VirnetX received a notice from the NYSE that the company is not in compliance with the NYSE’s Listed Company Manual because its average global market capitalization over a consecutive 30 trading-day period was less than $50M, and, at the same time, its stockholders’ equity was less than $50M. The Notice does not have an immediate impact on the listing of the company’s common stock and does not affect the company’s business operations or its SEC reporting requirements. Within 45 days from receipt of the Notice, the company intends to submit a plan to the NYSE advising it of the definitive action the company has taken, is taking, or plans to take that would bring it into conformity with the continued listing standards. If the NYSE accepts the company’s plan, the company’s common stock will continue to be listed and traded on the NYSE during the 18-month cure period, subject to the company’s compliance with other NYSE continued listing standards and continued periodic review by the NYSE of the company’s progress with respect to its plan.