Company: VHC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001140361-25-030577
Chunk: 74

Company: VirnetX Holding Corp
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 1
Chunk 74
---
        acquire us even if you would like to sell your stock to them.

We have protective provisions in our amended and restated certificate of incorporation (Restated Charter) and amended and restated bylaws (Restated Bylaws) that could delay, discourage, or prevent a third party from
        acquiring control of us without the approval of our Board of Directors. These protective provisions include:

            •
            
              A staggered Board of Directors: Only one or two of five directors will be up for election at any given annual meeting, delaying the ability of stockholders to affect a change in control of us because it would take two annual meetings to
                effectively replace a majority of the Board of Directors.

            •
            
              Blank check preferred stock: Our Board of Directors has the authority to establish the rights, preferences, and privileges of our 10,000,000 authorized, but unissued, shares of preferred stock. Therefore, this stock may be issued at the
                discretion of our Board of Directors with preferences over your shares of our common stock in a manner that is materially dilutive to you. In addition, blank check preferred stock can be used to create a “poison pill” which is designed to
                deter a hostile bidder from buying a controlling interest in our stock without the approval of our Board of Directors. We have not adopted such a “poison pill;” but our Board of Directors can do so in the future, very rapidly and without
                stockholder approval.

        21

            •
            
              Advance notice requirements for director nominations and for business to be brought before stockholder meetings: Stockholders wishing to submit director nominations or raise matters to a vote of the stockholders must provide notice to us
                within very specific date windows and in very specific form to have the matter voted on at a stockholder meeting. This gives our Board of Directors and management more time to react to stockholder proposals generally and could also permit
                us to disregard a stockholder proposal to the extent such proposal is not submitted in accordance with the Restated Bylaws.

            •
            
              No stockholder actions by written consent: No stockholder or group of stockholders may take action by written consent. Along with the advance notice requirements described above, this provision also gives our Board of Directors and
                management more time to react to proposed stockholder actions.

            •
            
              Super majority requirement for stockholder amendments to the Restated Bylaws: Stockholder proposals to alter or amend our Restated By