Company: VHC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001140361-25-042294
Chunk: 7

Company: VirnetX Holding Corp
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 7
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 in those years in 2020. As of September 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 $458 and $1,214 compared to $446 and $1,132 during the three and nine months ended September 30, 2025 and 2024, respectively. We pay for our use of the aircraft and have no rights to 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

      At September 30, 2025, there were 562,529 shares available for grant under the Amended and Restated 2013 Equity Incentive Plan.

      Stock-based compensation expense included in general and administrative expense was $314 and $309, and in research and development expense was $166 and $149, for the three months ended September 30, 2025 and 2024, respectively. Stock-based compensation expense included in general and administrative expense was $741 and $803, and in research and development expense was $611 and $603, for the nine months ended September 30, 2025 and 2024, respectively.

      No awards were granted during the three months ended September 30, 2025 and 2024. During the nine months ended September 30, 2025, we granted 30,000 shares of restricted stock with a weighted average grant date fair value of $8.90 per share. During nine months ended September 30, 2024, we granted 119,000 shares of restricted stock, with a weighted average grant date fair value $5.58 per share. During the nine months ended