Company: VHC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001140361-25-030577
Chunk: 37

Company: VirnetX Holding Corp
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 foreign patents and pending applications. Our patent portfolio is primarily focused on securing real-time
        communications over the Internet, and related services, and is used in all our technology and products, some of which were acquired by our principal operating subsidiary, VirnetX, Inc., from Leidos in 2006.

        14

Results of Operation

Three and Six Months Ended June 30, 2025

Compared with the Three and six Months Ended June 30, 2024

(in thousands, except per share amounts)

Revenue

We recognized revenue of $48 and $3 in the six months ended June 30, 2025 and 2024.

Research and Development Expenses

Our research and development expenses remained steady between 2025 and 2024 totaling $1,215 and $2,474 for the three and six months ended June 30, 2025 compared to $1,223 and $2,491 for the three and
        six months ended June 30, 2024.

Selling, General and Administrative Expenses

Our selling, general and administrative expenses decreased by $416 and by $1,289 totaling $2,777 and $5,565, respectively for the three and six months ended June 30, 2025 versus $3,193 and $6,854 for
        the three and six months ended June 30, 2024. During 2024, we incurred legal fees pursuing protection of our patents which was finalized in 2024.

Liquidity and Capital Resources

As of June 30, 2025, our cash and cash equivalents totaled approximately $17,293 and our short-term investments totaled approximately $13,933, 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 $29,595 at June 30, 2025, and $31,009 at December 31, 2024.

We expect that our cash and cash equivalents and short-term investments as of June 30, 2025, will be sufficient to fund our current level of operating expenses and provide related working capital for the foreseeable
        future. Over the longer term, we expect to derive our future revenue from 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 as well
        as from license fees and royalties associated with our patent portfolio