{"url_path":"/sec/vhc/10-q/2026/item-3","section_key":"item-3","section_title":"Item 3 — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1082324/0001140361-26-021650-index.html","accession_number":"0001140361-26-021650","cik":"0001082324","ticker":"VHC","issuer_name":"VirnetX Holding Corp","edgar_url":"https://www.sec.gov/Archives/edgar/data/1082324/0001140361-26-021650-index.html","primary_entity_key":"0001082324","primary_entity_name":"VirnetX Holding Corp"},"word_count":213,"has_tables":true,"body_markdown":"ITEM 3 — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.\n\n \n\nInterest Rate Risk\n\n \n\nWe invest our excess cash primarily in highly liquid instruments including time deposits, money market funds, and U.S. agency and treasury securities. We seek to limit the amount of our credit exposure to any one\nissuer.\n\n \n\nInvestments in fixed rate instruments carry a degree of interest rate risk. Fixed rate securities may have their fair market value adversely impacted due to a rise in interest rates. Due in part to these factors, our\nincome from investments may decrease in the future.\n\n \n\nWe considered the historical volatility of short-term interest rates and determined that it was reasonably possible that an adverse change of 100 basis points could be experienced in the near term but would have an\nimmaterial impact on the fair value of our marketable securities, which generally mature within twelve months of March 31, 2026.\n\n \n\nOther Market Risks\n\n \n\nWe considered the historical volatility of our stock price and determined that it was reasonably possible that the fair market value of our stock price could increase or decrease substantially in the near term and\ncould have a material impact on our condensed consolidated balance sheets and statement of operations with respect to future stock-based compensation costs and other equity transactions."}