other material
confidence high
sentiment negative
materiality 0.80
VirnetX restating 2021 financials; $3M deferred tax asset error, material weakness in internal controls
VirnetX Holding Corp
- $3 million error in deferred tax assets due to expired nonqualified stock options incorrectly included.
- Restatement will reduce income tax benefit by $3M for FY 2021; no cash or operating expense impact.
- Material weakness identified in internal controls over deferred tax accounting; remediation plan underway.
- Amended 10-K expected to be filed with SEC by May 13, 2022.
- Audit Committee concluded previously issued 2021 financials should no longer be relied upon.