2021 Davidson Annual Report : simplebooklet.com

MG John W. Holly (USA, Ret.) PresidentLETTER FROM THE PRESIDENT2021 was a tough year for our Davidson family. Losing our Executive Chair, Dorothy, in May was both a personal and professional blow. Dorothy was instrumental in revitalizing our company after the death of her husband and our Founder, Julian. We shall always cherish the Davidsons as we continue to build the company on their legacy.The global pandemic continued to place increased demands on our business to operate across multiple sets of guidance from our customer base; yet our employees continued to focus on the mission and performance excellence. I am extremely proud of their efforts in this ever-evolving environment.In spite of these challenges, our company continued to grow and provide excellent support to our customers. Long-standing programs such as the Ground-Based Midcourse Defense system, essential support to our Nation’s security, saw continued growth. We also began work on the Ground-Based Strategic Deterrent, joining the Lockheed Martin Skunk Works Advanced Battle Management Team and delivered our modeling and simulation expertise to the Army’s Ground Vehicle Support Center. These are just a few examples of our expanding customer base in critical programs supporting America’s National Defense. We closed 2021 on a roll. The ribbon-cutting of our new wholly-owned subsidiary, QuantumAI, signaled a major initiative. Exploiting our Davidson-developed intellectual property places us at the forefront of a major leading-edge technology initiative. Finally, we signed a Memorandum of Understanding with our new British partner, Mission Advisory PLC. These initiatives have positioned Team Davidson for an extremely promising 2022.As always, we kept our team members at the forefront; recognizing excellence, building new leaders, and further expanding our robust employee beneﬁts program.Our focus remains on creating a unique culture emphasizing performance excellence and integrity, which, when combined with leading-edge technology, forms the foundation for Davidson’s future growth strategy. I offer my sincere and personal thanks to our employees who diligently dedicate themselves to design, deliver and defend.Respectfully, MG John W. Holly (USA, Ret.), President pg 1

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Davidson is committed to hiring and retaining a diverse workforce. We are an Equal Opportunity Employer, and do not discriminate on the basis of race, color, religion, creed, sexual orientation, gender identity, marital status, national origin, age, veteran status, disability, or any other protected class.Leadership Training• SLT: DiSC assessment (Huntsville Leadership)• SLT & Mid-Level Managers (Truist Leadership) • Building Better - Change • Light the Spark- Creating an Engaged Workforce • The Beliefs that Drive Results • Managing Stress Through ResilienceSuccession Planning• We continue to identify individuals who are ready now or need to be ready within 1-3 years to ﬁll key personnel positionsPerformance Objectives• Leaders are held accountable by identifying goals and objectives to maintain the base and growth of the company based on areas of priorities: ﬁnancials, people and individual goals and objectivesBusiness Indicators• Additional work with new & existing contracts• Product & scope development focus• Succession• Knowledge achieved with training• PromotionsFemale Engineers to Male Engineers21%Female79%MaleDavidson populated by Millennials44%DemographicsGrowth in Employee Base84% Retention RateDavidson’s strategic imperatives are topped with a focus on our people; attracting and retaining premier talent from diverse backgrounds and experience levels, and fostering an environment where all team members feel welcomed and valued.OUR PEOPLEpg 3

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QuantumAI is a wholly-owned subsidiary established by Davidson in August 2021. QuantumAI launched with a focus on applying artiﬁcial intelligence techniques to complex, high-stakes planning and optimization challenges and providing a strong, highly-secure communication pathway using quantum computing to generate and distribute keys; essentially creating a new class of network to address high-stakes artiﬁcial intelligence domains across commercial and federal markets. Distinct from traditional cloud-based providers, QuantumAI applies advanced algorithms and patent-pending quantum computing techniques to deliver breakthrough advantages in data security and AI. The team is lead by our Davidson Chief Technology Ofﬁcer and Executive Vice President, Lisa Hammitt, a technology veteran with more than 35 years of industry experience, most recently as the head of AI for VISA. Within just 5 months of our launch, QuantumAI has already developed and deployed solutions which are in use by a major defense OEM. The company continues to add customers in the national security space and from across multiple commercial sectors including critical infrastructure and ﬁnance, among others.Learn more about how QuantumAI is radically redeﬁning the nature of high-stakes data by visitingINTRODUCING QUANTUMAIpg 4

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Where We OperateThe Davidson enterprise is anchored by our corporate headquarters in Huntsville, Alabama and stretches from our teams located in Ft. Greely, Alaska, to Colorado Springs, Colorado, to Panama City, Florida, with additional ﬁeld locations in Vandenberg, California, Michoud, Louisiana, & Warren, Michigan. Our teams work in tandem to ensure we consistently deliver the quality that deﬁnes ‘One Davidson.’What We Do Advanced Cybersecurity Architecture• Cybersecurity Manager (CSM) detection and response• Cyber compliance• Computer network defense (CND)• Security operations center• Cyber training battlegrounds• Information assurance and software assurance• Risk mitigation and vulnerability management• Secure virtual IT solutionsTeam Davidson integrates advanced cybersecurity architectures capable of leveraging artiﬁcial intelligence and machine learning in all our solutions. We are spearheading the design of a new class of network architectures born to optimize and exploit complex AI techniques.Artiﬁcial Intelligence & Machine Learning • New class of network optimized for complex AI • Unique AI-powered capabilities to amplify privacy • Ensuring data encryption and quantum level management • Richer, more comprehensive modeling environment • Distributed, edge device centric landscape • Machine Learning • Semantic Reconciliation • Real-Time AnalyticsWe are delivering new capabilities leveraging our patent-pending, unique AI-powered capabilities to amplify privacy and ensure data encryption are managed at the quantum level – resulting in greater Cyber Resilience for the defense and security of our Nation.Modeling & Simulation • Physics-based model development • Radar signal processing models • Hardware-in-the-loop (HWIL) • Sensor fusion algorithms • Track ﬁltering, correlation, prediction, and discrimination • Missile design and analysis, booster modeling • Orbital mechanics • Guidance, navigation & control (GNC)Davidson possesses the capability for highly advanced modeling and simulation. Davidson develops medium to high ﬁdelity models of U.S. Missile Defense Systems and complex threat missile systems. Our MACSIS program has infrastructure interconnected with Big Data Repository for shared capabilities and machine learning. Davidson employs a great variety of subject matter experts to allow us to create models with the highest level of accuracy.Systems Engineering & Integration • Engineering analysis trades and design • Veriﬁcation & Validation (V&V) • System effectiveness analyses • Reliability, availability & maintainability (RAM) analyses • Lethality and debris analyses • Independent review, ﬂight, and failure review teams • Agile scrum and continuous integration & test • DevSecOps • Object-oriented designDavidson has signiﬁcant experience creating complex systems for the Missile Defense Agency. Davidson ensures that the systems used to defend our country are fortiﬁed, functional, and secure to the highest degree. Davidson is a trusted partner when it comes to complex engineering.OUR ENTERPRISE 4 core capabilities:pg 5

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Davidson’s corporate sustainability program works to better the environment, beneﬁts our employees by giving them a healthier and safer work environment, improves our bottom line and positions us competitively.RecyclingTo partner with other organizations in bettering the environment and use of products, Davidson recycles in both the corporate ofﬁce and satellite ofﬁce in Colorado Springs.HVAC Davidson Properties is responsible to ensure the HVAC system at the corporate ofﬁce is functioning in an efﬁcient and operational manner.Paternity Leave Permits an employee one-week time off to care for and bond with a newborn or a newly adopted or placed foster child. Flexible Scheduling Davidson offers a telework schedule for employees to ensure a work life balance is met while not jeopardizing the mission success of the company.Education Opportunities Employees are encouraged to utilize the education beneﬁt to further their knowledge in attending trainings, achieving certiﬁcations and furthering their skills.Investments in Local Public Projects • Davidson Giving Grant Q1 & Q3 • Davidson Giving Tree • Leadership Greater Huntsville Trustee• Alabama School of Cyber TechnologySupplier Responsibility Davidson strives to conduct business with reputable suppliers throughout our supply chain. The MedPad product is being sourced and manufactured with a “Made in the USA” mindset while the packaging for the product will be sourced using recycled and sustainable materials. SUSTAINABILITYpg 8

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Risk AssessmentOver the past year, Davidson remained in a posture of ready and functioned with great resiliency in the face of several waves of risk:During 2021, we continued to mature our Enterprise Risk Assessment process. To ensure sustainable success and remain competitive, Davidson consciously takes reasonable risks and continuously explores and develops opportunities. Our sensible approach towards risk-taking provides the framework for Davidson to conduct business at a high level of integrity in an environment in which highly intelligent people understand their responsibilities and are knowledgeable, mindful and committed to doing what is right. RISK PHILOSOPHY pg 9PeopleWhile we wished COVID-19 was not continuing into 2021, the Davidson leadership team established a covid mitigation plan to ensure employees were safe, maintained a ﬂexible schedule which allowed for a liberal remote work opportunity and provided continuous communication efforts through functional managers leading team tag-ups and company updates from our President/CEO, John Holly. Davidson was not excused from effects of “The Great Resignation” which was also a fall out due to the pandemic. While the company retention goal was challenged, the Davidson team grew across all locations where Davidson’s footprint resides as well as in new areas. We responded to the challenge by becoming more creative in talent acquisition, intentional activity in social spaces and identifying the root of what really matters to people joining the Davidson team and acting on it. We believe this is what lead to Davidson winning the war for talent to include onboarding more team members during 3rd and 4th quarter than in 1st and 2nd quarter. Risk Assessment: High (and will remain High as the competition for talent continues.)Operations Being a premier technology company, Davidson is at the forefront of solving complex technical challenges and developing critical technologies and tools for our customers and our nation. Based on performance reports rated by our customers, our highly skilled team has operated and met performance excellence objectives set forth by the leadership team. Additionally, we established a new wholly-owned subsidiary to leverage the intellectual property developed by QuantumAI. Risk Measurement: LowFinancials The leadership team agreed that our revenue growth retain a positive, even though this was a risk from a ﬁnancial perspective due to the continued effects of the pandemic and political arena. We sustained our sales and exceeded our proﬁtability goals and objectives. Advancing proﬁtability metrics allows supporting our long-term strategy which creates opportunity for Davidson to select areas of investment that align with the company’s mission. Risk Measurement: LowCyber Security Davidson experienced multiple cyber threats that could have resulted in signiﬁcant ﬁnancial impacts and loss of intellectual properties; however, we were able to mitigate those potential threats by improving the tool sets that make up our cyber resiliency initiatives. Cyber Security measures high in risk because it is present and ever changing within our industry and most importantly it impacts every business unit and person in the organization. Security awareness and education is an area that can be highlighted to be a signiﬁcant improvement to our resiliency program. The addition of an industry leading phishing solution to support our quarterly awareness trainings were beneﬁcial as it supplied our employees with the tools to be mindful of potential threats as they perform their responsibilities. Risk Measurement: High(will remain High due to the environment in which we operate.)

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Weapon Systems Cyber Resilience OperationsThe Weapon Systems Cyber Resilience (WSCR) operation consists of multiple contracts to include a variety of customers such as the Missile Defense Agency (MDA), US Air Force, US Army, and many of the large Government Prime Contractors. WSCR programs perform agile and complex engineering across multiple domains including System Engineering & Integration, Modeling & Simulation (M&S), Test & Evaluation (T&E), and Cybersecurity. WSCR programs are high performing, multi-year contracts, both prime and sub, that help fulﬁll the mission of protecting the U.S. Homeland, Warﬁghters and our allies.OPERATIONSpg 10• Advanced Research Center (ARC) DTechLogic LLC., (joint venture between Davidson Technologies Inc. and nLogic, LLC) executes the MDA ARC prime contract. This JV team provides the infrastructure and cybersecurity engineering necessary to support Ballistic Missile Defense System (BMDS) Hardware-in-the-Loop (HWIL) and related Ground Testing in a Continuous Integration/Continuous Agile Testing (CI/CAT) environment in the MDA ARC.• Ground-based Midcourse Defense (GMD) The GMD element of the Ballistic Missile Defense System provides Combatant Commanders the capability to engage and destroy intermediate and long-range ballistic missile threats in space to protect the United States. Davidson provides Cybersecurity Engineering - Program Protection (ISSO, ISSM, Network Intrusion Monitoring), Interceptor Systems Engineering; Integration and Test, Range Interface Test Equipment (RITE) Unit development & operation, Operations & Sustainment (Remote-site Maintenance, Obsolescence), and Program Management (Chief Engineer Support, PM&P, Program Scheduling). • Davidson also supports the ICBM Flight Test, Telemetry and Termination (FT3) Program which veriﬁes the operational readiness of the nation’s ICBM ﬂeet through routine ﬂight tests, and we are involved in the installation of launch support systems and other ﬂight test unique equipment for our customer in support of MDA.• MDA Automated Cyber Secure Information System (MACSIS) Davidson has been tasked, as Prime Contractor, to build a Hyper Converged Infrastructure (HCI) platform with High Performance Computing (HPC) power to develop advanced capabilities on. We are also leading the development of a Virtual Desktop Infrastructure (VDI) for Modeling & Simulation (M&S) power users. Our efforts thus far have led to the delivery of the following capabilities to our MDA customer: » Real-time analysis for the development and deployment of new Cyber infrastructure and capabilities » Secure data gathering, information analysis, tool development, and modeling/simulation infrastructure interconnected with Big Data Repository for shared capabilities and machine learning » Highly available architecture allowing secure access from anywhere at any time with no opportunity for data spills or unintended exposure

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• Wildcat: In support of USAF, MDA, and Lockheed Martin Aeronautics, Davidson is conducting research & development to enhance hardware and software solutions to execute mission operations for air and space domain assets. These solutions adhere to the Open Mission System (OMS) architecture and the Universal Command and Control Initiative (UCI) message standard. We have been selected by Lockheed to provide integrated solutions for modeling and simulation of software services and their connectivity; developmental tools including facilitating a DevSecOps pipeline; and operational applications to critical Warﬁghter capabilities. Davidson’s Artiﬁcial Intelligence and Machine Learning advancements are being leveraged to enhance user evaluation of sensory data, intelligence data, and mission planning data to optimize the Air Operation Center (AOC) kill-chain. Lockheed Martin is relying on Davidson’s solutions to ensure high value outcomes and rapid adaptation to operational needs.• MDA Engineering Team - Industry (MET-I) For the MDA, Davidson performs diverse, complex systems engineering tasks and provides advanced technology data deliverables that are associated with the Ballistic Missile Defense System (BMDS). Our actions include (BMDS) integration planning, ground and ﬂight test deﬁnition & development efforts, including targets requirements, ground test scenario development/certiﬁcation and test performance analysis.• Mission Planning, Advanced Decision Support Data Analytics Tools, & Cyber Hardening (MATCH) Davidson supports four main areas of work for SMDC: » RRCTIC (Rapidly Reconﬁgurable Cyber Test & Integration Capability), a virtualization platform with hardware in the loop capabilities designed to virtually recreate and evaluate multiple Systems Under Test (SUTs) for the purpose of identifying critical system vulnerabilities which could impact real-world mission systems » Developing the RRCTIC Dashboard, a software solution for conﬁguring SUT system and network properties operating on the RRCTIC and allowing the rapid creation, testing, and reconstitution of these virtual environments » The Cyber Mission System Fusion Cell (CMSFC), located in Colorado Springs, CO, which is SMDC’s Cyber Security and Defensive Cyber Operations (DCO) Tier II support, monitoring systems supporting critical SMDC missions » Supporting accreditation and system security implementation efforts for the Space and Strategic Systems Directorate (SSSD)• Integrated Battle Command System (IBCS) The Integrated Air and Missile Defense Battle Command System is a software-deﬁned, hardware-enabled system that integrates and optimizes every-sensor/best-effector operations using a net-centric Integrated Fire Control Network that senses, identiﬁes, tracks, and defeats air and missile threats. Our IBCS involvement has grown to support shelters that will be outﬁtted as Integrated Air and Missile Defense Battle Command System (IBCS) engagement operations centers (EOC) for WISŁA Poland. Davidson conducts the following actions for the Army’s IBCS: » Operating System & Infrastructure (OIV) » System Engineering & Integration (SE&I) » Flight Test software development » Test & Evaluation » System Administration » Engineering Services and Science Capability » Augmentation (ESSCA) Davidson supports the Avionics and Software Ground Systems Test actions for the Space Launch System (SLS) Program. We are speciﬁcally responsible for the development, support, and maintenance of the Integrated Avionics Test Facilities (IATF) for the Space Launch System OPERATIONS (CONT.)pg 11

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Program (SLSP). This includes the Software Development Facility (SDF), System Integration Test Facility (SITF), System Integration Lab (SIL) and various SLS Vehicle emulators delivered to other Program Elements (Multi-Purpose Crew Vehicle (MPCV), JSC, KSC, and Stennis). Data generated by these facilities will be used in the Veriﬁcation & Validation process for the integrated Flight Software (FSW) and avionics suite of the SLS vehicle and its low earth orbit (LEO) mission.• Civil Engineer Control System (CECS) Davidson supports the Air Force Civil Engineering Center (AFCEC) in their Civil Engineer (CE) Control System (CS) Cybersecurity Initiative. These tasks entail supporting AFCEC/CO and the Air Force Civil Engineer Authorizing Ofﬁcial (AO) efforts in managing cyber risk; and identifying, mitigating, monitoring, and predicting cyber vulnerabilities related to CE CS. Davidson also provides service capabilities required for interconnectivity, interoperability, cyber security, and program management of technical projects and network operations for CE Control Systems.OPERATIONS (CONT.)pg 12Weapon Systems Engineering Operations• The Weapon Systems Engineering Operation consists of multiple contracts including a variety of customers including the Missile Defense Agency (MDA), US Air Force, and the US Army. Weapon Systems Engineering programs perform complex engineering across multiple domains including missile defense, Modeling & Simulation (M&S), Test & Evaluation (T&E), Cybersecurity, Software Engineering, and Systems Engineering. Weapon Systems Engineering programs are high performing, multi-year contracts that help fulﬁll the mission of protecting the U.S. Homeland, Warﬁghters and our allies.• Specialized Warﬁghter Development Contract (SWDC) provides complex software and systems engineering for medium to high ﬁdelity modeling of Missile Defense System (MDS) elements such as Overhead Persistent Infrared Radar (OPIR) systems, foreign missile threats, and an end-to-end simulation of all MDS assets. Davidson planned and performed over 500 missile defense events to train Warﬁghters and assist in developing Tactics, Techniques Procedures (TTPs), and concepts of operations (CONOPS) to defend against missile attacks. Finally, the development engineering for the integration of current, new and emerging MDA, OPIR, and other US Government space assets and capabilities for use with the BMDS; operation of MDA on-orbit experimental and demonstrator space assets; specialized support BMDS ﬂight and ground tests; perform and facilitate cybersecurity, risk management and conﬁguration management of the Missile Defense Space Center. Davidson began assisting in the designing and implementing algorithm solutions for a broad range of missile defense sensor exploitation activities.• Radar Test Contract (RTC) addresses the system engineering, software development, test and veriﬁcation of Open Systems Architecture Sensor Model (OSM) software builds, as well as end user support activities. OSM consists of software models in tactical alignment with current AN/TPY-2, SBX, UEWR, and Cobra Dane ground-based radar systems. Davidson engineers are designing and implementing the functionality that is necessary to replicate or represent new tactical radar processing or performance.

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• Davidson has begun engineering performance on the Ground Based Strategic Deterrent (GBSD) contract to develop a new land-based intercontinental ballistic missile system currently in the early stages of development. GBSD is slated to replace the ageing Minuteman III missiles and provide a system that is capable, safe, secure, and reliable – and ready at a moment’s notice.• Sustainment and Modiﬁcation of Radar (SMORS) provides for the on-going modernization, sustainment, and modiﬁcation of US Air Force ground-based radars and their associated systems, subsystems, support systems, and equipment. Davidson is aiding in protecting the early warning radar systems through rigorous testing and deﬁning/applying cybersecurity architectures and standards.• The Ground Vehicle Support Center (GVSC) is one of the Army’s largest weapon systems research, development, and sustainment organizations with the mission of providing and sustaining mobility, lethality, and survivability for soldiers, other services, and our Allies through ground combat, automotive, marine, and armaments technologies. Davidson is also developing an end-to-end simulation of an Army Active Protection System designed to protect Army combat vehicles and the operating personnel. • Davidson continued to provide cybersecurity solutions and leadership to ensure Army networks and combat vehicles maintain positive cybersecurity posture. • Davidson is also developing an end-to-end simulation of an Army Active Protection System (APS) designed to evaluate current APS capabilities and perform trade studies to enhance the APS to better protect Army combat vehicles and the operating personnel.OPERATIONS (CONT.)pg 13

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Executive Leadership TeamOur BoardMeredith PayneSr. VP of Business Development, Strategy and CommunicationsRick PowersSr. VP Weapon Systems EngineeringMandy KerceChief of StaffEric HandyChief Trust Ofﬁcer and General Manager for Artiﬁcial Intelligence and DataLaura BurkeChief Financial OfﬁcerJames GatewoodChief Information Security Ofﬁcer and Vice President of Information TechnologyMG John W. Holly (USA, Ret.)Chairman, President and CEOLisa HammittExecutive Vice President and Chief Technology OfﬁcerJoey LearySr. VP Weapon Systems Cyber ResilienceMichael A. DeMaioribusMember, Board of DirectorsGeneral Ron Burgess (Ret.)Member, Board of DirectorsSenior Leadership TeamRoderic SteakleyMember, Board of DirectorsDavidson Technologies, Inc. (Davidson) Board of Directors was established in 1996 under the Articles of Incorporation, standing up the governance model in the bylaws. We believe a strong corporate governance framework and culture translates to a strong company, which delivers for its shareholders. Executive and senior leaders are committed to conducting business in an ethical, fair and transparent manner in accordance with highest standards. Our robust corporate governance framework fosters a culture of compliance that values personal and corporate integrity, accountability, and continuous improvement.OUR LEADERSHIPpg 15

2021 Davidson Annual Report

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