Item 1B. Unresolved Staff Comments
ITEM 1B. UNRESOLVED STAFF COMMENTS
Not applicable.
ITEM 1C. CYBERSECURITY
Cybersecurity Risk Management and Strategy
The Company has developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of its critical systems and information. The Company’s cybersecurity risk management program includes a cybersecurity incident response plan and is integrated with the Company’s overall enterprise risk management program, sharing common methodologies, reporting channels, and governance processes that apply across the enterprise risk management program to other legal, compliance, strategic, operational, and financial risk areas. While the Company may not meet every standard, specification, or requirement of the Center for Internet Security Critical Security Controls, the Company uses these controls as a guide to identify, assess, and manage cybersecurity risks relevant to the business. The Company has implemented cybersecurity policies and frameworks aligned with industry and governmental standards to closely meet requirements, instructions, and guidance from ISO27001, NIST, CMMC, GDPR, HIPAA, SOC, and SOX.
Our cybersecurity risk management program includes, among other things:
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risk assessments designed to help identify material cybersecurity risks to critical systems and information services;
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a team comprising information technology (IT) security, IT infrastructure, and IT compliance personnel principally responsible for directing (i) cybersecurity risk assessment processes, (ii) security processes and (iii) planned responses to cybersecurity incidents;
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the use of external cybersecurity service providers, where appropriate, to assess, test or otherwise assist with aspects of security processes;
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cybersecurity awareness training of employees with access to IT systems;
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a cybersecurity incident response plan and Security Operations Center to respond to cybersecurity incidents; and
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a third -party risk management process for service providers.
During the year ended January 3, 2026, the Company has not identified risks from known cybersecurity threats, including any prior cybersecurity incidents, that have materially affected operations, business strategy, results of operations, or financial condition. However, the Company expects to continue to face certain risks from ongoing cybersecurity threats that, if realized, are reasonably likely to materially affect the Company, including our operations, business strategy, results of operations, or financial condition. See Risk Factors – Cyber Security, Data Privacy, and Data Center Capacity and Telecommunication Links.
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ITEM 1C. CYBERSECURITY (CONTINUED)
Cybersecurity Governance
The Company’s Board considers cybersecurity risk as part of its risk oversight function and considers cybersecurity and IT risks as key strategic risks of the Company. The Board oversees management’s implementation of the Company’s cybersecurity risk management program, receiving at least annual updates from management (including our Vice President – Technology and Vice President of IT Security and Compliance) on cybersecurity risks, including briefings on the Company’s cyber risk management program and cybersecurity incidents, and reviewing cybersecurity topics impacting companies with management and external experts.
The Company’s Vice President of IT Security and Compliance has primary responsibility for leading the Company’s overall cybersecurity risk management program, supervising both internal cybersecurity personnel and external cybersecurity service providers. The Company’s cybersecurity function is responsible for assessing and managing material risks from cybersecurity threats, as well as informing management about and monitoring the prevention, detection, mitigation, and remediation of cybersecurity risks and incidents through various means, which include briefings with internal security personnel, threat intelligence and other information obtained from governmental, public or private sources, including external cybersecurity service providers and alerts and reports produced by security tools deployed in the IT environment.
The Company’s Vice President – Technology and Vice President of IT Security and Compliance have significant experience in managing and leading information systems and deploying cybersecurity technologies and have extensive cybersecurity training and knowledge. The Company’s Vice President of IT Security and Compliance have several industry certifications, including CISSP (Certified Information Security System Professional), CCSP (Certified Cloud Security Professional), and CCSK (Certificate of Cloud Security Knowledge). The Company’s Vice President – Technology reports to the Chief Executive Officer, and the Company’s Vice President of IT Security and Compliance reports to the Company’s Vice President - Technology.