SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2025


Table 15.1: Results of Operations by Business Segment (Quarter)
	For the Three Months Ended
	September 30, 2025						September 30, 2024
	Security Solutions		Secure Networks		Total		Security Solutions		Secure Networks		Total

	(in thousands)
Revenues	$	46,478	$	4,966	$	51,444	$	18,332	$	5,451	$	23,783
Cost of Sales
Depreciation and amortization (1)	2,354		2		2,356		1,488		2		1,490
Impairment loss on intangible assets (1)	—		—		—		5,333		—		5,333
Stock-based compensation expense (1)	142		12		154		117		(2)		115
Other segment items (2)	24,696		3,692		28,388		9,084		4,618		13,702
Total cost of sales	27,192		3,706		30,898		16,022		4,618		20,640
Gross profit	$	19,286	$	1,260	20,546		$	2,310	$	833	3,143
Operating expenses
Research and development expenses					1,899						2,409
Selling, general and administrative expenses					21,115						23,225
Impairment loss on intangible assets					—						6,373
Total operating expenses					23,014						32,007
Operating loss					(2,468)						(28,864)
Other income					511						983
Interest expense					(136)						(157)
Loss before income taxes					(2,093)						(28,038)
Provision for income taxes					(21)						(17)
Net loss					$	(2,114)					$	(28,055)


Table 15.2: Results of Operations by Business Segment (Year-to-Date)
	For the Nine Months Ended
	September 30, 2025						September 30, 2024
	Security Solutions		Secure Networks		Total		Security Solutions		Secure Networks		Total

	(in thousands)
Revenues	$	104,770	$	13,258	$	118,028	$	54,839	$	27,061	$	81,900
Cost of Sales
Depreciation and amortization (1)	5,569		5		5,574		4,800		7		4,807
Impairment loss on intangible assets (1)	—		—		—		5,333		—		5,333
Stock-based compensation expense (1)	450		43		493		455		145		600
Other segment items (2)	57,107		10,194		67,301		26,050		21,299		47,349
Total cost of sales	63,126		10,242		73,368		36,638		21,451		58,089
Gross profit	$	41,644	$	3,016	44,660		$	18,201	$	5,610	23,811
Operating expenses
Research and development expenses					4,982						7,038
Selling, general and administrative expenses					61,051						56,346
Impairment loss on intangible assets					—						6,373
Total operating expenses					66,033						69,757
Operating loss					(21,373)						(45,946)
Other income					1,625						3,299
Interest expense					(424)						(492)
Loss before income taxes					(20,172)						(43,139)
Provision for income taxes					(63)						(51)
Net loss					$	(20,235)					$	(43,190)

(1) The significant segment expense categories and amounts align with the segment-level information regularly provided to the CODM.

(2) Other segment items for each reportable segment include direct labor, direct subcontractor costs, direct materials and inventory, other direct non-labor costs, fringes, overhead, and facility costs.