Company Overview
We are an Internet security software and technology company with patented
technology for various types of secure network communications, including 5G and
4G LTE network security. Our patented Secure Domain Name Registry and GABRIEL
Connection Technology™, are the foundation for our GABRIEL Secure Communication
Platform™ that protects communications using Zero Trust Network Access (ZTNA).
Our technology generates secure connections on a "zero-click" or "single-click"
basis, significantly simplifying the deployment of secure real-time
communication solutions by eliminating the need for end-users to enter any
encryption information. Our portfolio of intellectual property is the foundation
of our business model. We currently own approximately 201 total patents and
pending applications, including 70 U.S. patents/patent applications and 131
foreign patents/validations/pending applications. Our patent portfolio is
primarily focused on securing real-time communications over the Internet, and
related services, and is used in all our technology and products, some of which
were acquired by our principal operating subsidiary;
Our product portfolio includes sophisticated technologies, products and services that are available for sale worldwide. Our GABRIEL Secure Communication Platform™ includes a set of software libraries with application interfaces available for securing third-party applications seamlessly across multiple operating systems. It enables individuals and organizations to maintain complete ownership and control over their personal and confidential data, secured within their own private network, while enabling authorized secure encrypted access from anywhere at any time.
Our GABRIEL Gateway product extends our Secure Communication Platform™ by allowing existing networked devices and services to seamlessly join the "GABRIEL SECURED" network without requiring any modifications. All these devices or services, including on-premise or cloud-based services, can now be assigned a VirnetX Secure Domain Name and use fully authenticated, secure communication channels for its communications.
Our GABRIEL Collaboration Suite™ is a set of communication applications and tools that use our GABRIEL Secure Communication Platform™. It enables seamless and secure cross-platform communications between devices that are enrolled in our "GABRIEL SECURED" network and have our software installed. Our GABRIEL Collaboration Suite™ is available for download and free trial, for Android, iOS, Windows, Linux, and Mac OS X platforms, at https://virnetx.com.
We continue to enhance our products and add new functionality. We will provide updates to new and existing customers as they are released to the public. Many small and medium businesses have installed our GABRIEL Secure Communication Platform™ and GABRIEL Collaboration Suite™ products in their corporate networks. We intend to continue to expand our customer base with targeted promotions and direct sales initiatives.
We have an ongoing GABRIEL Licensing Program under which we offer licenses to a
portion of our patent portfolio, technology, and software, including our secure
domain name registry service, to domain infrastructure providers, communication
service providers as well as to system integrators. Our GABRIEL Connection
Technology™ License is offered to OEM customers who want to adopt the GABRIEL
Connection Technology™ as their solution for establishing secure connections
using secure domain names within their products. We have developed GABRIEL
Connection Technology™ Software Development Kit (SDK) to assist with rapid
integration of these techniques into existing software implementations.
Customers who want to develop their own implementation of the
Our employees include the core development team behind our patent portfolio, technology, and software. Some members of this team have worked together for over twenty years and were on same team that invented and developed this technology while working at Leidos. The team has continued its research and development work and expanded the set of patents we acquired in 2006 from Leidos, into a larger patent portfolio. This portfolio now serves as the foundation of our products, services, and our licensing business. It is expected to generate most of our future revenue in license fees and royalties. We intend to continue our efforts to develop new products and technologies and further strengthen and expand our patent portfolio. We intend to continue using an outsourced and leveraged model to maintain efficiency and manage costs as we grow our licensing business by, for example, offering incentives to early licensing targets or asserting our rights for use of our patents.
New Accounting Pronouncements
In
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Results of Operation
Three and Nine Months EndedSeptember 30, 2021
Compared with the Three and Nine Months Ended
(in thousands, except per share amounts)
Revenue
For the three and nine months ended
Classification in the Condensed Consolidated
Statement of Operations for the Nine Months Ended
$ 302,428
Operating expenses: selling, general and administrative (reimbursed litigation costs)
2,114 Other income: gain (willful infringement) 41,271 Other income: interest income (pre and post judgment interest) 108,221 Total cash received$ 454,034 Licensing Costs
Licensing costs for the nine months ended
Research and Development Expenses
Our research and development expenses increased by
Selling, General and Administrative Expenses
Our selling, general and administrative expenses decreased by
Gain on Settlement
For the nine months ended
Interest and other income, net
For the nine months ended
Liquidity and Capital Resources
As of
We expect that our cash and cash equivalents and short-term investments as of
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Universal Shelf Registration Statement and ATM Offering
On
We use the ATM proceeds for GABRIEL product development, marketing, and general
corporate purposes, which may include working capital, capital expenditures,
other corporate expenses, and acquisitions of complementary products,
technologies, or businesses. This registration statement expired on
We sold no shares under the ATM during 2021. During the nine months ended
Income Taxes
For the three months ended
For the three and nine months ended
As of
Contractual Obligations
There have been no material changes to the contractual obligations disclosed in
our Annual Report on Form 10-K for the fiscal year ended
Off-Balance Sheet Arrangements
None.
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