Telos (TLS) 10-Q 12 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2024	Nov. 05, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-08443
Entity Registrant Name	TELOS CORPORATION
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	52-0880974
Entity Address, Address Line One	19886 Ashburn Road
Entity Address, City or Town	Ashburn
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	20147-2358
City Area Code	703
Local Phone Number	724-3800
Title of 12(b) Security	Common stock, $0.001 par value per share
Trading Symbol	TLS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		72,380,609
Entity Central Index Key	0000320121
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Total revenue	$ 23,783	$ 36,186	$ 81,900	$ 104,319
Impairment loss on intangible assets	5,333	0	5,333	0
Depreciation and amortization	1,490	1,945	4,807	2,291
Total cost of sales	20,640	23,173	58,089	65,465
Gross profit	3,143	13,013	23,811	38,854
Operating expenses:
Research and development expenses	2,409	2,805	7,038	8,284
Selling, general and administrative expenses	23,225	19,552	56,346	62,351
Impairment loss on intangible assets	6,373	349	6,373	349
Total operating expenses	32,007	22,706	69,757	70,984
Operating loss	(28,864)	(9,693)	(45,946)	(32,130)
Other income	983	1,222	3,299	5,367
Interest expense	(157)	(178)	(492)	(611)
Loss before income taxes	(28,038)	(8,649)	(43,139)	(27,374)
Provision for income taxes	(17)	(23)	(51)	(68)
Net loss	$ (28,055)	$ (8,672)	$ (43,190)	$ (27,442)
Net loss per share:
Basic (in dollars per share)	$ (0.39)	$ (0.12)	$ (0.60)	$ (0.40)
Diluted (in dollars per share)	$ (0.39)	$ (0.12)	$ (0.60)	$ (0.40)
Weighted-average shares outstanding:
Basic (in shares)	72,309	69,571	71,654	69,062
Diluted (in shares)	72,309	69,571	71,654	69,062
Service
Total revenue	$ 22,197	$ 34,385	$ 78,017	$ 94,866
Total cost of sales (excluding impairment loss, depreciation and amortization)	12,689	20,683	45,681	58,613
Product
Total revenue	1,586	1,801	3,883	9,453
Total cost of sales (excluding impairment loss, depreciation and amortization)	$ 1,128	$ 545	$ 2,268	$ 4,561

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net loss	$ (28,055)	$ (8,672)	$ (43,190)	$ (27,442)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	22	29	(34)	31
Actuarial loss on pension liability adjustment	0	0	(30)	0
Other comprehensive income (loss)	22	29	(64)	31
Comprehensive loss	$ (28,033)	$ (8,643)	$ (43,254)	$ (27,411)

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Assets:
Cash and cash equivalents	$ 69,762	$ 99,260
Accounts receivable, net	14,881	30,424
Inventories, net	1,406	1,420
Prepaid expenses	12,017	7,520
Other current assets	1,253	1,367
Total current assets	99,319	139,991
Property and equipment, net	3,572	3,457
Finance lease right-of-use assets, net	5,696	6,612
Operating lease right-of-use assets, net	673	216
Goodwill	17,922	17,922
Intangible assets, net	29,627	39,616
Other assets	9,520	885
Total assets	166,329	208,699
Liabilities:
Accounts payable and other accrued liabilities	6,289	13,750
Accrued compensation and benefits	9,277	14,569
Contract liabilities	6,779	6,728
Finance lease obligations – current portion	1,839	1,730
Operating lease obligations – current portion	205	97
Other current liabilities	2,904	2,324
Total current liabilities	27,293	39,198
Finance lease obligations – non-current portion	8,126	9,518
Operating lease obligations – non-current portion	472	123
Deferred income taxes	849	813
Other liabilities	106	44
Total liabilities	36,846	49,696
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 par value, 250,000,000 shares authorized, 72,380,609 shares and 70,239,890 shares issued and outstanding as of September 30, 2024, and December 31, 2023, respectively	111	109
Additional paid-in capital	447,513	433,781
Accumulated other comprehensive loss	(124)	(60)
Accumulated deficit	(318,017)	(274,827)
Total stockholders’ equity	129,483	159,003
Total liabilities and stockholders’ equity	$ 166,329	$ 208,699

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Stockholders’ equity:
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	250,000,000	250,000,000
Common stock, issued (in shares)	72,380,609	70,239,890
Common stock, outstanding (in shares)	72,380,609	70,239,890

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net loss	$ (43,190)	$ (27,442)
Adjustments to reconcile net loss to cash used in operating activities:
Stock-based compensation	14,017	22,462
Depreciation and amortization	9,368	5,987
Impairment loss on intangible assets	11,706	349
Deferred income tax provision	37	37
Accretion of discount in acquisition holdback	0	2
(Gain) loss on disposal of fixed assets	(13)	1
(Recovery from) provision for doubtful accounts	(28)	128
Amortization of debt issuance costs	52	51
Gain on early extinguishment of other financing obligations	0	(1,427)
Changes in other operating assets and liabilities:
Accounts receivable	15,571	14,517
Inventories	14	1,893
Prepaid expenses, other current assets, other assets	(10,049)	(4,106)
Accounts payable and other accrued payables	(8,161)	(14,942)
Accrued compensation and benefits	(5,266)	2,496
Contract liabilities	52	(670)
Other current liabilities	470	(2,703)
Net cash used in operating activities	(15,420)	(3,367)
Cash flows from investing activities:
Capitalized software development costs	(9,104)	(11,960)
Purchase of investment	(3,000)	0
Purchases of property and equipment, net	(381)	(350)
Net cash used in investing activities	(12,485)	(12,310)
Cash flows from financing activities:
Payments under finance lease obligations	(1,283)	(1,180)
Payment of tax withholding related to net share settlement of equity awards	(457)	(1,676)
Proceeds from exercise of stock options	149	0
Payment of DFT holdback amount	0	(564)
Repurchase of common stock	0	(139)
Payments for debt issuance costs	0	(114)
Net cash used in financing activities	(1,591)	(3,673)
Net change in cash, cash equivalents, and restricted cash	(29,496)	(19,350)
Cash, cash equivalents, and restricted cash, beginning of period	99,396	119,438
Cash, cash equivalents, and restricted cash, end of period	$ 69,900	$ 100,088

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2022		67,431,000
Beginning balance at Dec. 31, 2022	$ 172,354	$ 106	$ 412,708	$ (55)	$ (240,405)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(27,442)				(27,442)
Foreign currency translation gain (loss)	31			31
Actuarial loss on pension liability adjustment	0
Restricted stock unit awards vested, net of shares withheld to cover tax withholding (in shares)		1,415,000
Restricted stock unit awards vested, net of shares withheld to cover tax withholding	(1,675)	$ 1	(1,676)
Stock-based compensation	18,811		18,811
Issuance of common stock for 401K match (in shares)		777,000
Issuance of common stock for 401K match	1,942	$ 1	1,941
Ending balance (in shares) at Sep. 30, 2023		69,623,000
Ending balance at Sep. 30, 2023	164,021	$ 108	431,784	(24)	(267,847)
Beginning balance (in shares) at Jun. 30, 2023		69,467,000
Beginning balance at Jun. 30, 2023	167,536	$ 108	426,656	(53)	(259,175)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(8,672)				(8,672)
Foreign currency translation gain (loss)	29			29
Actuarial loss on pension liability adjustment	0
Restricted stock unit awards vested, net of shares withheld to cover tax withholding (in shares)		156,000
Restricted stock unit awards vested, net of shares withheld to cover tax withholding	(90)		(90)
Stock-based compensation	5,218		5,218
Ending balance (in shares) at Sep. 30, 2023		69,623,000
Ending balance at Sep. 30, 2023	$ 164,021	$ 108	431,784	(24)	(267,847)
Beginning balance (in shares) at Dec. 31, 2023	70,239,890	70,240,000
Beginning balance at Dec. 31, 2023	$ 159,003	$ 109	433,781	(60)	(274,827)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(43,190)				(43,190)
Foreign currency translation gain (loss)	(34)			(34)
Actuarial loss on pension liability adjustment	(30)			(30)
Restricted stock unit awards vested, net of shares withheld to cover tax withholding (in shares)		1,687,000
Restricted stock unit awards vested, net of shares withheld to cover tax withholding	(457)	$ 2	(459)
Stock-based compensation	$ 12,424		12,424
Issuance of common stock upon exercise of stock options (in shares)	83,000	83,000
Issuance of common stock upon exercise of stock options	$ 149		149
Issuance of common stock for 401K match (in shares)		370,000
Issuance of common stock for 401K match	$ 1,618		1,618
Ending balance (in shares) at Sep. 30, 2024	72,380,609	72,380,000
Ending balance at Sep. 30, 2024	$ 129,483	$ 111	447,513	(124)	(318,017)
Beginning balance (in shares) at Jun. 30, 2024		72,223,000
Beginning balance at Jun. 30, 2024	149,149	$ 111	439,146	(146)	(289,962)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(28,055)				(28,055)
Foreign currency translation gain (loss)	22			22
Actuarial loss on pension liability adjustment	0
Restricted stock unit awards vested, net of shares withheld to cover tax withholding (in shares)		132,000
Restricted stock unit awards vested, net of shares withheld to cover tax withholding	(28)		(28)
Stock-based compensation	8,350		8,350
Issuance of common stock upon exercise of stock options (in shares)		25,000
Issuance of common stock upon exercise of stock options	$ 45		45
Ending balance (in shares) at Sep. 30, 2024	72,380,609	72,380,000
Ending balance at Sep. 30, 2024	$ 129,483	$ 111	$ 447,513	$ (124)	$ (318,017)

ORGANIZATION

ORGANIZATION	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	ORGANIZATION Telos Corporation, together with its subsidiaries (collectively, the "Company," "we," "our" or "Telos"), 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 shares of Xacta Corporation and ubIQuity.com, inc. (a holding company for Xacta Corporation), and 100% ownership interest in Telos Identity Management Solutions, LLC ("Telos ID"), Teloworks, Inc., and Telos APAC Pte. Ltd. ("Telos APAC").

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principle of Consolidation The accompanying unaudited consolidated financial statements include the accounts of Telos and its subsidiaries (see Note 1 – Organization ), all of whose issued and outstanding share capital is wholly owned directly and indirectly by Telos Corporation. All intercompany transactions have been eliminated in consolidation. Basis of Presentation for Interim Periods Certain information and footnote disclosures normally included for the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted for the interim periods presented. We believe that the unaudited interim financial statements include all adjustments (which are normal and recurring) necessary for a fair statement of our financial position and the results of operations and cash flows for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of results that may be expected for the year or future periods. The financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto for the year ended December 31, 2023, included in our Annual Report on Form 10-K for the fiscal year then ended. We have continued to follow the accounting policies set forth in those financial statements. Basis of Comparison Certain prior-period amounts have been reclassified to conform to the current period presentation. Starting in the first quarter of 2024, we reclassified sales and marketing expenses and general and administrative expenses to be presented together as selling, general and administrative ("SG&A") expenses on the consolidated statements of operations. In the third quarter of 2024, we started presenting impairment losses as separate line items from research and development ("R&D") expenses on the consolidated statements of operations. The reclassifications had no net impact on gross profit, total operating expenses or net loss in the unaudited consolidated statements of operations. Use of Estimates Preparing unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities, and disclosure of contingent assets and liabilities. The Company regularly assesses these estimates; however, actual results could differ from those estimates. We base our estimates on historical experience, currently available information, and various other assumptions that we believe are reasonable under the circumstances. Management evaluates these estimates and assumptions on an ongoing basis, including those relating to revenue recognition on cost estimation on certain contracts, allowance for credit losses, inventory obsolescence, valuation allowance for deferred tax assets, income taxes, certain assumptions related to share-based compensation, valuation of intangible assets and goodwill, restructuring expenses accruals, and contingencies. Actual results could differ from those estimates. The impact of changes in estimates is recorded in the period in which they become known. Selling, General and Administrative Expenses Selling, general and administrative expenses include general and administrative expenses, as well as direct and indirect sales and marketing expenses. These costs consist primarily of compensation and benefits (including incentive-based compensation), advertising, facilities, and certain types of depreciation and amortization. Restructuring Expenses From time to time, the Company initiates restructuring activities to execute management's strategy and optimize its cost structure. Restructuring activities may include streamlining its workforce or realignment of resources to support its business strategies and enhance operational efficiency. 2022 Restructuring Plan As previously disclosed, in the fourth quarter of 2022, the Company committed to a restructuring plan to streamline its workforce and spending to better align its cost structure with its volume of business ("2022 restructuring"). The 2022 restructuring plan reduced the Company's workforce, with a majority of the affected employees separating from the business in early 2023. In connection with this restructuring plan, we incurred restructuring-related costs, including employee severance and related benefit costs. Employee severance and related benefit costs include cash payments, outplacement services and continuing health insurance coverage. Severance costs pursuant to ongoing-benefit arrangements are recognized when probable and reasonably estimated. Other related costs include external consulting and advisory fees related to implementing the restructuring plan. These costs are recognized at fair value in the period in which the costs are incurred. The Company incurred a cumulative amount of $3.9 million of restructuring expenses, which is the total expected costs for this restructuring plan. The actions under this restructuring plan were substantially completed in fiscal year 2023 and were fully paid in the third quarter of 2024. 2024 Restructuring Plan Beginning in the third quarter of 2024, the Company undertook another restructuring action in an effort to optimize its strategic priorities and cost structure ("2024 restructuring"). As part of the 2024 restructuring plan, the Company decided to discontinue the development and/or sale of selected solutions or parts of solutions, which resulted in the impairment of capitalized software assets and a reduction in workforce. The restructuring charges under the 2024 restructuring plan include severance and related benefit costs. The Company accrues severance and related benefit costs under the 2024 restructuring plan when it is probable that a liability exists and the amount is reasonably estimated. As of September 30, 2024, the cumulative amount of incurred severance and benefit costs related to the 2024 restructuring plan was $1.4 million. The 2024 restructuring actions are expected to be completed and fully paid during the remainder of fiscal year 2024. In addition, as a result of the Company's decision to abandon the development or sale of selected solutions in the third quarter of 2024, the Company wrote-off $6.4 million of its previously capitalized software assets. This was reported as an impairment loss on intangible assets under operating expenses on the unaudited consolidated statement of operations. Table 2.1: Restructuring Expenses and Impairment Loss Statements of Operations For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 (in thousands) 2022 Restructuring Plan: Severance and related benefit costs SG&A $ — $ — $ (10) $ (103) Other related costs SG&A — — — 1,300 2024 Restructuring Plan: Severance and related benefit costs Cost of sales 393 — 393 — Severance and related benefit costs R&D, SG&A 1,054 — 1,054 — Total restructuring expenses 1,447 — 1,437 1,197 Impairment of intangible assets (1) Impairment loss on intangible assets 6,373 — 6,373 — Total restructuring expenses and impairment loss $ 7,820 $ — $ 7,810 $ 1,197 (1) The recoverability evaluation of intangible assets resulted in an $11.7 million impairment loss, of which $5.3 million was recorded under cost of sales for the discontinued parts of certain solutions, and $6.4 million was recorded under operating expenses as a result of the restructuring plan (see Note 8 - Intangible Assets, Net ). At each reporting date, the Company evaluates its restructuring expense accrual to determine if the liabilities reported are still appropriate. Any changes in the estimated costs of executing the approved restructuring plans are reflected in the Company's unaudited consolidated statement of operations. Table 2.2: Summary of Changes in Restructuring Expenses Accrual Severance and related benefit costs (1) (in thousands) Balance at December 31, 2023 $ 400 Expenses 1,437 Cash payments (490) Balance at September 30, 2024 $ 1,347 (1) Restructuring expenses accrual is included within "Other current liabilities" on the Company's unaudited consolidated balance sheets (see Note 9 - Other Balance Sheet Components for further details). Income Taxes The period for which tax years are open, 2021 to 2023, has not been extended beyond the applicable statute of limitations. During September 2024, the Company was notified by the Internal Revenue Service that it is examining the Company's 2021 federal income tax return. Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." This standard requires disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to our chief operating decision maker ("CODM") and the aggregate amount of other segment items included in each reported measure of segment profit or loss. The ASU also requires that a public entity disclose the title and position of the CODM within the Company and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. ASU 2023-07 will affect how we report segment information, starting with our Form 10-K for the year ended December 31, 2024, and our quarterly reports on Form 10-Q starting with our quarterly report for the quarter ended March 31, 2025. The amendments in this ASU should be applied retrospectively to all prior periods presented in the financial statements. We are evaluating these new segment disclosure requirements and the impact of their adoption on our unaudited consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosure," which requires, on an annual basis, greater disaggregation of information about a reporting entity's effective tax rate reconciliation and additional information for reconciling items that meet a quantitative threshold. The ASU also requires information on income taxes paid. This standard applies to all entities subject to income taxes and will be effective for annual periods beginning after December 15, 2024, with early adoption permitted. The ASU should be applied on a prospective basis, although retrospective application is permitted. We are currently assessing the impact of the adoption of this ASU on our unaudited consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, "Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Topic 220): Disaggregation of Income Statement Expenses." This standard requires additional disclosure of certain amounts included in the expense captions presented on the statement of operations, as well as disclosures about selling expenses. The ASU is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted for annual financial statements that have not yet been issued. We are in the process of assessing the impact the adoption of this ASU on our unaudited consolidated financial statement. In addition, from time to time, new accounting standards are issued by the Financial Accounting Standard Board or other standard-setting bodies and are adopted by the Company as of the specified accounting date. Unless otherwise discussed, the Company believes that issued standards not yet effective will not have a material effect on its financial statements.

REVENUE RECOGNITION

REVENUE RECOGNITION	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	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. 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. Revenue transferred to customers over time accounted for 78% and 81% of our revenue for the three and nine months ended September 30, 2024, respectively, and 89% of our revenue for the three and nine months ended September 30, 2023, respectively. 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. For performance obligations in which control does not continuously transfer to the customer, we recognize revenue at the point in time when each performance obligation is fully satisfied. This coincides with the point in time the customer obtains control of the product or service, which typically occurs upon customer acceptance or receipt of the product or service, given that we maintain control of the product or service until that point. Revenue transferred to customers at a point in time accounted for 22% and 19% of our revenue for the three and nine months ended September 30, 2024, respectively, and 11% of our revenue for the three and nine months ended September 30, 2023, respectively. 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 obligations 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. Our contracts may include various types of variable considerations and may include estimated amounts in the transaction price, based on all of the information available to us, 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 evaluate and include these estimated amounts of variable consideration in the transaction price and as performance on these contracts is complete, we adjust our revenue when deemed necessary. No revenue adjustments were recorded during the three and nine months ended September 30, 2024, and 2023. 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. No contract loss was recorded during the three months ended September 30, 2024. We recorded an immaterial contract loss during the nine months ended September 30, 2024. No contract losses were recorded during the three and nine months ended September 30, 2023. Disaggregated Revenues In addition to our segment reporting, as further discussed in Note 16 – Segment Information , we disaggregate our revenues by customer and contract types. 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 minimis; as such, the financial information by geographic location is not presented. Table 3.1: Revenue by Customer Type For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Amount % Amount % Amount % Amount % (dollars in thousands) Federal $ 20,607 87 % $ 32,955 91 % $ 72,046 88% $ 93,456 90% State, local, and commercial 3,176 13 % 3,231 9 % 9,854 12% 10,863 10% Total revenue $ 23,783 100 % $ 36,186 100 % $ 81,900 100 % $ 104,319 100 % Table 3.2: Revenue by Contract Type For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Amount % Amount % Amount % Amount % (dollars in thousands) Firm fixed-price $ 18,293 77 % $ 27,809 77 % $ 63,308 77% $ 80,116 77% Time-and-materials 3,045 13 % 3,504 10 % 9,204 11% 10,608 10% Cost plus fixed fee 2,445 10 % 4,873 13 % 9,388 12% 13,595 13% Total revenue $ 23,783 100 % $ 36,186 100 % $ 81,900 100% $ 104,319 100 % Table 3.3: Revenue Concentration Greater than 10% of Total Revenue For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 U.S. Department of Defense ("DoD") 46% 61% 53% 65% U.S. Department of Homeland Security ("DHS") 16% 6% 15% 3% Table 3.4: Contract Balances Balance Sheet Presentation September 30, 2024 December 31, 2023 (in thousands) Billed accounts receivable (1) Accounts receivable, net $ 7,690 $ 17,818 Unbilled accounts receivable Accounts receivable, net 3,857 8,022 Contract assets Accounts receivable, net 3,334 4,584 Contract liabilities Contract liabilities 6,779 6,728 (1) Net of allowance for credit losses. The 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. Revenue recognized for the three and nine months ended September 30, 2024, which was included in the contract liabilities balance at the beginning of each reporting period, was $1.2 million and $5.7 million, respectively. Revenue recognized for the three and nine months ended September 30, 2023, which was included in the contract liabilities balance at the beginning of each reporting period, was $1.2 million and $5.3 million, respectively. As of September 30, 2024, we had approximately $38.9 million of remaining performance obligations, which we also refer to as funded backlog. We expect to recognize approximately 87% of our remaining performance obligations over the next 12 months, and the balance thereafter.

ACCOUNTS RECEIVABLE, NET

ACCOUNTS RECEIVABLE, NET	9 Months Ended
	Sep. 30, 2024
Receivables [Abstract]
ACCOUNTS RECEIVABLE, NET	ACCOUNTS RECEIVABLE, NET Table 4: Details of Accounts Receivable, Net September 30, 2024 December 31, 2023 (in thousands) Billed accounts receivable $ 7,738 $ 18,101 Unbilled accounts receivable 3,857 8,022 Contract assets 3,334 4,584 Allowance for credit losses (1) (48) (283) Accounts receivable, net $ 14,881 $ 30,424 (1) Includes provision for credit losses, net of recoveries. 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 92% and 91% of our billed and unbilled accounts receivable as of September 30, 2024, and December 31, 2023, respectively, were directly with U.S. government customers. While we acknowledge the potential material and adverse risk of such a significant concentration of credit risk, our past experience collecting substantially all of such receivables provides 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 guarantees from our customers. We maintain allowances for potential losses.

INVENTORIES, NET

INVENTORIES, NET	9 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
INVENTORIES, NET	INVENTORIES, NET Table 5: Details of Inventories, Net September 30, 2024 December 31, 2023 (in thousands) Gross inventory $ 2,165 $ 2,179 Allowance for inventory obsolescence (759) (759) Inventories, net $ 1,406 $ 1,420

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	9 Months Ended
	Sep. 30, 2024
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	PROPERTY AND EQUIPMENT, NET Table 6.1: Details of Property and Equipment, Net September 30, 2024 December 31, 2023 Gross Carrying Amount Accumulated Depreciation and Amortization Net Carrying Value Gross Carrying Amount Accumulated Depreciation and Amortization Net Carrying Value (in thousands) Furniture and equipment $ 16,425 $ (13,551) $ 2,874 $ 16,213 $ (13,363) $ 2,850 Leasehold improvements 3,395 (2,697) 698 3,211 (2,604) 607 Total $ 19,820 $ (16,248) $ 3,572 $ 19,424 $ (15,967) $ 3,457 Table 6.2: Depreciation and Amortization Expense For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 (in thousands) Depreciation and amortization expense $ 329 $ 548 $ 1,223 $ 1,700

GOODWILL

GOODWILL	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	GOODWILL The goodwill balance was $17.9 million as of September 30, 2024, and December 31, 2023, of which $3.0 million is allocated to the Security Solutions segment and $14.9 million is allocated to the Secure Networks segment. Goodwill is subject to annual impairment tests, and, if triggering events are present in the interim before the annual tests, we will assess impairment. No impairment charges were recorded for the three and nine months ended September 30, 2024, and 2023.

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS, NET	INTANGIBLE ASSETS, NET Table 8.1: Details of Intangible Assets, Net September 30, 2024 December 31, 2023 Estimated Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value (in years) (in thousands) Acquired technology 8 $ 3,630 $ (1,437) $ 2,193 $ 3,630 $ (1,097) $ 2,533 Customer relationship 3 40 (40) — 40 (32) 8 Software development costs 2 - 5 26,316 (14,255) 12,061 35,312 (12,256) 23,056 Subtotal 29,986 (15,732) 14,254 38,982 (13,385) 25,597 In-process software development costs (1) 15,373 — 15,373 14,019 — 14,019 Total $ 45,359 $ (15,732) $ 29,627 $ 53,001 $ (13,385) $ 39,616 (1) In-process software development costs are costs for software that is not yet available for its intended use or general release to customers as of balance sheet date, thus not yet amortized. The Company evaluates its intangible assets for potential impairment whenever there is evidence that events or changes in circumstances indicate that the carrying value may not be recoverable. During the third quarter of 2024, there were selected capitalized software projects for which the Company decided to discontinue the development and/or sale of all or a part of certain solutions and certain projects which the Company ceased use before the end of its useful life. As a result of the Company's decision to abandon the associated software, the Company wrote-off $11.7 million of the previously capitalized software costs, of which $5.3 million was recorded as "Impairment loss on intangible assets" under cost of sales and $6.4 million was recorded as "Impairment loss on intangible assets" under operating expenses in the Company's unaudited statement of operations for the three and nine months ended September 30, 2024. An impairment loss of $0.3 million was recorded under operating expenses for the three and nine months ended September 30, 2023, with no similar charges under cost of sales. No impairment losses were recorded on other intangible assets during the three and nine months ended September 30, 2024, and 2023. Table 8.2: Amortization Expense For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 (in thousands) Amortization expense related to: Software development costs – cost of sales (1) $ 1,402 $ 1,767 $ 4,509 $ 1,767 Software development costs – research and development 588 (19) 2,286 843 Other intangible assets – general and administrative 115 117 348 350 Total $ 2,105 $ 1,865 $ 7,143 $ 2,960 (1) Amortization expense for software development costs related to assets to be sold, leased, or otherwise marketed is charged under cost of sales on the unaudited consolidated statements of operations.

OTHER BALANCE SHEET COMPONENTS

OTHER BALANCE SHEET COMPONENTS	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
OTHER BALANCE SHEET COMPONENTS	OTHER BALANCE SHEET COMPONENTS Table 9.1: Details of Other Assets September 30, 2024 December 31, 2023 (in thousands) Investment (1) $ 3,000 $ — Restricted cash 138 136 Other (2) 6,382 749 Other assets $ 9,520 $ 885 (1) In March 2024, the Company made a $3.0 million investment in a privately held company via a simple agreement for future equity. The Company elected to apply the fair value option on this investment. The Company believes the fair value option best reflects the economics of the underlying transaction. During the three and nine months ended September 30, 2024, there were no changes in the fair value. This is categorized as Level 3 as a result of the non-marketable observable inputs. (2) Includes long-term prepaid assets in the amount of $5.3 million as of September 30, 2024. Table 9.2: Details of Accounts Payable and Other Accrued Liabilities September 30, 2024 December 31, 2023 (in thousands) Accounts payable $ 2,796 $ 8,307 Accrued payables 3,493 5,443 Accounts payable and other accrued liabilities $ 6,289 $ 13,750 Table 9.3: Details of Other Current Liabilities September 30, 2024 December 31, 2023 (in thousands) Other accrued expenses $ 1,085 $ 1,427 Restructuring expenses accrual 1,347 400 Other 472 497 Other current liabilities $ 2,904 $ 2,324

DEBT AND OTHER OBLIGATIONS

DEBT AND OTHER OBLIGATIONS	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
DEBT AND OTHER OBLIGATIONS	DEBT AND OTHER OBLIGATIONS Revolving Credit Facility On December 30, 2022, we entered into a Credit Agreement (the "Credit Agreement"), by and among the Company, as borrower, Xacta Corporation, ubIQuity.com, inc., Teloworks, Inc., and Telos Identity Management Solutions, LLC, as guarantors, the lenders party thereto (the "Lenders"), and JPMorgan Chase Bank N.A., as administrative agent for the Lenders (in such capacity, the "Agent"). The Credit Agreement provides for a $30.0 million senior secured revolving credit facility with a maturity date of December 30, 2025, with the option of issuing letters of credit thereunder with a sub-limit of $5.0 million, and with an uncommitted expansion feature of up to $30.0 million of additional revolver capacity (the "Loan"). The Loan is subject to acceleration in the event of customary events of default. The Company has not drawn any amount under the Loan. Borrowings under the Credit Agreement will accrue interest, at our option, at one of three variable rates, plus a specified margin. We can elect to borrow at (i) the Alternative Base Rate, plus 0.9%; (ii) Adjusted Daily Simple Secured Overnight Financing Rate ("SOFR"), plus 1.9%; and (iii) Adjusted Term SOFR, plus 1.9%, as such capitalized terms are defined and calculated in the Credit Agreement. The Company may elect to convert borrowings from one type of borrowing to another type per the terms of the Credit Agreement. After the occurrence and during the continuance of any event of default, the interest rate may increase by an additional 2.0%. We are obligated to pay accrued interest (i) with respect to amounts accruing interest based on the Alternative Base Rate, each calendar quarter and on the maturity date, (ii) with respect to amounts accruing interest based on Adjusted Daily Simple SOFR, on each one-month anniversary of the borrowing and on the maturity date, and (iii) with respect to amounts accruing interest based on Adjusted Term SOFR, at the end of the period specified per the Credit Agreement and on the maturity date. Upon five, three, or one day's prior notice, as applicable, we may prepay any portion or the entire amount of the Loan. We also paid costs and customary fees, including a closing fee, commitment fees and letter of credit participation fee, if any, payable to the Agent and Lenders, as applicable, in connection with the Loan. The Loan under the Credit Agreement is collateralized by substantially all of the Company's assets, including the Company's pledge of its domestic and material foreign subsidiary equity interests. The Loan has various covenants that may, among other things, affect our ability to create, incur, assume or suffer any indebtedness, merge into or consolidate with another entity, acquire entity interests, sell or transfer certain assets, enter into certain arrangements (such as sale and leaseback and swap agreements) or restrictive agreements, pay dividends and make certain restricted payments, and amend material documents related to any subordinated indebtedness and corporate agreements. The Credit Agreement also requires certain financial covenants to maintain a Senior Leverage Ratio on the last day of any fiscal quarter, no greater than 3-to-1. We were in compliance with all covenants as of September 30, 2024. The occurrence of an event of default under the Credit Agreement could result in the Loan and other obligations becoming immediately due and payable and allow the Lenders to exercise all rights and remedies available to them under the Credit Agreement. On April 12, 2023, the Credit Agreement was amended to exclude from collateral the (i) amount collectible from a third party related to an Accounts Receivable Purchase Agreement and (ii) receivables generated by the Company from the sale of goods supplied to this third party in an amount not to exceed $25.0 million. Other Financing Obligations We entered into a Master Purchase Agreement ("MPA") with a third-party buyer ("Buyer") for $9.1 million relating to software licenses under a specific delivery order ("DO") with our customer, resulting in proceeds from other financing obligations of $9.1 million in November 2022. Under the MPA, we sold, assigned and transferred all of our rights, title and interest in (i) the DO payments from the customer and (ii) the underlying licenses. The DO covers a base period with an option for the customer to exercise three (3) additional 12-month periods through January 2026. The DO payments assigned to the Buyer are billable to the customer at the beginning of the base period and for each option year exercised. The underlying licenses were acquired for resale. On February 9, 2023, the customer notified us that it would not exercise the first option period under the DO. Concurrently, the Company transferred all the rights, title and interest in the underlying licenses in exchange for the extinguishment of the outstanding financing obligations. The Company evaluated the transfer of the underlying licenses as consideration paid for the outstanding financing obligations under ASC 470-10, Debt , and the provisions of the MPA, and concluded that the transaction resulted in an extinguishment of debt. The Company recorded the difference between the carrying value of the Company's debt instrument and the underlying licenses as a gain on early extinguishment of other financing obligations. No gain was reported for the three months ended September 30, 2023. For the nine months ended September 30, 2023, the Company reported a gain of $1.4 million, which was recorded as "Other income" in the unaudited consolidated statements of operations. The MPA provides that, if the customer terminates the DO for non-renewal and the Buyer reasonably concludes that the customer's actions constitute grounds for filing a claim with the customer's contracting officer, the Buyer and Telos will cooperate in preparing such a claim, which would be filed in Telos' name. During the third quarter of 2024, the Buyer, through Telos, filed a claim against the customer.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION The Company grants stock-based compensation awards under the Amended and Restated 2016 Omnibus Long-Term Incentive Plan (the "2016 LTIP"). We have granted stock options, restricted stock units with time-based vesting ("RSUs") and restricted stock units with performance-based vesting ("PSUs"). 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, which has the discretion to establish the terms, conditions and criteria of the various awards. The RSUs granted to eligible employees generally vest in installments over a period of up to three years. PSUs will vest upon the achievement of a defined performance target or market conditions for the Company's common stock or certain operational milestones over a prescribed period. On May 21, 2024, the Company authorized an additional 8,500,000 shares to be available under the 2016 LTIP, increasing the total number of shares available for issuance under the 2016 LTIP to 21,959,913 shares. On May 16, 2024, the Company granted PSUs that could be settled in up to 1,335,281 shares of its common stock to certain senior executives and employees that will vest upon achieving certain operational milestones prior to January 1, 2027. On May 28, 2024, the Company granted PSUs to certain senior executives and employees that could settle in up to 2,499,945 shares of its common stock. These PSUs may vest only if the Company achieves certain revenue and Free Cash Flow targets for fiscal year 2025. The Company also granted PSUs containing market conditions to certain executives that could settle in up to 6,875,000 shares of its common stock. These PSUs with market conditions may vest, in whole or in part, only if the Company's closing common stock price remains at or above certain specified stock prices for 50 consecutive calendar days prior to January 1, 2027. The Company estimates the fair value for each tranche of the stock-based compensation awards subject to market conditions on the date of grant using a Monte Carlo simulation valuation model. 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 PSUs based on a large number of possible stock price path scenarios. 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 of 2.59 years, an expected volatility of 83.9%, and a risk-free rate of 4.7%. The fair value for these market condition PSUs at the grant date ranges between $2.62 - $3.75, and the derived service periods ranges between 0.63 - 1.31 years. The Company recognizes compensation expense for the performance-based awards with market conditions based on the grant-date fair value calculated using the Monte Carlo model, as described above. Stock-based compensation expense for the performance-based awards is estimated at each reporting date using management's expectation of the probable achievement of the specified performance targets and recognized over the requisite service period for each tranche on a graded-vesting basis. Stock-based compensation expense recognized for restricted stock units and stock options granted to employees and non-employees is included in the unaudited consolidated statements of operations, net of adjustments. There were no income tax benefits recognized on the share-based compensation expense for the three and nine months ended September 30, 2024, and 2023. In the second quarter of 2024, the performance targets for outstanding PSUs granted prior to 2024 were not probable of being achieved. Therefore, the Company recorded a cumulative catch-up adjustment for the change in its probability assessment, resulting in a $1.2 million decrease in stock-based compensation expense for the nine months ended September 30, 2024. The performance period for this PSU ended during the third quarter of 2024. Table 11.1: Details of Stock Compensation Expense by Category For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 (in thousands) Cost of sales – services $ 115 $ 73 $ 600 $ 624 Research and development 188 328 (261) 1,945 Selling, general and administrative 8,511 4,817 13,678 19,893 Total $ 8,814 $ 5,218 $ 14,017 $ 22,462 Restricted Stock Table 11.2: Restricted Stock Unit Activity Service-Based Performance-Based Total Shares Weighted-Average Grant Date Fair Value Unvested outstanding units as of December 31, 2023 2,132,613 43,800 2,176,413 $ 5.07 Granted 1,780,180 10,710,226 12,490,406 3.47 Vested (1,806,608) — (1,806,608) 4.41 Forfeited, cancelled, or expired (65,506) (43,800) (109,306) 13.82 Unvested outstanding units as of September 30, 2024 2,040,679 10,710,226 12,750,905 $ 3.53 As of September 30, 2024, the intrinsic value of the RSUs and PSUs outstanding, exercisable, and vested or expected to vest was $45.8 million. There was approximately $24.7 million of total compensation costs related to stock-based awards not yet recognized as of September 30, 2024, which is expected to be recognized on a straight-line basis over a weighted-average remaining vesting period of 0.9 years. Stock Options Table 11.3: Stock Option Activity Stock Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding option balance as of December 31, 2023 400,000 $ 1.80 9.4 $ 740,000 Granted — — Exercised (83,000) 1.80 Forfeited, cancelled, or expired — — Outstanding option balance as of September 30, 2024 317,000 $ 1.80 8.6 $ 567,430 Exercisable stock option as of September 30, 2024 317,000 $ 1.80 8.6 $ 567,430 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock option awards and the quoted closing price of the Company's common stock as of September 30, 2024. The fair value of the stock options, including the stock options granted to directors, is expensed on a straight-line basis over the vesting period of one year, as the annual stockholders meeting is expected to occur at the same approximate time each year. As of September 30, 2024, there were no unrecognized compensation costs related to non-vested stock options.

SHARE REPURCHASES

SHARE REPURCHASES	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
SHARE REPURCHASES	SHARE REPURCHASES On May 24, 2022, the Company announced that the Board of Directors approved a share repurchase program ("SRP") authorizing the Company to repurchase up to $50.0 million of its common stock. Pursuant to this authorization, the Company may repurchase shares of its common stock on a discretionary basis from time to time through open market purchases. The repurchase program has no expiration date and may be modified, suspended, or terminated at any time. There were no share repurchases during the three and nine months ended September 30, 2024, and 2023. As of September 30, 2024, there was approximately $38.7 million of the authorization remaining for future common stock repurchases under the SRP.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE LOSS	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE LOSS	ACCUMULATED OTHER COMPREHENSIVE LOSS Table 13: Details of Changes in the Components of Accumulated Other Comprehensive Loss Foreign currency translation adjustment Pension liability adjustment Total (in thousands) Balance as of December 31, 2023 $ (167) $ 107 $ (60) Other comprehensive loss (34) (30) (64) Balance as of September 30, 2024 $ (201) $ 77 $ (124)

LOSS PER SHARE

LOSS PER SHARE	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
LOSS PER SHARE	LOSS PER SHARE For the period of net loss, potentially dilutive securities are not included in the calculation of diluted net earnings (loss) per share, because to do so would be anti-dilutive. Table 14: Potentially Dilutive Securities For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 (in thousands) Weighted-average number of shares – unvested restricted stock units and stock options 524 667 869 522 For the three and nine months ended September 30, 2024, and 2023, the outstanding PSUs aggregating to 10,710,226 and 265,608 shares, respectively, have been excluded from the calculation of potentially dilutive securities above because the issuance of shares is contingent upon certain conditions which were not satisfied by the end of the current quarter.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2024
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS Emmett J. Wood, the brother of our Chairman and CEO, had been an employee of the Company since 1996. In January 2023, he tendered his resignation as an employee effective February 7, 2023. The amount earned by him as total compensation in 2023, including stock award and other benefits, was $249,000. One of the Company’s directors also served as a consultant to the Company under a consultancy agreement that expired on December 31, 2023. The Company, at its election, paid the director a fixed amount, in the form of RSUs, for his services from January 1 through June 30, 2023. On January 3, 2023, the Company granted the director 16,859 RSUs, one-half of which vested on March 3, 2023, and the other half vested on May 18, 2023. From July 1 through December 31, 2023, the director was paid a fixed monthly retainer fee, plus additional fees and contingent bonus payments upon achievement of certain contract goals. Cash payments made for his consulting services were $32,000 for the three and nine months ended September 30, 2023.

SEGMENT INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION We operate our business in two reportable and operating segments: Security Solutions and Secure Networks. These segments enable the alignment of our strategies and objectives and provide a framework for the timely and rational allocation of resources within the business lines. Our Security Solutions segment is primarily focused on cybersecurity, cloud and identity solutions, and secure messaging through Xacta ® , Telos Automated Message Handling System ("Telos AMHS™") and Telos ID offerings. We recognize revenue on contracts from providing various system platforms in the cloud, on-premises, and in hybrid cloud environments, as well as 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 and products. Fluctuation in revenue from period to period is the result of the volume of software sales, and the progress or completion of cloud or cybersecurity solutions during the period. The majority of the operating costs relate 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. Our 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 primarily reflect increases and decreases in activity levels on individual contracts. Table 16: Results of Operations by Business Segment For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 (in thousands) Revenues Security Solutions $ 18,332 $ 19,795 $ 54,839 $ 56,764 Secure Networks 5,451 16,391 27,061 47,555 Total revenue 23,783 36,186 81,900 104,319 Cost of sales (excluding impairment loss, depreciation and amortization) Security Solutions 9,201 8,498 26,505 25,304 Secure Networks 4,616 12,730 21,444 37,870 Total cost of sales (excluding impairment loss, depreciation and amortization) 13,817 21,228 47,949 63,174 Impairment loss on intangible assets Security Solutions 5,333 — 5,333 — Secure Networks — — — — Total impairment loss on intangible assets 5,333 — 5,333 — Depreciation and amortization Security Solutions 1,488 1,943 4,800 2,281 Secure Networks 2 2 7 10 Total depreciation and amortization 1,490 1,945 4,807 2,291 Gross profit Security Solutions 2,310 9,354 18,201 29,179 Secure Networks 833 3,659 5,610 9,675 Total gross profit 3,143 13,013 23,811 38,854 Operating expenses (1) 32,007 22,706 69,757 70,984 Operating loss (28,864) (9,693) (45,946) (32,130) Other income 983 1,222 3,299 5,367 Interest expense (157) (178) (492) (611) Loss before income taxes (28,038) (8,649) (43,139) (27,374) Provision for income taxes (17) (23) (51) (68) Net loss $ (28,055) $ (8,672) $ (43,190) $ (27,442) (1) This includes an impairment loss of $6.4 million for the three and nine months ended September 30, 2024, and $0.3 million for the three and nine months ended September 30, 2023. 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. 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.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company may be a party to litigation or claims 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, management believes that the outcome of such known matters will not have a material adverse effect on the Company's business or its unaudited consolidated financial statements as of September 30, 2024. 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.

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	9 Months Ended
	Sep. 30, 2024
Supplemental Cash Flow Elements [Abstract]
SUPPLEMENTAL CASH FLOW INFORMATION	SUPPLEMENTAL CASH FLOW INFORMATION Table 18.1: Details of Cash, Cash Equivalents, and Restricted Cash September 30, 2024 December 31, 2023 (in thousands) Cash and cash equivalents $ 69,762 $ 99,260 Restricted cash (1) 138 136 Cash, cash equivalents, and restricted cash $ 69,900 $ 99,396 (1) Restricted cash consists of a commercial money market account held as a deposit on the Ashburn lease and is included within "Other assets" on the unaudited consolidated balance sheets. Table 18.2: Supplemental Cash Flow Information For the Nine Months Ended September 30, 2024 September 30, 2023 (in thousands) Cash paid during the period for: Interest $ 427 $ 548 Income taxes 100 147 Non-cash investing and financing activities: Operating lease ROU assets obtained in exchange for operating lease liabilities $ 626 $ 67 Capital expenditure activity in accounts payable and other accrued liabilities 1,041 173 Issuance of common stock for 401K match 1,619 1,943 Intangible assets transferred to extinguish other financing obligations — 7,089

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net loss	$ (28,055)	$ (8,672)	$ (43,190)	$ (27,442)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation and Principle of Consolidation	Basis of Presentation and Principle of Consolidation The accompanying unaudited consolidated financial statements include the accounts of Telos and its subsidiaries (see Note 1 – Organization ), all of whose issued and outstanding share capital is wholly owned directly and indirectly by Telos Corporation. All intercompany transactions have been eliminated in consolidation.
Basis of Comparison	Basis of Comparison Certain prior-period amounts have been reclassified to conform to the current period presentation. Starting in the first quarter of 2024, we reclassified sales and marketing expenses and general and administrative expenses to be presented together as selling, general and administrative ("SG&A") expenses on the consolidated statements of operations. In the third quarter of 2024, we started presenting impairment losses as separate line items from research and development ("R&D") expenses on the consolidated statements of operations. The reclassifications had no net impact on gross profit, total operating expenses or net loss in the unaudited consolidated statements of operations.
Use of Estimates	Use of Estimates Preparing unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities, and disclosure of contingent assets and liabilities. The Company regularly assesses these estimates; however, actual results could differ from those estimates. We base our estimates on historical experience, currently available information, and various other assumptions that we believe are reasonable under the circumstances. Management evaluates these estimates and assumptions on an ongoing basis, including those relating to revenue recognition on cost estimation on certain contracts, allowance for credit losses, inventory obsolescence, valuation allowance for deferred tax assets, income taxes, certain assumptions related to share-based compensation, valuation of intangible assets and goodwill, restructuring expenses accruals, and contingencies. Actual results could differ from those estimates. The impact of changes in estimates is recorded in the period in which they become known.
Selling, General and Administrative Expenses	Selling, General and Administrative Expenses Selling, general and administrative expenses include general and administrative expenses, as well as direct and indirect sales and marketing expenses. These costs consist primarily of compensation and benefits (including incentive-based compensation), advertising, facilities, and certain types of depreciation and amortization.
Restructuring Expenses	Restructuring Expenses From time to time, the Company initiates restructuring activities to execute management's strategy and optimize its cost structure. Restructuring activities may include streamlining its workforce or realignment of resources to support its business strategies and enhance operational efficiency. 2022 Restructuring Plan As previously disclosed, in the fourth quarter of 2022, the Company committed to a restructuring plan to streamline its workforce and spending to better align its cost structure with its volume of business ("2022 restructuring"). The 2022 restructuring plan reduced the Company's workforce, with a majority of the affected employees separating from the business in early 2023. In connection with this restructuring plan, we incurred restructuring-related costs, including employee severance and related benefit costs. Employee severance and related benefit costs include cash payments, outplacement services and continuing health insurance coverage. Severance costs pursuant to ongoing-benefit arrangements are recognized when probable and reasonably estimated. Other related costs include external consulting and advisory fees related to implementing the restructuring plan. These costs are recognized at fair value in the period in which the costs are incurred. The Company incurred a cumulative amount of $3.9 million of restructuring expenses, which is the total expected costs for this restructuring plan. The actions under this restructuring plan were substantially completed in fiscal year 2023 and were fully paid in the third quarter of 2024. 2024 Restructuring Plan Beginning in the third quarter of 2024, the Company undertook another restructuring action in an effort to optimize its strategic priorities and cost structure ("2024 restructuring"). As part of the 2024 restructuring plan, the Company decided to discontinue the development and/or sale of selected solutions or parts of solutions, which resulted in the impairment of capitalized software assets and a reduction in workforce. The restructuring charges under the 2024 restructuring plan include severance and related benefit costs. The Company accrues severance and related benefit costs under the 2024 restructuring plan when it is probable that a liability exists and the amount is reasonably estimated. As of September 30, 2024, the cumulative amount of incurred severance and benefit costs related to the 2024 restructuring plan was $1.4 million. The 2024 restructuring actions are expected to be completed and fully paid during the remainder of fiscal year 2024. In addition, as a result of the Company's decision to abandon the development or sale of selected solutions in the third quarter of 2024, the Company wrote-off $6.4 million of its previously capitalized software assets. This was reported as an impairment loss on intangible assets under operating expenses on the unaudited consolidated statement of operations. Table 2.1: Restructuring Expenses and Impairment Loss Statements of Operations For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 (in thousands) 2022 Restructuring Plan: Severance and related benefit costs SG&A $ — $ — $ (10) $ (103) Other related costs SG&A — — — 1,300 2024 Restructuring Plan: Severance and related benefit costs Cost of sales 393 — 393 — Severance and related benefit costs R&D, SG&A 1,054 — 1,054 — Total restructuring expenses 1,447 — 1,437 1,197 Impairment of intangible assets (1) Impairment loss on intangible assets 6,373 — 6,373 — Total restructuring expenses and impairment loss $ 7,820 $ — $ 7,810 $ 1,197 (1) The recoverability evaluation of intangible assets resulted in an $11.7 million impairment loss, of which $5.3 million was recorded under cost of sales for the discontinued parts of certain solutions, and $6.4 million was recorded under operating expenses as a result of the restructuring plan (see Note 8 - Intangible Assets, Net ). At each reporting date, the Company evaluates its restructuring expense accrual to determine if the liabilities reported are still appropriate. Any changes in the estimated costs of executing the approved restructuring plans are reflected in the Company's unaudited consolidated statement of operations. Table 2.2: Summary of Changes in Restructuring Expenses Accrual Severance and related benefit costs (1) (in thousands) Balance at December 31, 2023 $ 400 Expenses 1,437 Cash payments (490) Balance at September 30, 2024 $ 1,347 (1) Restructuring expenses accrual is included within "Other current liabilities" on the Company's unaudited consolidated balance sheets (see Note 9 - Other Balance Sheet Components for further details).
Income Taxes	Income Taxes
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." This standard requires disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to our chief operating decision maker ("CODM") and the aggregate amount of other segment items included in each reported measure of segment profit or loss. The ASU also requires that a public entity disclose the title and position of the CODM within the Company and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. ASU 2023-07 will affect how we report segment information, starting with our Form 10-K for the year ended December 31, 2024, and our quarterly reports on Form 10-Q starting with our quarterly report for the quarter ended March 31, 2025. The amendments in this ASU should be applied retrospectively to all prior periods presented in the financial statements. We are evaluating these new segment disclosure requirements and the impact of their adoption on our unaudited consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosure," which requires, on an annual basis, greater disaggregation of information about a reporting entity's effective tax rate reconciliation and additional information for reconciling items that meet a quantitative threshold. The ASU also requires information on income taxes paid. This standard applies to all entities subject to income taxes and will be effective for annual periods beginning after December 15, 2024, with early adoption permitted. The ASU should be applied on a prospective basis, although retrospective application is permitted. We are currently assessing the impact of the adoption of this ASU on our unaudited consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, "Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Topic 220): Disaggregation of Income Statement Expenses." This standard requires additional disclosure of certain amounts included in the expense captions presented on the statement of operations, as well as disclosures about selling expenses. The ASU is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted for annual financial statements that have not yet been issued. We are in the process of assessing the impact the adoption of this ASU on our unaudited consolidated financial statement. In addition, from time to time, new accounting standards are issued by the Financial Accounting Standard Board or other standard-setting bodies and are adopted by the Company as of the specified accounting date. Unless otherwise discussed, the Company believes that issued standards not yet effective will not have a material effect on its financial statements.
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. 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. Revenue transferred to customers over time accounted for 78% and 81% of our revenue for the three and nine months ended September 30, 2024, respectively, and 89% of our revenue for the three and nine months ended September 30, 2023, respectively. 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. For performance obligations in which control does not continuously transfer to the customer, we recognize revenue at the point in time when each performance obligation is fully satisfied. This coincides with the point in time the customer obtains control of the product or service, which typically occurs upon customer acceptance or receipt of the product or service, given that we maintain control of the product or service until that point. Revenue transferred to customers at a point in time accounted for 22% and 19% of our revenue for the three and nine months ended September 30, 2024, respectively, and 11% of our revenue for the three and nine months ended September 30, 2023, respectively. 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 obligations 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. Our contracts may include various types of variable considerations and may include estimated amounts in the transaction price, based on all of the information available to us, 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 evaluate and include these estimated amounts of variable consideration in the transaction price and as performance on these contracts is complete, we adjust our revenue when deemed necessary. No revenue adjustments were recorded during the three and nine months ended September 30, 2024, and 2023. 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. No contract loss was recorded during the three months ended September 30, 2024. We recorded an immaterial contract loss during the nine months ended September 30, 2024. No contract losses were recorded during the three and nine months ended September 30, 2023.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Schedule of Changes in Restructuring Expenses Accrual	Table 2.1: Restructuring Expenses and Impairment Loss Statements of Operations For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 (in thousands) 2022 Restructuring Plan: Severance and related benefit costs SG&A $ — $ — $ (10) $ (103) Other related costs SG&A — — — 1,300 2024 Restructuring Plan: Severance and related benefit costs Cost of sales 393 — 393 — Severance and related benefit costs R&D, SG&A 1,054 — 1,054 — Total restructuring expenses 1,447 — 1,437 1,197 Impairment of intangible assets (1) Impairment loss on intangible assets 6,373 — 6,373 — Total restructuring expenses and impairment loss $ 7,820 $ — $ 7,810 $ 1,197 (1) The recoverability evaluation of intangible assets resulted in an $11.7 million impairment loss, of which $5.3 million was recorded under cost of sales for the discontinued parts of certain solutions, and $6.4 million was recorded under operating expenses as a result of the restructuring plan (see Note 8 - Intangible Assets, Net ). At each reporting date, the Company evaluates its restructuring expense accrual to determine if the liabilities reported are still appropriate. Any changes in the estimated costs of executing the approved restructuring plans are reflected in the Company's unaudited consolidated statement of operations. Table 2.2: Summary of Changes in Restructuring Expenses Accrual Severance and related benefit costs (1) (in thousands) Balance at December 31, 2023 $ 400 Expenses 1,437 Cash payments (490) Balance at September 30, 2024 $ 1,347 (1) Restructuring expenses accrual is included within "Other current liabilities" on the Company's unaudited consolidated balance sheets (see Note 9 - Other Balance Sheet Components for further details).

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Revenue by Customer Type	Table 3.1: Revenue by Customer Type For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Amount % Amount % Amount % Amount % (dollars in thousands) Federal $ 20,607 87 % $ 32,955 91 % $ 72,046 88% $ 93,456 90% State, local, and commercial 3,176 13 % 3,231 9 % 9,854 12% 10,863 10% Total revenue $ 23,783 100 % $ 36,186 100 % $ 81,900 100 % $ 104,319 100 % Table 3.2: Revenue by Contract Type For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Amount % Amount % Amount % Amount % (dollars in thousands) Firm fixed-price $ 18,293 77 % $ 27,809 77 % $ 63,308 77% $ 80,116 77% Time-and-materials 3,045 13 % 3,504 10 % 9,204 11% 10,608 10% Cost plus fixed fee 2,445 10 % 4,873 13 % 9,388 12% 13,595 13% Total revenue $ 23,783 100 % $ 36,186 100 % $ 81,900 100% $ 104,319 100 %
Schedules of Concentration of Risk, by Risk Factor	Table 3.3: Revenue Concentration Greater than 10% of Total Revenue For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 U.S. Department of Defense ("DoD") 46% 61% 53% 65% U.S. Department of Homeland Security ("DHS") 16% 6% 15% 3%
Schedule of Contract Balances	Table 3.4: Contract Balances Balance Sheet Presentation September 30, 2024 December 31, 2023 (in thousands) Billed accounts receivable (1) Accounts receivable, net $ 7,690 $ 17,818 Unbilled accounts receivable Accounts receivable, net 3,857 8,022 Contract assets Accounts receivable, net 3,334 4,584 Contract liabilities Contract liabilities 6,779 6,728 (1) Net of allowance for credit losses.

ACCOUNTS RECEIVABLE, NET (Table

ACCOUNTS RECEIVABLE, NET (Tables)	9 Months Ended
	Sep. 30, 2024
Receivables [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable	Table 4: Details of Accounts Receivable, Net September 30, 2024 December 31, 2023 (in thousands) Billed accounts receivable $ 7,738 $ 18,101 Unbilled accounts receivable 3,857 8,022 Contract assets 3,334 4,584 Allowance for credit losses (1) (48) (283) Accounts receivable, net $ 14,881 $ 30,424 (1) Includes provision for credit losses, net of recoveries.

INVENTORIES, NET (Tables)

INVENTORIES, NET (Tables)	9 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
Schedule of Inventories, Net	Table 5: Details of Inventories, Net September 30, 2024 December 31, 2023 (in thousands) Gross inventory $ 2,165 $ 2,179 Allowance for inventory obsolescence (759) (759) Inventories, net $ 1,406 $ 1,420

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	9 Months Ended
	Sep. 30, 2024
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, Net	Table 6.1: Details of Property and Equipment, Net September 30, 2024 December 31, 2023 Gross Carrying Amount Accumulated Depreciation and Amortization Net Carrying Value Gross Carrying Amount Accumulated Depreciation and Amortization Net Carrying Value (in thousands) Furniture and equipment $ 16,425 $ (13,551) $ 2,874 $ 16,213 $ (13,363) $ 2,850 Leasehold improvements 3,395 (2,697) 698 3,211 (2,604) 607 Total $ 19,820 $ (16,248) $ 3,572 $ 19,424 $ (15,967) $ 3,457 Table 6.2: Depreciation and Amortization Expense For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 (in thousands) Depreciation and amortization expense $ 329 $ 548 $ 1,223 $ 1,700

INTANGIBLE ASSETS, NET (Tables)

INTANGIBLE ASSETS, NET (Tables)	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets, Net	Table 8.1: Details of Intangible Assets, Net September 30, 2024 December 31, 2023 Estimated Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value (in years) (in thousands) Acquired technology 8 $ 3,630 $ (1,437) $ 2,193 $ 3,630 $ (1,097) $ 2,533 Customer relationship 3 40 (40) — 40 (32) 8 Software development costs 2 - 5 26,316 (14,255) 12,061 35,312 (12,256) 23,056 Subtotal 29,986 (15,732) 14,254 38,982 (13,385) 25,597 In-process software development costs (1) 15,373 — 15,373 14,019 — 14,019 Total $ 45,359 $ (15,732) $ 29,627 $ 53,001 $ (13,385) $ 39,616 (1) In-process software development costs are costs for software that is not yet available for its intended use or general release to customers as of balance sheet date, thus not yet amortized.
Schedule of Indefinite-Lived Intangible Assets	Table 8.1: Details of Intangible Assets, Net September 30, 2024 December 31, 2023 Estimated Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value (in years) (in thousands) Acquired technology 8 $ 3,630 $ (1,437) $ 2,193 $ 3,630 $ (1,097) $ 2,533 Customer relationship 3 40 (40) — 40 (32) 8 Software development costs 2 - 5 26,316 (14,255) 12,061 35,312 (12,256) 23,056 Subtotal 29,986 (15,732) 14,254 38,982 (13,385) 25,597 In-process software development costs (1) 15,373 — 15,373 14,019 — 14,019 Total $ 45,359 $ (15,732) $ 29,627 $ 53,001 $ (13,385) $ 39,616 (1) In-process software development costs are costs for software that is not yet available for its intended use or general release to customers as of balance sheet date, thus not yet amortized.
Schedule of Amortization Expense	Table 8.2: Amortization Expense For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 (in thousands) Amortization expense related to: Software development costs – cost of sales (1) $ 1,402 $ 1,767 $ 4,509 $ 1,767 Software development costs – research and development 588 (19) 2,286 843 Other intangible assets – general and administrative 115 117 348 350 Total $ 2,105 $ 1,865 $ 7,143 $ 2,960 (1) Amortization expense for software development costs related to assets to be sold, leased, or otherwise marketed is charged under cost of sales on the unaudited consolidated statements of operations.

OTHER BALANCE SHEET COMPONENTS

OTHER BALANCE SHEET COMPONENTS (Tables)	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Other Assets	Table 9.1: Details of Other Assets September 30, 2024 December 31, 2023 (in thousands) Investment (1) $ 3,000 $ — Restricted cash 138 136 Other (2) 6,382 749 Other assets $ 9,520 $ 885 (1) In March 2024, the Company made a $3.0 million investment in a privately held company via a simple agreement for future equity. The Company elected to apply the fair value option on this investment. The Company believes the fair value option best reflects the economics of the underlying transaction. During the three and nine months ended September 30, 2024, there were no changes in the fair value. This is categorized as Level 3 as a result of the non-marketable observable inputs. (2) Includes long-term prepaid assets in the amount of $5.3 million as of September 30, 2024.
Schedule of Accounts Payable and Other Accrued Liabilities	Table 9.2: Details of Accounts Payable and Other Accrued Liabilities September 30, 2024 December 31, 2023 (in thousands) Accounts payable $ 2,796 $ 8,307 Accrued payables 3,493 5,443 Accounts payable and other accrued liabilities $ 6,289 $ 13,750
Schedule of Other Current Liabilities	Table 9.3: Details of Other Current Liabilities September 30, 2024 December 31, 2023 (in thousands) Other accrued expenses $ 1,085 $ 1,427 Restructuring expenses accrual 1,347 400 Other 472 497 Other current liabilities $ 2,904 $ 2,324

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Stock Compensation Expense	Table 11.1: Details of Stock Compensation Expense by Category For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 (in thousands) Cost of sales – services $ 115 $ 73 $ 600 $ 624 Research and development 188 328 (261) 1,945 Selling, general and administrative 8,511 4,817 13,678 19,893 Total $ 8,814 $ 5,218 $ 14,017 $ 22,462
Schedule of Restricted Stock Unit Activity	Table 11.2: Restricted Stock Unit Activity Service-Based Performance-Based Total Shares Weighted-Average Grant Date Fair Value Unvested outstanding units as of December 31, 2023 2,132,613 43,800 2,176,413 $ 5.07 Granted 1,780,180 10,710,226 12,490,406 3.47 Vested (1,806,608) — (1,806,608) 4.41 Forfeited, cancelled, or expired (65,506) (43,800) (109,306) 13.82 Unvested outstanding units as of September 30, 2024 2,040,679 10,710,226 12,750,905 $ 3.53
Schedule of Stock Option Activity	Table 11.3: Stock Option Activity Stock Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding option balance as of December 31, 2023 400,000 $ 1.80 9.4 $ 740,000 Granted — — Exercised (83,000) 1.80 Forfeited, cancelled, or expired — — Outstanding option balance as of September 30, 2024 317,000 $ 1.80 8.6 $ 567,430 Exercisable stock option as of September 30, 2024 317,000 $ 1.80 8.6 $ 567,430

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Loss	Table 13: Details of Changes in the Components of Accumulated Other Comprehensive Loss Foreign currency translation adjustment Pension liability adjustment Total (in thousands) Balance as of December 31, 2023 $ (167) $ 107 $ (60) Other comprehensive loss (34) (30) (64) Balance as of September 30, 2024 $ (201) $ 77 $ (124)

LOSS PER SHARE (Tables)

LOSS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Schedule of Potentially Dilutive Securities	Table 14: Potentially Dilutive Securities For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 (in thousands) Weighted-average number of shares – unvested restricted stock units and stock options 524 667 869 522

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Table 16: Results of Operations by Business Segment For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 (in thousands) Revenues Security Solutions $ 18,332 $ 19,795 $ 54,839 $ 56,764 Secure Networks 5,451 16,391 27,061 47,555 Total revenue 23,783 36,186 81,900 104,319 Cost of sales (excluding impairment loss, depreciation and amortization) Security Solutions 9,201 8,498 26,505 25,304 Secure Networks 4,616 12,730 21,444 37,870 Total cost of sales (excluding impairment loss, depreciation and amortization) 13,817 21,228 47,949 63,174 Impairment loss on intangible assets Security Solutions 5,333 — 5,333 — Secure Networks — — — — Total impairment loss on intangible assets 5,333 — 5,333 — Depreciation and amortization Security Solutions 1,488 1,943 4,800 2,281 Secure Networks 2 2 7 10 Total depreciation and amortization 1,490 1,945 4,807 2,291 Gross profit Security Solutions 2,310 9,354 18,201 29,179 Secure Networks 833 3,659 5,610 9,675 Total gross profit 3,143 13,013 23,811 38,854 Operating expenses (1) 32,007 22,706 69,757 70,984 Operating loss (28,864) (9,693) (45,946) (32,130) Other income 983 1,222 3,299 5,367 Interest expense (157) (178) (492) (611) Loss before income taxes (28,038) (8,649) (43,139) (27,374) Provision for income taxes (17) (23) (51) (68) Net loss $ (28,055) $ (8,672) $ (43,190) $ (27,442) (1) This includes an impairment loss of $6.4 million for the three and nine months ended September 30, 2024, and $0.3 million for the three and nine months ended September 30, 2023.

SUPPLEMENTAL CASH FLOW INFORM_2

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2024
Supplemental Cash Flow Elements [Abstract]
Schedule of Cash and Cash Equivalents	Table 18.1: Details of Cash, Cash Equivalents, and Restricted Cash September 30, 2024 December 31, 2023 (in thousands) Cash and cash equivalents $ 69,762 $ 99,260 Restricted cash (1) 138 136 Cash, cash equivalents, and restricted cash $ 69,900 $ 99,396 (1) Restricted cash consists of a commercial money market account held as a deposit on the Ashburn lease and is included within "Other assets" on the unaudited consolidated balance sheets.
Schedule of Restrictions on Cash and Cash Equivalents	Table 18.1: Details of Cash, Cash Equivalents, and Restricted Cash September 30, 2024 December 31, 2023 (in thousands) Cash and cash equivalents $ 69,762 $ 99,260 Restricted cash (1) 138 136 Cash, cash equivalents, and restricted cash $ 69,900 $ 99,396 (1) Restricted cash consists of a commercial money market account held as a deposit on the Ashburn lease and is included within "Other assets" on the unaudited consolidated balance sheets.
Schedule of Supplemental Cash Flow Information	Table 18.2: Supplemental Cash Flow Information For the Nine Months Ended September 30, 2024 September 30, 2023 (in thousands) Cash paid during the period for: Interest $ 427 $ 548 Income taxes 100 147 Non-cash investing and financing activities: Operating lease ROU assets obtained in exchange for operating lease liabilities $ 626 $ 67 Capital expenditure activity in accounts payable and other accrued liabilities 1,041 173 Issuance of common stock for 401K match 1,619 1,943 Intangible assets transferred to extinguish other financing obligations — 7,089

ORGANIZATION (Details)

ORGANIZATION (Details)	Sep. 30, 2024
Telos ID
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Business acquisition, percentage of voting interests acquired	100%

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Business Acquisition [Line Items]
Impairment loss on intangible assets	$ 6,373	$ 349	$ 6,373	$ 349
2024 Restructuring Plan
Business Acquisition [Line Items]
Restructuring charges incurred to date	1,400		1,400
Impairment loss on intangible assets	$ 6,373	$ 0	$ 6,373	$ 0
Employee Severance | 2022 Restructuring Plan
Business Acquisition [Line Items]
Restructuring charges					$ 3,900

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - Restructuring Expenses and Impairment Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Restructuring Cost and Reserve [Line Items]
Impairment of intangible assets	$ 6,373	$ 349	$ 6,373	$ 349
Impairment loss on intangible assets	11,700		11,706	349
Impairment loss on intangible assets	5,333	0	5,333	0
2022 And 2024 Restructuring Plans
Restructuring Cost and Reserve [Line Items]
Total restructuring expenses	1,447	0	1,437	1,197
Total restructuring expenses and impairment loss	7,820	0	7,810	1,197
2024 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Impairment of intangible assets	6,373	0	6,373	0
Selling, general and administrative | 2022 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Severance and related benefit costs	0	0	(10)	(103)
Other related costs	0	0	0	1,300
Cost of sales – services | 2024 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Severance and related benefit costs	393	0	393	0
R&D, SG&A | 2024 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Severance and related benefit costs	$ 1,054	$ 0	$ 1,054	$ 0

SIGNIFICANT ACCOUNTING POLICI_6

SIGNIFICANT ACCOUNTING POLICIES - Changes in Restructuring Expenses Accrual (Details) - Severance and related benefit costs $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Restructuring Reserve [Roll Forward]
Beginning Balance	$ 400
Expenses	1,437
Cash payments	(490)
Ending Balance	$ 1,347

REVENUE RECOGNITION - Narrative

REVENUE RECOGNITION - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Contract with customer, asset, cumulative catch-up adjustment to revenue, modification of contract	$ 0	$ 0	$ 0	$ 0
Contract loss	0	0	0	0
Contract with customer, liability, revenue recognized	1,200,000	$ 1,200,000	5,700,000	$ 5,300,000
Remaining performance obligations	$ 38,900,000		$ 38,900,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Disaggregation of Revenue [Line Items]
Remaining performance obligation (as a percent)	87%		87%
Remaining performance obligation, period	1 year		1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01
Disaggregation of Revenue [Line Items]
Remaining performance obligation, period
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	78%	89%	81%	89%
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	22%	11%	19%	11%

REVENUE RECOGNITION - Disaggreg

REVENUE RECOGNITION - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Total revenue	$ 23,783	$ 36,186	$ 81,900	$ 104,319
Revenue from Contract with Customer, Product and Service Benchmark | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Total revenue	$ 23,783	$ 36,186	$ 81,900	$ 104,319
Concentration risk, percentage	100%	100%	100%	100%
Revenue from Contract with Customer, Product and Service Benchmark | Customer Concentration Risk | Firm fixed-price
Disaggregation of Revenue [Line Items]
Total revenue	$ 18,293	$ 27,809	$ 63,308	$ 80,116
Concentration risk, percentage	77%	77%	77%	77%
Revenue from Contract with Customer, Product and Service Benchmark | Customer Concentration Risk | Time-and-materials
Disaggregation of Revenue [Line Items]
Total revenue	$ 3,045	$ 3,504	$ 9,204	$ 10,608
Concentration risk, percentage	13%	10%	11%	10%
Revenue from Contract with Customer, Product and Service Benchmark | Customer Concentration Risk | Cost plus fixed fee
Disaggregation of Revenue [Line Items]
Total revenue	$ 2,445	$ 4,873	$ 9,388	$ 13,595
Concentration risk, percentage	10%	13%	12%	13%
Federal | Revenue from Contract with Customer, Product and Service Benchmark | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Total revenue	$ 20,607	$ 32,955	$ 72,046	$ 93,456
Concentration risk, percentage	87%	91%	88%	90%
State, local, and commercial | Revenue from Contract with Customer, Product and Service Benchmark | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Total revenue	$ 3,176	$ 3,231	$ 9,854	$ 10,863
Concentration risk, percentage	13%	9%	12%	10%
U.S. Department of Defense ("DoD") | Revenue from Contract with Customer, Product and Service Benchmark | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	46%	61%	53%	65%
U.S. Department of Homeland Security ("DHS") | Revenue from Contract with Customer, Product and Service Benchmark | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	16%	6%	15%	3%

REVENUE RECOGNITION - Schedule

REVENUE RECOGNITION - Schedule of Contract Balances (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Billed accounts receivable	$ 7,690	$ 17,818
Unbilled accounts receivable	3,857	8,022
Contract assets	3,334	4,584
Contract liabilities	$ 6,779	$ 6,728

ACCOUNTS RECEIVABLE, NET - Sche

ACCOUNTS RECEIVABLE, NET - Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Billed accounts receivable	$ 7,738	$ 18,101
Unbilled accounts receivable	3,857	8,022
Contract assets	3,334	4,584
Allowance for credit losses	(48)	(283)
Accounts receivable, net	$ 14,881	$ 30,424

ACCOUNTS RECEIVABLE, NET - Narr

ACCOUNTS RECEIVABLE, NET - Narrative (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Federal | Accounts Receivable | Customer Concentration Risk
Financing Receivable, Allowance for Credit Loss [Line Items]
Concentration risk, percentage	92%	91%

INVENTORIES, NET (Details)

INVENTORIES, NET (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Gross inventory	$ 2,165	$ 2,179
Allowance for inventory obsolescence	(759)	(759)
Inventories, net	$ 1,406	$ 1,420

PROPERTY AND EQUIPMENT, NET (De

PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Gross Carrying Amount	$ 19,820		$ 19,820		$ 19,424
Accumulated Depreciation and Amortization	(16,248)		(16,248)		(15,967)
Net Carrying Value	3,572		3,572		3,457
Depreciation and amortization expense	329	$ 548	1,223	$ 1,700
Furniture and equipment
Property, Plant and Equipment [Line Items]
Gross Carrying Amount	16,425		16,425		16,213
Accumulated Depreciation and Amortization	(13,551)		(13,551)		(13,363)
Net Carrying Value	2,874		2,874		2,850
Leasehold improvements
Property, Plant and Equipment [Line Items]
Gross Carrying Amount	3,395		3,395		3,211
Accumulated Depreciation and Amortization	(2,697)		(2,697)		(2,604)
Net Carrying Value	$ 698		$ 698		$ 607

GOODWILL (Details)

GOODWILL (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Goodwill [Line Items]
Goodwill	$ 17,922,000		$ 17,922,000		$ 17,922,000
Impairment loss on intangible assets	0	$ 0	0	$ 0
Security Solutions
Goodwill [Line Items]
Goodwill	3,000,000		3,000,000		3,000,000
Secure Networks
Goodwill [Line Items]
Goodwill	$ 14,900,000		$ 14,900,000		$ 14,900,000

INTANGIBLE ASSETS, NET - Finite

INTANGIBLE ASSETS, NET - Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 29,986	$ 38,982
Accumulated Amortization	(15,732)	(13,385)
Net Carrying Value	14,254	25,597
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Gross Carrying Amount	45,359	53,001
Accumulated Amortization	(15,732)	(13,385)
Net Carrying Value	29,627	39,616
In-process software development costs
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	$ 15,373	14,019
Acquired technology
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	8 years
Gross Carrying Amount	$ 3,630	3,630
Accumulated Amortization	(1,437)	(1,097)
Net Carrying Value	2,193	2,533
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	$ (1,437)	(1,097)
Customer relationship
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	3 years
Gross Carrying Amount	$ 40	40
Accumulated Amortization	(40)	(32)
Net Carrying Value	0	8
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	(40)	(32)
Software development costs
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	26,316	35,312
Accumulated Amortization	(14,255)	(12,256)
Net Carrying Value	12,061	23,056
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated Amortization	$ (14,255)	$ (12,256)
Software development costs | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	2 years
Software development costs | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	5 years

INTANGIBLE ASSETS, NET - Narrat

INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment loss on intangible assets	$ 11,700		$ 11,706	$ 349
Impairment losses	6,373	$ 349	6,373	349
Impairment loss on intangible assets	5,333	0	5,333	0
Other asset impairment charges	$ 0	$ 0	$ 0	$ 0

INTANGIBLE ASSETS, NET - Amorti

INTANGIBLE ASSETS, NET - Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Finite-Lived Intangible Assets [Line Items]
Software development costs - cost of sales	$ 1,402	$ 1,767	$ 4,509	$ 1,767
Total	2,105	1,865	7,143	2,960
Research and Development Netting
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	588	(19)	2,286	843
Selling, general and administrative
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 115	$ 117	$ 348	$ 350

OTHER BALANCE SHEET COMPONENT_2

OTHER BALANCE SHEET COMPONENTS - Other Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Mar. 31, 2024	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Investment	$ 3,000		$ 0
Restricted cash	138		136
Other	6,382		749
Other assets	9,520		$ 885
Investment owned cost		$ 3,000
Prepaid expense and other assets	$ 5,300

OTHER BALANCE SHEET COMPONENT_3

OTHER BALANCE SHEET COMPONENTS - Accounts Payable and Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts payable	$ 2,796	$ 8,307
Accrued payables	3,493	5,443
Accounts payable and other accrued liabilities	$ 6,289	$ 13,750

OTHER BALANCE SHEET COMPONENT_4

OTHER BALANCE SHEET COMPONENTS - Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Other accrued expenses	$ 1,085	$ 1,427
Restructuring expenses accrual	1,347	400
Other	472	497
Other current liabilities	$ 2,904	$ 2,324

DEBT AND OTHER OBLIGATIONS - Re

DEBT AND OTHER OBLIGATIONS - Revolving Credit Facility (Details) $ in Millions	Dec. 30, 2022 USD ($) variable_rate day	Apr. 12, 2023 USD ($)
Debt Instrument [Line Items]
Maximum senior leverage ratio covenant	3
Receivables excluded from collateral		$ 25
Revolving Credit Facility | Credit Agreement
Debt Instrument [Line Items]
Debt instrument, variable rates | variable_rate	3
Revolving Credit Facility | Credit Agreement | Alternative Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.90%
Debt instrument, prior notice period | day	5
Revolving Credit Facility | Credit Agreement | Adjusted Daily Simple Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate	1.90%
Debt instrument, prior notice period | day	3
Revolving Credit Facility | Credit Agreement | Adjusted Term Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate	1.90%
Debt instrument, prior notice period | day	1
Revolving Credit Facility | Credit Agreement | Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 30
Incremental increase in interest rates in the event of default	2%
Letter of Credit | Credit Agreement | Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 5
Expansion feature borrowing limit	$ 30

DEBT AND OTHER OBLIGATIONS - Ot

DEBT AND OTHER OBLIGATIONS - Other Financing Obligations (Details) $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Nov. 30, 2022 USD ($) extension_option	Sep. 30, 2023 USD ($)	Sep. 30, 2024	Sep. 30, 2023 USD ($)
Debt Instrument [Line Items]
Other income		$ 0		$ 1.4
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Software Licenses Under Delivery Order
Debt Instrument [Line Items]
Consideration received	$ 9.1
Number of exercisable options | extension_option	3
Period of exercisable extension options			12 months

STOCK-BASED COMPENSATION - Narr

STOCK-BASED COMPENSATION - Narrative (Details)				3 Months Ended		9 Months Ended
	May 28, 2024 day shares	May 21, 2024 shares	May 16, 2024 shares	Sep. 30, 2024 USD ($) $ / shares	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) $ / shares shares	Sep. 30, 2023 USD ($)	Dec. 31, 2023 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) | shares						12,490,406
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, weighted average grant date fair value (in dollars per share) | $ / shares				$ 3.53		$ 3.53		$ 5.07
Income tax benefits | $				$ 0	$ 0	$ 0	$ 0
Stock-based compensation expense | $				8,814,000	$ 5,218,000	14,017,000	$ 22,462,000
Aggregate intrinsic value, outstanding, exercisable, and vested or expected to vest | $				45,800,000		45,800,000
Unrecognized stock-based compensation expense | $				24,700,000		$ 24,700,000
Weighted-average remaining vesting period						10 months 24 days
Unrecognized compensation costs related to non-vested stock options | $				$ 0		$ 0
Share-Based Payment Arrangement, Expense, Cumulative Catch-Up Adjustment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense | $						$ 1,200,000
Certain Senior Executives And Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation arrangement by share based payment award, equity instruments other than options, number of common shares that may be settled based on conditions | shares	6,875,000
Number of consecutive calendar days | day	50
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 additional shares authorized (in shares) | shares		8,500,000
Share-based compensation arrangement by share-based payment award, number of shares authorized (in shares) | shares		21,959,913
Restricted Stock Units (RSUs) | 2016 Omnibus Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period						3 years
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period						1 year
Performance-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) | shares						10,710,226
Share-based compensation arrangement by share-based payment award, fair value assumptions, expected term						2 years 7 months 2 days
Expected volatility rate						83.90%
Risk-free rate						4.70%
Performance-Based | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, weighted average grant date fair value (in dollars per share) | $ / shares				$ 2.62		$ 2.62
Share-based compensation arrangement by share-based payment award, award requisite service period						7 months 17 days
Performance-Based | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, weighted average grant date fair value (in dollars per share) | $ / shares				$ 3.75		$ 3.75
Share-based compensation arrangement by share-based payment award, award requisite service period						1 year 3 months 21 days
Performance-Based | Certain Senior Executives And Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) | shares	2,499,945		1,335,281

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock-Based Compensation Expense Incurred (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	$ 8,814	$ 5,218	$ 14,017	$ 22,462
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	188	328	(261)	1,945
Selling, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	8,511	4,817	13,678	19,893
Cost of sales – services | Cost of sales – services
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	$ 115	$ 73	$ 600	$ 624

STOCK-BASED COMPENSATION - Nonv

STOCK-BASED COMPENSATION - Nonvested Restricted Stock Units Activity (Details)	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Total
Outstanding, beginning balance (in shares)	2,176,413
Granted (in shares)	12,490,406
Vested (in shares)	(1,806,608)
Forfeited, cancelled, or expired (in shares)	(109,306)
Outstanding, beginning balance (in shares)	12,750,905
Weighted-Average Grant Date Fair Value
Outstanding, beginning balance (in dollars per share) | $ / shares	$ 5.07
Granted (in dollars per share) | $ / shares	3.47
Vested (in dollars per share) | $ / shares	4.41
Forfeited, cancelled, or expired (in shares) | $ / shares	13.82
Outstanding, ending balance (in dollars per share) | $ / shares	$ 3.53
Service-Based
Total
Outstanding, beginning balance (in shares)	2,132,613
Granted (in shares)	1,780,180
Vested (in shares)	(1,806,608)
Forfeited, cancelled, or expired (in shares)	(65,506)
Outstanding, beginning balance (in shares)	2,040,679
Performance-Based
Total
Outstanding, beginning balance (in shares)	43,800
Granted (in shares)	10,710,226
Vested (in shares)	0
Forfeited, cancelled, or expired (in shares)	(43,800)
Outstanding, beginning balance (in shares)	10,710,226

STOCK-BASED COMPENSATION - St_2

STOCK-BASED COMPENSATION - Stock Option Activity (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2024 USD ($) $ / shares shares	Dec. 31, 2023 USD ($) $ / shares shares
Stock Options Outstanding
Outstanding option balance at the beginning of period (in shares) | shares	400,000
Granted (in shares) | shares	0
Exercised (in shares) | shares	(83,000)
Forfeited, cancelled, or expired (in shares) | shares	0
Outstanding option balance at the ending of period (in shares) | shares	317,000	400,000
Exercisable stock option (in shares) | shares	317,000
Weighted-Average Exercise Price
Outstanding option balance at the beginning of period (in dollars per share) | $ / shares	$ 1.80
Granted (in dollars per share) | $ / shares	0
Exercised (in dollars per share) | $ / shares	1.80
Forfeited, cancelled, or expired (in dollars per share) | $ / shares	0
Outstanding option balance at the ending of period (in dollars per share) | $ / shares	1.80	$ 1.80
Exercisable stock option (in dollars per share) | $ / shares	$ 1.80
Stock Options Additional Disclosures
Weighted Average Remaining Contractual Term, Outstanding option balance	8 years 7 months 6 days	9 years 4 months 24 days
Aggregate Intrinsic Value, Outstanding option balance | $	$ 567,430	$ 740,000
Exercisable stock option (in shares)	8 years 7 months 6 days
Aggregate Intrinsic Value, Exercisable stock option | $	$ 567,430

SHARE REPURCHASES (Details)

SHARE REPURCHASES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	May 24, 2022
Equity [Abstract]
Stock repurchase program, authorized amount					$ 50
Stock repurchased and retired during period (in shares)	0	0	0	0
Stock repurchase program, remaining authorized repurchase amount	$ 38.7		$ 38.7

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 149,149	$ 167,536	$ 159,003	$ 172,354
Other comprehensive loss	22	29	(64)	31
Ending balance	129,483	164,021	129,483	164,021
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(146)	(53)	(60)	(55)
Ending balance	(124)	$ (24)	(124)	$ (24)
Foreign currency translation adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(167)
Other comprehensive loss			(34)
Ending balance	(201)		(201)
Pension liability adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			107
Other comprehensive loss			(30)
Ending balance	$ 77		$ 77

LOSS PER SHARE (Details)

LOSS PER SHARE (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Unvested antidilutive stock units excluded from the dilutive effect (stock units) (in shares)	10,710,226	265,608	10,710,226	265,608
Weighted-average number of shares – unvested restricted stock units and stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted-average number of shares – unvested restricted stock units and stock options (in shares)	524,000	667,000	869,000	522,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)			3 Months Ended	9 Months Ended
	Feb. 07, 2023	Jan. 03, 2023	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Related Party Transaction [Line Items]
Granted (in shares)				12,490,406
Related Party | Restricted Stock
Related Party Transaction [Line Items]
Granted (in shares)		16,859
Related Party | Restricted Stock | Share-based Payment Arrangement, Tranche One
Related Party Transaction [Line Items]
Award vesting rights, percentage		50%
Related Party | Restricted Stock | Share-based Payment Arrangement, Tranche Two
Related Party Transaction [Line Items]
Award vesting rights, percentage		50%
Director
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction			$ 32,000		$ 32,000
Emmett J. Wood | Related Party
Related Party Transaction [Line Items]
Compensation paid	$ 249,000

SEGMENT INFORMATION - Narrative

SEGMENT INFORMATION - Narrative (Details)	9 Months Ended
	Sep. 30, 2024 segment
Segment Reporting [Abstract]
Number of reportable segments	2
Number of operating segments	2

SEGMENT INFORMATION - Operation

SEGMENT INFORMATION - Operations by Business Segment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenues
Total revenue	$ 23,783,000	$ 36,186,000	$ 81,900,000	$ 104,319,000
Cost of sales (excluding impairment loss, depreciation and amortization)
Total cost of sales (excluding impairment loss, depreciation and amortization)	13,817,000	21,228,000	47,949,000	63,174,000
Impairment loss on intangible assets
Total impairment loss on intangible assets	5,333,000	0	5,333,000	0
Depreciation and amortization
Depreciation and amortization	1,490,000	1,945,000	4,807,000	2,291,000
Gross profit
Total gross profit	3,143,000	13,013,000	23,811,000	38,854,000
Operating expenses	32,007,000	22,706,000	69,757,000	70,984,000
Operating loss	(28,864,000)	(9,693,000)	(45,946,000)	(32,130,000)
Other income	983,000	1,222,000	3,299,000	5,367,000
Interest expense	(157,000)	(178,000)	(492,000)	(611,000)
Loss before income taxes	(28,038,000)	(8,649,000)	(43,139,000)	(27,374,000)
Provision for income taxes	(17,000)	(23,000)	(51,000)	(68,000)
Net loss	(28,055,000)	(8,672,000)	(43,190,000)	(27,442,000)
Impairment loss on intangible assets	0	0	0	0
Impairment loss on intangible assets	6,373,000	349,000	6,373,000	349,000
Security Solutions
Revenues
Total revenue	18,332,000	19,795,000	54,839,000	56,764,000
Cost of sales (excluding impairment loss, depreciation and amortization)
Total cost of sales (excluding impairment loss, depreciation and amortization)	9,201,000	8,498,000	26,505,000	25,304,000
Impairment loss on intangible assets
Total impairment loss on intangible assets	5,333,000	0	5,333,000	0
Depreciation and amortization
Depreciation and amortization	1,488,000	1,943,000	4,800,000	2,281,000
Gross profit
Total gross profit	2,310,000	9,354,000	18,201,000	29,179,000
Secure Networks
Revenues
Total revenue	5,451,000	16,391,000	27,061,000	47,555,000
Cost of sales (excluding impairment loss, depreciation and amortization)
Total cost of sales (excluding impairment loss, depreciation and amortization)	4,616,000	12,730,000	21,444,000	37,870,000
Impairment loss on intangible assets
Total impairment loss on intangible assets	0	0	0	0
Depreciation and amortization
Depreciation and amortization	2,000	2,000	7,000	10,000
Gross profit
Total gross profit	$ 833,000	$ 3,659,000	$ 5,610,000	$ 9,675,000

SUPPLEMENTAL CASH FLOW INFORM_3

SUPPLEMENTAL CASH FLOW INFORMATION - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Supplemental Cash Flow Elements [Abstract]
Cash and cash equivalents	$ 69,762	$ 99,260
Restricted cash	138	136
Cash, cash equivalents, and restricted cash	$ 69,900	$ 99,396	$ 100,088	$ 119,438

SUPPLEMENTAL CASH FLOW INFORM_4

SUPPLEMENTAL CASH FLOW INFORMATION - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash paid during the period for:
Interest	$ 427	$ 548
Income taxes	100	147
Non-cash investing and financing activities:
Operating lease ROU assets obtained in exchange for operating lease liabilities	626	67
Capital expenditure activity in accounts payable and other accrued liabilities	1,041	173
Issuance of common stock for 401K match	1,619	1,943
Intangible assets transferred to extinguish other financing obligations	$ 0	$ 7,089