Subsequent Events

9 Months Ended

Sep. 30, 2017

Subsequent Events [Abstract]

Subsequent Events

Note 8 — Subsequent Events

On October 16, 2017, we received a final judgment affirming a jury’s verdict of $1.20 per iPhone royalty in the United States Court for the Eastern District of Texas, Tyler Division in the case VirnetX, Inc. et al. v. Apple Inc., No.  6:10-cv-00417-RWS (Apple I), awarding the Company a total of $439.8 million including jury verdict, willful infringement, interest, costs and attorney fees, following the previously disclosed jury trial and verdict in the amount of $302.4 million. The Final Judgement is subject to appeal stemming from new issues unresolved in the Apple I case, remanded back from the United States Court of Appeals for the Federal Circuit. On October 27, 2017 Apple filed its notice of appeal of the Final Judgment entered on September 29, 2017 to the United States Court of Appeals for the Federal Circuit. (See “Note 7 – Litigation”).

Subsequent to September 30, 2017, we sold 527,039 shares of common stock under the ATM. The average sales price per common share was $5.49 and the aggregate proceeds from the sales totaled $2,806 during the period. Sales commissions, and other costs associated with the ATM totaled $87.

On October 26^th, 2017, we signed a Strategic Service Provider (SSP) Agreement with Benefit One Solutions, Inc., Japan, a company which provides welfare services to employees of over 3,000 government, and corporate organizations in Japan. Benefit One Solutions will be a Strategic Service Provider and a non-exclusive reseller of VirnetX's Gabriel Collaboration Suite of Products in Japan. Under the terms of the agreement, Benefit One will adopt the use of VirnetX Gabriel products within its own organization of approximately 1,300 employees for intra-company communication, and will integrate Gabriel Collaboration Suite of Products into its benefits application platform and offer VirnetX Secure Domain Names and Gabriel Client as a value-added service to its outside businesses.