Item 1B. Unresolved Staff Comments
ITEM
1B. UNRESOLVED STAFF COMMENTS
None.
ITEM
1C. CYBERSECURITY
Risk management and strategy
We have implemented and maintain
various information security processes in accordance with our business designed to identify, assess, manage and protect against material
risks from cybersecurity threats to our critical computer networks, communication systems, hardware and software, and our critical data,
including intellectual property and confidential information.
Depending on the environment,
we implement and maintain various technical, physical and organizational measures, processes, and policies designed to manage and mitigate
material risks from cybersecurity threats to our information systems and data, including, for example, incident detection and response
plans; disaster recovery and business continuity plans; maintaining network security and access controls; asset management; monitoring
certain of our systems and network; cybersecurity insurance; and training our employees about certain cybersecurity risks and threats.
We currently engage third
party information technology partners to design and manage our information security processes and system. Working with our outsourced
security team, our Chief Financial Officer manages the risk assessment and mitigation process. We hired a business systems and information
technology manager in fiscal 2025 to increase our in-house expertise in this area. As we grow, we plan to develop a more robust and detailed
strategy for cybersecurity.
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These processes are integrated
into our broader enterprise risk management activities overseen by management and the Board. We also maintain processes designed to identify
and manage material risks from cybersecurity threats associated with our use of third-party service providers, including through our engagement
of, and coordination with, our outsourced information technology and security partners
Governance
Cybersecurity risks are overseen
by the full Board of Directors and the Audit Committee as part of their regular oversight. We amended our Audit Committee charter in fiscal
2026 to incorporate cybersecurity and technology duties and responsibilities. Additionally, members of the Board and Audit Committee are
encouraged to engage in ad hoc conversations with management on cybersecurity related updates to our risk management and strategy. Cybersecurity
incidents are reported to the Chief Financial Officer to determine incident severity and response. Incidents that are assessed to present
heightened risk or potential materiality are escalated to appropriate members of management and reported, as appropriate, to the Audit
Committee and/or the full Board for oversight purposes. In evaluating potential materiality, management considers, among other things,
the nature and scope of the incident and the potential impact on our business strategy, results of operations and financial condition.
In an effort to deter and detect cyber threats, we also provide all employees with access to digital assets with an ongoing cybersecurity
awareness training program, which further educates employees and covers timely and relevant topics, including phishing, password protection,
asset use and mobile security.
Risks from cybersecurity threats
To date, we have
not identified any cybersecurity incidents or threats that have materially affected us, or are reasonably likely to materially affect
us, including our business strategy, results of operations, or financial condition. However, like many companies in our industry, we face
numerous and evolving cybersecurity threats that could adversely affect our business. For more information about the risks from cybersecurity
threats that may materially affect us and how they may do so, see our risk factors under Part 1 Item 1A Risk Factors contained elsewhere
in this report.