HEALTHSTREAM INC

Item 8.01 Other Events. HealthStream, Inc. (the “Company”) recently detected that the Company had experienced a cybersecurity incident in which an unauthorized third party gained access to a limited portion of files on the Company’s corporate file server as described below. Following such detection, the Company initiated response protocols, launched an investigation, which remains ongoing, engaged the services of cybersecurity and forensics specialists and advisors, and notified certain law enforcement authorities. Based on the Company’s investigation to date, we do not believe that any customer-facing systems were accessed or compromised. In addition, the Company has not identified evidence to date that protected health information, as defined by the Health Insurance Portability and Accountability Act (“HIPAA”) was accessed or exfiltrated. Moreover, the Company has not identified any evidence indicating that any files were encrypted by the unauthorized third party. We have not experienced any interruption in our product or service delivery to customers or to our business operations. Based on the Company’s investigation to date, the Company believes that certain information of the Company’s employees, as well as billing related information of certain customers and vendors, and corporate and legal information of the Company, was accessed and/or exfiltrated from the Company’s corporate file servers as the result of the incident. In addition, for approximately 75 of our credentialing customers, the Company had copied certain customer data to the Company’s corporate file servers for purposes of data conversion, analytics, and troubleshooting for these customers. The Company has notified such customers regarding this incident. We have incurred, and expect to continue to incu