☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 77-0390628 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
308 Dorla Court, Suite 206 Zephyr Cove, Nevada | 89448 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, par value $0.0001 per share | VHC | NYSE |
Large accelerated filer ☐ | Accelerated filer ☐ | Non-accelerated filer ☒ |
Emerging growth company ☐ | Smaller reporting company ☒ |
Page | ||
PART I | ||
Item 1. | ||
Item 1A. | 9 | |
Item 1B. | ||
Item 1C. | 23 | |
Item 2. | 24 | |
Item 3. | 24 | |
Item 4. | 24 | |
PART II | ||
Item 5. | ||
Item 6. | ||
Item 7. | ||
Item 7A. | ||
Item 8. | 31 | |
Item 9. | ||
Item 9A. | ||
Item 9B. | ||
Item 9C. | ||
PART III | ||
Item 10. | ||
Item 11. | ||
Item 12. | ||
Item 13. | ||
Item 14. | ||
PART IV | ||
Item 15. |
• | Promote War RoomTM video conferencing product in the general market for sale to end-user enterprises, directly and with partners, with targeted promotions and other marketing programs to assist remote workers and offer an industry leading secure meeting solution. |
• | Unique patented technology. We are focused on developing innovative technology for securing real-time communications over the Internet and establishing the exclusive secure domain name registry in the United States and other key markets around the world. Our unique solutions combine industry standard encryption methods and communication protocols with our patented techniques for automated DNS lookup mechanisms. Our technology and patented approach enable users to create a secure communication link by generating secure domain names. We currently own approximately 205 total patents and pending applications, including 72 U.S. patents/patent applications and 133 foreign patents/validations/pending applications. Our portfolio includes patents and pending patent applications in the United States and other key markets that support our secure domain name registry service for the Internet. |
• | Scalable licensing business model. We are actively engaged in pursuing additional licensing agreements with industry participants OEMs, service providers and system integrators within the IP-telephony, mobility, mobile-to-mobile communications, fixed-mobile convergence, and unified communications end-markets. |
• | Highly experienced research and development team. Our research and development team is comprised of nationally recognized network security and encryption technology scientists and experts that have worked together as a team for over ten years. During their careers, this team has developed several cutting-edge technologies for U.S. national defense, intelligence, and civilian agencies, many of which remain critical to our national security today. Prior to joining VirnetX, our team worked for Leidos, during which time they invented the core technology that is the foundation of our current technology and software. Based on the collective knowledge and experience of our development team, we believe that we have one of the most experienced and sophisticated groups of security experts researching vulnerability and threats to real-time communication over the Internet and developing solutions to mitigate these problems. |
We have undertaken activities to commercialize our products and intellectual property in and outside the United States including VirnetX OneTM, War RoomTM, VirnetX MatrixTM, GABRIEL Connection TechnologyTM and our Secured Domain Name Registry and Technology. We believe our product portfolio to secure devices and systems are available for downloadstable in areas such as City, County and free trial, for Android, iOS, Windows, Linux,State Governments, Healthcare, Finance, Legal, Oil and Mac OS X platforms, at http://www.virnetx.com/.Gas, Medical, Law Enforcement, National Defense and related support industries. We continue to enhanceactively pursue new sales opportunities in and one of United States.
During 2023, we actively engaged in discussions with certain third-parties to pitch the capabilities of VimetX OneTM. As a result of our productsefforts, we made a series of announcements with Solution Synergy, WeSecure, Samsung, Every Data Corporation, and addObject Security We also announced new functionalitydeployments of our VimetX MatrixTM product at City of Bridgeport, International Association of Certified ISAOs (IACI) and SkinWalker Ranch. Although there can be no assurance in this regard, the Company believes that there are opportunities for Company products' sales directly to, our products. Small and medium businesses have installed our software products in their corporate networks. We continue to expand our customer baseresale arrangements with targeted promotions and direct sales initiatives.and/or adoption as vendor standards by, one or more of these third parties.
• | Patent Assignment. Leidos, unconditionally and irrevocably conveyed, transferred, assigned, and quitclaimed all its right, title, and interest in and to the patents and patent applications, as specifically set forth in the assignment document recorded with the U.S. Patent Office, including, without limitation, the right to sue for past infringement. |
• | License to Leidos, Outside the Field of Use. Effective March 12, 2008, we granted to Leidos, a non-exclusive, royalty free, fully paid, perpetual, worldwide, irrevocable, sub licensable and transferable right and license permitting Leidos, and its assignees to make, have made, import, use, offer for sale, and sell products and services covered by, and to make improvements to, the patents and patent applications we acquired from Leidos, solely outside our field of use. |
• | Compensation Obligations. As consideration for the assignment of the patents and for the rights we obtained from Leidos, as amended, we are required to make payments to Leidos, based on cash or certain other values generated from those patents. The amount of such payments depends upon the type of value generated, and certain categories are subject to maximums and other limitations. In 2010, we met our maximum royalty payment requirement; however, Leidos is also entitled under certain circumstances to receive a portion of the proceeds paid to us for certain acquisitions of VirnetX and the settlement of certain patent infringement claims of ours. |
Item 1A. | Risk Factors |
• | Customer adoption of our VirnetX OneTM platform and software products and services; |
• | Adoption of VirnetX OneTM platform by third party application providers of secure communications; |
Item 1B. | Unresolved Staff |
Item 1C. | Cybersecurity |
Item 2. | Properties |
Item 3. | Legal Proceedings |
Item 4. | Mine Safety Disclosure |
Item 5. | Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
*$100 invested on 12/31/18 in stock or index, including reinvestment of dividends. Fiscal year ending December 31. | ||
Copyright© 2024 Standard & Poor’s, a division of S&P Global. All rights reserved. |
12/17 | 12/18 | 12/19 | 12/20 | 12/21 | 12/22 | 12/18 | 12/19 | 12/20 | 12/21 | 12/22 | 12/23 | |||||||||||||||||||
VirnetX Holding Corp | 100.00 | 64.86 | 102.70 | 186.05 | 95.98 | 47.99 | 100.00 | 158.33 | 246.02 | 126.92 | 63.46 | 44.33 | ||||||||||||||||||
S&P 500 | 100.00 | 95.62 | 125.72 | 148.85 | 191.58 | 156.89 | 100.00 | 131.49 | 155.68 | 200.37 | 164.08 | 207.21 | ||||||||||||||||||
RDG Technology Composite | 100.00 | 93.54 | 133.70 | 208.19 | 249.39 | 169.48 | 100.00 | 142.93 | 222.56 | 266.61 | 181.18 | 261.37 |
Item 6. | [Reserved] |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
IndexInvestments
We have elected the investment measurement alternative for other investments without readily determinable fair values. During 2023, we invested $2,000 in L2 Holdings LLC and $500 in OP Media Inc. These investments are carried at our initial cost less any impairment, because we do not have the ability to exercise significant influence over operating and financial matters. For these investments, we adjust the carrying value for any purchases or sales of our ownership interests. Periodically, we evaluate these investments for impairment. If we identify an impairment, we reduce the carrying value for the impairment loss with a charge to earnings. We have not identified any impairment as of December 31, 2023.
2022 | 2021 | 2020 | ||||||||||
Revenue | $ | 48 | $ | 35 | $ | 302,636 |
2023 | 2022 | |||||||
Revenue | $ | 7 | $ | 48 |
2022 | 2021 | 2020 | ||||||||||
Licensing costs | $ | (4 | ) | $ | (9,083 | ) | $ | 90,101 |
2023 | 2022 | |||||||
Licensing costs | $ | — | $ | (4 | ) |
2022 | 2021 | 2020 | ||||||||||
Research and Development | $ | 6,406 | $ | 5,577 | $ | 8.830 |
2023 | 2022 | |||||||
Research and Development | $ | 9,713 | $ | 6,406 |
2022 | 2021 | 2020 | ||||||||||
Selling, General and Administrative | $ | 15,722 | $ | 52,715 | $ | 45,812 |
2023 | 2022 | |||||||
Selling, General and Administrative | $ | 21,739 | $ | 15,722 |
2022 | 2021 | 2020 | ||||||||||
Interest and Other Income | $ | 1,848 | $ | 48 | $ | 108,288 |
2023 | 2022 | |||||||
Interest and Other Income | $ | 3,495 | $ | 1,848 |
Year Ended December 31, 2022 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||||||||
United States federal statutory rate | 21.00 | % | 21.00 | % | 21.00 | % | 21.00 | % | 21.00 | % | ||||||||||
State taxes, net of federal benefit | (0.55 | )% | (0.31 | )% | 0.17 | % | (0.01 | )% | (0.55 | )% | ||||||||||
Valuation allowance | (91.21 | )% | — | % | (12.22 | )% | (20.31 | )% | (91.21 | )% | ||||||||||
Stock based compensation | (9.44 | %) | (6.68 | )% | (0.01 | )% | (0.58 | )% | (9.44 | )% | ||||||||||
R&D Credit | 1.22 | % | 0.19 | % | (0.21 | )% | 2.20 | % | 1.22 | % | ||||||||||
Other | (0.29 | )% | (1.57 | )% | 0.06 | % | (2.03 | )% | (0.29 | )% | ||||||||||
Effective income tax rate | (79.27 | )% | 12.63 | % | 8.79 | % | 0.28 | % | (79.27 | )% |
Item 7A. | Quantitative and Qualitative Disclosures about Market Risk |
Page | |
Description of the Matter | Other Investments As discussed in Our determination that the classification and the valuation of |
Audit Procedures | Our principal audit procedures related to the Company’s - We evaluated management’s - We also evaluated management’s assessment of |
As of December 31, 2022 | As of December 31, 2021 | As of December 31, 2023 | As of December 31, 2022 | |||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 86,561 | $ | 142,018 | $ | 26,289 | $ | 86,561 | ||||||||
Investments available for sale | 65,462 | 27,254 | 27,258 | 65,462 | ||||||||||||
Accounts receivables | 14 | 17 | 2 | 14 | ||||||||||||
Prepaid income tax | — | — | ||||||||||||||
Prepaid expenses and other current assets | 224 | 203 | 282 | 224 | ||||||||||||
Total current assets | 152,261 | 169,492 | 53,831 | 152,261 | ||||||||||||
Prepaid expenses and other assets | 703 | 1,056 | 4,014 | 703 | ||||||||||||
Property and equipment, net | 11 | 18 | 67 | 11 | ||||||||||||
Deferred tax asset | — | 15,950 | ||||||||||||||
Other investments | 2,500 | — | ||||||||||||||
Total assets | $ | 152,975 | $ | 186,516 | $ | 60,412 | $ | 152,975 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable and accrued liabilities | $ | 373 | $ | 338 | $ | 440 | $ | 373 | ||||||||
Accrued payroll and related expenses | 311 | 270 | 316 | 311 | ||||||||||||
Accrued licensing costs | — | 355 | ||||||||||||||
Other liabilities, current | 47 | 58 | 498 | 47 | ||||||||||||
Total current liabilities | 731 | 1,021 | 1,254 | 731 | ||||||||||||
Other liabilities | — | 46 | 3,145 | — | ||||||||||||
Total liabilities | 731 | 1,067 | 4,399 | 731 | ||||||||||||
Commitments and contingencies (Note 4) | ||||||||||||||||
Stockholders’ equity: | ||||||||||||||||
Preferred stock, par value $0.0001 per share Authorized: 10,000,000 shares at December 31, 2022 and December 31, 2021, Issued and outstanding: 0 shares at December 31, 2022 and December 31, 2021 | — | — | ||||||||||||||
Preferred stock, par value $0.0001 per share Authorized: 10,000,000 shares at December 31, 2023 and December 31, 2022, Issued and outstanding: 0 shares at December 31, 2023 and December 31, 2022 | — | — | ||||||||||||||
Common stock, par value $0.0001 per share | ||||||||||||||||
Authorized: 100,000,000 shares at December 31, 2022 and December 31, 2021, Issued and outstanding: 71,424,650 and 71,232,856 shares, at December 31, 2022 and December 31, 2021, respectively | 7 | 7 | ||||||||||||||
Authorized: 100,000,000 shares at December 31, 2023 and December 31, 2022, Issued and outstanding: 3,618,431 and 3,571,232 shares, at December 31, 2023 and December 31, 2022, respectively | — | — | ||||||||||||||
Additional paid-in capital | 239,746 | 236,445 | 242,520 | 239,753 | ||||||||||||
Accumulated deficit | (87,195 | ) | (50,935 | ) | (186,495 | ) | (87,195 | ) | ||||||||
Accumulated other comprehensive loss | (314 | ) | (68 | ) | (12 | ) | (314 | ) | ||||||||
Total stockholders’ equity | 152,244 | 185,449 | 56,013 | 152,244 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 152,975 | $ | 186,516 | $ | 60,412 | $ | 152,975 |
Year Ended December 31, 2022 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | ||||||||||
Revenue | $ | 48 | $ | 35 | $ | 302,636 | ||||||
Operating expense: | ||||||||||||
Licensing costs | (4 | ) | (9,083 | ) | 90,101 | |||||||
Research and development | 6,406 | 5,577 | 8,830 | |||||||||
Selling, general and administrative expenses | 15,722 | 52,715 | 45,812 | |||||||||
Total operating expense | 22,124 | 49,209 | 144,743 | |||||||||
(Loss) income from operations | (22,076 | ) | (49,174 | ) | 157,893 | |||||||
Gain on settlement | — | — | 41,271 | |||||||||
Interest and other income, net | 1,848 | 48 | 108,288 | |||||||||
(Loss) income before taxes | (20,228 | ) | (49,126 | ) | 307,452 | |||||||
Income tax (provision) benefit | (16,032 | ) | 6,205 | (27,023 | ) | |||||||
Net (loss) income | $ | (36,260 | ) | $ | (42,921 | ) | $ | 280,429 | ||||
Basic (loss) earnings per share | $ | (0.51 | ) | $ | (0.60 | ) | $ | 3.96 | ||||
Diluted (loss) earnings per share | $ | (0.51 | ) | $ | (0.60 | ) | $ | 3.92 | ||||
Weighted average shares outstanding basic | 71,335,046 | 71,159,458 | 70,850,311 | |||||||||
Weighted average shares outstanding diluted | 71,335,046 | 71,159,458 | 71,615,843 |
Year Ended December 31, 2022 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | ||||||||||
Net (loss) income | $ | (36,260 | ) | $ | (42,921 | ) | $ | 280,429 | ||||
Other comprehensive (loss) income, net of tax: | ||||||||||||
Change in unrealized (loss) gain on investments, net | (246 | ) | (51 | ) | — | |||||||
Change in foreign currency translation, net | — | (4 | ) | 1 | ||||||||
Total other comprehensive (loss) gain, net of tax | (246 | ) | (55 | ) | 1 | |||||||
Comprehensive (loss) income | $ | (36,506 | ) | $ | (42,976 | ) | $ | 280,430 |
Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||
Revenue | $ | 7 | $ | 48 | ||||
Operating expense: | ||||||||
Licensing costs | — | (4 | ) | |||||
Research and development | 9,713 | 6,406 | ||||||
Selling, general and administrative expenses | 21,739 | 15,722 | ||||||
Total operating expense | 31,452 | 22,124 | ||||||
(Loss) from operations | (31,445 | ) | (22,076 | ) | ||||
Interest and other income, net | 3,495 | 1,848 | ||||||
(Loss) before taxes | (27,950 | ) | (20,228 | ) | ||||
Income tax (provision) benefit | 79 | (16,032 | ) | |||||
Net (loss) | $ | (27,871 | ) | $ | (36,260 | ) | ||
Basic (loss) per share | $ | (7.79 | ) | $ | (10.17 | ) | ||
Diluted (loss) per share | $ | (7.79 | ) | $ | (10.17 | ) | ||
Weighted average shares outstanding basic | 3,579 | 3,565 | ||||||
Weighted average shares outstanding diluted | 3,579 | 3,565 |
Year Ended | ||||||||||||
December 31, | ||||||||||||
2022 | 2021 | 2020 | ||||||||||
Total shareholders’ equity, beginning balances | $ | 185,449 | $ | 224,437 | $ | 5,628 | ||||||
Common stock and additional paid-in capital: | ||||||||||||
Beginning balances | 236,452 | 232,464 | 223,244 | |||||||||
Common stock issued for cash, net | — | — | 4,488 | |||||||||
Common stock issued for options/RSUs, net | (29 | ) | (196 | ) | 690 | |||||||
Warrants issued for services | — | — | 104 | |||||||||
Stock-based compensation | 3,330 | 4,184 | 3,938 | |||||||||
Ending balances | 239,753 | 236,452 | 232,464 | |||||||||
Accumulated deficit (retained earnings) | ||||||||||||
Beginning balances | (50,935 | ) | (8,014 | ) | (217,602 | ) | ||||||
Net (loss) income | (36,260 | ) | (42,921 | ) | 280,429 | |||||||
Dividends | — | — | (70,841 | ) | ||||||||
Ending balances | (87,195 | ) | (50,935 | ) | (8,014 | ) | ||||||
Accumulated other comprehensive loss: | ||||||||||||
Beginning balances | (68 | ) | (13 | ) | (14 | ) | ||||||
Change in unrealized investment (loss) gain, net | (246 | ) | (51 | ) | — | |||||||
Change in foreign currency translation, net | — | (4 | ) | 1 | ||||||||
Ending balances | (314 | ) | (68 | ) | (13 | ) | ||||||
Total shareholders’ equity, ending balances | $ | 152,244 | $ | 185,449 | $ | 224,437 | ||||||
Dividends per share | $ | — | $ | — | $ | 1.00 |
Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||
Net (loss) | $ | (27,871 | ) | $ | (36,260 | ) | ||
Other comprehensive (loss) income, net of tax: | ||||||||
Change in unrealized (loss) gain on investments, net | 306 | (246 | ) | |||||
Change in foreign currency translation, net | (4 | ) | — | |||||
Total other comprehensive (loss) gain, net of tax | 302 | (246 | ) | |||||
Comprehensive (loss) | $ | (27,569 | ) | $ | (36,506 | ) |
Year Ended | ||||||||
December 31, | ||||||||
2023 | 2022 | |||||||
Total shareholders’ equity, beginning balances | $ | 152,244 | $ | 185,449 | ||||
Common stock and additional paid-in capital: | ||||||||
Beginning balances | 239,753 | 236,452 | ||||||
Common stock issued for options/RSUs/RS, net | (11 | ) | (29 | ) | ||||
Stock-based compensation | 2,778 | 3,330 | ||||||
Ending balances | 242,520 | 239,753 | ||||||
Accumulated deficit | ||||||||
Beginning balances | (87,195 | ) | (50,935 | ) | ||||
Net (loss) | (27,871 | ) | (36,260 | ) | ||||
Dividends | (71,429 | ) | — | |||||
Ending balances | (186,495 | ) | (87,195 | ) | ||||
Accumulated other comprehensive loss: | ||||||||
Beginning balances | (314 | ) | (68 | ) | ||||
Change in unrealized investment (loss) gain, net | 306 | (246 | ) | |||||
Change in foreign currency translation, net | (4 | ) | — | |||||
Ending balances | (12 | ) | (314 | ) | ||||
Total shareholders’ equity, ending balances | $ | 56,013 | $ | 152,244 | ||||
Dividends per share | $ | 20 | $ | — |
Year Ended December 31, 2022 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net (loss) income | $ | (36,260 | ) | $ | (42,921 | ) | $ | 280,429 | ||||||||||||
Adjustments to reconcile net (loss) income to net cash from operating activities: | ||||||||||||||||||||
Net (loss) | $ | (27,871 | ) | $ | (36,260 | ) | ||||||||||||||
Adjustments to reconcile net (loss) to net cash from operating activities: | ||||||||||||||||||||
Depreciation | 7 | 4 | 5 | 9 | 7 | |||||||||||||||
Stock-based compensation | 3,330 | 4,184 | 3,938 | 2,778 | 3,330 | |||||||||||||||
Amortization of warrants issuance costs | — | 34 | 69 | |||||||||||||||||
Bad debt | 15 | — | ||||||||||||||||||
Deferred income taxes | 16,032 | (6,901 | ) | (9,049 | ) | — | 16,032 | |||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||
Prepaid expenses and other current assets | 331 | 271 | 419 | (3,369 | ) | 331 | ||||||||||||||
Accounts payable and accrued liabilities | 35 | (316 | ) | (692 | ) | 67 | 35 | |||||||||||||
Other liabilities | (54 | ) | 60 | (193 | ) | 3,596 | (54 | ) | ||||||||||||
Accrued payroll and related expenses | 41 | 50 | (67 | ) | 5 | 41 | ||||||||||||||
Accrued licensing costs | (355 | ) | (9,083 | ) | 9,438 | — | (355 | ) | ||||||||||||
Accounts receivable | 3 | (9 | ) | (3 | ) | (3 | ) | 3 | ||||||||||||
Prepaid income taxes | (3 | ) | 2,905 | (2,905 | ) | — | (3 | ) | ||||||||||||
Net cash (used in) provided by operating activities | (16,893 | ) | (51,722 | ) | 281,389 | |||||||||||||||
Net cash used in operating activities | (24,773 | ) | (16,893 | ) | ||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Purchase of property and equipment | — | (11 | ) | — | (65 | ) | — | |||||||||||||
Purchase of investments at cost | (2,500 | ) | — | |||||||||||||||||
Purchase of investments | (67,070 | ) | (26,332 | ) | (33,065 | ) | (47,215 | ) | (67,070 | ) | ||||||||||
Proceeds from sale or maturity of investments | 28,535 | 27,371 | 7,112 | 85,721 | 28,535 | |||||||||||||||
Net cash (used in) provided by investing activities | (38,535 | ) | 1,028 | (25,953 | ) | |||||||||||||||
Net cash provided by (used in) investing activities | 35,941 | (38,535 | ) | |||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from exercise of options | — | — | 1,046 | |||||||||||||||||
Proceeds from sale of common stock | — | — | 4,488 | |||||||||||||||||
Dividends paid on common stock | — | — | (70,841 | ) | ||||||||||||||||
Taxes paid on cashless exercise of restricted stock units | (29 | ) | (196 | ) | (356 | ) | ||||||||||||||
Dividend | (71,429 | ) | — | |||||||||||||||||
Withholding taxes paid on cashless exercise of restricted stock and restricted stock units | (11 | ) | (29 | ) | ||||||||||||||||
Net cash used in financing activities | (29 | ) | (196 | ) | (65,663 | ) | (71,440 | ) | (29 | ) | ||||||||||
Net (decrease) increase in cash and cash equivalents | (55,457 | ) | (50,890 | ) | 189,773 | |||||||||||||||
Net (decrease) in cash and cash equivalents | (60,272 | ) | (55,457 | ) | ||||||||||||||||
Cash and cash equivalents, beginning of period | 142,018 | 192,908 | 3,135 | 86,561 | 142,018 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 86,561 | $ | 142,018 | $ | 192,908 | $ | 26,289 | $ | 86,561 | ||||||||||
Cash paid for income taxes | $ | 2 | $ | 2 | $ | 38,977 | $ | — | $ | 2 |
Classification of Payment Received in the Company’s Condensed Consolidated Statement of Operations | ||||
Year Ended: | ||||
December 31, 2020 | ||||
Revenue (royalties) | $ | 302,428 | ||
Operating expenses: selling, general and administrative (reimbursed litigation costs) | 2,114 | |||
Other income: gain (willful infringement) | 41,271 | |||
Other income: interest income (pre- and post-judgment interest) | 108,221 | |||
Total cash received | $ | 454,034 |
December 31 | December 31 | |||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||
Office furniture | $ | 79 | $ | 79 | $ | 143 | $ | 79 | ||||||||
Computer equipment | 92 | 92 | 92 | 92 | ||||||||||||
Total | 171 | 171 | 235 | 171 | ||||||||||||
Less accumulated depreciation | (160 | ) | (153 | ) | (168 | ) | (160 | ) | ||||||||
Total property and equipment, net | $ | 11 | $ | 18 | $ | 67 | $ | 11 |
Options Outstanding | Options Vested and Exercisable | |||||||||||||||||||||||
Range of Exercise Prices | Number Outstanding | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | Number Exercisable | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | ||||||||||||||||||
$ 1.22 - 1.58 | 801,004 | 9.40 | $ | 1.48 | 122,001 | 9.38 | $ | 1.45 | ||||||||||||||||
$ 2.35 - 6.95 | 5,504,396 | 5.66 | $ | 4.50 | 4,602,729 | 5.17 | $ | 4.42 | ||||||||||||||||
$ 14.52 - 35.05 | 510,625 | 0.93 | $ | 20.32 | 510,625 | 0.93 | $ | 20.32 | ||||||||||||||||
6,816,025 | 5.75 | $ | 5.33 | 5,235,355 | 4.86 | $ | 5.90 |
Options Outstanding | Options Vested and Exercisable | |||||||||||||||||||||||
Range of Exercise Prices | Number Outstanding | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | Number Exercisable | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | ||||||||||||||||||
$ 10.00 - 31.60 | 41,925 | 8.45 | $ | 28.67 | 17,519 | 8.45 | $ | 28.16 | ||||||||||||||||
$ 34.80 - 139.00 | 275,217 | 4.66 | $ | 90.31 | 252,243 | 4.42 | $ | 90.00 | ||||||||||||||||
$ 290.40 - 308.00 | 12,875 | 0.49 | $ | 304.24 | 12,875 | 0.49 | $ | 304.24 | ||||||||||||||||
330,017 | 4.98 | $ | 90.63 | 282,637 | 4.49 | $ | 95.70 |
Options | ||||||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||||||
Outstanding at December 31, 2019 | 5,630,021 | $ | 8.49 | — | $ | — | ||||||||||
Options granted | 747,500 | 6.07 | — | — | ||||||||||||
Options exercised | (262,031 | ) | 3.99 | — | — | |||||||||||
Options cancelled | (302,969 | ) | 5.30 | — | — | |||||||||||
Outstanding at December 31, 2020 | 5,812,521 | $ | 8.55 | — | $ | — | ||||||||||
Options granted | 999,500 | 4.43 | — | — | ||||||||||||
Options exercised | — | — | — | — | ||||||||||||
Options cancelled | (414,584 | ) | 22.54 | — | — | |||||||||||
Outstanding at December 31, 2021 | 6,397,437 | $ | 6.99 | — | $ | — | ||||||||||
Options granted | 801,004 | 1.48 | — | — | ||||||||||||
Options exercised | — | — | — | — | ||||||||||||
Options cancelled | (382,416 | ) | 25.06 | — | — | |||||||||||
Outstanding at December 31, 2022 | 6,816,025 | $ | 5.33 | 5.75 | $ | 3 | ||||||||||
Options exercisable at December 31, 2022 | 5,235,355 | $ | 5.90 | 4.86 | $ | 2 |
RSUs | ||||||||||||
Number of RSUs | Weighted Average Grant Date Fair Value | Aggregate Intrinsic Value | ||||||||||
Outstanding at December 31, 2019 | 498,489 | $ | 4.71 | $ | — | |||||||
RSUs granted | 218,329 | 6.89 | — | |||||||||
RSUs vested | (212,495 | ) | 4.63 | — | ||||||||
RSUs cancelled | — | — | — | |||||||||
Outstanding at December 31, 2020 | 504,323 | $ | 5.69 | $ | — | |||||||
RSUs granted | 236,661 | 4.61 | — | |||||||||
RSUs vested | (215,165 | ) | 5.23 | — | ||||||||
RSUs cancelled | (16,664 | ) | 5.45 | — | ||||||||
Outstanding at December 31, 2021 | 509,155 | $ | 5.38 | $ | — | |||||||
RSUs granted | 258,363 | 1.46 | — | |||||||||
RSUs vested | (215,413 | ) | 5.15 | — | ||||||||
RSUs cancelled | — | — | — | |||||||||
Outstanding at December 31, 2022 | 552,105 | $ | 3.65 | $ | — |
Options | ||||||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||||||
Outstanding, December 31, 2021 | 319,868 | $ | 139.80 | — | $ | — | ||||||||||
Options granted | 40,050 | 29.60 | — | — | ||||||||||||
Options exercised | — | — | — | — | ||||||||||||
Options cancelled | (19,120 | ) | 501.20 | — | — | |||||||||||
Outstanding, December 31, 2022 | 340,798 | $ | 106.60 | — | $ | — | ||||||||||
Options granted | 1,875 | 10.00 | — | — | ||||||||||||
Options exercised | — | — | — | — | ||||||||||||
Options cancelled | (12,656 | ) | 510.21 | — | — | |||||||||||
Outstanding, December 31, 2023 | 330,017 | $ | 90.63 | 4.98 | $ | — | ||||||||||
Options exercisable, December 31, 2023 | 282,637 | $ | 95.70 | 4.49 | $ | — |
RSUs | ||||||||||||
Number of RSUs | Weighted Average Grant Date Fair Value | Aggregate Intrinsic Value | ||||||||||
Outstanding, December 31, 2021 | 25,457 | $ | 107.80 | $ | — | |||||||
RSUs granted | 12,918 | 29.20 | — | |||||||||
RSUs vested | (10,770 | ) | 103.00 | — | ||||||||
RSUs cancelled | — | — | — | |||||||||
Outstanding, December 31, 2022 | 27,605 | $ | 73.00 | $ | — | |||||||
RSUs granted | 1,250 | 10.00 | — | |||||||||
RSUs vested | (11,405 | ) | 83.81 | — | ||||||||
RSUs cancelled | — | — | — | |||||||||
Outstanding, December 31, 2023 | 17,450 | $ | 60.81 | $ | — |
Restricted Stock | ||||||||||||
Number of Restricted Stock | Weighted Average Grant Date Fair Value | Aggregate Intrinsic Value | ||||||||||
Outstanding, December 31, 2022 | — | $ | — | $ | — | |||||||
Restricted stock granted | 36,927 | 9.12 | — | |||||||||
Restricted stock vested | (3,617 | ) | 9.19 | — | ||||||||
Restricted stock cancelled | (604 | ) | 9.60 | — | ||||||||
Outstanding, December 31, 2023 | 32,706 | $ | 9.11 | $ | — |
Stock-Based Compensation by Type of Award | Year Ended December 31, 2022 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||||||||
Stock options | $ | 2,303 | $ | 3,067 | $ | 2,872 | $ | 1,960 | $ | 2,303 | ||||||||||
RSUs | 1,027 | 1,117 | 1,066 | 778 | 1,027 | |||||||||||||||
Restricted stock | 40 | |||||||||||||||||||
Total stock-based compensation expense | $ | 3,330 | $ | 4,184 | $ | 3,938 | $ | 2,778 | $ | 3,330 |
Year Ended December 31, 2022 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||||||||
Expected stock price volatility | 85.39 | % | 90.58 | % | 93.45 | % | 81.39 | % | 85.39 | % | ||||||||||
Risk-free interest rate | 3.09 | % | 1.06 | % | 0.63 | % | 3.9 | % | 3.09 | % | ||||||||||
Expected life term | 6.2 years | 6.2 years | 6.2 years | 5.5 years | 6.2 years | |||||||||||||||
Expected dividends | 0 | % | 0 | % | 0 | % | 0 | % | 0 | % |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||
2022 | 2021 | 2020 | 2023 | 2022 | ||||||||||||||||
Net (loss) income | $ | (36,260 | ) | $ | (42,921 | ) | $ | 280,429 | $ | (27,871 | ) | $ | (36,260 | ) | ||||||
Basic weighted average number of shares outstanding | 71,335 | 71,159 | 70,850 | 3,579 | 3,565 | |||||||||||||||
Effect of dilutive securities | — | — | 766 | — | — | |||||||||||||||
Diluted weighted average number of shares outstanding | 71,335 | 71,159 | 71,616 | 3,579 | 3,565 | |||||||||||||||
Basic (loss) earnings per share | $ | (0.51 | ) | $ | (0.60 | ) | $ | 3.96 | $ | (7.79 | ) | $ | (10.17 | ) | ||||||
Diluted (loss) earnings per share | $ | (0.51 | ) | $ | (0.60 | ) | $ | 3.92 | $ | (7.79 | ) | $ | (10.17 | ) |
Warrants Issued | Exercise Price | Outstanding and Exercisable December 31, 2021 | Issued | Exercised | Terminated / Cancelled | Outstanding and Exercisable December 31, 2022 | Expiration Date | |||||||||||||||||||||
25,000 | $ | 5.75 | 25,000 | — | — | — | 25,000 | April 30, 2025 |
Warrants Issued | Exercise Price | Outstanding and Exercisable December 31, 2022 | Issued | Exercised | Terminated / Cancelled | Outstanding and Exercisable December 31, 2023 | Expiration Date | |||||||||||||||||||||
1,250 | $ | 115 | 1,250 | — | — | — | 1,250 | April 30, 2025 |
Year Ended December 31, 2022 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||||||||
Current: | ||||||||||||||||||||
Federal | $ | — | $ | 661 | $ | 35,122 | $ | — | $ | — | ||||||||||
State | 3 | 35 | 950 | 2 | 3 | |||||||||||||||
Foreign | — | — | — | — | — | |||||||||||||||
3 | 696 | 36,072 | 2 | 3 | ||||||||||||||||
Deferred: | ||||||||||||||||||||
Federal | 15,920 | (7,025 | ) | (8,816 | ) | (79 | ) | 15,920 | ||||||||||||
State | 109 | 124 | (233 | ) | (2 | ) | 109 | |||||||||||||
16,029 | (6,901 | ) | (9,049 | ) | (81 | ) | 16,029 | |||||||||||||
Total income tax (benefit) provision | $ | 16,032 | $ | (6,205 | ) | $ | 27,023 | $ | (79 | ) | $ | 16,032 |
Year Ended December 31, 2022 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||||||||
United States federal statutory rate | 21.00 | % | 21.00 | % | 21.00 | % | 21.00 | % | 21.00 | % | ||||||||||
State taxes, net of federal benefit | (0.55 | )% | (0.31 | )% | 0.17 | % | (0.01 | )% | (0.55 | )% | ||||||||||
Valuation allowance | (91.21 | )% | — | (12.22 | )% | (20.31 | )% | (91.21 | )% | |||||||||||
Stock based compensation | (9.44 | )% | (6.68 | )% | (0.01 | )% | (0.58 | )% | (9.44 | )% | ||||||||||
R&D Credit | 1.22 | % | 0.19 | % | (0.21 | )% | 2.20 | % | 1.22 | % | ||||||||||
Other | (0.29 | )% | (1.57 | )% | 0.06 | % | (2.03 | )% | (0.29 | )% | ||||||||||
Effective income tax rate | (79.27 | )% | 12.63 | % | 8.79 | % | 0.28 | % | (79.27 | )% |
As of December 31, 2022 | As of December 31, 2021 | As of December 31, 2023 | As of December 31, 2022 | |||||||||||||
Deferred tax assets: | ||||||||||||||||
Reserves and accruals | $ | 147 | $ | 58 | $ | 65 | $ | 147 | ||||||||
Research and development credits and other credits | 430 | 92 | 1,110 | 430 | ||||||||||||
Net operating loss carry forward | 11,988 | 9,519 | 15,262 | 11,988 | ||||||||||||
Stock based compensation | 5,018 | 6,287 | 4,360 | 5,018 | ||||||||||||
Other | 970 | — | 2,382 | 970 | ||||||||||||
Total deferred tax assets | $ | 18,553 | $ | 15,956 | $ | 23,179 | $ | 18,553 | ||||||||
Valuation allowance | (18,553) | — | (23,179 | ) | (18,553 | ) | ||||||||||
Deferred tax assets after valuation allowance | — | 15,956 | — | — | ||||||||||||
Total deferred tax liability – depreciation and amortization | — | (6 | ) | — | — | |||||||||||
Net deferred tax assets | $ | — | $ | 15,950 | $ | — | $ | — |
December 31, 2022 | December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Adjusted Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Investments Available for Sale | Adjusted Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Investments Available for Sale | |||||||||||||||||||||||||||||||||||||
Cash | $ | 16,949 | $ | — | $ | — | $ | 16,949 | $ | 16,949 | $ | — | $ | 1,452 | $ | — | $ | — | $ | 1,452 | $ | 1,452 | $ | — | ||||||||||||||||||||||||
Level 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mutual funds | 66,493 | — | — | 66,493 | 66,493 | — | 20,040 | — | — | 20,040 | 20,040 | — | ||||||||||||||||||||||||||||||||||||
U.S. agency and treasury securities | 68,958 | 9 | (386 | ) | 68,581 | 3,119 | 65,462 | 32,046 | 27 | (18 | ) | 32,055 | 4,797 | 27,258 | ||||||||||||||||||||||||||||||||||
135,451 | 9 | (386 | ) | 135,074 | 69,612 | 65,462 | 52,086 | 27 | (18 | ) | 52,095 | 24,837 | 27,258 | |||||||||||||||||||||||||||||||||||
Total | $ | 152,400 | $ | 9 | $ | (386 | ) | $ | 152,023 | $ | 86,561 | $ | 65,462 | $ | 53,538 | $ | 27 | $ | (18 | ) | $ | 53,547 | $ | 26,289 | $ | 27,258 |
December 31, 2021 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Adjusted Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Investments Available for Sale | Adjusted Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Investments Available for Sale | |||||||||||||||||||||||||||||||||||||
Cash | $ | 35,428 | $ | — | $ | — | $ | 35,428 | $ | 35,428 | $ | — | $ | 16,949 | $ | — | $ | — | $ | 16,949 | $ | 16,949 | $ | — | ||||||||||||||||||||||||
Level 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mutual funds | 106,590 | — | — | 106,590 | 106,590 | — | 66,493 | — | — | 66,493 | 66,493 | — | ||||||||||||||||||||||||||||||||||||
U.S. agency and treasury securities | 27,304 | — | (50 | ) | 27,254 | — | 27,254 | 68,958 | 9 | (386 | ) | 68,581 | 3,119 | 65,462 | ||||||||||||||||||||||||||||||||||
133,894 | — | (50 | ) | 133,844 | 106,590 | 27,254 | 135,451 | 9 | (386 | ) | 135,074 | 69,612 | 65,462 | |||||||||||||||||||||||||||||||||||
Total | $ | 169,322 | $ | — | $ | (50 | ) | $ | 169,272 | $ | 142,018 | $ | 27,254 | $ | 152,400 | $ | 9 | $ | (386 | ) | $ | 152,023 | $ | 86,561 | $ | 65,462 |
Due in 2024 | $ | 494 | ||
Due in 2025 | $ | 946 | ||
Due in 2026 | $ | 927 | ||
Due in 2027 | $ | 954 | ||
Due in 2028 | $ | 983 | ||
Thereafter | $ | 336 | ||
Total undiscounted lease liability | $ | 4,640 | ||
Less: imputed interest | $ | (1,001 | ) | |
Total lease liability | $ | 3,639 |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Item 9A. | Controls and Procedures |
Item 9C. | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections |
Item 10. | Directors, Executive Officers and Corporate Governance |
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options and RSUs | Weighted-Average Exercise Price of Outstanding Options and RSUs | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans | |||||||||
Equity compensation plans approved by security holders | 347,467 | $ | 89.32 | 225,778 | ||||||||
Equity compensation plans not approved by security holders | — | — | ||||||||||
Total | 347,467 | $ | 89.32 | 225,778 |
Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options and RSUs | Weighted-Average Exercise Price of Outstanding Options and RSUs | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans | |||||||||
Equity compensation plans approved by security holders | 7,368,130 | $ | 5.21 | 1,563,345 | ||||||||
Equity compensation plans not approved by security holders | — | — | ||||||||||
Total | 7,368,130 | $ | 5.21 | 1,563,345 |
Item 13. | Certain Relationships and Related Transactions, and Director Independence |
Item 14. | Principal |
Item 15. | Exhibits and Financial Statement Schedules |
(a) | The following documents are filed as part of this Annual Report on Form 10-K |
(1) | Financial Statements: See the Index to Consolidated Financial Statements under Item 8 of this Annual Report on Form 10-K. |
(2) | Financial Statement Schedule: Financial statement schedules are omitted because they are not applicable, or the required information is shown in the financial statements or notes thereto. All other schedules are omitted because of the absence of conditions under which they are required or because the required information is given in the financial statements or the notes thereto. |
(3) | Exhibits: The documents listed in the Exhibit Index of this Annual Report on Form 10-K are incorporated by reference or are filed with this Annual Report on Form 10-K, in each case as indicated therein (numbered in accordance with Item 601 of Regulation S-K). |
Exhibit Number | Description | Incorporated by reference herein | Description | Incorporated by reference herein | ||||||||
Form | Exhibit No. | Filing Date | File No. | Filed Herewith | Form | Exhibit No. | Filing Date | File No. | Filed Herewith | |||
3.1 | 8-K | 3.1 | 11/01/2007 | 000-26895 | 8-K | 3.1 | 11/01/2007 | 000-26895 | ||||
3.2 | 8-K | 3.1 | 1/27/2023 | 001-33852 | 8-K | 3.1 | 10/25/2023 | 001-33852 | ||||
3.3 | 8-K | 3.1 | 1/27/2023 | 001-33852 | ||||||||
4.2 | S-3 | 4.1 | 07/30/2018 | 333-226413 | S-3 | 4.1 | 07/30/2018 | 333-226413 | ||||
4.3 | S-3 | 4.2 | 07/30/2018 | 333-226413 | S-3 | 4.2 | 07/30/2018 | 333-226413 | ||||
4.4 | S-3 | 4.4 | 07/30/2018 | 333-226413 | S-3 | 4.4 | 07/30/2018 | 333-226413 | ||||
4.5 | 10-K | 4.6 | 03/16/2020 | 001-33852 | 10-K | 4.6 | 03/16/2020 | 001-33852 | ||||
10.1 | 10-K | 10.1 | 03/18/2019 | 001-33852 | 10-K | 10.1 | 03/18/2019 | 001-33852 | ||||
10.2* | 10-Q | 10.2 | 05/10/2012 | 001-33852 | 10-Q | 10.2 | 05/10/2012 | 001-33852 | ||||
10.3* | 10-Q | 4.5 | 05/10/2011 | 001-33852 | 10-Q | 4.5 | 05/10/2011 | 001-33852 | ||||
10.4* | 10-Q | 10.3 | 05/10/2012 | 001-33852 | 10-Q | 10.3 | 05/10/2012 | 001-33852 | ||||
10.5* | DEF 14A | Appendix A | 04/13/2021 | 001-33852 | DEF 14A | Appendix A | 04/13/2021 | 001-33852 | ||||
10.6* | 10-K | 10.6 | 03/02/2015 | 001-33852 | S-8 | 10.1 | 06/15/2023 | 333-272677 | ||||
10.7* | 10-K | 10.7 | 03/02/2015 | 001-33852 | 10-K | 10.6 | 03/02/2015 | 001-33852 | ||||
10.8* | 10-K | 10.7 | 03/02/2015 | 001-33852 | ||||||||
10.9* | 10-Q | 10.2 | 08/11/2023 | 001-33852 | ||||||||
10.10 | 8-K | 10.4 | 07/12/2007 | 000-26895 | ||||||||
10.11** | 8-K | 10.6 | 07/12/2007 | 000-26895 | ||||||||
10.12 | 8-K | 10.4 | 07/12/2007 | 000-26895 | 8-K | 10.1 | 03/18/2008 | 001-33852 | ||||
10.13** | 8-K | 10.6 | 07/12/2007 | 000-26895 | ||||||||
10.13 | 8-K | 10.5 | 07/12/2007 | 000-26895 | ||||||||
10.14 | 8-K | 10.1 | 03/18/2008 | 001-33852 | 8-K | 10.7 | 07/12/2007 | 000-26895 | ||||
10.15 | 8-K | 10.5 | 07/12/2007 | 000-26895 | 8-K | 10.8 | 07/12/2007 | 000-26895 | ||||
10.16 | 8-K | 10.7 | 07/12/2007 | 000-26895 | ||||||||
10.17 | 8-K | 10.8 | 07/12/2007 | 000-26895 | ||||||||
10.18** | 10-Q/A | 10.1 | 01/31/2011 | 001-33852 | ||||||||
10.19** | 10-K | 10.23 | 03/02/2015 | 001-33852 | ||||||||
10.20** | 10-Q | 10.1 | 11/09/2017 | 001-33852 | ||||||||
10.21 | 10-Q | 10.2 | 11/09/2017 | 001-33852 | ||||||||
10.22 | 8-K | 10.1 | 08/31/2018 | 001-33852 | ||||||||
10.23* | 10-Q | 10.1 | 11/08/2021 | 001-33852 | ||||||||
21.1 | 10-K | 21.1 | 03/16/2021 | 001-33852 | ||||||||
10.16** | 10-Q/A | 10.1 | 01/31/2011 | 001-33852 | ||||||||
10.17** | 10-K | 10.23 | 03/02/2015 | 001-33852 | ||||||||
10.18* | 10-Q | 10.1 | 11/08/2021 | 001-33852 | ||||||||
10.19* | Offer Letter by and between Darl C. McBride and the Company, dated as of December 22, 2023. | X | ||||||||||
10.20 | 8-K | 10.1 | 03/30/2023 | 001-33852 |
10.21 | 10-Q | 10.2 | 05/15/2023 | 001-33852 | ||
10.22* | Outside Director Compensation Policy, as amended. | X | ||||
21.1 | 10-K | 21.1 | 03/16/2021 | 001-33852 | ||
Consent of Farber Hass Hurley LLP, Independent Registered Public Accounting Firm. | X | |||||
24.1 | Power of Attorney (contained on signature page hereto) | X | ||||
Chief Executive Officer Certification pursuant to Rule 13a-14(a) of the Securities Exchange Act. | X | |||||
Chief Financial Officer Certification pursuant to Rule 13a-14(a) of the Securities Exchange Act. | X | |||||
Chief Executive Officer Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | |||||
Chief Financial Officer Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||
97.1* | Compensation Recovery Policy of the Company as adopted November 8, 2023. | X | ||||
101.INS | XBRL Instance Document | X | ||||
101.SCH | XBRL Taxonomy Extension Schema Document | X | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | X | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | X | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | X |
* | Indicates management contract or compensatory plan. |
** | Confidential treatment has been granted by the SEC as to certain portions of this exhibit. |
*** | Portions of this exhibit have been omitted pending a determination by the SEC as to whether these portions should be granted confidential treatment. |
† | The certifications attached as Exhibit 32.1 and 32.2 that accompany this Report are not deemed filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of VirnetX Holding Corporation under the Securities Act or the Exchange Act, whether before or after the date of this Report, irrespective of any general incorporation language contained in such filing. |
VirnetX Holding Corporation | ||
By: | /s/ Kendall Larsen | |
Name: Kendall Larsen | ||
Title: Chief Executive Officer and President | ||
Dated: March |
Name | Capacity | Date | ||
/s/Kendall Larsen | Director, Chief Executive Officer and President | March | ||
Kendall Larsen | (Principal Executive Officer) | |||
/s/Katherine Allanson | Chief Financial Officer | March | ||
Katherine Allanson | (Principal Financial Officer and Principal Accounting Officer) | |||
/s/Robert D. Short III | Director | March | ||
Robert D. Short III | ||||
/s/Gary Feiner | Director | March | ||
Gary Feiner | ||||
/s/Michael F. Angelo | Director | March | ||
Michael F. Angelo | ||||
/s/Thomas M. O’Brien | Director | March | ||
Thomas M. O’Brien |