Here are 1-2 brief analogies for VirnetX (VHC):

• Like Dolby Labs, but for internet security patents, earning revenue from licensing and legal enforcement.
• Think of Qualcomm, but focused solely on secure internet communication patents, with revenue heavily reliant on licensing and asserting its intellectual property.

• Patent Licensing: VirnetX licenses its extensive portfolio of patents, primarily related to secure network communications and virtual private network (VPN) technologies, to other companies.

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Kendall Larsen, CEO, President and Chairman

Mr. Larsen has been the CEO, President, and Chairman of VirnetX since its inception in August 2005. He was a Limited Partner at Osprey Ventures, L.P., a venture fund focused on business and consumer technology companies. Mr. Larsen also served as Senior Vice President and General Manager of the Security Products Division of Phoenix Technologies Ltd. His career includes senior executive positions at other technology companies such as RSA Security, Inc., Xerox Corporation, Rolm/International Business Machines Corporation, Novell, Inc., General Magic, Inc., and Ramp Networks.

Katherine Allanson, Chief Financial Officer

Ms. Allanson became Chief Financial Officer in September 2021. Prior to this, she was VirnetX's Controller from September 2021 and an independent consultant providing accounting and reporting services to the company from October 2011 to August 2021. She has also offered similar independent consulting services to other public and private companies. Her previous experience includes roles at Arthur Andersen LLP and The Walt Disney Company.

Dr. Robert Dunham Short III, Chief Scientist

Dr. Short has served as VirnetX's Chief Scientist since May 2007. He is a co-inventor on most of the patents in the VirnetX portfolio. Before joining VirnetX, he was Assistant Vice President and Division Manager at Science Applications International Corporation (SAIC) from 2000 to 2007, where he held various positions since 1994. Dr. Short also worked at ARCO Power Technologies, Inc., Sperry Corporate Technology Center, and Sperry Research Center.

Kathleen Larsen, Chief Administrative Officer

Mrs. Larsen is the Chief Administrative Officer. She previously served as VirnetX's Vice President, Administration and Human Resources since February 2005. From 2006 to 2007, she was also the Treasurer and Chief Financial Officer of VirnetX. Her background includes roles as a Commercial Property Manager for JBD Properties, an Executive Recruiter at Armen and Associates, and Senior Director of Human Resources at CHW Advertising.

Dr. John Anthony Jamison, Chief Technical Officer

Dr. Jamison serves as VirnetX's Chief Technical Officer (CTO). Before this role, he was a Naval Intelligence Officer from May 1997 to January 2018. He also served as the Technical Director at BAE Systems, Inc.'s FAST Labs Defense Electronics R&D Unit, where he led advanced tactical space satellite programs for the Department of Defense and Intelligence Community.

The primary clear emerging threat to VirnetX (VHC) is the **expiration of its key patents**.

VirnetX's business model relies almost entirely on its portfolio of patents related to secure communications, VPN, and domain name systems, which it monetizes through licensing and litigation. Patents have a finite life, typically 20 years from their earliest filing date. Many of VirnetX's foundational patents, including several that have been central to its successful litigation against major technology companies like Apple, were filed in the early 2000s. As a result, these core patents have either recently expired or are nearing their expiration dates.

This ongoing and accelerating expiration of its key intellectual property directly diminishes the company's ability to assert infringement, demand licensing fees for future use, or secure new damage awards for the technologies previously covered. This natural decline in the scope and enforceability of its core assets poses a clear emerging threat to VirnetX's long-term revenue generation and overall business viability, as the window for monetizing these specific patented technologies progressively closes.

VirnetX Holding Corporation (VHC) operates in several addressable markets with its main products and services focused on secure communications and cybersecurity.

Industrial IoT Security Market

The global Industrial IoT security market was projected to grow from $4.76 billion in 2022 to approximately $23.17 billion by 2028, with a compound annual growth rate (CAGR) of 30.2%. For the United States, the Industrial IoT security market is expected to be worth USD 135.6 billion in 2024. VirnetX's VirnetX One™ software products are positioned to assist enterprises in navigating the evolving threat landscape and are suitable for critical infrastructure applications.

Zero Trust Network Access (ZTNA) Market

The global Zero Trust Network Access (ZTNA) market is projected to expand from USD 1.34 billion in 2025 to USD 4.18 billion by 2030, at a CAGR of 25.5% during the forecast period. ZTNA solutions are becoming essential for modern digital environments due to increasing cyber threats, rising cloud adoption, and the shift towards secure, identity-based access models.

Secure Communication Market

The global Secure Communication Market was valued at USD 6.86 billion in 2024 and is anticipated to grow to USD 13.2 billion by 2035, exhibiting a CAGR of around 6.1% during this forecast period. This growth is driven by increasing demand for data protection and privacy in an era of heightened cyber threats.

U.S. Federal Government Cybersecurity Market

The demand for vendor-supplied cybersecurity products and services by the U.S. federal government is forecast to increase from $15.8 billion in fiscal year 2023 to $20.1 billion by 2027. This market is driven by initiatives aimed at enhancing cybersecurity postures across federal agencies. More broadly, the Cybersecurity in Government Market size is estimated to reach $356.7 billion globally by 2030, growing at a CAGR of 14.0% during the forecast period 2024-2030.

VirnetX (VHC) is looking to several key areas to drive its revenue growth over the next 2-3 years, primarily by leveraging its secure communication technologies and intellectual property.

Here are 3-5 expected drivers of future revenue growth:

1. Expansion into the Department of Defense (DoD) and Intelligence Community Market: VirnetX has strategically focused on the high-security government sector, particularly the DoD and Intelligence Community. The company has obtained DD Form 2345 certifications, enabling it to work with controlled unclassified information (CUI) and engage directly with these agencies. This focus extends to securing sensitive communications within the "warfighter network," which includes high-clearance levels and secure access to both classified and commercial satellite environments. Additionally, VirnetX has entered into a Cooperative Research and Development Agreement (CRADA) with the Air Force Research Laboratory Intelligence Systems Directorate. Securing contracts and deployments within this specialized, high-value market is a significant anticipated revenue driver.
2. Increased Licensing and Enforcement of Intellectual Property: VirnetX possesses a robust patent portfolio centered on securing real-time communications over the internet. The company continues its efforts to license this technology to original equipment manufacturers (OEMs) and partners across the IP-telephony, mobility, and unified communications markets. Furthermore, VirnetX is involved in various legal proceedings related to its patents, and potential gains from these proceedings are recorded as revenue upon cash collection. Successful outcomes in these licensing and enforcement activities are expected to contribute substantially to future revenue.
3. Growth and Adoption of Secure Communication Products: VirnetX offers a suite of secure communication products, including the VirnetX One™ platform, War Room™ software, and VirnetX Matrix™. These products are designed to enhance secure network communications and protect enterprise applications, services, and infrastructure from cyber-attacks. As the demand for robust cybersecurity solutions continues to rise across various industries, increased adoption and commercialization of these proprietary products, both domestically and internationally, are anticipated to drive revenue growth.

Share Repurchases

No significant share repurchases were identified for VirnetX (VHC) within the last 3-5 years (2021-2025).

Share Issuance

• During 2024, VirnetX issued 620,150 common shares, contributing $1,773,000 to additional paid-in capital.
• During 2023, the company's additional paid-in capital increased by $2,774,000.
• During 2022, VirnetX issued 191,794 common shares, leading to a $3,301,000 increase in additional paid-in capital.

Inbound Investments

No large, strategic inbound investments from third parties (e.g., private equity or strategic partners) were identified within the last 3-5 years.

Outbound Investments

No significant outbound investments in other companies or acquisitions were identified within the last 3-5 years.

Capital Expenditures

• Capital expenditures for VirnetX amounted to approximately $11,000 for the fiscal year ended December 31, 2024.
• In the last 12 months as of November 2025, capital expenditures were approximately $11,000.
• The primary focus of capital expenditures is related to general corporate purposes, including the development and marketing of its internet security software products and services such as VirnetX One™, War Room™, and VirnetX Matrix™.