ITEM 1C. CYBERSECURITY

 

Risk Assessment and Strategy

 

We regularly evaluate cybersecurity risk from computer viruses and more sophisticated and targeted cyber-related attacks such as ransomware, as well as cybersecurity failures resulting from human error and technological errors. Such risks are reviewed by our management on a periodic basis as deemed appropriate.

 

Our overall strategy in combatting known cybersecurity risks includes a variety of individual tactics, including:

 

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the use of antivirus software, virtual private networks, email security, as well as other software to prevent and detect data intrusions.

 

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the deployment of updates and patches as they are available and maintaining the current versions of major software to reduce the exposure to vulnerabilities.

 

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the use of third-party service to conduct mandatory online training for all employees regarding identifying and avoiding cyber-security risks.

 

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the review of the security procedures used by third parties that may host or otherwise have access to Fuel Tech’s data.

 

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the deployment of third-party cyber-security experts to perform penetration testing on our internal and external networks and systems in an effort to identify potential vulnerabilities.

 

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if necessary, the use of third-party security experts if and when an incident is detected

 

We are not aware of having experienced any material cybersecurity incidents. We are not aware of any existent cybersecurity threats that would materially affect, or are reasonably likely to materially affect, our business strategy, results of operations or financial conditions. For more information, please see “Cybersecurity” under Item 1A “Risk Factors” above.

 

Board Oversight

 

As the Board of Directors has yet to establish any committees, Management regularly updates our Board regarding Management’s efforts to minimize cybersecurity risks.