Company: VHC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001140361-25-030577
Chunk: 149

Company: VirnetX Holding Corp
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 8
Chunk 149
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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 illegal manipulation in the trading of our
        stock, it will be detected, prosecuted, or successfully eradicated. Significant short-selling market manipulation could cause our stock trading price to decline, to become more volatile, or both. For more information regarding trading in our common
        stock and listing on the NYSE, see additional risk factors included elsewhere in this Quarterly Report on Form 10-Q.

We have broad discretion in how we apply our funds, and we may not use these funds effectively, which could affect our results of operations and cause our stock price to
        decline.

Our management has broad discretion in the application of our existing cash, cash equivalents and investments and could spend these funds in ways that do not improve our results of operations or enhance the value of
        our common stock. Pending their use, we may invest our available funds in a manner that does not produce income or that loses value. The failure by our management to apply our available funds effectively could result in financial losses that could
        cause the price of our common stock to decline and delay the development of our products.

In addition, an entity that, among other things, is