Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 562

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 7
Chunk 562
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the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

    F-6

Income
Taxes, The Company accounts for income taxes under FASB ASC 740, “Income Taxes”. Deferred income tax assets and liabilities
are determined based upon differences between the financial reporting and tax basis of assets and liabilities and are measured using
the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Accounting standards require the
consideration of a valuation allowance for deferred tax assets if it is “more likely than not” that some component or all
of the benefits of deferred tax assets will not be realized.

The
tax effects from an uncertain tax position can be recognized in the financial statements only if the position is more likely than not
of being sustained if the position were to be challenged by a taxing authority. The Company has examined the tax positions taken in its
tax returns and determined that there are no uncertain tax positions. As a result, the Company has recorded no uncertain tax liabilities
in its balance sheet. Interest and penalties for uncertain positions, when applicable, would be recognized as a component of income tax
expense.

The
Company files United States Federal and State income tax returns. The income tax returns of the Company are subject to examination by
taxing authorities for three to five years from the date they are filed. The Company has tax returns subject to examination for 2018-2023.

Principles
of Consolidation, The consolidated financial statements include the accounts of the Company and its subsidiary. The subsidiary is
wholly owned. All intercompany accounts and transactions are eliminated in consolidation.

Fair
Value, As defined by ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”), fair value is
the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. ASC 820 also requires the consideration of differing levels of inputs in the determination of fair values.

Those
levels of input are summarized as follows:

●
Level 1: Quoted prices in active markets for identical assets and liabilities.

●
Level 2: Observable inputs other than Level 1 quoted prices, such as quoted prices for similar instruments in active markets, quoted
prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant
assumptions are observable in the market.

●
Level 3: Unobservable inputs