Company: VHC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001140361-25-030577
Chunk: 32

Company: VirnetX Holding Corp
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 119,000 shares of restricted stock, respectively, with a weighted average grant date fair value of $3.77 and $5.58 per share, respectively. During the six months ended June 30, 2025 and 2024, we paid $7 and $3, 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 June 30, 2025 and 2024, the unrecognized stock-based compensation expense related to unvested awards (including stock options, RSUs, and restricted stock) was $3,825 and $2,374, respectively, which will be amortized over an estimated weighted average period of approximately 3.21 years and 3.27 years, respectively.
       
      During 2025, we returned 11,286 awards to the plan due to cancellation of unexercised options.

        11

Note 6 — Equity
       
      Common Stock
       
      During the six months ended June 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. During the six months ended June 30, 2024, we issued 119,000 shares of restricted stock, as well as 7,168 shares of common stock as a result of vesting RSUs.
       
      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