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Our financial statements include a going concern disclosure required under U.S.
−Removed: The Company’s current level of operating expenditures, if continued without additional sources of revenue or financing, would exhaust existing liquid resources in the second quarter of 2027, a period of less than
−Removed: twelve months from the date of issuance of the financial statements included in this Report on Form 10-Q.
−Removed: GAAP, this condition requires disclosure of substantial doubt about the Company’s ability to continue as a going concern, as set
−Removed: forth in the Notes to our condensed consolidated financial statements.
−Removed: This disclosure reflects the application of prescribed accounting standards and is not intended to imply any change in the Company’s expectations regarding its business,
−Removed: strategy or outlook .
+Added: Based on the Company’s current rate of operating expenditures and without giving effect to any future financing or revenues, existing liquid resources are projected to be insufficient to sustain the
+Added: current level of operations for twelve months from the date of issuance of these financial statements.
+Added: GAAP, this condition requires disclosure of substantial doubt about the Company’s ability to continue as a going concern, as set forth
+Added: in the Notes to our condensed consolidated financial statements.
+Added: This disclosure reflects the application of prescribed accounting standards and is not intended to imply any change in the Company’s expectations regarding its business, strategy or
Our operating results may not be consistent and may be difficult to predict, and we may not be able to achieve or sustain profitability in the future.
−Removed: We had a net loss of $4.4 million for the quarter ended March 31, 2026, and a net loss of $18.2 million for the year ended December 31, 2025.
−Removed: As of March 31, 2026, we had an accumulated deficit of
+Added: We had a net loss of $8.9 million for the six months ended June 30, 2026, and a net loss of $18.2 million for the year ended December 31, 2025.
+Added: As of June 30, 2026, we had an accumulated deficit of
$231.8 million.
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Customer adoption of our VirnetX One™ platform and software products and services;
−Removed: The number of product license sales of VirnetX War Room™, VirnetX Matrix™ and associated services;
+Added: The number of product license sales of VirnetX War Room™, VirnetX Matrix™, VirnetX iSCOUT and associated services;
Adoption of VirnetX One™ platform by third party application providers of secure communications;
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The exercise of our outstanding vested stock options and the vesting of RSUs dilutes the ownership interests of our existing stockholders.
−Removed: As of March 31, 2026, we had 697,758 outstanding RSUs and
−Removed: options to purchase shares of common stock representing approximately 18% of our total shares outstanding of which 227,490 were vested.
−Removed: To the extent restricted stock is awarded, outstanding stock options are exercised, and RSUs vest, existing
−Removed: stockholders’ percentage voting interests will decline.
+Added: As of June 30, 2026, we had 685,339 options to purchase
+Added: shares of common stock representing approximately 17% of our total shares outstanding of which 218,337 were vested.
+Added: To the extent restricted stock is awarded, outstanding stock options are exercised, and RSUs vest, existing stockholders’ percentage
+Added: voting interests will decline.
Also, the number of shares eligible for resale in the public market will increase and such increase may have a negative effect on the value or market trading price of our common stock.
Investors may have limited influence because ownership of our common stock is limited.
−Removed: As of March 31, 2026, our executive officers and directors beneficially owned approximately 16% of our outstanding common stock.
+Added: As of June 30, 2026, our executive officers and directors beneficially owned approximately 16% of our outstanding common stock.
Because of their beneficial ownership interest, our officers and
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To the extent we are unable to secure additional revenue over the next several months, we will need to raise additional capital in the near term.
−Removed: Based on our current level of operating expenditures, we project that
−Removed: our existing cash, cash equivalents and short-term investments will be insufficient to fund the current level of operations, and we have therefore concluded that the conditions for a going concern disclosure under U.S.
−Removed: GAAP are present, as
−Removed: described notes to our consolidated financial statements.
−Removed: Our ability to obtain additional capital, if and when required, will depend on our business plans, investor demand, our operating performance, the
−Removed: condition of the capital markets, the terms of our current contractual obligations and other factors.
+Added: Based on our current level of operating expenditures,
+Added: we project that our existing cash, cash equivalents and short-term investments will be insufficient to fund the current level of operations, and we have therefore concluded that the conditions for a going concern disclosure under U.S.
+Added: present, as described in the notes to our consolidated financial statements.
+Added: Our ability to obtain additional capital, if and when required, will depend on our business plans, investor demand, our operating performance, the condition of the capital
+Added: markets, the terms of our current contractual obligations and other factors.
If we raise additional funds through the issuance of equity, equity-linked or debt securities, including those under our past and any future shelf registration statements, those securities may have
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We are currently evaluating the full impact of the OBBB Act on us.
−Removed: March 31, 2026, the OBBB Act has had no material income tax impact on our financial statements.
+Added: June 30, 2026, the OBBB Act has had no material income tax impact on our financial statements.
In addition, the Organization for Economic Cooperation and Development has proposed imposing a 15% global minimum tax under the Pillar Two Model Rules (Pillar Two), and this proposal has been adopted
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laws or tax rulings could adversely affect our effective tax rate and our operating results.
−Removed: As of March 31, 2026, we are not yet subject to Pillar Two due to the level of gross receipts.
+Added: As of June 30, 2026, we are not yet subject to Pillar Two due to the level of gross receipts.
Trading in our common stock is limited, and the price of our common shares may be subject to volatility.
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of our common stock has experienced significant fluctuations.
−Removed: Between April 1, 2025, and March 31, 2026, the adjusted closing price for our common stock ranged between $7.50 and $24.84.
+Added: Between July 1, 2025, and June 30, 2026, the adjusted closing price for our common stock ranged between $11.37 and $24.84.
The price of our common stock may continue to be volatile as a
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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.