CardioComm Solutions Faces Cybersecurity Incident; Business Operations Impacted

Toronto-based medical provider CardioComm Solutions, Inc. (TSXV: EKG) has announced that it experienced a cyber security incident on its servers. The company is currently conducting a thorough investigation to determine the source and extent of the data breach. To support these efforts, CardioComm is collaborating with KPMG-EGYDE, relevant authorities, and third-party cybersecurity experts following industry best practices.As a result of the incident, CardioComm’s business operations will be affected for several days, and it may take longer to restore data and re-establish production server environments. The company assures that there is no evidence of compromised customers’ health information since its software runs on each client’s server environment, and it does not collect patient health information. However, the company is taking precautions to safeguard its staff’s personal information against identity theft if it was compromised.In addition to dealing with the cybersecurity incident, CardioComm is addressing a Cease Trade Order (CTO) issued by the Ontario Securities Commission and the suspension of trading imposed by the TSX Venture Exchange. These actions were triggered due to the late filing of the company’s annual financial statements and management’s discussion and analysis. Although the security incident caused unexpected delays, CardioComm is working with its auditor to finalize the required filings, which are expected to be submitted before the end of the 90-day CTO term. Upon filing, the company will apply for reinstatement for trading on the TSX Venture Exchange.CardioComm Solutions specializes in patented and proprietary technology for recording, viewing, analyzing, and storing electrocardiograms to diagnose and manage cardiac patients. Its products are distributed globally through external distribution networks and a North American-based sales team. The company holds ISO 13485 and ISO 27001 certifications, is HIPAA compliant, and has medical device clearances and sales licenses from the FDA and Health Canada.The incident serves as a reminder of the importance of robust cybersecurity measures for companies, especially those handling sensitive medical data. CardioComm’s focus on addressing the breach and implementing additional security measures demonstrates its commitment to protecting its customers’ information and maintaining regulatory compliance.