Company: VHC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001140361-25-042294
Chunk: 8

Company: VirnetX Holding Corp
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 8
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 September 30, 2025 and 2024, we paid $19 and $9, respectively for withholding taxes due on awards; these withholding taxes are reflected as financing costs in the accompanying statement of cash flows because the grantees surrendered shares equal to the value of withholding taxes due, and those surrendered shares were cancelled.

      As of September 30, 2025 and 2024, the unrecognized stock-based compensation expense related to unvested awards (including stock options, RSUs, and restricted stock) was $3,346 and $1,778, respectively, which will be amortized over an estimated weighted average period of approximately 2.9 years and 2.2 years, respectively.

      During 2025, we returned 17,474 awards to the plan due to cancellation of unexercised options.

Note 6 — Equity

      Common Stock

      During the nine months ended September 30, 2025, we issued 30,000 shares of restricted stock as well as 3,341 shares of common stock as a result of vesting RSUs; we also cancelled 1,082 shares used to cover withholding taxes on awards. During the nine months ended September 30, 2024, we issued 119,000 shares of restricted stock, as well as 7,166 shares of common stock as a result of vesting RSUs; we also cancelled 2,981 shares to cover withholding taxes on awards.

        11

Warrants

      In 2020, we issued warrants for the purchase of 1,250 shares of common stock at an exercise price of $115 per share, exercisable on the date of grant; these warrants expired unexercised on April 30, 2025.

Note 7 — Litigation

      From time to time, we are subject to various legal proceedings, the outcomes of which are inherently uncertain. We record any potential gains related to legal proceedings only after cash is collected.
        We record a liability when it is probable that a loss has been incurred and the amount is reasonably estimable, the determination of which requires significant judgment. As additional information becomes available, we reassess our potential
        liability and may revise our estimates. Such resolutions could have a material impact on future quarterly or annual results of operations.

      One or more potential intellectual property infringement claims may also be available to us against certain other companies who have the resources to defend against any such claims. Although we
        believe these potential claims are