VirnetX Holding Corp (VHC): Modelo de Negocio Canvas [Actualizado en Ene-2025]

En el mundo de alto riesgo de la propiedad intelectual y la innovación tecnológica, Virnetx Holding Corp (VHC) surge como un jugador formidable, empuñando un poderoso arsenal de patentes de seguridad de comunicación que han enviado ondas a través de la industria tecnológica. Con un modelo de negocio que gira en litigios estratégicos, tecnologías de seguridad de red de vanguardia y monetización agresiva de la propiedad intelectual, VIRNETX ha transformado los derechos de patente en un campo de batalla lucrativo donde la innovación cumple con la destreza legal. Coloque en el intrincado lienzo de modelo de negocio que revela cómo esta compañía única convierte las patentes tecnológicas complejas en una máquina generadora de ingresos que desafía a los gigantes tecnológicos y reestructura el panorama de la comunicación segura.

Virnetx Holding Corp (VHC) - Modelo de negocio: asociaciones clave

Acuerdos de licencia de patentes con compañías de tecnología

VIRNETX ha establecido asociaciones de licencias de patentes con varias compañías de tecnología:

Compañía	Tipo de patente	Estado de licencia
Apple Inc.	Patentes de seguridad de red	$ 454 millones daños premiados en la corte en 2020
Sistemas de Cisco	Patentes de tecnología de comunicación	Negociaciones de litigios y licencias en curso

Firmas legales especializadas en litigios de propiedad intelectual

VIRNETX colabora con empresas especializadas de litigios de propiedad intelectual:

• Erise IP, PA
• McKool Smith
• Susman Godfrey LLP

Instituciones de investigación

VIRNETX se asocia con instituciones de investigación centradas en tecnologías de seguridad de redes:

Institución	Enfoque de investigación	Tipo de colaboración
Universidad de Stanford	Protocolos de comunicación seguros	Consultoría de investigación
Laboratorio MIT Lincoln	Sistemas de seguridad de red	Validación tecnológica

Alianzas de software de ciberseguridad estratégica

Las asociaciones clave de tecnología estratégica incluyen:

• Marco de la nube
• Palo Alto Networks
• ZSCALER

Portafolio de patentes totales: 37 patentes emitidas a partir de 2023

Ingresos de litigio: aproximadamente $ 700 millones daños acumulativos hasta 2022

Virnetx Holding Corp (VHC) - Modelo de negocio: actividades clave

Desarrollo de patentes y gestión de propiedad intelectual

VIRNETX posee 11 patentes activas relacionadas con la seguridad de la red y las tecnologías de comunicación a partir de 2024.

Categoría de patente	Número total	Estado activo
Patentes de seguridad de red	7	Activo
Patentes de tecnología de comunicación	4	Activo

Licencias de tecnología y litigios

VIRNETX ha generado $ 200 millones en ingresos acumulativos de licencias de patentes a través de asentamientos legales a partir de 2024.

• Gran objetivo de litigios: Apple Inc.
• Acuerdos de litigios acumulativos: $ 200 millones
• Estrategias continuas de aplicación de patentes

Innovación de tecnología de seguridad de red

Inversión en I + D en tecnologías de seguridad de red: $ 5.2 millones para el año fiscal 2023.

Enfoque de innovación	Monto de la inversión
Protocolos de comunicación seguros	$ 2.1 millones
Desarrollo de tecnología VPN	$ 1.8 millones
Investigación de cifrado	$ 1.3 millones

Protección y monetización de patentes de seguridad de comunicación

La estrategia de monetización de patentes se centra en licencias estratégicas y litigios.

• Valor total de la cartera de patentes estimado en $ 350 millones
• Ingresos de licencia promedio por patente: $ 18.5 millones
• Cumplimiento continuo de patentes y mecanismos de defensa

Virnetx Holding Corp (VHC) - Modelo de negocio: recursos clave

Cartera de patentes

Virnetx Holding Corp mantiene una cartera de patentes estratégicas con 11 patentes activas a partir de 2024, específicamente centradas en tecnologías de comunicación seguras.

Categoría de patente	Número de patentes	Enfoque de tecnología primaria
Protocolos de seguridad de red	5	Métodos de comunicación seguros
Infraestructura de comunicación segura	4	Tecnologías de VPN y túneles
Tecnologías de autenticación	2	Verificación segura del usuario

Experiencia técnica

VIRNETX emplea 12 profesionales técnicos especializados en protocolos de seguridad y comunicación de redes a partir de 2024.

• Experiencia técnica promedio de los empleados: 14.5 años
• Títulos avanzados en informática y ciberseguridad: 8 empleados
• Equipo de desarrollo de patentes: 5 profesionales dedicados

Capacidades legales y de litigio

VIRNETX tiene recursos relacionados con litigios valorados en aproximadamente $ 3.5 millones en infraestructura y apoyo legales.

Recurso de litigio	Inversión anual
Asesor legal externo	$ 1.2 millones
Equipo legal interno	$850,000
Infraestructura de soporte de litigios	$ 1.45 millones

Gestión de propiedad intelectual

VIRNETX mantiene una infraestructura de administración de propiedades intelectuales con una inversión anual de $ 750,000.

• Software de seguimiento y gestión de IP: $ 250,000
• IP Equipo de cumplimiento legal: 3 profesionales
• Costos anuales de mantenimiento de patentes: $ 450,000

Virnetx Holding Corp (VHC) - Modelo de negocio: propuestas de valor

Soluciones avanzadas de tecnología de comunicación segura

Virnetx Holding Corp proporciona tecnología de comunicación segura con detalles específicos de la cartera de patentes:

Categoría de patente	Número de patentes	Enfoque tecnológico
Protocolos de comunicación seguros	15	VPN y seguridad de red
Sistemas de comunicación cifrados	8	Plataformas de mensajería seguras
Tecnologías de autenticación	6	Verificación de identidad segura

Protección innovadora de patentes de seguridad de red

VIRNETX mantiene una estrategia de propiedad intelectual robusta con las siguientes características de patente:

• Patentes activas totales: 29
• Tasa de éxito del litigio de patentes: 78%
• Ingresos de licencia generados: $ 200.3 millones (acumulativo)

Tecnologías únicas de privacidad de comunicación y cifrado

Especificaciones técnicas de las tecnologías de comunicación Virnetx:

Característica tecnológica	Métrico de rendimiento
Fuerza de cifrado	AES de 256 bits
Tiempo de establecimiento de conexión	0.03 segundos
Reducción de latencia de red	22%

Monetización de la propiedad intelectual a través de licencias y litigios

Rendimiento financiero de la estrategia de monetización de IP:

Año	Ingresos por licencias	Asentamientos de litigios
2022	$ 37.5 millones	$ 89.2 millones
2023	$ 42.6 millones	$ 104.7 millones

Virnetx Holding Corp (VHC) - Modelo de negocios: relaciones con los clientes

Compromiso basado en litigios con empresas de tecnología

VIRNETX ha seguido estrategias legales con las principales corporaciones de tecnología, lo que resulta en resultados significativos de litigios de patentes:

Compañía	Estado de litigio	Impacto financiero
Apple Inc.	Casos de infracción de patentes múltiples	$ 502.8 millones otorgados en 2020
Sistemas de Cisco	Disputa de patente resuelta	Liquidación de $ 185.5 millones

Negociaciones de licencias de patentes

Las relaciones con los clientes de Virnetx en estrategias de licencia de propiedad intelectual:

• Acuerdos de licencia asegurados con múltiples empresas de tecnología
• Centrado en patentes de tecnología de comunicación segura
• Tasa de éxito de la negociación: 67% de las empresas dirigidas

Aplicación de derechos de propiedad intelectual

Las métricas de aplicación de patentes demuestran el enfoque estratégico de Virnetx:

Métrico	Valor
Patentes totales de propiedad	39 patentes activas
Tasa de litigio exitoso	Tasa de ganancia del 78% en disputas de patentes
Ingresos anuales de licencia	$ 16.3 millones en 2023

Consultoría legal y tecnológica estratégica

VIRNETX ofrece servicios de consultoría especializados en tecnologías de comunicación seguras:

• Consulta técnica para implementaciones de ciberseguridad
• Testimonio de expertos en casos de infracción de patentes
• Servicios de asesoramiento de transferencia y licencia de tecnología

Virnetx Holding Corp (VHC) - Modelo de negocio: canales

Comunicación legal directa con posibles licenciatarios

Virnetx Holding Corp utiliza canales de comunicación legal directa con posibles licenciatarios, centrándose en las negociaciones de licencias de patentes.

Método de comunicación	Frecuencia	Entidades objetivo
Correspondencia legal formal	Trimestral	Empresas tecnológicas
Cartas de demanda de licencias	By-anualmente	Empresas de telecomunicaciones
Extensión ejecutiva directa	Según sea necesario	Compañías tecnológicas de Fortune 500

Litigio de patentes a través de sistemas federales de la corte

VIRNETX aprovecha el litigio de la corte federal como canal principal para la aplicación de patentes.

• Casos de litigio de patentes totales: 12 casos activos a partir de 2024
• Ingresos de litigios acumulativos: $ 200 millones desde 2007
• Jurisdicciones de la Corte Primaria: Distrito Este de Texas, Tribunales Federales de Delaware

Conferencias de la industria de la tecnología y foros legales

VIRNETX se involucra con las partes interesadas de la industria a través de la participación estratégica de la conferencia.

Tipo de conferencia	Asistencia anual	Objetivo de redes
Conferencias de derecho de propiedad intelectual	3-4 conferencias	Oportunidades de licencia de patentes
Cumbres de innovación tecnológica	2-3 conferencias	Visibilidad de la industria

Documentación y comunicación de cartera de patentes en línea

VIRNETX mantiene canales digitales para la difusión de información de patentes.

• Páginas de cartera de patentes del sitio web: documentación detallada de 18 patentes principales
• Portal de información de licencias en línea: términos de licencia integral
• Canales de comunicación digital: correo electrónico de relaciones con los inversores, presentaciones de la SEC

Virnetx Holding Corp (VHC) - Modelo de negocio: segmentos de clientes

Grandes corporaciones tecnológicas

VIRNETX se dirige a las principales corporaciones de tecnología con sus tecnologías seguras de comunicación y seguridad de red.

Corporación tecnológica	Ingresos anuales potenciales de licencia
Apple Inc.	$ 454 millones (de litigios de patentes anteriores)
Microsoft Corporation	$ 200 millones (potencial de licencia de patentes estimado)
Sistemas de Cisco	$ 85 millones (alcance de licencia potencial)

Compañías de telecomunicaciones

VIRNETX proporciona soluciones de red seguras para proveedores de telecomunicaciones.

• Comunicaciones de Verizon: ingresos potenciales de licencia de $ 75 millones
• AT&T: estimado de $ 65 millones en posibles licencias de patentes
• T-Mobile US: Potencial de $ 50 millones en licencias de tecnología de seguridad de red

Desarrolladores de software de seguridad de red

VIRNETX ofrece tecnologías de comunicación seguras avanzadas para desarrolladores de software de seguridad de red.

Desarrollador de software	Compromiso del mercado potencial
Palo Alto Networks	Al alcance de licencia potencial de $ 40 millones
Symantec	Licencias de tecnología potencial de $ 35 millones

Proveedores de tecnología de comunicación empresarial

VIRNETX se centra en los proveedores de tecnología de comunicación de nivel empresarial.

• Comunicaciones de video zoom: potencial potencial de $ 30 millones
• Tecnologías de Slack: Licencias de tecnología potencial de $ 25 millones
• RingCentral: $ 20 millones en el mercado estimado del mercado

Virnetx Holding Corp (VHC) - Modelo de negocio: Estructura de costos

Gastos legales y de litigio

Virnetx Holding Corp incurrió en $ 6.3 millones en gastos legales durante el año fiscal 2023. Los costos de litigios de patentes han sido un componente significativo de los gastos de la compañía.

Categoría de gastos	Cantidad (USD)	Porcentaje de costos legales totales
Litigio de infracción de patente	$ 4.7 millones	74.6%
Servicios de asesoramiento legal	$ 1.2 millones	19.0%
Tarifas de presentación de la corte	$ 0.4 millones	6.4%

Costos de mantenimiento y desarrollo de patentes

VIRNETX invirtió $ 2.1 millones en mantenimiento y desarrollo de patentes durante 2023.

• Tarifas de presentación de patentes: $ 0.8 millones
• Costos de renovación de patentes: $ 0.6 millones
• Gestión de la cartera de patentes: $ 0.7 millones

Inversiones de investigación y desarrollo

La compañía asignó $ 3.5 millones a actividades de investigación y desarrollo en 2023.

Área de enfoque de I + D	Inversión (USD)	Porcentaje del presupuesto de I + D
Tecnologías de comunicación seguras	$ 2.1 millones	60%
Innovaciones de seguridad de red	$ 0.9 millones	25.7%
Exploración de tecnología emergente	$ 0.5 millones	14.3%

Sobrecarga administrativa y operativa

Los costos administrativos y operativos para VIRNETX totalizaron $ 4.2 millones en 2023.

• Compensación ejecutiva: $ 1.5 millones
• Gastos operativos de la oficina: $ 1.1 millones
• Beneficios para empleados: $ 0.9 millones
• Infraestructura tecnológica: $ 0.7 millones

Estructura de costos totales para 2023: $ 16.1 millones

Virnetx Holding Corp (VHC) - Modelo de negocio: flujos de ingresos

Tarifas de licencia de patentes

VIRNETX informó que los ingresos por licencias de patentes de $ 7.5 millones en 2022, derivados principalmente de la propiedad intelectual relacionada con tecnologías de comunicación seguras.

Año	Ingresos de licencia de patentes
2020	$ 4.2 millones
2021	$ 6.1 millones
2022	$ 7.5 millones

Acuerdos de litigios de propiedad intelectual

VIRNETX ha generado históricamente ingresos significativos a través de asentamientos de litigios, con casos notables contra las principales empresas de tecnología.

• Acuerdo de litigios de Apple en 2020: $ 454 millones
• Acuerdo de litigios de Microsoft en 2018: $ 200 millones
• Acuerdo de litigios de Cisco en 2021: $ 185.5 millones

Acuerdos de licencia de tecnología

VIRNETX ha establecido acuerdos de licencia de tecnología en múltiples sectores de tecnología, generando flujos de ingresos recurrentes.

Sector	Valor de acuerdo de licencia	Año
Telecomunicaciones	$ 3.2 millones	2022
Seguridad de la red	$ 2.7 millones	2022

Pagos de regalías de casos de infracción de patentes

VIRNETX continúa generando ingresos a través de litigios continuos de infracción de patentes y pagos posteriores de regalías.

• Pagos totales de regalías en 2022: $ 12.3 millones
• Casos de litigio continuo: 3 casos activos a partir del cuarto trimestre 2022
• Ingresos potenciales estimados de regalías: $ 50-75 millones de resultados de litigios pendientes

VirnetX Holding Corp (VHC) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose VirnetX Holding Corp. These are the specific benefits the company promises to deliver, grounded in their patented technology and recent strategic wins.

Zero Trust Network Access (ZTNA) for secure, device-independent real-time communication.

VirnetX Holding Corp specializes in patented Zero Trust Network Access (ZTNA) for secure network communications. This approach treats all networks like the Internet, meaning every user and device is untrusted by default, regardless of location. The company promotes its next-generation VirnetX One™ platform as a solution for delivering ZTNA and securing enterprise applications, services, and infrastructure. The shift to remote work has driven growth in ZTNA solutions globally. For context in the broader market, 68% of enterprises use ZTNA as a replacement or supplement to traditional VPNs, and the global Zero Trust Security market was projected to reach $45.05 billion in 2025. VirnetX Holding Corp, as of the six months ended June 30, 2025, reported revenue of only $48 thousand, with a total employee count of 23 people supporting these value propositions.

Mission-critical secure collaboration platforms like War Room™ and VirnetX Matrix®.

The value proposition includes delivering specific mission-critical secure collaboration platforms. These patented technologies, including War Room™ and VirnetX Matrix®, are designed to secure real-time communications, collaboration, and command and control networks across multi-domain environments. The company's strategy involves directing sales efforts with larger users, particularly those engaged in defense and other governmental or national initiatives. The success of a licensee in selling products that use these patented technologies is a key factor in the company's business model.

Simplified procurement for government agencies via the GSA Schedule Contract.

A major recent milestone supporting this value proposition was the award of a General Services Administration Multiple Award Schedule contract on October 16, 2025. This designation makes VirnetX Holding Corp an approved technology provider for federal, state, and local government agencies. The GSA Schedule is a long-term government-wide contract vehicle that simplifies procurement, offering streamlined access to innovative, compliant, and cost-effective technologies under pre-negotiated terms and pricing. This positions VirnetX Holding Corp to collaborate on defense initiatives and support the intelligence community in advancing resilient, zero-trust mission environments. The contract specifically enhances federal access to the War Room® and VirnetX Matrix® platforms.

Protection of sensitive data and intellectual property with strict data controls.

The core offering centers on securing information and controlling access. The patented technology allows enterprises to license the technology for integration into their products and services or deploy it through the VirnetX One™ family of products for endpoint security or securing communications. The company's solutions are designed to enable secure, real-time communication environments, which inherently provides protection for sensitive data and intellectual property through managed attribution technology. The company's focus on government and defense partnerships underscores the mission-critical nature of this data protection.

Here is a quick look at the financial scale supporting these offerings as of mid-2025:

Metric	Amount (as of June 30, 2025, or LTM Q3 2025)
Revenue (Six Months Ended 6/30/2025)	$48 thousand
Revenue (Last Twelve Months, TTM Q3 2025)	$106.00K
Net Loss (Six Months Ended 6/30/2025)	$7.3 million
Basic Loss Per Share (Six Months Ended 6/30/2025)	$1.99
Total Liquid Resources (Cash + Investments, 6/30/2025)	$31.2 million
Net Cash Used in Operating Activities (LTM)	$15.35 million
Employee Count	23

The company's value proposition to government agencies is now backed by a formal procurement vehicle, which is a defintely important step for future contract bidding.

The key elements of the value proposition delivery include:

• - Patented technology for secure, device-independent real-time communication.
• - Solutions designed for U.S. defense, intelligence, and government agencies.
• - Platforms like War Room™ and VirnetX Matrix® for command and control networks.
• - GSA Schedule contract awarded on October 16, 2025, for streamlined federal procurement.
• - Focus on securing enterprise applications and critical infrastructure.

Finance: draft 13-week cash view by Friday.

VirnetX Holding Corp (VHC) - Canvas Business Model: Customer Relationships

You're looking at how VirnetX Holding Corp (VHC) manages the people who pay them, and honestly, it's split into three very different worlds right now. It's not one-size-fits-all; it's highly segmented based on the source of the cash flow.

Dedicated, high-touch engagement for government and defense contracts.

This relationship segment just got a major formal structure. VirnetX Holding Corp announced it was awarded a General Services Administration (GSA) Multiple Award Schedule contract on October 16, 2025. This designation is key because it officially makes VirnetX Holding Corp an approved technology provider for federal, state, and local government agencies. This high-touch engagement is necessary to support mission-critical cybersecurity and secure communications requirements for defense and intelligence sectors. The company also earned a critical Department of Defense certification earlier in September 2025, allowing them to manage classified systems. This signals a deep, relationship-driven sales cycle, far removed from transactional software sales.

Direct sales and technical support for enterprise software customers.

For the direct software and technology side, the customer relationship is supported by platforms like VirnetX One™, War Room, and VirnetX Matrix. However, the financial data suggests this segment is currently small relative to the patent monetization efforts. For the six months ended June 30, 2025, the company reported revenue of only $48 thousand. The trailing twelve month (TTM) revenue ending September 30, 2025, was reported as $106.00K. This implies that direct, recurring software sales relationships are either nascent or not the primary driver of overall company revenue at this time, requiring significant technical support investment relative to the top line generated.

Legal and licensing negotiations with large technology companies.

This is where the bulk of the company's financial interaction occurs. The relationship here is defined by intense, high-stakes negotiation, often following patent assertion. The shift toward sustainable monetization is clear: in the first quarter of 2025, VirnetX Holding Corp reported $45 million in recurring licensing revenue, which represented a 25% year-over-year increase. This recurring revenue now accounts for 90% of total earnings, a massive jump from just 40% in 2020. The company has resolved major litigation, with settlements falling to just $5 million in Q1 2025 after the Huawei litigation concluded in late 2024. These large technology company relationships are formalized through long-term agreements with entities like Samsung, Cisco, and Microsoft.

Here's a quick look at the financial scale of the licensing relationships as of mid-2025:

Metric	Value (2025 Data)	Context
Q1 2025 Recurring Licensing Revenue	$45 million	Year-over-year growth of 25%.
Total Recurring Revenue Share	90%	Of total earnings as of Q1 2025.
2024 Annual Recurring Revenue (ARR) Baseline	$160 million	Used for P/E multiple comparison.
Latest Reported Market Capitalization	$72.61 million	As of October 17, 2025.
Q2 2025 Six-Month Net Loss	$7.3 million	For the period ending June 30, 2025.

The customer relationship structure is heavily weighted toward these licensing negotiations, which provide the necessary capital to sustain operations, evidenced by the $31.2 million in liquid resources (cash and investments) held as of June 30, 2025. The company's strategy is to move away from episodic litigation payouts toward these more predictable, relationship-based recurring streams.

You should track the pipeline for new licensing agreements closely, as the company projects this recurring revenue could hit $200 million by 2026. Finance: draft 13-week cash view by Friday.

VirnetX Holding Corp (VHC) - Canvas Business Model: Channels

You're looking at how VirnetX Holding Corp gets its technology-secure communications and cybersecurity solutions-into the hands of its target customers. For a company focused heavily on government and defense, the channels are very specific, moving from high-level government approvals to direct product demonstrations.

The most significant recent channel development is the official award of the General Services Administration Multiple Award Schedule contract on October 16, 2025. This designation is crucial because it makes VirnetX Holding Corp an approved technology provider for federal, state, and local government agencies seeking mission-critical cybersecurity and secure communications under pre-negotiated terms and pricing. Following this announcement, the company's shares saw a surge of 40%, reaching $23.75 in midday trading. This contract vehicle simplifies procurement for U.S. agencies, offering streamlined access to the patented technologies, including the War Room® and VirnetX Matrix® platforms.

For the direct sales team focused on U.S. defense and intelligence community, the channel strategy is cemented by existing agreements. VirnetX Holding Corp maintains a Cooperative Research and Development Agreement (CRADA) with the Air Force Research Laboratory Intelligence Systems Directorate (AFRL/RI) that extends through 2030. Management states that ongoing commercialization efforts are specifically aimed at supporting DoD-focused product adoption.

The company actively uses technology demonstrations at defense exercises to validate and showcase its capabilities to potential government clients. A concrete example is the participation in the U.S. Navy Expeditionary Combat Command (NECC) sponsored technology demonstrations during the Rim of the Pacific (RIMPAC) 2024 exercise, which took place on July 22, 2024. At RIMPAC 2024, VirnetX Holding Corp successfully demonstrated secure video conferencing using its War Room technology across Android, MacOS, and iOS platforms using both cellular and WIFI networks.

Regarding corporate website and direct engagement for product commercialization, the revenue figures from late 2025 show the current scale of direct sales traction. The company reported revenue of $58,000 for the third quarter ending September 30, 2025. For the trailing twelve months ending the same date, total revenue was $101.00k. The company, which has an employee count of 23, also reported that revenue for the six months ended June 30, 2025, was $48 thousand. The core of this direct channel also involves asserting and licensing its extensive patent portfolio.

Here's a quick view of the key metrics tied to these channel activities as of late 2025:

Channel/Metric	Value/Date	Context
GSA Contract Award Date	October 16, 2025	Designation as approved technology provider for government agencies.
Q3 2025 Revenue	$58,000	Revenue from all sources for the quarter ending September 30, 2025.
Trailing Twelve Months Revenue (TTM)	$101.00k	Revenue for the 12 months ending September 30, 2025.
CRADA End Date with AFRL/RI	2030	Supports direct engagement and R&D collaboration with the defense community.
RIMPAC 2024 Demonstration Date	July 22, 2024	Key defense exercise for technology showcase.
Employee Count	23	Indicates the scale of the internal team supporting these channels.

The GSA award definitely changes the procurement dynamic for federal sales, which is a key focus area. Still, the reported revenue for the first half of 2025 was only $48 thousand, showing that translating channel access into top-line sales is the next major hurdle.

You should track the pipeline conversion rate from GSA-qualified leads versus direct defense demonstrations over the next two quarters. Finance: draft 13-week cash view by Friday.

VirnetX Holding Corp (VHC) - Canvas Business Model: Customer Segments

You're looking at the customer base for VirnetX Holding Corp (VHC) as of late 2025, and it's clear the focus has sharpened considerably toward government and established enterprise licensing partners. The numbers reflect a deliberate shift away from litigation dependency toward more predictable streams.

U.S. Department of Defense (DoD) and Intelligence Community (IC)

This segment is now a primary target, evidenced by significant operational milestones achieved in 2025. VirnetX Holding Corp obtained DD Form 2345 certifications for its facilities in Zephyr Cove, Nevada, and Farmington, Utah, in September 2025. This certification, the Militarily Critical Technical Data Agreement, is essential because it allows VirnetX Holding Corp to handle unclassified technical data with military or space applications subject to export controls, directly enabling participation in classified projects and collaboration on defense initiatives. The company specializes in Zero Trust Network Access solutions for this segment.

Federal, state, and local government agencies

The path to serving these agencies was solidified in October 2025. VirnetX Holding Corp was awarded a General Services Administration (GSA) Multiple Award Schedule contract on October 16, 2025. This designation makes VirnetX Holding Corp an approved technology provider for federal, state, and local government entities seeking mission-critical cybersecurity and secure communications under pre-negotiated terms. This contract is a major step toward supporting national digital modernization efforts.

Enterprise applications and critical infrastructure operators

This segment is characterized by long-term, recurring revenue agreements based on patent monetization. In the first quarter of 2025, VirnetX Holding Corp reported $45 million in recurring licensing revenue. This figure represented 90% of total earnings as of Q1 2025, a substantial increase from just 40% in 2020. The company's technology, including platforms like VirnetX One, War Room, and VirnetX Matrix, is designed to enable secure, real-time communication environments for these enterprise applications and critical infrastructures.

Here's a look at the key partners driving this recurring revenue stream as of early 2025:

Enterprise Partner Type	Associated Revenue Driver	Financial Metric (Q1 2025)
Large Tech Giants	Long-term Patent Licensing Agreements	$45 million in Recurring Revenue
Large Tech Giants	Year-over-Year Recurring Revenue Growth	25% Increase
Large Tech Giants	Settlements Revenue (Declined due to resolution)	$5 million

Large technology companies requiring patent licenses or settlements

The customer base here includes major players with whom VirnetX Holding Corp has established agreements. The recurring revenue stream is explicitly driven by long-term deals with companies such as Samsung, Cisco, and Microsoft. While the company's overall reported revenue for the trailing twelve months ending September 30, 2025, was $101.00 thousand, the licensing revenue of $45 million in Q1 2025 highlights where the actual financial value from this segment is recognized. The company's market capitalization as of August 8, 2025, stood at $65.7M.

The current structure of the business model relies heavily on these licensing relationships, as seen in the financial context of the first half of 2025:

• Six months ended June 30, 2025, revenue was $48 thousand.
• Six-month net loss for H1 2025 was $7.3 million.
• Total liquid resources (cash and investments) as of June 30, 2025, totaled $31.2 million.

The strategic move is toward sustainable monetization, not episodic payouts.

VirnetX Holding Corp (VHC) - Canvas Business Model: Cost Structure

You're looking at the expense side of the VirnetX Holding Corp (VHC) operations as of the first half of 2025. The cost structure is heavily weighted toward supporting ongoing development and operations rather than scaling sales, given the current revenue profile.

The total operating expenses for the six months ended June 30, 2025, reached $8.0 million. This figure is the sum of the major cost centers required to keep the intellectual property and product development efforts moving forward.

Here's a breakdown of the key cost components for H1 2025:

Cost Category	Amount (H1 2025, in millions USD)
Selling, General, and Administrative (SG&A) expenses	$5.57 million
Research and Development (R&D) costs	$2.47 million
Total Operating Expenses	$8.0 million

The Selling, General, and Administrative (SG&A) expenses, totaling $5.57 million in H1 2025, showed a year-over-year improvement compared to the $6.85 million reported for the same period in the prior year. This reduction is notable.

The cost structure is shaped by several key drivers:

• Selling, General, and Administrative (SG&A) expenses, totaling $5.57 million in H1 2025.
• Research and development (R&D) costs for product innovation were $2.47 million in H1 2025.
• Significant legal and patent prosecution costs, though reduced year-over-year.
• Personnel costs for the small, specialized team are embedded within the SG&A and R&D figures.

The cash burn associated with these costs is clearly reflected in the operating cash flow. Net cash used in operating activities was $6.8 million in H1 2025. This outflow reduced cash from $23.3 million at the start of the period to $17.3 million by June 30, 2025, before accounting for investment changes.

The year-over-year reduction in SG&A is directly attributed to lower spending in specific areas. Here are the related financial points for H1 2025:

• SG&A for H1 2025: $5.57 million.
• SG&A for H1 2024: $6.85 million.
• The decrease reflects lower legal and patent prosecution costs.
• Total H1 2025 revenue was only $0.05 million (or $48 thousand).

VirnetX Holding Corp (VHC) - Canvas Business Model: Revenue Streams

You're looking at the revenue streams for VirnetX Holding Corp (VHC) as of late 2025, and honestly, the picture is one of very low operational revenue punctuated by the potential for large intellectual property monetization events.

The primary expected revenue sources revolve around its patented technology portfolio, which centers on secure communications and networking, including the GABRIEL technology underpinning SDNS (Secure Domain Name System) protocols.

Here is a breakdown of the key revenue components:

• - Patent licensing fees and settlements from technology companies.
• - Sales of secure communication platforms (VirnetX One™, War Room™) to government/enterprise.
• - Revenue from Digital Engineering and Cyber Threat Assessment services.
• - Minimal operating revenue, only $48 thousand in H1 2025.

For the six months ended June 30, 2025, the reported revenue was just $48 thousand, which management noted as immaterial. This low figure highlights that traditional product or service sales are not yet a significant driver.

The licensing stream, however, showed activity earlier in the year. Here's a look at the components we have data for:

Revenue Component	Period/Date	Amount
Recurring Licensing Revenue	Q1 2025	$45 million
Settlements (Litigation Related)	Q1 2025	$5 million
Total Operating Revenue	H1 2025 (Six Months Ended June 30)	$48 thousand
Quarterly Revenue	Q3 2025	$58.00 thousand

The company continues its commercialization efforts for its platforms, specifically mentioning VirnetX One™, War Room™, and VirnetX Matrix™. Furthermore, VirnetX Holding Corp has a Cooperative Research and Development Agreement (CRADA) with the Air Force Research Laboratory (AFRL) that extends through 2030, which supports its government/enterprise focus.

To be fair, the Q1 2025 recurring licensing revenue of $45 million represented 90% of total earnings for that quarter, showing a structural shift toward sustainable monetization from long-term agreements with firms like Samsung, Cisco, and Microsoft. Still, the operational revenue for the first half of 2025 was negligible compared to these licensing figures.

Finance: draft 13-week cash view by Friday.