{"url_path":"/sec/tact/10-k/2026/item-1c","section_key":"item-1c","section_title":"Item 1C Cybersecurity","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-03-12","source_url":"https://www.sec.gov/Archives/edgar/data/1017303/0001140361-26-009238-index.html","accession_number":"0001140361-26-009238","cik":"0001017303","ticker":"TACT","issuer_name":"TRANSACT TECHNOLOGIES INC","edgar_url":"https://www.sec.gov/Archives/edgar/data/1017303/0001140361-26-009238-index.html","primary_entity_key":"0001017303","primary_entity_name":"TRANSACT TECHNOLOGIES INC"},"word_count":1029,"has_tables":true,"body_markdown":"Item 1C. Cybersecurity\n\nRisk Management and Strategy\n\nThe Company’s Board of Directors recognizes the critical importance of maintaining the trust and confidence of our customers, clients, business\npartners and employees. The Board of Directors is actively involved in oversight of the Company’s risk management program, and cybersecurity represents an important component of the Company’s overall approach to enterprise risk management (“ERM”).\nThe Company’s cybersecurity policies, standards, processes and practices are fully integrated into the Company’s ERM program and are based on recognized frameworks established by the National Institute of Standards and Technology, the International Organization for Standardization and other applicable industry\nstandards. In general, the Company seeks to address cybersecurity risks through a comprehensive, cross-functional approach that is focused on preserving the confidentiality, security and availability of the information that the Company collects and\nstores by identifying, preventing and mitigating cybersecurity threats and effectively responding to cybersecurity incidents when they occur. As one of the critical elements of the Company’s overall ERM approach,\nthe Company’s cybersecurity program is focused on the following key areas:\n\n•\n\nGovernance: As discussed in more detail below under the heading “Governance,” the Board of Directors’ oversight of cybersecurity risk management is supported by the Audit Committee of the\nBoard of Directors (the “Audit Committee”), which regularly interacts with the Company’s ERM function, the Company’s Vice President of Information Technology, other members of management and relevant management committees and councils,\nincluding management’s Sarbanes-Oxley & Cybersecurity Steering Committee.\n\n•\n\nCollaborative Approach: The Company has implemented a comprehensive, cross-functional approach to identifying, preventing and mitigating cybersecurity threats and incidents, while also\nimplementing controls and procedures that are designed to provide for the prompt and appropriate internal reporting of certain cybersecurity incidents, either in the form of a single unauthorized occurrence or a series of unauthorized\noccurrences, so that decisions regarding the public disclosure and reporting of such incidents can be made by management in a timely manner.\n\n•\n\nTechnical Safeguards: The Company deploys technical safeguards that are designed to protect the Company’s information systems from cybersecurity threats, including firewalls, intrusion\nprevention and detection systems, anti-malware functionality and access controls, which are evaluated and improved through vulnerability assessments and cybersecurity threat intelligence.\n\n•\n\nIncidence Response and Recovery Planning: The Company has established and maintains comprehensive incident response and recovery plans intended to fully and timely address the Company’s\nresponse to a cybersecurity incident, and such plans are tested and evaluated on a regular basis.\n\n•\n\nThird-Party Risk Management: The Company maintains a comprehensive, risk-based\napproach to identifying and overseeing cybersecurity risks presented by third parties, including vendors, service providers and other external users of the Company’s systems, as well as the systems of third parties that could adversely\nimpact our business in the event of a cybersecurity incident affecting those third-party systems.\n\n•\n\nEducation and Awareness: The Company provides regular, mandatory training for personnel regarding cybersecurity threats as a means to equip the Company’s personnel with effective tools to\nproactively address cybersecurity threats and prevent incursions and to communicate the Company’s evolving information security policies, standards, processes and practices.  Our awareness program includes assessment of our personnel’s\npreparedness through regular phishing e-mail alerts, highlighted banners that warn about external senders, and tests administered to help the Company’s personnel interrogate, navigate around, and avoid clicking suspicious and unfamiliar\nlinks from unknown senders.\n\n19\n\n[Index](#INDEX)\n\nThe Company engages in the periodic assessment and testing of the Company’s policies, standards, processes and practices that are designed to\naddress cybersecurity threats and incidents. These efforts include a wide range of activities, including audits, assessments, tabletop exercises, threat modeling, vulnerability testing and other exercises focused on evaluating the effectiveness of\nour cybersecurity measures and planning. The Company engages third parties to perform assessments on our cybersecurity measures,\nincluding information security maturity assessments, audits and independent reviews of our information security control environment and operating effectiveness. The results of such assessments, audits and reviews are periodically reported to the\nAudit Committee and the Board of Directors, and the Company adjusts its cybersecurity policies, standards, processes and practices as appropriate based on the information provided by these assessments, audits and reviews.\n\nGovernance\n\nThe Board of Directors, in coordination with the Audit Committee, oversees the Company’s ERM process, including the management of risks arising\nfrom cybersecurity threats. The Board of Directors and the Audit Committee each receive presentations and\nreports on cybersecurity risks, which address a wide range of topics including recent developments, evolving standards, vulnerability assessments, third-party and independent reviews, the threat environment, technological trends and information\nsecurity considerations arising with respect to the Company’s peers and third parties. The Board of Directors and the Audit Committee also receive prompt and timely information regarding any cybersecurity incident that meets established reporting\nthresholds or that management otherwise deems to be significant, as well as ongoing updates regarding any such incident until it has been addressed. On an annual basis, the Board of Directors and Audit Committee discuss the Company’s approach to cybersecurity risk management with the members of management’s Sarbanes-Oxley & Cybersecurity Steering Committee, which includes the Company’s President and Chief Financial Officer (“CFO”) and Vice President of Information Technology.\n\nThe Sarbanes-Oxley & Cybersecurity Steering Committee, in coordination with the Company’s outside legal counsel, works collaboratively across the Company and with various consultants to implement a program designed to protect the Company’s information systems from\ncybersecurity threats and to promptly respond to any cybersecurity incidents in accordance with the Company’s incident response and recovery plans. The\nVice President of Information Technology has served in various roles in information technology and information security for over 26 years and holds undergraduate and graduate degrees in computer science. As described in more detail above under the\nheading “Information about our Executive Officers,” the Company’s Chief Executive Officer and the President and CFO each hold undergraduate and graduate degrees in their respective fields, and each has over 30 years of experience managing risks at\nthe Company and at similar companies, including risks arising from cybersecurity threats.\n\nCybersecurity threats, including as a result of previous cybersecurity incidents, have not materially affected, and are not reasonably likely to materially affect, the Company, including its business strategy, results of operations or financial condition."}