Company: VHC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001140361-25-030577
Chunk: 123

Company: VirnetX Holding Corp
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 8
Chunk 123
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 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 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