Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 153

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 153
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 reputational harm, diversion of management’s attention, and other
liabilities and damage to our business.

We cannot be certain that advances in criminal
capabilities, the discovery of new vulnerabilities in our systems, and attempts to exploit those vulnerabilities, physical system or facility
break-ins and data thefts or other developments will not compromise or breach the technology protecting our systems and the information
we possess.

We may incur significant costs in protecting against
or remediating cyber-attacks. Any security breach could result in operational disruptions that impair our ability to meet our customers’
requirements, which could result in decreased revenue. Also, whether there is an actual or a perceived breach of our security, our reputation
could suffer irreparable harm, causing our current and prospective customers to reject our products and services in the future, deterring
data suppliers from supplying us data or customers from using our services, or changing consumer behavior adversely affecting our technology’s
market coverage. Further, we could be forced to expend significant resources in response to a security breach, including those expended
in notifying individuals and providing mitigating services, repairing system damage, increasing cybersecurity protection costs by deploying
additional personnel and protection technologies, and litigating and resolving legal claims or governmental inquiries and investigations,
all of which could divert the attention of our management and key personnel away from our business operations.

Finally, while we provide guidance and specific
requirements in some cases, we do not directly control any of our clients’ cybersecurity operations, or the amount of investment
they place in guarding against cybersecurity threats. Accordingly, we are subject to any flaws in or breaches of their systems, which
could materially impact our business, operating results, and financial results.

An inability to attract and retain highly skilled employees could
adversely affect our business.

To execute our growth plan, we must attract and
retain highly qualified employees skilled in both software engineering and healthcare industry regulations. Competition for these employees
is intense, especially with respect to software engineers with high levels of experience in cloud-related services. We have, from time
to time, experienced, and we expect to continue to experience, difficulty in hiring and retaining employees with the appropriate level
of qualifications. Many of the companies with which we compete for experienced employees have greater resources than we have and may offer
compensation packages that are perceived to be better than ours. Additionally, changes in our compensation structure may be negatively
received by employees and result in attrition or cause difficulty in the recruiting process. If we fail to attract new employees or fail