VirnetX Holding Corp. Files Q2 2024 10-Q

TL;DR

VRTX Q2 10-Q filed. Financials and operations update.

AI Summary

VirnetX Holding Corp. filed its 10-Q for the period ending June 30, 2024. The company, primarily involved in patent licensing, reported its financial performance and operational updates. Key financial figures and strategic developments are detailed within this quarterly report.

Why It Matters

This filing provides investors with an update on VirnetX's financial health and ongoing patent litigation or licensing activities, which are crucial for its revenue generation.

Risk Assessment

Risk Level: medium — VirnetX's business model relies heavily on patent litigation and licensing, which can be unpredictable and subject to significant legal and financial risks.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the fiscal quarter covered by the report.)
• 20240814 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• VirnetX Holding Corp (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240814 (date) — Filing date of the 10-Q
• PATENT OWNERS & LESSORS [6794] (industry) — Standard Industrial Classification

FAQ

Key Financial Figures

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

Filing Documents

• ef20030096_10q.htm (10-Q) — 901KB
• ef20030096_ex31-1.htm (EX-31.1) — 8KB
• ef20030096_ex31-2.htm (EX-31.2) — 8KB
• ef20030096_ex32-1.htm (EX-32.1) — 5KB
• ef20030096_ex32-2.htm (EX-32.2) — 5KB
• image00003.jpg (GRAPHIC) — 4KB
• 0001140361-24-037312.txt ( ) — 4695KB
• vhc-20240630.xsd (EX-101.SCH) — 27KB
• vhc-20240630_cal.xml (EX-101.CAL) — 40KB
• vhc-20240630_def.xml (EX-101.DEF) — 137KB
• vhc-20240630_lab.xml (EX-101.LAB) — 413KB
• vhc-20240630_pre.xml (EX-101.PRE) — 248KB
• ef20030096_10q_htm.xml (XML) — 744KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION 2

— Financial Statements

Item 1 — Financial Statements 2 Condensed Consolidated Balance Sheets at June 30, 2024 (unaudited) and December 31, 2023 2 Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023 (unaudited) 3 Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2024 and 2023 (unaudited) 4 Condensed Consolidated Statements of Shareholders' Equity for the three and six months ended June 30, 2024 and 2023 (unaudited) 5 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 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 16

— Quantitative and Qualitative Disclosures About Market Risk

Item 3 — Quantitative and Qualitative Disclosures About Market Risk 18

— Controls and Procedures

Item 4 — Controls and Procedures 18

— OTHER INFORMATION

PART II — OTHER INFORMATION 18

— Legal Proceedings

Item 1 — Legal Proceedings 18

— Risk Factors

Item 1A — Risk Factors 18

— Other Information

Item 5 — Other Information 29

— Exhibits

Item 6 — Exhibits 30

SIGNATURES

SIGNATURES 31 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 June 30, 2024 As of December 31, 2023 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 26,285 $ 26,289 Investments available for sale 20,624 27,258 Accounts receivables — 2 Prepaid expenses and other current assets 299 282 Total current assets 47,208 53,831 Other investments at cost 2,500 2,500 Prepaid expenses and other assets 9,172 4,014 Property and equipment, net 68 67 Total assets $ 58,948 $ 60,412 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 325 $ 440 Accrued payroll and related expenses 353 316 Other liabilities, current 6,329 498 Total current liabilities 7,007 1,254 Other liabilities 3,132 3,145 Total liabilities 10,139 4,399 Commitments and contingencies (Note 4) Stockholders' equity: Preferred stock, par value $ 0.0001 per share Authorized: 10,000,000 shares at June 30 , 2024 and December 31, 2023 ; Issued and outstanding: 0 shares at June 30 , 2024 and December 31, 2023 — — Common stock, par value $ 0.0001 per share Authorized: 100,000,000 shares at June 30 , 2024 and December 31, 2023 ; Issued and outstanding: 3,735,270 shares at June 30 , 2024 and 3,618,431 at December 31, 2023 — — Additional paid-in capital 243,465 242,520 Accumulated deficit ( 194,616 ) ( 186,495 ) Accumulated other comprehensive loss ( 40 ) ( 12 ) Total stockholders' equity 48,809 56,013 Total liabilities and stockholders' equity $ 58,948 $ 60,412 See accompanying notes to condensed consolidated financial statements. 2 Index VIRNETX HOLDING CORPORATION CONDENSED CONSOLIDATED OPERATIONS (Unaudited) (in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2024 2023

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") is 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 government agencies, 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 June 30, 2024, the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023, the Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2024 and 2023, the Condensed Consolidated Statements of Shareholders' Equity for the three and six months ended June 30, 2024 and 2023, and the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 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

View Full Filing

View this 10-Q filing on SEC EDGAR