Details of Data encryption

[PlanetMacro]

It is not clear to me, how my data privacy is guaranteed. It seems to me that the crown does encrypt the eeg data, but then sends this data to some third party over the internet, where it can be decrypted. Is that correct?

How can I use this headset without internet access and with a passphrase of my choice so no 3rd party (including Neurosity) has access.