Company: VHC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001140361-25-030577
Chunk: 81

Company: VirnetX Holding Corp
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 1
Chunk 81
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 adopted or is being
          considered by a number of countries, which could impact our business if we expand internationally. However, on June 28, 2025, the G7 released a joint statement that it had reached an understanding with the United States for a side-by-side system
          based on certain accepted principles, including that U.S.-parented groups, such as ours, would be exempt from certain provisions of Pillar Two. Any of these developments or changes in U.S. federal, state or international tax laws or tax rulings
          could adversely affect our effective tax rate and our operating results.

Trading in our common stock is limited and the price of our common shares may be subject to volatility.

Our common stock is currently listed on the NYSE and was previously listed on the NYSE American LLC (formerly the NYSE MKT LLC). Over the past years, the market price of our common stock has experienced significant
        fluctuations. Between July 1, 2024, and June 30, 2025, the adjusted closing price on the NYSE for our common stock ranged between $3.86 and $11.39. The price of our common stock may continue to be volatile as a result of several factors, some of
        which are beyond our control. These factors include, but are not limited to, the following:

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              Annual variations, actual or anticipated, in our operating results;

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              Significant changes in our management;

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              Large purchases or sales of common stock or derivative transactions related to our stock;

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              Actual or anticipated announcements of new products or services by us or competitors;

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              General conditions in the markets in which we compete; and

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              General social, political, economic, and financial conditions, including significant volatility in the global financial markets.

In addition, we believe there has been and may continue to be substantial trading in derivatives of our stock, including short selling activity or related similar activities, which are beyond our control, and which
        may be beyond the full control of the SEC and Financial Institutions Regulatory Authority (FINRA). While the SEC and FINRA rules prohibit some forms of short selling and other activities that may result in stock price manipulation, such activity
        may nonetheless occur without detection or enforcement. We have held conversations with regulators concerning trading activity in our stock; however, there can be no assurance that should there be any