ITEM 1C. CYBERSECURITY

 

ETST recognizes the growing importance of cybersecurity. Recently, the company hired Chris Rose as the Chief Technology Officer (CTO) on April 1st, 2024. Chris assumes the primary responsibility for overseeing our cybersecurity risk exposure. This includes evaluating, assessing, and enhancing cybersecurity practices across the organization.

 

Initial Risk Assessment

 

Upon assuming the role, the new CTO conducted an initial IT and Security risk assessment. This involved employee sit--along, inventorying all tech systems and assets, and reviewing existing practices, procedures, and policies. The findings were meticulously cataloged, and a weighted scoring system was applied to rank risks based on impact and likelihood. Action plans have been developed and are being addressed in priority ranked order. These assessments will be updated quarterly, addressing new and outstanding risks and remediation plans.

 

Third-Party Engagement

 

To expedite security policy changes, active threat monitoring, infrastructure enhancements, device management, and endpoint security, the CTO has engaged additional third-party IT consultants.