<SEC-DOCUMENT>0000320121-21-000020.txt : 20210517
<SEC-HEADER>0000320121-21-000020.hdr.sgml : 20210517
<ACCEPTANCE-DATETIME>20210517161044
ACCESSION NUMBER:		0000320121-21-000020
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20210517
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20210517
DATE AS OF CHANGE:		20210517

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TELOS CORP
		CENTRAL INDEX KEY:			0000320121
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373]
		IRS NUMBER:				520880974
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08443
		FILM NUMBER:		21930651

	BUSINESS ADDRESS:	
		STREET 1:		19886 ASHBURN ROAD
		CITY:			ASHBURN
		STATE:			VA
		ZIP:			20147
		BUSINESS PHONE:		7034716000

	MAIL ADDRESS:	
		STREET 1:		19886 ASHBURN ROAD
		CITY:			ASHBURN
		STATE:			VA
		ZIP:			20147

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	C3 INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>8k_05172021.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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    <div style="text-align: center; font-weight: bold;">UNITED STATES</div>
    <div style="text-align: center; font-weight: bold;">SECURITIES AND EXCHANGE COMMISSION</div>
    <div style="text-align: center; font-weight: bold;">Washington, D.C.&#160; 20549</div>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">FORM 8-K</div>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">CURRENT REPORT</div>
    <div style="text-align: center; font-weight: bold;">Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</div>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">May 17, 2021</div>
    <div style="text-align: center;">Date of Report (Date of earliest event reported)</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">TELOS CORPORATION</div>
    <div style="text-align: center;">(Exact name of registrant as specified in its charter)</div>
    <div><br>
    </div>
    <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; border-collapse: collapse; text-align: left; color: #000000;" id="z0722b53828514b4aa8d3da117918aaa9">

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          <td style="width: 35.61%; vertical-align: bottom;">
            <div style="text-align: center; font-weight: bold;">Maryland</div>
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          <td style="width: 26.65%; vertical-align: top;">
            <div style="text-align: center; font-weight: bold;">001-08443</div>
          </td>
          <td style="width: 37.74%; vertical-align: bottom;">
            <div style="text-align: center; font-weight: bold;">52-0880974</div>
          </td>
        </tr>
        <tr>
          <td style="width: 35.61%; vertical-align: bottom;">
            <div style="text-align: center;">(State or other jurisdiction of incorporation)</div>
          </td>
          <td style="width: 26.65%; vertical-align: top;">
            <div style="text-align: center;">(Commission File Number)</div>
          </td>
          <td style="width: 37.74%; vertical-align: top;">
            <div style="text-align: center;">(IRS Employer Identification No.)</div>
          </td>
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          <td style="width: 41.58%; vertical-align: bottom;">&#160;</td>
          <td style="width: 11.67%; vertical-align: top;">&#160;</td>
          <td style="width: 46.75%; vertical-align: bottom;">&#160;</td>
        </tr>
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          <td style="width: 41.58%; vertical-align: bottom;">
            <div style="text-align: center; font-weight: bold;">19886 Ashburn Road,</div>
          </td>
          <td style="width: 11.67%; vertical-align: top;">&#160;</td>
          <td style="width: 46.75%; vertical-align: bottom;">&#160;</td>
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          <td style="width: 41.58%; vertical-align: bottom;">
            <div style="text-align: center; font-weight: bold;">Ashburn, Virginia</div>
          </td>
          <td style="width: 11.67%; vertical-align: top;">&#160;</td>
          <td style="width: 46.75%; vertical-align: bottom;">
            <div style="text-align: center; font-weight: bold;">20147-2358</div>
          </td>
        </tr>
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          <td style="width: 41.58%; vertical-align: bottom;">
            <div style="text-align: center;">(Address of principal executive offices)</div>
          </td>
          <td style="width: 11.67%; vertical-align: top;">&#160;</td>
          <td style="width: 46.75%; vertical-align: bottom;">
            <div style="text-align: center;">(Zip Code)</div>
          </td>
        </tr>

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    <div><br>
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    <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; border-collapse: collapse; text-align: left; color: #000000;" id="z083a9800a5584d0897b207fb15e0c1ff">

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          <td style="width: 100%; vertical-align: top;">
            <div style="text-align: center; font-weight: bold;">(703) 724-3800</div>
          </td>
        </tr>
        <tr>
          <td style="width: 100%; vertical-align: top;">
            <div style="text-align: center;">(Registrant&#8217;s telephone number, including area code)</div>
          </td>
        </tr>

    </table>
    <div><br>
    </div>
    <div style="text-align: center; font-variant: small-caps; font-weight: bold;">Not Applicable</div>
    <div style="text-align: center;">(Former name, former address, and former fiscal year, if changed since last report.)</div>
    <div><br>
    </div>
    <div style="text-align: center; margin-right: 9pt; margin-left: 18pt;">Securities registered pursuant to Section 12(b) of the Act:</div>
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          <td style="width: 33.41%; vertical-align: top;">
            <div style="text-align: center; margin-right: 9pt;">Title of each class</div>
          </td>
          <td style="width: 33.06%; vertical-align: top;">
            <div style="text-align: center; margin-right: 9pt;">Trading symbol</div>
          </td>
          <td style="width: 33.53%; vertical-align: bottom; text-align: center;">
            <div>Name of each exchange on which registered <br>
            </div>
          </td>
        </tr>
        <tr>
          <td style="width: 33.41%; vertical-align: top;">
            <div style="text-align: center; margin-right: 9pt;">Common stock, $0.001 par value per share</div>
          </td>
          <td style="width: 33.06%; vertical-align: top;">
            <div style="text-align: center; margin-right: 9pt;">TLS</div>
          </td>
          <td style="width: 33.53%; vertical-align: top;">
            <div style="text-align: center; margin-right: 9pt;">The Nasdaq Stock Market LLC</div>
          </td>
        </tr>

    </table>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify;">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 18pt;"><font style="font-family: 'Segoe UI Symbol', sans-serif;">&#9744;</font><font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 18pt" id="TRGRRTFtoHTMLTab">&#160;</font>Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</div>
    <div style="text-align: justify; text-indent: 18pt;"><font style="font-family: 'Segoe UI Symbol', sans-serif;">&#9744;</font><font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 18pt" id="TRGRRTFtoHTMLTab">&#160;</font>Soliciting material
      pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</div>
    <div style="text-align: justify; text-indent: 18pt;"><font style="font-family: 'Segoe UI Symbol', sans-serif;">&#9744;</font><font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 18pt" id="TRGRRTFtoHTMLTab">&#160;</font>Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</div>
    <div style="text-align: justify; text-indent: 18pt;"><font style="font-family: 'Segoe UI Symbol', sans-serif;">&#9744;</font><font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 18pt" id="TRGRRTFtoHTMLTab">&#160;</font>Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</div>
    <div><br>
    </div>
    <div style="color: #000000;">Indicate&#160;by&#160;check&#160;mark&#160;whether&#160;the&#160;registrant&#160;is&#160;an&#160;emerging&#160;growth&#160;company&#160;as&#160;defined&#160;in&#160;Rule&#160;405&#160;of&#160; the&#160;Securities&#160;Act&#160;of&#160;1933&#160;(&#167;230.405 of this chapter) or&#160;Rule&#160;12b-2&#160;of&#160;the&#160;Securities&#160;Exchange Act&#160;of&#160;1934 (&#167;240.12b-2
      of this chapter).</div>
    <div style="color: #000000;">&#160;</div>
    <div style="color: #000000;">Emerging&#160;growth&#160;company&#160;&#160;&#8999;</div>
    <div><br>
    </div>
    <div style="color: #000000;">If&#160;an&#160;emerging&#160;growth&#160;company,&#160;indicate&#160;by&#160;check&#160;mark&#160;if&#160;the&#160;registrant&#160;has&#160;elected&#160;not&#160;to&#160;use&#160;the extended transition&#160;period&#160;for&#160;complying&#160;with&#160;any&#160;new&#160;or&#160;revised financial accounting standards provided pursuant to Section
      13(a) of the Exchange Act.&#160;&#160;<font style="font-family: 'Segoe UI Symbol', sans-serif;">&#9744;</font></div>
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          <td style="width: 72pt; vertical-align: top; align: right; color: #000000; font-weight: bold;">Item 2.02.</td>
          <td style="width: auto; vertical-align: top; text-align: justify;">
            <div style="color: #000000; font-weight: bold;">Results of Operations and Financial Condition.</div>
          </td>
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    <div><br>
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    <div style="text-align: justify;"><font style="color: #000000;">On Monday, May 17, 2021, Telos Corporation (the &#8220;Company&#8221;) issued a press release reporting certain financial results of the Company for the three months ended March 31, 2021 and 2020. A
        copy of the press release is </font>attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.</div>
    <div><br>
    </div>
    <div style="text-align: justify; color: #000000;">The Company&#8217;s press release contains non-GAAP financial measures. Pursuant to the requirements of&#160;Regulation G, the Company has provided reconciliations within the press release of the non-GAAP
      financial measures to the most directly comparable GAAP financial measures. Disclosure regarding definitions of these measures used by the Company and why the Company&#8217;s management believes the measures provide useful information to investors is also
      included in the press release.</div>
    <div style="text-align: justify; text-indent: 36pt; color: #000000;">&#160;</div>
    <div style="text-align: justify; color: #000000;">The Company will conduct a conference call to discuss its financial results on Monday, May 17, 2021, at 4:30 p.m., Eastern Time.</div>
    <div style="text-align: justify; text-indent: 36pt; color: #000000;">&#160;</div>
    <div style="text-align: justify; color: #000000;">The information in this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is furnished pursuant to Item 2.02 of this Current Report on Form 8-K. Such information shall not be deemed
      &#8220;filed&#8221; for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference into any filing under the&#160;Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.</div>
    <div style="text-align: justify; color: #000000;">&#160;</div>
    <div style="text-align: justify; color: #000000;">Statements contained in this Current Report on Form 8-K contain &#8220;forward-looking statements&#8221; within the meaning of the Private Securities Litigation Reform Act of 1995. In this context, forward-looking
      statements may address matters such as the Company&#8217;s expected future business and financial performance, and often contain words such as &#8220;guidance,&#8221; &#8220;prospects,&#8221; &#8220;expects,&#8221; &#8220;anticipates,&#8221; &#8220;intends,&#8221; &#8220;plans,&#8221; &#8220;believes,&#8221; &#8220;seeks,&#8221; &#8220;should,&#8221; or &#8220;will.&#8221;
      Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Particular uncertainties that could adversely or positively affect the Company&#8217;s future results include: the seasonality of U.S. government
      purchasing; the Company&#8217;s dependence on the U.S. government for a significant portion of its sales and related negative effects associated with a change in U.S. government spending; the Company&#8217;s dependence on various third parties and their
      infrastructure when providing its services and solutions; statements regarding the Company&#8217;s U.S. government contracts and their various bidding processes and sales and implementation cycles; statements regarding the Company&#8217;s compliance with various
      privacy regulations; risks associated with the growth of the Company&#8217;s business in new commercial markets and other channels; real or perceived errors, failures, defects or bugs in the Company&#8217;s solutions; the effect of COVID-19 on the Company&#8217;s
      future operations, financial condition and its ability to execute on business or contract opportunities, including the TSA PreCheck&#8482; enrollment program; the fluctuation of the Company&#8217;s quarterly results; conflicts of interests among the Company&#8217;s
      Board of Directors, executive officers and significant stockholders; future sales of the Company&#8217;s common stock on the public market; provisions in the Company&#8217;s organizational documents and agreements with third parties that could delay or prevent a
      change of control; and other risks and uncertainties disclosed in the Company&#8217;s filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2020. These uncertainties may cause
      the Company&#8217;s actual future results to be materially different than those expressed in the Company&#8217;s forward-looking statements. The Company does not undertake to update its forward-looking statements.</div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-weight: bold;">Item 9.01.</font><font style="display: inline-block; text-indent: 0px; font-size: 1px; width: 72pt" id="TRGRRTFtoHTMLTab">&#160;</font><font style="font-weight: bold;">Financial Statements
        and Exhibits</font></div>
    <div><br>
    </div>
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          <td style="width: 36pt; vertical-align: top; align: right;"><a href="ex99-1.htm">99.1</a></td>
          <td style="width: auto; vertical-align: top; text-align: justify;">
            <div>Press Release, dated May 17, 2021</div>
          </td>
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    <div style="text-align: center; color: #000000; font-weight: bold;">SIGNATURES</div>
    <div>&#160;</div>
    <div style="color: #000000;">Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.</div>
    <div>&#160;</div>
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    <div style="color: #000000;">Date:&#160;&#160;May 17, 2021</div>
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            <div style="font-weight: bold;">TELOS CORPORATION</div>
            <div>&#160;</div>
          </td>
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          <td style="width: 7%; vertical-align: top; padding-bottom: 1px;">
            <div>By:</div>
          </td>
          <td style="vertical-align: top; width: 93%; border-bottom: 1px solid rgb(0, 0, 0);">
            <div>/s/ Michele Nakazawa</div>
          </td>
        </tr>
        <tr>
          <td style="width: 7%; vertical-align: top;">&#160;</td>
          <td style="width: 93%; vertical-align: top;">
            <div>Michele Nakazawa</div>
          </td>
        </tr>
        <tr>
          <td style="width: 7%; vertical-align: top;">&#160;</td>
          <td style="width: 93%; vertical-align: top;">
            <div style="color: #000000;">Chief Financial Officer</div>
          </td>
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<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>ex99-1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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      <div style="text-align: right; text-indent: 216pt; margin-right: 18pt;"><font style="font-weight: bold; font-size: 11pt;">Exhibit 99.1</font><br>
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        <div style="font-size: 14pt; font-weight: bold;">Telos Corporation Reports First Quarter 2021 Results</div>
        <div>
          <table cellspacing="0" cellpadding="0" id="z870f5d27d04d46de85ab3d8cf0224dd2" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

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                  <div style="font-size: 12pt; font-style: italic; font-weight: bold;">-</div>
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                <td style="width: auto; vertical-align: top;">
                  <div style="font-size: 12pt; font-style: italic;">Revenue Increases 43% Year-Over-Year to $55.8 Million</div>
                </td>
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          <table cellspacing="0" cellpadding="0" id="z8f38fd67d10c45759df0b7a6f49dca33" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

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                  <div style="font-size: 12pt; font-style: italic; font-weight: bold;">-</div>
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                  <div style="font-size: 12pt; font-style: italic;">Gross Profit Increases to $14.4 Million</div>
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                  <div style="font-size: 12pt; font-style: italic;">Company Reaffirms Full Year 2021 Guidance</div>
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        <div style="font-size: 12pt;"><font style="font-weight: bold; color: #000000;">Ashburn, Va. &#8211;</font><font style="font-weight: bold; color: #FF0000;">&#160;</font><font style="font-weight: bold;">May 17, 2021</font>&#160;<font style="color: #000000;">&#8211; </font>Telos<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">&#174;</sup> Corporation (NASDAQ: TLS), a leading provider of cyber, cloud and enterprise security solutions for the world&#8217;s most security-conscious organizations, today announced financial results for the first
          quarter 2021.</div>
        <div><br>
        </div>
        <div style="font-size: 12pt;">&#8220;I am extremely proud of our team and execution this quarter &#8211; delivering 43% year-over-year revenue growth and continuing to win meaningful contracts and
          exceeding our prior guidance, giving us even greater confidence for the full year,&#8221; said John B. Wood, CEO and chairman of Telos.&#160; &#8220;We surpassed our expectations on both the top and bottom line as we were able to execute on our customers&#8217; request
          to accelerate deliveries expected in the second quarter into the first quarter. Our exceptional results continue to be driven by strong demand for our advanced security solutions, recent long-term contract wins and our growing sales channel.&#160; We
          are very well positioned to continue to execute as a leading, world class organization in the cyber, cloud and enterprise security market.&#8221;</div>
        <div>
          <div><br>
          </div>
          <div style="font-size: 12pt; font-weight: bold;">First Quarter 2021 Financial Highlights</div>
        </div>
        <div>
          <table cellspacing="0" cellpadding="0" id="zbf0300c50d3f4b7a834ec2aa211f7178" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

              <tr>
                <td style="width: 18pt; vertical-align: top; align: right;">
                  <div style="font-size: 12pt; font-weight: bold;">&#8226;</div>
                </td>
                <td style="width: auto; vertical-align: top;">
                  <div style="font-size: 12pt;"><font style="font-weight: bold;">Revenue:&#160;</font>Total revenue increased 43%
                    to&#160;$55.8 million, compared to&#160;$39.0 million&#160;in the first quarter of 2020.</div>
                </td>
              </tr>

          </table>
          <table cellspacing="0" cellpadding="0" id="z01b86e83387b4f138f22c39e6c07129a" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

              <tr>
                <td style="width: 18pt; vertical-align: top; align: right;">
                  <div style="font-size: 12pt; font-weight: bold;">&#8226;</div>
                </td>
                <td style="width: auto; vertical-align: top;">
                  <div style="font-size: 12pt;"><font style="font-weight: bold;">Gross Profit: </font>Gross profit increased to
                    $14.4 million, compared to $12.3 million in the first quarter of 2020.</div>
                </td>
              </tr>

          </table>
          <table cellspacing="0" cellpadding="0" id="z14f4ac9b159f4190902fae10205da37f" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

              <tr>
                <td style="width: 18pt; vertical-align: top; align: right;">
                  <div style="font-size: 12pt; font-weight: bold;">&#8226;</div>
                </td>
                <td style="width: auto; vertical-align: top;">
                  <div style="font-size: 12pt;"><font style="font-weight: bold;">GAAP Net Income (Loss): </font>Net loss was
                    $(14.8) million, compared to $(2.2) million in the first quarter of 2020.</div>
                </td>
              </tr>

          </table>
          <table cellspacing="0" cellpadding="0" id="z603f2fbd692d476dbb694809febe8576" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

              <tr>
                <td style="width: 18pt; vertical-align: top; align: right;">
                  <div style="font-size: 12pt; font-weight: bold;">&#8226;</div>
                </td>
                <td style="width: auto; vertical-align: top;">
                  <div style="font-size: 12pt;"><font style="font-weight: bold;">Adjusted Net Income (Loss): </font>Adjusted Net
                    Loss was $(0.05) million compared to $(2.3) million in the first quarter of 2020.</div>
                </td>
              </tr>

          </table>
          <table cellspacing="0" cellpadding="0" id="z7a7c778f110a44039740634cb8c04744" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

              <tr>
                <td style="width: 18pt; vertical-align: top; align: right;">
                  <div style="font-size: 12pt; font-weight: bold;">&#8226;</div>
                </td>
                <td style="width: auto; vertical-align: top;">
                  <div style="font-size: 12pt;"><font style="font-weight: bold;">Enterprise EBITDA:&#160;</font>Enterprise EBITDA
                    was&#160;$(12.1) million, compared to&#160;$1.8 million&#160;in the first quarter of 2020.</div>
                </td>
              </tr>

          </table>
          <table cellspacing="0" cellpadding="0" id="z79dbab80bcc54496ba0bfa967869ff10" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

              <tr>
                <td style="width: 18pt; vertical-align: top; align: right;">
                  <div style="font-size: 12pt; font-weight: bold;">&#8226;</div>
                </td>
                <td style="width: auto; vertical-align: top;">
                  <div style="font-size: 12pt;"><font style="font-weight: bold;">Adjusted EBITDA:&#160;</font>Adjusted EBITDA was&#160;$1.5
                    million, compared to&#160;$1.8 million&#160;in the first quarter of 2020.</div>
                </td>
              </tr>

          </table>
          <table cellspacing="0" cellpadding="0" id="z498d058e12734d549caa947b45755fcd" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

              <tr>
                <td style="width: 18pt; vertical-align: top; align: right;">
                  <div style="font-size: 12pt; font-weight: bold;">&#8226;</div>
                </td>
                <td style="width: auto; vertical-align: top;">
                  <div style="font-size: 12pt;"><font style="font-weight: bold;">GAAP Net loss per share attributable to Telos
                      Corporation, diluted: </font>$(0.23).</div>
                </td>
              </tr>

          </table>
          <table cellspacing="0" cellpadding="0" id="z3be38fc1e2b8429483b0975d1d160ebb" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

              <tr>
                <td style="width: 18pt; vertical-align: top; align: right;">
                  <div style="font-size: 12pt; font-weight: bold;">&#8226;</div>
                </td>
                <td style="width: auto; vertical-align: top;">
                  <div style="font-size: 12pt;"><font style="font-weight: bold;">Adjusted EPS: </font>Adjusted EPS was $(0.00)
                    per share, compared to $(0.06) per share in the first quarter of 2020.</div>
                </td>
              </tr>

          </table>
          <table cellspacing="0" cellpadding="0" id="zc5810366052a469497f859130b0e1ab2" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

              <tr>
                <td style="width: 18pt; vertical-align: top; align: right;">
                  <div style="font-size: 12pt; font-weight: bold;">&#8226;</div>
                </td>
                <td style="width: auto; vertical-align: top;">
                  <div style="font-size: 12pt;"><font style="font-weight: bold;">Weighted-average shares of common stock
                      outstanding: </font>64.6 million.</div>
                </td>
              </tr>

          </table>
        </div>
        <div>
          <div><br>
          </div>
          <div style="font-size: 12pt;">Enterprise EBITDA, Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted EPS are non-GAAP financial measures. Refer to &#8220;Non-GAAP Financial Measures&#8221;
            below.</div>
        </div>
        <div><br>
        </div>
        <div>
          <div style="font-size: 12pt; font-weight: bold;">Selected First Quarter and Recent 2021 Business Highlights:</div>
        </div>
        <div>
          <table cellspacing="0" cellpadding="0" id="za1d2a64c366440b8b36a4cadffebfd48" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

              <tr>
                <td style="width: 18pt; vertical-align: top; align: right;">
                  <div style="font-size: 12pt;">&#8226;</div>
                </td>
                <td style="width: auto; vertical-align: top;">
                  <div style="font-size: 12pt;">Microsoft expanded their Xacta<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">&#174;</sup> deployment to support all Microsoft Azure U.S. Government cloud instances, including Azure
                    Government, Azure Government Secret and Azure Government Top Secret.</div>
                </td>
              </tr>

          </table>
          <table cellspacing="0" cellpadding="0" id="z3dc0300eab614cc8bceaeb92d9298bf7" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

              <tr>
                <td style="width: 18pt; vertical-align: top; align: right;">
                  <div style="font-size: 12pt;">&#8226;</div>
                </td>
                <td style="width: auto; vertical-align: top;">
                  <div style="font-size: 12pt;">Telos continued building its leadership team, with industry veteran Troy M. Bertram joining as a vice president to lead global enterprise sales
                    teams across state and local governments, education, regulated industries and commercial business verticals.</div>
                </td>
              </tr>

          </table>
          <table cellspacing="0" cellpadding="0" id="z94b0c09bfa164af4810e773d1e6e8490" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

              <tr>
                <td style="width: 18pt; vertical-align: top; align: right;">
                  <div style="font-size: 12pt;">&#8226;</div>
                </td>
                <td style="width: auto; vertical-align: top;">
                  <div style="font-size: 12pt;">The City of Philadelphia and the City of Charlotte contracted with Telos to provide Transportation Security Administration (TSA)-approved
                    Designated Aviation Channeling (DAC) services for processing worker background checks at Philadelphia International Airport (PHL) and Charlotte Douglas International Airport (CLT).</div>
                </td>
              </tr>

          </table>
          <table cellspacing="0" cellpadding="0" id="z966d186e3c1c4050bada464a80a22818" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

              <tr>
                <td style="width: 18pt; vertical-align: top; align: right;">
                  <div style="font-size: 12pt;">&#8226;</div>
                </td>
                <td style="width: auto; vertical-align: top;">
                  <div style="font-size: 12pt;">Zscaler selected Telos&#8217; enterprise cyber risk management framework Xacta, for management and automation of&#160;FedRAMP&#160;and&#160;Department of
                    Defense&#160;(DoD) authorizations.</div>
                </td>
              </tr>

          </table>
          <table cellspacing="0" cellpadding="0" id="z4cc95ce92ed24471afd876a6aaf56d52" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

              <tr>
                <td style="width: 18pt; vertical-align: top; align: right;">
                  <div style="font-size: 12pt;">&#8226;</div>
                </td>
                <td style="width: auto; vertical-align: top;">
                  <div style="font-size: 12pt;">Telos announced a strategic partnership with Johnson Controls, to integrate the Telos Ghost<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">&#174;</sup> solution into Johnson Controls OpenBlue
                    Cloudvue Gateway.</div>
                </td>
              </tr>

          </table>
          <table cellspacing="0" cellpadding="0" id="ze25685f7979f4217b728dfef3c8e3a4e" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

              <tr>
                <td style="width: 18pt; vertical-align: top; align: right;">
                  <div style="font-size: 12pt;">&#8226;</div>
                </td>
                <td style="width: auto; vertical-align: top;">
                  <div style="font-size: 12pt;">Telos launched Xacta.io 1.5, the latest version of its cyber risk and compliance analytics platform, offering full vulnerability and asset
                    management support for AWS cloud resources.</div>
                </td>
              </tr>

          </table>
          <table cellspacing="0" cellpadding="0" id="z42fc2ca3523f4491b0e84475b36fee64" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

              <tr>
                <td style="width: 18pt; vertical-align: top; align: right;">
                  <div style="font-size: 12pt;">&#8226;</div>
                </td>
                <td style="width: auto; vertical-align: top;">
                  <div style="font-size: 12pt;">Telos announced the release of its cyber supply chain risk management (SCRM) offering, Xacta SCRM, to help organizations understand the security risks and compliance gaps within their supply chain, allow them to prioritize and manage remediation efforts, verify due-care via a robust body
                    of evidence and automated reporting, and continuously manage supply chain risk over time.</div>
                </td>
              </tr>

          </table>
          <table cellspacing="0" cellpadding="0" id="zfd506a5d8b584f219455e62194355a1d" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

              <tr>
                <td style="width: 18pt; vertical-align: top; align: right;">
                  <div style="font-size: 12pt;">&#8226;</div>
                </td>
                <td style="width: auto; vertical-align: top;">
                  <div style="font-size: 12pt;">Telos announced that the&#160;Social Security Administration&#160;(SSA) has exercised the first option year on the contract, including options, for
                    its&#160;Xacta&#160;solution.</div>
                </td>
              </tr>

          </table>
        </div>
        <div>
          <div><br>
          </div>
          <div><br>
          </div>
        </div>
        <div style="font-size: 12pt;">&#8220;On April 6, we completed a follow-on offering of 9.1 million shares of common stock, resulting in net proceeds to Telos of $64.5 million, further
          strengthening our balance sheet and allowing us to continue to invest in our salesforce and growth opportunities,&#8221; said Michele Nakazawa, CFO, Telos.</div>
        <div>
          <div><br>
          </div>
          <div style="font-size: 12pt; font-weight: bold;">Financial Outlook</div>
          <div style="font-size: 12pt;">Based on information available as of May 17, 2021, the Company is reaffirming the following guidance:</div>
          <div><br>
          </div>
          <div style="font-size: 12pt; font-weight: bold;">Full year 2021</div>
        </div>
        <div>
          <table cellspacing="0" cellpadding="0" id="z5410a776428e41f48b46adda08cce468" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

              <tr>
                <td style="width: 18pt; vertical-align: top; align: right;">
                  <div style="color: #000000; font-size: 12pt;">&#8226;</div>
                </td>
                <td style="width: auto; vertical-align: top;">
                  <div style="color: #000000; font-size: 12pt;">Revenue in the range of&#160;$283 million&#160;to&#160;$295 million, an improvement of 57% to 64% compared to 2020.</div>
                </td>
              </tr>

          </table>
          <table cellspacing="0" cellpadding="0" id="z31a90e0973ff4668a821df3a2a09800b" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

              <tr>
                <td style="width: 18pt; vertical-align: top; align: right;">
                  <div style="color: #000000; font-size: 12pt;">&#8226;</div>
                </td>
                <td style="width: auto; vertical-align: top;">
                  <div style="color: #000000; font-size: 12pt;">Adjusted EBITDA in the range of&#160;$33 million&#160;to&#160;$36 million, an improvement of 190% to 216% compared to 2020.</div>
                </td>
              </tr>

          </table>
        </div>
        <div>
          <div><br>
          </div>
          <div style="color: #212529; font-size: 12pt;">This guidance consists of forward-looking statements and actual results may differ materially. Refer to the Forward-Looking Statements
            section below for information on the factors that could cause the Company&#8217;s actual results to differ materially from these forward-looking statements. Adjusted EBITDA is a non-GAAP financial measure. The Company has not provided the most
            directly comparable GAAP measure to this forward-looking non-GAAP financial measure because certain items are out of the Company&#8217;s control or cannot be reasonably predicted. Accordingly, a reconciliation for forward-looking Adjusted EBITDA is
            not available without unreasonable effort.</div>
          <div><br>
          </div>
          <div style="font-size: 12pt; font-weight: bold;">Conference Call Information</div>
          <div style="font-size: 12pt;">Telos will host a conference call and live webcast to discuss its fourth quarter and full year 2020 financial results at 4:30 p.m. Eastern Time today,
            May 17, 2021. To access the conference call, dial (833) 540-1172 for the U.S. or Canada, or (409) 217-8402 for international calls and provide conference ID 5159718. The webcast will be available live on the Investors section of the Company&#8217;s
            website at www.investors.telos.com. In addition, an archived webcast will
            be available approximately two hours after the conclusion of the live event.</div>
          <div><br>
          </div>
          <div style="font-size: 12pt; font-weight: bold;">Forward-Looking Statements</div>
          <div style="font-size: 12pt;">This press release contains forward-looking statements which are made under the safe harbor provisions of the federal securities laws. These statements
            are based on the Company&#8217;s management&#8217;s current beliefs, expectations and assumptions about future events, conditions and results and on information currently available to them. By their nature, forward-looking statements involve risks and
            uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company believes that these risks and uncertainties include, but are not limited to, those described under the captions &#8220;Risk
            Factors&#8221; and &#8220;Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations&#8221; set forth from time to time in the Company&#8217;s filings and reports with the U.S. Securities and Exchange Commission (SEC), including their Annual
            Report on Form 10-K for the year ended December 31, 2020 and their Report on Form 10-Q for the quarter ended March 31, 2021, as well as future filings and reports by the Company, copies of which are available at www.investors.telos.com and on the SEC&#8217;s website at www.sec.gov.</div>
          <div><br>
          </div>
          <div style="font-size: 12pt;">Although the Company bases these forward-looking statements on assumptions that they believe are reasonable when made, they caution the reader that
            forward-looking statements are not guarantees of future performance and that the Company&#8217;s actual results of operations, financial condition and liquidity, and industry developments may differ materially from statements made in or suggested by
            the forward-looking statements contained in this release. Given these risks, uncertainties and other factors, many of which are beyond their control, the Company cautions the reader not to place undue reliance on these forward-looking
            statements. Any forward-looking statement speaks only as of the date of such statement and, except as required by law, the Company undertakes no obligation to update any forward-looking statement publicly, or to revise any forward-looking
            statement to reflect events or developments occurring after the date of the statement, even if new information becomes available in the future. Comparisons of results for current and any prior periods are not intended to express any future
            trends or indications of future performance, unless specifically expressed as such, and should only be viewed as historical data.</div>
        </div>
        <div><br>
        </div>
        <div style="margin-right: 9.35pt; font-size: 12pt; font-weight: bold;">Non-GAAP Financial Measures</div>
        <div>
          <div style="font-size: 12pt;">In addition to its results determined in accordance with GAAP, the Company believes the non-GAAP financial measures of Enterprise EBITDA, Adjusted
            EBITDA, Adjusted Net Income (Loss) and Adjusted EPS are useful in evaluating its operating performance. The Company believes that this non-GAAP financial information, when taken collectively with the Company&#8217;s GAAP results, may be helpful to
            readers of its financial statements because that information provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non-GAAP financial information to
            supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different
            from similarly-titled non-GAAP measures used by other companies. A reconciliation is provided below for each of these non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP.</div>
        </div>
        <div><br>
        </div>
        <div>
          <div style="font-size: 12pt;">The Company uses these non-GAAP financial measures to understand and evaluate its core operating performance and trends, to prepare and approve its
            annual budget, to develop short-term and long-term operating plans, and to evaluate the performance of certain management personnel when determining incentive compensation. The Company believes these non-GAAP financial measures facilitate
            comparison of its operating performance on a consistent basis between periods by excluding certain items that may, or could, have a disproportionate positive or negative impact on its results of operations in any particular period. When viewed
            in combination with the Company&#8217;s results prepared in accordance with GAAP, these non-GAAP financial measures help provide a broader picture of factors and trends affecting the Company&#8217;s results of operations.</div>
        </div>
        <div><br>
        </div>
        <div>
          <div style="font-size: 12pt;">Enterprise EBITDA, Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted EPS are supplemental measures of operating performance that are not made
            under GAAP and do not represent, and should not be considered as, an alternative to net income (loss) or earnings per share as determined by GAAP. The Company defines Enterprise EBITDA as net income (loss) attributable to Telos Corporation,
            adjusted for net income attributable to non-controlling interest, non-operating (expense) income, interest expense, (benefit) provision for income taxes, and depreciation and amortization. The Company defines Adjusted EBITDA as Enterprise
            EBITDA, adjusted for stock-based compensation expense, the gain realized on redemption of the public preferred stock upon the closing of the initial public offering, the losses realized on the extinguishment of senior term loan and subordinated
            debt upon the closing of the initial public offering, bonuses paid as a result of the closing of the initial public offering, and other expenses related to the initial public offering. The Company defines Adjusted Net Income (Loss) as net
            income (loss) attributable to Telos Corporation, adjusted for non-operating expense (income) and stock-based compensation expense. The Company defines Adjusted EPS as Adjusted Net Income (Loss) divided by the weighted-average number of common
            shares outstanding for the period.</div>
        </div>
        <div><br>
        </div>
        <div>
          <div style="font-size: 12pt;">Each of Enterprise EBITDA, Adjusted EBITDA, Adjusted Net Income (Loss), and Adjusted EPS has limitations as an analytical tool, and the reader should
            not consider it in isolation, or as a substitute for analysis of the Company&#8217;s results as reported under GAAP. Among other limitations, each of Enterprise EBITDA,
            Adjusted EBITDA, Adjusted Net Income (Loss), and Adjusted EPS does not reflect the Company&#8217;s cash expenditures, or future requirements for capital expenditures, or contractual commitments, does not reflect the impact of certain cash charges
            resulting from matters the Company considers not to be indicative of its ongoing operations, and does not reflect income tax expense or benefit. Other companies in the Company&#8217;s industry may calculate Adjusted EBITDA, Adjusted Net Income
            (Loss), and Adjusted EPS differently than the Company does, which limits its usefulness as a comparative measure. Because of these limitations, each of Enterprise EBITDA, Adjusted EBITDA, Adjusted Net Income (Loss), and Adjusted EPS should not
            be considered as a replacement for net income (loss) or earnings per share, as determined by GAAP, or as a measure of the Company&#8217;s profitability. The Company compensates for these limitations by relying primarily on its GAAP results and using
            non-GAAP measures only for supplemental purposes.</div>
        </div>
        <div><br>
        </div>
        <div>
          <div><br>
          </div>
          <div style="font-size: 12pt; font-weight: bold;">About Telos Corporation</div>
          <div><br>
          </div>
        </div>
        <div>
          <div style="margin-bottom: 12pt; font-size: 12pt;">Telos Corporation<font style="color: #636569;">&#160;</font>(NASDAQ: TLS) empowers and protects the world&#8217;s most security-conscious organizations with solutions for continuous security assurance of individuals, systems, and
            information. Telos&#8217; offerings include cybersecurity solutions for IT risk management and information security; cloud security solutions to protect cloud-based assets and enable continuous compliance with industry and government security
            standards; and enterprise security solutions for identity and access management, secure mobility, organizational messaging, and network management and defense. The company serves military, intelligence and civilian agencies of the federal
            government, allied nations and commercial organizations around the world.&#160;</div>
          <div style="margin-bottom: 12pt; font-size: 12pt;"><font style="font-weight: bold;">Media</font>:<br>
            Mia Wilcox<br>
            media@telos.com<br>
            (610) 564-6773</div>
          <div style="margin-bottom: 12pt; font-size: 12pt;"><font style="font-weight: bold;">Investors:</font><br>
            Brinlea Johnson<br>
            The Blueshirt Group&#160;on behalf of&#160;Telos Corporation<br>
            brinlea@blueshirtgroup.com<br>
            (415) 269-2645</div>
          <div><br>
          </div>
        </div>
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        </div>
        <div style="text-align: center;"><font style="font-weight: bold; color: #000000;">TELOS CORPORATION AND SUBSIDIARIES </font>&#160;</div>
        <div style="text-align: center; color: #000000; font-weight: bold;">CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</div>
        <div style="text-align: center; color: #000000; font-weight: bold;">(Unaudited)</div>
        <div style="text-align: center; color: #000000; font-weight: bold;">(amounts in thousands)</div>
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        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; text-align: left; color: #000000; width: 100%;" id="z2cba33947062401b84d30ceffe619f9e">

            <tr>
              <td valign="bottom" style="vertical-align: top; padding-bottom: 1px;">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: top; border-bottom: #000000 solid 1px;" colspan="6">
                <div style="text-align: center; font-weight: bold;">Three Months Ended March 31,</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: middle; padding-bottom: 1px;">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: middle; border-bottom: #000000 solid 1px;" colspan="2">
                <div style="text-align: center; font-weight: bold;"> 2021</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: middle; border-bottom: #000000 solid 1px;" colspan="2">
                <div style="text-align: center; font-weight: bold;">2020</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
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              <td valign="bottom" style="vertical-align: top;">
                <div>Revenue</div>
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              <td valign="bottom" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: top;" colspan="2">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: top;" colspan="2">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div style="text-indent: 18pt;">Services</div>
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              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
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              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>52,058</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
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              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>34,558</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; padding-bottom: 1px;">
                <div style="text-indent: 18pt;">Products</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>3,699</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>4,422</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; padding-bottom: 1px; background-color: #CCEEFF;">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>55,757</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>38,980</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div>Costs and expenses</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div style="text-indent: -12.75pt; margin-left: 30.75pt;">Cost of sales &#8211; Services (including $737 stock-based compensation expense)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>39,602</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>24,865</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; padding-bottom: 1px;">
                <div style="text-indent: -12.75pt; margin-left: 30.75pt;">Cost of sales &#8211; Products</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>1,798</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>1,873</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; padding-bottom: 1px; background-color: #CCEEFF;">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>41,400</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>26,738</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div>&#160;&#160;&#160;&#160;&#160;&#160;&#160;Selling, general and administrative expenses</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div style="text-indent: 18pt;">Sales and marketing (including $1,547 stock-based compensation expense)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>3,826</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>1,592</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div style="text-indent: 18pt;">Research and development (including $461 stock-based compensation expense)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>4,061</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>3,657</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; padding-bottom: 1px; background-color: #CCEEFF;">
                <div style="text-indent: 18pt;">General and administrative (including $10,925 stock-based compensation expense)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>19,964</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>6,590</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; padding-bottom: 1px;">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>27,851</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>11,839</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;">
                <div>Operating (loss) income</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>(13,494</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>403</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div>Other income (expenses)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div>&#160;&#160;&#160;&#160;&#160;&#160;&#160;Other (expense) income</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>(1,054</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>8</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
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              <td valign="bottom" style="vertical-align: top; width: 76%; padding-bottom: 1px;">
                <div>&#160;&#160;&#160;&#160;&#160;&#160;&#160;Interest expense</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>(196</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>(2,017</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">
                <div>)</div>
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            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;">
                <div>Loss before income taxes</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>(14,744</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>(1,606</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
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            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; padding-bottom: 1px;">
                <div>(Provision for) benefit from income taxes</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>(34</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>146</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;">
                <div>Net loss</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>(14,778</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>(1,460</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 1px;">
                <div>Less:&#160; Net income attributable to non-controlling interest</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>----</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>(784</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">
                <div>)</div>
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            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 1px; background-color: #CCEEFF;">
                <div>Net loss attributable to Telos Corporation</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>(14,778</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>(2,244</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 1px;">
                <div>Net loss per share attributable to Telos Corporation, basic</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>(0.23</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>(0.06</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">
                <div>)</div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 1px; background-color: #CCEEFF;">
                <div>Net loss per share attributable to Telos Corporation, diluted</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>(0.23</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>(0.06</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 1px;">
                <div>Weighted-average shares of common stock outstanding, basic</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>64,625</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>38,073</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 3px; background-color: #CCEEFF;">
                <div>Weighted-average shares of common stock outstanding, diluted</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>64,625</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>38,073</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>

        </table>
        <div>
          <div><br>
          </div>
        </div>
        <div style="text-align: center;"><font style="font-weight: bold;">TELOS CORPORATION AND SUBSIDIARIES </font>&#160;</div>
        <div style="text-align: center; font-weight: bold;">CONDENSED CONSOLIDATED BALANCE SHEETS</div>
        <div style="text-align: center; font-weight: bold;">&#160;(amounts in thousands)</div>
        <div>&#160;&#160;</div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; text-align: left; color: #000000; width: 100%;" id="z6071f7987d4648d89d25dc83c5fc162e">

            <tr>
              <td valign="bottom" style="vertical-align: top; padding-bottom: 1px;">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 1px;" colspan="2">
                <div style="text-align: center; font-weight: bold;">March 31, 2021</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: top; border-bottom: #000000 solid 1px;" colspan="2">
                <div style="text-align: center; font-weight: bold;">December 31,<br>
                  2020</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top;">
                <div style="text-align: center; font-weight: bold;">ASSETS</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: top;" colspan="2">
                <div style="text-align: center; font-weight: bold;">(Unaudited)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: top;" colspan="2">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top;">
                <div>Current assets</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: top;" colspan="2">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: top;" colspan="2">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div style="text-indent: 21.6pt;">Cash and cash equivalents</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>93,761</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>106,045</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div style="text-indent: 21.6pt;">Accounts receivable, net of reserve of $313 and $308, respectively</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>52,563</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>30,913</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div style="text-indent: 21.6pt;">Inventories, net of obsolescence reserve of $852 and $851, respectively</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>1,887</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>3,311</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div style="text-indent: 21.6pt;">Prepaid expenses</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>3,985</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>3,059</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div style="text-indent: 21.6pt;">Deferred program expenses</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>192</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>5</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; padding-bottom: 1px;">
                <div style="text-indent: 21.6pt;">Other current assets</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>778</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>781</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;">
                <div>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total current assets</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>153,166</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>144,114</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div style="text-indent: -12pt; margin-left: 12pt;">Property and equipment, including capitalized software development costs, net of accumulated&#160;&#160; depreciation
                  of $37,948 and $36,891, respectively</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>23,863</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>22,397</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div>Operating lease right-of-use assets</div>
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              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>1,305</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>1,464</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div>Goodwill</div>
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              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>14,916</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>14,916</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; padding-bottom: 1px; background-color: #CCEEFF;">
                <div>Other assets</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>990</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>926</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 3px;">
                <div>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total assets</div>
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              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 3px;" colspan="1">&#160;</td>
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                <div>$</div>
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              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 3px;" colspan="1">
                <div>194,240</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 3px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 3px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 double 3px;" colspan="1">
                <div>$</div>
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              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 3px;" colspan="1">
                <div>183,817</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 3px;" colspan="1">&#160;</td>
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        <div>
          <div><br>
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        <div style="text-align: center;"><font style="font-weight: bold;">TELOS CORPORATION AND SUBSIDIARIES </font>&#160;</div>
        <div style="text-align: center; font-weight: bold;">CONDENSED CONSOLIDATED BALANCE SHEETS</div>
        <div style="text-align: center; font-weight: bold;">&#160;(amounts in thousands)</div>
        <div>&#160;</div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; text-align: left; color: #000000; width: 100%;" id="zbed531973b454ab293ee5d21843b4312">

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              <td valign="bottom" style="vertical-align: top; padding-bottom: 1px;">
                <div>&#160;</div>
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              <td valign="bottom" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 1px;" colspan="2">
                <div style="text-align: center; font-weight: bold;">March 31, 2021</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: top; border-bottom: #000000 solid 1px;" colspan="2">
                <div style="text-align: center; font-weight: bold;">December 31,<br>
                  2020</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top;">
                <div style="text-align: center; font-weight: bold;">LIABILITIES AND STOCKHOLDERS&#8217; EQUITY</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: top;" colspan="2">
                <div style="text-align: center; font-weight: bold;">(Unaudited)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: top;" colspan="2">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top;">
                <div style="text-indent: -12pt; margin-left: 12pt;">Current liabilities</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: top;" colspan="2">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: top;" colspan="2">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div style="text-indent: -9pt; margin-left: 36pt;">Accounts payable and other accrued liabilities</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>31,765</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>20,899</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div style="text-indent: -9pt; margin-left: 36pt;">Accrued compensation and benefits</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>7,261</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>8,474</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div style="text-indent: -9pt; margin-left: 36pt;">Contract liabilities</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>6,751</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>5,654</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div style="text-indent: -9pt; margin-left: 36pt;">Finance lease obligations &#8211; short-term</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>1,368</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>1,339</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div style="text-indent: -9pt; margin-left: 36pt;">Operating lease obligations &#8211; short-term</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>660</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>677</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; padding-bottom: 1px;">
                <div style="text-indent: -9pt; margin-left: 36pt;">Other current liabilities</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>3,188</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>1,903</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;">
                <div style="margin-left: 57.6pt;">Total current liabilities</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>50,993</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>38,946</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div style="text-indent: -12pt; margin-left: 12pt;">Finance lease obligations &#8211; long-term</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>13,951</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>14,301</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div style="text-indent: -12pt; margin-left: 12pt;">Operating lease liabilities &#8211; long-term</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>788</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>941</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div style="text-indent: -12pt; margin-left: 12pt;">Deferred income taxes</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>661</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>652</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; padding-bottom: 1px;">
                <div>Other liabilities</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>1,883</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>1,873</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 1px; background-color: #CCEEFF;">
                <div style="margin-left: 57.6pt;">Total liabilities</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>68,276</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>56,713</div>
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              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div>&#160;</div>
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              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
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              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div>Commitments and contingencies</div>
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              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
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              <td valign="bottom" style="vertical-align: top; width: 76%;">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div>Stockholders&#8217; equity</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div style="text-indent: 15.3pt; margin-left: 16.149pt;">Common stock</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>103</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>103</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div style="text-indent: 15.3pt; margin-left: 16.149pt;">Additional paid-in capital</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>284,470</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>270,800</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div style="text-indent: 15.3pt; margin-left: 16.149pt;">Accumulated other comprehensive income</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>12</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>44</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; padding-bottom: 1px; background-color: #CCEEFF;">
                <div style="text-indent: 15.3pt; margin-left: 16.149pt;">Accumulated deficit</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>(158,621</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>(143,843</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
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            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 1px;">
                <div style="margin-left: 57.6pt;">Total stockholders&#8217; equity</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: 1px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 1px solid rgb(0, 0, 0);" colspan="1">
                <div>125,964</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: 1px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: 1px solid rgb(0, 0, 0);" colspan="1">
                <div>127,104</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 3px; background-color: #CCEEFF;">
                <div style="margin-left: 57.6pt;">Total liabilities and stockholders&#8217; equity</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
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              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>194,240</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
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              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>183,817</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
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        <div>
          <div><br>
          </div>
          <div><br>
          </div>
        </div>
        <div style="text-align: center;"><font style="font-weight: bold;">TELOS CORPORATION AND SUBSIDIARIES</font>&#160;</div>
        <div style="text-align: center; font-weight: bold;">CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</div>
        <div style="text-align: center; font-weight: bold;">(Unaudited)</div>
        <div style="text-align: center; font-weight: bold;">(amounts in thousands)</div>
        <div>&#160;</div>
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            <tr>
              <td valign="bottom" style="vertical-align: top; padding-bottom: 1px;">
                <div>&#160;</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: top; border-bottom: #000000 solid 1px;" colspan="6">
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              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; padding-bottom: 1px;">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: middle; border-bottom: #000000 solid 1px;" colspan="2">
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                <div style="text-align: center; font-weight: bold;">2021</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: middle; border-bottom: #000000 solid 1px;" colspan="2">
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              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
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            <tr>
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              </td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: top;" colspan="2">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: top;" colspan="2">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div style="text-indent: -9pt; margin-left: 36pt;">Net loss</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
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              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>(14,778</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
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              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
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              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>(1,460</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div style="text-indent: -9pt; margin-left: 36pt;">Adjustments to reconcile net loss to cash (used in) provided by operating activities:</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div style="text-indent: -30pt; margin-left: 84pt;">Stock-based compensation</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>13,670</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>----</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
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              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>----</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>956</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div style="text-indent: -30pt; margin-left: 84pt;">Depreciation and amortization</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>1,360</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>1,389</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
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              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>----</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>235</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div style="text-indent: -30pt; margin-left: 84pt;">Deferred income tax provision</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>9</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>10</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div style="text-indent: -30pt; margin-left: 84pt;">Other noncash items</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>(1</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">
                <div>)</div>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; padding-bottom: 1px; background-color: #CCEEFF;">
                <div style="text-indent: -30pt; margin-left: 84pt;">Changes in other operating assets and liabilities</div>
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              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>(9,584</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
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              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>614</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 1px;">
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              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>(9,318</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">
                <div>)</div>
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              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>1,743</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div>&#160;</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div style="text-indent: -12pt; margin-left: 12pt;">Investing activities:</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div style="text-indent: -9pt; margin-left: 36pt;">Capitalized software development costs</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>(2,165</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
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              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>(1,507</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; padding-bottom: 1px;">
                <div style="text-indent: -9pt; margin-left: 36pt;">Purchases of property and equipment</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>(480</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">
                <div>)</div>
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              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>(210</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">
                <div>)</div>
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            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 1px; background-color: #CCEEFF;">
                <div style="text-indent: -9pt; margin-left: 36pt;">Cash used in investing activities</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>(2,645</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>(1,717</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div>&#160;</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div style="text-indent: -12pt; margin-left: 12pt;">Financing activities:</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div style="text-indent: -9pt; margin-left: 36pt;">Payments under finance lease obligations</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>(321</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">
                <div>)</div>
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              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>(294</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">
                <div>)</div>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
                <div style="text-indent: -9pt; margin-left: 36pt;">Amendment fee paid to lender</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>----</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>(100</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
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            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 1px;">
                <div style="text-indent: -9pt; margin-left: 36pt;">Cash used in financing activities</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>(321</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>(394</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">
                <div>)</div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div style="text-indent: -12pt; margin-left: 12pt;">Decrease in cash and cash equivalents</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>(12,284</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                <div>(368</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">
                <div>)</div>
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            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; padding-bottom: 1px; background-color: #CCEEFF;">
                <div style="text-indent: -12pt; margin-left: 12pt;">Cash and cash equivalents, beginning of period</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>106,045</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px; background-color: #CCEEFF;" colspan="1">
                <div>6,751</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; padding-bottom: 3px; background-color: #CCEEFF;">
                <div style="text-indent: -12pt; margin-left: 12pt;">Cash and cash equivalents, end of period</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
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              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>93,761</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
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              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>6,383</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; background-color: #CCEEFF;">
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              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%;">
                <div style="margin-left: 27pt;">&#160;Cash paid during the period for:</div>
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              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76%; padding-bottom: 3px; background-color: #CCEEFF;">
                <div style="text-indent: 45pt;">Interest</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>196</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
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              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>739</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
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        </table>
        <div>
          <div><br>
          </div>
        </div>
        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; text-align: left; color: #000000; width: 100%;" id="zed819c56319e46bf9c41bb30d4872028">

            <tr>
              <td valign="bottom" style="vertical-align: top; padding-bottom: 1px;">
                <div style="margin-right: 9pt; font-weight: bold;">Enterprise EBITDA and Adjusted EBITDA (Unaudited)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 1px;" colspan="6">
                <div style="text-align: center; font-weight: bold;">Three Months Ended March 31,</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; padding-bottom: 1px;">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 1px;" colspan="2">
                <div style="text-align: center; font-weight: bold;"> 2021</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 1px;" colspan="2">
                <div style="text-align: center; font-weight: bold;">2020</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76.01%; background-color: rgb(204, 238, 255);">
                <div>Net (loss) income attributable to Telos Corporation</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; background-color: rgb(204, 238, 255);" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9.01%; background-color: rgb(204, 238, 255);" colspan="1">
                <div>(14,778</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 0.97%; background-color: rgb(204, 238, 255);" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; background-color: rgb(204, 238, 255);" colspan="1">
                <div>$</div>
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              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9.01%; background-color: rgb(204, 238, 255);" colspan="1">
                <div>(2,244</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 0.97%; background-color: rgb(204, 238, 255);" colspan="1">
                <div>)</div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76.01%;">
                <div>Adjustments:</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9.01%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 0.97%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9.01%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 0.97%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76.01%; background-color: rgb(204, 238, 255);">
                <div style="text-indent: 12.85pt;">Net income attributable to non-controlling interest</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9.01%; background-color: rgb(204, 238, 255);" colspan="1">
                <div>----</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 0.97%; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9.01%; background-color: rgb(204, 238, 255);" colspan="1">
                <div>784</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 0.97%; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76.01%;">
                <div style="text-indent: 12.85pt;">Non-operating expense (income)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9.01%;" colspan="1">
                <div>1,054</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 0.97%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9.01%;" colspan="1">
                <div>(8</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 0.97%;" colspan="1">
                <div>)</div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76.01%; background-color: rgb(204, 238, 255);">
                <div style="text-indent: 12.85pt;">Interest expense</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9.01%; background-color: rgb(204, 238, 255);" colspan="1">
                <div>196</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 0.97%; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9.01%; background-color: rgb(204, 238, 255);" colspan="1">
                <div>2,017</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 0.97%; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76.01%;">
                <div style="text-indent: 12.85pt;">Provision for (benefit from) income taxes</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9.01%;" colspan="1">
                <div>34</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 0.97%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9.01%;" colspan="1">
                <div>(146</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 0.97%;" colspan="1">
                <div>)</div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 76.01%; padding-bottom: 1px; background-color: rgb(204, 238, 255);">
                <div style="text-indent: 12.85pt;">Depreciation and amortization</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; padding-bottom: 1px; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; border-bottom: 1px solid rgb(0, 0, 0); background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9.01%; border-bottom: 1px solid rgb(0, 0, 0); background-color: rgb(204, 238, 255);" colspan="1">
                <div>1,360</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 0.97%; padding-bottom: 1px; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; padding-bottom: 1px; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; border-bottom: 1px solid rgb(0, 0, 0); background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9.01%; border-bottom: 1px solid rgb(0, 0, 0); background-color: rgb(204, 238, 255);" colspan="1">
                <div>1,389</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 0.97%; padding-bottom: 1px; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76.01%; padding-bottom: 1px;">
                <div>Enterprise EBITDA</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; border-bottom: 1px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9.01%; border-bottom: 1px solid rgb(0, 0, 0);" colspan="1">
                <div>(12,134</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 0.97%; padding-bottom: 1px;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; border-bottom: 1px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9.01%; border-bottom: 1px solid rgb(0, 0, 0);" colspan="1">
                <div>1,792</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 0.97%; padding-bottom: 1px;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76.01%; padding-bottom: 1px;">
                <div style="text-indent: 12.85pt; margin-right: 3.55pt;">Stock-based compensation expense</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; border-bottom: 1px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9.01%; border-bottom: 1px solid rgb(0, 0, 0);" colspan="1">
                <div>13,670</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 0.97%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; border-bottom: 1px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9.01%; border-bottom: 1px solid rgb(0, 0, 0);" colspan="1">
                <div>----</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 0.97%; padding-bottom: 1px;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 76.01%; padding-bottom: 3px; background-color: rgb(204, 238, 255);">
                <div style="text-indent: 4.6pt; margin-right: 3.55pt;">Adjusted EBITDA</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; padding-bottom: 3px; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; border-bottom: 3px double rgb(0, 0, 0); background-color: rgb(204, 238, 255);" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9.01%; border-bottom: 3px double rgb(0, 0, 0); background-color: rgb(204, 238, 255);" colspan="1">
                <div>1,536</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 0.97%; padding-bottom: 3px; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; padding-bottom: 3px; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 0.97%; border-bottom: 3px double rgb(0, 0, 0); background-color: rgb(204, 238, 255);" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9.01%; border-bottom: 3px double rgb(0, 0, 0); background-color: rgb(204, 238, 255);" colspan="1">
                <div>1,792</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 0.97%; padding-bottom: 3px; background-color: rgb(204, 238, 255);" colspan="1">&#160;</td>
            </tr>

        </table>
        <div>
          <div><br>
          </div>
          <div><br>
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        <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; text-align: left; color: #000000; width: 100%;" id="z15d08bec3cdd4156bbfd3cbb82508085">

            <tr>
              <td valign="bottom" style="vertical-align: bottom; padding-bottom: 1px;">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: top; border-bottom: #000000 solid 1px;" colspan="6">
                <div style="text-align: center; font-weight: bold;">Three Months Ended March 31, 2021</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 1px;" colspan="6">
                <div style="text-align: center; font-weight: bold;">Three Months Ended March 31, 2020</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; padding-bottom: 1px;">
                <div style="margin-right: 9pt; font-weight: bold;">Adjusted Net Loss and Adjusted EPS (Unaudited)</div>
                <div>&#160;</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 1px;" colspan="2">
                <div style="text-align: center; font-weight: bold;">Net Loss Attributable to Telos Corporation</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 1px;" colspan="2">
                <div style="text-align: center; font-weight: bold;">Diluted Earnings Per Share</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: middle; border-bottom: #000000 solid 1px;" colspan="2">
                <div style="text-align: center; font-weight: bold;">Net Loss Attributable to Telos Corporation</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 1px;" colspan="2">
                <div style="text-align: center; font-weight: bold;">Diluted Earnings Per Share</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 1px;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top;">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: top;" colspan="2">
                <div style="text-align: center;">(in thousands)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="2">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: top;" colspan="2">
                <div style="text-align: center; font-family: 'Times New Roman',Times,serif;">(in thousands)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="2">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: top; width: 52%; background-color: #CCEEFF;">
                <div>Reported GAAP measure</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
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                <div>$</div>
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                <div>(14,778</div>
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              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
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              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>(0.23</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
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              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
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              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>(2,244</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
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              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
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              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>(0.06</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
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              <td valign="bottom" style="vertical-align: top; width: 52%;">
                <div>Adjustments:</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" style="vertical-align: top; width: 52%; background-color: #CCEEFF;">
                <div style="text-indent: 12.9pt;">Non-operating expense (income)</div>
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              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>1,054</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>0.02</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>(8</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
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              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;" colspan="1">
                <div>----</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;" colspan="1">&#160;</td>
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              <td valign="bottom" style="vertical-align: top; width: 52%; padding-bottom: 1px;">
                <div style="text-indent: 12.9pt;">Stock-based compensation expense</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>13,670</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>0.21</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>----</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 1px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 1px;" colspan="1">
                <div>----</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 1px;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" style="vertical-align: bottom; width: 52%; padding-bottom: 3px; background-color: #CCEEFF;">
                <div>Adjusted non-GAAP measure</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>(54</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>0.00</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
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              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>(2,252</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>$</div>
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              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 3px; background-color: #CCEEFF;" colspan="1">
                <div>(0.06</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 3px; background-color: #CCEEFF;" colspan="1">
                <div>)</div>
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              <td valign="bottom" style="vertical-align: bottom; width: 52%; padding-bottom: 3px;">
                <div>Weighted-average shares of common stock outstanding</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 3px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 double 3px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 3px;" colspan="1">
                <div>64,625</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 3px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 3px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 3px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; padding-bottom: 3px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 3px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 3px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; border-bottom: #000000 double 3px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 3px;" colspan="1">
                <div>38,073</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 3px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 3px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 3px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; padding-bottom: 3px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 3px;" colspan="1">&#160;</td>
            </tr>

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        <div style="margin-right: 9pt;"><a name="z_gjdgxs"></a><a name="BDOStandard"></a><br>
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</SEC-DOCUMENT>
