What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-03-10 compared with 2024-03-15 · 81 added, 106 removed, 152 unchanged (55% of the section changed)

General Overview

Business Overview

Telos Corporation is a Maryland corporation headquartered in Ashburn, Virginia.

Telos Corporation, together with its subsidiaries (the "Company" or "Telos" or "We"), offers technologically advanced, software-based security solutions that empower and protect the world's most security-conscious organizations against rapidly evolving, sophisticated and pervasive threats.

Our portfolio of security products, services and expertise empowers our customers with capabilities to reach new markets, serve their stakeholders more effectively, and successfully defend the nation or their enterprise with confidence in their security and privacy.

Our mission is to protect our customers' people, information, and digital assets with offerings for cybersecurity, cloud security, and enterprise security.

Our portfolio of security products, services and expertise endows our customers with capabilities to reach new markets, serve their stakeholders more effectively, and successfully defend the nation or their enterprise with confidence in their security and privacy.

Our mission is to protect people, organizations, and information through trusted solutions that proactively manage risk, compliance, and persistent digital identity.

We do this by developing robust, reliable, and uncompromising solutions for our customers, creating a workplace that engages and inspire our employees, and providing value to our shareholders to ensure a lasting legacy of excellence.

In the current global environment, our mission is more critical than ever.

3 unchanged sentences

Cybersecurity, cloud security, and enterprise security of the modern organization share much in common, yet also call for a diverse range of skills, capabilities, and experience in order to meet the requirements of security-conscious customers.

Our vision is to create a more secure, interconnected world as the trusted leader in innovative digital security solutions that safeguard people, organizations, and information.

Decades of experience in developing, orchestrating, and delivering solutions across these three domains give us the vision and the confidence to provide solutions that empower and protect the enterprise at an integrated, holistic level.

2 unchanged sentences

Our security solutions span these three domains:

cybersecurity, cloud security and enterprise security.

Fiscal year 2023 was a transition year for Telos, with a focus on streamlining our operations while rebuilding and growing our revenue base by generating new business wins.

Our 2023 business development priorities were to:

• Reorganize internally to consolidate and centralize business development resources;

• Add new talent to drive execution of solution development and new business generation;

• Maximize existing strategic partnerships for market expansion;

• Increase our opportunity portfolio and quality of contract vehicles.

To improve our path forward, we planned to:

• Optimize our solution portfolio through accelerated plays on various programs and enhance program management;

• Expand our pipeline and strengthen proposals for new businesses;

• Engage all employees through synergy, setting performance goals, and improving benefits.

Business Segments

cybersecurity, cloud security and enterprise network security.

Our Business Segments

We conduct our business through two reportable and operating segments:

11 unchanged sentences

The Security Solutions segment offers the following solutions and services:

• Information Assurance:

a premier platform for enterprise cyber risk management and security compliance automation, delivering security awareness for systems in the cloud, on-premises, and in hybrid and multi-cloud environments.

Xacta ® is a premier platform for enterprise cyber risk management and security compliance automation, delivering security awareness for systems in the cloud, on-premises, and in hybrid and multi-cloud environments.

Xacta delivers automated cyber risk and compliance management solutions to large commercial and government enterprises.

1 unchanged sentence

With use cases including cyber risk management, risk remediation management, security authorization, compliance management, audit management, inventory management, vulnerability management, continuous compliance monitoring, and vendor and supply chain risk management, Xacta administers the key elements of more than 100 leading regulations and policies for IT security compliance, including the National Institute of Standards and Technology ("NIST") Risk Management Framework ("RMF"), RMF for Department of Defense ("DoD") IT, Committee on National Security Systems Instruction No.

1253, NIST Cybersecurity Framework, the Federal Risk and Authorization Management Program and the DoD's Cybersecurity Maturity Model Certification ("CMMC") program.

1253, NIST Cybersecurity Framework, the Federal Risk and Authorization Management Program ("FedRAMP") and the DoD's Cybersecurity Maturity Model Certification ("CMMC") program.

• Cybersecurity Services:

proven solutions and services for the full cybersecurity lifecycle, including consulting services, assessment and compliance, engineering and evaluation, operations, and penetration testing.

With a pedigree in information and cybersecurity that spans three decades, our certified cybersecurity personnel provide services and solutions that deliver continuous security assurance for business, government, and critical infrastructure.

• Secure Communications:

We offer solutions and services for the full cybersecurity lifecycle, including Risk Management Framework ("RMF") consulting services, assessment and compliance, engineering and evaluation, operations, and penetration testing.

With a pedigree in information and cybersecurity that spans three decades, our multi-certified cybersecurity personnel provide services and solutions that deliver continuous security assurance for business, government, and public sector critical infrastructure.

• Telos Automated Message Handling System ("Telos AMHS ™ "):

web-based organizational message distribution and management for mission-critical communications;

Telos AMHS is a web-based organizational message distribution and management solution for mission-critical communications;

the recognized gold standard for organizational messaging in the U.S.

3 unchanged sentences

Information exchanged at this level and for these purposes requires operational requirements for time-sensitive, guaranteed delivery, precedence, high availability, and reliability.

◦ Telos Advanced Cyber Analytics ("Telos ACA") :

a solution that is a dynamic, proprietary threat feed source of global Internet Protocol ("IP") addresses known to engage in potentially malicious activity, including mass scanning and generic opportunistic attacks.

Telos ACA™ allows security operation centers the advantage of being able to reduce "noisy" IP security threat alerts and thereby increase operational efficiency, the ability to potentially identify forthcoming mass exploitation events, and the ability to improve the focus of ongoing threat hunts.

Telos ACA leverages a sophisticated global sensor network of nodes that run 24/7/365 and analyzes and aggregates anomalous Internet activity in near real time.

Telos ACA intelligence is seamlessly and conveniently delivered as an industry-standard Structured Threat Information eXpression/Trusted Automated eXchange of Intelligence Information ("STIX/TAXII") based threat feed.

STIX states the "what" of threat intelligence, while TAXII defines "how" that information is relayed.

STIX and TAXII are machine-readable and, therefore, easily automated.

This allows for easy consumption into third-party security tools, where the threat feed can be used to enrich and provide relevant information related to potential malicious network activity within environments.

Telos ACA provides the IP, metadata, and raw data elements to improve threat hunting and eliminate threat noise.

◦ Telos Ghost ® :

a virtual obfuscation network-as-a-service with encryption and managed attribution capabilities to ensure the safety and privacy of people, information, and resources on the network.

Telos Ghost seeks to eliminate cyberattack surfaces by obfuscating and encrypting data, masking user identity and location, and hiding network resources.

It provides the additional layers of security and privacy needed for intelligence gathering, cyber threat protection, securing critical infrastructure, and protecting communications and applications when a single error in security can jeopardize operations, property, and even lives.

Telos Ghost is used for a variety of highly sensitive applications, including cyber threat research, open-source intelligence, supply chain security vulnerability assessment, worldwide investigative and recovery services, and hiding critical assets.

• Digital Identity Solutions:

◦ IDTrust360 ® :

an enterprise digital trusted identity risk platform for extending flexible hybrid cloud identity services.

◦ IDTrust360 ® is an enterprise digital trusted identity risk platform for extending flexible hybrid cloud identity services.

This platform is enabled for mobile, enterprise environments and custom digital identity services that mitigate threats by integrating advanced technologies that fuse biometrics, credentials, and other identity-centric data used to continuously monitor trust.

3 unchanged sentences

This enables Telos to offer NIST-compliant digital identity services aligned with federal security mandates.

the world's first and most accurate touchless fingerprint biometric solution for mobile devices.

Powered by state-of-the-art machine learning, ONYX eases deployment in a variety of industries, including financial services and healthcare, and applications like consumer authentication and physical access and security.

Acquired by Telos in 2021, the patented and award-winning ONYX solution delivers touchless fingerprint biometrics that people can submit simply by using their mobile phones.

In June 2022, ONYX won first place in the overall competition of the Mobile Fingerprint Information Technology Challenge hosted by the NIST.

We maintain government certifications and designations that distinguish Telos ID, including TSA PreCheck ® enrollment provider, Aviation Channeling Services ("ACS") provider, FBI-approved Channeler, and Financial Industry Regulatory Authority Electronic Fingerprint Submission provider.

◦ ONYX®, a mobile touchless fingerprint software development kit, enables secure biometric authentication by leveraging standard smartphone cameras to capture and process high-quality fingerprint images without physical contact.

It uses artificial intelligence (“AI”) neural networks for finger detection and automatic acquisition, along with a patented image processing algorithm to generate precise, machine-matchable fingerprints.

Targeting markets such as financial services, healthcare, government, and enterprise security, ONYX is ideally suited for use cases including mobile banking, field identification for law enforcement, telemedicine identity verification, secure access control, and remote onboarding.

Its value proposition lies in delivering a cost-effective, scalable, and user-friendly biometric solution that eliminates the need for specialized hardware, enhances security with liveness detection, and supports seamless integration across iOS and Android platforms, empowering organizations to strengthen identity management and combat fraud efficiently

Telos’ sovereign, reusable Identity-as-a-Service Solution ("IDaaS") is designed for the use of government agencies, mobile network operators, banking organizations and others who need to incorporate a zero-trust method of identity verification into existing know-your-customer and onboarding processes, while striving to remain in front of international data protection and privacy regulations.

This user-controlled system empowers individuals to hold and manage their own identity data, presenting it securely to relying parties or verifiers while ensuring trust through server-side biometric authentication powered by our proprietary ONYX technology.

Organizations leveraging the IDaaS solution offered by Telos save on the cost and effort of onboarding new users without worrying about the complexities of verifying individual identities.

The solution provides fully proofed and vetted reusable identities to reduce risk across all identity-related enterprise events, and fosters trust across markets such as financial services, healthcare, government, and enterprise security for use cases like digital wallets, remote onboarding, and secure access control.

We maintain government certifications and designations that distinguish Telos ID, including TSA PreCheck ® enrollment provider, Aviation Channeling Services provider, FBI-approved Channeler, and Financial Industry Regulatory Authority Electronic Fingerprint Submission provider.

Secure Networks Segment:

2 unchanged sentences

Telos provides an extensive range of wired and wireless, fixed and deployable, classified and unclassified voice, data, and video secure network solutions and services to support defense and civilian missions.

Capabilities include network design, operations, and sustainment, system integration and engineering, network security and compliance, deployable comms, service desk, defensive cyber operations, and program management.

Our capabilities include network design, operations and sustainment, system integration and engineering, network security and compliance, deployable comms, service desk, defensive cyber operations, and program management.

Secure Networks represented 29% and 47% of total revenues for the years ended December 31, 2024 and 2023, respectively.

These are our solutions and services in our Secure Networks segment:

The Security Networks segment offers the following solutions and services:

• Secure Mobility:

solutions for business and government that enable remote work and minimize operational and security concerns across and beyond the enterprise.

We offer solutions for business and government that enable work off-premise and minimize operational and security concerns across and beyond the enterprise.

Our secure mobility team brings credentials to every engagement, supplying deep expertise and experience, highly desirable clearances and industry-recognized certifications for network engineering, mobility, and security.

1 unchanged sentence

• Network Management and Defense:

services for operating, administrating, and defending complex enterprise networks and services for defensive cyber operations.

We provide services for operating, administrating, and defending complex enterprise networks and services for defensive cyber operations.

Our diverse network management and defense capabilities address common and uncommon requirements in many industries and disciplines, from military to government agencies.

1 unchanged sentence

We ensure the consistency and continuity of network management services required in today's mission-critical network environments.

Our Growth Strategies

We are pursuing multiple strategies in order to grow the Company in both our commercial and government business end markets.

Our key growth strategies include:

• Broaden reach within the U.S.

Drivers for Future Growth

We are pursuing multiple strategies in order to grow our business, which include:

• Ramp our pre-existing programs.

Capitalizing on organic growth opportunities is a key to our core business.

Our strategy includes increasing the scope of our existing contracts through renewal or expansion of our offerings.

• Rebuild our contract vehicles portfolio.

Notable contracts with our key customers, mainly U.S.

federal government agencies, require bidders to be pre-approved on registered contract vehicles.

We strive to have prime or subcontractor positions on a wide range of contracts to allow our customers and potential customers an opportunity to access our solutions and services through Indefinite Delivery / Indefinite Quantity ("IDIQ") and definite contract vehicles.

• Broaden our reach within the U.S.

federal government .

We have historically focused on the U.S.

federal government and believe we are an established leader in providing security solutions to federal agencies, including DoD and the IC.

federal government and believe we are an established leader in providing security solutions to federal agencies.

Nonetheless, we believe the U.S.

1 unchanged sentence

federal government.

For example, Xacta is included on DHS's Continuous Diagnostics and Mitigation Approved Products List to provide federal agencies with innovative security tools, which we believe presents us with an excellent opportunity to pursue contracts with additional federal agencies.

In addition, our platform is available for use in the AWS GovCloud (U.S.), Oracle and Azure Government.

The Telos ACA offering is positioned to supply unique data sets to government agencies, allowing them to be better informed as they defend and protect their networks and assets.

Telos ACA is also positioned to provide government customers with specific, actionable and high-fidelity intelligence about malicious cyber activity targeted at their networks.

• Leverage our diverse security solutions to expand our presence in commercial markets .

Our offerings are designed to have broad applications and include security risk and compliance, secure messaging, identity vetting, and managed attribution and obfuscation.

We believe that we are well-positioned to sell our capabilities into a dynamic and growing commercial opportunity set and will continue innovating to address emerging and unique requirements.

For example, we have leveraged core Xacta functionality to meet the needs of large financial services and customer relationship management firms.

For example, Xacta is included on DHS's Continuous Diagnostics and Mitigation Approved Product List to provide federal agencies with innovative security tools, which we believe presents us with an excellent opportunity to pursue contracts with additional federal agencies.

In addition, Xacta is available for use in the Amazon Web Services ("AWS") GovCloud (U.S.), Oracle and Azure Government.

• Leverage our diverse security solutions to target market expansion .

Our offerings are designed to have broad applications and include cloud and network security risk and compliance, secure messaging, and identity vetting through biometric capture and analysis.

We believe we are well-positioned to sell our capabilities into a dynamic and growing commercial opportunity set and will continue innovating to address emerging and unique requirements.

For example, we have leveraged core Xacta functionality to meet the needs of large financial services and customer relationship management ("CRM") firms.

We have also leveraged our U.S.

federal government identity management qualifications to improve the speed and accuracy of vetting results for more than 100 airports, air carriers, and general aviation across the country.

federal government identity management qualifications to improve the speed and accuracy of vetting results for more than 100 airports, air carriers, and general aviation operators across the country.

We intend to continue innovating and developing additional offerings for cloud, mobile, and Internet of Things ("IoT") devices.

• Target and replace inefficient legacy products .

Recognizing the limitations of their legacy systems, organizations are replacing existing systems and processes with Telos solutions.

For example, Telos AMHS is a web-centric system that replaced legacy capabilities like communications centers for the purpose of executing operational orders (through organizational messaging) across the U.S.

federal government and around the world.

Xacta has disrupted the cyber risk and compliance management business across the U.S.

federal government, replacing tedious manual activity with automation and delivering that automation to meet our customer's needs on-premises, in hybrid environments, in the cloud, and across multi-cloud infrastructures.

• Pursue strategic acquisition opportunities .

• Pursue strategic investments and partnerships .

We believe that our markets remain fragmented, with many niche players providing limited product solutions targeting narrow customer segments.

Given the breadth of our solution set and our customer end markets, we believe that we are well-positioned to opportunistically acquire smaller companies and incorporate their technology or deploy their solutions across a larger customer set.

We believe that a targeted and opportunistic acquisition strategy will be a force multiplier for our organic growth opportunity.

Given the breadth of our solution set and our customer end markets, we believe we are well-positioned to opportunistically invest in and/or build partnerships with smaller companies, and incorporate their technology or deploy their solutions across a larger customer set.

We believe a targeted and opportunistic investment strategy will be a force multiplier for our organic growth opportunity.

• Invest strategically into groundbreaking research and development for our intellectual property .

We believe artificial intelligence – large language models can offer an unparalleled advantage to our customers in automation and cost savings, a cornerstone of our Xacta platform.

Telos has begun making strategic investments to bring meaningful AI capabilities to our platform.

Our Customers

Our primary customers include the U.S.

federal government, large commercial businesses, state and local governments, and international customers.

Our consolidated revenues are largely attributable to prime contracts or to subcontracts with our contractors engaged in work for the U.S.

Our consolidated revenues are largely attributable to prime contracts or subcontracts with our contractors engaged in work for the U.S.

government, with the remaining attributable to state and local governments, and commercial markets.

Our security solutions are the product of the extensive labor investment in developing our intellectual property and highly sophisticated software technology.

These investments helped us expand with commercial customers, and win additional contracts within the military, the IC and civilian government agencies.

Once our security solutions are embedded in our customers' technology infrastructure, these customer relationships often expand and lead to opportunities to provide additional security solutions.

federal government customers include the DoD, the Central Intelligence Agency, and multiple other agencies within the IC, and multiple civilian agencies, including but not limited to, the DHS, the U.S.

Department of State, the FBI, and the Department of Health and Human Services.

federal government customers include the DoD, the IC, and multiple civilian and public sector agencies, including DHS, the U.S.

Department of Justice, the U.S.

Department of Energy, the U.S Department of the Treasury, the U.S.

Social Security Administration, the U.S.

Environment Protection Agency, and more.

These customers have a number of subsidiary agencies with separate budgets and procurement functions.

Our contracts may be with the highest level of these agencies or with the subsidiary agencies of these customers.

Our commercial customers include leading enterprises such as Amazon.com, Inc., Google, Zscaler, Ernst & Young, Deloitte, Accenture, SAP, Verizon and Oracle.

Our commercial customers include some of the largest technology, communications, and professional services companies in the U.S.

Sales and Marketing

As part of our sales and marketing investments, we also make corporate investments in functional areas such as contracts, solution architects, lead generation tools, and operations to ensure our back-office systems and processes scale for business growth.

We expanded our sales capability for markets in which we are well known, such as the U.S.

government, certain critical infrastructure sectors, and certain commercial verticals such as healthcare and financial services.

We added commission incentivized sales personnel aligned to market segments focused on the U.S.

federal government, the IC and the DoD market areas.

Customer acquisition often involves extensive interaction at all levels of an organization, from executives, to decision makers, to end users.

We seek to forge relationships throughout an organization in an effort to obtain broad consensus as part of the sales process.

We leverage the full power of Telos (executives, sales and industry partners) to gain access and build our brand awareness.

We sell our products and services leveraging a direct sales approach, with a small subset being executed through a handful of partner organizations.

Our customer acquisition success extends to commercial customers and vendors seeking to do business with the U.S.

federal government, however our largest portion of revenue lies with the U.S.

government itself.

Our sales strategy is to establish a customer foothold with one of our solutions and work to achieve rapid success.

1 unchanged sentence

We have a variety of upsell opportunities that allow us to expand our presence within a customer account.

For example, various complementary Xacta features build on each other and are sold separately.

Much of our business is awarded through the submission of formal competitive bids;

1 unchanged sentence

Partner Organizations

Our sales team works with partner organizations like AWS, Microsoft Azure, and Oracle to pursue mutual customers and leverage their marketplace platforms and marketing programs.

In the past years, Telos announced a collaboration with IBM Security as part of IBM's Active Governance Services, which allows enterprises to operationalize and automate activities and solve challenges in cybersecurity compliance and regulatory risks.

The solution combines IBM's world-class expertise in cyber compliance and governance programs with Telos' Xacta IT risk management platform to automate the time-consuming aspects of compliance and audit activities such as control selection, validation, reporting, and monitoring.

We build market awareness of Telos and our solutions through a variety of marketing programs, including regular briefings with industry analysts, public relations activities, government relations initiatives, web seminars, trade show exhibitions, speaking engagements, and digital marketing.

Our sales team works with partner organizations like AWS, Microsoft Azure, and IBM to pursue mutual customers and leverage their marketplace platforms and marketing programs.

We build market awareness of Telos and our solutions through a variety of marketing programs, including regular briefings with industry analysts, public relations activities, trade show exhibitions, speaking engagements, and digital marketing.

We will continue investing in these activities and targeting additional vertical-specific content creation, targeted advertising and brand awareness campaigns, social media campaigns, and search engine marketing.

3 unchanged sentences

We invest substantial resources in research and development to innovate new solutions, enhance our offerings and grow opportunities by developing new features and modules for our existing platforms.

In 2023, we invested in preexisting programs and next generation solutions in secure communications and cybersecurity.

Leveraging our agile innovation and development practices, we rapidly establish prototypes that we can fully test for suitability and to pre-establish enterprise risk level across a variety of government networks and clouds.

See Note 2 - Significant Accounting Policies (under the caption "Research and Development") included in our notes to consolidated financial statements.

We are leveraging our improved agile innovation and rapid automated development practices to rapidly establish prototypes that we can fully test for suitability and to pre-establish enterprise risk level across a variety of government networks and clouds.

We are committed to and view our continued investment in research and development as a key factor to our long-term business success.

Human Capital Resources

As of December 31, 2023, we had 619 employees, of whom approximately 88.7% are located in the United States.

As of December 31, 2024, we had 519 employees, of which 504 were full-time employees.

As of December 31, 2024, approximately 89% of our workforce was located in the United States.

Approximately 294 of our U.S.-based employees held U.S.

security clearances, and 26% self-identify as veterans of U.S.

military service.

security clearances, and 26% self-identified as veterans of U.S.

military service as of that date.

Our employees are not represented by a labor union or covered by a collective bargaining agreement.

16 unchanged sentences

An essential part of our brand promise is always to engage employees, customers, partners, suppliers, and investors with integrity.

As part of our effort to improve our disclosures around human capital issues, in 2023, we provided a public report pursuant to the Sustainability Accounting Standards Board ("SASB") Software & IT Service Standard, which report addresses, in part, metrics relating to recruiting and managing a global, diverse and skilled workforce.

As part of our effort to improve our disclosures around human capital issues, we provided a public report pursuant to the Sustainability Accounting Standards Board ("SASB") Software & IT Service Standard, which addresses, in part, metrics relating to recruiting and managing a global, diverse and skilled workforce.

Talent Acquisition and Retention

2 unchanged sentences

This involves leveraging various channels, such as job boards, social media platforms, and diversity-focused partnerships, to engage with candidates from different backgrounds and experiences.

During 2023, we made several improvements to our employee value proposition, including enhancements on benefits available to employees, increasing paid time off and parental leave, accelerating the vesting period for stock matched by the Company in employees' 401(k) plans, instituting a new performance management program, and various supplemental programs to support our employees' physical, mental and financial well-being.

We continuously make improvements to our employee value proposition, including enhancements on benefits available to employees, increasing paid time off and parental leave, accelerating the vesting period for stock matched by the Company in employees' 401(k) plans, instituting a new performance management program, and various supplemental programs to support our employees' physical, mental and financial well-being.

In addition, at Telos, we help our employees succeed by providing flexibility in where and how they work.

1 unchanged sentence

This strategy increases employee empowerment and satisfaction, drives efficiency, and enables us to hire from a broad and diverse talent pool.

Diversity and Inclusion

We value diversity and inclusion and are committed to providing a work environment free of discrimination and harassment, where our employees can do their best work, bring their whole selves to work, feel supported, and in turn, support others.

We are committed to providing a work environment free of discrimination and harassment, where our employees can do their best work, bring their whole selves to work, feel supported, and in turn, support others.

We strive to create a working environment where everyone feels included and respected and has an equal opportunity to contribute.

We believe that diverse teams maximize their potential and bring with them varied views, experiences, and perspectives .

While we believe that our employee population is gender and ethnically diverse for our industry and operating markets, with approximately 25% of our global population self-identifying as female and approximately 38% self-identifying as underrepresented minorities, our objective is to continue to improve our hiring, development, training, advancement, and retention of diverse talent and to foster an inclusive environment at Telos.

We promote collaboration and encourage employees to maximize their potential by bringing varied views, experiences, and perspectives to their work.

Our objective is to continue to improve our hiring, development, training, advancement, and retention of talent and to foster a synergistic environment at Telos.

We generally experience seasonality due to our key customers' fiscal year ends and procurement cycles.

We derive a substantial portion of our revenue from the U.S.

government, whose fiscal year ends on September 30 of each year, which may favorably impact our third fiscal quarter.

government, whose fiscal year ends on September 30 of each year, which may impact our third fiscal quarter.

In addition, our quarterly results may be impacted by the number of working days in a given quarter.

4 unchanged sentences

government and other contracts.

government contracts generally are subject to the Federal Acquisition Regulation ("FAR"), which sets forth policies, procedures and requirements for acquiring goods and services by the U.S.

government, and agency-specific regulations that implement or supplement the FAR.

government contracts generally are subject to the Federal Acquisition Regulation ("FAR") and Defense Federal Acquisition Regulation Supplement ("DFARS"), which sets forth policies, procedures and requirements for acquiring goods and services by the U.S.

government, and agency-specific regulations that implement or supplement the FAR or DFARS.

These regulations impose a broad range of requirements, many of which are unique to government contracting, including various procurement, security, contract pricing and cost, contract termination, and adjustments and audit requirements.

13 unchanged sentences

The predominant contracting methods through which U.S.

government agencies procure services and products include definitive award contracts, indefinite delivery / indefinite quantity ("IDIQ") contracts, U.S.

government agencies procure services and products include definitive award contracts, IDIQ contracts, Blanket Purchase Agreements ("BPAs"), U.S.

General Service Administration ("GSA") schedule contracts and other transactional agreements ("OTA").

7 unchanged sentences

The operating results of these classified programs are included in our consolidated financial statements.

These regulations and risks are described in more detail below under "Risk Factors" in this Annual Report on Form 10-K.

These regulations and risks are described in more detail below under Item 1A, " Risk Factors " in this Annual Report on Form 10-K.

Environmental, Social, and Governance Matters

2 unchanged sentences

The Company publicly reports certain climate change-related information via CDP and provides public sustainability disclosures using the SASB Software & IT Service Standard.

By making these disclosures, however, we have not concluded that the information disclosed is material to our business.

By making these disclosures, however, we have not concluded that the information disclosed is material to our business and this information is not incorporated by reference into and is not a part of this Annual Report on Form 10-K.

The Board of Directors authorized the Nominating and Corporate Governance Committee to oversee the Company's ESG efforts, which include climate-related risks and opportunities.

8 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business