Cybersecurity Threats and Data Breaches: The company handles sensitive government and healthcare data, making it a prime target for cyberattacks, which could lead to significant financial and reputational damage, and legal liabilities.

Intense Competition in IT Services: Operating in a highly competitive market, Santech faces pressure from rivals, potentially impacting its ability to secure new contracts, maintain pricing, and retain market share.

Regulatory and Compliance Risks: As a provider to the healthcare and government sectors, Santech is subject to stringent and evolving data privacy and industry-specific regulations, with non-compliance posing a risk of substantial fines and operational restrictions.