Maryland | 52-0880974 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
19886 Ashburn Road, Ashburn, Virginia | 20147 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | Accelerated filer ◻ |
Non-accelerated filer ☒ | Smaller reporting company ◻ |
Emerging growth company ◻ |
Page | ||
PART I | ||
Item 1. | 3 | |
Item 1A. | ||
Item 1B. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II | ||
Item 5. | ||
Item 6. | ||
Item 7. | ||
Item 7A. | ||
Item 8. | ||
Item 9. | ||
Item | ||
Item 9B. | ||
PART III | ||
Item 10. | ||
Item 11. | ||
Item 12. | ||
Item 13. | ||
Item 14. | ||
PART IV | ||
Item 15. | ||
Item 16. | ||
● | Cybersecurity – Today’s enterprises need to understand and manage their cyber risk and reduce their cyber attack surfaces. Telos helps our customers assure the ongoing security, integrity, and compliance of their on-premises and cloud-based systems and to reduce threats and vulnerabilities to foil cyber adversaries before they can attack. Our consultants assess our customers’ security environments and design, engineer, and operate the systems they need to strengthen their cybersecurity posture. |
● | Cloud Security – The cloud as an organizational resource is more than two decades old, yet the needs of cloud users are constantly changing. Telos offers the specialized skills and experience needed to help our customers plan, engineer, and execute secure cloud migration strategies and then assure ongoing management and security in keeping with the leading standards for cloud-based systems and workloads. |
● | Enterprise Security – Securing the enterprise means protecting the essential and timeless elements common to every organization: Its people and processes, its supply chain and inventories, its finances and facilities, its information and communications. As ICT and OT systems have become part of the organizational DNA, Telos has led with offerings that ensure personnel can work securely and productively across and beyond the enterprise. |
● | Techniques: We employ development and production methodologies such as Agile and ISO 9001 to ensure predictability, repeatability, and quality. Techniques such as continuous integration are employed to accelerate the solution development and testing process while at the same time reducing cost and improving quality. We believe such techniques are critical for providing our customers with a high quality user experience. |
● | Architecture: The nature of our |
2016 | 2015 | 2014 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | (dollar amounts in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Federal | $ | 130,415 | 96.7 | % | $ | 117,328 | 97.3 | % | $ | 122,549 | 96.1 | % | $ | 149,257 | 93.7 | % | $ | 129,279 | 93.7 | % | $ | 101,519 | 94.2 | % | ||||||||||||||||||||||||
State & Local, and Commercial | 4,453 | 3.3 | % | 3,306 | 2.7 | % | 5,013 | 3.9 | % | 9,961 | 6.3 | % | 8,737 | 6.3 | % | 6,208 | 5.8 | % | ||||||||||||||||||||||||||||||
Total | $ | 134,868 | 100.0 | % | $ | 120,634 | 100.0 | % | $ | 127,562 | 100.0 | % | $ | 159,218 | 100.0 | % | $ | 138,016 | 100.0 | % | $ | 107,727 | 100.0 | % |
● | impose specific and unique cost accounting practices that may differ from Generally Accepted Accounting Principles |
● | impose acquisition regulations that define reimbursable and non-reimbursable costs; and |
● | restrict the use and dissemination of information classified for national security purposes and the export of certain products and technical data. |
● | we may expend substantial funds and time to prepare bids and proposals for contracts that may ultimately be awarded to one of our competitors; |
● | we may be unable to accurately estimate the resources and costs that will be required to perform any contract we are awarded, which could result in substantial cost overruns; |
● | we may encounter expense and delay if our competitors protest or challenge awards of contracts, and any such protest or challenge could result in a requirement to resubmit bids on modified specifications or in the termination, reduction or modification of the awarded contract. Additionally, the protest of contracts awarded to us may result in the delay of program performance and the generation of revenue while the protest is pending; and |
● | if we are not given the opportunity to re-compete for U.S. |
● | diversion of management attention from running our existing business; |
● | possible material weaknesses in internal control over financial reporting; |
● | increased expenses including legal, administrative and compensation expenses related to newly hired or terminated employees; |
● | increased costs to integrate the technology, personnel, customer base and business practices of the acquired company with us; |
● | potential exposure to material liabilities not discovered in the due diligence process; |
● | potential adverse effects on reported operating results due to possible write-down of goodwill and other intangible assets associated with acquisitions; and |
● | unavailability of acquisition financing or unavailability of such financing on reasonable terms. |
● | third party attempts to fraudulently induce employees or customers into disclosing sensitive information such as user names, passwords or other information to gain access to our customers’ data, our data or our IT systems; |
● | efforts by individuals or groups of hackers and sophisticated organizations, including state-sponsored organizations or nation-states; |
● | cyber-attacks on our internally built infrastructure; |
● | vulnerabilities resulting from enhancements and updates to our existing solutions; |
● | vulnerabilities in the products or components across the broad ecosystem that our services operate in or are dependent on; |
● | vulnerabilities existing within newly acquired or integrated technologies and infrastructures; |
● | attacks on, or vulnerabilities in, the many different underlying networks and services that power the internet that our products depend on, most of which are not under our control or the control of our vendors, partners, or customers; and |
● | employee or contractor errors or intentional acts that compromise our security systems. |
● | localization of our services, including translation into foreign languages and associated expenses; |
● | regulatory frameworks or business practices favoring local competitors; |
● | pressure on the creditworthiness of sovereign nations; |
● | evolving domestic and international tax environments; |
● | liquidity issues or political actions by sovereign nations, including nations with a controlled currency environment, which could result in decreased values of these balances or potential difficulties protecting our foreign assets or satisfying local obligations; |
● | foreign currency fluctuations and controls, which may make our services more expensive for international customers and could add volatility to our operating results; |
● | compliance with multiple, conflicting, ambiguous or evolving governmental laws and regulations, including employment, tax, privacy, anti-corruption, import/export, antitrust, data transfer, storage and protection, and industry-specific laws and regulations, including rules related to compliance by our third-party resellers and our ability to identify and respond timely to compliance issues when they occur; |
● | vetting and monitoring our third-party resellers in new and evolving markets to confirm they maintain standards consistent with our brand and reputation; |
● | uncertainty regarding regulation, currency, tax, and operations resulting from the Brexit vote that could disrupt trade, the sale of our services and commerce, and movement of our people between the United Kingdom, European Union, and locations; |
● | changes in the public perception of governments in the regions where we operate or plan to operate; |
● | regional data privacy laws and other regulatory requirements; |
● | treatment of revenue from international sources, intellectual property considerations and changes to tax codes, including being subject to foreign tax laws and being liable for paying withholding income or other taxes in foreign jurisdictions; |
● | different pricing environments; |
● | difficulties in staffing and managing foreign operations; |
● | different or lesser protection of our intellectual property; |
● | longer accounts receivable payment cycles and other collection difficulties; |
● | natural disasters, acts of war, terrorism, pandemics or security breaches; and |
● | regional economic and political conditions. |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||||||
(amounts in thousands) | (amounts in thousands) | |||||||||||||||||||||||||||||||||||||||
Sales | $ | 134,868 | $ | 120,634 | $ | 127,562 | $ | 207,394 | $ | 226,096 | $ | 159,218 | $ | 138,016 | $ | 107,727 | $ | 134,868 | $ | 120,634 | ||||||||||||||||||||
Operating income (loss) | 2,112 | (3,617 | ) | (11,644 | ) | 6,111 | 17,700 | 5,025 | 9,014 | 414 | 2,112 | (3,617 | ) | |||||||||||||||||||||||||||
(Loss) income before income taxes | (3,335 | ) | (9,237 | ) | (16,600 | ) | 867 | 16,725 | (2,241 | ) | 1,768 | (6,265 | ) | (3,335 | ) | (9,237 | ) | |||||||||||||||||||||||
Net (loss) income attributable to Telos Corporation | (7,175 | ) | (15,940 | ) | (12,288 | ) | (2,618 | ) | 7,435 | |||||||||||||||||||||||||||||||
Net loss attributable to Telos Corporation | (6,401 | ) | (1,640 | ) | (5,833 | ) | (7,175 | ) | (15,940 | ) |
As of December 31, | As of December 31, | |||||||||||||||||||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||||||
(amounts in thousands) | (amounts in thousands) | |||||||||||||||||||||||||||||||||||||||
Total assets | $ | 56,799 | $ | 59,964 | $ | 73,820 | $ | 88,609 | $ | 79,156 | $ | 77,692 | $ | 74,489 | $ | 74,421 | $ | 56,799 | $ | 59,964 | ||||||||||||||||||||
Senior term loan (1) | 16,335 | 10,984 | 10,786 | ---- | ---- | |||||||||||||||||||||||||||||||||||
Senior credit facility, long-term (1) | ---- | 7,144 | 8,590 | 19,141 | 18,559 | ---- | ---- | ---- | ---- | 7,144 | ||||||||||||||||||||||||||||||
Subordinated debt, long-term (1) | ---- | 2,500 | ---- | ---- | ---- | 2,927 | 2,597 | 2,289 | ---- | 2,500 | ||||||||||||||||||||||||||||||
Capital lease obligations, long-term (2) | 18,990 | 19,908 | 20,735 | 14,901 | 3,803 | |||||||||||||||||||||||||||||||||||
Finance lease obligations, long-term (2) | 15,641 | 16,865 | 17,980 | 18,990 | 19,908 | |||||||||||||||||||||||||||||||||||
Operating lease obligations, long-term (2) | 1,553 | ---- | ---- | ---- | ---- | |||||||||||||||||||||||||||||||||||
Deferred income taxes, long-term (3) | 3,391 | 3,199 | ---- | ---- | ---- | 621 | 818 | 741 | 3,391 | 3,199 | ||||||||||||||||||||||||||||||
Senior redeemable preferred stock (4) | 1,731 | 2,025 | 1,958 | 1,891 | 4,010 | ---- | ---- | ---- | 2,092 | 2,025 | ||||||||||||||||||||||||||||||
Public preferred stock (4) | 127,742 | 123,919 | 120,097 | 116,274 | 112,451 | 139,210 | 135,387 | 131,565 | 127,742 | 123,919 |
(1) | See Note 6 to the Consolidated Financial Statements in Item 8 regarding our debt obligations. |
(2) | See Note 10 to the Consolidated Financial Statements in Item 8 regarding our |
(3) | See Note 9 to the Consolidated Financial Statements in Item 8 regarding our income taxes. |
(4) | See Note 7 to the Consolidated Financial Statements in Item 8 regarding our redeemable preferred stock. |
● | Cybersecurity – Today’s enterprises need to understand and |
● | Cloud Security – |
● | Enterprise Security – Securing the enterprise means protecting the essential and |
2019 | 2018 | 2017 | ||||||||||
Federal | $ | 149,257 | $ | 129,279 | $ | 101,519 | ||||||
State & Local, and Commercial | 9,961 | 8,737 | 6,208 | |||||||||
Total | $ | 159,218 | $ | 138,016 | $ | 107,727 |
2019 | 2018 | 2017 | ||||||||||
Firm fixed-price | $ | 131,629 | $ | 103,454 | $ | 89,516 | ||||||
Time-and-materials | 14,569 | 16,795 | 10,222 | |||||||||
Cost plus fixed fee | 13,020 | 17,767 | 7,989 | |||||||||
Total | $ | 159,218 | $ | 138,016 | $ | 107,727 |
December 31, | ||||||||
2019 | 2018 | |||||||
Billed accounts receivable | $ | 11,917 | $ | 18,848 | ||||
Unbilled receivables | 16,745 | 16,000 | ||||||
Allowance for doubtful accounts | (720 | ) | (306 | ) | ||||
Receivables – net | $ | 27,942 | $ | 34,542 |
December 31, | ||||||||
2019 | 2018 | |||||||
Contract liabilities | $ | 6,338 | $ | 5,232 |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2016 | 2015 | 2014 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | (dollar amounts in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 134,868 | 100.0 | % | $ | 120,634 | 100.0 | % | $ | 127,562 | 100.0 | % | $ | 159,218 | 100.0 | % | $ | 138,016 | 100.0 | % | $ | 107,727 | 100.0 | % | ||||||||||||||||||||||||
Cost of sales | 91,422 | 67.8 | 89,961 | 74.6 | 102,609 | 80.4 | 106,874 | 67.1 | 84,954 | 61.6 | 67,161 | 62.3 | ||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 41,334 | 30.6 | 34,290 | 28.4 | 36,597 | 28.7 | 47,319 | 29.7 | 44,048 | 31.9 | 40,152 | 37.3 | ||||||||||||||||||||||||||||||||||||
Operating income (loss) | 2,112 | 1.6 | (3,617 | ) | (3.0 | ) | (11,644 | ) | (9.1 | ) | ||||||||||||||||||||||||||||||||||||||
Operating income | 5,025 | 3.2 | 9,014 | 6.5 | 414 | 0.4 | ||||||||||||||||||||||||||||||||||||||||||
Other income (expenses): | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-operating income | 18 | ---- | 19 | ---- | 414 | 0.3 | 201 | 0.1 | 12 | ---- | 11 | ---- | ||||||||||||||||||||||||||||||||||||
Interest expense | (5,465 | ) | (4.1 | ) | (5,639 | ) | (4.6 | ) | (5,370 | ) | (4.2 | ) | (7,467 | ) | (4.7 | ) | (7,258 | ) | (5.2 | ) | (6,690 | ) | (6.2 | ) | ||||||||||||||||||||||||
Loss before income taxes | (3,335 | ) | (2.5 | ) | (9,237 | ) | (7.6 | ) | (16,600 | ) | (13.0 | ) | ||||||||||||||||||||||||||||||||||||
(Provision) benefit for income taxes | (334 | ) | (0.2 | ) | (4,265 | ) | (3.5 | ) | 5,988 | 4.7 | ||||||||||||||||||||||||||||||||||||||
Net loss | (3,669 | ) | (2.7 | ) | (13,502 | ) | (11.1 | ) | (10,612 | ) | (8.3 | ) | ||||||||||||||||||||||||||||||||||||
(Loss) income before income taxes | (2,241 | ) | (1.4 | ) | 1,768 | 1.3 | (6,265 | ) | (5.8 | ) | ||||||||||||||||||||||||||||||||||||||
Benefit (provision) for income taxes | 104 | 0.1 | (31 | ) | ---- | 2,767 | 2.6 | |||||||||||||||||||||||||||||||||||||||||
Net (loss) income | (2,137 | ) | (1.3 | ) | 1,737 | 1.3 | (3,498 | ) | (3.2 | ) | ||||||||||||||||||||||||||||||||||||||
Less: Net income attributable to non-controlling interest | (3,506 | ) | (2.6 | ) | (2,438 | ) | (2.0 | ) | (1,676 | ) | (1.3 | ) | (4,264 | ) | (2.7 | ) | (3,377 | ) | (2.4 | ) | (2,335 | ) | (2.2 | ) | ||||||||||||||||||||||||
Net loss attributable to Telos Corporation | $ | (7,175 | ) | (5.3 | )% | $ | (15,940 | ) | (13.1 | )% | $ | (12,288 | ) | (9.6 | )% | $ | (6,401 | ) | (4.0 | )% | $ | (1,640 | ) | (1.1 | )% | $ | (5,833 | ) | (5.4 | )% |
December 31, | December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2019 | 2018 | 2017 | |||||||||||||||||||
(amounts in thousands) | (amounts in thousands) | |||||||||||||||||||||||
Commercial and subordinated note interest incurred | $ | 1,575 | $ | 1,750 | $ | 1,481 | $ | 3,644 | $ | 3,436 | $ | 2,848 | ||||||||||||
Preferred stock interest accrued | 3,890 | 3,889 | 3,889 | 3,823 | 3,822 | 3,842 | ||||||||||||||||||
Total | $ | 5,465 | $ | 5,639 | $ | 5,370 | $ | 7,467 | $ | 7,258 | $ | 6,690 |
● | 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 is 102% of the principal amount, (b) from January 26, 2020 through October 14, 2020, the prepayment price is 101% of the principal amount, and (c) from October 15, 2020 to the maturity date, the prepayment price will be at par. However, the prepayment price for the additional $5 million loan attributable to the Fourth Amendment will be at par. |
● | The following financial covenants, as defined in the Credit Agreement, were amended and updated: Consolidated Leverage Ratio, Consolidated Senior Leverage Ratio, Consolidated Capital Expenditures, Minimum Fixed Charge Coverage Ratio, and Minimum Consolidated Net Working Capital. |
● | Any actual or potential non-compliance with the applicable provisions of the Credit Agreement were waived. |
● | The borrowing under the Credit Agreement continues 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. We incurred immaterial third party transaction costs which were expensed in the current period. |
● | The exit fee was increased from $825,000 to $1,200,000. |
Payments due by Period | ||||||||||||||||||||
Total | 2017 | 2018 - 2020 | 2021 - 2023 | 2024 and later | ||||||||||||||||
Capital lease obligations (1) | $ | 27,251 | $ | 1,900 | $ | 5,987 | $ | 6,448 | $ | 12,916 | ||||||||||
Subordinated debt (2) | 3,029 | 3,029 | ---- | ---- | ---- | |||||||||||||||
Operating lease obligations | 3,268 | 560 | 1,487 | 1,193 | 28 | |||||||||||||||
$ | 33,548 | $ | 5,489 | $ | 7,474 | $ | 7,641 | $ | 12,944 | |||||||||||
Senior preferred stock (3) | $ | 2,092 | ||||||||||||||||||
Public preferred stock (4) | 127,742 | |||||||||||||||||||
$ | 129,834 | |||||||||||||||||||
Total | $ | 163,382 | ||||||||||||||||||
(1) Includes interest expense: | $ | 7,343 | $ | 982 | $ | 2,637 | $ | 2,057 | $ | 1,667 |
Payments due by Period | ||||||||||||||||||||
Total | 2020 | 2021 - 2023 | 2024 - 2026 | 2027 and later | ||||||||||||||||
Finance lease obligations (1) | $ | 21,411 | $ | 2,047 | $ | 6,449 | $ | 6,944 | $ | 5,971 | ||||||||||
Senior term loan (2) | 19,476 | 2,190 | 17,286 | ---- | ---- | |||||||||||||||
Subordinated debt (3) | 3,905 | ---- | 3,905 | ---- | ---- | |||||||||||||||
Operating lease obligations (4) | 2,443 | 768 | 1,647 | 28 | ---- | |||||||||||||||
$ | 47,235 | $ | 5,005 | $ | 29,287 | $ | 6,972 | $ | 5,971 | |||||||||||
Public preferred stock (5) | 139,210 | |||||||||||||||||||
Total | $ | 186,445 | ||||||||||||||||||
(1) Includes interest expense: | $ | 4,546 | $ | 822 | $ | 2,056 | $ | 1,304 | $ | 364 |
Page | |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2019 | 2018 | 2017 | |||||||||||||||||||
Revenue (Note 5) | ||||||||||||||||||||||||
Services | $ | 112,881 | $ | 97,659 | $ | 103,071 | $ | 143,581 | $ | 120,990 | $ | 81,606 | ||||||||||||
Products | 21,987 | 22,975 | 24,491 | 15,637 | 17,026 | 26,121 | ||||||||||||||||||
134,868 | 120,634 | 127,562 | 159,218 | 138,016 | 107,727 | |||||||||||||||||||
Costs and expenses | ||||||||||||||||||||||||
Cost of sales – Services | 77,578 | 73,079 | 82,481 | 98,772 | 76,857 | 49,965 | ||||||||||||||||||
Cost of sales – Products | 13,844 | 16,882 | 20,128 | 8,102 | 8,097 | 17,196 | ||||||||||||||||||
91,422 | 89,961 | 102,609 | 106,874 | 84,954 | 67,161 | |||||||||||||||||||
Selling, general and administrative expenses | 41,334 | 34,290 | 36,597 | 47,319 | 44,048 | 40,152 | ||||||||||||||||||
Operating income (loss) | 2,112 | (3,617 | ) | (11,644 | ) | |||||||||||||||||||
Operating income | 5,025 | 9,014 | 414 | |||||||||||||||||||||
Other income (expenses) | ||||||||||||||||||||||||
Non-operating income | 18 | 19 | 414 | 201 | 12 | 11 | ||||||||||||||||||
Interest expense | (5,465 | ) | (5,639 | ) | (5,370 | ) | (7,467 | ) | (7,258 | ) | (6,690 | ) | ||||||||||||
Loss before income taxes | (3,335 | ) | (9,237 | ) | (16,600 | ) | ||||||||||||||||||
(Provision) benefit for income taxes (Note 9) | (334 | ) | (4,265 | ) | 5,988 | |||||||||||||||||||
(Loss) income before income taxes | (2,241 | ) | 1,768 | (6,265 | ) | |||||||||||||||||||
Benefit (provision) for income taxes (Note 9) | 104 | (31 | ) | 2,767 | ||||||||||||||||||||
Net loss | (3,669 | ) | (13,502 | ) | (10,612 | ) | ||||||||||||||||||
Net (loss) income | (2,137 | ) | 1,737 | (3,498 | ) | |||||||||||||||||||
Less: Net income attributable to non-controlling interest (Note 2) | (3,506 | ) | (2,438 | ) | (1,676 | ) | (4,264 | ) | (3,377 | ) | (2,335 | ) | ||||||||||||
Net loss attributable to Telos Corporation | $ | (7,175 | ) | $ | (15,940 | ) | $ | (12,288 | ) | $ | (6,401 | ) | $ | (1,640 | ) | $ | (5,833 | ) |
Years Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Net (loss) income | $ | (2,137 | ) | $ | 1,737 | $ | (3,498 | ) | ||||
Other comprehensive (loss) income, net of tax: | ||||||||||||
Foreign currency translation adjustments | (11 | ) | (15 | ) | 7 | |||||||
Comprehensive income attributable to non-controlling interest | (4,264 | ) | (3,377 | ) | (2,335 | ) | ||||||
Comprehensive loss attributable to Telos Corporation | $ | (6,412 | ) | $ | (1,655 | ) | $ | (5,826 | ) |
December 31, | ||||||||
2019 | 2018 | |||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 6,751 | $ | 72 | ||||
Accounts receivable, net of reserve of $720 and $306, respectively (Note 5) | 27,942 | 34,542 | ||||||
Inventories, net of obsolescence reserve of $860 and $520, respectively (Note 1) | 1,965 | 4,389 | ||||||
Deferred program expenses | 673 | 244 | ||||||
Other current assets | 2,914 | 1,985 | ||||||
Total current assets | 40,245 | 41,232 | ||||||
Property and equipment (Note 1) | ||||||||
Furniture and equipment | 18,709 | 12,756 | ||||||
Leasehold improvements | 2,536 | 2,503 | ||||||
Property and equipment under finance leases | 30,792 | 30,832 | ||||||
52,037 | 46,091 | |||||||
Accumulated depreciation and amortization | (32,470 | ) | (28,665 | ) | ||||
19,567 | 17,426 | |||||||
Operating lease right-of-use assets | 1,979 | -- | ||||||
Goodwill (Note 3) | 14,916 | 14,916 | ||||||
Other assets | 985 | 915 | ||||||
Total assets | $ | 77,692 | $ | 74,489 |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Net loss | $ | (3,669 | ) | $ | (13,502 | ) | $ | (10,612 | ) | |||
Other comprehensive loss: | ||||||||||||
Foreign currency translation adjustments | (12 | ) | (6 | ) | (3 | ) | ||||||
Actuarial loss on pension liability adjustments, net of tax | -- | (2 | ) | -- | ||||||||
Total other comprehensive loss, net of tax | (12 | ) | (8 | ) | (3 | ) | ||||||
Comprehensive income attributable to non-controlling interest | (3,506 | ) | (2,438 | ) | (1,676 | ) | ||||||
Comprehensive loss attributable to Telos Corporation | $ | (7,187 | ) | $ | (15,948 | ) | $ | (12,291 | ) |
December 31, | ||||||||
2016 | 2015 | |||||||
Current assets (Note 6) | ||||||||
Cash and cash equivalents | $ | 659 | $ | 58 | ||||
Accounts receivable, net of reserve of $429 and $485, respectively (Note 5) | 19,087 | 19,045 | ||||||
Inventories, net of obsolescence reserve of $1,672 and $1,457, respectively | 3,552 | 2,901 | ||||||
Deferred program expenses | 186 | 734 | ||||||
Other current assets | 1,521 | 3,105 | ||||||
Total current assets | 25,005 | 25,843 | ||||||
Property and equipment (Note 6) | ||||||||
Furniture and equipment | 6,912 | 7,381 | ||||||
Leasehold improvements | 2,399 | 2,418 | ||||||
Property and equipment under capital leases | 30,829 | 30,829 | ||||||
40,140 | 40,628 | |||||||
Accumulated depreciation and amortization | (24,023 | ) | (23,366 | ) | ||||
16,117 | 17,262 | |||||||
Goodwill (Note 3) | 14,916 | 14,916 | ||||||
Other intangible assets (Note 3) | -- | 1,129 | ||||||
Other assets (Note 6) | 761 | 814 | ||||||
Total assets | $ | 56,799 | $ | 59,964 |
December 31, | ||||||||
2016 | 2015 | |||||||
Current liabilities | ||||||||
Accounts payable and other accrued payables (Note 6) | $ | 15,317 | $ | 12,678 | ||||
Accrued compensation and benefits | 8,071 | 4,755 | ||||||
Deferred revenue | 4,900 | 3,466 | ||||||
Senior credit facility – short-term (Note 6) | -- | 1,400 | ||||||
Subordinated debt – short-term (Note 5) | 3,029 | -- | ||||||
Capital lease obligations – short-term (Note 10) | 918 | 827 | ||||||
Other current liabilities | 1,406 | 1,644 | ||||||
Total current liabilities | 33,641 | 24,770 | ||||||
Senior revolving credit facility (Note 6) | -- | 7,144 | ||||||
Subordinated debt (Note 6) | -- | 2,500 | ||||||
Capital lease obligations (Note 10) | 18,990 | 19,908 | ||||||
Deferred income taxes (Note 9) | 3,391 | 3,199 | ||||||
Senior redeemable preferred stock (Note 7) | 2,092 | 2,025 | ||||||
Public preferred stock (Note 7) | 127,742 | 123,919 | ||||||
Other liabilities (Note 9) | 919 | 882 | ||||||
Total liabilities | 186,775 | 184,347 | ||||||
Commitments, contingencies and subsequent events (Notes 10 and 13) | ||||||||
Stockholders' deficit (Note 8) | ||||||||
Telos stockholders' deficit | ||||||||
Class A common stock, no par value, 50,000,000 shares authorized, 40,238,461 shares issued and outstanding | 65 | 65 | ||||||
Class B common stock, no par value, 5,000,000 shares authorized, 4,037,628 shares issued and outstanding | 13 | 13 | ||||||
Additional paid-in capital | 3,229 | 3,229 | ||||||
Accumulated other comprehensive income | 25 | 37 | ||||||
Accumulated deficit | (135,537 | ) | (128,362 | ) | ||||
Total Telos stockholders' deficit | (132,205 | ) | (125,018 | ) | ||||
Non-controlling interest in subsidiary (Note 2) | 2,229 | 635 | ||||||
Total stockholders' deficit | (129,976 | ) | (124,383 | ) | ||||
Total liabilities, redeemable preferred stock, and stockholders' deficit | $ | 56,799 | $ | 59,964 |
December 31, | ||||||||
2019 | 2018 | |||||||
Current liabilities | ||||||||
Accounts payable and other accrued liabilities (Note 6) | $ | 15,050 | $ | 21,779 | ||||
Accrued compensation and benefits | 12,187 | 9,082 | ||||||
Contract liabilities | 6,337 | 5,232 | ||||||
Finance lease obligations – short-term (Note 10) | 1,224 | 1,115 | ||||||
Other current liabilities | 2,505 | 1,895 | ||||||
Total current liabilities | 37,303 | 39,103 | ||||||
Senior term loan, net of unamortized discount and issuance costs (Note 6) | 16,335 | 10,984 | ||||||
Subordinated debt (Note 6) | 2,927 | 2,597 | ||||||
Finance lease obligations - long-term (Note 10) | 15,641 | 16,865 | ||||||
Operating lease obligations - long-term (Note 10) | 1,553 | -- | ||||||
Deferred income taxes (Note 9) | 621 | 818 | ||||||
Public preferred stock (Note 7) | 139,210 | 135,387 | ||||||
Other liabilities (Note 9) | 724 | 838 | ||||||
Total liabilities | 214,314 | 206,592 | ||||||
Commitments and contingencies (Notes 10 and 13) | -- | -- | ||||||
Stockholders’ deficit (Note 8) | ||||||||
Telos stockholders’ deficit | ||||||||
Class A common stock, no par value, 50,000,000 shares authorized, 45,143,460 and 45,158,460 shares issued and outstanding, respectively | 65 | 65 | ||||||
Class B common stock, no par value, 5,000,000 shares authorized, 4,037,628 shares issued and outstanding | 13 | 13 | ||||||
Additional paid-in capital | 4,310 | 4,310 | ||||||
Accumulated other comprehensive income | 6 | 17 | ||||||
Accumulated deficit | (145,530 | ) | (139,129 | ) | ||||
Total Telos stockholders’ deficit | (141,136 | ) | (134,724 | ) | ||||
Non-controlling interest in subsidiary (Note 2) | 4,514 | 2,621 | ||||||
Total stockholders’ deficit | (136,622 | ) | (132,103 | ) | ||||
Total liabilities, redeemable preferred stock, and stockholders’ deficit | $ | 77,692 | $ | 74,489 |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Operating activities: | ||||||||||||
Net loss | $ | (3,669 | ) | $ | (13,502 | ) | $ | (10,612 | ) | |||
Adjustments to reconcile net loss to cash provided by operating activities: | ||||||||||||
Stock-based compensation | -- | -- | 12 | |||||||||
Dividends of preferred stock as interest expense | 3,890 | 3,889 | 3,890 | |||||||||
Depreciation and amortization | 2,898 | 4,291 | 4,251 | |||||||||
Provision for inventory obsolescence | 215 | 92 | 1,359 | |||||||||
(Benefit) provision for doubtful accounts receivable | (56 | ) | 113 | 51 | ||||||||
Amortization of debt issuance costs | 65 | 152 | 36 | |||||||||
Deferred income tax provision (benefit) | 192 | 5,113 | (4,035 | ) | ||||||||
Loss on disposal of fixed asssets | -- | 11 | 56 | |||||||||
Changes in assets and liabilities: | ||||||||||||
Decrease in accounts receivable | 14 | 3,364 | 23,059 | |||||||||
(Increase) decrease in inventories | (866 | ) | 352 | 181 | ||||||||
Decrease (increase) in deferred program expenses | 548 | 657 | (815 | ) | ||||||||
Decrease (increase) in other current assets and other assets | 1,824 | 1,330 | (3,192 | ) | ||||||||
Increase (decrease) in accounts payable and other accrued payables | 3,722 | (3,840 | ) | (6,490 | ) | |||||||
Increase (decrease) in accrued compensation and benefits | 3,316 | 552 | (1,738 | ) | ||||||||
Increase in deferred revenue | 1,434 | 122 | 576 | |||||||||
Increase (decrease) in other current liabilities and other liabilities | 328 | 27 | (405 | ) | ||||||||
Cash provided by operating activities | 13,855 | 2,723 | 6,184 | |||||||||
Investing activities: | ||||||||||||
Purchases of property and equipment | (624 | ) | (394 | ) | (665 | ) | ||||||
Cash used in investing activities | (624 | ) | (394 | ) | (665 | ) | ||||||
Financing activities: | ||||||||||||
Proceeds from senior credit facilities | 70,032 | 139,072 | 163,112 | |||||||||
Repayments of senior credit facilities | (75,640 | ) | (139,118 | ) | (171,363 | ) | ||||||
Repayments of term loan | (3,200 | ) | (2,300 | ) | (688 | ) | ||||||
(Decrease) increase in book overdrafts | (1,083 | ) | (1,298 | ) | 1,016 | |||||||
Proceeds from subordinated debt | -- | 2,500 | -- | |||||||||
Proceeds from assignment of purchase option under lease | -- | -- | 1,669 | |||||||||
Payments under capital lease obligations | (827 | ) | (772 | ) | (779 | ) | ||||||
Proceeds from sale of Telos ID 10% membership interest | -- | 2,000 | 3,000 | |||||||||
Distributions to Telos ID Class B member – non-controlling interest | (1,912 | ) | (2,387 | ) | (1,548 | ) | ||||||
Cash used in financing activities | (12,630 | ) | (2,303 | ) | (5,581 | ) | ||||||
Increase (decrease) in cash and cash equivalents | 601 | 26 | (62 | ) | ||||||||
Cash and cash equivalents, beginning of the year | 58 | 32 | 94 | |||||||||
Cash and cash equivalents, end of year | $ | 659 | $ | 58 | $ | 32 |
Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||
Net (loss) income | $ | (2,137 | ) | $ | 1,737 | $ | (3,498 | ) | ||||||||||||||||
Adjustments to reconcile net (loss) income to cash provided by (used in) operating activities: | ||||||||||||||||||||||||
Stock-based compensation | -- | -- | 50 | |||||||||||||||||||||
Dividends from preferred stock recorded as interest expense | 3,823 | 3,822 | 3,843 | |||||||||||||||||||||
Depreciation and amortization | 4,972 | 3,028 | 1,999 | |||||||||||||||||||||
Provision for inventory obsolescence | 376 | 30 | 73 | |||||||||||||||||||||
Provision (benefit) for doubtful accounts receivable | 414 | (105 | ) | (18 | ) | |||||||||||||||||||
Amortization of debt issuance costs | 461 | 198 | 160 | |||||||||||||||||||||
Deferred income tax (benefit) provision | (197 | ) | 77 | (2,710 | ) | |||||||||||||||||||
Loss on disposal of fixed asssets | 15 | 3 | 4 | |||||||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||||||
Decrease (increase) in accounts receivable | 6,186 | (9,917 | ) | (5,415 | ) | |||||||||||||||||||
Decrease (increase) in inventories | 2,048 | 9,101 | (10,041 | ) | ||||||||||||||||||||
(Increase) decrease in deferred program expenses | (429 | ) | 1,828 | (1,886 | ) | |||||||||||||||||||
(Increase) decrease in other current assets and other assets | (3,576 | ) | (465 | ) | 1,086 | |||||||||||||||||||
(Decrease) increase in accounts payable and other accrued payables | (6,730 | ) | (3,914 | ) | 10,376 | |||||||||||||||||||
Increase (decrease) in accrued compensation and benefits | 3,105 | 1,626 | (615 | ) | ||||||||||||||||||||
Increase (decrease) in contract liabilities | 1,106 | (960 | ) | 5,173 | ||||||||||||||||||||
Increase in other current liabilities and other liabilities | 2,379 | 179 | 828 | |||||||||||||||||||||
Cash provided by (used in) operating activities | 11,816 | 6,268 | (591 | ) | ||||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||
Capitalized software development costs | (2,442 | ) | (1,649 | ) | (1,481 | ) | ||||||||||||||||||
Purchases of property and equipment | (4,090 | ) | (2,465 | ) | (748 | ) | ||||||||||||||||||
Cash used in investing activities | (6,532 | ) | (4,114 | ) | (2,229 | ) | ||||||||||||||||||
Financing activities: | ||||||||||||||||||||||||
Proceeds from senior term loan | 4,881 | -- | 9,439 | |||||||||||||||||||||
Redemption of senior preferred stock | -- | -- | (2,112 | ) | ||||||||||||||||||||
Payments under finance lease obligations | (1,115 | ) | (1,013 | ) | (915 | ) | ||||||||||||||||||
Distributions to Telos ID Class B member – non-controlling interest | (2,371 | ) | (1,669 | ) | (3,651 | ) | ||||||||||||||||||
Cash provided by (used in) financing activities | 1,395 | (2,682 | ) | 2,761 | ||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 6,679 | (528 | ) | (59 | ) | |||||||||||||||||||
Cash and cash equivalents, beginning of the year | 72 | 600 | 659 | |||||||||||||||||||||
Cash and cash equivalents, end of year | $ | 6,751 | $ | 72 | $ | 600 | ||||||||||||||||||
2016 | 2015 | 2014 | ||||||||||||||||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||||||||||
Cash paid during the year for: | ||||||||||||||||||||||||
Interest | $ | 1,320 | $ | 1,523 | $ | 1,497 | $ | 3,299 | 2,483 | 2,395 | ||||||||||||||
Income taxes | $ | 60 | $ | 65 | $ | 879 | $ | 40 | 19 | 26 | ||||||||||||||
Noncash: | ||||||||||||||||||||||||
Interest on redeemable preferred stock | $ | 3,890 | $ | 3,889 | $ | 3,890 | ||||||||||||||||||
Financing of capital leases | $ | -- | $ | -- | $ | 5,680 | ||||||||||||||||||
Receivable from sale of Telos ID 10% membership interest | $ | -- | $ | -- | $ | 2,000 | ||||||||||||||||||
Dividends from preferred stock recorded as interest expense | $ | 3,823 | $ | 3,822 | $ | 3,843 | ||||||||||||||||||
Debt issuance costs and prepayment of interest on senior term loan | $ | 119 | $ | -- | $ | 1,561 | ||||||||||||||||||
Gain on extinguishment of subordinated debt | $ | -- | $ | -- | $ | 1,031 |
Telos Corporation | Telos Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Additional Paid–in Capital | Accumulated Other Comprehen-sive Income | Accumulated Deficit | Non-Controlling Interest | Total Stockholders' Deficit | Class A Common Stock | Class B Common Stock | Additional Paid–in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Non-Controlling Interest | Total Stockholders’ Deficit | |||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2013 | $ | 65 | $ | 13 | $ | 146 | $ | 48 | $ | (100,134 | ) | $ | 454 | $ | (99,408 | ) | ||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2016 | $ | 65 | $ | 13 | $ | 3,229 | $ | 25 | $ | (135,537 | ) | $ | 2,229 | $ | (129,976 | ) | ||||||||||||||||||||||||||||||||||||||||
Net (loss) income | -- | -- | -- | -- | (12,288 | ) | 1,676 | (10,612 | ) | -- | -- | -- | -- | (5,833 | ) | 2,335 | (3,498 | ) | ||||||||||||||||||||||||||||||||||||||
Sale of Telos ID membership interest | -- | -- | 3,071 | -- | -- | 2 | 3,073 | |||||||||||||||||||||||||||||||||||||||||||||||||
Gain on extinguishment of subordinated debt | -- | -- | 1,031 | -- | -- | -- | 1,031 | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | -- | -- | 50 | -- | -- | -- | 50 | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation gain | -- | -- | -- | 7 | -- | -- | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | -- | -- | -- | -- | -- | (3,651 | ) | (3,651 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2017 | $ | 65 | $ | 13 | $ | 4,310 | $ | 32 | $ | (141,370 | ) | $ | 913 | $ | (136,037 | ) | ||||||||||||||||||||||||||||||||||||||||
Net (loss) income | -- | -- | -- | -- | (1,640 | ) | 3,377 | 1,737 | ||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect adjustment due to change in accounting policy | -- | -- | -- | -- | 3,881 | -- | 3,881 | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation loss | -- | -- | -- | (3 | ) | -- | -- | (3 | ) | -- | -- | -- | (15 | ) | -- | -- | (15 | ) | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation | -- | -- | 12 | -- | -- | -- | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | -- | -- | -- | -- | -- | (1,548 | ) | (1,548 | ) | -- | -- | -- | -- | -- | (1,669 | ) | (1,669 | ) | ||||||||||||||||||||||||||||||||||||||
Balance December 31, 2014 | $ | 65 | $ | 13 | $ | 3,229 | $ | 45 | $ | (112,422 | ) | $ | 584 | $ | (108,486 | ) | ||||||||||||||||||||||||||||||||||||||||
Net (loss) income | -- | -- | -- | -- | (15,940 | ) | 2,438 | (13,502 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation loss | -- | -- | -- | (6 | ) | -- | -- | (6 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Pension liability adjustments | -- | -- | -- | (2 | ) | -- | -- | (2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Distributions | -- | -- | -- | -- | -- | (2,387 | ) | (2,387 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2015 | $ | 65 | $ | 13 | $ | 3,229 | $ | 37 | $ | (128,362 | ) | $ | 635 | $ | (124,383 | ) | ||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2018 | $ | 65 | $ | 13 | $ | 4,310 | $ | 17 | $ | (139,129 | ) | $ | 2,621 | $ | (132,103 | ) | ||||||||||||||||||||||||||||||||||||||||
Net (loss) income | -- | -- | -- | -- | (7,175 | ) | 3,506 | (3,669 | ) | -- | -- | -- | -- | (6,401 | ) | 4,264 | (2,137 | ) | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation loss | -- | -- | -- | (12 | ) | -- | -- | (12 | ) | -- | -- | -- | (11 | ) | -- | -- | (11 | ) | ||||||||||||||||||||||||||||||||||||||
Distributions | -- | -- | -- | -- | -- | (1,912 | ) | (1,912 | ) | -- | -- | -- | -- | -- | (2,371 | ) | (2,371 | ) | ||||||||||||||||||||||||||||||||||||||
Balance December 31, 2016 | $ | 65 | $ | 13 | $ | 3,229 | $ | 25 | $ | (135,537 | ) | $ | 2,229 | $ | (129,976 | ) | ||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2019 | $ | 65 | $ | 13 | $ | 4,310 | $ | 6 | $ | (145,530 | ) | $ | 4,514 | $ | (136,622 | ) |
2019 | 2018 | 2017 | ||||||||||
Federal | $ | 149,257 | $ | 129,279 | $ | 101,519 | ||||||
State & Local, and Commercial | 9,961 | 8,737 | 6,208 | |||||||||
Total | $ | 159,218 | $ | 138,016 | $ | 107,727 |
2019 | 2018 | 2017 | ||||||||||
Firm fixed-price | $ | 131,629 | $ | 103,454 | $ | 89,516 | ||||||
Time-and-materials | 14,569 | 16,795 | 10,222 | |||||||||
Cost plus fixed fee | 13,020 | 17,767 | 7,989 | |||||||||
Total | $ | 159,218 | $ | 138,016 | $ | 107,727 |
December 31, | ||||||||
2019 | 2018 | |||||||
Billed accounts receivable | $ | 11,917 | $ | 18,848 | ||||
Unbilled receivables | 16,745 | 16,000 | ||||||
Allowance for doubtful accounts | (720 | ) | (306 | ) | ||||
Receivables – net | $ | 27,942 | $ | 34,542 |
December 31, | ||||||||
2019 | 2018 | |||||||
Contract liabilities | $ | 6,337 | $ | 5,232 |
Balance Beginning of Year | Additions Charge to Costs and Expense | Recoveries | Balance End of Year | |||||||||||||
Year Ended December 31, 2016 | $ | 1,457 | $ | 215 | $ | -- | $ | 1,672 | ||||||||
Year Ended December 31, 2015 | $ | 1,366 | $ | 92 | $ | (1 | ) | $ | 1,457 | |||||||
Year Ended December 31, 2014 | $ | 417 | $ | 1,359 | $ | (410 | ) | $ | 1,366 |
Balance Beginning of Year | Additions Charge to Costs and Expense | Recoveries | Balance End of Year | |||||||||||||
Year Ended December 31, 2019 | $ | 520 | $ | 376 | $ | (36 | ) | $ | 860 | |||||||
Year Ended December 31, 2018 | $ | 1,484 | $ | 30 | $ | (994 | ) | $ | 520 | |||||||
Year Ended December 31, 2017 | $ | 1,672 | $ | 73 | $ | (261 | ) | $ | 1,484 |
3-5 | |
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 |
● | Upon the occurrence of a change in control of the Class A member (as defined in the Operating Agreement, a |
● | Upon the occurrence of the following events: (i) the involuntary termination of John B. Wood as CEO and chairman of the Class A member; (ii) the bankruptcy of the Class A member; or (iii) unless the Class A member exercises its option to acquire the entire membership interest of the Class B member upon a Change in Control of the Class A member, the transfer or issuance of more than fifty-one percent (51%) of the outstanding voting securities of the Class A member to a third party, the Class B member has the option to purchase the membership interest of the Class A member; provided, however, that in the event that the Class B member exercises the foregoing option, the Class A Member may then choose to purchase the entire interest of the Class B member. |
● | In the event that more than fifty percent (50%) of the ownership interests in the Class B member are transferred to persons or individuals (other than members of the immediate family of the initial owners of the Class B member) without the consent of Telos ID, the Class A member has the option to purchase the entire membership interest of the Class B member. |
● | The Class B member has the option to sell its interest to the Class A member at any time if there is not a letter of intent to sell Telos ID, a binding contract to sell all of the assets or membership interests in Telos ID, or a standstill for due diligence with respect to a sale of Telos ID. Notwithstanding the foregoing, the Class A member will not be obligated to purchase the interest of the Class B member if that purchase would constitute a violation of any existing line of credit available to the Company after giving effect to that purchase and the applicable lender refuses to consent to that purchase or to waive such violation. |
2016 | 2015 | 2014 | 2019 | 2018 | 2017 | |||||||||||||||||||
Non-controlling interest, beginning of period | 635 | $ | 584 | $ | 454 | $ | 2,621 | $ | 913 | $ | 2,229 | |||||||||||||
Net income | 3,506 | 2,438 | 1,676 | 4,264 | 3,377 | 2,335 | ||||||||||||||||||
Distributions | (1,912 | ) | (2,387 | ) | (1,548 | ) | (2,371 | ) | (1,669 | ) | (3,651 | ) | ||||||||||||
Purchase of 10% membership interest | -- | -- | 2 | |||||||||||||||||||||
Non-controlling interest, end of period | $ | 2,229 | $ | 635 | $ | 584 | $ | 4,514 | $ | 2,621 | $ | 913 |
December 31, 2016 | December 31, 2015 | |||||||||||||||
Cost | Accumulated Amortization | Cost | Accumulated Amortization | |||||||||||||
Other intangible assets | $ | 11,286 | $ | 11,286 | $ | 11,286 | $ | 10,157 | ||||||||
$ | 11,286 | $ | 11,286 | $ | 11,286 | $ | 10,157 |
December 31, | December 31, | |||||||||||||||
2016 | 2015 | 2019 | 2018 | |||||||||||||
Billed accounts receivable | $ | 13,164 | $ | 15,340 | $ | 11,917 | $ | 18,848 | ||||||||
Unbilled receivables | 6,352 | 4,190 | 16,745 | 16,000 | ||||||||||||
Allowance for doubtful accounts | (429 | ) | (485 | ) | (720 | ) | (306 | ) | ||||||||
$ | 19,087 | $ | 19,045 | |||||||||||||
Total | $ | 27,942 | $ | 34,542 |
Balance Beginning of Year | Bad Debt Expenses (1) | Recoveries (2) | Balance End of Year | |||||||||||||
Year Ended December 31, 2016 | $ | 485 | $ | (56 | ) | $ | -- | $ | 429 | |||||||
Year Ended December 31, 2015 | $ | 372 | $ | 113 | $ | -- | $ | 485 | ||||||||
Year Ended December 31, 2014 | $ | 321 | $ | 51 | $ | -- | $ | 372 |
Balance Beginning of Year | Bad Debt Expenses (1) | Recoveries (2) | Balance End of Year | |||||||||||||
Year Ended December 31, 2019 | $ | 306 | $ | 414 | $ | -- | $ | 720 | ||||||||
Year Ended December 31, 2018 | $ | 411 | $ | (105 | ) | $ | -- | $ | 306 | |||||||
Year Ended December 31, 2017 | $ | 429 | $ | (18 | ) | $ | -- | $ | 411 |
(1) | Accounts receivable reserves and reversal of allowance for subsequent collections, net |
(2) | Accounts receivable written-off and subsequent recoveries, net |
2016 | 2015 | 2014 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | (dollar amounts in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Federal | $ | 130,415 | 96.7 | % | $ | 117,328 | 97.3 | % | $ | 122,549 | 96.1 | % | $ | 149,257 | 93.7 | % | $ | 129,279 | 93.7 | % | $ | 101,519 | 94.2 | % | ||||||||||||||||||||||||
State & Local, and Commercial | 4,453 | 3.3 | % | 3,306 | 2.7 | % | 5,013 | 3.9 | % | 9,961 | 6.3 | % | 8,737 | 6.3 | % | 6,208 | 5.8 | % | ||||||||||||||||||||||||||||||
Total | $ | 134,868 | 100.0 | % | $ | 120,634 | 100.0 | % | $ | 127,562 | 100.0 | % | $ | 159,218 | 100.0 | % | $ | 138,016 | 100.0 | % | $ | 107,727 | 100.0 | % |
● | 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 is 102% of the principal amount, (b) from January 26, 2020 through October 14, 2020, the prepayment price is 101% of the principal amount, and (c) from October 15, 2020 to the maturity date, the prepayment price will be at par. However, the prepayment price for the additional $5 million loan attributable to the Fourth Amendment will be at par. |
● | The following financial covenants, as defined in the Credit Agreement, were amended and updated: Consolidated Leverage Ratio, Consolidated Senior Leverage Ratio, Consolidated Capital Expenditures, Minimum Fixed Charge Coverage Ratio, and Minimum Consolidated Net Working Capital. |
● | Any actual or potential non-compliance with the applicable provisions of the Credit Agreement were waived. |
● | The borrowing under the Credit Agreement continues 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. We incurred immaterial third party transaction costs which were expensed in the current period. |
● | The Company paid the Agent a fee of $110,000 in connection with the Fourth Amendment. We incurred immaterial third party transaction costs which were expensed in the current period. |
● | The exit fee was increased from $825,000 to $1,200,000. |
December 31, | ||||||||
2018 | 2017 | |||||||
Senior term loan principal, including exit fee | $ | 17,200 | $ | 11,825 | ||||
Less: Unamortized discount, debt issuance costs, and lender fees | (865 | ) | (841 | ) | ||||
Senior term loan, net | $ | 16,335 | $ | 10,984 |
Number of Shares (000's) | Weighted Average Exercise Price | |||||||
2014 Stock Option Activity | ||||||||
Outstanding at beginning of year | 20 | $ | 0.62 | |||||
Granted | -- | -- | ||||||
Exercised | (20 | ) | 0.62 | |||||
Canceled | -- | -- | ||||||
Outstanding at end of year | -- | -- | ||||||
Exercisable at end of year | -- | -- |
December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
(number of shares) | ||||||||||||
Outstanding at beginning of year | 4,920,000 | 4,975,000 | -- | |||||||||
Granted | -- | -- | 5,005,000 | |||||||||
Forfeited | (15,000 | ) | (55,000 | ) | (30,000 | ) | ||||||
Outstanding at end of year | 4,905,000 | 4,920,000 | 4,975,000 |
For the Years Ended December 31, | For the Years Ended December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2019 | 2018 | 2017 | |||||||||||||||||||
Current provision (benefit) | ||||||||||||||||||||||||
Federal | $ | 114 | $ | (902 | ) | $ | (1,759 | ) | $ | 25 | $ | (29 | ) | $ | (86 | ) | ||||||||
State | 28 | 54 | (194 | ) | 68 | (17 | ) | 29 | ||||||||||||||||
Total current | 142 | (848 | ) | (1,953 | ) | 93 | (46 | ) | (57 | ) | ||||||||||||||
Deferred provision (benefit) | ||||||||||||||||||||||||
Deferred (benefit) provision | ||||||||||||||||||||||||
Federal | 155 | 4,333 | (3,820 | ) | 88 | 15 | (2,622 | ) | ||||||||||||||||
State | 37 | 780 | (215 | ) | (285 | ) | 62 | (88 | ) | |||||||||||||||
Total deferred | 192 | 5,113 | (4,035 | ) | (197 | ) | 77 | (2,710 | ) | |||||||||||||||
Total provision (benefit) | $ | 334 | $ | 4,265 | $ | (5,988 | ) | |||||||||||||||||
Total (benefit) provision | $ | (104 | ) | $ | 31 | $ | (2,767 | ) |
For the Years Ended December 31, | For the Years Ended December 31, | ||||||||||||||||
2016 | 2015 | 2014 | 2019 | 2018 | 2017 | ||||||||||||
Computed expected income tax provision | 34.0% | 34.0% | 35.0% | 21.0 | % | 21.0 | % | 34.0 | % | ||||||||
State income taxes, net of federal income tax benefit | 0.8 | 2.1 | 2.5 | (0.2 | ) | (20.9 | ) | 0.9 | |||||||||
Change in valuation allowance for deferred tax assets | (21.5) | (61.3) | 0.1 | (8.5 | ) | 47.7 | (26.9 | ) | |||||||||
Cumulative deferred adjustments | (0.3) | (0.1) | (0.3) | (0.4 | ) | -- | -- | ||||||||||
Provision to return adjustments | (0.4) | 1.3 | 1.1 | 0.5 | 1.8 | -- | |||||||||||
Other permanent differences | (1.8) | (1.1) | (0.5) | (3.7 | ) | (12.2 | ) | (1.3 | ) | ||||||||
Dividend and accretion on preferred stock | (19.3) | (11.3) | (7.5) | (12.3 | ) | (49.9 | ) | (15.2 | ) | ||||||||
FIN 48 liability | 0.7 | (0.8) | (0.6) | (1.3 | ) | (4.6 | ) | (0.9 | ) | ||||||||
R&D credit | 3.3 | 1.6 | 3.0 | 6.5 | 27.7 | 4.6 | |||||||||||
Impact of Tax Act | -- | (12.5 | ) | 35.5 | |||||||||||||
Other | (0.4) | (0.9) | -- | -- | -- | 1.5 | |||||||||||
(4.9)% | (36.5)% | 32.8% | 1.6 | % | (1.9 | )% | 32.2 | % |
December 31, | December 31, | |||||||||||||||
2016 | 2015 | 2019 | 2018 | |||||||||||||
Deferred tax assets: | ||||||||||||||||
Accounts receivable, principally due to allowance for doubtful accounts | $ | 161 | $ | 176 | $ | 185 | $ | 79 | ||||||||
Allowance for inventory obsolescence and amortization | 778 | 623 | 316 | 281 | ||||||||||||
Accrued liabilities not currently deductible | 2,234 | 2,218 | 1,649 | 1,634 | ||||||||||||
Accrued compensation | 1,006 | 840 | 1,655 | 1,206 | ||||||||||||
Deferred rent | 7,682 | 8,008 | 4,808 | 4,750 | ||||||||||||
Section 163(j) interest limitation | 804 | 246 | ||||||||||||||
Net operating loss carryforwards - federal | 1,301 | 524 | 2,583 | 1,956 | ||||||||||||
Net operating loss carryforwards - state | 405 | 344 | 796 | 653 | ||||||||||||
Federal tax credit | 533 | 202 | 1,326 | 983 | ||||||||||||
Total gross deferred tax assets | 14,100 | 12,935 | 14,122 | 11,788 | ||||||||||||
Less valuation allowance | (10,499 | ) | (9,027 | ) | (7,206 | ) | (6,652 | ) | ||||||||
Total deferred tax assets, net of valuation allowance | 3,601 | 3,908 | 6,916 | 5,136 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Amortization and depreciation | (2,696 | ) | (3,307 | ) | (2,623 | ) | (2,237 | ) | ||||||||
Unbilled accounts receivable, deferred for tax purposes | (787 | ) | (589 | ) | (1,611 | ) | (955 | ) | ||||||||
Goodwill basis adjustment and amortization | (3,451 | ) | (3,199 | ) | (2,886 | ) | (2,713 | ) | ||||||||
Telos ID basis difference | (58 | ) | (12 | ) | (417 | ) | (49 | ) | ||||||||
Total deferred tax liabilities | (6,992 | ) | (7,107 | ) | (7,537 | ) | (5,954 | ) | ||||||||
Net deferred tax liabilities | $ | (3,391 | ) | $ | (3,199 | ) | $ | (621 | ) | $ | (818 | ) |
Balance Beginning of Period | Additions | Recoveries | Balance End of Period | |||||||||||||
December 31, 2016 | $ | 9,027 | $ | 1,472 | $ | -- | $ | 10,499 | ||||||||
December 31, 2015 | $ | 1,868 | $ | 7,159 | $ | -- | $ | 9,027 | ||||||||
December 31, 2014 | $ | 1,901 | $ | -- | $ | (33 | ) | $ | 1,868 |
Balance Beginning of Period | Additions | Recoveries | Balance End of Period | |||||||||||||
December 31, 2019 | $ | 6,652 | $ | 554 | $ | -- | $ | 7,206 | ||||||||
December 31, 2018 | $ | 7,219 | $ | -- | $ | (567 | ) | $ | 6,652 | |||||||
December 31, 2017 | $ | 10,499 | $ | -- | $ | (3,280 | ) | $ | 7,219 |
2016 | 2015 | 2014 | 2019 | 2018 | 2017 | |||||||||||||||||||
Unrecognized tax benefits, beginning of period | $ | 803 | $ | 708 | $ | 607 | $ | 648 | $ | 677 | $ | 762 | ||||||||||||
Gross (decreases) increases—tax positions in prior period | (66 | ) | 92 | 105 | ||||||||||||||||||||
Gross increases—tax positions in current period | 46 | 38 | 47 | |||||||||||||||||||||
Gross decreases — tax positions in prior period | (39 | ) | (63 | ) | (127 | ) | ||||||||||||||||||
Gross increases — tax positions in current period | 101 | 92 | 77 | |||||||||||||||||||||
Settlements | (21 | ) | (35 | ) | (51 | ) | (37 | ) | (58 | ) | (35 | ) | ||||||||||||
Unrecognized tax benefits, end of period | $ | 762 | $ | 803 | $ | 708 | $ | 673 | $ | 648 | $ | 677 |
Property | Equipment | Total | ||||||||||
2017 | $ | 1,899 | $ | 1 | $ | 1,900 | ||||||
2018 | 1,947 | -- | 1,947 | |||||||||
2019 | 1,995 | -- | 1,995 | |||||||||
2020 | 2,045 | -- | 2,045 | |||||||||
2021 | 2,096 | -- | 2,096 | |||||||||
Remainder | 17,268 | -- | 17,268 | |||||||||
Total minimum obligations | 27,250 | 1 | 27,251 | |||||||||
Less amounts representing interest (ranging from 5.0% to 18.8%) | (7,343 | ) | -- | (7,343 | ) | |||||||
Net present value of minimum obligations | 19,907 | 1 | 19,908 | |||||||||
Less current portion | (917 | ) | (1 | ) | (918 | ) | ||||||
Long-term capital lease obligations at December 31, 2016 | $ | 18,990 | $ | -- | $ | 18,990 |
2017 | $ | 560 | ||
2018 | 491 | |||
2019 | 491 | |||
2020 | 505 | |||
2021 | 502 | |||
Remainder | 719 | |||
Total minimum lease payments | $ | 3,268 |
Operating Leases | Finance Leases | |||||||
2020 | $ | 710 | $ | 2,046 | ||||
2021 | 715 | 2,097 | ||||||
2022 | 564 | 2,149 | ||||||
2023 | 368 | 2,203 | ||||||
2024 | 28 | 2,258 | ||||||
After 2024 | -- | 10,658 | ||||||
Total minimum lease payments | 2,385 | 21,411 | ||||||
Less imputed interest | (230 | ) | (4,546 | ) | ||||
Net present value of minimum lease payments | 2,155 | 16,865 | ||||||
Less current portion | (602 | ) | (1,224 | ) | ||||
Long-term lease obligations at December 31, 2019 | $ | 1,553 | $ | 15,641 |
Year Ended December 31, 2019 | ||||
Operating lease cost | $ | 597 | ||
Short-term lease cost (1) | 147 | |||
Finance lease cost | ||||
Amortization of finance lease assets | 1,221 | |||
Interest on finance lease liabilities | 881 | |||
Total finance lease cost | 2,102 | |||
Total lease costs | $ | 2,846 |
(1) | Leases that have terms of 12 months or less. |
Year Ended December 31, 2019 | ||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Cash flows from operating activities - operating leases | $ | 604 | ||
Cash flows from operating activities - finance leases | $ | 1,995 | ||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | 488 |
Balance Beginning of Year | Accruals | Warranty Expenses | Balance End of Year | |||||||||||||
(amount in thousands) | ||||||||||||||||
Year Ended December 31, 2016 | $ | 133 | $ | 279 | $ | (361 | ) | $ | 51 | |||||||
Year Ended December 31, 2015 | $ | 189 | $ | 125 | $ | (181 | ) | $ | 133 | |||||||
Year Ended December 31, 2014 | $ | 113 | $ | 140 | $ | (64 | ) | $ | 189 |
Balance Beginning of Year | Accruals | Warranty Expenses | Balance End of Year | |||||||||||||
(amount in thousands) | ||||||||||||||||
Year Ended December 31, 2019 | $ | 30 | $ | -- | $ | -- | $ | 30 | ||||||||
Year Ended December 31, 2018 | $ | 30 | $ | -- | $ | -- | $ | 30 | ||||||||
Year Ended December 31, 2017 | $ | 51 | $ | -- | $ | (21 | ) | $ | 30 |
Quarters Ended | Quarters Ended | |||||||||||||||||||||||||||||||
March 31 | June 30 | Sept. 30 | Dec. 31 | March 31 | June 30 | Sept. 30 | Dec. 31 | |||||||||||||||||||||||||
2016 | ||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||
Revenue | $ | 27,078 | $ | 26,798 | $ | 54,940 | $ | 26,052 | $ | 31,166 | $ | 36,048 | $ | 45,531 | $ | 46,473 | ||||||||||||||||
Gross profit | 10,582 | 9,452 | 14,538 | 8,874 | 8,976 | 10,015 | 16,313 | 17,040 | ||||||||||||||||||||||||
(Loss) income before income taxes and non-controlling interest | (149 | ) | (1,323 | ) | 1,503 | (3,366 | ) | (3,137 | ) | (1,974 | ) | 3,708 | (838 | ) | ||||||||||||||||||
Net loss attributable to Telos Corporation (1) | (867 | ) | (1,912 | ) | (91 | ) | (4,305 | ) | ||||||||||||||||||||||||
Net (loss) income attributable to Telos Corporation (1)(2) | (3,413 | ) | (1,741 | ) | 2,233 | (3,480 | ) | |||||||||||||||||||||||||
2015 | ||||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||
Revenue | $ | 28,019 | $ | 32,028 | $ | 33,662 | $ | 26,925 | $ | 32,401 | $ | 34,943 | $ | 34,695 | $ | 35,977 | ||||||||||||||||
Gross profit | 6,778 | 7,170 | 8,674 | 8,051 | 10,232 | 12,078 | 16,287 | 14,465 | ||||||||||||||||||||||||
Loss before income taxes and non-controlling interest | (3,030 | ) | (2,564 | ) | (959 | ) | (2,684 | ) | ||||||||||||||||||||||||
Net loss attributable to Telos Corporation (1)(2) | (2,746 | ) | (2,408 | ) | (1,406 | ) | (9,380 | ) | ||||||||||||||||||||||||
(Loss) income before income taxes and non-controlling interest | (1,693 | ) | 450 | 4,722 | (1,711 | ) | ||||||||||||||||||||||||||
Net (loss) income attributable to Telos Corporation (1)(3) | (1,986 | ) | (87 | ) | 4,113 | (3,680 | ) |
(1) | Changes in net income are the result of several factors, including seasonality of the government year-end buying season, as well as the nature and timing of other deliverables. |
(2) |
(3) | Net income for the third quarter of 2018 included $5.6 million of revenue accruals for multiple contracts as a result of several years of cumulative indirect rate adjustments which did not include direct costs in Secure Mobility and Network Management/Defense Enterprise deliverables. |
(1) | Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; |
(2) | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and |
(3) | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements. |
Exhibit Number | Description |
3.1 | |
Articles of Amendment of C3, Inc. dated April 13, 1995 (Incorporated by reference to Exhibit | |
Amended and Restated Bylaws of the Company, as amended on October 3, 2007 (Incorporated by reference to Exhibit 3.1 to the | |
4.1 | Credit Agreement, dated January 25, 2017, among Telos Corporation, Xacta Corporation, ubIQuity.com, Inc., Teloworks, Inc., Enlightenment Capital Solutions Fund II, L.P., and the lenders party thereto (Incorporated by reference to Exhibit 4.1 to the |
First Amendment to Credit Agreement, effective as of February 23, 2017, among Telos Corporation, Xacta Corporation, ubIQuity.com, Inc., Teloworks, Inc., Enlightenment Capital Solutions Fund II, L.P., and the lenders party thereto (Incorporated by reference to Exhibit 4.2 filed with the Company’s Form 10-K report for the year ended December 31, 2016) | |
4.3 | Second Amendment to Credit Agreement, dated April 18, 2017, among Telos Corporation, Xacta Corporation, ubIQuity.com, Inc., Teloworks, Inc., Enlightenment Capital Solutions Fund II, L.P., and the lenders party thereto (Incorporated by reference to Exhibit 4.1 filed with the Company’s Current Report on Form 8-K on April 24, 2017) |
4.4 | Subordination and Intercreditor Agreement, dated April 18, 2017, among JP Charitable Foundation, Telos Corporation, Xacta Corporation, ubIQuity.com, Inc., Teloworks, Inc., and Enlightenment Capital Solutions Fund II, L.P. (Incorporated by reference to Exhibit 4.2 filed with the Company’s Current Report on Form 8-K on April 24, 2017) |
4.5 | Subordination and Intercreditor Agreement, dated April 18, 2017, among Porter Foundation Switzerland, Telos Corporation, Xacta Corporation, ubIQuity.com, Inc., Teloworks, Inc., and Enlightenment Capital Solutions Fund II, L.P. (Incorporated by reference to Exhibit 4.3 filed with the Company’s Current Report on Form 8-K on April 24, 2017) |
4.6 | First Amendment to Subordinated Loan Agreement, dated April 18, 2017, between Telos Corporation and JP Charitable Foundation (Incorporated by reference to Exhibit 4.4 filed with the Company’s Current Report on Form 8-K on April 24, 2017) |
4.7 | First Amendment to Subordinated Loan Agreement, dated April 18, 2017, between Telos Corporation and Porter Foundation Switzerland (Incorporated by reference to Exhibit 4.5 filed with the Company’s Current Report on Form 8-K on April 24, 2017) |
4.8 | Amended and Restated Subordinated Promissory Note, dated April 18, 2017, by Telos Corporation in favor of JP Charitable Foundation (Incorporated by reference to Exhibit 4.6 filed with the Company’s Current Report on Form 8-K on April 24, 2017) |
4.9 | Amended and Restated Subordinated Promissory Note, dated April 18, 2017, by Telos Corporation in favor of Porter Foundation Switzerland (Incorporated by reference to Exhibit 4.7 filed with the Company’s Current Report on Form 8-K on April 24, 2017) |
4.10 | Third Amendment to Credit Agreement and Waiver, dated March 30, 2018, among Telos Corporation, Xacta Corporation, ubIQuity.com, Inc., Teloworks, Inc., Enlightenment Capital Solutions Fund II, L.P., and the lenders party thereto (Incorporated by reference to Exhibit 4.10 filed with the Company’s Form 10-K report for the year ended December 31, 2017) |
4.11 | Fourth Amendment to Credit Agreement and Waiver; First Amendment to Fee Letter between Telos Corporation and Enlightenment Capital Solutions Fund II, L.P. dated July 19, 2019 (Incorporated by reference to Exhibit 99.1 filed with the Company’s Current Report on Form 8-K on July 23, 2019) |
4.12 | Fifth Amendment to Credit Agreement and Second Amendment to Fee Letter between Telos Corporation and Enlightenment Capital Solutions Fund II, L.P. dated March 26, 2020 (Incorporated by reference to Exhibit 99.1 filed with the Company’s Current Report on Form 8-K on March 30, 2020) |
10.1* | |
Telos Corporation 2008 Omnibus Long-Term Incentive Plan (Incorporated by reference to Exhibit 10.21 filed with the | |
Second Amended Employment Agreement, dated as of November 12, 2012, between the Company and John B. Wood (Incorporated by reference to Exhibit 10.1 filed with the | |
Second Amended Employment Agreement, dated as of November 12, 2012, between the Company and Edward L. Williams (Incorporated by reference to Exhibit 10.2 filed with the | |
Second Amended Employment Agreement, dated as of November 12, 2012, between the Company and Michele Nakazawa (Incorporated by reference to Exhibit 10.3 filed with the |
Amendment to Employment Agreement, dated as of November 12, 2012, between the Company and Brendan D. Malloy (Incorporated by reference to Exhibit 10.4 filed with the |
Form of Employment Agreement between the Company and six of its executive officers (Incorporated by reference to Exhibit 10.5 filed with the | |
Telos Corporation 2013 Omnibus Long-Term Incentive Plan (Incorporated by reference to Appendix A filed with the | |
Form Restricted Stock Agreement (Incorporated by reference to Exhibit 99.2 filed with the | |
Second Amended and Restated Operating Agreement of Telos Identity Management Solutions , LLC, dated December 24, 2014 (Incorporated by reference to Exhibit 99.2 filed with the | |
Subordinated Loan Agreement between the Company and Porter Foundation Switzerland dated March 31, 2015 (Incorporated by reference to Exhibit 10.37 filed with the | |
Subordinated Promissory Note between the Company and Porter Foundation Switzerland dated March 31, 2015 (Incorporated by reference to Exhibit 10.38 filed with the | |
Subordinated Loan Agreement between the Company and JP Charitable Foundation Switzerland dated March 31, 2015 (Incorporated by reference to Exhibit 10.39 filed with the | |
Subordinated Promissory Note between the Company and JP Charitable Foundation Switzerland dated March 31, 2015 (Incorporated by reference to Exhibit 10.40 filed with the | |
Accounts Receivable Purchase Agreement between Telos Corporation and Republic Capital Access, LLC dated July 15, 2016 (Incorporated by reference to Exhibit 99.1 filed with the | |
Financing and Security Agreement between Telos Corporation and Action Capital Corporation, dated July 15, 2016 (Incorporated by reference to Exhibit 99.2 filed with the | |
Telos Corporation 2016 Omnibus Long-Term Incentive Plan (Incorporated by reference to Exhibit 10.3 filed with the | |
Notice of Grant of Restricted Stock (Incorporated by reference to Exhibit 10.4 filed with the | |
Amendment to Financing and Security Agreement Between the Company and Action Capital Corporation dated September 6, 2016 (Incorporated by reference to Exhibit 99.1 filed with the | |
Telos ID Sale Bonus Plan (Incorporated by reference to Exhibit 10.48 filed with the Company’s Form 10-K report for the year ended December 31, 2016) | |
10.21 | |
10.22* | Telos Corporation Senior Officer Incentive Program, Adopted as Revised March 29, 2018 (Incorporated by reference to Exhibit 10.49 filed with the Company’s Form 10-K report for the year ended December 31, 2017) |
10.23 | Amendment to Financing and Security Agreement Between Telos Corporation and Action Capital Corporation dated August 13, 2018 (Incorporated by reference to Exhibit 10.1 filed with the Company’s Form 10-Q report for the quarter ended June 30, 2018) |
10.24+ | |
21+ | |
101.INS^ | XBRL Instance Document |
101.SCH^ | XBRL Taxonomy Extension Schema |
101.CAL^ | XBRL Taxonomy Extension Calculation Linkbase |
101.DEF^ | XBRL Taxonomy Extension Definition Linkbase |
101.LAB^ | XBRL Taxonomy Extension Label Linkbase |
101.PRE^ | XBRL Taxonomy Extension Presentation Linkbase |
TELOS CORPORATION | |||
By: | /s/ John B. Wood | ||
John B. Wood Chief Executive Officer and Chairman of the Board (Principal Executive Officer) | |||
Date: | |||
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of Telos Corporation and in the capacities and on the dates indicated. | |||
Signature | Title | Date | |
/s/ John B. Wood | Chief Executive Officer and Chairman of the Board (Principal Executive Officer) | April 10, 2020 | |
John B. Wood | |||
/s/ Michele Nakazawa | Chief Financial Officer (Principal Financial and Accounting Officer) | ||
Michele Nakazawa | |||
Director | |||
William H. Alderman | |||
/s/ Bernard C. Bailey | Director | ||
Bernard C. Bailey | |||
/s/ David Borland | Director | ||
David Borland | |||
/s/ Bruce R. Harris | Director | ||
Bruce R. Harris, Lt. Gen., USA (Ret.) | |||
/s/ Charles S. Mahan, Jr. | Director | ||
Charles S. Mahan, Jr. Lt. Gen., USA (Ret) | |||
/s/ John W. Maluda | Director | ||
John W. Maluda, Major | |||
/s/ Robert J. Marino | Director | ||
Robert J. Marino | |||
Director | |||
Andrew R. Siegel |