VirnetX Holding Corp Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>VirnetX Holding Corp has filed its quarterly report (10-Q) for the period ending March 31, 2024.</b>

AI Summary

VirnetX Holding Corp (VHC) filed a Quarterly Report (10-Q) with the SEC on May 15, 2024. VirnetX Holding Corp filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on December 31st. The report was filed on May 15, 2024. The company was formerly known as PASW INC and PACIFIC SOFTWORKS INC.

Why It Matters

For investors and stakeholders tracking VirnetX Holding Corp, this filing contains several important signals. This 10-Q filing provides an update on the company's financial performance and operational status for the first quarter of 2024. Investors and stakeholders can use this report to assess the company's current financial health and strategic direction.

Risk Assessment

Risk Level: low — VirnetX Holding Corp shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not indicate any immediate or significant financial distress or unusual events based on the provided header information.

Analyst Insight

Review the detailed financial statements and management discussion within the full 10-Q filing to understand VirnetX's performance and outlook.

Key Numbers

• 2024-03-31 — Period of Report (Quarterly report)
• 2024-05-15 — Filing Date (10-Q submission)
• 2024-01-01 — Quarter Start Date (Q1 2024)
• 2023-12-31 — Previous Year End (Fiscal year end)

Key Players & Entities

• VirnetX Holding Corp (company) — Filer
• PASW INC (company) — Former company name
• PACIFIC SOFTWORKS INC (company) — Former company name
• 2024-03-31 (date) — Period of report
• 2024-05-15 (date) — Filing date

FAQ

Industry Context

VirnetX Holding Corp operates in the patent licensing and technology sector, focusing on intellectual property related to secure communication and networking technologies.

Regulatory Implications

The company is subject to standard SEC reporting requirements for publicly traded entities, including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Analyze the detailed financial statements within the 10-Q for revenue, expenses, and profitability trends.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into operational performance and future outlook.
3. Examine any disclosures regarding litigation, intellectual property disputes, or significant business developments.

Key Dates

• 2024-03-31: Period End Date — End of the first quarter of fiscal year 2024
• 2024-05-15: Filing Date — Date the 10-Q report was submitted to the SEC

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, providing the first quarter's financial and operational data.

Key Financial Figures

• $0.0001 — ich registered Common Stock, par value $0.0001 per share VHC NYSE Indicate by ch

Filing Documents

• ef20026320_10q.htm (10-Q) — 761KB
• ef20026320_ex31-1.htm (EX-31.1) — 8KB
• ef20026320_ex31-2.htm (EX-31.2) — 7KB
• ef20026320_ex32-1.htm (EX-32.1) — 5KB
• ef20026320_ex32-2.htm (EX-32.2) — 5KB
• image00003.jpg (GRAPHIC) — 4KB
• 0001140361-24-026230.txt (&nbsp;) — 4406KB
• vhc-20240331.xsd (EX-101.SCH) — 29KB
• vhc-20240331_cal.xml (EX-101.CAL) — 39KB
• vhc-20240331_def.xml (EX-101.DEF) — 141KB
• vhc-20240331_lab.xml (EX-101.LAB) — 426KB
• vhc-20240331_pre.xml (EX-101.PRE) — 253KB
• ef20026320_10q_htm.xml (XML) — 653KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION 2

— Financial Statements

Item 1 — Financial Statements 2 Condensed Consolidated Balance Sheets at March 31, 2024 (unaudited) and December 31, 2023 2 Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 (unaudited) 3 Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2024 and 2023 (unaudited) 4 Condensed Consolidated Statements of Shareholders' Equity for the three months ended March 31, 2024 and 2023 (unaudited) 5 Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 (unaudited) 6 Notes to Condensed Consolidated Financial Statements 7

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

Item 2 — Management's Discussion and Analysis of Financial Condition and Results of Operations 17

— Quantitative and Qualitative Disclosures About Market Risk

Item 3 — Quantitative and Qualitative Disclosures About Market Risk 19

— Controls and Procedures

Item 4 — Controls and Procedures 19

— OTHER INFORMATION

PART II — OTHER INFORMATION 20

— Legal Proceedings

Item 1 — Legal Proceedings 20

— Risk Factors

Item 1A — Risk Factors 20

— Other Information

Item 5 — Other Information 32

— Exhibits

Item 6 — Exhibits 33

SIGNATURES

SIGNATURES 34 i Index

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

-FINANCIAL STATEMENTS

ITEM 1-FINANCIAL STATEMENTS. VIRNETX HOLDING CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) As of March 31, 2024 As of December 31, 2023 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 27,593 $ 26,289 Investments available for sale 22,412 27,258 Accounts receivables — 2 Prepaid expenses and other current assets 367 282 Total current assets 50,372 53,831 Other investments at cost 2,500 2,500 Prepaid expenses and other assets 9,341 4,014 Property and equipment, net 62 67 Total assets $ 62,275 $ 60,412 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 490 $ 440 Accrued payroll and related expenses 324 316 Other liabilities, current 6,215 498 Total current liabilities 7,029 1,254 Other liabilities 3,062 3,145 Total liabilities 10,091 4,399 Commitments and contingencies (Note 4) Stockholders' equity: Preferred stock, par value $ 0.0001 per share Authorized: 10,000,000 shares at March 31 , 2024 and December 31, 2023 ; Issued and outstanding: 0 shares at March 31 , 2024 and December 31, 2023 — — Common stock, par value $ 0.0001 per share Authorized: 100,000,000 shares at March 31 , 2024 and December 31, 2023 ; Issued and outstanding: 3,680,661 shares at March 31 , 2024 and 3,618,431 at December 31, 2023 — — Additional paid-in capital 243,005 242,520 Accumulated deficit ( 190,786 ) ( 186,495 ) Accumulated other comprehensive loss ( 35 ) ( 12 ) Total stockholders' equity 52,184 56,013 Total liabilities and stockholders' equity $ 62,275 $ 60,412 See accompanying notes to condensed consolidated financial statements. 2 Index VIRNETX HOLDING CORPORATION CONDENSED CONSOLIDATED (in thousands, except per share amounts) Three Months Ended March 31, 2024 2023 Revenue $ 2 $ 2 Opera

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS (in thousands, except per share amounts) (Unaudited) Note 1 — Business Description and Basis of Presentation VirnetX Holding Corporation (the "Company," "we," "us," or "our") We are an Internet security software and technology company with patented technology for Zero Trust Network Access ("ZTNA") based secure network communications. Our software and technology solutions, including Secure Domain Name Registry and Technology, VirnetX One, War Room, and VirnetX Matrix 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 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 . Note 2 — Summary of Significant Accounting Policies Unaudited Interim Financial Information The accompanying Condensed Consolidated Balance Sheet as of March 31, 2024, the Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023, the Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2024 and 2023, the Condensed Consolidated Statements of Shareholders' Equity for the three months ended March 31, 2024 and 2023, and the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). In our opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of our financial position as of M

View Full Filing

View this 10-Q filing on SEC EDGAR