VirnetX Holding Corp Files 2023 Annual Report on Form 10-K

TL;DR

<b>VirnetX Holding Corp has filed its 2023 10-K, detailing financial performance and patent-related business activities.</b>

AI Summary

VirnetX Holding Corp (VHC) filed a Annual Report (10-K) with the SEC on March 15, 2024. VirnetX Holding Corp filed its 10-K for the fiscal year ending December 31, 2023. The company's primary business is patent ownership and licensing. The filing includes detailed financial information for the fiscal years 2023 and 2022. Key financial statement data such as retained earnings and accumulated other comprehensive income are provided for multiple periods. Information regarding stock options and equity incentive plans is also detailed.

Why It Matters

For investors and stakeholders tracking VirnetX Holding Corp, this filing contains several important signals. This 10-K provides a comprehensive overview of VirnetX's financial health and operational status for the fiscal year 2023, crucial for investors assessing the company's value and future prospects. The detailed information on patents and licensing activities is central to understanding VirnetX's core business model and its potential for revenue generation through intellectual property.

Risk Assessment

Risk Level: medium — VirnetX Holding Corp shows moderate risk based on this filing. The company's business model relies heavily on patent litigation and licensing, which can be unpredictable and subject to significant legal and financial risks, as indicated by the nature of its operations.

Analyst Insight

Investors should review the detailed risk factors and financial statements in the 10-K to understand the volatility associated with VirnetX's patent-centric business model.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting Period)
• 2024-03-15 — Filing Date (Date of Submission)
• 0.05 — P5Y (Placeholder value, likely related to share data)
• 223 — P1Y (Placeholder value, likely related to share data)

Key Players & Entities

• VirnetX Holding Corp (company) — Filer
• DE (company) — State of Incorporation
• 2023-12-31 (date) — Fiscal Year End
• 2024-03-15 (date) — Filing Date
• Zephyr Cove, NV (company) — Business Address
• PASW INC (company) — Former Company Name
• PACIFIC SOFTWORKS INC (company) — Former Company Name
• L2 Holdings LLC (company) — Subsidiary/Investment

FAQ

Risk Factors

• Patent Litigation and Enforcement [high — legal]: The company's primary revenue source is derived from patent licensing and litigation, which involves significant legal complexities and uncertainties.
• Dependence on Litigation Outcomes [high — financial]: VirnetX's financial results are highly dependent on the success and timing of its patent infringement lawsuits and settlement agreements.
• Market Acceptance of Licensed Technologies [medium — market]: The success of VirnetX's licensing strategy depends on the adoption and market acceptance of the technologies covered by its patents.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-15: Filing Date — Date the 10-K was officially filed with the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary document filed by VirnetX, containing detailed financial and operational information.)

Key Financial Figures

• $0.0001 — ich registered Common Stock, par value $0.0001 per share VHC NYSE Securities reg
• $24.8 billion — y market size is projected to grow from $24.8 billion in 2022 to over $60 billion by 2027, at
• $60 billion — grow from $24.8 billion in 2022 to over $60 billion by 2027, at a Compound Annual Growth Ra
• $43.6 billion — is expected to grow from approximately $43.6 billion in 2022 to over $92.7 billion by 2028,
• $92.7 billion — oximately $43.6 billion in 2022 to over $92.7 billion by 2028, at a CAGR of 13.4% during the
• $4.76 billion — y market size is projected to grow from $4.76 billion in 2022 to approximately $23.17 billion
• $23.17 billion — $4.76 billion in 2022 to approximately $23.17 billion by 2028 at a CAGR of 30.2% during the f

Filing Documents

• ef20015315_10k.htm (10-K) — 1251KB
• ef20015315_ex23-1.htm (EX-23.1) — 2KB
• ef20015315_ex31-1.htm (EX-31.1) — 12KB
• ef20015315_ex31-2.htm (EX-31.2) — 12KB
• ef20015315_ex32-1.htm (EX-35.1) — 5KB
• ef20015315_ex32-2.htm (EX-32.2) — 4KB
• image01.jpg (GRAPHIC) — 4KB
• image02.jpg (GRAPHIC) — 36KB
• 0001140361-24-013522.txt (&nbsp;) — 6617KB
• vhc-20231231.xsd (EX-101.SCH) — 40KB
• vhc-20231231_cal.xml (EX-101.CAL) — 60KB
• vhc-20231231_def.xml (EX-101.DEF) — 231KB
• vhc-20231231_lab.xml (EX-101.LAB) — 664KB
• vhc-20231231_pre.xml (EX-101.PRE) — 397KB
• ef20015315_10k_htm.xml (XML) — 956KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 9 Item 1B. Unresolved Staff Comments 22 Item 1C. Cybersecurity 23 Item 2.

Properties

Properties 24 Item 3.

Legal Proceedings

Legal Proceedings 24 Item 4. Mine Safety Disclosure 24 PART II Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 25 Item 6. [Reserved] 26 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 31 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 31 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 54 Item 9A.

Controls and Procedures

Controls and Procedures 54 Item 9B. Other Information 54 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 55 PART III Item 10. Directors, Executive Officers and Corporate Governance 55 Item 11.

Executive Compensation

Executive Compensation 55 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 55 Item 13. Certain Relationships and Related Transactions, and Director Independence 56 Item 14. Principal Accounting Fees and Services 56 PART IV Item 15. Exhibits and Financial Statement Schedules 56 Index SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS We have included or incorporated by reference in this Annual Report on Form 10-K (this "Report"), and from time to time we may make statements that may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements are based upon our current expectations, estimates, assumptions, and beliefs concerning future events and conditions and may discuss, among other things, anticipated future performance (including sales and earnings), products, expected growth, future business plans and costs, the impact of potential and ongoing litigation, the expectation of future stockholder distributions, statements regarding the Company's efforts and ability to maintain compliance with the New York Stock Exchange ("NYSE") continued listing standard, our beliefs and statements regarding general industry and market conditions and growth rates, as well as general domestic and international economic conditions. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "will be," "will continue," "will likely result in," and similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are necessarily subject to risks, uncertainties, and other factors, many of which are outside our control

Business

Business The Company We are an Internet security software and technology company with patented technology for Zero Trust Network Access ("ZTNA") based secure network communications. VirnetX's software and technology solutions, including its Secure Domain Name Registry and Technology, VirnetX One, War Room, VirnetX Matrix, and GABRIEL Connection Technology, are designed to be device and location-independent, and enable a secure real-time communication environment for all types of enterprise applications, services, and critical infrastructures. Our technology generates secure connections on a "single-click" basis, significantly simplifying the deployment of secure real-time communication solutions by eliminating the need for end-users to enter any encryption information. Our product portfolio includes sophisticated technologies, products and services that are available for sale worldwide. Our next-generation, VirnetX One platform builds upon our patented Secure Domain Name Registry and Technology and GABRIEL Connection Technology to further enhance the security and efficiency of our patented secure communication links. VirnetX One is a security-as-a-service platform that protects enterprise applications, services, and infrastructure from cyber-attacks. Our platform allows businesses and other enterprises of all sizes to add a "security umbrella" as an added layer on top of their existing infrastructure to further reduce risk and bolster security against ever-growing cyberthreats to data, operating systems, other infrastructure products and gateway security controllers. Our War Room software product provides safe and secure video conferencing meeting environment where sensitive communications and data is invisible to those not authorized to view it. War Room validates permissions of all the users, and devices requesting access to any secure meeting room prior to granting access. We believe our War Room will be an attractive solution for government and law enforceme

View Full Filing

View this 10-K filing on SEC EDGAR