Company: VHC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001140361-25-030577
Chunk: 120

Company: VirnetX Holding Corp
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 8
Chunk 120
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16,228         1,442         14,786             36,281         25         (1   )       36,305         21,519         14,786       Total     $   38,058       $   25       $   (1   )     $   38,082       $   23,296       $   14,786     

Note 3 — Income Taxes
       
      For the three months ended June 30, 2025 and 2024, we recognized income tax expense of $0 and $3, on pretax losses of $3,621 and $3,827. For the six months ended June 30, 2025 and 2024, we recognized income tax expense of $2 and $3, on pretax losses of $7,298, and $8,118.  Our effective tax rate is approximately 0% for all periods. Our effective tax rate differed from the federal statutory rate of 21%, primarily due to the valuation allowance placed against our net deferred tax assets. We have a full valuation allowance on all federal and state deferred tax assets as of June 30, 2025.
       
      Our tax years for 2007 and forward are subject to examination by the U.S. tax authority and our tax years for 2021 and forward are open for various state tax authorities because we utilized the net operating loss and tax credits generated in those years in 2020. The California Franchise Tax Board completed and closed their audit on our 2019, 2020 and 2021 California tax years and found no change in our tax liability.  As of June 30, 2025, we have not identified or accrued amounts for uncertain tax positions or interest and penalties related to uncertain tax positions and do not expect significant changes to the estimate in the coming twelve months.

Note 4 — Commitments and Related Party Transactions
       
      We have a non-exclusive service agreement for the use of an aircraft from K2 Investment Fund LLC (LLC) for business travel for our employees. We incurred approximately $380 and $315 compared to $756 and $686 during the three and six months ended June 30, 2025 and 202