10-Q Filing

VIRNETX HOLDING CORP CIK: 1082324 Q3 2017

Filing Information

Form Type	10-Q
Accession Number	`0001140361-17-041666`
Period End Date	20170930
Filing Date	20171109
Fiscal Year	2017
Fiscal Period	Q3
XBRL Instance	vhc-20170930.xml

Filing Contents

This filing contains the following financial statements:

Balance Sheet 64 Income Statement 48 Cash Flow Statement 56 Comprehensive Income 20

Balance Sheet 64 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`	$8.73M	USD	Point-in-time
Preferred stock, shares authorized (in shares)	`PreferredStockSharesAuthorized`	10.00M	shares	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$1.65M	USD	Point-in-time
Preferred stock, shares authorized (in shares)	`PreferredStockSharesAuthorized`	10.00M	shares	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$8.53M	USD	Point-in-time
Cash and cash equivalents	`CashAndCashEquivalentsAtCarryingValue`	$6.63M	USD	Point-in-time
Investments available for sale	`AvailableForSaleSecuritiesDebtSecuritiesCurrent`	$2.67M	USD	Point-in-time
Preferred stock, shares issued (in shares)	`PreferredStockSharesIssued`	0.00	shares	Point-in-time
Preferred stock, shares issued (in shares)	`PreferredStockSharesIssued`	0.00	shares	Point-in-time
Investments available for sale	`AvailableForSaleSecuritiesDebtSecuritiesCurrent`	$9.25M	USD	Point-in-time
Preferred stock, shares outstanding (in shares)	`PreferredStockSharesOutstanding`	0.00	shares	Point-in-time
Prepaid expenses and other current assets	`PrepaidExpenseAndOtherAssetsCurrent`	$692.00K	USD	Point-in-time
Prepaid expenses and other current assets	`PrepaidExpenseAndOtherAssetsCurrent`	$588.00K	USD	Point-in-time
Preferred stock, shares outstanding (in shares)	`PreferredStockSharesOutstanding`	0.00	shares	Point-in-time
Common stock, par value (in dollars per share)	`CommonStockParOrStatedValuePerShare`	$0.00	USD	Point-in-time
Total current assets	`AssetsCurrent`	$5.00M	USD	Point-in-time
Total current assets	`AssetsCurrent`	$16.46M	USD	Point-in-time
Common stock, par value (in dollars per share)	`CommonStockParOrStatedValuePerShare`	$0.00	USD	Point-in-time
Prepaid expenses, non-current	`PrepaidExpenseNoncurrent`	$2.37M	USD	Point-in-time
Common stock, shares authorized (in shares)	`CommonStockSharesAuthorized`	100.00M	shares	Point-in-time
Common stock, shares authorized (in shares)	`CommonStockSharesAuthorized`	100.00M	shares	Point-in-time
Prepaid expenses, non-current	`PrepaidExpenseNoncurrent`	$2.09M	USD	Point-in-time
Common stock, shares issued (in shares)	`CommonStockSharesIssued`	58.14M	shares	Point-in-time
Property and equipment, net	`PropertyPlantAndEquipmentNet`	$33.00K	USD	Point-in-time
Property and equipment, net	`PropertyPlantAndEquipmentNet`	$12.00K	USD	Point-in-time
Common stock, shares issued (in shares)	`CommonStockSharesIssued`	58.31M	shares	Point-in-time
Common stock, shares outstanding (in shares)	`CommonStockSharesOutstanding`	58.14M	shares	Point-in-time
Common stock, shares outstanding (in shares)	`CommonStockSharesOutstanding`	58.31M	shares	Point-in-time
Total assets	`Assets`	$18.87M	USD	Point-in-time
Total assets	`Assets`	$7.10M	USD	Point-in-time
Accounts payable and accrued liabilities	`AccountsPayableAndAccruedLiabilitiesCurrent`	$802.00K	USD	Point-in-time
Accounts payable and accrued liabilities	`AccountsPayableAndAccruedLiabilitiesCurrent`	$1.81M	USD	Point-in-time
Accrued payroll and related expenses	`EmployeeRelatedLiabilitiesCurrent`	$1.52M	USD	Point-in-time
Accrued payroll and related expenses	`EmployeeRelatedLiabilitiesCurrent`	$210.00K	USD	Point-in-time
Income tax liability	`AccruedIncomeTaxesCurrent`	$396.00K	USD	Point-in-time
Income tax liability	`AccruedIncomeTaxesCurrent`	$394.00K	USD	Point-in-time
Other current liabilities	`OtherLiabilitiesCurrent`	$140.00K	USD	Point-in-time
Other current liabilities	`OtherLiabilitiesCurrent`	-	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`	$5.22M	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$3.05M	USD	Point-in-time
Deferred revenue, non-current portion	`DeferredRevenueNoncurrent`	$1.38M	USD	Point-in-time
Deferred revenue, non-current portion	`DeferredRevenueNoncurrent`	$2.50M	USD	Point-in-time
Total liabilities	`Liabilities`	$7.72M	USD	Point-in-time
Total liabilities	`Liabilities`	$4.42M	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 September 30, 2017 and December 31, 2016, Issued and outstanding: 0 shares at September 30, 2017 and December 31, 2016	`PreferredStockValue`	-	USD	Point-in-time
Preferred stock, par value $0.0001 per share Authorized: 10,000,000 shares at September 30, 2017 and December 31, 2016, Issued and outstanding: 0 shares at September 30, 2017 and December 31, 2016	`PreferredStockValue`	-	USD	Point-in-time
Common stock, par value $0.0001 per share Authorized: 100,000,000 shares at September 30, 2017 and December 31, 2016, Issued and outstanding: 58,309,034 shares and 58,144,888 shares, at September 30, 2017 and December 31, 2016, respectively	`CommonStockValue`	$6.00K	USD	Point-in-time
Common stock, par value $0.0001 per share Authorized: 100,000,000 shares at September 30, 2017 and December 31, 2016, Issued and outstanding: 58,309,034 shares and 58,144,888 shares, at September 30, 2017 and December 31, 2016, respectively	`CommonStockValue`	$6.00K	USD	Point-in-time
Additional paid-in capital	`AdditionalPaidInCapital`	$169.39M	USD	Point-in-time
Additional paid-in capital	`AdditionalPaidInCapital`	$172.17M	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-169.48M	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-158.24M	USD	Point-in-time
Accumulated other comprehensive loss	`AccumulatedOtherComprehensiveIncomeLossNetOfTax`	$-14.00K	USD	Point-in-time
Accumulated other comprehensive loss	`AccumulatedOtherComprehensiveIncomeLossNetOfTax`	$-12.00K	USD	Point-in-time
Total stockholders' equity	`StockholdersEquity`	$11.15M	USD	Point-in-time
Total stockholders' equity	`StockholdersEquity`	$2.68M	USD	Point-in-time
Total liabilities and stockholders' equity	`LiabilitiesAndStockholdersEquity`	$18.87M	USD	Point-in-time
Total liabilities and stockholders' equity	`LiabilitiesAndStockholdersEquity`	$7.10M	USD	Point-in-time

Income Statement 48 line items

Line Item	Tag	Value	Unit	Period
Revenue	`RoyaltyRevenue`	$375.00K	USD	1 Quarter
Revenue	`RoyaltyRevenue`	$1.15M	USD	3 Qtrs
Revenue	`RoyaltyRevenue`	$1.15M	USD	3 Qtrs
Revenue	`RoyaltyRevenue`	$375.00K	USD	1 Quarter
Royalty expense	`RoyaltyExpense`	$884.00K	USD	3 Qtrs
Royalty expense	`RoyaltyExpense`	-	USD	3 Qtrs
Royalty expense	`RoyaltyExpense`	-	USD	1 Quarter
Royalty expense	`RoyaltyExpense`	$884.00K	USD	1 Quarter
Research and development	`ResearchAndDevelopmentExpense`	$460.00K	USD	1 Quarter
Research and development	`ResearchAndDevelopmentExpense`	$1.47M	USD	3 Qtrs
Research and development	`ResearchAndDevelopmentExpense`	$481.00K	USD	1 Quarter
Research and development	`ResearchAndDevelopmentExpense`	$1.39M	USD	3 Qtrs
Selling, general and administrative expenses	`SellingGeneralAndAdministrativeExpense`	$10.95M	USD	3 Qtrs
Selling, general and administrative expenses	`SellingGeneralAndAdministrativeExpense`	$20.13M	USD	3 Qtrs
Selling, general and administrative expenses	`SellingGeneralAndAdministrativeExpense`	$3.46M	USD	1 Quarter
Selling, general and administrative expenses	`SellingGeneralAndAdministrativeExpense`	$6.32M	USD	1 Quarter
Total operating expense	`OperatingExpenses`	$12.43M	USD	3 Qtrs
Total operating expense	`OperatingExpenses`	$7.66M	USD	1 Quarter
Total operating expense	`OperatingExpenses`	$3.94M	USD	1 Quarter
Total operating expense	`OperatingExpenses`	$22.41M	USD	3 Qtrs
Loss from operations	`OperatingIncomeLoss`	$-3.56M	USD	1 Quarter
Loss from operations	`OperatingIncomeLoss`	$-7.29M	USD	1 Quarter
Loss from operations	`OperatingIncomeLoss`	$-21.26M	USD	3 Qtrs
Loss from operations	`OperatingIncomeLoss`	$-11.28M	USD	3 Qtrs
Interest and other income, net	`OtherNonoperatingIncomeExpense`	$50.00K	USD	3 Qtrs
Interest and other income, net	`OtherNonoperatingIncomeExpense`	$40.00K	USD	3 Qtrs
Interest and other income, net	`OtherNonoperatingIncomeExpense`	$9.00K	USD	1 Quarter
Interest and other income, net	`OtherNonoperatingIncomeExpense`	$19.00K	USD	1 Quarter
Loss before taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments`	$-21.21M	USD	3 Qtrs
Loss before taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments`	$-3.55M	USD	1 Quarter
Loss before taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments`	$-7.27M	USD	1 Quarter
Loss before taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments`	$-11.24M	USD	3 Qtrs
Income tax benefit (expense)	`IncomeTaxExpenseBenefit`	$-1.00K	USD	1 Quarter
Income tax benefit (expense)	`IncomeTaxExpenseBenefit`	$119.00K	USD	1 Quarter
Income tax benefit (expense)	`IncomeTaxExpenseBenefit`	$126.00K	USD	3 Qtrs
Income tax benefit (expense)	`IncomeTaxExpenseBenefit`	$4.00K	USD	3 Qtrs
Net loss	`NetIncomeLoss`	$-21.34M	USD	3 Qtrs
Net loss	`NetIncomeLoss`	$-11.24M	USD	3 Qtrs
Net loss	`NetIncomeLoss`	$-7.39M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-3.55M	USD	1 Quarter
Basic and diluted loss per share (in dollars per share)	`EarningsPerShareBasicAndDiluted`	$-0.19	USD	3 Qtrs
Basic and diluted loss per share (in dollars per share)	`EarningsPerShareBasicAndDiluted`	$-0.13	USD	1 Quarter
Basic and diluted loss per share (in dollars per share)	`EarningsPerShareBasicAndDiluted`	$-0.38	USD	3 Qtrs
Basic and diluted loss per share (in dollars per share)	`EarningsPerShareBasicAndDiluted`	$-0.06	USD	1 Quarter
Weighted average shares outstanding basic and diluted (in shares)	`WeightedAverageNumberOfShareOutstandingBasicAndDiluted`	58.22M	shares	3 Qtrs
Weighted average shares outstanding basic and diluted (in shares)	`WeightedAverageNumberOfShareOutstandingBasicAndDiluted`	55.50M	shares	3 Qtrs
Weighted average shares outstanding basic and diluted (in shares)	`WeightedAverageNumberOfShareOutstandingBasicAndDiluted`	56.65M	shares	1 Quarter
Weighted average shares outstanding basic and diluted (in shares)	`WeightedAverageNumberOfShareOutstandingBasicAndDiluted`	58.31M	shares	1 Quarter

Cash Flow Statement 56 line items

Line Item	Tag	Value	Unit	Period
Net loss	`NetIncomeLoss`	$-21.34M	USD	3 Qtrs
Net loss	`NetIncomeLoss`	$-11.24M	USD	3 Qtrs
Net loss	`NetIncomeLoss`	$-7.39M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-3.55M	USD	1 Quarter
Depreciation	`Depreciation`	$21.00K	USD	3 Qtrs
Depreciation	`Depreciation`	$22.00K	USD	3 Qtrs
Amortization of warrant issuance costs	`AmortizationOfWarrantIssuanceCosts`	-	USD	3 Qtrs
Amortization of warrant issuance costs	`AmortizationOfWarrantIssuanceCosts`	$30.00K	USD	3 Qtrs
Stock-based compensation	`AllocatedShareBasedCompensationExpense`	$3.98M	USD	3 Qtrs
Stock-based compensation	`AllocatedShareBasedCompensationExpense`	$2.78M	USD	3 Qtrs
Prepaid expenses and other assets	`IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets`	$-238.00K	USD	3 Qtrs
Prepaid expenses and other assets	`IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets`	$-184.00K	USD	3 Qtrs
Accounts payable and accrued liabilities	`IncreaseDecreaseInAccountsPayableAndAccruedLiabilities`	$-1.00M	USD	3 Qtrs
Accounts payable and accrued liabilities	`IncreaseDecreaseInAccountsPayableAndAccruedLiabilities`	$549.00K	USD	3 Qtrs
Accrued payroll and related expenses	`IncreaseDecreaseInEmployeeRelatedLiabilities`	$-1.27M	USD	3 Qtrs
Accrued payroll and related expenses	`IncreaseDecreaseInEmployeeRelatedLiabilities`	$-1.29M	USD	3 Qtrs
Other current liabilities	`IncreaseDecreaseInOtherCurrentLiabilities`	-	USD	3 Qtrs
Other current liabilities	`IncreaseDecreaseInOtherCurrentLiabilities`	$140.00K	USD	3 Qtrs
Royalty payable	`IncreaseDecreaseInRoyaltiesPayable`	$884.00K	USD	3 Qtrs
Royalty payable	`IncreaseDecreaseInRoyaltiesPayable`	-	USD	3 Qtrs
Related-party payable	`IncreaseDecreaseInDueToRelatedParties`	-	USD	3 Qtrs
Related-party payable	`IncreaseDecreaseInDueToRelatedParties`	$83.00K	USD	3 Qtrs
Income tax liability	`IncreaseDecreaseInAccruedIncomeTaxesPayable`	$-2.00K	USD	3 Qtrs
Income tax liability	`IncreaseDecreaseInAccruedIncomeTaxesPayable`	-	USD	3 Qtrs
Deferred revenue	`IncreaseDecreaseInDeferredRevenue`	$-1.12M	USD	3 Qtrs
Deferred revenue	`IncreaseDecreaseInDeferredRevenue`	$1.38M	USD	3 Qtrs
Net cash used in operating activities	`NetCashProvidedByUsedInOperatingActivities`	$-15.46M	USD	3 Qtrs
Net cash used in operating activities	`NetCashProvidedByUsedInOperatingActivities`	$-11.52M	USD	3 Qtrs
Purchase of property and equipment	`PaymentsToAcquirePropertyPlantAndEquipment`	-	USD	3 Qtrs
Purchase of property and equipment	`PaymentsToAcquirePropertyPlantAndEquipment`	$14.00K	USD	3 Qtrs
Purchase of investments	`PaymentsToAcquireAvailableForSaleSecurities`	$756.00K	USD	3 Qtrs
Purchase of investments	`PaymentsToAcquireAvailableForSaleSecurities`	$7.89M	USD	3 Qtrs
Proceeds from sale or maturity of investments	`ProceedsFromSaleAndMaturityOfMarketableSecurities`	$7.34M	USD	3 Qtrs
Proceeds from sale or maturity of investments	`ProceedsFromSaleAndMaturityOfMarketableSecurities`	$8.62M	USD	3 Qtrs
Net cash provided by investing activities	`NetCashProvidedByUsedInInvestingActivities`	$713.00K	USD	3 Qtrs
Net cash provided by investing activities	`NetCashProvidedByUsedInInvestingActivities`	$6.58M	USD	3 Qtrs
Proceeds from exercise of options	`ProceedsFromStockOptionsExercised`	$20.00K	USD	3 Qtrs
Proceeds from exercise of options	`ProceedsFromStockOptionsExercised`	-	USD	3 Qtrs
Proceeds from sale of common stock	`ProceedsFromIssuanceOfCommonStock`	-	USD	3 Qtrs
Proceeds from sale of common stock	`ProceedsFromIssuanceOfCommonStock`	$14.63M	USD	3 Qtrs
Payments of taxes on cashless exercise of restricted stock units	`PaymentsRelatedToTaxWithholdingForShareBasedCompensation`	$93.00K	USD	3 Qtrs
Payments of taxes on cashless exercise of restricted stock units	`PaymentsRelatedToTaxWithholdingForShareBasedCompensation`	$42.00K	USD	3 Qtrs
Net cash (used in) provided by financing activities	`NetCashProvidedByUsedInFinancingActivities`	$14.55M	USD	3 Qtrs
Net cash (used in) provided by financing activities	`NetCashProvidedByUsedInFinancingActivities`	$-42.00K	USD	3 Qtrs
Net decrease in cash and cash equivalents	`CashAndCashEquivalentsPeriodIncreaseDecrease`	$-199.00K	USD	3 Qtrs
Net decrease in cash and cash equivalents	`CashAndCashEquivalentsPeriodIncreaseDecrease`	$-4.98M	USD	3 Qtrs
Cash and cash equivalents, beginning of period	`CashAndCashEquivalentsAtCarryingValue`	$8.73M	USD	Point-in-time
Cash and cash equivalents, beginning of period	`CashAndCashEquivalentsAtCarryingValue`	$1.65M	USD	Point-in-time
Cash and cash equivalents, beginning of period	`CashAndCashEquivalentsAtCarryingValue`	$8.53M	USD	Point-in-time
Cash and cash equivalents, beginning of period	`CashAndCashEquivalentsAtCarryingValue`	$6.63M	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`	$1.65M	USD	Point-in-time
Cash and cash equivalents, end of period	`CashAndCashEquivalentsAtCarryingValue`	$8.53M	USD	Point-in-time
Cash and cash equivalents, end of period	`CashAndCashEquivalentsAtCarryingValue`	$6.63M	USD	Point-in-time
Cash paid for income taxes	`IncomeTaxesPaid`	-	USD	3 Qtrs
Cash paid for income taxes	`IncomeTaxesPaid`	$126.00K	USD	3 Qtrs

Comprehensive Income 20 line items

Line Item	Tag	Value	Unit	Period
Net loss	`NetIncomeLoss`	$-21.34M	USD	3 Qtrs
Net loss	`NetIncomeLoss`	$-11.24M	USD	3 Qtrs
Net loss	`NetIncomeLoss`	$-7.39M	USD	1 Quarter
Net loss	`NetIncomeLoss`	$-3.55M	USD	1 Quarter
Change in equity adjustment from foreign currency translation, net of tax	`OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax`	-	USD	1 Quarter
Change in equity adjustment from foreign currency translation, net of tax	`OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax`	-	USD	3 Qtrs
Change in equity adjustment from foreign currency translation, net of tax	`OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax`	-	USD	1 Quarter
Change in equity adjustment from foreign currency translation, net of tax	`OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax`	$4.00K	USD	3 Qtrs
Change in unrealized gain (loss) on investments, net of tax	`OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax`	$12.00K	USD	3 Qtrs
Change in unrealized gain (loss) on investments, net of tax	`OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax`	$-1.00K	USD	1 Quarter
Change in unrealized gain (loss) on investments, net of tax	`OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax`	$3.00K	USD	1 Quarter
Change in unrealized gain (loss) on investments, net of tax	`OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax`	$-2.00K	USD	3 Qtrs
Total other comprehensive income gain (loss)	`OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent`	$-2.00K	USD	3 Qtrs
Total other comprehensive income gain (loss)	`OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent`	$-1.00K	USD	1 Quarter
Total other comprehensive income gain (loss)	`OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent`	$3.00K	USD	1 Quarter
Total other comprehensive income gain (loss)	`OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent`	$16.00K	USD	3 Qtrs
Comprehensive loss	`ComprehensiveIncomeNetOfTax`	$-3.55M	USD	1 Quarter
Comprehensive loss	`ComprehensiveIncomeNetOfTax`	$-21.32M	USD	3 Qtrs
Comprehensive loss	`ComprehensiveIncomeNetOfTax`	$-11.25M	USD	3 Qtrs
Comprehensive loss	`ComprehensiveIncomeNetOfTax`	$-7.39M	USD	1 Quarter

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