Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 15

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 15
---
 entirely of independent directors. Although we do not intend to rely on the “controlled company” exemption under Nasdaq
rules, we could elect to rely on this exemption in the future. If we elect to rely on the “controlled company” exemption,
a majority of the members of our Board might not be independent directors and our nominating and corporate governance and compensation
committees might not consist entirely of independent directors. Accordingly, during any time while we remain a controlled company relying
on the exemption and during any transition period following a time when we are no longer a controlled company, you would not have the
same protections afforded to shareholders of companies that are subject to all of the Nasdaq corporate governance requirements. Our status
as a controlled company could cause our common stock to look less attractive to certain investors or otherwise harm our trading price.

A significant inadvertent disclosure or breach
of confidential and/or personal information we hold, or of the security of our or our customers’, suppliers’, or other partners’
computer systems could be detrimental to our business, reputation, and results of operations.

Our business requires the storage, transmission,
and utilization of data, including healthcare information, patient’s information, personal information, and other information that
must be maintained on a confidential basis. These activities have made, and may in the future make, our clients and our products a target
of cyber-attacks by third parties seeking unauthorized access to the data contained on our platforms. As a result of the types and volume
of personal data on our systems, we believe that healthcare companies may be a target for such breaches and attacks.

In recent years, the frequency, severity, and
sophistication of cyber-attacks, computer malware, viruses, social engineering, and other intentional misconduct by computer hackers have
significantly increased, and government agencies and security experts have warned about the growing risks of hackers, cybercriminals,
and other potential attackers targeting information technology systems. Such third parties could attempt to gain entry into our systems
for the purpose of stealing data or disrupting the systems. In addition, our security measures may also be breached due to employee error,
malfeasance, system errors, or vulnerabilities, including vulnerabilities of our vendors, suppliers, their products, or otherwise. Third
parties may also attempt to fraudulently induce employees or customers into disclosing sensitive information such as user names, passwords,
or other information to gain access to the data contained on our platforms, including patient information.

12

While we and our third-party cloud providers have
implemented