{"url_path":"/sec/jakk/10-k/2026/item-1c","section_key":"item-1c","section_title":"Item 1C Cybersecurity**","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-03-02","source_url":"https://www.sec.gov/Archives/edgar/data/1009829/0001185185-26-000723-index.html","accession_number":"0001185185-26-000723","cik":"0001009829","ticker":"JAKK","issuer_name":"JAKKS PACIFIC INC","edgar_url":"https://www.sec.gov/Archives/edgar/data/1009829/0001185185-26-000723-index.html","primary_entity_key":"0001009829","primary_entity_name":"JAKKS PACIFIC INC"},"word_count":523,"has_tables":true,"body_markdown":"**Item 1C. Cybersecurity**\n\n \n\nJAKKS has adopted a cybersecurity framework to\nhelp manage and mitigate cybersecurity risks.\n\n \n\nJAKKS has implemented cybersecurity policies,\nprocesses and procedures to aid in the identification, protection, detection of cyber related issues, and the response to and recovery\nfrom cybersecurity breaches. A summary of the principal activities JAKKS has undertaken to strengthen its cybersecurity posture and mitigate\nits cybersecurity risks:\n\n \n\n \n●\nA subcommittee of the Board of Directors has been established to oversee and manage the company’s risk, response, and recovery policies, processes, and procedures related to, and stemming from, cyber-related issues;\n\n \n \n \n\n \n●\nPurchased cybersecurity risk insurance to protect against potential losses arising from a cybersecurity incident;\n\n \n \n \n\n \n●\nImplementation of weekly vulnerability and semi-annual penetration tests to identify, and if necessary, remediate, any potential risk to the organization;\n\n \n \n \n\n \n●\nMaintain and review annually a Business Continuity Plan and Cyber Attack Plan ;\n\n \n \n \n\n \n●\nImplemented a revised and updated phishing email training program semi-annually; and\n\n  \n\nAs part of our cybersecurity program, the Senior\nVice President of Operations and Vice President of Information Technology, collectively referred to as our “Cybersecurity Team,”\nreviews our cybersecurity posture, identifies areas in need of improvement, and helps foster a culture of compliance (including training\nof all employees). Our Vice President of Information Technology has over 25 years of experience in various roles involving managing information\nsecurity, developing cybersecurity strategy, and implementing cybersecurity program. The Company’s program also includes activities\nto respond to and recover from cybersecurity incidents, including processes to triage, assess severity, investigate, escalate, contain,\nand remediate an incident, as well as to comply with potentially applicable legal obligations and mitigate brand and reputational damage.\n\n \n\nOur Cybersecurity Team assesses cybersecurity\nrisks, including those related to our supply chain and third-party service providers that have access to our systems or facilities where\nJAKKS’ data is stored. The team assesses how cybersecurity risks affect or are reasonably likely to materially affect the Company,\nincluding our operations or financial position. Our Cybersecurity Team is responsible for the Company’s risk assessment, risk management,\ndisaster recovery, and auditing of JAKKS overall cybersecurity program. The Cybersecurity Team meets with the Cybersecurity Subcommittee\nof the Board of Directors to discuss, identify, and address cybersecurity risks and review updates to our risk management program to\nensure cybersecurity risks to the organization are mitigated. For further discussion of the risks associated with cybersecurity incidents,\nsee the cybersecurity risk factors beginning on page 11 of the section entitled “Item 1A. Risk Factors” in this Form 10-K.\n\n \n\n25\n\n[Table of Contents](#TableOfContents) \n\n \n\nIn December 2022, the Company learned of a cybersecurity\nthreat to its information technology system (“IT System”), and that certain data, including personal data of employees, had\nbeen extracted from the Company’s IT System. Upon learning of the cybersecurity threat, the Company launched an investigation and\nundertook prompt action, including employing containment protocols to mitigate the impact of the threat, engaging third-party information\ntechnology cyber security and forensics experts and special legal counsel, and utilizing additional security measures to help safeguard\nthe integrity of its IT System’s infrastructure and the data contained therein. The Company has not identified any material damage\nsuffered from the incident."}