VirnetX receives DoD certification, reinforcing defense sector pivot

Published 04/09/2025, 14:34
VirnetX receives DoD certification, reinforcing defense sector pivot

ZEPHYR COVE, Nev. - VirnetX Holding Corporation (NYSE:VHC), whose stock has surged over 90% year-to-date to $14.93, has obtained DD Form 2345 certifications for its facilities in Zephyr Cove, Nevada, and Farmington, Utah, the company announced Thursday. According to InvestingPro data, the company maintains a strong balance sheet with cash reserves exceeding debt obligations.

The certification, formally known as the Militarily Critical Technical Data Agreement, allows VirnetX to access unclassified technical data with military or space applications that are subject to export controls. This enables the cybersecurity solutions provider to handle sensitive technical information required for Department of Defense (DoD) and Intelligence Community (IC) projects.

The certification represents a strategic shift for VirnetX as it transitions from primarily commercial services toward becoming a partner for defense and intelligence agencies. With this credential, the company can participate in classified projects, collaborate on defense initiatives, and bid on government contracts requiring access to controlled data.

"As we transition our focus toward serving the DoD and IC, the DD Form 2345 empowers us to provide cutting-edge, zero-trust solutions that protect sensitive communications and data in an increasingly complex threat landscape," said Kendall Larsen, VirnetX CEO and President, in a press release statement. While the company maintains a solid current ratio of 16.26, InvestingPro analysis indicates the company is currently burning through cash reserves, highlighting the strategic importance of this defense sector pivot.

VirnetX specializes in Zero Trust Network Access solutions for secure communications, offering products including its VirnetX One platform, War Room, and VirnetX Matrix. The company also provides Digital Engineering services aligned with defense strategies, including Cyber Threat Assessment services and Model-Based System Engineering processes.

The certification is administered by the DoD’s Joint Certification Program and is considered essential for contractors seeking to engage with defense and intelligence agencies without compromising national security. As a niche player in the cybersecurity industry, VirnetX’s market position and 14 additional key insights are available through InvestingPro’s comprehensive analysis platform.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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