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REVISION OF PRIOR YEAR INTERIM FINANCIAL STATEMENTS
 9 Months Ended
Sep. 30, 2022
Accounting Changes and Error Corrections [Abstract]  
REVISION OF PRIOR YEAR INTERIM FINANCIAL STATEMENTS REVISION OF PRIOR YEAR INTERIM FINANCIAL STATEMENTS
(a)Expense Classification
During the third quarter of 2021, the Company identified that stock compensation for a single individual was incorrectly charged to "cost of sales - services" instead of "general and administrative expense." The total amount of stock compensation incorrectly charged to the cost of sales was $0.3 million, of which $0.1 million was related to the first quarter of 2021, and $0.2 million related to the second quarter of 2021. The Company corrected the error during the third quarter of 2021.
In addition, the Company identified that the allocation of stock compensation for two of the Company's overhead cost pools was incorrectly charged to "cost of sales" instead of "general and administrative expense" during the second quarter of 2021. The total amount of the allocated stock compensation incorrectly charged to the cost of sales was $0.7 million, which the Company corrected during the third quarter of 2021.
(b)Revenue Recognition
In the third quarter of 2021, the Company identified $1.1 million in revenue related to the stub period of a newly awarded contract that should have been recognized as income during the second quarter of 2021. The Company initially corrected the error during the third quarter of 2021. Additionally, and related to this contract, in the fourth quarter of 2021, the Company identified $0.3 million of products revenue for the second quarter of 2021 and $0.4 million of products revenue for the third quarter of 2021 that should be classified in the condensed consolidated statements of operations as services revenue.
(c)Software Capitalization
In the third quarter of 2021, the Company erroneously recorded a $0.5 million expense related to a software project whose development milestones were achieved, and therefore, costs associated with the software should have been capitalized.
(d)Recording of Expense
In the third quarter of 2021, the Company erroneously recorded a $0.9 million expense related to a contract that had not yet begun. In the fourth quarter of 2021, the Company reversed the expense previously recorded and does not plan to record the expense until the start of the period of performance.
In the fourth quarter of 2021, the Company identified that a third-quarter RSU was awarded to an individual, but that award was erroneously excluded from its calculation of compensation expense, causing compensation expense to be understated by $0.2 million in the third quarter of 2021.
(e)Cash Flow
The Company erroneously presented the $2.4 million final payment to fully acquire all membership interest of Telos ID as an operating activity on the condensed consolidated statements of cash flows. The Company corrected the presentation to properly reflect the final payment within financing activities on the consolidated statements of cash flows in the fourth quarter of 2021.
(f)    Valuation of Acquired Assets
In the fourth quarter of fiscal year 2021, the Company identified a necessary update to a previously established assumption related to the valuation of its 2021 acquisition. The change in assumption resulted in additional goodwill of $1.3 million and a reduction of the intangible asset for the same amount that should have been reported during the third quarter of 2021.
Table 18.1: Impact of the Correction to the Condensed Consolidated Statement of Operations
For the Three Months Ended September 30, 2021For the Nine Months Ended September 30, 2021
Previously ReportedError CorrectionAs AdjustedPreviously ReportedError CorrectionAs Adjusted
(in thousands, except per share amounts)
Revenue - services$63,690 $(735)$62,955 $163,366 $650 $164,016 
Revenue - products6,376 (350)6,026 15,017 (650)14,367 
Revenue70,066 (1,085)68,981 178,383 — 178,383 
Cost of sales - services40,031 106 40,137 109,134 (898)108,236 
Costs and expenses43,998 106 44,104 117,400 (898)116,502 
Research and development5,396 (533)4,863 14,783 (533)14,250 
General and administrative20,562 (823)19,739 69,271 181 69,452 
Selling, general and administrative expenses31,321 (1,356)29,965 98,287 (352)97,935 
Operating loss(5,253)165 (5,088)(37,304)1,250 (36,054)
Loss before income taxes(5,428)165 (5,263)(38,888)1,250 (37,638)
Net loss(5,387)165 (5,222)(38,894)1,250 (37,644)
Net loss attributable to Telos Corporation(5,387)165 (5,222)(38,894)1,250 (37,644)
Net loss per share attributable to Telos Corporation
Basic$(0.08)$— $(0.08)$(0.59)$0.02 $(0.57)
Diluted$(0.08)$— $(0.08)$(0.59)$0.02 $(0.57)
Table 18.2: Impact of the Correction to the Condensed Consolidated Statement of Comprehensive Loss
For the Three Months Ended September 30, 2021For the Nine Months Ended September 30, 2021
Previously ReportedError CorrectionAs AdjustedPreviously ReportedError CorrectionAs Adjusted
(in thousands)
Net loss$(5,387)$165 $(5,222)$(38,894)$1,250 $(37,644)
Comprehensive loss attributable to Telos Corporation(5,400)165 (5,235)(38,934)1,250 (37,684)
Table 18.3. Impact of the Correction to the Condensed Consolidated Statement of Cash Flows
For the Nine Months Ended September 30, 2021
Previously ReportedError CorrectionAs Adjusted
(in thousands)
Net loss$(38,894)$1,250 (37,644)
Stock-based compensation47,197 181 47,378 
Changes in other operating assets and liabilities(5,900)1,538 (4,362)
Cash used in operating activities6,668 2,969 9,637 
Capitalized software development costs(6,139)(533)(6,672)
Cash used in investing activities(13,709)(533)(14,242)
Distribution to Telos ID Class B member – non-controlling interest
— (2,436)(2,436)
Cash provided by financing activities35,131 (2,436)32,695 
Table 18.4. Impact of the Correction to the Condensed Consolidated Statement of Changes in Stockholders' Equity
For the Three Months Ended September 30, 2021For the Nine Months Ended September 30, 2021
Previously ReportedError CorrectionAs AdjustedPreviously ReportedError CorrectionAs Adjusted
(in thousands)
Net loss$(5,387)$165 $(5,222)$(38,894)$1,250 $(37,644)
Additional paid-in capital354,119 181 354,300 354,119 181 354,300 
Accumulated deficit - beginning balance(177,350)1,085 (176,265)(143,843)— (143,843)
Accumulated deficit - ending balance(182,737)1,250 (181,487)(182,737)1,250 (181,487)
Total Stockholders' equity171,491 1,431 172,922 171,491 1,431 172,922