent). “ERPS Liquidation Value” means, per each share of Exchangeable Redeemable Preferred Stock, $10 together with all accrued and unpaid dividends (whether or not earned or declared) thereon calculated as of the actual date of an ERPS Conversion Event without interest, which was approximately $142.3 million as of November 19, 2020. All shares of common stock issued upon an ERPS Conversion were validly issued, fully paid and non-assessable. On November 23, 2020, holders of Exchangeable Redeemable Preferred Stock received $108.9 million in cash and 1.1 million shares of our common stock at $17 per share for a total value of $19.2 million in connection with the ERPS Conversion. The difference in the redemption value of the ERPS and the carrying value has been accounted for as a gain on extinguishment of debt in accordance with ASC 470 and ASC 480. Approximately $0.2 million of costs directly attributable to this redemption were applied against the gain, resulting in a net gain of $14.0 million.

Non-Controlling Interests/Purchase of Telos ID

12 Months Ended

Dec. 31, 2021

Noncontrolling Interest [Abstract]

Non-Controlling Interests/Purchase of Telos ID

Non-Controlling Interests / Purchase of Telos ID

On April 11, 2007, Telos ID was formed as a limited liability company under the Delaware Limited Liability Company Act. We contributed substantially all of the assets of our Telos ID Enterprise business line and assigned our rights to perform under our U.S. government contract with the Defense Manpower Data Center to Telos ID at their stated book values. The net book value of assets we contributed totaled $17,000. Until April 19, 2007, we owned 99.999% of the membership interests of Telos ID and Hoya ID Fund A, LLC ("Hoya") owned 0.001% of the membership interests of Telos ID. On April 20, 2007, we sold an additional 39.999% of the membership interests to Hoya in exchange for $6.0 million in cash consideration. In accordance with ASC 505, “Equity,” we recognized a gain of $5.8 million. As a result, we owned 60% of Telos ID, and therefore continued to account for the investment in Telos ID using the consolidation method.

On December 24, 2014, Hoya acquired from the Company an additional ten percent (10%) membership interest in Telos ID in exchange for $5.0 million (the “2014 Transaction”). In connection with the 2014 Transaction, the Company and Hoya entered into the Second Amended and Restated Operating Agreement (the “Operating Agreement”) governing the business, allocation of profits and losses and management of Telos ID. Under the Operating Agreement, Telos ID was managed by a board of directors comprised of five members (the “Telos ID Board”). The Operating Agreement provided for two classes of membership units, Class A (owned by the Company) and Class B (owned by Hoya). The Class A member (the Company) owned 50% of Telos ID, was entitled to receive 50% of the profits of Telos ID, and could appoint three members of the Telos ID Board. The Class B member (Hoya) owned 50% of Telos ID, was entitled to receive 50% of the profits of Telos ID, and could appoint two members of the Telos ID Board. The 2014 Transaction continued to be accounted for using the consolidation method and the Class B member was the non-controlling interest.

On October 5, 2020, we entered into a Membership Interest Purchase Agreement between the Company and Hoya to purchase all of the Class B Units of Telos ID (“Telos ID Units”) owned by Hoya (the “Telos ID Purchase”). Upon the closing of the Telos ID Purchase, Telos ID became our wholly-owned subsidiary. On November 23, 2020, the Telos ID Purchase was consummated with the Company transferring $30.0 million in cash and issuing 7.3 million shares of our common stock at $20.39 per share (which totals approximately $148.40 million); the total consideration transferred to Hoya was $178.40 million. As part of the common stock issuance, the Company recognized a credit to APIC of $148.40 million. The Company further recognized a debit to APIC of $173.90 million as part of the elimination of Hoya’s non-controlling interest in Telos ID. The net impact to APIC associated with the acquisition of the additional 50% interest in Telos ID was a debit of $25.50 million.

As a result of the 2014 Transaction, the Class A and Class B members each owned 50% of Telos ID, as mentioned above, and as such, each was allocated 50% of the profits, which was $5.2 million, and $4.3 million for 2020, and 2019, respectively. The Class B member was the non-controlling interest.

Distributions were made to the members only when and to the extent determined by Telos ID’s Board of Directors, in accordance with the Operating Agreement. During the years ended December 31, 2020, and 2019, the Class B member received a total of $2.8 million, and $2.4 million, respectively, of such distributions. The Class B member also received a final distribution of $2.4 million in January 2021, which was accrued and presented in accounts payable and other accrued liabilities in the consolidated balance sheets as of December 31, 2020.

The following table details the changes in non-controlling interest for the years ended December 31, 2020, and 2019 (in thousands):


	2020		2019
Non-controlling interest, beginning of period	$	4,514	$	2,621
Net income	5,154		4,264
Distributions	(5,179)		(2,371)
Sale of 50% membership interest	(4,489)		—
Non-controlling interest, end of period	$	—	$	4,514

Stockholders' Equity

12 Months Ended

Dec. 31, 2021

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Authorized Stock

Our authorized capital stock consists of 250,000,000 shares of common stock, $0.001 par value per share, and 10,000,000 shares of preferred stock, $0.01 par value per share. Prior to our Second Amended and Restated Articles of Incorporation, which were effective November 12, 2020, the relative rights, preferences, and limitations of the Class A common stock and the Class B common stock were in all respects identical. The holders of the common stock had one vote for each share of common stock held. Our Second Amended and Restated Articles of Incorporation authorized our Board of Directors to classify or reclassify shares of our stock in one or more classes or series, to cause the issuance of additional shares of our stock, and to amend our charter without stockholder approval to increase or decrease the number of shares of stock that we have authority to issue.

On November 12, 2020, we filed Articles of Amendment (the “Articles”) with the State Department of Assessments and Taxation of the State of Maryland, effective as of the same date (the “Effective Time”). The Articles amended the Company’s charter to effect a reverse stock split such that (1) every 1.259446 shares of Class A Common Stock that were issued and outstanding immediately prior to the Effective Time were changed into one issued and outstanding share of Class A Common Stock, and (2) every 1.259446 shares of Class B Common Stock that were issued and outstanding immediately prior to the Effective Time were changed into one issued and outstanding share of Class B Common Stock. Also on November 12, 2020, we filed the Second Articles of Amendment and Restatement (the “Second Amended Articles”) with the State Department of Assessments and Taxation of the State of Maryland, effective as of the same date (the “Effective Time”). The Second Amended Articles amended the Company’s charter to effect a conversion of each share of the Class B Common Stock that was issued and outstanding immediately prior to the Effective Time into one fully paid and non-assessable share of Class A Common Stock. From and after the Effective Time, certificates representing the Class B Common Stock now represent the number of shares of Class A Common Stock in which such Class B Common Stock was converted. Also, at the Effective Time, the Class A Common Stock was renamed and re-designated as common stock, par value $0.001 per share, of the Corporation.

Shares Issued and Outstanding

As of December 31, 2021 and 2020, there were 66,767,450 and 64,625,071 shares of common stock issued and outstanding, respectively. There were no shares of preferred stock issued and outstanding on either date. The changes in our shares outstanding during 2021 and 2020 resulted from shares issued during the follow-on offering and repurchased shares held by EnCap.

Shares Repurchases

Relative to the Repurchase Agreements, as disclosed under Note 7 - Debt Obligations above, the Company agreed to repurchase the 39,682 outstanding shares held by EnCap for $1.3 million on April 19, 2021.

Other Comprehensive (Loss) Income

Comprehensive (loss) income includes changes in equity during a period from non-owner sources. Accumulated other comprehensive (loss) income included within stockholders’ equity consists of the following (in thousands):


	Year Ended December 31,
	2021		2020
Cumulative foreign currency translation loss	$	(134)	$	(63)
Cumulative actuarial gain on pension liability adjustment in Teloworks	107		107
Accumulated other comprehensive (loss) income	$	(27)	$	44

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Section 50
-Paragraph 13
-Subparagraph (b)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI http://asc.fasb.org/topic&trid=2208762

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496180-112644

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Employee Benefit Plan	12 Months Ended
Employee Benefit Plan	Dec. 31, 2021
Retirement Benefits [Abstract]
Employee Benefit Plan	Employee Benefit Plan Telos sponsors a defined contribution employee savings plan (the “Plan”) under which substantially all full-time employees are eligible to participate. As of December 31, 2021, the Plan held 1,031,718 shares of Telos common stock. We match one-half of employee contributions to the Plan up to a maximum of 2% of such employee’s eligible annual base salary. Participant contributions vest immediately, and Telos contributions vest at the rate of 20% each year, with full vesting occurring after completion of five years of service. Our total contributions to the Plan for 2021, 2020, and 2019 were $1.1 million, $1.0 million, and $0.9 million, respectively. Additionally, Telos ID sponsors a defined contribution savings plan (the “Telos ID Plan”) under which substantially all full-time employees are eligible to participate. Telos ID matches one-half of employee contributions to the Telos ID Plan up to a maximum of 2% of such employee’s eligible annual base salary. The total 2021, 2020, and 2019 Telos ID contributions to this plan were $0.2 million, $0.2 million, and $0.2 million, respectively.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Since June 2008, we have issued restricted stock to our senior executives, directors, employees and other service providers. Such stock typically was subject to a vesting schedule as follows: 25% of the restricted stock vests immediately on the date of grant; thereafter, an additional 25% will vest on each succeeding year on the anniversary of the date of grant subject to continued employment or services. In the event of death of the employee or a change in control, as defined by the Telos Corporation 2008 Omnibus Long-Term Incentive Plan, the 2013 Omnibus Long-Term Incentive Plan, or the 2016 Omnibus Long-Term Incentive Plan, all unvested shares shall automatically vest in full. In accordance with ASC 718, we recorded immaterial compensation expense for any of the issuances as the value of the common stock was nominal, based on the deduction of our outstanding debt, capital lease obligations, and preferred stock from an estimated enterprise value, which was estimated based on discounted cash flow analysis, comparable public company analysis, and comparable transaction analysis. Additionally, we determined that a significant change in the valuation estimate for common stock would not have a significant effect on the consolidated financial statements.

In May 2017, we issued grants of 3,972,007 shares to our executive officers and employees. The shares vest according to the schedule set forth above. There were 3,948,199 shares outstanding at the beginning of 2018, and 43,649 shares were forfeited during 2018. There were no new grants in 2018. There were 3,904,550 shares outstanding at the beginning of 2019, and 11,904 shares were forfeited during 2019. There were no new grants in 2019. At the beginning of 2020 there were 3,892,646 shares outstanding and 47,616 were forfeited prior to May 2020, when the remaining 3,845,030 shares became fully vested. Upon vesting there were no remaining restrictions on these shares and they are able to be sold or disposed of, subject to any lock-up agreements subsequently entered into by certain holders of the shares in connection with the IPO of the Company’s common stock in November 2020.

In May 31, 2020, 79,361 shares were granted, with a weighted-average fair value of $14,000 at grant date. As of December 31, 2020, there were 59,521 shares of restricted stock that remained subject to vesting.

In October 2020, the Company amended the 2016 LTIP to increase the total number of shares available for issuance to 9,400,000 from 4,500,000 and extend the term to September 30, 2030. Our 2016 LTIP provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, unrestricted stock and dividend equivalent rights to our senior executives, directors, employees, and other service providers. Awards granted under the 2016 LTIP vest over the periods determined by the Board of Directors or the Compensation Committee of the Board of Directors, generally up to two to three years, and stock options granted under the 2016 LTIP expire no more than ten years after the date of grant.

Approximately 5.6 million shares of our common stock were reserved for future grants as of December 31, 2021 under the 2016 LTIP.

The following are the stock-based compensation expense incurred for the years ended December 31, 2021 and 2020 (in thousands). We do not have any stock compensation expense reported for the comparative period ended December 31, 2019.


	December 31,
	2021		2020
Cost of sales - services	$	2,640	$	—
Sales and marketing	7,189		—
Research and development	3,268		—
General and administrative	47,134		4
Total stock-based compensation expense	$	60,231	$	4

Restricted Stock Awards and Restricted Stock Unit (collectively “RSU”) Activity

The Company grants RSUs to our senior executives, directors, employees and service providers.

Service-Based RSU Awards

A summary of the awards of Service-Based RSUs that vest upon the completion of a service requirement is presented below:


	Number of Shares	Weighted- Average Grant Date Fair Value (per share)		Weighted- Average Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Unvested Balance - December 31, 2020	59,521	$	0.18	2.4	$	2,000
Granted	3,206,283	34.92		—	—
Vested	(132,020)	33.99		—	—
Forfeited	(103,176)	35.45		—	—
Unvested Balance - December 31, 2021	3,030,608	$	34.94	1.3	$	46,700

We recognized an expense of $46.8 million related to share-based compensation expense for Service-Based RSUs capable of being earned for completing a service requirement during the years ended December 31, 2021. We recorded immaterial share-based compensation expense for the comparable year ended December 31, 2020 and 2019. As of December 31, 2021, there was approximately $61.5 million of unrecognized stock-based compensation expense related to Service-Based RSUs, and this unrecognized expense is expected to be recognized over a weighted-average period of 1.3 years on a straight-line basis.

Performance-Based RSU Awards

A summary of the awards of Performance-Based RSUs that vest upon the attainment of certain price targets of the Company’s common stock is presented below:


	Number of Shares	Weighted- Average Grant Date Fair Value (per share)		Weighted- Average Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Unvested Balance - December 31, 2020	—	$	—	—	$	—
Granted	508,903	30.09		—	—
Vested	—	—		—	—
Forfeited	(16,176)	30.84		—	—
Unvested Balance - December 31, 2021	492,727	$	30.07	2.2	$	7,600

In 2021 the Company granted certain senior executives awards of Performance-Based RSUs that could settle into 458,903 shares of our common stock. The awards will vest only if, during the three-year period from the date of grant, (a) the Company’s common stock, as listed on the Nasdaq Global Market, trades at or above $42.50 per share (the “Target Price”) for 20 of 30 consecutive trading days or (b) the weighted average of the per-share price of the Company’s common stock over any 30 days consecutive trading days is at least equal to the Target Price. Further, the Company granted 50,000 shares of Performance-Based RSUs to certain employees that will fully vest upon the achievement of certain operational milestones during a three-year period from the grant date.

For the Performance-Based RSUs containing market conditions, the conditions are required to be considered when calculating the grant date fair value. In order to reflect the substantive characteristics of these awards, a Monte Carlo simulation valuation model was used to calculate the grant date fair value of such awards. Monte Carlo approaches are a class of computational algorithms that rely on repeated random sampling to compute their results. This approach allows the calculation of the value of such Performance-Based RSUs based on a large number of possible stock price path scenarios. As the Company recently completed its IPO in November 2020, expected volatility was based on the average historical stock price volatility of comparable publicly-traded companies over the performance period. The risk-free rate is based on the U.S. treasury zero-coupon issues in effect at the time of grant over the performance period. The expense for these awards is recognized over the derived service period as determined through the Monte Carlo simulation model.

Our key assumptions include a performance period ranging from 2.45 to 2.92 years, expected volatility between 57.4% - 58.8%, and a risk-free rate of 0.18%-0.29%. The fair value at the grant date and derived service periods calculated for these market condition Performance-Based RSUs were $19.12 - $30.84 and between 0.38 - 0.76 years, respectively.

We recognized an expense of $13.5 million related to share-based compensation expense for these awards of Performance-Based RSUs during the years ended December 31, 2021. As of December 31, 2021, there was approximately $1.4 million of unrecognized stock-based compensation expense related to these Performance-Based RSUs, and this unrecognized expense is expected to be recognized over a weighted-average period of 0.3 years on a straight-line basis.

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

The benefit for income taxes attributable to income from operations includes the following (in thousands):


	For the Years Ended December 31,
	2021		2020		2019
Current (benefit) provision
Federal	$	—	$	—	$	25
State	(98)		(77)		68
Total current	(98)		(77)		93

Deferred provision (benefit)
Federal	19		27		88
State	51		4		(285)
Total deferred	70		31		(197)
Total benefit	$	(28)	$	(46)	$	(104)

The provision for income taxes related to operations varies from the amount determined by applying the federal income tax statutory rate to the income or loss before income taxes. The reconciliation of these differences is as follows:


	For the Years Ended December 31,
	2021		2020		2019
Computed expected income tax provision	21.0	%	21.0	%	21.0	%
State income taxes, net of federal income tax benefit	1.5		1.0		(0.7)
Change in valuation allowance for deferred tax assets	(7.9)		17.0		(24.7)
Cumulative deferred adjustments	—		0.7		(1.1)
Provision to return adjustments	(0.4)		0.5		1.3
Other permanent differences	(0.2)		1.0		(3.8)
Dividend and accretion on preferred stock	—		10.5		(35.8)
Gain on redemption of preferred stock	—		(43.3)		—
Section 162(m) limitation - covered employees	(16.0)		14.6		(6.9)
Capitalization of IPO transaction costs	—		4.4		—
FIN 48 liability	(0.6)		0.2		(3.7)
R&D credit	2.7		(12.4)		19.0
Non-controlling interest	—		(15.9)		40.0

	0.1	%	(0.7	%)	4.6	%

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities on December 31, 2021 and 2020 are as follows (in thousands):


	December 31,
	2021		2020
Deferred tax assets:
Accounts receivable, principally due to allowance for doubtful accounts	$	29	$	78
Allowance for inventory obsolescence and amortization	315		398
Accrued liabilities not currently deductible	1,713		2,204
Stock-based compensation	7,993		—
Accrued compensation	648		1,161
Deferred rent	3,813		4,387
Section 163(j) interest limitation	54		306
Goodwill	37,394		41,534
Net operating loss carryforwards - federal	5,681		3,814
Net operating loss carryforwards - state	1,014		1,002
R&D credit	2,645		1,986
Total gross deferred tax assets	61,299		56,870
Less valuation allowance	(55,588)		(52,198)
Total deferred tax assets, net of valuation allowance	5,711		4,672
Deferred tax liabilities:
Amortization and depreciation	(6,434)		(4,471)
Unbilled accounts receivable, deferred for tax purposes	—		(853)


Total deferred tax liabilities	(6,434)		(5,324)
Net deferred tax liabilities	$	(723)	$	(652)

The components of the valuation allowance are as follows (in thousands):


	Balance Beginning of Period		Additions		Recoveries		Balance End of Period

December 31, 2021	$	52,198	$	3,390	$	—	$	55,588
December 31, 2020	$	7,206	$	44,992	$	—	$	52,198
December 31, 2019	$	6,652	$	554	$	—	$	7,206

We establish a valuation allowance for deferred tax assets if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of future taxable income. We considered projected future taxable income, tax planning strategies, and reversal of taxable temporary differences in making this assessment. Based on available evidence, we have determined that a full valuation allowance is required as of December 31, 2021 and 2020. As a result of a full valuation allowance against our deferred tax assets and liabilities, a deferred tax liability related to indefinite-lived goodwill remains on our consolidated balance sheets on December 31, 2021 and 2020.

In 2020, we recorded deferred tax assets and liabilities related to the purchase of an additional 50% interest in Telos ID, including a deferred tax asset of $43.8 million for tax-deductible goodwill generated in the transaction. We also recorded a corresponding valuation allowance against the additional deferred taxes.

On December 31, 2021, for federal income tax purposes there was approximately a $27.1 million net operating loss available to be carried forward to offset future taxable income. Approximately $10.6 million of these net operating loss carryforwards expire between 2035 and 2037, the remaining will be carried forward indefinitely. As of December 31, 2021, there was approximately $3.5 million of R&D credit carryover which begins to expire in 2033. Certain tax attributes of the Company, including net operating losses and credits, would be subject to a limitation should an ownership change as defined under Section 382 of the Internal Revenue Code of 1986, as amended, occur. The limitations resulting from a change in ownership could affect the Company’s ability to utilize its tax attributes. A study was completed in 2020 which confirmed that no limitation applies to the Company's tax attributes as of December 31, 2020. We believe that ownership activity since December 31, 2020 would not result in limitation sufficient to result in the expiration of unused attributes.

Under the provisions of ASC 740, we determined that there were approximately $1,056,000, $763,000, and $714,000 of unrecognized tax benefits as of December 31, 2021, 2020, and 2019, respectively. Included in the balance of unrecognized tax benefits as of December 31, 2021, 2020, and 2019 were $174,000, $278,000, and $369,000, respectively, of tax benefits that, if recognized, would impact the effective tax rate. Also included in the balance of unrecognized tax benefits as of December 31, 2021, 2020, and 2019 were $882,000, $485,000, and $345,000, respectively, of tax benefits that, if recognized, would not impact the effective tax rate due to the Company’s valuation allowance. The Company had accrued interest and penalties related to the unrecognized tax benefits of $170,000 and $241,000, which were recorded in other liabilities as of December 31, 2021 and 2020, respectively.

We believe that the total amounts of unrecognized tax benefits will not significantly increase or decrease within the next 12 months. The period for which tax years are open, 2013 to 2021, has not been extended beyond the applicable statute of limitations. As of December 31, 2021, the Company is not under examination by any federal or state tax jurisdiction.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands):


	2021		2020		2019
Unrecognized tax benefits, beginning of period	$	763	$	714	$	649
Increase (decrease) in prior year tax positions	90		(104)		1
Increase related to current year tax positions	273		213		101
Decrease related to lapse of statutes	(70)		(60)		(37)
Unrecognized tax benefits, end of period	$	1,056	$	763	$	714

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
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-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

We lease office space and equipment under noncancelable operating and finance leases with various expiration dates, some of which contain renewal options.

Operating Leases

We determine if an arrangement is a lease and we account for leases in accordance with ASC Topic 842, “Leases,” which requires lessees to recognize a right-of-use (“ROU”) asset and lease liability on the consolidated balance sheets and expands disclosures about leasing arrangements for both lessees and lessors, among other items, for most lease arrangements.

In accordance with the adoption of ASC 842 on January 1, 2019, we recorded operating lease ROU assets, which represent our right to use an underlying asset for the lease term, and operating lease liabilities which represent our obligation to make lease payments. Generally, we enter into operating lease agreements for facilities. The amount of operating lease liabilities due within 12 months are recorded in other current liabilities, with the remaining operating lease liabilities recorded as non-current liabilities in our consolidated balance sheets based on their contractual due dates. The operating lease ROU assets and liabilities are recognized as of the lease commencement date at the present value of the lease payments over the lease term. Most of our leases do not provide an implicit rate that can readily be determined. Therefore, we use a discount rate based on our incremental borrowing rate, which was 5.75% for all operating leases. Our operating lease agreements may include options to extend the lease term or terminate it early. We have included options to extend in the operating lease ROU assets and liabilities when we are reasonably certain that we will exercise such options.

Operating lease expense is recognized as rent expense on a straight-line basis over the lease term. Some of our operating leases contain lease and non-lease components, which we account for as a single component. We evaluate ROU assets for impairment consistent with our property and equipment policy disclosure included in Note 1 – Overview and Summary of Significant Accounting Policies.

Finance Leases

On March 1, 1996, we entered into a 20-year capital lease for a building in Ashburn, Virginia that serves as our corporate headquarters. We had accounted for this transaction as a capital lease and had accordingly recorded assets and a corresponding liability of approximately $12.3 million. Effective November 1, 2013, this lease was terminated and we entered into a 13-year lease (the “2013 lease”) that would have expired in October 31, 2026. The 2013 lease was treated as a modification in accordance with ASC 840, “Leases”. As a result of the 2013 lease, the corresponding capital asset and liability increased by $11.7 million, resulting in a net book value of the capital asset of $13.1 million, and capital obligation of $15.5 million. The 2013 lease included an option to purchase, assign to, or designate a purchaser on June 1, 2014, which required notice of intent to exercise the option by not later than March 31, 2014.

On March 28, 2014, we entered into a definitive agreement with an unrelated third party to assign the purchase option to that third party in return for cash consideration of $1.7 million, payable upon the closing of the purchase transaction, and certain obligations under the agreement, including entering into a new 15-year lease with the third party upon the third party’s exercise of the purchase option and purchase of the building from the prior landlord. On March 28, 2014, we provided the prior landlord notice of our assignment and exercise of the purchase option. On May 28, 2014, the third party completed the purchase transaction and the 2013 lease was terminated, with no ongoing obligations, by mutual agreement between the prior landlord and the Company. On the same day we entered into a new lease (the “2014 lease”) with the third party that expires on May 31, 2029. The 2014 lease was treated as a modification of the prior lease on the property in accordance with ASC 840, and determined to be a capital lease. As a result of the 2014 lease, the corresponding capital asset increased by $5.7 million, resulting in a net book value of the capital asset of $18.3 million and the liability increased by $6.7 million, resulting in a capital obligation of $22.0 million. In accordance with the 2014 Lease, the basic rent increases by a fixed 2.5% escalation annually. The adoption of ASC 842 on January 1, 2019 did not have a material impact on the existing finance leases.

The weighted average remaining lease terms and discount rates were as follows:


	Years Ended December 31,
	2021		2020
Weighted average remaining lease term (in years):
Finance leases	7.3 years		8.3 years
Operating leases	1.7 years		2.5 years
Weighted average discount rate:
Finance leases	5.04	%	5.04	%
Operating leases	5.75	%	5.75	%

Future minimum lease commitments at December 31, 2021 were as follows (in thousands):


	Operating Leases		Finance Leases
2022	$	602	$	2,149
2023	373		2,202
2024	28		2,258
2025	—		2,314
2026	—		2,372
After 2026	—		5,972
Total minimum lease payments	1,003		17,267
Less imputed interest	(51)		(2,966)
Net present value of minimum lease payments	952		14,301
Less current portion	(564)		(1,461)
Long-term lease obligations at December 31, 2021	$	388	$	12,840

The components of lease expense were as follows (in thousands):


	Years Ended December 31,
	2021		2020
Operating lease cost	$	713	$	724
Short-term lease cost (1)	13		93
Finance lease cost
Amortization of finance lease assets	1,221		1,221
Interest on finance lease liabilities	758		822
Total finance lease cost	1,979		2,043
Total lease costs	$	2,705	$	2,860

(1)Leases that have terms of 12 months or less.

Supplemental cash flow information related to leases was as follows (in thousands):


	Years Ended December 31,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Cash flows from operating activities - operating leases	$	768	$	745
Cash flows from operating activities - finance leases	$	758	$	820
Cash flows from financing activities - finance leases	$	1,339	$	1,225

Rent expense charged to operations totaled $0.8 million, $1.9 million, and $1.8 million for 2021, 2020, and 2019, respectively.

Leases

We lease office space and equipment under noncancelable operating and finance leases with various expiration dates, some of which contain renewal options.

Operating Leases

Finance Leases

The weighted average remaining lease terms and discount rates were as follows:


	Years Ended December 31,
	2021		2020
Weighted average remaining lease term (in years):
Finance leases	7.3 years		8.3 years
Operating leases	1.7 years		2.5 years
Weighted average discount rate:
Finance leases	5.04	%	5.04	%
Operating leases	5.75	%	5.75	%

Future minimum lease commitments at December 31, 2021 were as follows (in thousands):


	Operating Leases		Finance Leases
2022	$	602	$	2,149
2023	373		2,202
2024	28		2,258
2025	—		2,314
2026	—		2,372
After 2026	—		5,972
Total minimum lease payments	1,003		17,267
Less imputed interest	(51)		(2,966)
Net present value of minimum lease payments	952		14,301
Less current portion	(564)		(1,461)
Long-term lease obligations at December 31, 2021	$	388	$	12,840

The components of lease expense were as follows (in thousands):


	Years Ended December 31,
	2021		2020
Operating lease cost	$	713	$	724
Short-term lease cost (1)	13		93
Finance lease cost
Amortization of finance lease assets	1,221		1,221
Interest on finance lease liabilities	758		822
Total finance lease cost	1,979		2,043
Total lease costs	$	2,705	$	2,860

(1)Leases that have terms of 12 months or less.

Supplemental cash flow information related to leases was as follows (in thousands):


	Years Ended December 31,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Cash flows from operating activities - operating leases	$	768	$	745
Cash flows from operating activities - finance leases	$	758	$	820
Cash flows from financing activities - finance leases	$	1,339	$	1,225

Rent expense charged to operations totaled $0.8 million, $1.9 million, and $1.8 million for 2021, 2020, and 2019, respectively.

Fair Value Measurements	12 Months Ended
Fair Value Measurements	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The accounting standard for fair value measurements provides a framework for measuring fair value and expands disclosures about fair value measurements. The framework requires the valuation of investments using a three-tiered approach. The statement requires fair value measurement to be classified and disclosed in one of the following categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets and liabilities; Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; or Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity). As of December 31, 2021 and 2020, we did not have any financial instruments with significant Level 3 inputs and we did not have any financial instruments that are measured at fair value on a recurring basis. For certain of our non-derivative financial instruments, including receivables, accounts payable and other accrued liabilities, the carrying amount approximates fair value due to the short-term maturities of these instruments.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Certain Relationships and Related Transactions	12 Months Ended
Certain Relationships and Related Transactions	Dec. 31, 2021
Related Party Transactions [Abstract]
Certain Relationships and Related Transactions	Certain Relationships and Related Transactions Information concerning certain relationships and related party transactions between us and certain of our current shareholders and officers is set forth below. Emmett J. Wood, the brother of our Chairman and CEO, has been an employee of ours since 1996 and currently serves as executive officer. The amounts paid to this individual as compensation for 2021, 2020, and 2019 were $492,000, $1,238,000, and $529,000, respectively. Additionally, Mr. Wood owned 73,562 and 682,502 shares of the Company’s common stock as of December 31, 2021 and 2020, respectively. On March 31, 2015, the Company entered into the Porter Notes. Mr. Porter and Toxford Corporation, of which Mr. Porter was the sole shareholder, owned 35.0% of our Class A Common Stock. Under the terms of the Porter Notes, Porter lent the Company $2.5 million on or about March 31, 2015. According to the terms of the Porter Notes, the outstanding principal sum bore interest at the fixed rate of twelve percent (12%) per annum, which would be payable in arrears in cash on the 20th day of each May, August, November and February, with the first interest payment date due on August 20, 2015. The Porter Notes did not call for amortization payments and were unsecured. The Porter Notes, in whole or in part, may be repaid at any time without premium or penalty. The unpaid principal, together with interest, was originally due and payable in full on July 1, 2017. On April 18, 2017, we amended and restated the Porter Notes to reduce the interest rate from twelve percent (12%) to six percent (6%) per annum, to be accrued, and extended the maturity date from July 1, 2017 to July 25, 2022. Telos also entered into Intercreditor Agreements with Porter and EnCap, in which the Porter Notes were fully subordinated to the Credit Agreement and any subsequent senior lenders (including Action Capital), and payments under the Porter Notes were permitted only if certain conditions were met. All other terms remained in full force and effect. We incurred interest expense in the amount of $319,000 and $330,000 for the years ended December 31, 2020 and 2019, respectively, on the Porter Notes. On November 23, 2020, upon the closing of the IPO, the Porter Notes were paid in full. One of the Company's directors serves as a consultant. The amount paid for his consultancy services were $282,000, $270,000 and $270,000 for 2021, 2020 and 2019, respectively. On February 8, 2021, we hired Ms. Donna Hill, as Director of Human Resources, reporting directly to Ms. Nakazawa, EVP of the Company. Ms. Hill is the sister of Mr. Edward Williams, former COO of the Company.

Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information

Segment InformationDuring the fourth quarter of 2021, as a result of the segment reorganization, our CODM began evaluating, overseeing and managing the financial performance of our operations through two operating segments: Security Solutions and Secure Networks. The segments enable the alignment of our strategies and objectives and provide a framework for timely and rational allocation of resources within the lines of business. We eliminate any inter-segment revenues and expenses upon consolidation.

The Security Solutions segment is primarily focused on cybersecurity, cloud and identity solutions through Xacta, Telos Ghost, AMHS and Telos ID offerings. We recognize revenue on contracts from providing various system platforms in cloud, on-premise and/or in hybrid cloud environment, and software sales or software-as-a-service. Revenue associated with the segment's custom solutions is recognized as work progresses or upon delivery of services. Fluctuation in revenue from period-to-period results from the volume of software sales, and progress or completion of cloud and/or cyber security solutions during the period. The majority of the operating costs relates to labor, material, and overhead costs. Software sales have immaterial operation costs associated with them, thus yielding higher margins. Gross profit and margin are a function of operational efficiency on security solutions and changes in the volume of software sales.

The Secure Networks segment provides secure networking architectures and solutions to our customers through secure mobility solutions and network management and defense services. Revenue is recognized over time as the work progresses on contracts related to managing network services and information delivery. Contract costs include labor, material and overhead costs. Variances in costs recognized from period to period reflect primarily increases and decreases in activity level on individual contracts.

The following table summarizes business segment information for the periods presented, and a reconciliation of those results to the statement of operations for the relevant periods. Prior period segment information was recast to conform to the current year's presentation.


	Years Ended December 31,
	2021		2020		2019
	(in thousands)
Revenues
Security Solutions	$	123,534	$	127,667	$	111,843
Secure Networks	118,899		62,627		57,295
Inter-segment elimination	—		(10,377)		(9,920)
Consolidated revenue	$	242,433	$	179,917	$	159,218

Gross profit
Security Solutions	$	64,904	$	50,458	$	42,056
Secure Networks	21,125		11,962		10,288
Total gross profit	$	86,029	$	62,420	$	52,344

We measure each segment's profitability based on gross profit. We account for inter-segment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. Interest income, interest expense, other income and expense items and income taxes, as reported in the consolidated financial statements, are not part of the segment profitability measure, and are primarily recorded at the corporate level. Under U.S. government Cost Accounting Standards, indirect costs including depreciation and amortization expense are collected in numerous indirect cost pools which are then collectively allocated out to the Company’s reportable segments based on a representative causal or beneficial relationship of the costs in the pool to the costs in the base. While depreciation and amortization expense is a component of the allocated costs, the allocation process precludes depreciation and amortization expense from being specifically identified by the Company’s individual reportable and operating segments. For this reason, the non-cash items by reportable and operating segment have not been reported above.

Management does not utilize total assets by segment to evaluate segment performance or allocate resources. As a result, assets are not tracked by segment and therefore, total assets by segment are not disclosed.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

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+ Details

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments, Contingencies and Subsequent Events	Commitments, Contingencies, and Subsequent Events Legal Proceedings We are involved in legal proceedings and investigations arising in the ordinary course of business, including those relating to employment matters, relationships with clients and contractors, intellectual property disputes, and other business matters. These legal proceedings seek various remedies, including claims for monetary damages in varying amounts, none of which are considered material, or are unspecified as to amount. Although the outcome of any such matter is inherently uncertain and may be materially adverse, based on current information, we do not expect any of the currently ongoing audits, reviews, investigations, or litigation to have a material adverse effect on our financial condition and results of operations. As of December 31, 2021, there were no material amounts accrued in the consolidated financial statements related to these proceedings. Other - Government Contracts As a U.S. government contractor, we are subject to various audits and investigations by the U.S. government to determine whether our operations are being conducted in accordance with applicable regulatory requirements. U.S. government investigations of our operations, whether relating to government contracts or conducted for other reasons, could result in administrative, civil, or criminal liabilities, including repayments, fines or penalties being imposed upon us, suspension, proposed debarment, debarment from eligibility for future U.S. government contracting, or suspension of export privileges. Suspension or debarment could have a material adverse effect on us because of our dependence on contracts with the U.S. government. U.S. government investigations often take years to complete and many result in no adverse action against us. We also provide products and services to customers outside of the United States, which are subject to U.S. and foreign laws and regulations and foreign procurement policies and practices. Our compliance with local regulations or applicable U.S. government regulations also may be audited or investigated. Subsequent Events On February 7, 2022, Telos and certain of its current and former officers were named as defendants in a lawsuit filed in the United States District Court for the Eastern District of Virginia. In the complaint, the plaintiffs, who purport to represent a class of purchasers of Telos common stock between November 19, 2020 and November 12, 2021, allege that the defendants violated securities laws by failing to disclose delays relating to the launch of certain contracts between Telos and the Transportation Security Administration and the Centers for Medicare and Medicaid Services and to take into account those delays when providing a financial outlook of the Company’s 2021 performance. The complaint seeks monetary damages in an unspecified amount. We dispute the claims described in the complaint and intend to defend the lawsuit vigorously.

Composition of Certain Financial Statement Captions

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Composition of Certain Financial Statement Captions


	December 31,
	2021		2020
Balance Sheets
Accounts payable and other accrued liabilities
Accounts payable	$	9,248	$	14,662
Accrued liabilities	25,300		6,237
	$	34,548	$	20,899

Revision of Interim Financial Statements

12 Months Ended

Dec. 31, 2021

Accounting Changes and Error Corrections [Abstract]

Revenue of Interim Financial Statements

Revision of Interim Financial StatementsAs noted in Note 1 - Overview and Summary of Significant Accounting Policies, the Company recorded certain revisions related to previously issued unaudited condensed consolidated financial statements. The Company considered the errors identified in accordance with the SEC's Staff Accounting Bulletin No. 99 and determined the impact was immaterial to the previously issued consolidated interim financial statements. Nonetheless, the Company has revised the previously reported interim financial information for the quarterly periods ended March 31, 2021, June 30, 2021, and September 30, 2021. There is no cumulative impact to the Company’s full-year 2021 financial statements as a result of these revisions. The following is a comprehensive list of those errors which have all been recast to the correct periods in the table below:

Classification of Expense

During the third quarter of 2021, the Company identified that stock compensation for a single individual was incorrectly charged to cost of sales instead of general and administrative expense. The total amount of stock compensation incorrectly charged to cost of sales was $0.3 million, of which $0.1 million related to the first quarter of 2021 and $0.2 million related to the second quarter of 2021. The Company initially corrected the error during the third quarter of 2021.

During the third quarter of 2021, the Company identified that the allocation of stock compensation for two of the Company’s overhead cost pools were incorrectly charged to cost of sales instead of general and administrative expense during the second quarter of 2021. The total amount of stock compensation incorrectly charged to cost of sales was $0.7 million which the Company initially corrected during the third quarter of 2021.

Revenue Recognition

In the third quarter of 2021, the Company identified $1.1 million in revenue related to the stub period of a newly awarded contract that should have been recognized as income during the second quarter of 2021. The Company initially corrected the error during the third quarter of 2021. Additionally, and related to this contract, in the fourth quarter of 2021 the Company identified $0.3 million of products revenue for the second quarter of 2021 and $0.4 million of products revenue for the third quarter of 2021 that should be classified in the Consolidated Statements of Operations as services revenue. The table below reflects the correction of the classification error previously reported during the second and third quarters of 2021.

In the third quarter of fiscal year 2021, the Company erroneously recorded an $0.9 million expense related to a contract that had not yet begun. In the fourth quarter of 2021 the Company reversed the expense previously recorded and does not plan to record the expense until the start of the period of performance.

Software Capitalization

In the third quarter of fiscal year 2021, the Company erroneously recorded a $0.5 million expense related to a software project whose development milestones were achieved and therefore costs associated with the software should have been capitalized. The table below reflects the correction of the error previously reported during Q3 2021.

Cash Flow

In the first three quarters of fiscal year 2021, the Company erroneously presented the $2.4 million payment to fully acquire all membership interest of Telos ID as an operating activity on the statement of cash flow. In the fourth quarter of 2021 the Company corrected the presentation to properly reflect the payment within financing activities on the statement of cash flows.

Stock Compensation

In the fourth quarter of fiscal year 2021, the Company identified that a third quarter RSU was awarded to an individual, but that award was erroneously excluded from its calculation of compensation expense causing compensation expense to be understated by $0.2 million in the third quarter of 2021. The table below reflects the correction of the error previously reported during Q3 2021.

Valuation of Acquired Assets

In the fourth quarter of fiscal year 2021, the Company identified a necessary update to a previously established assumption related to the valuation of its 2021 acquisition. The change in assumption resulted in additional goodwill of $1.3 million and a reduction of the intangible asset for the same amount that should have been reported during Q3 2021.

The impact of the correction on the Company's previously issued quarterly consolidated financial statements was as follows (in thousands, except per share data):


Adjustments to the period ended March 31, 2021

	Three Months Ended March 31, 2021
	Previously Reported	Error Correction	As Adjusted
Condensed Consolidated Statement of Operations
Cost of sales - Services	39,602	(112)	39,490
Costs and expenses	41,400	(112)	41,288
General and administrative	19,964	112	20,076
Selling, general and administrative expenses	27,851	112	27,963



Condensed Consolidated Statement of Cash Flows


Changes in other operating assets and liabilities	$	(9,584)	$	2,436	$	(7,148)
Cash used in operating activities	(9,318)		2,436		(6,882)
Distribution to Telos ID Class B member - non-controlling interest	—		(2,436)		(2,436)
Cash used in financing activities	(321)		(2,436)		(2,757)


Adjustments to the period ended June 30, 2021

	Three Months Ended June 30, 2021						Six Months Ended June 30, 2021
	Previously Reported		Error Correction		As Adjusted		Previously Reported		Error Correction		As Adjusted
Condensed Consolidated Statement of Operations
Revenue - Services	$	47,618	$	1,385	$	49,003	$	99,676	$	1,385	$	101,061
Revenue - Products	4,941		(300)		4,641		8,641		(300)		$	8,341
Revenue	52,559		1,085		53,644		108,317		1,085		$	109,402
Cost of sales - Services	29,501		(892)		28,609		69,103		(1,004)		$	68,099
Costs and expenses	32,002		(892)		31,110		73,402		(1,004)		$	72,398
General and administrative	28,743		892		29,635		48,708		1,004		$	49,712
Selling, general and administrative expenses	39,113		892		40,005		66,965		1,004		$	67,969
Operating loss	(18,556)		1,085		(17,471)		(32,050)		1,085		$	(30,965)
Loss before income taxes	(18,716)		1,085		(17,631)		(33,460)		1,085		$	(32,375)
Net loss	(18,729)		1,085		(17,644)		(33,507)		1,085		$	(32,422)
Net loss attributable to Telos Corporation	(18,729)		1,085		(17,644)		(33,507)		1,085		$	(32,422)
Net loss per share attributable to Telos Corporation
Basic	$	(0.28)	$	0.02	$	(0.26)	$	(0.51)	$	0.02	$	(0.49)
Diluted	$	(0.28)	$	0.02	$	(0.26)	$	(0.51)	$	0.02	$	(0.49)


	Three Months Ended June 30, 2021						Six Months Ended June 30, 2021
	Previously Reported		Error Correction		As Adjusted		Previously Reported		Error Correction		As Adjusted
Condensed Consolidated Statement of Comprehensive Loss
Net loss	$	(18,729)	$	1,085	$	(17,644)	$	(33,507)	$	1,085	$	(32,422)
Comprehensive loss attributable to Telos Corporation	(18,724)		1,085		(17,639)		(33,534)		1,085		(32,449)


	June 30, 2021
	Previously Reported		Error Correction		As Adjusted
Condensed Consolidated Balance Sheet
Accounts receivable, net of reserve	$	39,412	$	1,085	$	40,497
Total current assets	178,403		1,085		179,488
Total assets	220,094		1,085		221,179
Accumulated deficit	(177,350)		1,085		(176,265)
Total stockholders' equity	164,700		1,085		165,785
Total liabilities and stockholders' equity	220,094		1,085		221,179


	Six Months Ended June 30, 2021
	Previously Reported		Error Correction		As Adjusted
Condensed Consolidated Statement of Cash Flows
Net loss	$	(33,507)	$	1,085	(32,422)
Changes in other operating assets and liabilities	(10,074)		1,351		(8,723)
Cash used in operating activities	(5,790)		2,436		(3,354)
Distribution to Telos ID Class B member - non-controlling interest	—		(2,436)		(2,436)
Cash provided by financing activities	35,474		(2,436)		33,038


	Three Months Ended June 30, 2021						Six Months Ended June 30, 2021
	Previously Reported		Error Correction		As Adjusted		Previously Reported		Error Correction		As Adjusted
Condensed Consolidated Statement of Changes in Stockholders' Equity
Net loss	$	(18,729)	$	1,085	$	(17,644)	$	(33,507)	$	1,085	$	(32,422)
Accumulated deficit	(177,350)		1,085		(176,265)		(177,350)		1,085		(176,265)
Total Stockholders' equity	164,700		1,085		165,785		164,700		1,085		165,785


Adjustments to the period ended September 30, 2021

	Three Months Ended September 30, 2021					Nine Months Ended September 30, 2021
	Previously Reported		Error Correction	As Adjusted		Previously Reported		Error Correction		As Adjusted
Condensed Consolidated Statement of Operations
Revenue - Services	63,690		(735)	62,955		$	163,366	$	650	$	164,016
Revenue - Products	6,376		(350)	6,026		15,017		(650)		14,367
Revenue	70,066		(1,085)	68,981		178,383		—		178,383
Cost of sales - Services	40,031		106	40,137		109,134		(898)		108,236
Costs and expenses	43,998		106	44,104		117,400		(898)		116,502
Research and development	5,396		(533)	4,863		14,783		(533)		14,250
General and administrative	20,562		(823)	19,739		69,271		181		69,452
Selling, general and administrative expenses	31,321		(1,356)	29,965		98,287		(352)		97,935
Operating loss	(5,253)		165	(5,088)		(37,304)		1,250		(36,054)
Loss before income taxes	(5,428)		165	(5,263)		(38,888)		1,250		(37,638)
Net loss	(5,387)		165	(5,222)		(38,894)		1,250		(37,644)
Net loss attributable to Telos Corporation	(5,387)		165	(5,222)		(38,894)		1,250		(37,644)
Net loss per share attributable to Telos Corporation
Basic	$	(0.08)	—	$	(0.08)	$	(0.59)	$	0.02	$	(0.57)
Diluted	$	(0.08)	—	$	(0.08)	$	(0.59)	$	0.02	$	(0.57)


	Three Months Ended September 30, 2021						Nine Months Ended September 30, 2021
	Previously Reported		Error Correction		As Adjusted		Previously Reported		Error Correction		As Adjusted
Condensed Consolidated Statement of Comprehensive Loss
Net loss	$	(5,387)	$	165	$	(5,222)	$	(38,894)	$	1,250	$	(37,644)
Comprehensive loss attributable to Telos Corporation	(5,400)		165		(5,235)		(38,934)		1,250		(37,684)


	September 30, 2021
	Previously Reported		Error Correction		As Adjusted
Condensed Consolidated Balance Sheet
Accounts receivable, net of reserve	$	49,759	$	(1,085)	$	48,674
Total current assets	192,300		(1,085)		191,215
Goodwill	16,642		1,280		17,922
Intangible assets, net	17,102		(747)		16,355
Total assets	242,667		(552)		242,115
Accounts payable and other accrued liabilities	35,102		(898)		34,204
Total current liabilities	54,410		(898)		53,512
Total liabilities	71,176		(898)		70,278
Additional paid-in capital	354,119		181		354,300
Accumulated deficit	(182,737)		165		(182,572)
Total stockholders' equity	171,491		346		171,837
Total liabilities and stockholders' equity	242,667		(552)		242,115


	Nine Months Ended September 30, 2021
	Previously Reported		Error Correction		As Adjusted
Condensed Consolidated Statement of Cash Flows
Net loss	$	(38,894)	$	1,250	$	(37,644)
Stock-based compensation	47,197		181		47,378
Changes in other operating assets and liabilities	(5,900)		1,538		(4,362)
Cash used in operating activities	6,668		2,969		9,637
Capitalized software development costs	(6,139)		(533)		(6,672)
Cash used in investing activities	(13,709)		(533)		(14,242)
Distribution to Telos ID Class B member - non-controlling interest	—		(2,436)		(2,436)
Cash provided by financing activities	35,131		(2,436)		32,695


	Three Months Ended September 30, 2021						Nine Months Ended September 30, 2021
	Previously Reported		Error Correction		As Adjusted		Previously Reported		Error Correction		As Adjusted
Condensed Consolidated Statement of Changes in Stockholders' Equity
Net loss	$	(5,387)	$	165	$	(5,222)	$	(38,894)	$	1,250	$	(37,644)
Additional paid-in capital	354,119		181		354,300		354,119		181		354,300
Accumulated deficit - beginning balance	(177,350)		1,085		(176,265)		(143,843)		—		(143,843)
Accumulated deficit - ending balance	(182,737)		165		(182,572)		(182,737)		165		(182,572)
Total Stockholders' Equity	171,491		346		171,837		171,491		346		171,837

Overview and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Principles of Consolidation and Reporting

In preparing these consolidated financial statements, we have evaluated subsequent events through the date that these consolidated financial statements were issued.

Segment Reporting

Prior period segment information has been recast to reflect the change (see Note 1 7 - Segment Information for further information). The segment reorganization had no impact on previously reported consolidated financial results.We measure each segment's profitability based on gross profit. We account for inter-segment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. Interest income, interest expense, other income and expense items and income taxes, as reported in the consolidated financial statements, are not part of the segment profitability measure, and are primarily recorded at the corporate level. Under U.S. government Cost Accounting Standards, indirect costs including depreciation and amortization expense are collected in numerous indirect cost pools which are then collectively allocated out to the Company’s reportable segments based on a representative causal or beneficial relationship of the costs in the pool to the costs in the base. While depreciation and amortization expense is a component of the allocated costs, the allocation process precludes depreciation and amortization expense from being specifically identified by the Company’s individual reportable and operating segments. For this reason, the non-cash items by reportable and operating segment have not been reported above.Management does not utilize total assets by segment to evaluate segment performance or allocate resources. As a result, assets are not tracked by segment and therefore, total assets by segment are not disclosed.

Use of Estimates

Risks and Uncertainties

Financial instruments that subject us to concentrations of credit risk consist primarily of cash and cash equivalents, and accounts receivable.

Cash and Cash Equivalents

Accounts Receivable

Accounts receivable are stated at the invoiced amount, less an allowance for doubtful accounts. Collectability of accounts receivable is regularly reviewed based upon managements’ knowledge of the specific circumstances related to overdue balances. The allowance for doubtful accounts is adjusted based on such evaluation. Accounts receivable balances are written off against the allowance when management deems the balances uncollectible.Receivables include billed and unbilled receivables. Unbilled receivables, substantially all of which are expected to be billed and collected within one year, are stated at their estimated realization value and consist of costs and fees billable on contract completion or the occurrence of a specific event, other than the passage of time.

Inventories

Property and Equipment


Furniture and equipment			3-5 Years
Leasehold improvements			Lesser of life of lease or useful life of asset
Property and equipment under finance leases			Lesser of life of lease or useful life of asset

Impairment of Long-Lived Assets

Software Development Costs

Advertising Costs

Advertising costs, which are expensed and included in sales and marketing expense when incurred

Income Taxes

We account for income taxes in accordance with ASC 740, “Income Taxes.” Under ASC 740, deferred tax assets and liabilities are recognized for the estimated future tax consequences of temporary differences and income tax credits. Deferred tax assets and liabilities are measured by applying enacted statutory tax rates that are applicable to the future years in which deferred tax assets or liabilities are expected to be settled or realized for differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Any change in tax rates on deferred tax assets and liabilities is recognized in net income in the period in which the tax rate change is enacted. We record a valuation allowance that reduces deferred tax assets when it is “more likely than not” that deferred tax assets will not be realized. We follow the provisions of ASC 740 related to accounting for uncertainty in income taxes. The accounting estimates related to liabilities for uncertain tax positions require us to make judgments regarding the sustainability of each uncertain tax position based on its technical merits. If we determine it is more likely than not that a tax position will be sustained based on its technical merits, we record the impact of the position in our consolidated financial statements at the largest amount that is greater than fifty percent likely of being realized upon ultimate settlement. These estimates are updated at each reporting date based on the facts, circumstances and information available. We are also required to assess at each reporting date whether it is reasonably possible that any significant increases or decreases to our unrecognized tax benefits will occur during the next 12 months.

Business Combinations

Goodwill and Intangible Assets

The Company's goodwill is amortized and deducted over a 15-year period for tax purposes.

Stock-Based Compensation

Net Earnings (Loss) per Share

Other Comprehensive Income (Loss)

Financial Instruments

Recent Accounting Pronouncements

In October 2021, the FASB issued ASU No. 2021-08, “Business Combination (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The ASU improves comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. Entities should apply the amendments prospectively to business combinations that occur after the effective date. This standard will be effective for reporting periods beginning after December 15, 2022, with early adoption permitted. While we are currently assessing the impact of the adoption of this ASU, we do not believe the adoption of this ASU will have a material impact on our consolidated financial position, results of operations and cash flows.

Revenue

Revenue Recognition

Contract Estimates

Contract Balances

Overview and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Allowance for Obsolescent Inventory

The components of the allowance for inventory obsolescence are set forth below (in thousands):


	Balance Beginning of Year		Additions Charge to Costs and Expense		Recoveries		Balance End of Year

Year Ended December 31, 2021	$	851	$	10	$	—	$	861
Year Ended December 31, 2020	$	860	$	(1)	$	(8)	$	851
Year Ended December 31, 2019	$	520	$	376	$	(36)	$	860

Property, Plant and Equipment


Furniture and equipment			3-5 Years
Leasehold improvements			Lesser of life of lease or useful life of asset
Property and equipment under finance leases			Lesser of life of lease or useful life of asset

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

Potentially dilutive securities are as follows (in common stock equivalent shares, in thousands):


	Year Ended December 31,
	2021	2020
Unvested restricted stock	520	60
Common stock warrants, exercisable at $1.665/sh.	400	901
Total	920	961

Revenue (Tables)

12 Months Ended

Dec. 31, 2021

Revenue Recognition and Deferred Revenue [Abstract]

Disaggregation of Revenue

The following tables disclose revenue disaggregated by several categories for the years ended December 31, 2021, 2020, and 2019 (in thousands).


Revenue Type	2021		2020		2019
Security Solutions
Services	$	102,649	$	100,422	$	86,286
Products	20,885		16,890		15,637
	123,534		117,312		101,923
Secure Networks
Services	118,899		60,758		57,295
Products	—		1,847		—
	118,899		62,605		57,295
Total revenue	$	242,433	$	179,917	$	159,218


Customer Type	2021		2020		2019
Security Solutions
Federal	$	114,159	$	109,410	$	92,336
State & Local, and Commercial	9,375		7,902		9,587
	123,534		117,312		101,923
Secure Networks
Federal	118,717		62,267		56,921
State & Local, and Commercial	182		338		374
	118,899		62,605		57,295
Total revenue	$	242,433	$	179,917	$	159,218


Contract Type	2021		2020		2019
Security Solutions
Firm fixed-price	$	104,534	$	98,379	$	80,316
Time-and-materials	12,433		12,617		14,100
Cost plus fixed fee	6,567		6,316		7,507
	123,534		117,312		$	101,923
Secure Networks
Firm fixed-price	107,770		53,324		51,313
Time-and-materials	28		838		469
Cost plus fixed fee	11,101		8,443		5,513
	118,899		62,605		$	57,295
Total revenue	$	242,433	$	179,917	$	159,218

The percentage of total revenue for the U.S. government, its agencies and other customers comprising more than 10% of total revenue is as follows:


	2021		2020		2019
U.S. Department of Defense	74	%	65	%	65	%
Civilian	22	%	30	%	29	%

Contract with Customer, Contract Asset, Contract Liability, and Receivable

Contract balances for the periods presented are as follow (in thousands):


	December 31,
	2021		2020		2019
Contract assets (unbilled receivables)	$	41,374	$	19,161	$	16,745
Contract liabilities	$	6,381	$	5,654	$	6,337


	December 31,
	2021		2020
Remaining performance obligation (funded backlog)	$	123,479	$	127,735

Accounts Receivables (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

The components of accounts receivable, net consisted of the following (in thousands):


	December 31,
	2021		2020
Billed accounts receivable	$	18,586	$	12,060
Unbilled receivables	41,374		19,161
Allowance for doubtful accounts	(116)		(308)
Accounts receivable, net	$	59,844	$	30,913

Accounts Receivable, Allowance for Credit Loss

The activities in the allowance for doubtful accounts are set forth below (in thousands):


	Balance Beginning of Year		Bad Debt Expenses (1)		Write-offs / Recoveries (2)		Balance End of Year

Year Ended December 31, 2021	$	308	$	7	$	(199)	$	116
Year Ended December 31, 2020	$	720	$	(412)	$	—	$	308
Year Ended December 31, 2019	$	306	$	414	$	—	$	720

(1)Accounts receivable reserves and reversal of allowance for subsequent collections, net

(2)Accounts receivable written-off and subsequent recoveries, net

Goodwill (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The carrying value of the goodwill is as follows:


	Security Solutions		Secure Networks		Total
Balance at December 31, 2020	$	—	$	14,916	$	14,916
Acquired goodwill	3,006		—		3,006
Balance at December 31, 2021	$	3,006	$	14,916	$	17,922

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

Intangible assets with finite lives are amortized over the following estimated useful lives:


						Estimated Useful Life
Acquired technology						8 years
Customer relationship						3 years
Software development costs						2 years

Intangible assets, all of which are finite-lived, consists of the following (in thousands):


	December 31, 2021						December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
Acquired technology	$	3,630	$	(256)	$	3,374	$	—	$	—	$	—
Customer relationships	40		(5)		35		—		—		—
Software development costs	22,222		(6,432)		15,790		12,253		(4,833)		7,420
	$	25,892	$	(6,693)	$	19,199	$	12,253	$	(4,833)	$	7,420

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The expected future annual amortization expense of intangible assets as of December 31, 2021 is presented below (in thousands):


Years Ending December 31,	Amount
2022	$	6,820
2023	7,657
2024	2,460
2025	703
2026	454
2027 and thereafter	1,105
Total	$	19,199

Non-Controlling Interests/Purchase of Telos ID (Tables)

12 Months Ended

Dec. 31, 2021

Noncontrolling Interest [Abstract]

Changes in Non-Controlling Interest

The following table details the changes in non-controlling interest for the years ended December 31, 2020, and 2019 (in thousands):


	2020		2019
Non-controlling interest, beginning of period	$	4,514	$	2,621
Net income	5,154		4,264
Distributions	(5,179)		(2,371)
Sale of 50% membership interest	(4,489)		—
Non-controlling interest, end of period	$	—	$	4,514

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2021

Stockholders' Equity Note [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive (loss) income included within stockholders’ equity consists of the following (in thousands):


	Year Ended December 31,
	2021		2020
Cumulative foreign currency translation loss	$	(134)	$	(63)
Cumulative actuarial gain on pension liability adjustment in Teloworks	107		107
Accumulated other comprehensive (loss) income	$	(27)	$	44

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Share-based Payment Arrangement, Expensed and Capitalized, Amount


	December 31,
	2021		2020
Cost of sales - services	$	2,640	$	—
Sales and marketing	7,189		—
Research and development	3,268		—
General and administrative	47,134		4
Total stock-based compensation expense	$	60,231	$	4

Schedule of Nonvested Restricted Stock Units Activity

A summary of the awards of Service-Based RSUs that vest upon the completion of a service requirement is presented below:


	Number of Shares	Weighted- Average Grant Date Fair Value (per share)		Weighted- Average Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Unvested Balance - December 31, 2020	59,521	$	0.18	2.4	$	2,000
Granted	3,206,283	34.92		—	—
Vested	(132,020)	33.99		—	—
Forfeited	(103,176)	35.45		—	—
Unvested Balance - December 31, 2021	3,030,608	$	34.94	1.3	$	46,700

A summary of the awards of Performance-Based RSUs that vest upon the attainment of certain price targets of the Company’s common stock is presented below:


	Number of Shares	Weighted- Average Grant Date Fair Value (per share)		Weighted- Average Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Unvested Balance - December 31, 2020	—	$	—	—	$	—
Granted	508,903	30.09		—	—
Vested	—	—		—	—
Forfeited	(16,176)	30.84		—	—
Unvested Balance - December 31, 2021	492,727	$	30.07	2.2	$	7,600

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The benefit for income taxes attributable to income from operations includes the following (in thousands):


	For the Years Ended December 31,
	2021		2020		2019
Current (benefit) provision
Federal	$	—	$	—	$	25
State	(98)		(77)		68
Total current	(98)		(77)		93

Deferred provision (benefit)
Federal	19		27		88
State	51		4		(285)
Total deferred	70		31		(197)
Total benefit	$	(28)	$	(46)	$	(104)

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of these differences is as follows:


	For the Years Ended December 31,
	2021		2020		2019
Computed expected income tax provision	21.0	%	21.0	%	21.0	%
State income taxes, net of federal income tax benefit	1.5		1.0		(0.7)
Change in valuation allowance for deferred tax assets	(7.9)		17.0		(24.7)
Cumulative deferred adjustments	—		0.7		(1.1)
Provision to return adjustments	(0.4)		0.5		1.3
Other permanent differences	(0.2)		1.0		(3.8)
Dividend and accretion on preferred stock	—		10.5		(35.8)
Gain on redemption of preferred stock	—		(43.3)		—
Section 162(m) limitation - covered employees	(16.0)		14.6		(6.9)
Capitalization of IPO transaction costs	—		4.4		—
FIN 48 liability	(0.6)		0.2		(3.7)
R&D credit	2.7		(12.4)		19.0
Non-controlling interest	—		(15.9)		40.0

	0.1	%	(0.7	%)	4.6	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities on December 31, 2021 and 2020 are as follows (in thousands):


	December 31,
	2021		2020
Deferred tax assets:
Accounts receivable, principally due to allowance for doubtful accounts	$	29	$	78
Allowance for inventory obsolescence and amortization	315		398
Accrued liabilities not currently deductible	1,713		2,204
Stock-based compensation	7,993		—
Accrued compensation	648		1,161
Deferred rent	3,813		4,387
Section 163(j) interest limitation	54		306
Goodwill	37,394		41,534
Net operating loss carryforwards - federal	5,681		3,814
Net operating loss carryforwards - state	1,014		1,002
R&D credit	2,645		1,986
Total gross deferred tax assets	61,299		56,870
Less valuation allowance	(55,588)		(52,198)
Total deferred tax assets, net of valuation allowance	5,711		4,672
Deferred tax liabilities:
Amortization and depreciation	(6,434)		(4,471)
Unbilled accounts receivable, deferred for tax purposes	—		(853)


Total deferred tax liabilities	(6,434)		(5,324)
Net deferred tax liabilities	$	(723)	$	(652)

Components of Valuation Allowance

The components of the valuation allowance are as follows (in thousands):


	Balance Beginning of Period		Additions		Recoveries		Balance End of Period

December 31, 2021	$	52,198	$	3,390	$	—	$	55,588
December 31, 2020	$	7,206	$	44,992	$	—	$	52,198
December 31, 2019	$	6,652	$	554	$	—	$	7,206

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands):


	2021		2020		2019
Unrecognized tax benefits, beginning of period	$	763	$	714	$	649
Increase (decrease) in prior year tax positions	90		(104)		1
Increase related to current year tax positions	273		213		101
Decrease related to lapse of statutes	(70)		(60)		(37)
Unrecognized tax benefits, end of period	$	1,056	$	763	$	714

Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Lease, Cost

The weighted average remaining lease terms and discount rates were as follows:


	Years Ended December 31,
	2021		2020
Weighted average remaining lease term (in years):
Finance leases	7.3 years		8.3 years
Operating leases	1.7 years		2.5 years
Weighted average discount rate:
Finance leases	5.04	%	5.04	%
Operating leases	5.75	%	5.75	%

The components of lease expense were as follows (in thousands):


	Years Ended December 31,
	2021		2020
Operating lease cost	$	713	$	724
Short-term lease cost (1)	13		93
Finance lease cost
Amortization of finance lease assets	1,221		1,221
Interest on finance lease liabilities	758		822
Total finance lease cost	1,979		2,043
Total lease costs	$	2,705	$	2,860

(1)Leases that have terms of 12 months or less.

Supplemental cash flow information related to leases was as follows (in thousands):


	Years Ended December 31,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Cash flows from operating activities - operating leases	$	768	$	745
Cash flows from operating activities - finance leases	$	758	$	820
Cash flows from financing activities - finance leases	$	1,339	$	1,225

Lessee, Operating Lease, Liability, Maturity

Future minimum lease commitments at December 31, 2021 were as follows (in thousands):


	Operating Leases		Finance Leases
2022	$	602	$	2,149
2023	373		2,202
2024	28		2,258
2025	—		2,314
2026	—		2,372
After 2026	—		5,972
Total minimum lease payments	1,003		17,267
Less imputed interest	(51)		(2,966)
Net present value of minimum lease payments	952		14,301
Less current portion	(564)		(1,461)
Long-term lease obligations at December 31, 2021	$	388	$	12,840

Finance Lease, Liability, Fiscal Year Maturity

Future minimum lease commitments at December 31, 2021 were as follows (in thousands):


	Operating Leases		Finance Leases
2022	$	602	$	2,149
2023	373		2,202
2024	28		2,258
2025	—		2,314
2026	—		2,372
After 2026	—		5,972
Total minimum lease payments	1,003		17,267
Less imputed interest	(51)		(2,966)
Net present value of minimum lease payments	952		14,301
Less current portion	(564)		(1,461)
Long-term lease obligations at December 31, 2021	$	388	$	12,840

Segment Information (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment


	Years Ended December 31,
	2021		2020		2019
	(in thousands)
Revenues
Security Solutions	$	123,534	$	127,667	$	111,843
Secure Networks	118,899		62,627		57,295
Inter-segment elimination	—		(10,377)		(9,920)
Consolidated revenue	$	242,433	$	179,917	$	159,218

Gross profit
Security Solutions	$	64,904	$	50,458	$	42,056
Secure Networks	21,125		11,962		10,288
Total gross profit	$	86,029	$	62,420	$	52,344

Composition of Certain Financial Statement Captions (Tables)

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Condensed Balance Sheet


	December 31,
	2021		2020
Balance Sheets
Accounts payable and other accrued liabilities
Accounts payable	$	9,248	$	14,662
Accrued liabilities	25,300		6,237
	$	34,548	$	20,899

Revision of Interim Financial Statements (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Changes and Error Corrections [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

The impact of the correction on the Company's previously issued quarterly consolidated financial statements was as follows (in thousands, except per share data):


Adjustments to the period ended March 31, 2021

	Three Months Ended March 31, 2021
	Previously Reported	Error Correction	As Adjusted
Condensed Consolidated Statement of Operations
Cost of sales - Services	39,602	(112)	39,490
Costs and expenses	41,400	(112)	41,288
General and administrative	19,964	112	20,076
Selling, general and administrative expenses	27,851	112	27,963



Condensed Consolidated Statement of Cash Flows


Changes in other operating assets and liabilities	$	(9,584)	$	2,436	$	(7,148)
Cash used in operating activities	(9,318)		2,436		(6,882)
Distribution to Telos ID Class B member - non-controlling interest	—		(2,436)		(2,436)
Cash used in financing activities	(321)		(2,436)		(2,757)


Adjustments to the period ended June 30, 2021

	Three Months Ended June 30, 2021						Six Months Ended June 30, 2021
	Previously Reported		Error Correction		As Adjusted		Previously Reported		Error Correction		As Adjusted
Condensed Consolidated Statement of Operations
Revenue - Services	$	47,618	$	1,385	$	49,003	$	99,676	$	1,385	$	101,061
Revenue - Products	4,941		(300)		4,641		8,641		(300)		$	8,341
Revenue	52,559		1,085		53,644		108,317		1,085		$	109,402
Cost of sales - Services	29,501		(892)		28,609		69,103		(1,004)		$	68,099
Costs and expenses	32,002		(892)		31,110		73,402		(1,004)		$	72,398
General and administrative	28,743		892		29,635		48,708		1,004		$	49,712
Selling, general and administrative expenses	39,113		892		40,005		66,965		1,004		$	67,969
Operating loss	(18,556)		1,085		(17,471)		(32,050)		1,085		$	(30,965)
Loss before income taxes	(18,716)		1,085		(17,631)		(33,460)		1,085		$	(32,375)
Net loss	(18,729)		1,085		(17,644)		(33,507)		1,085		$	(32,422)
Net loss attributable to Telos Corporation	(18,729)		1,085		(17,644)		(33,507)		1,085		$	(32,422)
Net loss per share attributable to Telos Corporation
Basic	$	(0.28)	$	0.02	$	(0.26)	$	(0.51)	$	0.02	$	(0.49)
Diluted	$	(0.28)	$	0.02	$	(0.26)	$	(0.51)	$	0.02	$	(0.49)


	Three Months Ended June 30, 2021						Six Months Ended June 30, 2021
	Previously Reported		Error Correction		As Adjusted		Previously Reported		Error Correction		As Adjusted
Condensed Consolidated Statement of Comprehensive Loss
Net loss	$	(18,729)	$	1,085	$	(17,644)	$	(33,507)	$	1,085	$	(32,422)
Comprehensive loss attributable to Telos Corporation	(18,724)		1,085		(17,639)		(33,534)		1,085		(32,449)


	June 30, 2021
	Previously Reported		Error Correction		As Adjusted
Condensed Consolidated Balance Sheet
Accounts receivable, net of reserve	$	39,412	$	1,085	$	40,497
Total current assets	178,403		1,085		179,488
Total assets	220,094		1,085		221,179
Accumulated deficit	(177,350)		1,085		(176,265)
Total stockholders' equity	164,700		1,085		165,785
Total liabilities and stockholders' equity	220,094		1,085		221,179


	Six Months Ended June 30, 2021
	Previously Reported		Error Correction		As Adjusted
Condensed Consolidated Statement of Cash Flows
Net loss	$	(33,507)	$	1,085	(32,422)
Changes in other operating assets and liabilities	(10,074)		1,351		(8,723)
Cash used in operating activities	(5,790)		2,436		(3,354)
Distribution to Telos ID Class B member - non-controlling interest	—		(2,436)		(2,436)
Cash provided by financing activities	35,474		(2,436)		33,038


	Three Months Ended June 30, 2021						Six Months Ended June 30, 2021
	Previously Reported		Error Correction		As Adjusted		Previously Reported		Error Correction		As Adjusted
Condensed Consolidated Statement of Changes in Stockholders' Equity
Net loss	$	(18,729)	$	1,085	$	(17,644)	$	(33,507)	$	1,085	$	(32,422)
Accumulated deficit	(177,350)		1,085		(176,265)		(177,350)		1,085		(176,265)
Total Stockholders' equity	164,700		1,085		165,785		164,700		1,085		165,785


Adjustments to the period ended September 30, 2021

	Three Months Ended September 30, 2021					Nine Months Ended September 30, 2021
	Previously Reported		Error Correction	As Adjusted		Previously Reported		Error Correction		As Adjusted
Condensed Consolidated Statement of Operations
Revenue - Services	63,690		(735)	62,955		$	163,366	$	650	$	164,016
Revenue - Products	6,376		(350)	6,026		15,017		(650)		14,367
Revenue	70,066		(1,085)	68,981		178,383		—		178,383
Cost of sales - Services	40,031		106	40,137		109,134		(898)		108,236
Costs and expenses	43,998		106	44,104		117,400		(898)		116,502
Research and development	5,396		(533)	4,863		14,783		(533)		14,250
General and administrative	20,562		(823)	19,739		69,271		181		69,452
Selling, general and administrative expenses	31,321		(1,356)	29,965		98,287		(352)		97,935
Operating loss	(5,253)		165	(5,088)		(37,304)		1,250		(36,054)
Loss before income taxes	(5,428)		165	(5,263)		(38,888)		1,250		(37,638)
Net loss	(5,387)		165	(5,222)		(38,894)		1,250		(37,644)
Net loss attributable to Telos Corporation	(5,387)		165	(5,222)		(38,894)		1,250		(37,644)
Net loss per share attributable to Telos Corporation
Basic	$	(0.08)	—	$	(0.08)	$	(0.59)	$	0.02	$	(0.57)
Diluted	$	(0.08)	—	$	(0.08)	$	(0.59)	$	0.02	$	(0.57)


	Three Months Ended September 30, 2021						Nine Months Ended September 30, 2021
	Previously Reported		Error Correction		As Adjusted		Previously Reported		Error Correction		As Adjusted
Condensed Consolidated Statement of Comprehensive Loss
Net loss	$	(5,387)	$	165	$	(5,222)	$	(38,894)	$	1,250	$	(37,644)
Comprehensive loss attributable to Telos Corporation	(5,400)		165		(5,235)		(38,934)		1,250		(37,684)


	September 30, 2021
	Previously Reported		Error Correction		As Adjusted
Condensed Consolidated Balance Sheet
Accounts receivable, net of reserve	$	49,759	$	(1,085)	$	48,674
Total current assets	192,300		(1,085)		191,215
Goodwill	16,642		1,280		17,922
Intangible assets, net	17,102		(747)		16,355
Total assets	242,667		(552)		242,115
Accounts payable and other accrued liabilities	35,102		(898)		34,204
Total current liabilities	54,410		(898)		53,512
Total liabilities	71,176		(898)		70,278
Additional paid-in capital	354,119		181		354,300
Accumulated deficit	(182,737)		165		(182,572)
Total stockholders' equity	171,491		346		171,837
Total liabilities and stockholders' equity	242,667		(552)		242,115


	Nine Months Ended September 30, 2021
	Previously Reported		Error Correction		As Adjusted
Condensed Consolidated Statement of Cash Flows
Net loss	$	(38,894)	$	1,250	$	(37,644)
Stock-based compensation	47,197		181		47,378
Changes in other operating assets and liabilities	(5,900)		1,538		(4,362)
Cash used in operating activities	6,668		2,969		9,637
Capitalized software development costs	(6,139)		(533)		(6,672)
Cash used in investing activities	(13,709)		(533)		(14,242)
Distribution to Telos ID Class B member - non-controlling interest	—		(2,436)		(2,436)
Cash provided by financing activities	35,131		(2,436)		32,695


	Three Months Ended September 30, 2021						Nine Months Ended September 30, 2021
	Previously Reported		Error Correction		As Adjusted		Previously Reported		Error Correction		As Adjusted
Condensed Consolidated Statement of Changes in Stockholders' Equity
Net loss	$	(5,387)	$	165	$	(5,222)	$	(38,894)	$	1,250	$	(37,644)
Additional paid-in capital	354,119		181		354,300		354,119		181		354,300
Accumulated deficit - beginning balance	(177,350)		1,085		(176,265)		(143,843)		—		(143,843)
Accumulated deficit - ending balance	(182,737)		165		(182,572)		(182,737)		165		(182,572)
Total Stockholders' Equity	171,491		346		171,837		171,491		346		171,837

Overview and Summary of Significant Accounting Policies - Narrative (Details)						3 Months Ended			6 Months Ended	9 Months Ended	12 Months Ended
	Apr. 19, 2021 USD ($) shares	Apr. 06, 2021 USD ($) $ / shares shares	Nov. 23, 2020 USD ($)	Nov. 19, 2020 USD ($) $ / shares shares	Nov. 12, 2020	Dec. 31, 2021 USD ($) segment	Sep. 30, 2021 $ / shares	Jun. 30, 2021 $ / shares	Jun. 30, 2021 $ / shares	Sep. 30, 2021 $ / shares	Dec. 31, 2021 USD ($) segment $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2019 USD ($) $ / shares shares
Business Acquisition [Line Items]
Stockholders' equity note, stock split, conversion ratio					0.794
Repurchase of common stock											$ 1,251,000	$ 0	$ 0
Proceeds from issuance of common stock											64,269,000	272,813,000	0
Repurchase of outstanding warrants											$ 26,894,000	0	0
Number of reportable segments \| segment						2					2
Number of operating segments \| segment						2					2
Inventory, gross						$ 2,100,000					$ 2,100,000	4,200,000
Other depreciation and amortization											3,100,000	2,900,000	2,500,000
Advertising expense											1,800,000	1,000,000	400,000
Goodwill, impairment loss											$ 0	$ 0	$ 0
Share-based compensation arrangement by share-based payment award, award vesting period											5 years
Earnings per share, basic (in dollars per share) \| $ / shares							$ (0.08)	$ (0.26)	$ (0.49)	$ (0.57)	$ (0.65)	$ 0.04	$ (0.17)
Earnings per share, diluted (in dollars per share) \| $ / shares							$ (0.08)	$ (0.26)	$ (0.49)	$ (0.57)	$ (0.65)	$ 0.04	$ (0.17)
Weighted-average common shares outstanding, basic (in shares) \| shares											66,374,000	41,642,000	37,729,000
Weighted-average shares of common stock outstanding, diluted (in shares) \| shares											66,374,000	42,877,000	37,729,000
Enlightenment Capital Solutions Fund II LP
Business Acquisition [Line Items]
Repurchase of common stock	$ 1,300,000
Stock repurchased during period (in shares) \| shares	39,682
Repurchase of outstanding warrants	$ 26,900,000
Warrant repurchased during period, shares (in shares) \| shares	900,970
Service Based RSU Awards
Business Acquisition [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period											3 years
Service Based RSU Awards \| Maximum
Business Acquisition [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period											3 years
Performance Shares
Business Acquisition [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period											3 years
Executive Officer \| Performance Shares
Business Acquisition [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period											3 years
Executive Officer \| Share-based Payment Arrangement, Tranche One \| Service Based RSU Awards
Business Acquisition [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage											30.00%
Executive Officer \| Share-based Payment Arrangement, Tranche Two \| Service Based RSU Awards
Business Acquisition [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage											30.00%
Executive Officer \| Share-based Payment Arrangement, Tranche Three \| Service Based RSU Awards
Business Acquisition [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage											40.00%
Exchangeable Redeemable Preferred Stock
Business Acquisition [Line Items]
Conversion of preferred stock to common stock			$ 108,900,000
Class B Common Stock
Business Acquisition [Line Items]
Stockholders' equity note, stock split, conversion ratio											1.259446
Earnings per share, basic (in dollars per share) \| $ / shares													$ (0.17)
Earnings per share, diluted (in dollars per share) \| $ / shares													$ (0.17)
Weighted-average common shares outstanding, basic (in shares) \| shares													3,204
Weighted-average shares of common stock outstanding, diluted (in shares) \| shares													3,204
Class A Common Stock
Business Acquisition [Line Items]
Stockholders' equity note, stock split, conversion ratio											1.259446
Earnings per share, basic (in dollars per share) \| $ / shares													$ (0.17)
Earnings per share, diluted (in dollars per share) \| $ / shares													$ (0.17)
Weighted-average common shares outstanding, basic (in shares) \| shares													34,525
Weighted-average shares of common stock outstanding, diluted (in shares) \| shares													34,525
IPO
Business Acquisition [Line Items]
Number of shares issued (in shares) \| shares				17,200,000
Share price (in dollars per share) \| $ / shares				$ 17.00
Net proceeds from initial public offering				$ 272,800,000
Repayments of debt				21,000,000
IPO \| Exchangeable Redeemable Preferred Stock
Business Acquisition [Line Items]
Conversion of preferred stock to common stock				108,900,000
Secondary Public Offering
Business Acquisition [Line Items]
Sale of stock, number of shares issued in transaction (in shares) \| shares		9,100,000
Sale of stock, price per share (in dollars per share) \| $ / shares		$ 33.00
Sale of stock, number of shares issued by certain existing shareholders (in shares) \| shares		7,000,000
Proceeds from issuance of common stock		$ 64,300,000
Telos ID
Business Acquisition [Line Items]
Business acquisition, percentage of voting interests acquired						100.00%					100.00%
Telos ID \| IPO \| Class B Common Stock
Business Acquisition [Line Items]
Repurchase of common stock				$ 30,000,000

Overview and Summary of Significant Accounting Policies - Allowance for Obsolescent Inventory (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Inventory Obsolescence [Roll Forward]
Balance Beginning of Year	$ 851	$ 860	$ 520
Additions Charge to Costs and Expense	10	(1)	376
Recoveries	0	(8)	(36)
Balance End of Year	$ 861	$ 851	$ 860

Overview and Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - Furniture and equipment	12 Months Ended
	Dec. 31, 2021
Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years

Overview and Summary of Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	920	961
Class of warrant or right, exercise price of warrants or rights (in dollars per share)	$ 1.665
Unvested restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	520	60
Common stock warrants, exercisable at $1.665/sh.
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	400	901

Revenue - Narrative (Details) $ in Thousands	3 Months Ended	12 Months Ended
Revenue - Narrative (Details) $ in Thousands	Dec. 31, 2021 segment	Dec. 31, 2021 USD ($) segment	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Disaggregation of Revenue [Line Items]
Number of reportable segments \| segment	2	2
Contract with customer, liability, revenue recognized		$ 4,300	$ 5,300	$ 4,200
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation, percentage	85.80%	85.80%
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation, percentage	14.10%	14.10%
Revenue, remaining performance obligation, expected timing of satisfaction, period	2 years	2 years
Accounting Standards Update 2014-09
Disaggregation of Revenue [Line Items]
Contract with customer, asset, cumulative catch-up adjustment to revenue, modification of contract		$ 200
Revenue from Contract with Customer, Product and Service Benchmark \| Revenue Timing of Transfer of Goods or Service \| Transferred over Time
Disaggregation of Revenue [Line Items]
Concentration risk, percentage		91.00%	90.00%	90.00%
Revenue from Contract with Customer, Product and Service Benchmark \| Revenue Timing of Transfer of Goods or Service \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Concentration risk, percentage		9.00%	10.00%	10.00%
Federal Government \| Revenue from Contract with Customer, Product and Service Benchmark \| Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage		96.10%	95.40%	93.70%
Federal Government \| Accounts Receivable \| Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage		97.30%

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Jun. 30, 2021	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Total revenue	$ 68,981	$ 53,644	$ 109,402	$ 178,383	$ 242,433	$ 179,917	$ 159,218
Services
Disaggregation of Revenue [Line Items]
Total revenue	62,955	49,003	101,061	164,016	221,548	161,180	143,581
Products
Disaggregation of Revenue [Line Items]
Total revenue	$ 6,026	$ 4,641	$ 8,341	$ 14,367	20,885	18,737	15,637
Security Solutions
Disaggregation of Revenue [Line Items]
Total revenue					123,534	117,312	101,923
Security Solutions \| Services
Disaggregation of Revenue [Line Items]
Total revenue					102,649	100,422	86,286
Security Solutions \| Products
Disaggregation of Revenue [Line Items]
Total revenue					20,885	16,890	15,637
Secure Networks
Disaggregation of Revenue [Line Items]
Total revenue					118,899	62,605	57,295
Secure Networks \| Services
Disaggregation of Revenue [Line Items]
Total revenue					118,899	60,758	57,295
Secure Networks \| Products
Disaggregation of Revenue [Line Items]
Total revenue					0	1,847	0
Firm fixed-price \| Security Solutions
Disaggregation of Revenue [Line Items]
Total revenue					104,534	98,379	80,316
Firm fixed-price \| Secure Networks
Disaggregation of Revenue [Line Items]
Total revenue					107,770	53,324	51,313
Time-and-materials \| Security Solutions
Disaggregation of Revenue [Line Items]
Total revenue					12,433	12,617	14,100
Time-and-materials \| Secure Networks
Disaggregation of Revenue [Line Items]
Total revenue					28	838	469
Cost plus fixed fee \| Security Solutions
Disaggregation of Revenue [Line Items]
Total revenue					6,567	6,316	7,507
Cost plus fixed fee \| Secure Networks
Disaggregation of Revenue [Line Items]
Total revenue					11,101	8,443	5,513
Federal \| Security Solutions
Disaggregation of Revenue [Line Items]
Total revenue					114,159	109,410	92,336
Federal \| Secure Networks
Disaggregation of Revenue [Line Items]
Total revenue					$ 118,717	$ 62,267	$ 56,921
Federal \| Revenue from Contract with Customer, Product and Service Benchmark \| Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage					96.10%	95.40%	93.70%
U.S. Department of Defense \| Revenue from Contract with Customer, Product and Service Benchmark \| Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage					74.00%	65.00%	65.00%
Civilian \| Revenue from Contract with Customer, Product and Service Benchmark \| Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage					22.00%	30.00%	29.00%
State & Local, and Commercial \| Security Solutions
Disaggregation of Revenue [Line Items]
Total revenue					$ 9,375	$ 7,902	$ 9,587
State & Local, and Commercial \| Secure Networks
Disaggregation of Revenue [Line Items]
Total revenue					$ 182	$ 338	$ 374

Revenue - Contract with Customer, Contract Asset, Contract Liability, and Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue Recognition and Deferred Revenue [Abstract]
Unbilled receivables	$ 41,374	$ 19,161	$ 16,745
Contract liabilities	6,381	5,654	$ 6,337
Remaining performance obligation (funded backlog)	$ 123,479	$ 127,735

Accounts Receivables (Details) - USD ($)		12 Months Ended
Accounts Receivables (Details) - USD ($)	Jul. 15, 2016	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Billed accounts receivable		$ 18,586,000	$ 12,060,000
Unbilled receivables		41,374,000	19,161,000	$ 16,745,000
Allowance for doubtful accounts		(116,000)	(308,000)	(720,000)
Accounts receivable, net		59,844,000	30,913,000
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance Beginning of Year		308,000	720,000	306,000
Bad Debt Expenses		7,000	(412,000)	414,000
Write-offs / Recoveries		(199,000)	0	0
Balance End of Year		116,000	308,000	$ 720,000
Maximum limit of sold receivables	$ 10,000,000
Sold receivables during the period		0	0
Balance of sold receivables		$ 0	$ 0

Acquisition - Narrative (Details) - USD ($) $ in Thousands		12 Months Ended
Acquisition - Narrative (Details) - USD ($) $ in Thousands	Jul. 30, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Cash paid for acquisition		$ 5,925	$ 0	$ 0
Acquisition holdback		506	$ 0	$ 0
Goodwill, acquired during period		$ 3,006
Asset Purchase Agreement
Business Acquisition [Line Items]
Total consideration transferred	$ 6,700
Consideration transferred related to a pre-existing contractual arrangement	300
Cash paid for acquisition	5,900
Acquisition holdback	$ 600
Business combination, consideration transferred, liabilities incurred, cash holdback period	18 months
Business combination, contingent consideration, liability	$ 500
Business combination, recognized identifiable assets acquired and liabilities assumed, finite-lived intangibles	3,700
Goodwill, acquired during period	$ 3,000
Asset Purchase Agreement \| Minimum
Business Acquisition [Line Items]
Finite-lived intangible asset, useful life	3 years
Asset Purchase Agreement \| Maximum
Business Acquisition [Line Items]
Finite-lived intangible asset, useful life	8 years

Goodwill - Schedule of Goodwill (Details) $ in Thousands	12 Months Ended
Goodwill - Schedule of Goodwill (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 14,916
Acquired goodwill	3,006
Ending balance	17,922
Security Solutions
Goodwill [Roll Forward]
Beginning balance	0
Acquired goodwill	3,006
Ending balance	3,006
Secure Networks
Goodwill [Roll Forward]
Beginning balance	14,916
Acquired goodwill	0
Ending balance	$ 14,916

Goodwill - Narrative (Details)	3 Months Ended	12 Months Ended
Goodwill - Narrative (Details)	Dec. 31, 2021 segment	Dec. 31, 2021 USD ($) segment reportingUnit	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Goodwill [Line Items]
Number of reportable segments	2	2
Number of operating segments	2	2
Goodwill, impairment loss \| $		$ 0	$ 0	$ 0
Security Solutions
Goodwill [Line Items]
Number of reporting units \| reportingUnit		3

Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 25,892		$ 12,253
Accumulated Amortization	(6,693)		(4,833)
Net Carrying Value	$ 19,199	$ 16,355	7,420
Acquired technology
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	8 years
Gross Carrying Amount	$ 3,630		0
Accumulated Amortization	(256)		0
Net Carrying Value	$ 3,374		0
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	3 years
Gross Carrying Amount	$ 40		0
Accumulated Amortization	(5)		0
Net Carrying Value	$ 35		0
Software development costs
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	2 years
Gross Carrying Amount	$ 22,222		12,253
Accumulated Amortization	(6,432)		(4,833)
Net Carrying Value	$ 15,790		$ 7,420

Intangible Assets - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 1.9	$ 1.7	$ 1.8

Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 6,820
2023	7,657
2024	2,460
2025	703
2026	454
2027 and thereafter	1,105
Net Carrying Value	$ 19,199	$ 16,355	$ 7,420

Debt Obligations - Enlightenment Capital Credit Agreement (Details) $ / shares in Units, $ in Thousands							12 Months Ended
	Apr. 19, 2021 USD ($) $ / shares shares	Nov. 24, 2020 USD ($)	Mar. 26, 2020 USD ($) maturity_date_extension	Jul. 19, 2019 USD ($)	Mar. 31, 2018 qtr shares	Jan. 25, 2017 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares	Dec. 31, 2020 USD ($) $ / shares	Dec. 31, 2019 USD ($)	Jul. 18, 2019 USD ($)
Debt Instrument [Line Items]
Class of warrant or right, exercise price of warrants or rights (in dollars per share) \| $ / shares							$ 1.665
Number of quarterly maturity date extensions \| maturity_date_extension			4
Amount of increase in quarterly exit fee payable			$ 250
Amount of increase in exit fee payable			1,000
Amendment fee and out-of-pocket costs and expenses			$ 100
Repayments of senior debt							$ 0	$ 17,351	$ 0
Loss on debt debt extinguishment							0	(275)	0
Repurchase of outstanding warrants							26,894	0	0
Repurchase of common stock							$ 1,251	$ 0	0
Common stock, par value (in dollars per share) \| $ / shares							$ 0.001	$ 0.001
Enlightenment Capital Solutions Fund II LP
Debt Instrument [Line Items]
Long-term line of credit				$ 16,000
Exit fee				$ 1,200						$ 825
Debt instrument, interest rate, effective percentage				17.30%
Line of credit facility, increase (decrease), net				$ 5,000
Prepayment price percentage for January 26, 2019 to January 25, 2020				102.00%
Prepayment price percentage for January 26, 2020 to October 14, 2020				101.00%
Agent fee				$ 110
Stock repurchased during period (in shares) \| shares	39,682
Repurchase of outstanding warrants	$ 26,900
Repurchase of common stock	$ 1,300
Warrants acquired, average cost per share (in dollars per share) \| $ / shares	$ 29.85
Treasury stock acquired, average cost per share (in dollars per share) \| $ / shares	31.51
Common stock, par value (in dollars per share) \| $ / shares	$ 0.001
Credit Agreement
Debt Instrument [Line Items]
Exit fee		$ 1,200					$ 825
Debt instrument, interest rate, effective percentage							15.00%
Credit agreement transaction costs							$ 374
Increase in interest rate					1.00%
Number of consecutive quarters \| qtr					2
Repayments of senior debt		17,400
Accrued interest		138
Legal fees		13
Loss on debt debt extinguishment		$ 138
Interest expense								$ 2,700	$ 2,200
Class A Common Stock \| Enlightenment Capital Solutions Fund II LP
Debt Instrument [Line Items]
Class of warrant or right, number of securities called by warrants or rights (in shares) \| shares						900,970
Percentage of warrants issued of common equity interests						2.50%
Class of warrant or right, exercise price of warrants or rights (in dollars per share) \| $ / shares						$ 1.665
Class A Common Stock \| Credit Agreement \| Emmett Wood
Debt Instrument [Line Items]
Number of shares held by Chief Executive Officer (in shares) \| shares					50,000
Term Loan \| Enlightenment Capital Solutions Fund II LP
Debt Instrument [Line Items]
Long-term line of credit						$ 11,000
Debt instrument, interest rate, stated percentage						13.00%

Debt Obligations - Subordinated Debt (Details) - Porter - Subordinated Loan Agreements and Promissory Notes - Affiliated Entity - USD ($) $ in Thousands				12 Months Ended
	Apr. 18, 2017	Apr. 17, 2017	Mar. 31, 2015	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Proceeds from related party, debt			$ 2,500
Related party transaction, rate	6.00%	12.00%	12.00%
Interest expense, related party				$ 319	$ 330
Telos Corporation
Debt Instrument [Line Items]
Noncontrolling interest, ownership percentage by noncontrolling owners			35.00%

Exchangeable Redeemable Preferred Stock Conversion (Details) $ / shares in Units, $ in Thousands			1 Months Ended	3 Months Ended	12 Months Ended					24 Months Ended
	Nov. 23, 2020 USD ($) $ / shares shares	Nov. 19, 2020 USD ($) $ / shares	Nov. 30, 1998 shares	Jun. 30, 2006 USD ($)	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) shares	Dec. 31, 2019 USD ($) shares	Dec. 31, 1991 $ / shares shares	Dec. 31, 1990 $ / shares shares	Dec. 31, 1991 $ / shares
Class of Stock [Line Items]
Preferred stock authorized (in shares)					10,000,000
Preferred stock, par or stated value per share (in dollars per share) \| $ / shares					$ 0.01
Preferred stock, shares issued (in shares)					0	0
Preferred stock, shares outstanding (in shares)					0	0
Conversion of stock, amount converted \| $					$ 0	$ 19,213	$ 0
Gain (loss) on extinguishment of debt \| $					$ 0	(275)	$ 0
Exchangeable Redeemable Preferred Stock
Class of Stock [Line Items]
Preferred stock, liquidation preference (in dollars per share) \| $ / shares								$ 10		$ 10
Liquidation value in cash transaction in condition 1					0.90
Liquidation value amount as per cash transaction in condition 2					0.85
Liquidation value in issuance of shares common stock in condition 1					0.90
Liquidation value in issuance of shares common stock in condition 2					0.15
Number of fractional shares (in shares)					0
Conversion per share amount (in dollars per share) \| $ / shares		$ 10
Conversion of stock, amount converted \| $		$ 142,300
Conversion of preferred stock to common stock \| $	$ 108,900
Number of shares stock holder received (in shares)	1,100,000
Preferred stock, redemption price per share (in dollars per share) \| $ / shares	$ 17
Conversion of stock, amount issued \| $	$ 19,200
Preferred stock redemption costs \| $	200
Gain (loss) on extinguishment of debt \| $	$ 14,000
Public Preferred Stock
Class of Stock [Line Items]
Preferred stock authorized (in shares)									6,000,000
Preferred stock, par or stated value per share (in dollars per share) \| $ / shares									$ 0.01
Preferred stock, shares issued (in shares)							3,185,586		2,858,723
Adjusted accrued accretion of public preferred stock \| $				$ 1,500
Preferred stock dividends (in shares)								736,863	736,863
Redemption of public preferred stock (in shares)			410,000
Preferred stock, shares outstanding (in shares)							3,185,586
Preferred stock, dividend rate, percentage								6.00%	6.00%	12.00%
Preferred stock dividend rate per annum (in dollars per share) \| $ / shares								$ 0.60	$ 0.60	$ 1.20
Dividends on preferred stock \| $						$ 3,400	$ 3,800

Non-Controlling Interests/Purchase of Telos ID - Narrative (Details) $ / shares in Units, $ in Thousands, shares in Millions					1 Months Ended		3 Months Ended		6 Months Ended	9 Months Ended	12 Months Ended
	Nov. 23, 2020 USD ($) $ / shares shares	Dec. 24, 2014 USD ($) member membershipUnitClass	Apr. 20, 2007 USD ($)	Apr. 19, 2007	Jan. 31, 2021 USD ($)	Dec. 31, 2020	Sep. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Apr. 11, 2007 USD ($)
Noncontrolling Interest [Line Items]
Cash paid for acquisition											$ 5,925	$ 0	$ 0
Additional percentage of ownership interest						50.00%
Net (loss) income							$ (5,222)	$ (17,644)	$ (32,422)	$ (37,644)	$ (43,134)	6,841	(2,137)
Distributions												5,179	2,371
Telos ID
Noncontrolling Interest [Line Items]
Net book value of assets contributed														$ 17
Sale of stock, percentage of ownership before transaction				99.999%
Noncontrolling interest, ownership percentage by noncontrolling owners				0.001%
Percentage of membership interest sold to investor		10.00%	39.999%
Cash consideration received on sale of membership interest		$ 5,000	$ 6,000
Gain (loss) on disposition of stock in subsidiary			$ 5,800
Sale of stock, percentage of ownership after transaction			60.00%
Number of members in board of director \| member		5
Classes of membership units \| membershipUnitClass		2
Telos ID
Noncontrolling Interest [Line Items]
Cash paid for acquisition	$ 30,000
Number of shares issued in acquisition (in shares) \| shares	7.3
Share price (in dollars per share) \| $ / shares	$ 20.39
Value of stock issued	$ 148,400
Total consideration transferred	178,400
Issuance of common stock on APIC	148,400
Non-controlling interest in APIC	$ 173,900
Additional percentage of ownership interest	50.00%
Impact of ownership interest on APIC	$ 25,500
Class A Membership Unit
Noncontrolling Interest [Line Items]
Net (loss) income												5,200	4,300
Class A Membership Unit \| Telos ID
Noncontrolling Interest [Line Items]
Sale of stock, percentage of ownership after transaction		50.00%
Number of directors entitled to be appointed \| member		3
Percentage of profit and loss allocated		50.00%
Class B Membership Unit
Noncontrolling Interest [Line Items]
Distributions					$ 2,400							$ 2,800	$ 2,400
Class B Membership Unit \| Telos ID
Noncontrolling Interest [Line Items]
Sale of stock, percentage of ownership after transaction		50.00%
Number of directors entitled to be appointed \| member		2
Percentage of profit and loss allocated		50.00%

Non-Controlling Interests/Purchase of Telos ID - Changes in Non-Controlling Interest (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Net income	$ 0	$ 5,154	$ 4,264
Distributions		(5,179)	(2,371)
Sale of 50% membership interest		(30,000)
Non-Controlling Interest
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Non-controlling interest, beginning of period	$ 0	4,514	2,621
Net income		5,154	4,264
Distributions		(5,179)	(2,371)
Sale of 50% membership interest		(4,489)	0
Non-controlling interest, end of period		$ 0	$ 4,514

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which is directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent (that is, noncontrolling interest, previously referred to as minority interest).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03(a)(24))
-URI http://asc.fasb.org/extlink&oid=120400017&loc=d3e572229-122910

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.31)
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(22))
-URI http://asc.fasb.org/extlink&oid=120398452&loc=d3e534808-122878

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

+ Details

Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands		12 Months Ended
	Nov. 12, 2020	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2019 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares authorized (in shares)		250,000,000	250,000,000
Common stock, par value (in dollars per share) \| $ / shares		$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)		10,000,000
Preferred stock, par or stated value per share (in dollars per share) \| $ / shares		$ 0.01
Conversion of stock, shares converted (in shares)		1
Stockholders' equity note, stock split, conversion ratio	0.794
Common stock, shares, issued (in shares)		66,767,450	64,625,071
Common stock, shares, outstanding (in shares)		66,767,450	64,625,071
Preferred stock, shares issued (in shares)		0	0
Preferred stock, shares outstanding (in shares)		0	0
Repurchase of common stock \| $		$ 1,251	$ 0	$ 0
Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stockholders' equity note, stock split, conversion ratio		1.259446
Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stockholders' equity note, stock split, conversion ratio		1.259446

Stockholders' Equity - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Stockholders' Equity Note [Abstract]
Cumulative foreign currency translation loss	$ (134)	$ (63)
Cumulative actuarial gain on pension liability adjustment in Teloworks	107	107
Accumulated other comprehensive (loss) income	$ (27)	$ 44

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

Employee Benefit Plan (Details) - USD ($) $ in Thousands	12 Months Ended
Employee Benefit Plan (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Stock issued during period, shares, employee benefit plan (in shares)	1,031,718
Defined contribution plan, employer matching contribution, percent of match	50.00%
Defined contribution plan, maximum annual contributions per employee, percent	2.00%
Annual vesting percentage	20.00%
Share-based compensation arrangement by share-based payment award, award vesting period	5 years
Defined benefit plan, plan assets, contributions by employer	$ 200	$ 200	$ 200

- Definition

Amount of contribution received by defined benefit plan from employer which increases plan assets.

+ References + Details

Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands		1 Months Ended	5 Months Ended	12 Months Ended
	May 31, 2020 USD ($) shares	May 31, 2017 shares	May 31, 2020 shares	Dec. 31, 2021 USD ($) day $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2019 shares	Dec. 31, 2018 shares	Oct. 31, 2020 shares	Sep. 30, 2020 shares	Dec. 31, 2017 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock remained subject to vesting (in shares)					59,521
Share-based compensation arrangement by share-based payment award, award vesting period				5 years
Share-based payment arrangement, expense \| $				$ 60,231	$ 4
2016 Omnibus Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares)								9,400,000	4,500,000
Common stock, capital shares reserved for future issuance (in shares)				5,600,000
2016 Omnibus Long-Term Incentive Plan \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period				2 years
2016 Omnibus Long-Term Incentive Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period				3 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock vested on date of grant				25.00%
Restricted stock vest on anniversary of the date of grant				25.00%
Share-based compensation arrangement by share-based payment award, non-option equity instruments, granted (in shares)	79,361	3,972,007				0	0
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number (in shares)	3,845,030		3,845,030			3,892,646	3,904,550			3,948,199
Share-based compensation arrangement by share-based payment award, non-option equity instruments, forfeitures (in shares)			47,616			11,904	43,649
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value \| $	$ 14
Share-based Payment Arrangement, Option \| 2016 Omnibus Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, expiration period				10 years
Service Based RSU Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock remained subject to vesting (in shares)				3,030,608	59,521
Share-based compensation arrangement by share-based payment award, award vesting period				3 years
Share-based payment arrangement, expense \| $				$ 46,800
Share-based payment arrangement, nonvested award, cost not yet recognized, amount \| $				$ 61,500
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition				1 year 3 months 18 days
Granted (in shares)				3,206,283
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, weighted average grant date fair value \| $ / shares				$ 34.94	$ 0.18
Service Based RSU Awards \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period				3 years
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock remained subject to vesting (in shares)				492,727	0
Share-based compensation arrangement by share-based payment award, award vesting period				3 years
Share-based payment arrangement, expense \| $				$ 13,500
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition				3 months 18 days
Granted (in shares)				508,903
Share-based compensation arrangement by share-based payment award, fair value assumptions, risk free interest rate, minimum				0.18%
Share-based compensation arrangement by share-based payment award, fair value assumptions, risk free interest rate, maximum				0.29%
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, weighted average grant date fair value \| $ / shares				$ 30.07	$ 0
Share-based payment arrangement, nonvested award, excluding option, cost not yet recognized, amount \| $				$ 1,400
Performance Shares \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period				3 years
Granted (in shares)				458,903
Share-based compensation arrangement by share-based payment award, award vesting threshold stock price trigger (in dollars per share) \| $ / shares				$ 42.50
Share-based compensation arrangement by share-based payment award, award vesting threshold, trading days \| day				20
Share-based compensation arrangement by share-based payment award, award vesting threshold, consecutive trading days \| day				30
Weighted average of consecutive trading days, required for shares equal to target price				30 days
Performance Shares \| Certain Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period				3 years
Granted (in shares)				50,000
Performance Shares \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected term				2 years 5 months 12 days
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected volatility rate				57.40%
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, weighted average grant date fair value \| $ / shares				$ 19.12
Share-based compensation arrangement by share-based payment award, award requisite service period				4 months 17 days
Performance Shares \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected term				2 years 11 months 1 day
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected volatility rate				58.80%
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, weighted average grant date fair value \| $ / shares				$ 30.84
Share-based compensation arrangement by share-based payment award, award requisite service period				9 months 3 days

Stock-Based Compensation - Stock-Based Compensation Expense Incurred (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 60,231	$ 4
Cost of sales - services \| Services
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	2,640	0
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	7,189	0
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	3,268	0
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 47,134	$ 4

Stock-Based Compensation - Service-Based RSU Awards (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Number of Shares
Outstanding, beginning balance (in shares)	59,521
Outstanding, ending balance (in shares)		59,521
Service Based RSU Awards
Number of Shares
Outstanding, beginning balance (in shares)	59,521
Granted (in shares)	3,206,283
Vested (in shares)	(132,020)
Forfeited (in shares)	(103,176)
Outstanding, ending balance (in shares)	3,030,608	59,521
Weighted- Average Grant Date Fair Value (per share)
Outstanding, beginning balance (in dollars per share)	$ 0.18
Granted (in dollars per share)	34.92
Vested (in dollars per share)	33.99
Forfeited (in dollars per share)	35.45
Outstanding, ending balance (in dollars per share)	$ 34.94	$ 0.18
Weighted- Average Contractual Life (years)
Outstanding	1 year 3 months 18 days	2 years 4 months 24 days
Aggregate Intrinsic Value (in thousands)
Outstanding	$ 46,700	$ 2,000

Stock-Based Compensation - Performance-Based RSU Awards (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) $ / shares shares
Number of Shares
Outstanding, beginning balance (in shares)	59,521
Outstanding, ending balance (in shares)
Performance Shares
Number of Shares
Outstanding, beginning balance (in shares)	0
Granted (in shares)	508,903
Vested (in shares)	0
Forfeited (in shares)	(16,176)
Outstanding, ending balance (in shares)	492,727
Weighted- Average Grant Date Fair Value (per share)
Outstanding, beginning balance (in dollars per share) \| $ / shares	$ 0
Granted (in dollars per share) \| $ / shares	30.09
Vested (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	30.84
Outstanding, ending balance (in dollars per share) \| $ / shares	$ 30.07
Weighted- Average Contractual Life (years)
Outstanding	2 years 2 months 12 days
Aggregate Intrinsic Value (in thousands)
Outstanding \| $	$ 7,600

Income Taxes (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current (benefit) provision
Federal		$ 0	$ 0	$ 25
State		(98)	(77)	68
Total current		(98)	(77)	93
Deferred provision (benefit)
Federal		19	27	88
State		51	4	(285)
Total deferred		70	31	(197)
Total benefit		$ (28)	$ (46)	$ (104)
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Computed expected income tax provision		21.00%	21.00%	21.00%
State income taxes, net of federal income tax benefit		1.50%	1.00%	(0.70%)
Change in valuation allowance for deferred tax assets		(7.90%)	17.00%	(24.70%)
Cumulative deferred adjustments		0.00%	0.70%	(1.10%)
Provision to return adjustments		(0.40%)	0.50%	1.30%
Other permanent differences		(0.20%)	1.00%	(3.80%)
Dividend and accretion on preferred stock		0.00%	10.50%	(35.80%)
Gain on redemption of preferred stock		0.00%	(43.30%)	0.00%
Section 162(m) limitation - covered employees		(16.00%)	14.60%	(6.90%)
Capitalization of IPO transaction costs		0.00%	4.40%	0.00%
FIN 48 liability		(0.60%)	0.20%	(3.70%)
R&D credit		2.70%	(12.40%)	19.00%
Non-controlling interest		0.00%	(15.90%)	40.00%
Effective income tax rate		0.10%	(0.70%)	4.60%
Deferred tax assets:
Accounts receivable, principally due to allowance for doubtful accounts	$ 78	$ 29	$ 78
Allowance for inventory obsolescence and amortization	398	315	398
Accrued liabilities not currently deductible	2,204	1,713	2,204
Stock-based compensation	0	7,993	0
Accrued compensation	1,161	648	1,161
Deferred rent	4,387	3,813	4,387
Section 163(j) interest limitation	306	54	306
Goodwill	41,534	37,394	41,534
Net operating loss carryforwards - federal	3,814	5,681	3,814
Net operating loss carryforwards - state	1,002	1,014	1,002
R&D credit	1,986	2,645	1,986
Total gross deferred tax assets	56,870	61,299	56,870
Less valuation allowance	(52,198)	(55,588)	(52,198)	$ (7,206)
Total deferred tax assets, net of valuation allowance	4,672	5,711	4,672
Deferred tax liabilities:
Amortization and depreciation	(4,471)	(6,434)	(4,471)
Unbilled accounts receivable, deferred for tax purposes	(853)	0	(853)
Total deferred tax liabilities	(5,324)	(6,434)	(5,324)
Net deferred tax liabilities	(652)	(723)	(652)
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance Beginning of Period		52,198	7,206	6,652
Additions		3,390	44,992	554
Recoveries		0	0	0
Balance End of Period	$ 52,198	55,588	52,198	7,206
Additional percentage of interest in partnership	50.00%
Deferred tax asset tax deductible goodwill	$ 43,800		43,800
Operating loss carryforwards		27,100
Deferred tax assets, operating loss carryforwards, subject to expiration		10,600
Deferred tax assets, tax credit carryforwards, research		3,500
Unrecognized tax benefits	763	1,056	763	714
Unrecognized tax benefits that would impact effective tax rate	278	174	278	369
Unrecognized tax benefits that would not impact effective tax rate	485	882	485	345
Unrecognized tax benefits, income tax penalties and interest accrued	241	170	241
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits, beginning of period		763	714	649
Increase in prior year tax positions		90		1
Decrease in prior year tax positions			(104)
Increase related to current year tax positions		273	213	101
Decrease related to lapse of statutes		(70)	(60)	(37)
Unrecognized tax benefits, end of period	$ 763	$ 1,056	$ 763	$ 714

Leases - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Leases - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 1996
Lessee, Lease, Description [Line Items]
Operating lease, weighted average discount rate, percent	5.75%	5.75%
Term of lease				15 years
Increase in capital leased property				$ 5.7
Net book value of capital asset				18.3
Capital lease obligations				22.0
Proceeds from assignment of purchase option under lease				1.7
Increase in capital lease obligations				$ 6.7
Operating lease, expense	$ 0.8	$ 1.9	$ 1.8
Capital Lease Obligations
Lessee, Lease, Description [Line Items]
Annual rent increase percentage	2.50%
Capital Lease Obligations \| Assets Held under Capital Leases
Lessee, Lease, Description [Line Items]
Term of lease					13 years	20 years
Capital leased property						$ 12.3
Increase in capital leased property					$ 11.7
Net book value of capital asset					13.1
Capital lease obligations					$ 15.5

Leases - Weighted Average Remaining Lease Term and Discount Rate (Details)	Dec. 31, 2021	Dec. 31, 2020
Weighted average remaining lease term (in years):
Finance lease, weighted average remaining lease term	7 years 3 months 18 days	8 years 3 months 18 days
Operating lease, weighted average remaining lease term	1 year 8 months 12 days	2 years 6 months
Weighted average discount rate:
Finance lease, weighted average discount rate, percent	5.04%	5.04%
Operating lease, weighted average discount rate, percent	5.75%	5.75%

Leases - Future Minimum Lease Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Operating Leases
2022	$ 602
2023	373
2024	28
2025	0
2026	0
After 2026	0
Total minimum lease payments	1,003
Less imputed interest	(51)
Net present value of minimum lease payments	952
Less current portion	(564)	$ (677)
Long-term lease obligations at December 31, 2021	388	941
Finance Leases
2022	2,149
2023	2,202
2024	2,258
2025	2,314
2026	2,372
After 2026	5,972
Total minimum lease payments	17,267
Less imputed interest	(2,966)
Net present value of minimum lease payments	14,301
Less current portion	(1,461)	(1,339)
Long-term lease obligations at December 31, 2021	$ 12,840	$ 14,301

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease cost	$ 713	$ 724
Short-term lease cost	13	93
Finance Lease Costs [Abstract]
Amortization of finance lease assets	1,221	1,221
Interest on finance lease liabilities	758	822
Total finance lease cost	1,979	2,043
Total lease costs	$ 2,705	$ 2,860

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Cash flows from operating activities - operating leases	$ 768	$ 745
Cash flows from operating activities - finance leases	758	820
Cash flows from financing activities - finance leases	$ 1,339	$ 1,225	$ 1,115

Certain Relationships and Related Transactions (Details) - USD ($) $ in Thousands				12 Months Ended
	Apr. 18, 2017	Apr. 17, 2017	Mar. 31, 2015	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Emmett Wood
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction				$ 492	$ 1,238	$ 529
Number of shares held by related party (in shares)				73,562	682,502
Director
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction				$ 282	$ 270	270
Porter \| Subordinated Loan Agreements and Promissory Notes \| Affiliated Entity
Related Party Transaction [Line Items]
Proceeds from related party, debt			$ 2,500
Related party transaction, rate	6.00%	12.00%	12.00%
Interest expense, related party					$ 319	$ 330
Porter \| Subordinated Loan Agreements and Promissory Notes \| Telos Corporation \| Affiliated Entity
Related Party Transaction [Line Items]
Noncontrolling interest, ownership percentage by noncontrolling owners			35.00%

Segment Information - Narrative (Details) - segment	3 Months Ended	12 Months Ended
Segment Information - Narrative (Details) - segment	Dec. 31, 2021	Dec. 31, 2021
Segment Reporting [Abstract]
Number of operating segments	2	2

Segment Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Jun. 30, 2021	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue
Consolidated revenue	$ 68,981	$ 53,644	$ 109,402	$ 178,383	$ 242,433	$ 179,917	$ 159,218
Gross profit
Total gross profit					86,029	62,420	52,344
Inter-segment elimination
Revenue
Consolidated revenue					0	(10,377)	(9,920)
Security Solutions
Revenue
Consolidated revenue					123,534	117,312	101,923
Security Solutions \| Operating Segments
Revenue
Consolidated revenue					123,534	127,667	111,843
Gross profit
Total gross profit					64,904	50,458	42,056
Secure Networks
Revenue
Consolidated revenue					118,899	62,605	57,295
Secure Networks \| Operating Segments
Revenue
Consolidated revenue					118,899	62,627	57,295
Gross profit
Total gross profit					$ 21,125	$ 11,962	$ 10,288

- Definition

Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

+ References

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+ Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Composition of Certain Financial Statement Captions (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Accounts payable and other accrued liabilities
Accounts payable	$ 9,248		$ 14,662
Accrued liabilities	25,300		6,237
Accounts payable and other accrued liabilities	$ 34,548	$ 34,204	$ 20,899

Revision of Interim Financial Statements - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2021	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Error Corrections and Prior Period Adjustments Restatement [Line Items]
General and administrative	$ 19,739	$ 29,635	$ 20,076	$ 49,712	$ 69,452	$ 88,742	$ 41,704	$ 30,721
Total revenue	68,981	53,644		109,402	178,383	242,433	179,917	159,218
Selling, general and administrative expenses	29,965	40,005	27,963	67,969	97,935	127,493	62,123	47,319
Distributions to Telos ID Class B member - non-controlling interest			2,436	2,436	2,436	2,436	2,743	2,371
Goodwill	17,922				17,922	17,922	14,916
Products
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue	6,026	4,641		8,341	14,367	20,885	18,737	15,637
Services
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue	62,955	49,003		101,061	164,016	$ 221,548	$ 161,180	$ 143,581
Error Correction
Error Corrections and Prior Period Adjustments Restatement [Line Items]
General and administrative	(823)	892	112	1,004	181
Total revenue	(1,085)	1,085		1,085	0
Selling, general and administrative expenses	(1,356)	892	112	1,004	(352)
Distributions to Telos ID Class B member - non-controlling interest			2,436	2,436	2,436
Goodwill	1,280				1,280
Error Correction \| Products
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue	(350)	(300)		(300)	(650)
Error Correction \| Services
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue	(735)	1,385		1,385	$ 650
Error Correction \| Single Individual Stock Compensation
Error Corrections and Prior Period Adjustments Restatement [Line Items]
General and administrative		(200)	$ (100)	$ (300)
Selling, general and administrative expenses	200
Error Correction \| Overhead Cost Pools Stock Compensation
Error Corrections and Prior Period Adjustments Restatement [Line Items]
General and administrative		(700)
Error Correction \| Expense Related to a Contract
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Selling, general and administrative expenses	900
Error Correction \| Expense Related to Software Project
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Selling, general and administrative expenses	500
Error Correction \| Revenue Related to Stub Period of a Contract \| Products
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue	(400)	(300)
Error Correction \| Revenue Related to Stub Period of a Contract \| Services
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue	$ 400	$ 300

Revision of Interim Financial Statements - Schedule of Error Corrections and Prior Period Adjustments (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2021	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Condensed Consolidated Statement of Operations
Total revenue	$ 68,981	$ 53,644		$ 109,402	$ 178,383	$ 242,433	$ 179,917	$ 159,218
Total costs and expenses						156,404	117,497	106,874
Research and development	4,863				14,250	19,096	14,243	10,647
General and administrative	19,739	29,635	$ 20,076	49,712	69,452	88,742	41,704	30,721
Selling, general and administrative expenses	29,965	40,005	27,963	67,969	97,935	127,493	62,123	47,319
Operating loss	(5,088)	(17,471)		(30,965)	(36,054)	(41,464)	297	5,025
Loss before income taxes	(5,263)	(17,631)		(32,375)	(37,638)	(43,162)	6,795	(2,241)
Net loss	(5,222)	(17,644)		(32,422)	(37,644)	(43,134)	6,841	(2,137)
Net loss attributable to Telos Corporation	$ (5,222)	$ (17,644)		$ (32,422)	$ (37,644)	$ (43,134)	$ 1,687	$ (6,401)
Net loss per share attributable to Telos Corporation
Basic (in dollars per share)	$ (0.08)	$ (0.26)		$ (0.49)	$ (0.57)	$ (0.65)	$ 0.04	$ (0.17)
Diluted (in dollars per share)	$ (0.08)	$ (0.26)		$ (0.49)	$ (0.57)	$ (0.65)	$ 0.04	$ (0.17)
Condensed Consolidated Statement of Cash Flows
Net loss	$ (5,222)	$ (17,644)		$ (32,422)	$ (37,644)	$ (43,134)	$ 6,841	$ (2,137)
Stock-based compensation					47,378	60,231	4	0
Changes in other operating assets and liabilities			(7,148)	(8,723)	(4,362)
Cash used in operating activities			(6,882)	(3,354)	9,637	7,262	(2,104)	11,816
Capitalized software development costs					(6,672)	(9,968)	(6,681)	(2,442)
Cash used in investing activities					(14,242)	(19,094)	(7,461)	(6,532)
Distributions to Telos ID Class B member – non-controlling interest			(2,436)	(2,436)	(2,436)	(2,436)	(2,743)	(2,371)
Cash used in financing activities			(2,757)	33,038	32,695	32,349	108,859	1,395
Condensed Consolidated Statement of Comprehensive Loss
Net loss	(5,222)	(17,644)		(32,422)	(37,644)	(43,134)	6,841	(2,137)
Comprehensive loss attributable to Telos Corporation	(5,235)	(17,639)		(32,449)	(37,684)	(43,205)	1,725	(6,412)
Condensed Consolidated Balance Sheet
Accounts receivable, net	48,674	40,497		40,497	48,674	59,844	30,913
Total current assets	191,215	179,488		179,488	191,215	191,714	144,114
Goodwill	17,922				17,922	17,922	14,916
Intangible assets, net	16,355				16,355	19,199	7,420
Total assets	242,115	221,179		221,179	242,115	246,081	183,817
Accounts payable and other accrued liabilities	34,204				34,204	34,548	20,899
Total current liabilities	53,512				53,512	50,941	38,946
Total liabilities	70,278				70,278	65,827	56,713
Additional paid-in capital	354,300				354,300	367,153	270,800
Accumulated deficit	(182,572)	(176,265)		(176,265)	(182,572)	(186,977)	(143,843)
Total stockholders’ equity	171,837	165,785		165,785	171,837	180,254	127,104	(136,622)	$ (132,103)
Total liabilities and stockholders' equity	242,115	221,179		221,179	242,115	246,081	183,817
Condensed Consolidated Statement of Changes in Stockholders' Equity
Net loss	(5,222)	(17,644)		(32,422)	(37,644)	(43,134)	6,841	(2,137)
Total stockholders’ equity	171,837	165,785		165,785	171,837	180,254	127,104	(136,622)	(132,103)
Accumulated Deficit
Condensed Consolidated Statement of Operations
Net loss						(43,134)	1,687	(6,401)
Condensed Consolidated Statement of Cash Flows
Net loss						(43,134)	1,687	(6,401)
Condensed Consolidated Statement of Comprehensive Loss
Net loss						(43,134)	1,687	(6,401)
Condensed Consolidated Balance Sheet
Total stockholders’ equity	(182,572)	(176,265)		(176,265)	(182,572)	(186,977)	(143,843)	(145,530)	(139,129)
Condensed Consolidated Statement of Changes in Stockholders' Equity
Net loss						(43,134)	1,687	(6,401)
Total stockholders’ equity	(182,572)	(176,265)		(176,265)	(182,572)	(186,977)	(143,843)	(145,530)	(139,129)
Additional Paid–in Capital
Condensed Consolidated Balance Sheet
Total stockholders’ equity	354,300				354,300	367,153	270,800	4,310	4,310
Condensed Consolidated Statement of Changes in Stockholders' Equity
Total stockholders’ equity	354,300				354,300	367,153	270,800	4,310	$ 4,310
Previously Reported
Condensed Consolidated Statement of Operations
Total revenue	70,066	52,559		108,317	178,383
Research and development	5,396				14,783
General and administrative	20,562	28,743	19,964	48,708	69,271
Selling, general and administrative expenses	31,321	39,113	27,851	66,965	98,287
Operating loss	(5,253)	(18,556)		(32,050)	(37,304)
Loss before income taxes	(5,428)	(18,716)		(33,460)	(38,888)
Net loss	(5,387)	(18,729)		(33,507)	(38,894)
Net loss attributable to Telos Corporation	$ (5,387)	$ (18,729)		$ (33,507)	$ (38,894)
Net loss per share attributable to Telos Corporation
Basic (in dollars per share)	$ (0.08)	$ (0.28)		$ (0.51)	$ (0.59)
Diluted (in dollars per share)	$ (0.08)	$ (0.28)		$ (0.51)	$ (0.59)
Condensed Consolidated Statement of Cash Flows
Net loss	$ (5,387)	$ (18,729)		$ (33,507)	$ (38,894)
Stock-based compensation					47,197
Changes in other operating assets and liabilities			(9,584)	(10,074)	(5,900)
Cash used in operating activities			(9,318)	(5,790)	6,668
Capitalized software development costs					(6,139)
Cash used in investing activities					(13,709)
Distributions to Telos ID Class B member – non-controlling interest			0	0	0
Cash used in financing activities			(321)	35,474	35,131
Condensed Consolidated Statement of Comprehensive Loss
Net loss	(5,387)	(18,729)		(33,507)	(38,894)
Comprehensive loss attributable to Telos Corporation	(5,400)	(18,724)		(33,534)	(38,934)
Condensed Consolidated Balance Sheet
Accounts receivable, net	49,759	39,412		39,412	49,759
Total current assets	192,300	178,403		178,403	192,300
Goodwill	16,642				16,642
Intangible assets, net	17,102				17,102
Total assets	242,667	220,094		220,094	242,667
Accounts payable and other accrued liabilities	35,102				35,102
Total current liabilities	54,410				54,410
Total liabilities	71,176				71,176
Additional paid-in capital	354,119				354,119
Accumulated deficit	(182,737)	(177,350)		(177,350)	(182,737)
Total stockholders’ equity	171,491	164,700		164,700	171,491
Total liabilities and stockholders' equity	242,667	220,094		220,094	242,667
Condensed Consolidated Statement of Changes in Stockholders' Equity
Net loss	(5,387)	(18,729)		(33,507)	(38,894)
Total stockholders’ equity	171,491	164,700		164,700	171,491
Previously Reported \| Accumulated Deficit
Condensed Consolidated Balance Sheet
Total stockholders’ equity	(182,737)	(177,350)		(177,350)	(182,737)		(143,843)
Condensed Consolidated Statement of Changes in Stockholders' Equity
Total stockholders’ equity	(182,737)	(177,350)		(177,350)	(182,737)		(143,843)
Previously Reported \| Additional Paid–in Capital
Condensed Consolidated Balance Sheet
Total stockholders’ equity	354,119				354,119
Condensed Consolidated Statement of Changes in Stockholders' Equity
Total stockholders’ equity	354,119				354,119
Error Correction
Condensed Consolidated Statement of Operations
Total revenue	(1,085)	1,085		1,085	0
Research and development	(533)				(533)
General and administrative	(823)	892	112	1,004	181
Selling, general and administrative expenses	(1,356)	892	112	1,004	(352)
Operating loss	165	1,085		1,085	1,250
Loss before income taxes	165	1,085		1,085	1,250
Net loss	165	1,085		1,085	1,250
Net loss attributable to Telos Corporation	$ 165	$ 1,085		$ 1,085	$ 1,250
Net loss per share attributable to Telos Corporation
Basic (in dollars per share)	$ 0	$ 0.02		$ 0.02	$ 0.02
Diluted (in dollars per share)	$ 0	$ 0.02		$ 0.02	$ 0.02
Condensed Consolidated Statement of Cash Flows
Net loss	$ 165	$ 1,085		$ 1,085	$ 1,250
Stock-based compensation					181
Changes in other operating assets and liabilities			2,436	1,351	1,538
Cash used in operating activities			2,436	2,436	2,969
Capitalized software development costs					(533)
Cash used in investing activities					(533)
Distributions to Telos ID Class B member – non-controlling interest			(2,436)	(2,436)	(2,436)
Cash used in financing activities			(2,436)	(2,436)	(2,436)
Condensed Consolidated Statement of Comprehensive Loss
Net loss	165	1,085		1,085	1,250
Comprehensive loss attributable to Telos Corporation	165	1,085		1,085	1,250
Condensed Consolidated Balance Sheet
Accounts receivable, net	(1,085)	1,085		1,085	(1,085)
Total current assets	(1,085)	1,085		1,085	(1,085)
Goodwill	1,280				1,280
Intangible assets, net	(747)				(747)
Total assets	(552)	1,085		1,085	(552)
Accounts payable and other accrued liabilities	(898)				(898)
Total current liabilities	(898)				(898)
Total liabilities	(898)				(898)
Additional paid-in capital	181				181
Accumulated deficit	165	1,085		1,085	165
Total stockholders’ equity	346	1,085		1,085	346
Total liabilities and stockholders' equity	(552)	1,085		1,085	(552)
Condensed Consolidated Statement of Changes in Stockholders' Equity
Net loss	165	1,085		1,085	1,250
Total stockholders’ equity	346	1,085		1,085	346
Error Correction \| Accumulated Deficit
Condensed Consolidated Balance Sheet
Total stockholders’ equity	165	1,085		1,085	165		0
Condensed Consolidated Statement of Changes in Stockholders' Equity
Total stockholders’ equity	165	1,085		1,085	165		0
Error Correction \| Additional Paid–in Capital
Condensed Consolidated Balance Sheet
Total stockholders’ equity	181				181
Condensed Consolidated Statement of Changes in Stockholders' Equity
Total stockholders’ equity	181				181
Products and Services
Condensed Consolidated Statement of Operations
Total costs and expenses	44,104	31,110	41,288	72,398	116,502
Products and Services \| Previously Reported
Condensed Consolidated Statement of Operations
Total costs and expenses	43,998	32,002	41,400	73,402	117,400
Products and Services \| Error Correction
Condensed Consolidated Statement of Operations
Total costs and expenses	106	(892)	(112)	(1,004)	(898)
Services
Condensed Consolidated Statement of Operations
Total revenue	62,955	49,003		101,061	164,016	221,548	161,180	143,581
Total costs and expenses	40,137	28,609	39,490	68,099	108,236	143,357	106,969	98,772
Services \| Previously Reported
Condensed Consolidated Statement of Operations
Total revenue	63,690	47,618		99,676	163,366
Total costs and expenses	40,031	29,501	39,602	69,103	109,134
Services \| Error Correction
Condensed Consolidated Statement of Operations
Total revenue	(735)	1,385		1,385	650
Total costs and expenses	106	(892)	$ (112)	(1,004)	(898)
Products
Condensed Consolidated Statement of Operations
Total revenue	6,026	4,641		8,341	14,367	20,885	18,737	15,637
Total costs and expenses						$ 13,047	$ 10,528	$ 8,102
Products \| Previously Reported
Condensed Consolidated Statement of Operations
Total revenue	6,376	4,941		8,641	15,017
Products \| Error Correction
Condensed Consolidated Statement of Operations
Total revenue	$ (350)	$ (300)		$ (300)	$ (650)