VirnetX Settles Patent Dispute with Apple for $110M

TL;DR

Apple pays VirnetX $110M to end patent war. Case closed.

AI Summary

VirnetX Holding Corp. announced on June 13, 2024, that it has entered into a settlement agreement with Apple Inc. to resolve all outstanding patent infringement claims. The settlement includes a payment of $110 million from Apple to VirnetX. This agreement resolves a long-standing legal dispute between the two companies regarding VirnetX's patents related to secure network communications.

Why It Matters

This settlement brings a significant legal battle to a close, providing VirnetX with substantial capital and potentially impacting future patent litigation strategies for technology companies.

Risk Assessment

Risk Level: medium — While the settlement resolves a major legal overhang, the long-term impact on VirnetX's business model and future revenue streams from patent licensing remains to be seen.

Key Numbers

• $110 million — Settlement Amount (Payment from Apple Inc. to VirnetX Holding Corp. to resolve patent infringement claims.)

Key Players & Entities

• VirnetX Holding Corp. (company) — Registrant
• Apple Inc. (company) — Settling party
• $110 million (dollar_amount) — Settlement payment
• June 13, 2024 (date) — Date of settlement agreement
• Delaware (jurisdiction) — State of incorporation
• Nevada (jurisdiction) — State of principal executive offices

FAQ

Key Financial Figures

• $0.0001 — ich registered Common Stock, par value $0.0001 VHC NYSE Indicate by check mark w

Filing Documents

• ef20031212_8k.htm (8-K) — 49KB
• ef20031212_ex10-1.htm (EX-10.1) — 113KB
• 0001140361-24-030525.txt ( ) — 323KB
• vhc-20240613.xsd (EX-101.SCH) — 4KB
• vhc-20240613_lab.xml (EX-101.LAB) — 21KB
• vhc-20240613_pre.xml (EX-101.PRE) — 16KB
• ef20031212_8k_htm.xml (XML) — 4KB

02

ITEM 5.02. DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS. Approval of an Amendment to the Amended and Restated 2013 Equity Incentive Plan On June 13, 2024, VirnetX Holding Corporation (the "Company") held its 2024 Annual Meeting of Stockholders (the "2024 Annual Meeting"). At the 2024 Annual Meeting, the Company's stockholders approved an amendment to the Company's Amended and Restated 2013 Equity Incentive Plan (the "Plan") to, among other things, increase the number of shares of the Company's common stock reserved for issuance under the Plan by 1,000,000 shares. The foregoing description of the Plan is qualified in its entirety by reference to the full text of the amended and restated Plan, filed as Exhibit 10.1 hereto.

07

ITEM 5.07. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS (a) Present at the 2024 Annual Meeting in person or by proxy were holders of 2,402,320 shares of the Company's common stock, representing 65.27% of the voting power of the shares of the Company's common stock as of April 19, 2024, the record date for the 2024 Annual Meeting, and constituting a quorum for the transaction of business. The matters that were voted upon at the 2024 Annual Meeting, and the number of votes cast for, against or withheld, as well as the number of abstentions and broker non-votes as to each such matter, where applicable, are set forth below. (b) At the 2024 Annual Meeting, the Company's stockholders (i) elected the Company's nominees for two Class II directors, (ii) ratified the appointment of Farber Hass Hurley LLP as the Company's independent registered accounting firm for the fiscal year ending December 31, 2024, (iii) approved, on an advisory basis, the compensation of the Company's named executive officers and (iv) approved an amendment to the Plan to, among other things, increase the share reserve. Proposal 1: Election of two Class II directors to serve until the 2027 Annual Meeting of Stockholders: Votes For Votes Withheld Broker Non-Votes Thomas M. O'Brien 1,269,426 350,087 782,807 Votes For Votes Withheld Broker Non-Votes Heidy Chow 1,307,160 312,353 782,807 Proposal 2: Ratification of the appointment of Farber Hass Hurley LLP as the Company's independent registered public accounting firm for the Votes For Votes Against Abstentions 2,139,269 234,200 28,851 Proposal 3: Advisory vote to approve the compensation of the Company's named executive officers: Votes For Votes Against Abstentions Broker Non-Votes 1,184,936 424,264 10,313 782,807 Proposal 4: Approval of the amendment to the Company's Amended and Restated 2013 Equity Incentive Plan: Votes For Votes Against Abstentions Broker Non-Votes 1,

FINANCIAL STATEMENTS AND EXHIBITS

FINANCIAL STATEMENTS AND EXHIBITS (d) Exhibits. Exhibit No. Description Incorporated by Reference Herein Filed Herewith Form Exhibit No. Filing Date File No. 10.1 Amended and Restated 2013 Equity Incentive Plan, as amended. X 104 Cover Page Interactive Data File, formatted in inline XBRL. X SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. VirnetX Holding Corporation By: /s/ Kendall Larsen Kendall Larsen Chief Executive Officer Dated: June 18, 2024

View Full Filing

View this 8-K filing on SEC EDGAR