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Commitments and Contingencies | 9 Months Ended
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Sep. 30, 2025
Commitments and Contingencies [Abstract] |
Commitments and Contingencies | 13. Commitments and Contingencies Cisco WebEx Patent Litigation On July 23, 2021, a wholly owned subsidiary of the Company, Paltalk Holdings, Inc., filed a patent infringement lawsuit (the “Lawsuit”) against WebEx Communications, Inc., Cisco WebEx LLC, and Cisco Systems, Inc. (collectively, “Cisco”), in the U.S. District Court for the Western District of Texas (the “Court”). The Company alleged that certain of Cisco’s products have infringed U.S. Patent No. 6,683,858, and that the Company was entitled to damages. On August 29, 2024, the jury awarded the Company $65.7 million (the “Award”) in a jury verdict in connection with the Lawsuit. On October 8, 2024, an order granting a motion for final judgment (the “Final Judgment”) was entered into in the Court in connection with Lawsuit in favor of the Company in the amount of the Award and started the time for filing any post-trial motions or appeal. In response to the Final Judgment, Cisco filed a motion for Judgment as a Matter of Law (“JMOL”) with the Court. On August 27, 2025, the Court denied Cisco’s JMOL as to validity and infringement. However, the Court granted Cisco’s motion for a new trial with respect to damages. On October 29, 2025, the Court ordered a motions hearing set for November 12, 2025. Cisco also appealed the Court judgement of validity and infringement to the U.S. Court of Appeals for the Federal Circuit. The exact amount of the Award proceeds to be received by the Company (including any interest related thereto) will be determined based on a number of factors and will reflect the deduction of significant litigation-related expenses, including legal fees. Consequently, the Company estimates that it would receive no more than one third of the gross proceeds in connection with the Award, subject to post-trial proceedings (including any potential additional appellate proceedings by Cisco). Cisco ManyCam Litigation On March 7, 2025, Cisco Systems, Inc. and Cisco Technology, Inc. filed a complaint against the Company in the U.S. District Court for the District of Delaware, alleging that the Company’s ManyCam software has infringed U.S. Patent Nos. 8,830,293 and 8,941,708 and seeking damages and injunctive relief. The Company intends to vigorously defend itself against these claims and believes that ManyCam is not infringing these patents and that the case is without merit. The Company has also filed inter partes reviews with respect to U.S. Patent Nos. 8,941,708 and 8,830,293 with the United States Patent and Trademark Office Patent Trial and Appeal Board, arguing that these two patents should not have been granted and should be invalidated. The Company has not recorded any liability for this matter as it does not believe a loss is probable, and it cannot estimate any reasonably possible loss or range of possible loss. It is possible that an unfavorable resolution to this matter could have an adverse effect on the Company’s results of operations, financial position or cash flows. As of September 30, 2025, the Company had incurred approximately $0.5 million in expense for the three and nine months ended September 30, 2025 in defense of these claims. Legal Proceedings To our knowledge, other than as described above, there are no material pending legal proceedings to which we are a party or of which any of our property is the subject. The Company may be included in legal proceedings, claims and assessments arising in the ordinary course of business. The Company evaluates the need for a reserve for specific legal matters based on the probability of an unfavorable outcome and the reasonability of an estimable loss. No reserve was deemed necessary as of September 30, 2025.

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