Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 98

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 98
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 model is successful.

We
are required to file annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports respecting certain events on Form
8-K, along with proxy or information statements for any meeting of stockholders or written consents of stockholders holding sufficient
securities to effect corporate actions. Most of these reports require generating and compiling significant accounting, legal and financial
information, including audited year-end financial statements and reviewed quarterly financial statements. The preparation of these reports,
their review by management and professionals and the auditing and review process of such financial statements consumes significant resources,
in terms of management time and focus, as well as expenses related to legal, accounting and audit fees. It is difficult to quantify these
costs, but we believe them to be not less than between approximately $175,000 and $250,000 annually. As our business grows, these costs
can only increase.

We
are new to the bond, life settlement, and financial advisory industry and may not be able to successfully compete in this industry.

We
only recently began providing advisory services relating to bond issuances and life settlement transactions. In order for these operations
to be successful, we will need to develop sufficient expertise and establish relationships with clients. Identifying and acquiring clients
in this industry will require us to compete with other larger, more experienced, and better capitalized service providers and we may
not be successful in developing such client relationships. If we are not able to successful market our advisory business, our financial
condition and results of operations will be materially adversely affected.

Historically,
99% of our total assets are interests in life settlement policies, resulting in a lack of diversification of assets and concentration
in assets that are subject to significant fluctuations in value.

Although
we currently have no ownership in life settlement policies, generally speaking, our previous investment in NIBs was usually the primary
asset on our balance sheet. Life settlement products like NIBs are subject to substantial fluctuations in value, primarily based upon
matters that are not within our control, such as the current health and life expectancy of the insureds underlying our NIBs, the solvency
of the Holders of the policies and the Holders’ Lender, the Holders’ financing costs and ability to acquire policies and
the solvency of the insurance companies. Each of these factors can result in significant fluctuations of the value of the life insurance
policies underlying the NIBs, thereby affecting potential future interests.

Limit