TELOS CORP
For the period ended Dec 31, 2025. Filed Mar 16, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Mar 16, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
. Intangible Assets, Net
- INTANGIBLE ASSETS, NET
| Table 7.1: Details of Intangible Assets, Net | |||||||
|---|---|---|---|---|---|---|---|
| Estimated useful life · As of December 31, 2025 · As of December 31, 2024 | |||||||
| Gross Carrying Amount · Accumulated Amortization · Net Carrying Value · Gross Carrying Amount · Accumulated Amortization · Net Carrying Value | |||||||
| (in thousands) | |||||||
| Acquired technology | 8 years | $3,630 | $(2,004) | $1,626 | $3,630 | $(1,550) | $2,080 |
| Customer relationships | 3 years | 40 | (40) | — | 40 | (40) | — |
| Software development costs | 2 - 5 years | 43,411 | (23,576) | 19,835 | 27,366 | (15,761) | 11,605 |
| Subtotal | 47,081 | (25,620) | 21,461 | 31,036 | (17,351) | 13,685 | |
| In-process software development costs (1) | 8,820 | — | 8,820 | 16,725 | — | 16,725 | |
| Total | $55,901 | $(25,620) | $30,281 | $47,761 | $(17,351) | $30,410 | |
(1) In-process software development costs are costs for software that is not yet available for its intended use or general release to customers as of balance sheet date, thus not yet amortized.
In 2024, there were selected capital software projects for which the Company decided to discontinue the development and/or sale of all or part of certain solutions and certain projects that the Company ceased use before the end of its useful life. As a result of the Company's decision to abandon the associated software, the Company wrote off $11.7 million of the previously capitalized software costs, of which $5.3 million was recorded as "Impairment loss on intangible assets" under cost of sales within the Security Solutions segment, and $6.4 million was recorded as "Impairment loss on intangible assets" under operating expenses in the Company's consolidated statements of operations during the fiscal year ended December 31, 2024. No similar impairment charge was recorded on software development costs during the fiscal year ended December 31, 2025.
The Company did not recognize any impairment charges on other intangible assets for the periods presented.
| Table 7.2: Amortization Expense | ||
|---|---|---|
| For the year ended December 31, | ||
| 2025 | 2024 | |
| (in thousands) | ||
| Amortization expense related to: | ||
| Software development costs - cost of sales (1) | $7,814 | $6,015 |
| Software development costs - research and development | — | 2,286 |
| Other intangible assets - general and administrative | 454 | 461 |
| Total | $8,268 | $8,762 |
(1) Amortization expense for software development costs related to assets to be sold, leased, or otherwise marketed are charged under cost of sales on the consolidated statements of operations.
| Table 7.3: Estimated Future Amortization Expense of Intangible Assets, Net | |
|---|---|
| (in thousands) | |
| Year Ending December 31, 2026 | $9,277 |
| Year Ending December 31, 2027 | 6,669 |
| Year Ending December 31, 2028 | 3,208 |
| Year Ending December 31, 2029 | 1,793 |
| Year Ending December 31, 2030 | 514 |
| Thereafter | — |
| Total (1) | $21,461 |
(1) This does not include amortization of in-process software development costs, as estimation of the timing of future amortization expenses would be impractical.
Actual amortization expense in future periods could differ from these estimates as a result of impairments, future releases, future acquisitions, divestitures, and other factors.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.