Item 1B. Unresolved Staff Comments
Item
1B. Unresolved Staff Comments.
None.
Item
1C. CYBERSECURITY
Spectral
maintains a comprehensive cybersecurity risk management program designed to identify, protect against, detect, respond to, and mitigate
reasonably foreseeable cybersecurity threats to the Company’s operations. This program incorporates internal controls and safeguards
aligned with industry standards - including access controls, data encryption, network monitoring, and employee cybersecurity training
- to protect the confidentiality, integrity, and availability of the Company’s information assets. We utilize a range of security
tools and procedures to continuously monitor our systems and prevent unauthorized access or data loss. In addition, the Company has implemented
a formal incident response plan that outlines procedures for promptly addressing and containing cybersecurity incidents. This incident
response plan is tested and updated periodically (e.g., through tabletop simulations and third-party penetration testing) to ensure preparedness
and effective remediation of any identified security events.
Oversight
and Governance: Cybersecurity risk management is overseen at the highest levels of the Company’s leadership. The Board of Directors,
through its Audit Committee, is responsible for monitoring the Company’s cybersecurity risks and related risk management practices.
The Audit Committee receives regular reports from management on cybersecurity matters, including updates on risk assessments, security
improvements, and any relevant threat developments or incidents. Senior management has designated personnel (including information technology
and security officers) to manage day-to-day cybersecurity operations and to implement cybersecurity policies, controls, and procedures.
These personnel regularly brief the Audit Committee and the Board on the status of the Company’s cybersecurity posture and risk
mitigation activities. The Company also provides periodic cybersecurity training to all employees to reinforce security awareness and
protocol compliance as part of its internal control framework.
Risk
Management Processes: Spectral conducts regular assessments of cybersecurity vulnerabilities and emerging threats across its systems
and products. Our risk management approach draws on widely accepted frameworks (such as the NIST Cybersecurity Framework) to prioritize
risks and guide the implementation of appropriate security measures. We engage independent security experts to perform evaluations of
our cybersecurity program - including periodic third-party security audits and penetration testing - in order to test the effectiveness
of our safeguards and to identify areas for improvement. Additionally, the Company maintains a third-party risk management program that
assesses and monitors the cybersecurity practices of critical vendors and partners, helping ensure that our service providers uphold
robust data security standards. Findings from these ongoing risk assessments and tests are used to continually enhance our internal controls
and cybersecurity defenses.
As
of the date of this Annual Report, the Company has not experienced any known cybersecurity incidents that had a material effect on our
business, operations, or financial condition. During the reporting period, no cybersecurity breach or attack has been identified that
resulted in significant data loss, financial costs, or operational disruptions for Spectral. Nevertheless, cybersecurity threats continue
to evolve rapidly, and no security program can guarantee absolute protection against all attacks. A significant cybersecurity incident
in the future could potentially cause substantial harm to the Company, including business interruptions, remediation costs, reputational
damage, loss of sensitive information, or legal and regulatory consequences. Spectral remains proactive in updating and strengthening
its cybersecurity measures in light of new threats and technological changes. For further information on the risks associated with cybersecurity
and data protection, refer to the “Risk Factors” section of this Annual Report (Item 1A) which discusses these risks in more
detail.
ITEM
2. DESCRIPTION OF PROPERTY
We
rent a virtual office located at 701 Fifth Avenue, Suite 4200, Seattle, Washington, 98104, under a month-to-month basis. We pay monthly
rent of $378.00 for this location. We believe that our current facilities are sufficient to meet our current and near-term needs and
that, should it be needed, suitable additional space will be available.