Company: VHC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001140361-25-042294
Chunk: 58

Company: VirnetX Holding Corp
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1L
Chunk 58
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 One Big Beautiful Bill Act (OBBB Act), that could increase our tax obligations in countries where we do business or cause us to change the way we operate our business. We are currently evaluating the full impact of the OBBB Act on us.

In addition, the Organization for Economic Cooperation and Development has proposed imposing a 15% global minimum tax under the Pillar Two Model Rules (Pillar Two), and this proposal has been 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 Nasdaq and was previously listed on NYSE and NYSE American LLC (formerly the NYSE MKT LLC). Over the past year, the market price of our common stock has
        experienced significant fluctuations. Between October 1, 2024, and September 30, 2025, the adjusted closing price for our common stock ranged between $3.86 and $20.91. 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,