Company: VHC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001140361-25-030577
Chunk: 31

Company: VirnetX Holding Corp
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 purchase. Our Chief Executive Officer and Chief Administrative Officer are the managing partners of the LLC and control the equity interests of the LLC. The agreement with the LLC provides for use of the plane at a rate of $9.8 per flight hour. The agreement contains no minimum usage requirement and includes other terms and conditions. The agreement can be cancelled by either us or the LLC with 30 days’ notice and renews on an annual basis unless terminated by either party. Neither party has exercised their termination rights.
       
      See Note 8 – Leases for further discussion of our lease commitments.

Note 5 — Stock-Based Compensation
       
      Our stockholders approved the Amended and Restated 2013 Equity Incentive Plan (A&R Plan) at our annual shareholders’ meeting in June 2024, which added 1,000,000 shares to the plan. Our prior plan expired in 2023; the A&R Plan will govern awards granted under the prior plan. The A&R Plan provides for the granting of stock options, restricted stock units (RSUs) and restricted stock. Options granted under the A&R Plan are granted with an exercise price equal to the fair value of the of our stock on the date of grant. RSUs and restricted stock are granted at the fair value of our stock on the date of grant because they have no exercise price. The fair value of options, RSUs and restricted stock are expensed over the vesting periods. All options, RSUs and restricted stock are subject to forfeiture if service terminates prior to the shares vesting. At June 30, 2025, there were 556,341 shares available for grant under the A&R Plan.
       
      Stock-based compensation expense included in general and administrative expense was $237 and $264, and in research and development expense was $204 and $196, for the three months ended June 30, 2025 and 2024, respectively. Stock-based compensation expense included in general and administrative expense was $427 and $494, and in research and development expense was $445 and $454, for the six months ended June 30, 2025 and 2024, respectively.
       
      During the three and six months ended June 30, 2025, we granted 30,000 shares of restricted stock with a weighted average grant date fair value of $8.90 per share. During the three and six months ended June 30, 2024, we granted 48,000 and