Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 117

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 117
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In
the normal course of business, we may have access to sensitive and confidential information regarding insureds. Although we devote significant
resources and management focus to ensuring the integrity of our systems through information security and business continuity programs,
our facilities and systems, and those of third party service providers, are vulnerable to external or internal security breaches, acts
of vandalism, computer viruses, misplaced or lost data, programming or human errors or other similar events.

Information
security risks have increased recently in part because of new technologies, the use of the Internet and telecommunications technologies
(including mobile devices) to conduct financial and other business transactions and the increased sophistication and activities of organized
crime, perpetrators of fraud, hackers, terrorists and others. In addition to cyber-attacks or other security breaches involving the theft
of sensitive and confidential information, hackers recently have engaged in attacks designed to disrupt key business services, such as
customer-facing websites. We are not able to anticipate or implement effective preventive measures against all security breaches of these
types, especially because the techniques used change frequently and because attacks can originate from a wide variety of sources. We
employ detection and response mechanisms designed to contain and mitigate security incidents, but early detection may be thwarted by
sophisticated attacks and malware designed to avoid detection.

The
access by unauthorized persons to, or the improper disclosure by us of, confidential information regarding the insureds could result
in significant legal and financial exposure, supervisory liability, damage to our reputation or a loss of confidence in our business,
which could have a material adverse effect on our business, financial condition or results of operations.

U.S.
privacy concerns may affect the access to accurate and current medical information regarding the insured under life insurance policies.

The
value of a life insurance policy is inherently tied to the remaining life expectancy of the insured and information necessary to perform
this valuation may not be available at the time of purchase or sale. For example, if a policy is being purchased in the secondary market
from an entity that had earlier purchased the policy directly from the insured, it is likely that the insured made his or her medical
records available at the time of his or her sale of the policy to the initial purchaser. However, if necessary consents were not obtained
from the insured, it is possible that this information cannot legally be made available at the time of the subsequent purchase of the
policy. If it is legally available to the subsequent purchaser, it is possible that such information is outdated and of little utility
for a current evaluation of