10-Q Filing

VIRNETX HOLDING CORP CIK: 1082324 Q2 2016

Filing Information

Form Type	10-Q
Accession Number	`0001140361-16-075490`
Period End Date	20160630
Filing Date	20160809
Fiscal Year	2016
Fiscal Period	Q2
XBRL Instance	vhc-20160630.xml

Filing Contents

This filing contains the following financial statements:

Balance Sheet 62 Income Statement 52 Cash Flow Statement 58 Comprehensive Income 20

Balance Sheet 62 line items

Line Item	Tag	Value	Unit	Period
Preferred stock, par value (in dollars per share)	`PreferredStockParOrStatedValuePerShare`	$0.00	USD	Point-in-time
Preferred stock, par value (in dollars per share)	`PreferredStockParOrStatedValuePerShare`	$0.00	USD	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$18.66M	USD	Point-in-time
Preferred stock, shares authorized (in shares)	`PreferredStockSharesAuthorized`	10.00M	shares	Point-in-time
Preferred stock, shares authorized (in shares)	`PreferredStockSharesAuthorized`	10.00M	shares	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$9.91M	USD	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$8.73M	USD	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$13.04M	USD	Point-in-time
Preferred stock, shares issued (in shares)	`PreferredStockSharesIssued`	0.00	shares	Point-in-time
Investments available for sale	`AvailableForSaleSecuritiesDebtSecuritiesCurrent`	$9.95M	USD	Point-in-time
Preferred stock, shares issued (in shares)	`PreferredStockSharesIssued`	0.00	shares	Point-in-time
Investments available for sale	`AvailableForSaleSecuritiesDebtSecuritiesCurrent`	$8.30M	USD	Point-in-time
Preferred stock, shares outstanding (in shares)	`PreferredStockSharesOutstanding`	0.00	shares	Point-in-time
Prepaid expenses and other current assets	`PrepaidExpenseAndOtherAssetsCurrent`	$685.00K	USD	Point-in-time
Preferred stock, shares outstanding (in shares)	`PreferredStockSharesOutstanding`	0.00	shares	Point-in-time
Prepaid expenses and other current assets	`PrepaidExpenseAndOtherAssetsCurrent`	$833.00K	USD	Point-in-time
Total current assets	`AssetsCurrent`	$19.36M	USD	Point-in-time
Common stock, par value (in dollars per share)	`CommonStockParOrStatedValuePerShare`	$0.00	USD	Point-in-time
Total current assets	`AssetsCurrent`	$19.05M	USD	Point-in-time
Common stock, par value (in dollars per share)	`CommonStockParOrStatedValuePerShare`	$0.00	USD	Point-in-time
Common stock, shares authorized (in shares)	`CommonStockSharesAuthorized`	100.00M	shares	Point-in-time
Prepaid expenses, non-current	`PrepaidExpenseNoncurrent`	$2.76M	USD	Point-in-time
Prepaid expenses, non-current	`PrepaidExpenseNoncurrent`	$2.57M	USD	Point-in-time
Common stock, shares authorized (in shares)	`CommonStockSharesAuthorized`	100.00M	shares	Point-in-time
Property and equipment, net	`PropertyPlantAndEquipmentNet`	$48.00K	USD	Point-in-time
Property and equipment, net	`PropertyPlantAndEquipmentNet`	$38.00K	USD	Point-in-time
Common stock, shares issued (in shares)	`CommonStockSharesIssued`	53.20M	shares	Point-in-time
Common stock, shares issued (in shares)	`CommonStockSharesIssued`	56.44M	shares	Point-in-time
Common stock, shares outstanding (in shares)	`CommonStockSharesOutstanding`	56.44M	shares	Point-in-time
Common stock, shares outstanding (in shares)	`CommonStockSharesOutstanding`	53.20M	shares	Point-in-time
Total assets	`Assets`	$22.17M	USD	Point-in-time
Total assets	`Assets`	$21.65M	USD	Point-in-time
Accounts payable and accrued liabilities	`AccountsPayableAndAccruedLiabilitiesCurrent`	$2.28M	USD	Point-in-time
Accounts payable and accrued liabilities	`AccountsPayableAndAccruedLiabilitiesCurrent`	$1.50M	USD	Point-in-time
Accrued payroll and related expenses	`EmployeeRelatedLiabilitiesCurrent`	$1.38M	USD	Point-in-time
Accrued payroll and related expenses	`EmployeeRelatedLiabilitiesCurrent`	-	USD	Point-in-time
Related-party payable	`DueToRelatedPartiesCurrent`	$11.00K	USD	Point-in-time
Related-party payable	`DueToRelatedPartiesCurrent`	$21.00K	USD	Point-in-time
Income tax liability	`AccruedIncomeTaxesCurrent`	$400.00K	USD	Point-in-time
Income tax liability	`AccruedIncomeTaxesCurrent`	$400.00K	USD	Point-in-time
Deferred revenue, current portion	`DeferredRevenueCurrent`	$1.50M	USD	Point-in-time
Deferred revenue, current portion	`DeferredRevenueCurrent`	$1.50M	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$5.58M	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$3.42M	USD	Point-in-time
Deferred revenue, non-current portion	`DeferredRevenueNoncurrent`	$750.00K	USD	Point-in-time
Deferred revenue, non-current portion	`DeferredRevenueNoncurrent`	$1.50M	USD	Point-in-time
Commitments and contingencies (Note 4)	`CommitmentsAndContingencies`	-	USD	Point-in-time
Commitments and contingencies (Note 4)	`CommitmentsAndContingencies`	-	USD	Point-in-time
Preferred stock, par value $0.0001 per share Authorized: 10,000,000 shares at June 30, 2016 and December 31, 2015, Issued and outstanding: 0 shares at June 30, 2016 and December 31, 2015	`PreferredStockValue`	-	USD	Point-in-time
Preferred stock, par value $0.0001 per share Authorized: 10,000,000 shares at June 30, 2016 and December 31, 2015, Issued and outstanding: 0 shares at June 30, 2016 and December 31, 2015	`PreferredStockValue`	-	USD	Point-in-time
Common stock, par value $0.0001 per share Authorized: 100,000,000 shares at June 30, 2016 and December 31, 2015, Issued and outstanding: 56,435,095 shares and 53,198,835 shares, at June 30, 2016 and December 31, 2015, respectively	`CommonStockValue`	$6.00K	USD	Point-in-time
Common stock, par value $0.0001 per share Authorized: 100,000,000 shares at June 30, 2016 and December 31, 2015, Issued and outstanding: 56,435,095 shares and 53,198,835 shares, at June 30, 2016 and December 31, 2015, respectively	`CommonStockValue`	$5.00K	USD	Point-in-time
Additional paid-in capital	`AdditionalPaidInCapital`	$144.78M	USD	Point-in-time
Additional paid-in capital	`AdditionalPaidInCapital`	$161.10M	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-143.62M	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-129.67M	USD	Point-in-time
Accumulated other comprehensive loss	`AccumulatedOtherComprehensiveIncomeLossNetOfTax`	$-2.00K	USD	Point-in-time
Accumulated other comprehensive loss	`AccumulatedOtherComprehensiveIncomeLossNetOfTax`	$-19.00K	USD	Point-in-time
Total stockholders' equity	`StockholdersEquity`	$17.48M	USD	Point-in-time
Total stockholders' equity	`StockholdersEquity`	$15.10M	USD	Point-in-time
Total liabilities and stockholders' equity	`LiabilitiesAndStockholdersEquity`	$21.65M	USD	Point-in-time
Total liabilities and stockholders' equity	`LiabilitiesAndStockholdersEquity`	$22.17M	USD	Point-in-time

Income Statement 52 line items

Line Item	Tag	Value	Unit	Period
Revenue	`RoyaltyRevenue`	$775.00K	USD	2 Qtrs
Revenue	`RoyaltyRevenue`	$400.00K	USD	1 Quarter
Revenue	`RoyaltyRevenue`	$773.00K	USD	2 Qtrs
Revenue	`RoyaltyRevenue`	$398.00K	USD	1 Quarter
Royalty expense	`RoyaltyExpense`	-	USD	2 Qtrs
Royalty expense	`RoyaltyExpense`	$4.24M	USD	1 Quarter
Royalty expense	`RoyaltyExpense`	-	USD	1 Quarter
Royalty expense	`RoyaltyExpense`	$4.24M	USD	2 Qtrs
Research and development	`ResearchAndDevelopmentExpense`	$931.00K	USD	2 Qtrs
Research and development	`ResearchAndDevelopmentExpense`	$417.00K	USD	1 Quarter
Research and development	`ResearchAndDevelopmentExpense`	$481.00K	USD	1 Quarter
Research and development	`ResearchAndDevelopmentExpense`	$809.00K	USD	2 Qtrs
Selling, general and administrative	`SellingGeneralAndAdministrativeExpense`	$5.31M	USD	1 Quarter
Selling, general and administrative	`SellingGeneralAndAdministrativeExpense`	$11.06M	USD	2 Qtrs
Selling, general and administrative	`SellingGeneralAndAdministrativeExpense`	$5.27M	USD	1 Quarter
Selling, general and administrative	`SellingGeneralAndAdministrativeExpense`	$13.81M	USD	2 Qtrs
Total operating expenses	`OperatingExpenses`	$16.10M	USD	2 Qtrs
Total operating expenses	`OperatingExpenses`	$14.74M	USD	2 Qtrs
Total operating expenses	`OperatingExpenses`	$5.75M	USD	1 Quarter
Total operating expenses	`OperatingExpenses`	$9.97M	USD	1 Quarter
Loss from operations	`OperatingIncomeLoss`	$-15.33M	USD	2 Qtrs
Loss from operations	`OperatingIncomeLoss`	$-5.35M	USD	1 Quarter
Loss from operations	`OperatingIncomeLoss`	$-13.97M	USD	2 Qtrs
Loss from operations	`OperatingIncomeLoss`	$-9.57M	USD	1 Quarter
Loss on change in value of derivative liability	`UnrealizedGainLossOnDerivatives`	-	USD	2 Qtrs
Loss on change in value of derivative liability	`UnrealizedGainLossOnDerivatives`	-	USD	1 Quarter
Loss on change in value of derivative liability	`UnrealizedGainLossOnDerivatives`	-	USD	1 Quarter
Loss on change in value of derivative liability	`UnrealizedGainLossOnDerivatives`	$-117.00K	USD	2 Qtrs
Interest income, net	`InterestIncomeExpenseNonoperatingNet`	$21.00K	USD	1 Quarter
Interest income, net	`InterestIncomeExpenseNonoperatingNet`	$16.00K	USD	1 Quarter
Interest income, net	`InterestIncomeExpenseNonoperatingNet`	$45.00K	USD	2 Qtrs
Interest income, net	`InterestIncomeExpenseNonoperatingNet`	$31.00K	USD	2 Qtrs
Loss before taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments`	$-15.40M	USD	2 Qtrs
Loss before taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments`	$-13.94M	USD	2 Qtrs
Loss before taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments`	$-5.34M	USD	1 Quarter
Loss before taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments`	$-9.55M	USD	1 Quarter
Provision for income tax	`IncomeTaxExpenseBenefit`	$7.00K	USD	2 Qtrs
Provision for income tax	`IncomeTaxExpenseBenefit`	$2.00K	USD	2 Qtrs
Provision for income tax	`IncomeTaxExpenseBenefit`	-	USD	1 Quarter
Provision for income tax	`IncomeTaxExpenseBenefit`	-	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-13.95M	USD	2 Qtrs
Net loss	`NetIncomeLoss`	$-5.34M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-15.40M	USD	2 Qtrs
Net loss	`NetIncomeLoss`	$-9.55M	USD	1 Quarter
Basic and diluted loss per share (in dollars per share)	`EarningsPerShareBasicAndDiluted`	$-0.30	USD	2 Qtrs
Basic and diluted loss per share (in dollars per share)	`EarningsPerShareBasicAndDiluted`	$-0.10	USD	1 Quarter
Basic and diluted loss per share (in dollars per share)	`EarningsPerShareBasicAndDiluted`	$-0.25	USD	2 Qtrs
Basic and diluted loss per share (in dollars per share)	`EarningsPerShareBasicAndDiluted`	$-0.18	USD	1 Quarter
Weighted average shares outstanding basic and diluted (in shares)	`WeightedAverageNumberOfShareOutstandingBasicAndDiluted`	52.09M	shares	2 Qtrs
Weighted average shares outstanding basic and diluted (in shares)	`WeightedAverageNumberOfShareOutstandingBasicAndDiluted`	52.16M	shares	1 Quarter
Weighted average shares outstanding basic and diluted (in shares)	`WeightedAverageNumberOfShareOutstandingBasicAndDiluted`	54.92M	shares	2 Qtrs
Weighted average shares outstanding basic and diluted (in shares)	`WeightedAverageNumberOfShareOutstandingBasicAndDiluted`	55.71M	shares	1 Quarter

Cash Flow Statement 58 line items

Line Item	Tag	Value	Unit	Period
Net loss	`NetIncomeLoss`	$-13.95M	USD	2 Qtrs
Net loss	`NetIncomeLoss`	$-5.34M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-15.40M	USD	2 Qtrs
Net loss	`NetIncomeLoss`	$-9.55M	USD	1 Quarter
Depreciation	`Depreciation`	$15.00K	USD	2 Qtrs
Depreciation	`Depreciation`	$13.00K	USD	2 Qtrs
Amortization of warrant issuance costs	`AmortizationOfWarrantIssuanceCosts`	$30.00K	USD	2 Qtrs
Amortization of warrant issuance costs	`AmortizationOfWarrantIssuanceCosts`	$30.00K	USD	2 Qtrs
Stock-based compensation	`AllocatedShareBasedCompensationExpense`	$2.56M	USD	2 Qtrs
Stock-based compensation	`AllocatedShareBasedCompensationExpense`	$3.44M	USD	2 Qtrs
Change in value of derivative liability	`UnrealizedGainLossOnDerivatives`	-	USD	2 Qtrs
Change in value of derivative liability	`UnrealizedGainLossOnDerivatives`	-	USD	1 Quarter
Change in value of derivative liability	`UnrealizedGainLossOnDerivatives`	-	USD	1 Quarter
Change in value of derivative liability	`UnrealizedGainLossOnDerivatives`	$-117.00K	USD	2 Qtrs
Prepaid expenses and other assets	`IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets`	$-14.00K	USD	2 Qtrs
Prepaid expenses and other assets	`IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets`	$17.00K	USD	2 Qtrs
Income tax liability	`IncreaseDecreaseInAccruedIncomeTaxesPayable`	-	USD	2 Qtrs
Income tax liability	`IncreaseDecreaseInAccruedIncomeTaxesPayable`	$-13.00K	USD	2 Qtrs
Accounts payable and accrued liabilities	`IncreaseDecreaseInAccountsPayableAndAccruedLiabilities`	$-2.80M	USD	2 Qtrs
Accounts payable and accrued liabilities	`IncreaseDecreaseInAccountsPayableAndAccruedLiabilities`	$-788.00K	USD	2 Qtrs
Related party payable	`IncreaseDecreaseInDueToRelatedParties`	$-81.00K	USD	2 Qtrs
Related party payable	`IncreaseDecreaseInDueToRelatedParties`	$10.00K	USD	2 Qtrs
Payroll accrual	`IncreaseDecreaseInEmployeeRelatedLiabilities`	-	USD	2 Qtrs
Payroll accrual	`IncreaseDecreaseInEmployeeRelatedLiabilities`	$-1.38M	USD	2 Qtrs
Royalty payable	`IncreaseDecreaseInRoyaltiesPayable`	-	USD	2 Qtrs
Royalty payable	`IncreaseDecreaseInRoyaltiesPayable`	$1.89M	USD	2 Qtrs
Deferred revenue	`IncreaseDecreaseInDeferredRevenue`	$-750.00K	USD	2 Qtrs
Deferred revenue	`IncreaseDecreaseInDeferredRevenue`	$-750.00K	USD	2 Qtrs
Net cash used in operating activities	`NetCashProvidedByUsedInOperatingActivitiesContinuingOperations`	$-13.58M	USD	2 Qtrs
Net cash used in operating activities	`NetCashProvidedByUsedInOperatingActivitiesContinuingOperations`	$-14.24M	USD	2 Qtrs
Purchase of property and equipment	`PaymentsToAcquirePropertyPlantAndEquipment`	$5.00K	USD	2 Qtrs
Purchase of property and equipment	`PaymentsToAcquirePropertyPlantAndEquipment`	$4.00K	USD	2 Qtrs
Purchase of investments	`PaymentsToAcquireAvailableForSaleSecurities`	$5.20M	USD	2 Qtrs
Purchase of investments	`PaymentsToAcquireAvailableForSaleSecurities`	$4.92M	USD	2 Qtrs
Proceeds from sale or maturity of investments	`ProceedsFromSaleAndMaturityOfMarketableSecurities`	$12.46M	USD	2 Qtrs
Proceeds from sale or maturity of investments	`ProceedsFromSaleAndMaturityOfMarketableSecurities`	$6.87M	USD	2 Qtrs
Net cash provided by investing activities	`NetCashProvidedByUsedInInvestingActivitiesContinuingOperations`	$7.53M	USD	2 Qtrs
Net cash provided by investing activities	`NetCashProvidedByUsedInInvestingActivitiesContinuingOperations`	$1.67M	USD	2 Qtrs
Proceeds from warrant exercise	`ProceedsFromWarrantExercises`	-	USD	2 Qtrs
Proceeds from warrant exercise	`ProceedsFromWarrantExercises`	$431.00K	USD	2 Qtrs
Proceeds from exercise of stock options	`ProceedsFromStockOptionsExercised`	-	USD	2 Qtrs
Proceeds from exercise of stock options	`ProceedsFromStockOptionsExercised`	$20.00K	USD	2 Qtrs
Proceeds from sale of common stock	`ProceedsFromIssuanceOfCommonStock`	$13.74M	USD	2 Qtrs
Proceeds from sale of common stock	`ProceedsFromIssuanceOfCommonStock`	-	USD	2 Qtrs
Net cash provided by financing activities	`NetCashProvidedByUsedInFinancingActivitiesContinuingOperations`	$431.00K	USD	2 Qtrs
Net cash provided by financing activities	`NetCashProvidedByUsedInFinancingActivitiesContinuingOperations`	$13.76M	USD	2 Qtrs
Net change in cash and cash equivalents	`NetCashProvidedByUsedInContinuingOperations`	$-5.61M	USD	2 Qtrs
Net change in cash and cash equivalents	`NetCashProvidedByUsedInContinuingOperations`	$1.19M	USD	2 Qtrs
Cash and cash equivalents, beginning of period	`CashAndCashEquivalentsAtCarryingValue`	$18.66M	USD	Point-in-time
Cash and cash equivalents, beginning of period	`CashAndCashEquivalentsAtCarryingValue`	$9.91M	USD	Point-in-time
Cash and cash equivalents, beginning of period	`CashAndCashEquivalentsAtCarryingValue`	$8.73M	USD	Point-in-time
Cash and cash equivalents, beginning of period	`CashAndCashEquivalentsAtCarryingValue`	$13.04M	USD	Point-in-time
Cash and cash equivalents, end of period	`CashAndCashEquivalentsAtCarryingValue`	$18.66M	USD	Point-in-time
Cash and cash equivalents, end of period	`CashAndCashEquivalentsAtCarryingValue`	$9.91M	USD	Point-in-time
Cash and cash equivalents, end of period	`CashAndCashEquivalentsAtCarryingValue`	$8.73M	USD	Point-in-time
Cash and cash equivalents, end of period	`CashAndCashEquivalentsAtCarryingValue`	$13.04M	USD	Point-in-time
Fair value of warrants issued for services	`IssuanceOfStockAndWarrantsForServicesOrClaims`	-	USD	2 Qtrs
Fair value of warrants issued for services	`IssuanceOfStockAndWarrantsForServicesOrClaims`	$121.00K	USD	2 Qtrs

Comprehensive Income 20 line items

Line Item	Tag	Value	Unit	Period
Net loss	`NetIncomeLoss`	$-13.95M	USD	2 Qtrs
Net loss	`NetIncomeLoss`	$-5.34M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-15.40M	USD	2 Qtrs
Net loss	`NetIncomeLoss`	$-9.55M	USD	1 Quarter
Change in equity adjustment from foreign currency translation, net of tax	`OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax`	$-3.00K	USD	2 Qtrs
Change in equity adjustment from foreign currency translation, net of tax	`OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax`	$3.00K	USD	2 Qtrs
Change in equity adjustment from foreign currency translation, net of tax	`OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax`	$4.00K	USD	1 Quarter
Change in equity adjustment from foreign currency translation, net of tax	`OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax`	$-3.00K	USD	1 Quarter
Change in unrealized gain on investments, net of tax	`OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax`	$7.00K	USD	2 Qtrs
Change in unrealized gain on investments, net of tax	`OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax`	$14.00K	USD	2 Qtrs
Change in unrealized gain on investments, net of tax	`OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax`	$3.00K	USD	1 Quarter
Change in unrealized gain on investments, net of tax	`OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax`	-	USD	1 Quarter
Total other comprehensive income gain (loss)	`OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent`	$7.00K	USD	1 Quarter
Total other comprehensive income gain (loss)	`OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent`	$-3.00K	USD	1 Quarter
Total other comprehensive income gain (loss)	`OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent`	$17.00K	USD	2 Qtrs
Total other comprehensive income gain (loss)	`OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent`	$4.00K	USD	2 Qtrs
Comprehensive loss	`ComprehensiveIncomeNetOfTax`	$-15.40M	USD	2 Qtrs
Comprehensive loss	`ComprehensiveIncomeNetOfTax`	$-13.93M	USD	2 Qtrs
Comprehensive loss	`ComprehensiveIncomeNetOfTax`	$-9.55M	USD	1 Quarter
Comprehensive loss	`ComprehensiveIncomeNetOfTax`	$-5.33M	USD	1 Quarter

Data is extracted from SEC EDGAR XBRL filings. Values shown are as reported in the filing.