Sharps Technology Inc. Material Event - What Happened

Hey everyone, let's break down what's been going on with Sharps Technology Inc. in a way that makes sense, without all the confusing business talk. Think of this as me explaining a news story to a friend over coffee.

---

1. What happened? (in plain English - the actual event)

Okay, so Annemarie Tierney, who was an independent director on Sharps Technology Inc.'s Board of Directors, just resigned. She also stepped down from her roles on the company's Audit Committee and Compensation Committee.

2. When did it happen?

This all went down on December 19, 2025. The company officially reported it on December 23, 2025.

3. Why did it happen? (context and background)

Ms. Tierney resigned because she had serious concerns about potential conflicts of interest and "related party transactions" within the company. In simple terms, she was worried about deals happening between Sharps Technology and other businesses that are closely connected to the company's management.

Specifically, her concerns revolved around Sharps Technology's relationships with Sol Edge Limited (a consultant) and Sol Markets (a strategic advisor). Both of these companies are fully owned and controlled by James Zhang, who happens to be the brother of Alice Zhang, Sharps Technology's Chief Investment Officer (CIO) and also a director on the Board.

To make things even more intertwined, Alice Zhang, along with the company's Executive Chairman and Chief Financial Officer, will be part of a new "Treasury Oversight Committee." This committee is supposed to directly supervise Sol Edge and Sol Markets, which have a significant influence on how Sharps Technology manages its digital assets (like cryptocurrencies). Adding another layer, Alice Zhang's husband, Jason Hu, is a senior member of the team at Sol Edge that actually manages these digital assets for Sharps Technology.

So, Ms. Tierney saw a complex web of family connections and business dealings that raised serious red flags about whether decisions were being made purely in the best interest of Sharps Technology and its shareholders, or if there were potential conflicts.

4. Why does this matter? (impact and significance)

This is a pretty big deal because when an independent director resigns, especially over concerns about conflicts of interest, it's a major warning sign for how the company is being run. Independent directors are supposed to be the unbiased watchdogs, ensuring fairness and transparency for all shareholders. Her resignation suggests there might be serious issues with the company's corporate governance – the rules and practices that ensure the company is directed and controlled ethically and effectively. It could mean that decisions about the company's digital assets might not be made solely for the benefit of Sharps Technology and its investors. This kind of news can really shake investor confidence.

5. Who is affected? (employees, customers, investors, etc.)

When something like this happens, it doesn't just affect the company's bottom line. Here's who might feel the ripple effects:

• Employees: They might feel a sense of unease or question the company's ethical standards, especially if these issues become more public or lead to further internal changes.
• Customers: Less directly impacted by this specific event, as it's about internal governance. However, if governance issues lead to broader problems, it could eventually affect the company's reputation and ability to deliver products.
• Investors (people who own stock): This is the group most directly affected. Ms. Tierney's resignation and her stated reasons are a major red flag. It could lead to a loss of investor confidence, potentially causing the stock price to drop. Investors might worry about how the company's money, especially its digital assets, is being managed, and whether related parties are benefiting unfairly. This raises questions about the company's long-term stability and trustworthiness.
• Competitors: They might observe Sharps Technology's governance challenges, but it's unlikely to have a direct impact on their own operations.
• The healthcare industry (or relevant industry): While Sharps Technology operates in healthcare, this specific event is more about internal corporate governance and financial management (specifically digital assets) rather than its core healthcare product offerings. The broader industry isn't directly impacted, but Sharps Technology's reputation could be.

6. What happens next? (immediate and future implications)

Okay, so the event happened. What now? Sharps Technology will need to find a new independent director to fill Ms. Tierney's spot on the Board and committees. More importantly, the company will likely face increased scrutiny from investors and potentially regulators regarding its related-party transactions and its digital asset management strategy. We'll be watching to see if the company addresses these conflict of interest concerns, perhaps by reviewing its policies or making changes to its oversight committees. There's also a possibility that Ms. Tierney might provide a follow-up letter agreeing or disagreeing with the company's statements, which would be filed as an amendment to the 8-K.

7. What should investors/traders know? (practical takeaways)

If you own Sharps Technology stock, or you're thinking about buying or selling, here are a few things to keep in mind:

• This is a serious governance concern: An independent director resigning over conflicts of interest is not a minor event. It suggests potential ethical and financial risks that could impact the company's future.
• Watch for further details: Keep an eye out for any additional statements from Ms. Tierney or the company's response to these concerns. Transparency will be key.
• Evaluate the digital asset strategy: The concerns are tied to the company's digital asset management and its consultants. Investors should scrutinize this aspect of the business more closely, as it appears to be a significant area of risk.
• Potential for stock volatility: News like this can cause uncertainty, leading to fluctuations in the stock price in the short term.
• Consider the long-term implications: If these governance issues are not adequately addressed, they could have a lasting negative impact on the company's reputation, its ability to raise capital, and its overall financial health.