Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 32

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 32
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 it. If any of the entities providing services related to the life insurance
policies properly obtains and uses otherwise private health information, but fails to maintain the confidentiality of such information,
such service provider may receive complaints from the affected individuals, their families and relatives and, potentially, interested
regulatory authorities. Because of the uncertainty of applicable law, it is not possible to predict the outcome of such disputes.

20

Additionally,
it is possible that, due to a misunderstanding regarding the scope of consents that a service provider possesses, such service provider
may request and receive from health care providers information that it in fact did not have a right to request or receive. Once again,
if a service provider receives complaints for these acts, it is not possible to predict what the results will be. This uncertainty also
increases the likelihood that a service provider may sell, or cause to be sold, life insurance policies in violation of applicable law,
which could potentially result in additional costs related to defending claims or enduring regulatory inquiries, rescinding such transactions,
possible legal damages and penalties and probable reduced market value of the affected life insurance policies. Each of the foregoing
factors may delay or reduce the return on life insurance policies.

Cyber-attacks
or other security breaches could have a material adverse effect on our business.

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
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