VirnetX Holding Corp. Files Q3 2024 10-Q

TL;DR

VRTX 10-Q filed for Q3 2024. Check financials.

AI Summary

VirnetX Holding Corp. filed its 10-Q for the period ending September 30, 2024. The company, previously known as PASW INC and PACIFIC SOFTWORKS INC, is incorporated in Delaware and headquartered in Zephyr Cove, Nevada. The filing covers financial information for the third quarter of 2024, with a fiscal year end of December 31st.

Why It Matters

This filing provides investors with the latest financial performance and operational updates for VirnetX Holding Corp. during the third quarter of 2024.

Risk Assessment

Risk Level: medium — The company's business model, which appears to be heavily reliant on patent licensing and litigation, can be inherently volatile and subject to significant legal and financial risks.

Key Numbers

• Q3 2024 — Reporting Period (Financials for the third quarter of 2024 are detailed in this filing.)
• 12-31 2024 — Fiscal Year End (Indicates the end of the company's annual financial reporting cycle.)

Key Players & Entities

• VirnetX Holding Corp. (company) — Filer of the 10-Q
• PASW INC (company) — Former name of VirnetX Holding Corp.
• PACIFIC SOFTWORKS INC (company) — Former name of VirnetX Holding Corp.
• 20240930 (date) — End of reporting period
• 20241113 (date) — Filing date

FAQ

Key Financial Figures

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

Filing Documents

• ef20034524_10q.htm (10-Q) — 901KB
• ef20034524_ex31-1.htm (EX-31.1) — 8KB
• ef20034524_ex31-2.htm (EX-31.2) — 8KB
• ef20034524_ex32-1.htm (EX-32.1) — 6KB
• ef20034524_ex32-2.htm (EX-32.2) — 5KB
• image00003.jpg (GRAPHIC) — 4KB
• 0001140361-24-046446.txt ( ) — 4729KB
• vhc-20240930.xsd (EX-101.SCH) — 28KB
• vhc-20240930_cal.xml (EX-101.CAL) — 40KB
• vhc-20240930_def.xml (EX-101.DEF) — 140KB
• vhc-20240930_lab.xml (EX-101.LAB) — 418KB
• vhc-20240930_pre.xml (EX-101.PRE) — 253KB
• ef20034524_10q_htm.xml (XML) — 745KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION 2

— Financial Statements

Item 1 — Financial Statements 2 Condensed Consolidated Balance Sheets at September 30, 2024 (unaudited) and December 31, 2023 2 Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 (unaudited) 3 Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2024 and 2023 (unaudited) 4 Condensed Consolidated Statements of Shareholders' Equity for the three and nine months ended September 30, 2024 and 2023 (unaudited) 5 Condensed Consolidated Statements of Cash Flows for the nine months ended September 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 15

— 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 19

— Other Information

Item 5 — Other Information 30

— 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 September 30, 2024 As of December 31, 2023 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 25,130 $ 26,289 Investments available for sale 18,624 27,258 Accounts receivables — 2 Prepaid expenses and other current assets 266 282 Total current assets 44,020 53,831 Other investments at cost 2,500 2,500 Prepaid expenses and other assets 9,005 4,014 Property and equipment, net 62 67 Total assets $ 55,587 $ 60,412 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 280 $ 440 Accrued payroll and related expenses 384 316 Other liabilities, current 6,471 498 Total current liabilities 7,135 1,254 Other liabilities 2,959 3,145 Total liabilities 10,094 4,399 Commitments and contingencies (Note 4) Stockholders' equity: Preferred stock, par value $ 0.0001 per share Authorized: 10,000,000 shares at September 30 , 2024 and December 31, 2023 ; Issued and outstanding: 0 shares at September 30 , 2024 and December 31, 2023 — — Common stock, par value $ 0.0001 per share Authorized: 100,000,000 shares at September 30 , 2024 and December 31, 2023 ; Issued and outstanding: 3,729,122 shares at September 30 , 2024 and 3,618,431 at December 31, 2023 — — Additional paid-in capital 243,916 242,520 Accumulated deficit ( 198,455 ) ( 186,495 ) Accumulated other comprehensive loss 32 ( 12 ) Total stockholders' equity 45,493 56,013 Total liabilities and stockholders' equity $ 55,587 $ 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 September 30, Nine Months Ende

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View this 10-Q filing on SEC EDGAR