What changed in this filing

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Item 1. Financial Statements

2022-11-08 compared with 2022-08-09 · 151 added, 119 removed, 511 unchanged (35% of the section changed)

1 unchanged sentence

VIRNETX HOLDING CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

CONDENSED CONSOLIDATED

BALANCE SHEETS

(in thousands, except share amounts)

September 30,

December 31, 2021

13 unchanged sentences

Accrued licensing costs

Income tax liability

Other liabilities, current

5 unchanged sentences

Preferred stock, par value $ 0.0001 per share Authorized:

10,000,000 shares at June 30 , 2022 and December 31,

10,000,000 shares at September 30 , 2022 and

December 31, 2021 ;

Issued and outstanding:

shares at June 30 , 2022

and December 31, 2021

0 shares at September 30 , 2022 and December 31, 2021

Common stock, par value $ 0.0001

per share Authorized:

100,000,000 shares at June 30 , 2022 and December 31, 2021 ;

100,000,000 shares at September 30 , 2022 and December 31, 2021 ;

Issued and outstanding:

71,424,650 shares at June 30 , 2022 and 71,232,856 at December 31, 2021

shares at September 30 , 2022

and 71,232,856 at December 31, 2021

Additional paid-in capital

5 unchanged sentences

VIRNETX HOLDING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF

OPERATIONS (Unaudited)

(in thousands, except per share amounts)

Three Months Ended

September 30,

September 30 ,

Operating expense:

14 unchanged sentences

VIRNETX HOLDING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME (LOSS) (Unaudited)

(in thousands)

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

September 30 ,

Net income (loss)

6 unchanged sentences

VIRNETX HOLDING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS ’ EQUITY (Unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF

SHAREHOLDERS ’ EQUITY (Unaudited)

(in thousands)

Three Months Ended

September 30,

September 30 ,

Total shareholders’ equity, beginning balances

16 unchanged sentences

VIRNETX HOLDING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF

CASH FLOWS (Unaudited)

(in thousands)

Six Months Ended

Nine Months Ended

September 30,

Cash flows from operating activities:

10 unchanged sentences

Accrued licensing costs

Income tax payable

Other liabilities

1 unchanged sentence

Cash flows from investing activities:

Purchase of property and equipment

Purchase of investments

35 unchanged sentences

The accompanying Condensed Consolidated Balance Sheet as of

June 30, 2022, the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021, the Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2022 and

2021, the Condensed Consolidated Statements of Shareholders’ Equity for the three and six months ended June 30, 2022 and 2021, and the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021 are unaudited.

September 30, 2022, the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2022 and 2021, the Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended

September 30, 2022 and 2021, the Condensed Consolidated Statements of Shareholders’ Equity for the three and nine months ended September 30, 2022 and 2021, and the Condensed Consolidated Statements of Cash Flows for the nine months ended September

30, 2022 and 2021 are unaudited.

These unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S.

In our opinion, the unaudited interim consolidated financial statements

include all adjustments of a normal recurring nature necessary for the fair presentation of our financial position as of June 30, 2022, our results of operations for the three and six months ended June 30, 2022 and 2021, and our cash flows for the

six months ended June 30, 2022 and 2021.

In our opinion, the unaudited interim

consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of our financial position as of September 30, 2022, our results of operations for the three and nine months ended September 30,

2022 and 2021, and our cash flows for the nine months ended September 30, 2022 and 2021.

The results of operations for interim periods are not necessarily indicative of the results to be expected for a full year.

27 unchanged sentences

The Company derives revenue from licensing and royalty fees

from contracts with customers which often span several years.

from contracts with customers which can span several years.

We account for this revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers.

21 unchanged sentences

Licensing Costs

Included in operating expenses are licensing costs we incurred

in conjunction with the proceeds received from Apple Inc., pursuant to a favorable court decision relating to a patent infringement case.

Included in operating expenses primarily in 2021 are licensing

costs we incurred in conjunction with the proceeds received from Apple Inc., pursuant to a favorable court decision relating to a patent infringement case.

Contingent Gains

25 unchanged sentences

A portion of those balances are insured by the Federal Deposit Insurance Corporation, or FDIC.

During the six months ended June 30, 2022, we had, at times, funds

that were uninsured.

During the nine months ended September 30, 2022, we had, at times,

funds that were uninsured.

We do not believe that we are subject to any unusual financial risk beyond the normal risk associated with commercial banking relationships.

44 unchanged sentences

met, the issue is resolved with the taxing authority, or the statute of limitations expires.

Positions previously recognized are derecognized when we subsequently determine the position no longer is more likely than not to be sustained.

Evaluation of

tax positions, their technical merits, and measurements using cumulative probability are highly subjective management estimates.

Positions previously recognized are reversed if and when we subsequently determine the position no longer is more likely than not to be sustained.

of tax positions, their technical merits, and measurements using cumulative probability are highly subjective management estimates.

Actual results could differ materially from these estimates.

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value measured at the closing price reported on the active market on which the individual securities are traded.

following tables show the adjusted cost, gross unrealized gains, gross unrealized losses, and fair value of our securities by significant investment category as of June 30, 2022 and December 31, 2021.

June 30, 2022

following tables show the adjusted cost, gross unrealized gains, gross unrealized losses, and fair value of our securities by significant investment category as of September 30, 2022 and December 31, 2021.

September 30, 2022

Adjusted Cost

16 unchanged sentences

Note 3 — Income Taxes

For the three months ended June 30, 2022, we recognized income tax expense of $ 373 on loss before taxes of $ 4,064 , which is an effective tax

For the three months ended September 30, 2022, we recognized an income tax benefit of $ 486 on loss before taxes of $ 4,766 , which is an effective tax

rate of 10.3 %.

For the six months ended June 30, 2022, we recognized an income tax benefit of $ 684 on loss before taxes of $ 8,441 ,

For the nine months ended September 30, 2022, we recognized an income tax benefit of $ 1,171 on loss before taxes of $ 13,208

which is an effective rate of 8.3 %.

1 unchanged sentence

effect of stock-based compensation and expiring options, requiring us to reduce our deferred tax asset.

During the six months ended June 30, 2022, our deferred tax asset increased by $ 685 to $ 16,635 .

On May 13, 2022, the Company notified the public of the restatement via Form 8-K stating the Company's previously issued 2021 Financials because of an error in our deferred tax assets affecting the annual period covered by the financial statements.

The Company determined that the three and six months ended June 30, 2021 interim statements should be revised as the 2021 restatement related primarily to options expiring in second quarter 2021.

The accompanying Deferred tax asset previously

reported as $ 16,854 has now been reduced to $ 13,526

as of June 30, 2021.

The income tax benefit for the three months ended June 30, 2021, previously reported as $ 609 has been corrected to

income tax expense of $ 2,719 .

The income tax benefit for the six months ended June 30, 2021, previously reported as $ 7,802 has been reduced to $ 4,474 .

For the three months ended June 30, 2021, we recognized an income tax expense of $ 2,719 on loss before taxes of $ 4,132 .

Income tax for the three months was

primarily affected by expiring options and net operating loss.

For the six months ended June 30, 2021, we recognized an income tax benefit of $ 4,474

on loss before income taxes of $ 37,768 .

Income tax for the six months was primarily affected by expiring options and research and

development credits.

During the six months ended June 30, 2021 , our deferred tax asset increased by $ 4,477 to $ 13,526 .

A valuation allowance is provided for deferred tax assets when, in our judgment, based upon currently available information and other factors,

it is more likely than not that all or a portion of such deferred income tax assets will not be realized.

The determination of the need for a valuation allowance is based on an on-going evaluation of current information including, among other

things, historical operating results, estimates of future earnings in different taxing jurisdictions and the expected timing of the reversals of temporary differences.

We believe the determination to record, or reduce, a valuation allowance

associated with a deferred income tax asset is a significant accounting estimate because it is based, among other things, on an estimate of future taxable income in the United States and certain other jurisdictions, which is susceptible to change

and may or may not occur, and because the impact of adjusting a valuation allowance may be material.

In determining when to release the valuation allowance established against our net deferred income tax assets, we consider all available

evidence, both positive and negative.

During the nine months ended September 30, 2022, our deferred tax asset increased to $ 17,122 .

May 13, 2022, the Company notified the public of the restatement via Form 8-K stating the Company’s previously issued 2021 Financials because of an error in our deferred tax assets affecting the annual period covered by the financial

The Company determined that the nine months ended September 30, 2021 interim statements should be revised as the 2021 restatement related primarily to options expiring in second quarter 2021.

The accompanying Deferred tax asset

previously reported as $ 17,749 has now been reduced to $ 14,421 as of September 30, 2021.

The income tax benefit for the nine months ended September 30, 2021, previously reported as $ 8,697 has been reduced to $ 5,369 .

For the three months ended September 30, 2021, we recognized an income tax benefit of $ 895 on loss before taxes of $ 4,226 .

For the nine months ended September 30,

2021, we recognized an income tax benefit of $ 5,369 on loss before income taxes of $ 41,994 .

Income tax for the nine months was primarily affected by expiring options and research and development credits.

During the nine months ended September 30, 2021, our

deferred tax asset increased by $ 5,372 to $ 14,421 .

A valuation allowance is provided for deferred tax assets when, in our judgment, based upon currently available information and other factors, it is

more likely than not that all or a portion of such deferred income tax assets will not be realized.

The determination of the need for a valuation allowance is based on an on-going evaluation of current information including, among other things,

historical operating results, estimates of future earnings in different taxing jurisdictions and the expected timing of the reversals of temporary differences.

We believe the determination to record, or reduce, a valuation allowance associated

with a deferred income tax asset is a significant accounting estimate because it is based, among other things, on an estimate of future taxable income in the United States and certain other jurisdictions, which is susceptible to change and may or

may not occur, and because the impact of adjusting a valuation allowance may be material.

In determining when to release the valuation allowance established against our net deferred income tax assets, we consider all available evidence, both

positive and negative.

Our tax years for 2005 and forward are subject to examination by the U.S.

5 unchanged sentences

recognize the financial statement effects of a tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination.

At December 31, 2021 and June 30, 2022, we have no uncertain tax positions.

At December 31, 2021 and September 30, 2022, we have no uncertain tax positions.

Our policy is to recognize interest and penalties accrued on uncertain tax positions as a component of income tax

We had no accrued interest or penalties related to uncertain tax positions at June 30, 2022.

We had no accrued interest or penalties related to uncertain tax positions at September 30, 2022.

Note 4 — Commitments and

5 unchanged sentences

We incurred approximately $ 268

and $ 514 compared to $ 95 and

$ 174 in fees and reimbursements to the LLC during the three and six months ended June 30, 2022 and 2021, respectively.

We pay for the

Company’s usage of the aircraft and have no rights to purchase.

and $ 782 compared to $ 280

and $ 454 in fees and reimbursements to the LLC during the three and nine months ended September 30, 2022 and 2021, respectively.

the Company’s usage of the aircraft and have no rights to purchase.

Our Chief Executive Officer and Chief Administrative Officer are the managing partners of the LLC and control the equity interests of the LLC.

16 unchanged sentences

under the 2013 Plan with an exercise price determined by our Board of Directors, or a duly appointed committee thereof, provided, however, that the exercise price of an option granted to any employee shall be not less than 100 % of the fair market value at the date of grant in the case of ISOs or 85 % of the fair market value at the date of grant in the case of an NSO.

The exercise price of an ISO or NSO granted to one of our Named Executive Officers shall not be less than 100 % of the fair market value of the shares at the date of grant and the exercise price of an ISO granted to a 10% shareholder shall not be less

than 110 % of the fair market value of the shares on the date of grant.

Stock options granted under the 2013 Plan typically vest over four years and have a 10 -year term.

RSUs are considered to be granted at the fair value of our stock on the date of grant because they have no exercise price.

The exercise price of an ISO or NSO granted to one of our Named Executive Officers shall not be less

than 100 % of the fair market value of the shares at the date of grant and the exercise price of an ISO granted to a 10% shareholder

shall not be less than 110 % of the fair market value of the shares on the date of grant.

Stock options granted under the 2013 Plan

typically vest over four years and have a 10 -year

All RSUs are considered to be granted at the fair value of our stock on the date of grant because they have no exercise price.

RSUs typically vest over four years .

As of June 30, 2022, there were 1,435,929 shares available for grant under the 2013 Plan.

compensation expense included in general and administrative expense was $ 487 and $ 463 , and in research and development expense was $ 325 and $ 511 , for the three months ended June 30, 2022 and 2021, respectively.

Stock-based compensation expense included in general and administrative expense

was $ 953 and $ 846 , and

in research and development expense was $ 637 and $ 1,007 , for the six months ended June 30, 2022 and 2021, respectively.

During the three months ended June 30, 2022, we granted options for a total of 801,004 shares with a weighted average grant date fair value of $ 1.18

During the three months ended June 30, 2021, we granted options for a total of 779,500 shares with a weighted average grant

date fair value of $ 3.45 per option.

During the six months ended June 30, 2022, we granted options for a total of 801,004 shares with a weighted average grant date fair value of $ 1.18

As of September 30, 2022, there were 1,513,345 shares available for grant under the 2013

compensation expense included in general and administrative expense was $ 573 and $ 703 , and in research and development expense was $ 301 and $ 473 , for the three months ended September 30, 2022 and 2021, respectively.

Stock-based compensation expense included in general and administrative

expense was $ 1,526 and $ 1,549 ,

and in research and development expense was $ 938 and $ 1,480 , for the nine months ended September 30, 2022 and 2021, respectively.

During the three months ended September 30, 2022, we did no t grant any options.

During the three months ended September 30, 2021, we granted options for a total of 170,000 shares with a weighted average grant date fair value of $ 3.10 per

During the nine months ended September 30, 2022, we granted options for a total of 801,004 shares with a weighted average grant date fair value of $ 1.09

We estimated the fair value of the options on the date of grant utilizing the Black-Scholes valuation model with the following assumptions:

(i) 0 percent dividend yield, (ii) 86 percent volatility, (iii) 3 percent risk free rate and (iv) 6 years expected term.

the six months ended June 30, 2021, we granted options for a total of 779,500 shares with a weighted average grant date fair value of $ 3.45 per option.

We estimated the fair value of the options on the date of grant utilizing the Black-Scholes valuation model with the following

(i) 0 percent dividend yield, (ii) 86 percent volatility, (iii) 3 percent risk free rate and (iv) 6 years

expected term.

During the nine months ended September 30, 2021, we granted options for a total of 949,500 shares with a weighted average

grant date fair value of $ 3.39 per option.

We estimated the fair value of the options on the date of grant utilizing the Black-Scholes

valuation model with the following assumptions:

(i) 0 percent dividend yield, (ii) 90 percent volatility, (iii) 1 percent risk free rate and (iv) 6 years expected term.

During the three months ended June 30, 2022 and 2021, we granted 258,363 and 236,661 RSUs respectively, with weighted average

fair values at the date of grant of $ 1.46 and $ 4.61 , respectively.

During the three months ended September 30, 2022 and 2021, we did no t grant any RSUs.

During the nine months ended September 30, 2022 and 2021, we granted 258,363 and 236,661 RSUs respectively, with weighted average fair values at

the date of grant of $ 1.46 and $ 4.61 ,

respectively.

RSUs, which are subject to forfeiture if service terminates prior to the shares vesting, are expensed ratably over the vesting period.

During the three months ended June 30, 2022 and 2021, we

paid $ 29 and $ 196 in

withholding taxes on shares issued upon conversion of RSUs, respectively.

During the nine months ended September 30, 2022 and 2021, we paid $ 29 and $ 196 in withholding taxes on

shares issued upon conversion of RSUs, respectively.

The underlying shares were cancelled.

The amounts are reflected as financing costs in the accompanying statement of cash flows.

No RSUs were granted during the first three months of 2022 or 2021.

As of June 30, 2022, the unrecognized stock-based compensation expense related to non-vested stock

As of September 30, 2022, the unrecognized stock-based compensation expense related to non-vested stock

options and RSUs was $ 4,571 and $ 1,716 ,

respectively, which will be amortized over an estimated weighted average period of approximately 2.86 and 2.68 years, respectively.

During the three and six months ended June 30, 2022, and 2021 no options were exercised.

During the three months ended June 30, 2022 and 2021, we issued 191,795 and 174,285 shares as a result of vesting RSUs,

respectively.

No shares were issued during the first three months of 2022 or 2021 as a result of vesting RSUs.

During the three and six months ended June 30, 2022 and 2021, there were 255,000 and 390,000 options

returned to the plan due to the 10 -year expiration for unexercised options respectively.

During the three and nine months ended September 30, 2022, and 2021 no options were exercised.

During the nine months ended September 30, 2022 and 2021, we issued 191,795 and 174,285 shares,

respectively, as a result of vesting RSUs, all of which occurred in the second quarter of each respective year.

During the nine months ended September 30, 2022 and 2021, there were 332,416 and 390,000 options returned to

the plan due to the expiration of unexercised options, respectively.

Note 6 — Equity

We issued no shares for options exercised during the three and six months ended June 30, 2022 or 2021, respectively.

We issued 191,795 and 174,285 shares as a result of vesting RSUs during the three months

ended June 30, 2022 and 2021, respectively.

No shares were issued during the first three months of 2022 or 2021 as a result of vesting

We issued no shares for options exercised during the three and nine months ended September 30, 2022 or 2021, respectively.

No shares were issued during the three months ended September 30, 2022 or 2021 as a result of vesting RSUs.

We issued 191,795 and 174,285 shares as a result of vesting RSUs during the

nine months ended September 30, 2022 and 2021, respectively.

2020, we issued warrants for the purchase of 25,000 shares of common stock at an exercise price of $ 5.75 per share, exercisable on the date of grant, expiring in April 2025 .

The weighted average fair value at the grant date was $ 4.16 per

The fair value at the grant date was estimated utilizing the Black-Scholes valuation model with the following weighted average assumptions (i) dividend yield on our common stock of 0 percent (ii) expected stock price volatility of 97 percent (iii) a risk-free

interest rate of 0.27 percent and (iv) and expected option term of 5 years.

The weighted average fair value at the grant date was $ 4.16 per warrant.

The fair value at

the grant date was estimated utilizing the Black-Scholes valuation model with the following weighted average assumptions (i) dividend yield on our common stock of 0 percent (ii) expected stock price volatility of 97 percent (iii) a risk-free interest rate of 0.27 percent and (iv) and expected option term of 5

Outstanding and

June 30, 2022

September 30, 2022

Expiration Date

49 unchanged sentences

Apple filed its reply brief on September 13, 2021.

The briefing is complete, and the oral arguments have been scheduled on September 8 , 2022 in this matter.

The briefing is complete, and oral arguments were held on September 8, 2022.

We are currently waiting for the USCAFC ruling.

Partners Master Fund, Ltd., Apple Inc.

25 unchanged sentences

briefings have been completed.

The oral arguments in this matter have been scheduled on September 8 , 2022.

The oral arguments in this matter were held on September 8, 2022.

We are currently waiting for the USCAFC ruling.

Hirshfeld (USCAFC Case 17-2593, -2594)

12 unchanged sentences

In the April 4, 2022 order, the USCAFC further set a briefing schedule, in Appeal No.

17-2593, with VirnetX’s opening brief currently due on August 22, 2022.

VirnetX filed its opening brief on September 12, 2022.

The USPTO’s response brief is currently due December 2, 2022.

Cisco Systems, Inc.

9 unchanged sentences

VirnetX’s opening brief was filed on June 23, 2022.

The USPTO’s response brief was filed on August 2, 2022, and Cisco’s response brief was filed on September 2, 2022.

VirnetX filed its

reply brief on October 7, 2022, and we currently await scheduling of oral arguments.

(USCAFC Case 22-1523) (“Apple Reexam I”)

1 unchanged sentence

proceeding 95/001,682 involving our U.S.

Our opening brief is currently due August 22, 2022.

Our opening brief was filed on August 22, 2022.

Apple’s response brief is currently due November 17, 2022.

(USCAFC C ase 22 - 1997 ) (“Apple Reexam II”)

On July 6, 2022, we filed with the USCAFC an appeal of the invalidity findings by the PTAB in inter-partes re-examination proceeding 95 / 001,697 involving our U.S.

Our opening brief is currently due October 21, 2022.

On July 6, 2022, we filed with the USCAFC an appeal of the invalidity findings

by the PTAB in inter-partes re-examination proceeding 95/001,697 involving our U.S.

On October 17, 2022, we filed a motion to remand the appeal in light of the PTAB’s refusal to permit Director rehearing .

Cisco Systems, Inc.

(USCAFC Case 22-2234)

On September 16, 2022, we filed with the USCAFC an appeal of the invalidity

findings by the PTAB in inter-partes re-examination proceeding 95/001,851 involving our U.S.

Our opening brief is currently due December 30, 2022 .

McKool Smith P.C.

11 unchanged sentences

evidentiary hearing was held on the matter during the week of February 22, 2021 and the parties submitted additional briefings.

On April 19, 2021, the arbitrator awarded McKool $ 36,323 in damages, plus pre-judgment interest in the amount of 5 %

simple interest from March 23, 2020 to April 18, 2021, and post-judgment interest in the amount of 5 %, compounded annually, until

payment of the award.

On April 19, 2021, the arbitrator awarded McKool $ 36,323 in damages, plus pre-judgment interest in the amount of 5 % simple

interest from March 23, 2020 to April 18, 2021, and post-judgment interest in the amount of 5 %, compounded annually, until payment of

We accrued the resulting $ 38,284 as of March 31, 2021 and paid that amount to McKool on April 20, 2021.

11 unchanged sentences

office space under an operating lease which expires on October 31, 2023.

On June 30, 2022, the underlying ROU asset and lease liability totaled $ 71 .

On September 30, 2022, the underlying ROU asset and lease liability totaled $ 58 .

On December 31, 2021, the underlying ROU asset and lease liability totaled $ 98 .

For the three and six months ended June 30, 2022,

lease expense totaled $ 13 and $ 27 ,

For the three and nine months ended September 30, 2022, lease expense

totaled $ 13 and $ 40 ,

respectively.

For the three and six months ended June 30, 2021, the lease expense totaled $ 14 and $ 28 , respectively.

For the three and nine months ended September 30, 2021, the lease expense totaled $ 14 and $ 42 , respectively.

We also lease a facility for corporate promotional and marketing purposes which was prepaid at inception and expires in 2025, as amended.

On June 30, 2022 and December

On September 30, 2022 and December 31,

2021, the ROU asset totaled $ 724 and $ 948 ,

respectively.

For the three and six months ended June 30, 2022, lease expense totaled $ 75 and $ 150 , respectively.

For the three and six months ended June 30, 2021, lease expense totaled $ 75 and $ 150 , respectively.

For the three and nine months ended September 30, 2022, lease expense totaled $ 75 and $ 224 , respectively.

For the three and nine months ended September 30, 2021, lease expense totaled $ 75

and $ 225 , respectively.

Note 9 — Earnings Per Share

3 unchanged sentences

The following

table shows the computation of basic and diluted earnings per share for the three and six months ended June 30, 2022 and 2021 (in thousands, except per share amounts):

table shows the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2022 and 2021 (in thousands, except per share amounts):

Three Months Ended

September 30,

September 30 ,

Weighted-average

7 unchanged sentences

We incurred a net

loss for the three and six months ended June 30, 2022 and 2021;

therefore, all potentially dilutive securities representing shares of common stock ( 7,520,546

in 2022 and 6,752,839 in 2021) were excluded from the computation of diluted earnings per share, because their effect would have

been antidilutive.

loss for the three and nine months ended September 30, 2022 and 2021;

therefore, all potentially dilutive securities representing shares of common stock ( 7,443,130 in 2022 and 6,906,176 in 2021) were excluded from the

computation of diluted earnings per share, because their effect would have been antidilutive.

Note 10 — Subsequent Events

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements