Company: VHC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001140361-25-042294
Chunk: 9

Company: VirnetX Holding Corp
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 9
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 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 2027. At September 30, 2025, our ROU asset and lease liability totaled $4. Lease expense totaled $14 and $42 for the three and nine months ended September 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 September 30, 2025, our ROU asset totaled $2,535 and lease liability totaled $2,959. Lease expense totaled $210 for the three months ended September 30, 2025, and 2024, and totaled $629 for the nine months ended September 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 September 30, 2025, our ROU asset totaled $4,848 and our lease liability totaled $4,964. Lease expense totaled $181 and $538 for the three and nine months ended September 30, 2025, respectively. Lease expense totaled $143 and $384 for the three months and nine months ended September 30, 2024, respectively.

      Payments due under the above leases as of September 30, 2025, are as follows:

              Due in 2025

              $
            
             233 

              Due in 2026

             1,557 

              Due in 2027

             1,616 

              Due in 2028

             1,678 

              Due in 2029

             1,065 

              Thereafter

             4,