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an enterprise’s existing infrastructure and provides centralized visibility and policy enforcement to address unauthorized access and evolving attack techniques.
−Removed: VirnetX War Room™ also built on the VirnetX One™ platform, provides secure collaboration and visualization capabilities designed to support sensitive, unclassified but secure communications.
+Added: VirnetX War Room™ is also built on the VirnetX One™ platform, provides secure collaboration and visualization capabilities designed to support sensitive, unclassified but secure communications.
platform enables controlled access to virtual meeting environments by validating user and device permissions prior to granting access.
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Our products, including VirnetX One™, VirnetX Matrix™, and VirnetX War Room™, are designed to support U.S.
−Removed: Department of Defense (DoD), federal government, and commercial customers requiring real-time
−Removed: encrypted communications and network security.
−Removed: Our solutions are designed to be applicable across a range of public and private sector markets, including critical infrastructure, law enforcement, healthcare, financial services, legal services,
−Removed: energy, and related industries.
+Added: Department of Defense (DoD), federal government, and commercial customers requiring
+Added: real-time encrypted communications and network security.
+Added: Our solutions are designed to be applicable across a range of public and private sector markets, including critical infrastructure, law enforcement, healthcare, financial services, legal
+Added: services, energy, and related industries.
We pursue sales opportunities nationwide and engage with universities and academic institutions to support research collaboration, workforce development, and technology transition initiatives.
+Added: VirnetX iSCOUT (IoT System for Connected Object Understanding and Telemetry) leverages a common, secure IoT and data infrastructure to fuse sensor, geospatial, and agency data into a unified operating
+Added: picture, including in disaster response and smart city environments.
+Added: It is designed to support mission-specific applications that can be customized for a range of markets, with two initial implementations currently in development:
+Added: a Humanitarian
+Added: Assistance Disaster Relief–Emergency Response (HADR-ER) capability that provides federal, state, and local partners with a real-time operating picture for national emergency management, and a smart city solution for international markets, including
+Added: Japan, tailored to urban resilience, mobility, and critical infrastructure monitoring in dense metropolitan environments.
+Added: VirnetX iSCOUT is intended to be deployed as a shared, exportable technology stack, with each application configured for its
+Added: distinct mission, and we may pursue additional customized applications for other markets in the future.
We also support international sales of our commercial products in compliance with applicable U.S.
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data subject to export controls.
−Removed: These certifications streamline procurement of our products and services by federal, state, and local government agencies and support our ability to engage with government and defense customers while maintaining
−Removed: compliance with applicable handling and security requirements.
Additionally, we are developing a Center for Advanced Software and Hardware Integration at our Farmington, Utah facility, that incorporates artificial intelligence (AI) and digital twin technologies
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The team has continued its research and development work to refine our unique network security technology and make it more secure and easy to deploy.
−Removed: Results of Operation s
−Removed: Three Months Ended March 31, 2026
−Removed: Compared with the Three Months Ended March 31, 2025
+Added: Results of Operations
+Added: Three and Six Months Ended June 30, 2026
+Added: Compared with the Three and Six Months Ended June 30, 2025
(in thousands, except per share amounts)
−Removed: We recognized no revenue in the three months ended March 31, 2026 and 2025.
+Added: We recognized revenue $48 in the three months and six months ended June 30, 2025 and no revenue during the same periods in 2026.
Research and Development Expenses
−Removed: Our research and development expenses remained steady between 2026 and 2025 totaling $1,162 and $1,259 for the three months ended March 31, 2026 and 2025, respectively.
+Added: Our research and development expenses decreased slightly in 2026 compared to 2025, totaling $1,126 and $1,215 for the three months ended June 30, 2026 and 2025, and totaling $2,288 and $2,474 for the six months ended June 30, 2026 and 2025.
+Added: decrease was related to compensation.
Selling, General and Administrative Expenses
−Removed: Our selling, general and administrative expenses increased from $2,788 to $3,346 for the three months ended March 31, 2026, primarily related to compensation expense and corporate travel.
+Added: Our selling, general and administrative expenses increased $749 and $1,308 in the three and six months ended June 30, 2026 compared to 2025.
+Added: The variance was primarily related to increases of
+Added: $388 in legal expenses, $362 in equity compensation, and $395 in travel expense.
Liquidity and Capital Resources
−Removed: As of March 31, 2026, the Company held approximately $17.2 million in cash, cash equivalents and short-term investments.
−Removed: Based on the Company’s current rate of operating expenditures and without giving effect to any future financing or additional revenue, existing liquid resources are projected to be insufficient to sustain the current
−Removed: level of operations through May 2027, a period of less than twelve months from the date of issuance of these financial statements.
+Added: As of June 30, 2026, our cash and cash equivalents totaled approximately $13,090 and our short-term investments totaled approximately $799, compared to cash and cash equivalents of
+Added: approximately $15,548 and short-term investments of approximately $5,979 at December 31, 2025, respectively.
+Added: Working capital was $11,847 at June 30, 2026.
+Added: Based on the Company’s current rate of operating expenditures and without giving effect to any future financing or additional revenue, existing liquid resources are projected to be insufficient to
+Added: sustain the current level of operations for twelve months from the date of issuance of these financial statements.
This condition triggers the going concern disclosure requirements under U.S.
−Removed: GAAP and as required, is described in
−Removed: notes to our condensed consolidated financial statements.
+Added: GAAP and as required, is described in notes to our
+Added: condensed consolidated financial statements.
Management intends to continue pursuit of cash generation via revenue sources and financing.
−Removed: Our effective tax rate is 0% for income tax for the three months ended March 31, 2026 and 2025, and we expect our effective tax rate for the full year will be 0%.
−Removed: Our effective tax rate is less than the 21% statutory
−Removed: tax rate primarily due to our valuation allowance.
+Added: On June 2, 2026, the SEC declared our shelf registration statement of Form S-3 effective (File No.
+Added: The S-3 covers the offer and sale up to $20 million in securities in one or more
+Added: offerings, in amounts, at prices and on terms determined at the time of the offering.
+Added: Our effective tax rate is 0% for income tax for the three and six months ended June 30, 2026 and 2025, and we expect our effective tax rate for the full year will be 0%.
+Added: Our effective tax rate is less
+Added: than the 21% statutory tax rate primarily due to our valuation allowance.
Based on the weight of available evidence, including net cumulative losses and expected future losses, we have determined it is more likely than not that our U.S.
−Removed: federal and state deferred tax
−Removed: assets will not be realized and therefore we have provided a full valuation allowance on the U.S.
+Added: state deferred tax assets will not be realized and therefore we have provided a full valuation allowance on the U.S.
federal and state net deferred tax assets.
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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.