Mr. Jim Durward reports

NDATALYZE CORP. ("NDAT" OR THE "CORPORATION") (CSE:NDAT) (OTCQB:NDATF) COMPLETES REVERSAL OF THE MINDBALANCED ACQUISITION

The Mindbalanced acquisition of April 15, 2024, has been reversed and Ndatalyze Corp. has no future obligations or liabilities related to the transaction. As part of the reversal Ndatalyze has received back to its treasury 1.1 million common shares for cancellation and the corporation now has 41,327,425 common shares outstanding. The corporation benefitted by approximately $27,000 (at a $1.35 United States-dollar/Canadian-dollar exchange rate) on the transaction reversal. Ndatalyze has no payment obligation for the return and cancellation of any of the shares.

Jim Durward, president, states: "Often, an acquisition will involve significant dilution or cash expenditure even in the event of poor performance of the acquired company. This transaction was purposely structured to maximize benefit in the event of high performance while minimizing dilution risk in the event of poor performance. Due to this structure, the share dilution related to the unwinding was less than 1 per cent."

YMI distribution channels: Going forward, rather than relying on a single point of entry as was contemplated via the Mindbalanced transaction, the corporation is now pursuing new YMI distribution channels directly via various treatment modality manufacturers and EMR platforms. In this regard, the corporation is currently migrating the depression assessment of YMI to an OceanMD form. OceanMD, a Well Health Technologies Corp. company, is Canada's digital gateway to health care with the largest library of secure health care forms, serving greater than 40,000 clinicians. OceanMD forms data can be integrated with various electronic medical records (EMR) in use by physicians in Canada. The YMI questionnaire is already migrated and EMR integration has begun. Ndatalyze views OceanMD as primarily a marketing channel rather than a revenue generator with the form is being implemented to increase YMI exposure to the medical community.

Clinical study/patent implications: Due to the positive results from the York University Clinical Study, and considering the rapid rate of change related to AI (artificial intelligence)/machine-learning technologies and continuing comments by the USPTO, the corporation believes that its proprietary reference database and trade secrets hold the highest value for the corporation going forward and since these cannot be patented, to reduce intellectual property-related expenses the current patent application will not be pursued. James Durward, president, states: "No matter how powerful an interpretational analysis software is, the results are completely dependent on the quality of the underlying data. I've always believed that the value of our YMI system rests in our reference database that was purposely built for mental condition assessment. With the high rate of advancement in the AI/machine-learning world, interpretational process patents can become obsolete before or soon after, being granted and this supports my belief that in the AI/machine-learning world, proprietary data and trade secrets may hold more value than patents going forward."

We seek Safe Harbor.