5 unchanged sentences
dollars was insignificant.
−Removed: Further, we do not enter into financial instruments for trading purposes.
+Added: Further, we do not enter into financial instruments for trading or hedging purposes.
Consolidated Financial Statements and Supplementary Data
2 unchanged sentences
Opinions on the Financial Statements and Internal Control over Financial Reporting
−Removed: We have audited the accompanying consolidated balance sheets of Telos Corporation and its subsidiaries (the “Company”) as of December 31, 2024 and 2023, and the related consolidated statements of operations, comprehensive loss, changes in stockholders’ equity and cash flows for each of the two years in the period ended December 31, 2024, including the related notes (collectively referred to as the “consolidated financial statements”).
+Added: We have audited the accompanying consolidated balance sheets of Telos Corporation and its subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of operations, of comprehensive loss, of changes in stockholders’ equity and of cash flows for the years then ended, including the related notes (collectively referred to as the "consolidated financial statements").
We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
−Removed: In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
+Added: In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.
Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.
31 unchanged sentences
These procedures included testing the effectiveness of controls relating to the revenue recognition process.
−Removed: These procedures also included, among others, (i) testing a sample of revenue recognized by obtaining and inspecting source documents, such as invoices, customer purchase orders, customer sales agreements, cost support, shipping documents, evidence of performance, customer acceptance support, and payment receipts from customers and (ii) testing a sample of outstanding customer invoice balances as of December 31, 2024 by obtaining subsequent payment receipts and, for invoices not yet paid, obtaining and inspecting source documents, such as invoices, customer purchase orders, customer sales agreements, shipping documents and payment receipts from customers.
+Added: These procedures also included, among others, (i) testing a sample of revenue recognized by obtaining and inspecting source documents, such as invoices, customer purchase orders, customer sales agreements, cost support, shipping documents, evidence of performance, customer acceptance support, and payment receipts from customers and (ii) confirming a sample of outstanding customer invoice balances as of December 31, 2025 and, for confirmations not returned, obtaining and inspecting source documents, such as invoices, customer purchase orders, customer sales agreements, shipping documents, and subsequent cash receipts.
/s/ PricewaterhouseCoopers LLP
18 unchanged sentences
Selling, general and administrative expenses 78,925 75,487
+Added: Goodwill impairment 14,916 —
Impairment loss on intangible assets — 6,373
4 unchanged sentences
Loss before income taxes ( 37,209 ) ( 52,494 )
−Removed: Provision for income taxes ( 26 ) ( 36 )
+Added: Benefit from (provision for) income taxes 663 ( 26 )
Net loss $ ( 36,546 ) $ ( 52,520 )
2 unchanged sentences
Diluted $ ( 0.50 ) $ ( 0.73 )
−Removed: Weighted-average share outstanding:
+Added: Weighted-average shares outstanding:
Basic 72,878 71,850
6 unchanged sentences
Net loss $ ( 36,546 ) $ ( 52,520 )
−Removed: Other comprehensive loss, net of tax:
+Added: Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments ( 2 ) ( 8 )
−Removed: Actuarial loss on pension liability adjustment ( 61 ) —
−Removed: Other comprehensive loss ( 69 ) ( 5 )
+Added: Actuarial gain (loss) on pension liability adjustment 35 ( 61 )
+Added: Other comprehensive income (loss) 33 ( 69 )
Comprehensive loss $ ( 36,513 ) $ ( 52,589 )
3 unchanged sentences
As of December 31,
−Removed: (in thousands, except per share and share data)
+Added: (in thousands, except per share amount and share data)
Cash and cash equivalents $ 53,180 $ 54,578
Accounts receivable, net 17,000 19,172
−Removed: Inventories, net 1,783 1,420
Prepaid expenses 10,565 15,092
+Added: Deferred program expenses 10,006 —
Other current assets 3,662 2,576
8 unchanged sentences
Liabilities and Stockholders' Equity:
−Removed: Accounts payable and other accrued liabilities $ 4,300 $ 13,750
+Added: Accounts payable $ 4,087 $ 1,153
+Added: Accrued liabilities 6,900 4,449
Accrued compensation and benefits 12,309 7,608
−Removed: Contract liabilities 6,838 6,728
+Added: Contract liabilities – current portion 11,223 6,838
Finance lease obligations – current portion 2,033 1,877
Operating lease obligations – current portion 232 210
−Removed: Other current liabilities 1,302 2,324
Total current liabilities 36,784 22,135
+Added: Contract liabilities – non-current portion 1,124 —
Finance lease obligations – non-current portion 5,608 7,641
18 unchanged sentences
Net loss $ ( 36,546 ) $ ( 52,520 )
−Removed: Adjustments to reconcile net loss to cash (used in) provided by operating activities:
+Added: Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Stock-based compensation 30,150 21,411
Depreciation and amortization 11,451 11,867
−Removed: Impairment loss on intangible assets 11,706 487
−Removed: (Recovery from) provision for doubtful accounts, net ( 20 ) 152
−Removed: Deferred income tax provision — 55
−Removed: (Gain) loss on disposal of fixed assets ( 9 ) 2
−Removed: Accretion of discount on acquisition holdback — 2
+Added: Goodwill impairment 14,916 —
+Added: Provision for (recovery from) doubtful accounts, net 2 ( 20 )
+Added: Benefit from deferred income taxes ( 760 ) —
+Added: Loss (gain) on disposal of fixed assets 15 ( 9 )
+Added: Unrealized gain on fair value adjustment of investment ( 750 ) —
Amortization of debt issuance costs 70 70
Provision for inventory obsolescence 418 108
−Removed: Gain on early extinguishment of other financing obligations — ( 1,427 )
+Added: Impairment loss on intangible assets — 11,706
Changes in other operating assets and liabilities:
Accounts receivable 2,170 11,272
−Removed: Inventories ( 471 ) 1,457
−Removed: Prepaid expenses, other current assets and other assets ( 11,455 ) ( 3,058 )
−Removed: Accounts payable and other accrued payables ( 9,417 ) ( 8,817 )
+Added: Prepaid expenses, deferred program expenses, other current assets and other assets ( 472 ) ( 11,926 )
+Added: Accounts payable 2,724 ( 7,121 )
Accrued compensation and benefits 650 ( 7,395 )
Contract liabilities 5,510 110
−Removed: Other current liabilities and other liabilities ( 1,195 ) ( 2,629 )
−Removed: Net cash (used in) provided by operating activities ( 25,938 ) 1,587
+Added: Accrued liabilities and other liabilities 634 ( 3,491 )
+Added: Net cash provided by (used in) operating activities 30,182 ( 25,938 )
Cash flows from investing activities:
Capitalized software development costs ( 8,176 ) ( 11,505 )
−Removed: Purchase of investment ( 3,000 ) —
Purchases of property and equipment, net ( 739 ) ( 2,252 )
+Added: Purchase of investment — ( 3,000 )
Net cash used in investing activities ( 8,915 ) ( 16,757 )
3 unchanged sentences
Proceeds from exercise of stock options 108 203
−Removed: Payments of DFT holdback amount — ( 564 )
Repurchase of common stock ( 13,627 ) —
16 unchanged sentences
Foreign currency translation loss — — — ( 8 ) — ( 8 )
+Added: Actuarial loss on pension liability adjustment — — — ( 61 ) — ( 61 )
Stock-based compensation — — 19,359 — — 19,359
Restricted stock unit award vested, net of shares withheld to cover tax withholding 1,792 2 ( 459 ) — — ( 457 )
+Added: Issuance of common stock upon exercise of stock options 113 — 203 — — 203
Issuance of common stock for 401K match 370 — 1,618 — — 1,618
2 unchanged sentences
Foreign currency translation loss — — — ( 2 ) — ( 2 )
−Removed: Actuarial loss on pension liability adjustment — — — ( 61 ) — ( 61 )
+Added: Actuarial gain on pension liability adjustment — — — 35 — 35
Stock-based compensation — — 24,036 — — 24,036
1 unchanged sentence
Issuance of common stock upon exercise of stock options 60 — 108 — — 108
+Added: Repurchase of common stock ( 3,108 ) ( 3 ) ( 13,624 ) — — ( 13,627 )
Issuance of common stock for 401K match 728 1 2,062 — — 2,063
3 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: Telos Corporation, together with its subsidiaries (collectively, the "Company" or "Telos" or "We" or "Our"), a Maryland corporation, is a leading provider of cyber, cloud and enterprise security solutions for the world's most security-conscious organizations.
−Removed: 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") and Teloworks, Inc.
−Removed: ("Teloworks").
+Added: 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.
+Added: We own all of the issued and outstanding shares of Xacta Corporation and ubIQuity.com, inc.
+Added: (a holding company for Xacta Corporation), and Teloworks, Inc.
+Added: ("Teloworks"), and 100 % ownership interest in Telos Identity Management Solutions, LLC ("Telos ID").
On March 13, 2024, the Board of Directors unanimously approved the dissolution of Telos APAC Pte.
2 unchanged sentences
The dissolution of this subsidiary did not have a material impact on the Company's business, results of operations and financial condition.
−Removed: SIGNIFICANT ACCOUNTING POLICIES
+Added: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Principle of Consolidation
5 unchanged sentences
Basis of Comparison
−Removed: Certain reclassifications have been made to the prior year's consolidated financial statements to conform to the current year's presentation.
−Removed: In the current year, we reclassified sales and marketing expenses and general and administrative expenses, and presented them together as selling, general and administrative ("SG&A") expenses on the consolidated statements of operations.
−Removed: In addition, we presented impairment loss as a separate line item from research and development ("R&D") expenses on the consolidated statements of operations.
−Removed: The reclassifications had no impact on gross profit, total operating expenses or net loss in the consolidated statement of operations.
−Removed: Segment Reporting
−Removed: Operating segments are defined as components of an enterprise for which separate discrete financial information is available and evaluated regularly by the chief operating decision maker ("CODM"), or decision-making group, in deciding how to allocate resources and assess performance.
−Removed: We identified our Chief Executive Officer as the CODM.
−Removed: We operate our business in two reportable and operating segments:
−Removed: Security Solutions and Secure Networks.
−Removed: These segments enable the alignment of our strategies and objectives and provide a framework for the timely and rational allocation of resources within business lines.
−Removed: We eliminate any inter-segment revenues and expenses upon consolidation.
−Removed: See Note 18 – Segment Information for further information.
+Added: Certain prior-period amounts have been reclassified to the current period presentation.
+Added: In the current year, we reclassified "Accrued liabilities" as a separate line item on the consolidated balance sheets from "Accounts payable" and "Other current liabilities".
+Added: In addition, we reclassified "Inventories, net," and presented them as part of "Other current assets" on the consolidated balance sheets.
Use of Estimates
−Removed: Preparing consolidated financial statements in conformity with U.S.
+Added: The preparation of these 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.
2 unchanged sentences
We base our estimates on historical experience, currently available information, and various other assumptions that we believe are reasonable under the circumstances.
−Removed: 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 and impairment of intangible assets and goodwill, restructuring expenses accruals, and contingencies.
+Added: Management evaluates these estimates and assumptions on an ongoing basis, including, but not limited to, those relating to revenue recognition on cost estimation on certain contracts, allowance for credit losses, inventory obsolescence, income taxes including valuation allowance, certain assumptions related to stock-based compensation, fair value measurements, valuation and impairment of intangible assets and goodwill, useful lives and realizability of long-lived assets, restructuring expense accruals and contingencies.
Actual results could differ from those estimates.
5 unchanged sentences
The Company's receivables are primarily due from the U.S.
−Removed: government, or from prime contractors to whom we are subcontractors and the end customer is the U.S.
−Removed: government, and are generally considered collectable from the perspective of the customer's ability to pay.
+Added: federal government, or from prime contractors to whom we are subcontractors and the end customer is the U.S.
+Added: federal government, and are generally considered collectable from the perspective of the customer's ability to pay.
We believe that the credit risk associated with our receivables is limited due to the creditworthiness of our customers.
We maintain an allowance for estimated potential credit losses.
−Removed: Cash and Cash Equivalents
+Added: Cash, Cash Equivalents and Restricted Cash
We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents.
Restricted cash represents funds that are held in our money market account but precluded from use of general business needs through contractual requirements.
−Removed: We report our restricted cash balance within "Other assets" on the consolidated balance sheets, see Note 9 – Other B a lance Sheet Comp onents .
+Added: We report our restricted cash balance within "Other assets" on the consolidated balance sheets, see Note 8 – Other Balance Sheet Components .
Contract Balances
24 unchanged sentences
Net realizable value of inventory is estimated based on the historical obsolescence experience and planned usage.
+Added: If events or changes in circumstances indicate that the use of the inventories have diminished through obsolescence, damage, deterioration or other causes, a loss is recognized in the period in which it occurs.
Inventories are substantially comprised of finished goods purchased for customers, such as off-the-shelf hardware and software, and component computer parts used in connection with system integration services that we perform.
+Added: Deferred Program Expenses
+Added: Deferred program expenses include direct contract costs identifiable with or allocable to a specific contract.
+Added: These costs are capitalized as deferred program expenses when the costs are expected to be recovered over a period of time.
+Added: These costs are amortized using the straight-line method over the expected contract period of performance or recognized upon delivery of the performance obligation.
+Added: If the contract period of performance is beyond twelve months, we classify the cost as long-term and is included within "Other assets" on the consolidated balance sheets.
+Added: Business Combinations
+Added: We evaluate acquisitions to determine whether it is a business combination or an asset acquisition and accounted for under U.S.
+Added: GAAP using the acquisition method in accordance with ASC 805, Business Combinations .
+Added: The Company allocates the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values.
+Added: The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities, if any, is recorded as goodwill.
+Added: The accounting for business combinations requires management to make judgments and estimates of the fair value of assets acquired, including the identification and valuation of intangible assets, as well as liabilities and contingencies assumed.
+Added: Such judgments and estimates directly impact the amount of goodwill recognized in connection with an acquisition.
+Added: Estimating the fair value of acquired assets and assumed liabilities, including intangibles, requires judgment about expected future cash flows, weighted-average cost of capital, discount rates and expected long-term growth rates.
+Added: No business combinations occurred during the years ended December 31, 2025, and 2024.
Property and Equipment
Property and equipment are recorded at cost less accumulated depreciation and amortization.
−Removed: Depreciation is recorded over the assets' estimated useful lives using the straight-line method, which is three to five years for furniture and equipment.
+Added: Depreciation of furniture and equipment has been provided over the estimated useful lives of the respective assets (ranging from three to five years ) using the straight-line method.
Leasehold improvements are amortized over the shorter of their useful life or the remaining terms of the lease.
−Removed: Upon sale or retirement of property and equipment, the costs and related accumulated depreciation and amortization are eliminated from the accounts and any gain or loss on such disposition is reflected in the consolidated statements of operations.
−Removed: For the years ended December 31, 2024, and 2023, such amounts are negligible.
Repairs and maintenance costs are expensed as incurred.
Major renewals and improvements are capitalized and depreciated over their estimated useful lives.
−Removed: We determine if an arrangement is a lease and we account for leases in accordance with ASC Topic 842, "Leases." We entered into contractual arrangements primarily for the use of real estate facilities and certain other equipment.
−Removed: We determine the classification of the lease under these arrangements, if any, at inception based on (1) whether the contract involves the use of a distinct identified asset, (2) whether we obtain the right to substantially all the economic benefits from the use of the asset throughout the period, and (3) whether we have a right to direct the use of the asset.
−Removed: Leased property meeting certain criteria is capitalized at the present value of the related minimum lease payments.
−Removed: Amortization of a finance lease ROU asset is computed using the straight-line method over the lesser of the lease term or the useful life of the related asset.
−Removed: In accordance with ASC 842, we recorded operating lease ROU assets, which represent our right to use an underlying asset for the lease term, and operating lease liabilities, which represent our obligation to make lease payments.
−Removed: Our operating leases are generally for equipment and office spaces.
−Removed: The amount of operating lease liabilities due within 12 months are recorded in other current liabilities, with the remaining operating lease liabilities recorded as non-current liabilities in our consolidated balance sheets based on their contractual due dates.
−Removed: The operating lease ROU assets and liabilities are recognized as of the lease commencement date at the present value of the lease payments over the lease term.
−Removed: On lease arrangements where leases include options to extend the term of the lease, we include the impact of the options on the lease term, when we are reasonably certain that we will exercise such options.
−Removed: Most of our leases do not provide an implicit rate that can readily be determined.
−Removed: Therefore, we use a discount rate based on our incremental borrowing rate on all operating leases.
−Removed: Some of our operating leases contain lease and non-lease components, which we account for as a single component.
−Removed: Operating lease expense is recognized as rent expense on a straight-line basis over the lease term, and recorded within our consolidated statement of operations.
−Removed: The related lease payments on short-term lease arrangements (leases of one year or less) are recognized as expense on a straight-line basis over the lease term.
−Removed: ROU assets are assessed for potential impairment whenever there is evidence that events or changes in circumstances indicate that the carrying value of the asset may not be recoverable and the carrying amount of the assets exceeds its estimated fair value.
−Removed: Software Development Costs
−Removed: We account for development costs of software in accordance with ASC Topic 985-20 ("ASC 985-20"), "Software – Costs of Software to be Sold, Leased, or Marketed" and ASC Topic 350-40 ("ASC 350-40") "Internal Use Software," depending on the intended use of the software being developed.
−Removed: Under ASC 985-20, all costs of developing software prior to establishing its technological feasibility are research and development costs and are expensed as incurred.
−Removed: Once technological feasibility has been established, subsequent costs should be capitalized until the software begins to be marketed or is released to customers, after which the capitalized costs should be amortized and reviewed for impairment.
−Removed: Under ASC 350-40, we capitalize certain software development costs when the preliminary project stage is completed and the software has entered the application development stage.
−Removed: Once substantial testing is complete and the software is ready to be used, capitalization of costs ceases.
−Removed: Capitalized software development costs are amortized on a straight-line basis over the estimated economic life of the application, ranging from two to five years , beginning when the asset is ready for its intended use.
−Removed: ASC 350-40 also requires hosting arrangements that are service contracts to follow the guidance for internal-use software to determine which implementation costs can be capitalized.
−Removed: In accordance with ASC 350-40, (i) capitalized implementation costs are classified in the same balance sheet line item as the amounts prepaid for the related hosting arrangement, (ii) amortization of capitalized implementation costs is presented in the same income statement line item as the service fees for the related hosting arrangement, and (iii) cash flows related to capitalized implementation costs are presented within the same category of cash flow activity as the cash flow for the related hosting arrangements (i.e.
−Removed: operating activity).
−Removed: As of December 31, 2024, and 2023, the net carrying value of the capitalized implementation costs related to hosting arrangements that were incurred during the application development stage aggregated to $ 0.17 million and $ 0.23 million, respectively.
−Removed: These costs are related primarily to the implementation of a new enterprise resource planning system.
−Removed: The Company begins amortizing the capitalized implementation costs after all substantial testing is complete and ready for its intended use, and amortized over the expected term of the arrangement on a straight-line basis.
−Removed: Goodwill and Intangible Assets
+Added: Upon sale or retirement of property and equipment, the costs and related accumulated depreciation and amortization are eliminated from the accounts and any gain or loss on such disposition is reflected in the consolidated statements of operations.
+Added: For the years ended December 31, 2025, and 2024, such amounts are negligible.
Goodwill is recorded for the difference between the aggregate consideration paid for an acquisition and the fair value of net tangible and intangible assets acquired and liabilities assumed.
−Removed: Goodwill is not amortized, but rather tested for potential impairment.
−Removed: We evaluate the impairment of goodwill in accordance with ASC 350, which requires goodwill to be assessed on at least an annual basis, as of December 31 each year, for impairment using a fair value basis.
−Removed: Between annual evaluations, if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount, then impairment must be evaluated.
−Removed: Such circumstances could include, but are not limited to, (1) a significant adverse change in legal factors or business climate, (2) a loss of key contracts or customers, or (3) negative operating performance indicators.
−Removed: The Company performs its goodwill impairment test at the reporting unit level.
+Added: Goodwill is not amortized, but rather tested for potential impairment at the reporting unit level on an annual basis, and more frequently if events or circumstances indicate that the carrying value of the reporting unit may not be recoverable, in accordance with ASC 350.
+Added: Our policy is to perform our annual goodwill impairment evaluation as of December 31 each year.
+Added: During fiscal year 2025, and 2024, we have two reporting units, respectively, for the purpose of testing goodwill for impairment.
+Added: Goodwill is evaluated for impairment either under a qualitative assessment option or a quantitative approach, which depends on the facts and circumstances of a reporting unit.
We may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying value.
4 unchanged sentences
The Company uses industry-accepted valuation models and set criteria that are reviewed and approved by management.
−Removed: The methodology used to assess impairment is a combination of the income approach (i.e., discounted cash flow ("DCF") method) and the market approach (i.e., Comparable Public Company ("CPC") method) to determine the fair value.
+Added: We used the income approach (i.e., discounted cash flow ("DCF") method) to determine the estimated fair value.
In the application of the income approach, the estimated fair value of the reporting unit is determined using a DCF analysis, which requires management's judgment with respect to forecasted revenue streams and operating margins, capital expenditures and the selection and use of an appropriate discount rate commensurate with the risk inherent in each of our reporting unit's current business model.
We utilize the weighted average cost of capital as derived by certain assumptions specific to our facts and circumstances as the discount rate.
−Removed: In the application of the market approach, the CPC method uses value multiples or ratio to the reporting accounting data (such as revenue) in measuring the market's perception of the reporting unit's enterprise value.
−Removed: Value multiples or ratio reflect the trends in growth and performance, and the comparable public companies provide a reasonable basis for comparison to the relative investment characteristic of the business being valued.
−Removed: The Company analyzes the relationship between the comparable companies' performance and applies a control premium based on the multiples of comparable companies.
−Removed: The control premium is management's estimate of how much a market participant would be willing to pay over the fair market value in consideration of benefits that flow from control of the entity.
−Removed: The results of the income and market approaches are weighted to determine the estimated fair value of the reporting unit.
−Removed: The weighting is judgmental and is based on the perceived level of appropriateness of the valuation methodology.
Estimating the fair value involves the use of assumptions and significant judgments that are based on a number of factors, including actual operating results.
2 unchanged sentences
See Note 6 – Goodwill for additional information.
+Added: Intangible Assets
Intangible assets with finite lives are carried at cost, less accumulated amortization.
−Removed: Amortization is computed using the method that best reflects how their economic benefits are utilized or, if a pattern of economic benefits cannot be reliably determined, on a straight-line basis over their estimated useful lives.
+Added: Amortization is computed using the method that best reflects how their economic benefits are utilized or, if a pattern of economic benefits cannot be reliably determined, on a straight-line basis over their estimated useful lives, which is generally over periods ranging from two to eight years.
Impairment of Long-Lived Assets
7 unchanged sentences
There are no changes in the estimated useful lives of long-lived assets for the periods presented.
+Added: Software Development Costs
+Added: We account for development costs of software in accordance with ASC Topic 985-20 ("ASC 985-20"), "Software – Costs of Software to be Sold, Leased, or Marketed" and ASC Topic 350-40 ("ASC 350-40") "Internal Use Software," depending on the intended use of the software being developed.
+Added: Under ASC 985-20, all costs of developing software prior to establishing its technological feasibility are research and development costs and are expensed as incurred.
+Added: Once technological feasibility has been established, subsequent costs should be capitalized until the software begins to be marketed or is released to customers, after which the capitalized costs should be amortized and reviewed for impairment.
+Added: Under ASC 350-40, we capitalize certain software development costs when the preliminary project stage is completed and the software has entered the application development stage.
+Added: Once substantial testing is complete and the software is ready to be used, capitalization of costs ceases.
+Added: Capitalized software development costs are amortized on a straight-line basis over the remaining estimated economic life of the software, ranging from two to five years , beginning when the asset is ready for its intended use.
+Added: If the estimate of useful economic life is changed, the remaining carrying amount of the asset is amortized prospectively over the revised remaining economic life.
+Added: ASC 350-40 also requires hosting arrangements that are service contracts to follow the guidance for internal-use software to determine which implementation costs can be capitalized.
+Added: In accordance with ASC 350-40, (i) capitalized implementation costs are classified in the same balance sheet line item as the amounts prepaid for the related hosting arrangement, (ii) amortization of capitalized implementation costs is presented in the same income statement line item as the service fees for the related hosting arrangement, and (iii) cash flows related to capitalized implementation costs are presented within the same category of cash flow activity as the cash flow for the related hosting arrangements (i.e.
+Added: operating activity).
+Added: As of December 31, 2025, and 2024, the net carrying value of the capitalized implementation costs related to hosting arrangements that were incurred during the application development stage aggregated to $ 0.1 million and $ 0.2 million, respectively.
+Added: These costs are related primarily to the implementation of a new enterprise resource planning system.
+Added: The Company begins amortizing the capitalized implementation costs after all substantial testing is complete and ready for its intended use, and amortized over the expected term of the arrangement on a straight-line basis.
+Added: We determine if an arrangement is a lease and we account for leases in accordance with ASC Topic 842, "Leases." We entered into contractual arrangements primarily for the use of real estate facilities and certain other equipment.
+Added: We determine the classification of the lease under these arrangements, if any, at inception based on (1) whether the contract involves the use of a distinct identified asset, (2) whether we obtain the right to substantially all the economic benefits from the use of the asset throughout the period, and (3) whether we have a right to direct the use of the asset.
+Added: Leased property meeting certain criteria is capitalized at the present value of the related minimum lease payments.
+Added: Amortization of a finance lease ROU asset is computed using the straight-line method over the lesser of the lease term or the useful life of the related asset.
+Added: In accordance with ASC 842, we recorded operating lease ROU assets, which represent our right to use an underlying asset for the lease term, and operating lease liabilities, which represent our obligation to make lease payments.
+Added: Our operating leases are generally for equipment and office spaces.
+Added: The amount of operating lease liabilities due within 12 months are recorded in other current liabilities, with the remaining operating lease liabilities recorded as non-current liabilities in our consolidated balance sheets based on their contractual due dates.
+Added: The operating lease ROU assets and liabilities are recognized as of the lease commencement date at the present value of the lease payments over the lease term.
+Added: On lease arrangements where leases include options to extend the term of the lease, we include the impact of the options on the lease term, when we are reasonably certain that we will exercise such options.
+Added: Most of our leases do not provide an implicit rate that can readily be determined.
+Added: Therefore, we use a discount rate based on our incremental borrowing rate on all operating leases.
+Added: Some of our operating leases contain lease and non-lease components, which we account for as a single component.
+Added: Operating lease expense is recognized as rent expense on a straight-line basis over the lease term, and recorded within our consolidated statement of operations.
+Added: The related lease payments on short-term lease arrangements (leases of one year or less) are recognized as expense on a straight-line basis over the lease term.
+Added: ROU assets are evaluated for impairment in a manner consistent with the treatment of other long-lived assets.
+Added: ROU assets are assessed for potential impairment whenever there is evidence that events or changes in circumstances indicate that the carrying value of the asset may not be recoverable and the carrying amount of the assets exceeds its estimated fair value.
Fair Value Measurements
8 unchanged sentences
See Note 8 – Other Balance Sheet Components for further details on investment.
+Added: Accrued Liabilities
+Added: Accrued liabilities represents incurred expenses but not yet invoiced or paid by the Company.
+Added: These include, but not limited to, accruals related to projects, fees, taxes, employee benefits, restructuring expenses, and other services.
Research and Development
Research and development expenses consist primarily of employee-related expenses (such as salaries, taxes, benefits and stock-based compensation), allocated overhead costs and outside services costs related to the development and improvement of the Company's software.
−Removed: Research and development costs are generally expensed as incurred, except for costs incurred in connection with the development of software that qualify for the capitalization as described in our software development costs policy.
−Removed: Amortization of capitalized software development costs, not charged under cost of sales, are also reported as part of research and development expenses.
+Added: Research and development costs are generally expensed as incurred, except for costs incurred in connection with the development of software that qualify for capitalization as described in our software development costs policy.
+Added: Amortization of capitalized software development costs, not charged under cost of sales, is also reported as part of research and development expenses.
Selling, General and Administrative Expenses
13 unchanged sentences
We are also required to assess at each reporting date whether it is reasonably possible that any significant increases or decreases to our unrecognized tax benefits will occur during the next 12 months.
−Removed: Business Combinations
−Removed: We evaluate acquisitions to determine whether it is a business combination or an asset acquisition and accounted for under U.S.
−Removed: GAAP using the acquisition method in accordance with ASC 805, Business Combinations .
−Removed: The Company allocates the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values.
−Removed: The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities, if any, is recorded as goodwill.
−Removed: The accounting for business combinations requires management to make judgments and estimates of the fair value of assets acquired, including the identification and valuation of intangible assets, as well as liabilities and contingencies assumed.
−Removed: Such judgments and estimates directly impact the amount of goodwill recognized in connection with an acquisition.
−Removed: Estimating the fair value of acquired assets and assumed liabilities, including intangibles, requires judgment about expected future cash flows, weighted-average cost of capital, discount rates and expected long-term growth rates.
−Removed: No business combinations occurred during the years ended December 31, 2024, and 2023.
+Added: On July 4, 2025, the OBBBA was enacted into law, including significant amendments to the Internal Revenue Code.
+Added: The OBBBA imposes various changes to U.S.
+Added: federal income tax regulations, such as restoring bonus depreciation, and removing the requirement to capitalize and amortize domestic research and development expenditures.
+Added: The OBBBA also included certain modifications to the Inflation Reduction Act of 2022, including the repeal or acceleration of the sunsetting of certain tax credits and the elimination of certain penalties for violations of certain regulatory credit programs.
+Added: The legislation has multiple effective dates, with certain provisions effective in 2025 and other implemented through 2027.
+Added: The enactment of these provisions did not have a material impact on our audited consolidated financial statements.
Stock-Based Compensation
2 unchanged sentences
The stock options granted under the 2016 LTIP expire no more than 10 years after the date of grant.
−Removed: The restricted stock units granted are time-based ("Service-Based RSU" or "RSU") and performance-based ("Performance-Based RSU" or "PSU").
−Removed: The Company issues new shares of common stock upon vesting of the restricted stock units under this plan.
−Removed: • Service-Based RSUs granted to eligible employees as an incentive generally vest in installments over a period of up to three years from the date of grant.
+Added: The Company has granted stock options, restricted stock units with time-based vesting ("RSUs"), and restricted stock units with performance-based vesting ("PSUs").
+Added: 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.
+Added: • RSUs vest in installments over a period of up to three years from the date of grant.
The grant date fair value per share is equal to the closing stock price on the date of grant.
−Removed: • Performance-Based RSUs vest upon the achievement of a defined performance target during a defined performance period from the date of grant, or market conditions for its common stock, or certain operational milestone over a prescribed period.
+Added: • PSUs 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.
The fair value per share of these PSUs is equal to the closing stock price on the date of the grant, or the fair value of the award on the grant date as determined through an independent valuation for PSUs with market conditions.
−Removed: In order to reflect the substantive characteristics of these market condition awards, the Company employs a Monte Carlo simulation valuation model to estimate the fair value for each tranche of the grant and corresponding requisite service period of the award.
−Removed: Monte Carlo approaches are a class of computational algorithms that rely on repeated random sampling to compute their results.
−Removed: This approach allows the calculation of the value of such PSUs based on a large number of possible stock price path scenarios.
−Removed: The risk-free rate is based on the U.S.
−Removed: treasury zero-coupon issues in effect at the time of grant over the performance period.
−Removed: The expense for these PSUs is recognized over the derived service period as determined through the Monte Carlo simulation model.
−Removed: 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, including the weighting and vesting schedule of RSUs and the performance conditions applicable to the PSUs.
+Added: For the Company's stock-based compensation awards subject to market conditions, the grant date fair value per share is based on a Monte Carlo simulation method.
The Company estimates the fair value of stock options on the date of the grant using an option pricing model.
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These considerations directly affect the amount of compensation expense that will ultimately be recognized.
−Removed: We recognize these stock-based payment transactions when services from the employees, directors and other eligible service providers are received and recognize a corresponding increase in additional paid-in capital in our consolidated balance sheets.
−Removed: The measurement objective for these equity awards is the estimated fair value at the date of grant of the equity instruments that we are obligated to issue when employees, directors and other eligible service providers have rendered the requisite service and satisfied any other conditions necessary to earn the right to benefit from the instruments.
The stock-based compensation expense for an award is recognized ratably over the requisite service period, which is generally the vesting period during which an employee is required to provide service in exchange for an award.
2 unchanged sentences
If the performance condition is achieved prior to the completion of the requisite service period, any unrecognized compensation expense will be recognized in the period the performance condition is achieved.
−Removed: Compensation expense for PSUs with market conditions is recognized based on the grant-date fair value calculated using the Monte Carlo model, as described above, or sooner if the market condition is achieved.
+Added: Compensation expense for PSUs with market conditions is recognized based on the grant date fair value calculated over the derived service period as determined through the Monte Carlo simulation model, or sooner if the market condition is achieved.
Previously recognized expense for awards with market conditions will never be reversed subsequent to completion of the derived service period even if the market conditions are never achieved.
1 unchanged sentence
Stock-based compensation expense is recognized as part of the cost of sales and operating expenses in our consolidated statements of operations.
−Removed: The stock-based payment transactions are recognized in accordance with ASC 718, "Compensation - Stock Compensation" and ASU 2018-07, "Compensation - Stock Compensation (Topic 718):
−Removed: Improvements to Non-employee Share-Based Payment Accounting."
+Added: The Company records stock-based compensation related to accrued compensation in which it intends to settle in shares of the Company's common stock.
+Added: However, it is the Company's discretion whether this compensation will ultimately be paid in stock or cash, as it has the right to dictate the form of these payments up until the date they are paid.
Net (Loss) Earnings per Share
5 unchanged sentences
For this subsidiary, the translation of its foreign currency into U.S.
−Removed: dollars is performed for assets and liabilities using current foreign currency exchange rates in effect at the balance sheet date and for revenue and expense accounts using average foreign currency exchange rates during the periods presented.
+Added: dollars is performed for assets and liabilities using current foreign currency exchange rates in effect at the balance sheet date and for revenue and expense accounts using average foreign currency exchange rate during the periods presented.
Translation gains and losses are included in stockholders' equity as a component of accumulated other comprehensive (loss) income.
6 unchanged sentences
2022 Restructuring Plan
−Removed: 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.
+Added: 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.
−Removed: In connection with this restructuring plan, we incurred restructuring-related costs, including employee severance and related benefit costs.
−Removed: Employee severance and related benefit costs include cash payments, outplacement services and continuing health insurance coverage.
−Removed: Severance costs pursuant to ongoing-benefit arrangements are recognized when probable and reasonably estimated.
−Removed: Other related costs include external consulting and advisory fees related to implementing the restructuring plan.
−Removed: These costs are recognized at fair value in the period in which the costs are incurred.
−Removed: The Company incurred a cumulative amount of $ 3.9 million of restructuring expenses , which is the total expected cost of this restructuring plan.
−Removed: The actions under this restructuring plan were substantially completed in fiscal year 2023 and were fully paid in the third quarter of 2024.
+Added: The actions under the 2022 restructuring plan were substantially completed in fiscal year 2023, and were fully paid in the third quarter of 2024.
+Added: Total restructuring expenses incurred under the 2022 restructuring plan were $ 3.9 million.
2024 Restructuring Plan
−Removed: Beginning in the third quarter of 2024, the Company undertook another restructuring action in an effort to optimize its strategic priorities and cost structure.
+Added: 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.
−Removed: The restructuring charges under the 2024 restructuring plan include severance and related benefit costs.
−Removed: 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.
−Removed: As of December 31, 2024, the cumulative amount of incurred severance and benefit costs related to the 2024 restructuring plan was $ 1.3 million, of which $ 0.2 million was allocated to the Security Solutions segment and $ 0.1 million was allocated to the Secure Networks segment.
−Removed: The 2024 restructuring actions were substantially completed in fiscal year 2024 and will be fully paid in early fiscal year 2025.
+Added: The cumulative amount of incurred severance and benefit costs related to the 2024 restructuring plan was $ 1.3 million, of which $ 0.2 million was allocated to the Security Solutions segment and $ 0.1 million was allocated to the Secure Networks segment.
+Added: The 2024 restructuring actions were substantially completed in fiscal year 2024, and were fully paid in early fiscal year 2025.
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 consolidated statement of operations.
−Removed: Restructuring Expenses and Impairment Loss
+Added: 2025 Restructuring Plan
+Added: In the fourth quarter of 2025, the Company committed to another restructuring plan as part of its efforts to streamline operations and to align people, roles and projects to our strategic priorities ("2025 restructuring").
+Added: The 2025 restructuring plan resulted in a workforce reduction and certain inventory write-offs.
+Added: During the year-ended December 31, 2025, the Company recorded approximately $ 1.5 million of restructuring related charges, the majority of which relates to employee severance and benefit charges.
+Added: Of this amount, $ 0.4 million was allocated to the Security Solutions segment and $ 0.1 million was allocated to the Secure Networks segment.
+Added: Summary of Restructuring Expenses and Impairment Loss
Statements of Operations For the Year Ended December 31,
(in thousands)
−Removed: 2022 Restructuring Plan:
−Removed: Severance and related benefit costs (adjustments) SG&A $ ( 10 ) $ ( 168 )
−Removed: Other related costs SG&A — 1,300
−Removed: 2024 Restructuring Plan:
Severance and related benefit costs Cost of sales $ 444 $ 341
+Added: Other related costs (1)
+Added: Cost of sales 50 —
Severance and related benefit costs R&D, SG&A 1,007 929
3 unchanged sentences
Total restructuring expenses and impairment loss $ 1,501 $ 7,643
−Removed: (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 ).
+Added: (1) Other related costs consist of a non-cash inventory write-off related to the implementation of the 2025 restructuring plan.
+Added: (2) The recoverability evaluation of intangible assets in 2024 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 7 - Intangible Assets, Net ).
At each reporting date, the Company evaluates its restructuring expense accrual to determine if the liabilities reported are still appropriate.
1 unchanged sentence
Summary of Changes in Restructuring Expenses Accrual
−Removed: Severance and related benefit costs (1)
+Added: For the Year Ended December 31,
(in thousands)
−Removed: Balance at December 31, 2023 $ 400
−Removed: Expenses (adjustments) 1,270
+Added: Severance and related benefit costs (1) :
+Added: Balance at beginning of year $ 37 $ 400
+Added: Expenses, excluding non-cash costs 1,451 1,270
Cash payments ( 37 ) ( 1,633 )
−Removed: Balance at December 31, 2024 $ 37
−Removed: (1) Restructuring-related liabilities are reported as part of "Other current liabilities" in the Company's consolidated balance sheets, see Note 9 - Other Balance Sheet Components for further details.
−Removed: Recently Accounting Pronouncements - Adopted
−Removed: In June 2022, the FASB issued ASU No.
−Removed: 2022-03, "Fair Value Measurement (Topic 820):
−Removed: Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions," which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value.
−Removed: This standard was effective for reporting periods beginning December 15, 2023.
−Removed: The adoption of this ASU did not have a material impact on our consolidated financial position, results of operations, and cash flows.
−Removed: In November 2023, the FASB issued ASU No.
−Removed: 2023-07, "Segment Reporting (Topic 280):
−Removed: Improvements to Reportable Segment Disclosures," which requires improvement on reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.
−Removed: The standard was effective for fiscal year beginning after December 15, 2023, and requires application on a retrospective basis, and for interim periods within fiscal year beginning after December 15, 2024.
−Removed: We adopted this standard during the fourth quarter of fiscal year ended December 31, 2024, and disclosed the significant segment expense categories that are regularly provided to the CODM on an annual basis, as well as disclosing how segment measures of profit or loss are used by the CODM.
−Removed: The adoption of this standard only affected our disclosures, with no impact on our consolidated financial statements.
−Removed: Recently Accounting Pronouncements - Not Yet Adopted
−Removed: From time to time, new accounting standards are issued by the FASB or other standard-setting bodies, and are adopted by the Company as of the specified accounting date.
−Removed: Unless disclosed below, there are no issued standards not yet effective that are deemed applicable to the Company's consolidated financial statements.
+Added: Balance at end of year $ 1,451 $ 37
+Added: (1) Restructuring expenses accrual is reported as part of "Accrued liabilities" in the Company's consolidated balance sheets, see Note 8 - Other Balance Sheet Components for further details.
+Added: Recent Accounting Pronouncements
In December 2023, the FASB issued ASU No.
1 unchanged sentence
Improvements to Income Tax Disclosure," which requires public entities, on an annual basis, (1) disclose specific categories in the rate reconciliation, and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5% of the amount computed by multiplying pretax income/(loss) by the applicable statutory income tax rate).
−Removed: This ASU will be effective, for public entities, for fiscal years beginning after December 15, 2024, with early adoption permitted.
−Removed: We are currently assessing the impact of the adoption of this ASU on our consolidated financial position, results of operations, and cash flows.
+Added: This ASU was effective, for public entities, for fiscal years beginning after December 15, 2024, with early adoption permitted.
+Added: The Company adopted the enhanced income taxes disclosure requirement in December 2025, on a retrospective basis (see Note 14 – Income Taxes ).
+Added: The adoption of this standard only affected our disclosures, with no impact on our consolidated financial statements.
In November 2024, the FASB issued ASU 2024-03, "Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Topic 220):
3 unchanged sentences
We are in the process of assessing the impact of the adoption of this ASU on our consolidated financial statements.
+Added: In July 2025, the FASB issued ASU 2025-05, “Financial Instruments – Credit Losses (Topic 326):
+Added: Measurement of Credit Losses for Accounts Receivables and Contract Assets.” This standard provides simplified guidance on measuring credit losses for accounts receivable and contract assets.
+Added: The update introduces a practical expedient and an accounting policy election to ease the process.
+Added: All entities can elect the practical expedient to assume that the current economic conditions at the balance sheet date will remain constant through the life of the current receivables and contract assets.
+Added: Entities that elect the practical expedient and the accounting policy election should apply the amendments in this ASU prospectively.
+Added: The amendments will be effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted.
+Added: We are currently assessing the impact of adopting this ASU on our consolidated financial statements.
+Added: In September 2025, the FASB issued ASU 2025-06, "Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40):
+Added: Targeted Improvements to the Accounting of Internal-Use Software." This standard provides a simplified, consistent way to track expenses related to software developed for internal use.
+Added: The amendments in this standard removed all references to project stages;
+Added: instead, a company can capitalize software costs once both conditions are met:
+Added: the entity's management has authorized and committed to funding the project, and it is probable that the project will be completed and the software will be used as intended.
+Added: The amendments will be effective for annual reporting periods, including interim periods within those years, beginning after December 15, 2027, with early adoption permitted.
+Added: We are currently assessing the impact of adopting this ASU on our consolidated financial statements.
+Added: In December 2025, the FASB issued ASU 2025-11, "Interim Reporting (Topic 270):
+Added: Narrow-Scope Improvements," which was intended to improve the navigability of the guidance in ASC 270 and clarify when it applies.
+Added: Public entities are required to adopt the guidance for interim reporting periods within annual reporting period beginning after December 15, 2027, with early adoption permitted.
+Added: We are currently assessing the impact of adopting this ASU on our consolidated financial statements.
+Added: In December 2025, the FASB issued ASU 2025-12, "Codification Improvement." This ASU includes a number of improvements that span a wide range of topics, which includes amendments on the following provisions, among other things, (1) clarify diluted EPS calculation when a loss from continuing operation exists;
+Added: (2) revising the calculation of the reference amount for beneficial interests to prevent double counting credit losses;
+Added: (3) clarify the permissible methods to account for treasury stock retirements;
+Added: and (4) clarify the guidance for transfers of receivables from contracts with customers.
+Added: The standard will be effective for annual reporting periods beginning after December 31, 2026, and interim reporting periods within those annual reporting periods, which early adoption permitted.
+Added: We are currently assessing the impact of adopting this ASU on our consolidated financial statements.
+Added: From time to time, new accounting standards are issued by the FASB or other standard-setting bodies and are adopted by the Company as of the specified accounting date.
+Added: Unless otherwise discussed, the Company believes that issued standards not yet effective will not have a material effect on the Company's consolidated financial statements.
REVENUE RECOGNITION
We recognize 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.
−Removed: The Company follows the five-step model for recognizing revenue that includes identifying the contract with the customer, determining the performance obligation(s), determining the transaction price, allocating the transaction price to the performance obligation(s), and recognizing revenue as the performance obligations are satisfied.
Timing of the satisfaction of performance obligations varies across our businesses due to our diverse product and service mix, customer base, and contractual terms.
−Removed: Significant judgment can be required in determining certain performance obligations, and these determinations could change the amount of revenue and profit recorded in a given period.
Our contracts may have a single performance obligation or multiple performance obligations.
1 unchanged sentence
Our contracts with the U.S.
−Removed: government are generally subject to the Federal Acquisition Regulation and the price is typically based on estimated or actual costs plus a reasonable profit margin.
+Added: federal government are generally subject to the Federal Acquisition Regulation ("FAR") and the price is typically based on estimated or actual costs plus a reasonable profit margin.
As such, the standalone selling price of products or services in our contracts with the U.S.
−Removed: government is typically equal to the selling price stated in the contract.
−Removed: government contracts with multiple performance obligations, the standalone selling price is the observable price of a good or service when Telos sells that good or service separately in similar circumstances and to similar customers.
+Added: federal government is typically equal to the selling price stated in the contract.
+Added: federal government contracts with multiple performance obligations, the standalone selling price is the observable price of a good or service when the Company sells that good or service separately in similar circumstances and to similar customers.
Contracts are routinely and often modified to account for changes in contract requirements, specifications, quantities, or price.
1 unchanged sentence
Generally, modifications are not distinct from the existing contract due to the significant interrelatedness of the performance obligations and are therefore accounted for as an adjustment to the existing contract, and recognized as a cumulative adjustment to revenue (as either an increase or reduction of revenue) based on the modification's effect on progress toward completion of a performance obligation.
−Removed: 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.
+Added: If contract modifications add distinct goods or services and increases the contract value by an amount that reflects the standalone selling price, those modifications are accounted for as separate contracts.
+Added: The majority of our revenue is recognized over time, as control is periodically transferred to our customers, who receive and consume benefits as we perform.
Revenue transferred to customers over time accounted for 72.0 % and 81.3 % of our revenue for the years ended December 31, 2025, and 2024, respectively.
−Removed: 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.
+Added: For performance obligations in which control does not periodically transfer to the customer, we recognize revenue at the point in time in which each performance obligation is fully satisfied.
+Added: This coincides with the point in time the customer obtains control of the transferred 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.
+Added: Revenue transferred to customers at a point in time accounted for 28.0 % and 18.7 % of our revenue for the years ended December 31, 2025, and 2024, respectively.
+Added: The change in revenue mix for the year ended December 31, 2025, as compared to the prior year, was primarily driven by an increase in product sales volume from a successful ramp-up of a significant program.
+Added: We perform under various types 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.
Revenue is recognized using a variety of input and output methods that approximate the progress towards complete satisfaction of the performance obligation;
3 unchanged sentences
This continuous transfer of control to the customer is supported by clauses in our contracts with U.S.
−Removed: government customers whereby the customer may terminate a contract for convenience and then pay for costs incurred plus a profit, at which time the customer would take control of any work in process.
−Removed: government contracts where we perform as a subcontractor and our order includes similar FAR provisions as the prime contractor's order from the U.S.
−Removed: government, continuous transfer of control is likewise supported by such provisions.
+Added: federal government customers whereby the customer may terminate a contract for convenience and then pay for costs incurred plus a profit, at which time the customer would take control of any work in process.
+Added: federal government contracts where we perform as a subcontractor and our order includes similar FAR provisions as the prime contractor's order from the U.S.
+Added: federal government, continuous transfer of control is likewise supported by such provisions.
For other non-U.S.
−Removed: government customers, continuous transfer of control to such customers is also supported due to general terms in our contracts and rights to recover damages, which would include, among other potential damages, the right to payment for our work performed to date plus a reasonable profit.
−Removed: For performance obligations in which control does not continuously transfer to the customer, we recognize revenue at the point in time in which each performance obligation is fully satisfied.
−Removed: This coincides with the point in time the customer obtains control of the transferred 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.
−Removed: Revenue transferred to customers at a point in time accounted for 19 % and 16 % of our revenue for the years ended December 31, 2024, and 2023, respectively.
+Added: federal government customers, continuous transfer of control to such customers is also supported due to general terms in our contracts and rights to recover damages, which would include, among other potential damages, the right to payment for our work performed to date plus a reasonable profit.
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.
13 unchanged sentences
Revenue and profit in future periods of contract performance are recognized using the adjusted estimate.
−Removed: Our contracts may include various types of variable consideration, such as claims (for instance, indirect rate or other equitable adjustments) or incentive fees.
−Removed: We include estimated amounts in the transaction price based on all of the information available to us, including historical information and future estimations, and to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when any uncertainty associated with the variable consideration is resolved.
−Removed: We have revised and re-submitted several years of incurred cost submissions reflecting certain indirect rate structure changes as a result of regular Defense Contract Audit Agency audits of incurred cost submissions.
−Removed: This resulted in signed final rate agreement letters through fiscal year 2022.
−Removed: We evaluated the resulting changes to revenue under the applicable cost-plus fixed-fee contracts, as variable consideration, and determined the most likely amount to which we expect to be entitled, to the extent that no constraint exists that would preclude recognizing this revenue or result in a significant reversal of cumulative revenue recognized.
−Removed: We included these estimated amounts of variable consideration in the transaction price and as performance on these contracts is complete, if any.
−Removed: An immaterial revenue adjustment was recorded during fiscal years ended December 31, 2024, and 2023.
+Added: Our contracts may include various types of variable consideration 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.
+Added: 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.
+Added: No revenue adjustment was recorded during the year ended December 31, 2025.
+Added: An immaterial revenue adjustment was recorded during fiscal year ended December 31, 2024.
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.
−Removed: No contract loss was recorded during the year ended December 31, 2024.
We recorded an immaterial contract loss during the year ended December 31, 2025.
+Added: No contract loss was recorded during the year ended December 31, 2024.
Historically, most of our contracts do not include award or incentive fees.
12 unchanged sentences
regardless of where the services are performed.
−Removed: Notably, most of our revenues are generated from U.S.
+Added: Substantially all of our revenues are generated from U.S.
customers, while international customers are de minimis;
15 unchanged sentences
Total revenue $ 164,805 $ 108,272
+Added: A majority of the Company's revenue was derived under prime contracts and subcontracts with agencies and departments of the U.S.
+Added: federal government.
+Added: No other customer accounted for 10% or more of the Company's revenue during fiscal years ended December 31, 2025, and 2024.
Revenue Concentrations Greater than 10% of Total Revenue
For the Year Ended December 31,
−Removed: Department of Defense ("DoD")
+Added: (in thousands)
+Added: Federal government:
Security Solutions segment $ 134,839 $ 63,495
Secure Networks segment 15,199 31,456
−Removed: Department of Homeland Security ("DHS")
−Removed: Security Solutions segment 15 % N/A
+Added: Total $ 150,038 $ 94,951
Contract Balances
6 unchanged sentences
Contract assets Accounts receivable, net 663 3,746
−Removed: Contract liabilities - current Contract liabilities 6,838 6,728
+Added: Contract liabilities – current Contract liabilities – current portion 11,223 6,838
+Added: Contract liabilities – non-current Contract liabilities – non-current portion 1,124 —
(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.
−Removed: For the years ended December 31, 2024, and 2023, the amount of revenue recognized during the year that was included in the opening contract liabilities balance was $ 5.9 million and $ 5.4 million, respectively.
+Added: Revenue recognized for the years ended December 31, 2025, and 2024, which was included in the contract liabilities balance at December 31, 2024, and 2023, was $ 5.5 million and $ 5.9 million, respectively.
As of December 31, 2025, we had approximately $ 68.8 million of remaining performance obligations, which we also refer to as funded backlog.
9 unchanged sentences
Accounts receivable, net $ 17,000 $ 19,172
−Removed: As our primary customer base includes agencies of the U.S.
−Removed: government, we have a concentration of credit risk associated with our accounts receivable, as 88 % and 91 % of our billed and unbilled accounts receivable, as of December 31, 2024, and 2023, respectively, were directly with U.S.
−Removed: government customers.
+Added: Because our primary customer base includes agencies of the U.S.
+Added: federal government, we have a concentration of credit risk associated with our accounts receivable, as 85.4 % and 87.8 % of our billed and unbilled accounts receivable, as of December 31, 2025, and 2024, respectively, were with U.S.
+Added: federal government customers.
While we acknowledge the potentially material and adverse risk of such a significant concentration of credit risk, our past experience of collecting substantially all of such receivables provides us with an informed basis that such risk, if any, is manageable.
10 unchanged sentences
(2) Accounts receivable written-off
−Removed: On July 15, 2016, the Company entered into an accounts receivable purchase agreement under which the Company could sell certain accounts receivable (balance not to exceed $ 10.0 million) to a third party, or the "Factor," without recourse to the Company, with an availability period through June 30, 2022, and from year to year thereafter unless terminated in writing by the parties.
+Added: On July 15, 2016, we entered into an accounts receivable purchase agreement (the "Factoring Agreement") with a third party (the "Factor") on a non-recourse basis.
+Added: This agreement was terminated on December 10, 2025.
There were no accounts receivable sold during 2025 and 2024, respectively.
−Removed: As of December 31, 2024, and 2023, there were no outstanding sold accounts receivable.
−Removed: INVENTORIES, NET
−Removed: Details of Inventories, Net
−Removed: As of December 31,
−Removed: (in thousands)
−Removed: Gross inventory $ 1,916 $ 2,179
−Removed: Allowance for inventory obsolescence ( 133 ) ( 759 )
−Removed: Inventories, net $ 1,783 $ 1,420
+Added: On March 10, 2026, we entered into a new Factoring Agreement with the same Factor.
+Added: Under the agreement, we may offer eligible accounts receivable arising from our U.S.
+Added: government prime contracts or subcontracts for sale (collectively, the "Purchased Receivables") to the Factor, and the Factor may purchase such receivables at its sole discretion.
+Added: The total amount of Purchased Receivables is subject to a maximum limit of $ 10.0 million of outstanding Purchased Receivables at any given time.
+Added: This new Factoring Agreement has an initial term expiring on March 10, 2027 and automatically renews annually thereafter unless terminated in writing by the parties.
PROPERTY AND EQUIPMENT, NET
10 unchanged sentences
Depreciation and amortization $ 1,731 $ 1,646
−Removed: As discussed in Note 2 – Significant Accounting Policies , we reported two operating and reportable segments:
+Added: GOODWILL, NET
+Added: As discussed in Note 16 – Segment Information , we reported two operating and reportable segments:
Security Solutions and Secure Networks.
The two operating and reportable segments represent the reporting units for purposes of testing goodwill.
−Removed: The goodwill balance was $ 17.9 million as of December 31, 2024, and 2023, of which $ 3.0 million is allocated to the Security Solutions segment and $ 14.9 million is allocated to the Secure Networks segment.
+Added: The following table reflects changes in the carrying amount of goodwill during the period by reportable segments.
+Added: Changes in the Carrying Amount of Goodwill by Reportable Segments
+Added: Security Solutions Secure Networks Total
+Added: (in thousands)
+Added: Balance at December 31, 2024 $ 3,006 $ 14,916 $ 17,922
+Added: Impairment losses — ( 14,916 ) ( 14,916 )
+Added: Balance at December 31, 2025 $ 3,006 $ — $ 3,006
+Added: Details of Goodwill, Net
+Added: As of December 31,
+Added: (in thousands)
+Added: Gross $ 17,922 $ 17,922
+Added: Accumulated impairment losses ( 14,916 ) —
+Added: Goodwill, net $ 3,006 $ 17,922
The net assets attributable to the reporting units are determined based upon the estimated assets and liabilities attributable to the reporting units in deriving its free cash flows.
−Removed: For fiscal year 2024, we performed a qualitative assessment of our reporting units and identified that it is more likely than not that the estimated fair value of the reporting units exceeds their carrying value and thus, we did not proceed to the two-step goodwill impairment test.
For fiscal year 2025, we performed a qualitative assessment of our reporting units and identified that it is more likely than not that the estimated fair value of our Security Solutions reporting unit exceeded its carrying value.
−Removed: In contrast, based on the initial qualitative assessment of our Secure Networks reporting unit, we determined that it is not more likely than not that the fair value of this reporting unit exceeds its carrying value, therefore we performed a quantitative impairment test.
−Removed: Based on the quantitative assessment of our Secure Networks reporting unit as of December 31, 2023, the estimated fair value exceeded its carrying value.
−Removed: Based on the results of our annual impairment test of goodwill performed, the estimated fair value of our respective reporting units exceeded their respective carrying value, and no impairment charges were taken during the years ended December 31, 2024, and 2023.
+Added: Based on the initial qualitative assessment of our Secure Networks reporting unit, we determined that it is not more likely than not that the fair value of this reporting unit exceeds its carrying value, and therefore we performed a quantitative impairment test.
+Added: In the most recent annual impairment test, the fair value of the Secure Networks reporting unit was estimated using the result of the income approach.
+Added: The income approach applied requires significant judgments, including estimation of future discounted cash flows, which is dependent on internally-developed forecasts of revenue and profitability of the existing backlog, and determination of our weighted average cost of capital, which is risk-adjusted to reflect the specific risk profile of the reporting unit being tested.
+Added: As a result of our fiscal year 2025 quantitative assessment of our Secure Networks reporting unit, we estimated that its carrying value exceeded its fair value.
+Added: The goodwill impairment was primarily driven by the continued contraction of Secure Networks' backlog in 2025.
+Added: Accordingly, we recorded a non-cash goodwill impairment of $ 14.9 million, representing a full goodwill impairment for Secure Networks.
+Added: The impairment charge on goodwill was recorded on our consolidated statements of operations for the year ended December 31, 2025.
+Added: For fiscal year 2024, we performed a qualitative assessment of our reporting units and identified that it is more likely than not that the estimated fair value of the reporting units exceeded their carrying value and thus, we did not proceed to the quantitative impairment test.
+Added: Based on the results of our annual impairment test of goodwill performed, the estimated fair value of our respective reporting units exceeded their respective carrying value, and no impairment charges were taken during the year ended December 31, 2024.
INTANGIBLE ASSETS, NET
14 unchanged sentences
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 within the Security Solutions segment, and $ 6.4 million was recorded as "Impairment loss on intangible assets" under operating expenses in the Company's consolidated statements of operations during the fiscal year ended December 31, 2024.
−Removed: In 2023, as a result of the impairment assessment, the Company identified conditions demonstrating impairment of certain software development costs and an impairment charge of $ 0.5 million was reported as "Impairment loss on intangible assets" under operating expenses in the Company's consolidated statements of operations during the fiscal year ended December 31, 2023.
+Added: No similar impairment charge was recorded on software development costs during the fiscal year ended December 31, 2025.
The Company did not recognize any impairment charges on other intangible assets for the periods presented.
20 unchanged sentences
OTHER BALANCE SHEET COMPONENTS
+Added: Details of Other Current Assets
+Added: As of December 31,
+Added: (in thousands)
+Added: Inventories, net $ 996 $ 1,783
+Added: Deferred costs 887 573
+Added: Receivables - other 529 210
+Added: Other 1,250 10
+Added: Other current assets $ 3,662 $ 2,576
Details of Other Assets
1 unchanged sentence
(in thousands)
−Removed: Prepaid expenses – long-term portion $ 4,975 $ 593
Investment (1)
+Added: $ 3,750 $ 3,000
+Added: Prepaid expenses and deferred commission – long-term portion 537 4,975
Restricted cash 140 139
Other assets $ 4,513 $ 8,189
−Removed: (1) In March 2024, the Company made a $ 3.0 million investment in a privately held company via a simple agreement for future equity.
−Removed: The Company elected to apply the fair value option on this investment.
−Removed: The Company believes the fair value option best reflects the economics of the underlying transaction.
+Added: (1) In March 2024, the Company made a $ 3.0 million investment in a privately-held company via a simple agreement for future equity ("SAFE").
+Added: During fiscal year 2024, the Company elected to apply the fair value option ("FVO") for its SAFE investment, as the Company believes the FVO best reflects the economics of the underlying transaction.
+Added: In October 2025, the Company's SAFE investment was settled into 8,964,262 shares of Series A common stock at a settlement price of $ 0.42 per share, based on the valuation cap in the original agreement, resulting in 3.8 % ownership with no significant influence over the privately-held company.
+Added: Upon settlement of the SAFE in fiscal year 2025, the investment was remeasured to its fair value of $ 3.8 million, and a fair value adjustment of $ 0.8 million was recorded within "Other income" on the consolidated statements of operations.
+Added: Effective October 2025, the SAFE investment was settled into equitable shares of the privately-held company's common stock.
+Added: The investment does not have a readily determinable fair value and the Company elected the measurement alternative to value its investment.
The fair value of this investment was based on non-marketable observable inputs, which represent Level 3 measurement within the fair value hierarchy.
−Removed: Changes in the fair value of this investment are recognized within "Other Income (Expenses)" on the consolidated statements of operations, if any.
−Removed: During fiscal year 2024, there were no changes in the fair value of this investment.
−Removed: Details of Accounts Payable and Other Accrued Liabilities
−Removed: As of December 31,
−Removed: (in thousands)
−Removed: Accounts payable $ 1,153 $ 8,307
−Removed: Accrued payables 3,147 5,443
−Removed: Accounts payable and other accrued liabilities $ 4,300 $ 13,750
−Removed: Details of Other Current Liabilities
+Added: The investment was carried at cost less impairment, if any, and subsequently measured to fair value upon observable price changes in an orderly transaction for the identical or similar investments of the same issuer, with any gains or losses recorded within "Other income" on the consolidated statements of operations.
+Added: Details of Accrued Liabilities
As of December 31,
(in thousands)
−Removed: Other accrued liabilities $ 829 $ 1,427
+Added: Accrued project expenses $ 4,289 $ 3,238
Restructuring expenses accrual 1,451 37
Other 1,160 1,174
−Removed: Other current liabilities $ 1,302 $ 2,324
−Removed: DEBT AND OTHER OBLIGATIONS
+Added: Accrued liabilities $ 6,900 $ 4,449
REVOLVING CREDIT FACILITY
−Removed: On December 30, 2022 (the "Closing Date"), 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").
−Removed: 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").
+Added: On December 30, 2022 (the "Closing Date"), 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.
+Added: ("JPMorgan Chase"), as administrative agent for the Lenders (in such capacity, the "Agent").
+Added: The Credit Agreement provided 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.
15 unchanged sentences
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.
−Removed: Other Financing Obligations
−Removed: We entered into a Master Purchase Agreement ("MPA") with a third-party buyer ("Buyer") for $ 9.1 million ("Assignment Price") 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.
−Removed: 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.
−Removed: The DO covers a base period with an option for the customer to exercise three (3) additional 12 -month periods through January 2026.
−Removed: 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.
−Removed: On February 9, 2023, the customer notified us that it would not exercise the first option period under the DO.
−Removed: 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, Buyer and Telos will cooperate in preparing such a claim, which would be filed in Telos' name.
−Removed: During the third quarter of 2024, the Buyer, through Telos, filed a claim against the customer.
−Removed: The Company transferred all the rights, title and interest in the underlying licenses in exchange for the extinguishment of the outstanding financing obligations.
−Removed: 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.
−Removed: 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.
−Removed: The Company reported a gain of $ 1.4 million, which was recorded as "Other income" in the consolidated statements of operations during the year ended December 31, 2023.
−Removed: No gain was reported for the fiscal year ended December 31, 2024.
+Added: On December 30, 2025, the Company entered into a Second Amendment to Credit Agreement (the “Second Amendment”) with JPMorgan Chase.
+Added: The Second Amendment modifies the Credit Agreement to, among other modifications, (a) establish the Applicable Rate for borrowings under the revolving credit facility at 1.25 % for ABR Loans and 2.25 % for Term Benchmark/RFR Loans, with a commitment fee rate of 0.25 %, (b) establish the Revolving Commitment under the Credit Agreement at $ 15,000,000 with an expansion feature of up to $ 15,000,000 of additional credit capacity, (c) extend the Revolving Credit Maturity Date to December 30, 2026, and (d) require the Company and its subsidiaries to maintain at least $ 5,000,000 of unrestricted cash and Permitted Investments with JPMorgan Chase at all times.
+Added: Except as modified by the Second Amendment, the terms and conditions of the Credit Agreement remain in full force and effect.
STOCKHOLDERS' EQUITY
7 unchanged sentences
The repurchase program has no expiration date and may be modified, suspended, or terminated at any time.
−Removed: There were no share repurchases during the year ended December 31, 2024, and 2023.
As of December 31, 2025, there was $ 25.1 million of the authorization remaining for future common stock repurchases under the SRP.
+Added: Share Repurchase Program Activity
+Added: For the Year Ended December 31,
+Added: (in thousands, except per share and share data)
+Added: Amounts paid for shares repurchased (1)
+Added: Number of shares repurchased 3,108,497 —
+Added: Average per share price paid (1)
+Added: (1) Includes commission paid for repurchases on the open market
Accumulated Other Comprehensive Loss
8 unchanged sentences
STOCK-BASED COMPENSATION
−Removed: On May 8, 2023, the Company amended the 2016 LTIP with an additional 6,000,000 shares available for issuance, increasing the total number of shares available to 13,459,913 .
−Removed: Further, on May 21, 2024, the Company authorized an additional 8,500,000 shares to be available under the Amended and Restated 2016 LTIP, increasing the total number of shares available for issuance under the 2016 LTIP to 21,959,913 shares.
−Removed: As of December 31, 2024, approximately 1.0 million shares of our common stock were reserved for future grants under the 2016 LTIP, as amended.
−Removed: The Company records stock-based compensation related to accrued compensation in which it intends to settle in shares of the Company's common stock.
−Removed: However, it is the Company's discretion whether this compensation will ultimately be paid in stock or cash, as it has the right to dictate the form of these payments up until the date they are paid.
+Added: On May 21, 2024, the Company authorized an additional 8,500,000 shares to be available under the Amended and Restated 2016 LTIP ("2016 LTIP").
+Added: Further, on May 8, 2025, the Company's stockholders approved an amendment to the 2016 LTIP that increased the number of shares available for issuance by an additional 4,900,000 shares.
+Added: As of December 31, 2025, approximately 1.5 million shares of our common stock remain available for future issuance under the 2016 LTIP.
Stock-based compensation expense recognized for restricted stock units and stock options granted to employees and non-employees is included in the consolidated statements of operations, net of adjustments.
8 unchanged sentences
Total $ 30,150 $ 21,411
−Removed: (1) Stock-based compensation expense related to stock options was $ 0.1 million and $ 0.3 million for the years ended December 31, 2024 and 2023.
+Added: (1) No stock-based compensation expense related to stock options was recorded for the year ended December 31, 2025, while $ 0.1 million was recorded for the year ended December 31, 2024.
Restricted Stock
6 unchanged sentences
Unvested outstanding units as of December 31, 2025 2,182,836 10,861,854 13,044,690 $ 3.49
−Removed: 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.
−Removed: 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.
−Removed: These PSUs may vest only if the Company achieves certain financial performance targets for fiscal year 2025.
−Removed: 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.
−Removed: 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.
−Removed: Our key assumptions used to calculate the grant date fair value of the PSU awards with market condition granted in fiscal year 2024 include a performance period of 2.59 years, an expected volatility of 83.9 %, and a risk-free rate of 4.70 %.
−Removed: 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.
−Removed: On December 1, 2024, the Company granted PSUs to an employee that could settle in up to 20,000 shares of its common stock and may vest upon achieving certain operational milestones prior to January 1, 2028.
−Removed: As of December 31, 2024, the intrinsic value of the RSUs and PSUs outstanding, exercisable, and vested or expected to vest was $ 43.2 million.
−Removed: Total unrecognized compensation cost related to unvested RSUs and PSUs was $ 17.0 million as of December 31, 2024, of which $ 2.0 million relates to PSUs that were not probable of achievement.
−Removed: The remaining $ 15.0 million of unrecognized compensation cost is expected to be recognized on a straight-line basis over a weighted-average remaining vesting period of 0.7 years.
−Removed: In the second quarter of 2024, the performance targets for outstanding PSUs granted prior to 2024 were not probable of being achieved.
−Removed: 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.
−Removed: This was recorded as a stock-based compensation adjustment under R&D expenses and SG&A expenses in the Company's statements of operations for the year ended December 31, 2024.
−Removed: The performance period for these PSUs ended during the third quarter of 2024.
+Added: On February 20, 2025, the Company modified certain previously granted PSUs with financial performance targets for fiscal year 2025.
+Added: The modification eliminated one of the financial performance targets.
+Added: As a result, an incremental stock-based compensation expense of $ 2.0 million is recognized over the remaining vesting period.
+Added: On May 14, 2025, the Company granted PSUs to a certain employee that could settle in up to (i) 65,000 shares of its common stock that will vest only if the Company achieves a certain operational milestone prior to January 1, 2027;
+Added: and (ii) 50,000 shares of its common stock and will vest only if the Company achieves certain financial performance targets for fiscal year 2025.
+Added: On June 11, 2025, the Company granted PSUs containing stock price market conditions to certain employees that could settle in up to 1,060,000 shares of its common stock.
+Added: These PSUs will 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 days prior to January 1, 2027.
+Added: For the awards subject to stock price market conditions, the Monte Carlo approach uses a class of computational algorithms that rely on repeated random sampling to compute their results.
+Added: This approach allows the calculation of the value of such PSUs based on a large number of possible stock price path scenarios.
+Added: The risk-free rate is based on a zero-coupon yield from the Treasury Constant Maturities yield curve at the time of grant over the performance period.
+Added: PSUs with Stock Price Market Condition Fair Value and Assumptions
+Added: For the Year Ended December 31,
+Added: (in thousands)
+Added: Performance period (in years) 1.56
+Added: Expected volatility 97.5 %
+Added: Risk-free rate 3.9 %
+Added: Expected derived service period (in years) 0.80 - 0.94
+Added: Grant date fair value $ 1.17 - $ 1.51
+Added: $ 2.62 - $ 3.75
+Added: On June 11, 2025, the Company also granted to certain executives PSUs that were market conditions dependent on total shareholder return ("TSR"), that could settle in up to 2,206,163 shares of its common stock.
+Added: The vesting criteria for these awards are based on the Company's TSR performance relative to the TSR performance of the Company's compensation peer group as of the grant date over the three-year performance period, June 1, 2025, through May 31, 2028, and conditioned upon neutral or positive free cash flow (i.e.
+Added: cash flows from operating activities less capital expenditure) at the end of each fiscal year 2025, 2026, and 2027.
+Added: The final payout of these PSUs will vary between 0 % to 200 % of the target number of PSUs granted, depending on the TSR performance and meeting the free cash flow requirements.
+Added: For the awards subject to TSR market conditions, the Monte Carlo simulation simulates a distribution of stock prices for the Company and its current compensation peer group throughout the remaining performance period based on certain assumptions of stock price performance.
+Added: Monte Carlo valuations of relative TSR PSUs depend on two sets of prices:
+Added: realized performance and simulated performance.
+Added: Our key assumptions include a performance period of 2.97 years, an expected volatility of 114.7 %, and a risk-free rate of 3.8 %.
+Added: The fair value for these relative TSR market condition PSUs at the grant date was $ 4.82 .
+Added: As of December 31, 2025, and 2024, the intrinsic value of the RSUs and PSUs outstanding, exercisable, and vested or expected to vest was $ 66.5 million and $ 43.2 million, respectively.
+Added: There was approximately $ 8.7 million of total compensation costs related to stock-based awards not yet recognized as of December 31, 2025, which is expected to be recognized on a straight-line basis over a weighted-average remaining vesting period of 0.2 years.
Stock Options
22 unchanged sentences
The weighted-average fair value of the underlying stock options at the grant date was $ 1.06 .
−Removed: There were no new stock options granted in fiscal year 2024.
+Added: There were no new stock options granted in fiscal years 2025, and 2024.
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 December 31, 2025.
25 unchanged sentences
Year Ending December 31, 2030 — —
−Removed: Thereafter — —
Total minimum lease payments 444 8,344
21 unchanged sentences
As of December 31, 2025, the Plan held 1,932,890 shares of Telos common stock.
−Removed: We matched one-half of employee contribution to the Plan up to a maximum of 4 % of such employee's eligible annual base salary.
−Removed: Prior to September 2023, Telos' contributions vested at the rate of 20 % each year, with full vesting occurring after completion of five years of service.
−Removed: Effective September 1, 2023, we changed our Telos-contributed matching funds to a two -year vesting schedule:
+Added: We matched 50 % of the employee contribution to the Plan up to 8 % of such employee's eligible compensation on a pay period basis.
+Added: Effective September 1, 2023, Telos-contributed matching funds to a two -year vesting schedule:
20 % vesting after one year of service, and fully vesting after the completion of two years of service.
1 unchanged sentence
The Telos employer matching contribution is funded in the first quarter of the subsequent year.
−Removed: Our total contributions to the Plan for 2024 and 2023 were $ 2.1 million for both periods.
−Removed: Components of Provision for Income Taxes
+Added: Our total contributions to the Plan for 2025 and 2024 was $ 2.0 million and $ 2.1 million, respectively.
+Added: Loss Before Income Tax
For the Year Ended December 31,
(in thousands)
+Added: Loss from continuing operations before income taxes:
+Added: Domestic $ ( 37,302 ) $ ( 52,573 )
+Added: Foreign 93 79
+Added: Total loss before income taxes $ ( 37,209 ) $ ( 52,494 )
+Added: Components of (Benefit from) Provision for Income Taxes
+Added: For the Year Ended December 31,
+Added: (in thousands)
Current provision
Federal $ — $ —
−Removed: State 21 ( 19 )
Total current 97 26
3 unchanged sentences
Total deferred ( 760 ) —
−Removed: Provision for income taxes $ 26 $ 36
−Removed: Reconciliation of Statutory Tax Rate to Actual Tax Rate
+Added: (Benefit from) provision for income taxes $ ( 663 ) $ 26
+Added: Reconciliation of Statutory Income Tax Expense to Actual Income Tax Expense
For the Year Ended December 31,
−Removed: Computed expected income tax provision 21.0 % 21.0 %
+Added: Amount Rate Amount Rate
+Added: (dollars in thousands)
+Added: federal statutory rate $ ( 7,814 ) 21.0 % $ ( 11,024 ) 21.0 %
State income taxes, net of federal income tax benefit (1)
+Added: ( 90 ) — % ( 25 ) — %
Change in valuation allowance for deferred tax assets 7,775 ( 21.0 ) % 9,855 ( 18.7 ) %
−Removed: Cumulative deferred adjustments 1.0 —
−Removed: Provision to return adjustments — ( 0.1 )
+Added: Foreign tax effect
+Added: Philippines ( 8 ) — % ( 10 ) — %
+Added: R&D credit ( 26 ) — % ( 1,200 ) 2.2 %
+Added: Nontaxable or nondeductible items:
Other permanent differences ( 90 ) — % 82 ( 0.1 ) %
1 unchanged sentence
Section 162(m) limitation - covered employees 1,020 ( 2.0 ) % 1,711 ( 3.3 ) %
+Added: Changes in unrecognized tax benefits:
Uncertain tax positions 6 — % 300 ( 0.6 ) %
−Removed: R&D credit 2.9 ( 0.7 )
+Added: Other adjustments:
+Added: Cumulative deferred adjustments 44 — % 48 ( 0.1 ) %
+Added: Provision to return adjustments 123 — % ( 9 ) — %
Effective tax rate $ ( 663 ) 2.0 % $ 26 ( 0.1 ) %
−Removed: Components of Deferred Tax Assets and Liabilities
+Added: (1) State income taxes in Texas made up the majority (greater than 50%) of the tax effect in this category.
+Added: Components of Deferred Tax Assets (Liabilities)
As of December 31,
25 unchanged sentences
Balance at beginning of year $ 67,117 $ 54,999
−Removed: Additions (reductions) 12,118 ( 2,560 )
+Added: Additions 10,079 12,118
Balance at end of year $ 77,196 $ 67,117
10 unchanged sentences
We believe that ownership activity since December 31, 2020, would not result in limitation sufficient to result in the expiration of unused attributes.
−Removed: Under the provisions of ASC 740, we determined that there were approximately $ 1.5 million and $ 1.2 million of unrecognized tax benefits as of December 31, 2024, and 2023, respectively.
−Removed: There was no tax benefit included on the unrecognized tax benefits as of December 31, 2024.
−Removed: There was $ 0.01 million of tax benefits included in the balance of unrecognized tax benefits as of December 31, 2023, that if recognized, would impact the effective tax rate.
−Removed: Also included in the balance of unrecognized tax benefits as of December 31, 2024, and 2023 were $ 1.5 million and $ 1.2 million, respectively, of tax benefits that, if recognized, would not impact the effective tax rate due to the Company's valuation allowance.
+Added: Under the provision of ASC 740, we determined that the unrecognized tax benefits as of December 31, 2025, and 2024 were approximately $ 1.5 million for both periods.
+Added: As of December 31, 2025, and 2024, the tax benefits that, if recognized, would not impact the effective tax rate due to the Company's valuation allowance (as included in the balance of unrecognized tax benefits) were $ 1.5 million for both periods.
We report interest and penalties as a component of income tax expense.
−Removed: There was no accrued interest and penalties related to the unrecognized tax benefits as of December 31, 2024.
−Removed: The Company had accrued interest and penalties related to the unrecognized tax benefits of $ 0.01 million, which was recorded in other liabilities as of December 31, 2023.
+Added: There was no accrued interest and penalties related to the unrecognized tax benefits as of December 31, 2025, and 2024.
We believe that the total amounts of unrecognized tax benefits will not significantly increase or decrease within the next 12 months.
4 unchanged sentences
We were notified by the IRS in September 2024 regarding an audit of our 2021 federal income tax return.
−Removed: As of the date of these financial statements, the audit is still ongoing and no final determination or audit report has been issued.
−Removed: Reconciliation of the Beginning and Ending Amounts of Unrecognized Tax Benefit
+Added: In April 2025, the IRS notified us that it had completed its examination of our 2021 federal income tax return with no changes to our reported tax.
+Added: Unrecognized Tax Benefit Activity
For the Year Ended December 31,
5 unchanged sentences
Balance at end of year $ 1,522 $ 1,515
+Added: Components of Income Taxes Paid (Net of Refunds Received)
+Added: For the Year Ended December 31,
+Added: (in thousands)
+Added: Federal $ — $ —
+Added: Total $ 42 $ 55
+Added: Net Income Tax Payments (Refund) by Jurisdiction To or Greater than 5% of Total Income Taxes Paid, Net
+Added: For the Year Ended December 31,
+Added: (in thousands)
+Added: Texas $ 30 $ 55
+Added: Philippines $ 12 $ —
LOSS PER SHARE
3 unchanged sentences
(in thousands)
−Removed: Unvested restricted stock and restricted stock units 834 687
−Removed: Total 834 687
−Removed: As of December 31, 2024, and 2023, PSUs of 10,683,230 and 43,800 , respectively, have been excluded in the calculation of the potentially dilutive securities above because issuance of such shares are contingent upon the satisfaction of certain conditions which were not satisfied by the end of the reporting period.
−Removed: RELATED PARTY TRANSACTIONS
−Removed: Wood, the brother of our Chairman and CEO, had been an employee of ours since 1996.
−Removed: In January 2023, he tendered his resignation as an employee effective February 7, 2023.
−Removed: The amounts paid to him as total compensation in 2023, including stock awards and other benefits, was $ 0.2 million.
−Removed: One of the Company's directors served as a consultant to the Company under a consultancy agreement that expired on December 31, 2023.
−Removed: 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.
−Removed: 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.
−Removed: From July 1 through December 31, 2023, the director was paid a firm-fixed monthly retainer fee, plus additional fees and contingent bonus payments upon achievement of certain contract goals, payable in cash.
−Removed: Cash payments made for his consulting services were $ 0.1 million for the year ended December 31, 2023.
+Added: Weighted-average number of shares – unvested RSUs, PSUs and stock options 4,253 834
+Added: As of December 31, 2025, and 2024, PSUs of 8,441,163 and 10,683,230 , respectively, have been excluded in the calculation of the potentially dilutive securities above because issuance of such shares are contingent upon the satisfaction of certain conditions which were not satisfied by the end of the reporting period or the shares were antidilutive.
SEGMENT INFORMATION
−Removed: As noted in Note 2 – Significant Accounting Policies , we conduct our operations through two reportable and operating segments:
+Added: Operating segments are defined as components of the Company for which separate discrete financial information is available and evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and assess performance.
+Added: We identified our CEO as the CODM.
+Added: We operate our business in two reportable and operating segments:
Security Solutions and Secure Networks.
−Removed: • Our Security Solutions segment is primarily focused on cybersecurity, cloud and identity solutions, and secure messaging through Xacta, Telos Automated Message Handling System ("AMHS") and Telos ID offerings.
−Removed: 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.
−Removed: Revenue associated with the segment's custom solutions is recognized as work progresses or upon delivery of services and products.
−Removed: Fluctuation in revenue from period to period is the result of the volume of software sales, and the progress or completion of cloud and/or cybersecurity solutions during the period.
−Removed: Other segment expenses relate to labor, material, and overhead costs.
−Removed: Software sales generally yield higher margins.
−Removed: Gross profit and margin are a function of operational efficiency on security solutions and changes in the volume of software sales.
+Added: • Our Security Solutions segment is primarily focused on cybersecurity, cloud and identity solutions, and secure messaging through Xacta, Telos AMHS and Telos ID offerings.
• Our Secure Networks segment provides secure networking architectures and solutions to our customers through secure mobility solutions, and network management and defense services.
−Removed: Revenue is recognized over time as the work progresses on contracts related to managing network services and information delivery.
−Removed: Contract costs include labor, material, and overhead costs.
−Removed: Variances in costs recognized from period to period primarily reflect increases and decreases in activity levels on individual contracts.
+Added: We measure each segment's profitability based on gross profit.
+Added: Our CEO evaluates the segment's performance based on metrics, such as segment revenue and gross profit, that align with our strategies and objectives, and provide a framework for the timely and rational allocation of resources between the segments.
Results of Operations by Business Segment
4 unchanged sentences
Cost of sales
−Removed: Impairment loss on intangible assets (1)
−Removed: 5,333 — 5,333 — — —
Depreciation and amortization (1)
2 unchanged sentences
594 58 652 667 161 828
+Added: Impairment loss on intangible assets (1)
+Added: — — — 5,333 — 5,333
Other segment items (2)
5 unchanged sentences
Selling, general and administrative expenses 78,925 75,487
+Added: Goodwill impairment 14,916 —
Impairment loss on intangible assets — 6,373
4 unchanged sentences
Loss before income taxes ( 37,209 ) ( 52,494 )
−Removed: Provision for income taxes ( 26 ) ( 36 )
+Added: Benefit from (provision for) income taxes 663 ( 26 )
Net loss $ ( 36,546 ) $ ( 52,520 )
1 unchanged sentence
(2) Other segment items for each reportable segment include direct labor, direct subcontractor costs, direct materials and inventory, other direct non-labor costs, fringes, overhead, and facility costs.
−Removed: We measure each segment's profitability based on gross profit.
−Removed: The CODM evaluates the segment's performance based on metrics, such as segment revenues and gross profit, to align with our strategies and objectives, and provide a framework to allocate resources between the segments.
We account for inter-segment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices, if any.
1 unchanged sentence
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.
−Removed: Management does not utilize total assets by segment, nor provide segment asset information to the CODM, to evaluate segment performance or allocate resources.
+Added: 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.
−Removed: COMMITMENTS AND CONTINGENCIES
−Removed: Legal Proceedings
−Removed: 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.
−Removed: 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.
−Removed: 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 financial condition and results of operations.
−Removed: Management does not believe that there are any litigation or claims that would have a material adverse effect on the business, or the consolidated financial statements of the Company as of December 31, 2024.
−Removed: Other - Government Contracts
−Removed: government contractor, we are subject to various audits and investigations by the U.S.
−Removed: government to determine whether our operations are being conducted in accordance with applicable regulatory requirements.
−Removed: 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.
−Removed: government contracting, or suspension of export privileges.
−Removed: Suspension or debarment could have a material adverse effect on us because of our dependence on contracts with the U.S.
−Removed: government investigations often take years to complete and many result in no adverse action against us.
−Removed: We also provide products and services to customers outside of the United States, which are subject to U.S.
−Removed: and foreign laws and regulations and foreign procurement policies and practices.
−Removed: Our compliance with local regulations or applicable U.S.
−Removed: government regulations also may be audited or investigated.
SUPPLEMENTAL CASH FLOW INFORMATION
11 unchanged sentences
Interest $ 482 $ 563
−Removed: Income taxes 132 147
+Added: Income taxes paid, net 42 55
Non-cash investing and financing activities:
−Removed: Operating lease ROU assets obtained in exchange for operating lease liabilities $ 626 $ 125
−Removed: Capital expenditure activity in accounts payable and other accrued liabilities 309 341
Issuance of common stock for 401K match $ 2,063 $ 1,619
−Removed: Intangible assets transferred to extinguish other financing obligations — 7,089
+Added: Capital expenditure activity in accounts payable and other accrued liabilities 67 309
+Added: Operating lease ROU assets obtained in exchange for operating lease liabilities — 626
+Added: COMMITMENTS, CONTINGENCIES AND SUBSEQUENT EVENTS
+Added: Legal Proceedings
+Added: 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.
+Added: 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.
+Added: 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 financial condition and results of operations.
+Added: Management does not believe that there is any litigation or claims that would have a material adverse effect on the business, or the consolidated financial statements of the Company as of December 31, 2025.
+Added: Other - Government Contracts
+Added: federal government contractor, we are subject to various audits and investigations by the U.S.
+Added: federal government to determine whether our operations are being conducted in accordance with applicable regulatory requirements.
+Added: federal 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.
+Added: federal government contracting, or suspension of export privileges.
+Added: Suspension or debarment could have a material adverse effect on us because of our dependence on contracts with the U.S.
+Added: federal government.
+Added: federal government investigations often take years to complete and many result in no adverse action against us.
+Added: We also provide products and services to customers outside of the United States, which are subject to U.S.
+Added: and foreign laws and regulations and foreign procurement policies and practices.
+Added: Our compliance with local regulations or applicable U.S.
+Added: federal government regulations also may be audited or investigated.
+Added: Subsequent Events
+Added: On March 12, 2026, the Company's Board of Directors authorized the Company to repurchase up to an additional $ 25.0 million of its common stock under its existing repurchase program previously authorized on May 24, 2022, which, together with the remaining available under the share repurchase program, will allow the Company to repurchase up to $ 50.1 million of its common stock in the aggregate going forward.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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.