VirnetX Holding Corporation reported its financial results for the three and nine months ended September 30, 2024, revealing significant changes in revenue, expenses, and overall financial position compared to the previous fiscal period.

For the three months ended September 30, 2024, VirnetX generated revenue of $2,000, a decrease from $3,000 in the same period of 2023. For the nine months ended September 30, 2024, revenue totaled $5,000, down from $7,000 in the prior year. The company's revenue is primarily derived from licensing and royalty fees, recognized in accordance with ASC Topic 606.

Total operating expenses for the three months ended September 30, 2024, were $4,389,000, a reduction from $5,638,000 in the same quarter of 2023. For the nine-month period, operating expenses decreased to $13,733,000 from $23,674,000. This decline in expenses was attributed to reduced selling, general, and administrative costs, which fell from $4,420,000 to $3,213,000 for the three months and from $16,333,000 to $10,066,000 for the nine months. Research and development expenses also decreased, totaling $1,176,000 for the three months and $3,667,000 for the nine months, compared to $1,218,000 and $7,341,000, respectively, in the prior year.

Despite the reduction in expenses, the company reported a net loss of $(3,839,000) for the three months ended September 30, 2024, an improvement from a net loss of $(4,918,000) in the same period of 2023. For the nine months, the net loss was $(11,960,000), down from $(20,764,000) in the previous year. Basic loss per share improved to $(1.07) for the three months and $(3.32) for the nine months, compared to $(1.36) and $(5.79), respectively, in 2023.

As of September 30, 2024, total current assets decreased to $44,020,000 from $53,831,000 at the end of 2023. Cash and cash equivalents also declined to $25,130,000 from $26,289,000, while investments available for sale fell to $18,624,000 from $27,258,000. Total assets decreased to $55,587,000 from $60,412,000, and total stockholders’ equity dropped to $45,493,000 from $56,013,000.

The company has been actively pursuing strategic partnerships, including investments in L2 Holdings, LLC and OP Media, Inc., aimed at enhancing its cybersecurity solutions. Additionally, VirnetX has entered into a Cooperative Research and Development Agreement with the Air Force through its partnership with OmniTeq, focusing on cybersecurity and Zero Trust technologies.