Company: SUND
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023411
Chunk: 32

Company: Sundance Strategies, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 32
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3 assets and liabilities include financial instruments
    whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques as well as instruments
    for which the determination of fair value requires significant management judgment or estimation.

The
level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that
is significant to the fair value measurement in its entirety.

The
Company did not have any transfers of assets and liabilities between Levels 1, 2 and 3 of the fair value measurement hierarchy during
the three months ended June 30, 2025, and 2024.

The
Company issues warrants from time to time (see Note 7), which fair value is calculated using Level 3 inputs.

Other
Financial Instruments

The
Company’s recorded values of cash and cash equivalents, prepaid expenses and other assets, accounts payable and accrued liabilities
approximate their fair values based on their short-term nature. The recorded values of the notes payable and convertible debenture approximate
the fair values as the interest rate approximates market interest rates.

(4)
NOTES PAYABLE

On
April 6, 2021, the Company borrowed $300,000 under an unsecured promissory note with Satco International, Ltd. This promissory note bears
interest at a rate of 8% annually and was due April 6, 2023. In conjunction with this note, the Company issued warrants for 1,000,000
shares of common stock, exercisable at $1.00 per share and expiring in 3 years from the date of the promissory note, which are now expired.
Since the original note date, the unsecured promissory note with Satco International, Ltd. has been amended through a series of amendments
to extend the due date from April 6, 2023, to August 31, 2026 (see note 8), or at the immediate time when alternative financing or other
proceeds are received. These extensions have no bearing on the warrants that were issued in conjunction with the original promissory
note. This note is separate from the 8% convertible debenture agreement that the Company has in place with Satco International, Ltd.
(see Note 6). As of June 30, 2025, accrued interest on the note totaled $101,655.

(5)
NOTES PAYABLE, RELATED PARTY

As
of June 30