Company: VHC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001140361-25-030577
Chunk: 33

Company: VirnetX Holding Corp
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 to us against certain other companies who have the resources to defend against any such claims. Although we believe these
        potential claims are likely valid, commencing a lawsuit can be expensive and time-consuming, and there is no assurance that we could prevail on such potential claims if we made them.

Note 8 — Leases
       
      We lease office space in Nevada. The operating lease requires monthly payments of $5 and expires in October 2025. At June 30, 2025, our ROU asset and lease liability totaled $17. Lease expense totaled $14 and $28 for the three and six months ended June 30, 2025 and 2024.
       
      We lease a facility in Utah used for technical integration and training. This operating lease requires monthly payments of $75, includes periodic increases, and expires in April 2029. At June 30, 2025, our ROU asset totaled $2,681 and lease liability totaled $3,120. Lease expense totaled $210 for the three months ended June 30, 2025, and 2024, and totaled $419 for the six months ended June 30, 2025 and 2024.
       
      We also lease a facility in California for corporate promotional and marketing through 2035. In March 2024, we renewed the lease for another 10 years recording an ROU asset and lease liability of $5,512. The lease offered two payment options: either a single payment of $6,000 or annual payments each March for a total commitment of approximately $7,500. Initially, we selected the single payment option; on January 13, 2025, we changed to the annual payment option, adjusting our ROU asset and lease liability approximately $600 for the modification. At June 30, 2025, our ROU asset totaled $4,936 and our lease liability totaled $4,871. Lease expense totaled $181 and $357 for the three and six months ended June 30, 2025, respectively. Lease expense totaled $143 and $241 for the three months and six months ended June 30, 2024, respectively.
       
      Payments due under the above leases as of June 30, 2025, are as follows:

              Due in 2025

              $
            
             471 

              Due in 2026

             1,557 

              Due in 2027

             1,616