Company: VHC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001140361-25-042294
Chunk: 19

Company: VirnetX Holding Corp
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 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 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