Company: QLYS
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001107843-25-000017
Chunk: 208

Company: QUALYS, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 208
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 March 31, 2024.

Financing Activities

During the three months ended March 31, 2025, we used $39.7 million of cash for share repurchases, $10.8 million of cash in payment of employee withholding taxes upon vesting of restricted stock units, partially offset by $3.8 million of proceeds from issuance of common stock through our ESPP, and $2.6 million of proceeds from employee exercise of stock options, as compared to $18.0 million of cash used for share repurchases, and $11.8 million of cash used in payment of employee withholding taxes upon vesting of restricted stock units and $1.5 million payment of cash held in escrow as part of the Blue Hexagon acquisition on October 4, 2022, partially offset by $3.6 million of proceeds from issuance of common stock through our ESPP and $2.8 million of proceeds from employee exercise of stock options and during the three months ended March 31, 2024.

Material Cash Requirements

We believe our existing cash and cash equivalents, marketable securities and our expected cash flow generated from operations will be sufficient to fund our operations for the next twelve months and beyond. If we repatriate funds from our foreign subsidiaries, we could be subject to foreign withholding taxes.

Operating lease obligations

Our material cash requirements include our operating lease obligations to make payments under our non-cancelable lease agreements for our facilities and shared cloud platforms. We had fixed operating lease payment obligations of $57.1 million as of March 31, 2025, with $14.0 million expected to be paid within the next 12 months. As discussed in Note 13, "Subsequent Event" to our unaudited condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q, on May 1, 2025, we entered into a second amendment (the "Amendment") to early renew the lease of our headquarters in Foster City, California, which was scheduled to expire in April 2028. The Amendment, effective May 1, 2025, modifies our existing lease payments and extends the lease terms through April 30, 2034 with an aggregate base rent of $30.4 million, payable in monthly installments with escalating rent payments over the term of the lease.

Purchase Commitments

As of March 31, 2025, other than the changes described above in this section entitled "Liquidity and Capital