Item 1B. Unresolved Staff Comments
ITEM
1B. UNRESOLVED STAFF COMMENTS.
None.
ITEM
1C. CYBERSECURITY.
The
Company operates in the biotechnology sector and is subject to various cybersecurity risks that could adversely affect the Company’s
business, financial condition or results of operations, including intellectual property theft, fraud, extortion, harm to employees, collaborators
or vendors, violation of privacy laws and other litigations, legal and reputational risk.
The
Company acknowledges that an actual or perceived breach of its information assets could damage its reputation, interfere with the progress
of clinical trials, or interfere with efforts to pursue regulatory approvals for its product candidates. The Company also recognizes
that an actual or perceived breach of its information assets could impact the Company’s business strategy, operations, or financial
condition, as well as subject Actinium to third–party lawsuits, regulatory fines or other actions or liabilities, any of which
could adversely affect the Company. For further information, see “Risk Factors—Our business is subject to cybersecurity risks”
in Item 1A of this Annual Report on Form 10–K.
Actinium’s
Risk Management Strategy:
The
Company recognizes the critical importance of developing, implementing, and maintaining robust cybersecurity measures to safeguard its
information systems and protect the confidentiality, integrity, and availability of its data. With that objective, the Company undertook
a focused cybersecurity assessment conducted by an independent cybersecurity advisory firm to better understand the current cybersecurity
threats and risks necessary to establish the foundation of a cybersecurity risk assessment framework appropriate for its current business
operations and needs. The Company has also engaged well-known and established technology suppliers to support its key technology processes
and operating technical security management activities including threat, vulnerability, and network security management.
The Company has established an Incident Response Policy and recovery
plans to address its response to a cybersecurity incident, including those related to the third-party service providers engaged by the
Company and such plans are tested and evaluated on a regular basis. This includes continuous security operation centers monitoring of
the Company’s systems and accounts.
The
Company proactively mitigates its financial exposure to cybersecurity incidents by maintaining a cyber liability insurance policy. However,
the Company’s cyber liability insurance may be inadequate or may not be available in the future on acceptable terms, or at all.
In addition, the Company’s cyber liability insurance policy may not cover all claims made against the Company. Defending a suit,
regardless of its merit, could be costly and divert management’s attention from the Company’s business and operations.
To
date, Actinium has not experienced any material cybersecurity incident that affected the Company’s operations or financial condition.
Governance:
We rely on a multidisciplinary team including third-party service providers
to assess how identified cybersecurity threats could impact our business. The Company’s cybersecurity function is managed by the
Company’s Principal Financial Officer, who assumes the overall responsibility and accountability of the function and with select
members of the Company’s management is collectively responsible for the day–to–day assessment and management of cybersecurity
risks, their prevention, mitigation, detection, and remediation. Our Principal Financial Officer and other members of management have
undergone various briefings from our cybersecurity advisory firm to prepare them to effectively assess and manage material risks from
cybersecurity threats. Additionally, members of the third-party service providers have cybersecurity experience and/or certifications.
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The
Company’s Board is involved in overseeing our risk management processes and policies that may be implemented from time to time.
The Audit Committee will coordinate these activities through regular interactions with the Company’s management including but not
limited to: presentations regarding recent developments, potential risks associated with third parties, emerging trends, any relevant
findings or any incident that rises to the level of established thresholds .
The
risk factors discussed in this document should be considered together with information included elsewhere in the Annual Report on Form
10–K and should not be considered as the only risks to which the Company is exposed.