Company: VHC
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0001140361-25-015742
Chunk: 53

Company: VirnetX Holding Corp
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 53
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. The Company incurred approximately $1,556,000 and $1,097,000 in rental fees and reimbursements to the LLC in 2024 and 2023, respectively. Kendall Larsen and Kathleen Larsen are the sole member-managers of the LLC and control the equity interests of the LLC. On January 31, 2015, the Company entered into a 12-month non-exclusive lease with the LLC for use of the aircraft at a rate of approximately $8,000 per flight hour, with no minimum usage requirement. Effective April 16, 2024, the LLC discontinued use of and replaced the aircraft with a more current model. Accordingly, on August 14, 2024, the Company and the LLC amended the Lease Agreement for use of the current model at approximately $9,800 per flight hour, with no minimum usage requirement, to reflect current rates in the charter market (together with original lease, the “Lease Agreement”). The Lease Agreement contains other terms and conditions normal in such transactions and can be cancelled by either the Company or the LLC with 30-days’ notice. The Lease Agreement renews on an annual basis unless terminated by either party. Neither party has exercised their termination rights. The Board has approved the Lease Agreement and the rental fees, and the audit committee has approved such related party transaction. Policies and Procedures for Related Party Transactions The audit committee is responsible for reviewing and approving any proposed related person transactions. The audit committee reviews any such proposed related person transactions on a quarterly basis, or more frequently as appropriate. In cases in which a transaction has been identified as a potential related person transaction, management must present information regarding the proposed transaction to the audit committee for consideration and approval or ratification. The audit committee is also responsible for reviewing the Company’s policies with respect to related person transactions and overseeing compliance with such practices.

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TABLE OF CONTENTS

AUDIT COMMITTEE REPORT The following is the report of the audit committee of the Board. In connection with the financial statements for 2024, our audit committee has:

| • | reviewed and discussed our audited financial statements for 2024 with our management and our independent registered public accounting firm, including discussions related to critical accounting policies, financial reporting principles and practices, the reasonableness of significant estimates, and the effectiveness of internal control over financial reporting; |

| • | discussed with our independent registered accountants, the matters required to be discussed by the applicable requirements of the Public Company Accounting Oversight Board (“PCAOB”) and the