Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 152

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 152
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 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 security measures designed to protect against security breaches, these measures could fail or may be insufficient, particularly
as techniques used to sabotage or obtain unauthorized access to systems change frequently and generally are not recognized until launched
against a target, resulting in the unauthorized disclosure, modification, misuse, destruction, or loss of our or our customers’
data or other sensitive information. Any failure to prevent or mitigate security breaches and improper access to or disclosure of the
data we maintain, including personal information, could result in litigation, indemnity obligations, regulatory enforcement actions, investigations,
fines, penalties, mitigation and remediation costs, disputes,