Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 105

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 105
---
 sell life insurance
policies or interests in life insurance policies at attractive prices, if at all. The ability to sell life insurance policies may be
made even more difficult due to the nature in which the policies were originated, especially with respect to policies where the premiums
were financed by the original owner, creating an increased risk associated with holding such policies. Holders may be limited in their
ability to liquidate assets if they need to do so in order to raise funds to pay premiums, or otherwise.

Life
settlements, and therefore our common stock, are highly speculative and may lose all of their value.

Life
settlements are highly speculative investments. With respect to life insurance policies, it is not possible to determine in advance either
the exact time that a life insurance policy will reach maturity (i.e., at the death of the insured) or the profit, loss or return on
an investment in a life insurance policy. The longer the period between the purchase of a life settlement and the payout on the underlying
policy at maturity, the lower return will be because of the cost to maintain the underlying policies.

In
addition, no assurance can be given that any life insurance policy will perform in accordance with projections, and any such life insurance
policy may decline in value. Consequently, there can be no assurance that, to the extent we invest in NIBs, we will realize a positive
return on our investment. These types of investments should be considered to be highly speculative in nature. This, in turn, may directly
affect the amount and timing of funding sought or received by us, which in turn will affect our ability to conduct our business. Thus,
an investment in our Company is suitable only for investors having substantial financial resources, a clear understanding of the risk
factors associated with such investments and the ability to withstand the potential loss of their entire investment.

Risks
Related to the Life Insurance Policies

Policies
may be determined to have been issued without an “insurable interest” and could be void or voidable.

State
insurance laws in the United States require that an insurance policy may only be initially procured by a person that has an insurable
interest in the continuance of the life of the insured. Whether an owner has an insurable interest in the insured is a question of applicable
state law. The general concept is that a person with an insurable interest is a person that has a continuing interest in the insured
remaining alive, whether through the bonds of love and