Company: VHC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001140361-25-018930
Chunk: 42

Company: VirnetX Holding Corp
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2M
Chunk 42
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, some of which were acquired by our principal operating subsidiary, VirnetX, Inc., from Leidos in 2006.

        15

          Index

      Results of Operation

      Three Months Ended March 31, 2025

      Compared with the Three Months Ended March 31, 2024

      (in thousands, except per share amounts)

      Revenue

      We recognized revenue of $0 and $2 in the three months ended March 31, 2025 and 2024 respectively.

      Research and Development Expenses

      For the three months ended March 31, 2025, our research and development expenses remained steady at $1,259 compared to $1,268 for the three months ended March 31, 2024.

      Selling, General and Administrative Expenses

      Our selling, general and administrative expenses decreased by $872 to $2,788 for the three months ended March 31, 2025, from $3,660 for the three months ended March 31, 2024. The decrease is primarily
        due to lower legal fees and compensation costs from reduced head count in 2025.

      Liquidity and Capital Resources

      As of March 31, 2025, our cash and cash equivalents totaled approximately $23,222 and our short-term investments totaled approximately $10,954, compared to cash and cash equivalents of approximately
        $23,296 and short-term investments of approximately $14,786 at December 31, 2024, respectively. Working capital was $32,624 at March 31, 2025, and $31,009 at December 31, 2024.

      We expect that our cash and cash equivalents and short-term investments as of March 31, 2025, will be sufficient to fund our current level of operating expense, including legal expenses and provide
        related working capital for the foreseeable future. Over the longer term, we expect to derive our future revenue from license fees and royalties associated with our patent portfolio, technology, software and secure domain name registry, as well as
        collaborating with others to integrate our family of cybersecurity products and services into their solutions and to resell them to their current and future customers.

      Income Taxes

        Our effective tax rate is 0% for income tax for the three months ended
            March 31, 2025 and 2024, respectively and we expect our effective tax rate for the full year will be 0%. Our effective tax rate