Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 102

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 102
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to sell a policy in a higher interest rate environment, the market price for the policies may be less than the price at which such policy
was acquired. Furthermore, Holders are generally obligated under the senior loans financing the purchase of life insurance policies to
maintain certain loan to value ratios. If the present value of the life insurance policies decreases significantly, the Holder may be
in breach of such obligations, which could impair the Holder’s ability to obtain financing necessary to service existing life insurance
policies or acquire new policies. As a result, any life insurance portfolios may decline in value or become worthless.

Changes
to foreign banking laws and regulations or decreased lending capacity for life settlements could have a negative impact on the ability
of Holders to obtain loans with respect to purchases of life settlements.

Our
current business model relies on the availability to the Holders of senior loans from the Holders’ Lender or any other lender.
In the event of adverse regulatory changes or reduced capacity for life settlement lending, the Holders could experience the same liquidity
issues that have plagued other market participants. Changes to the Holders’ Lender’s loan to value requirements, compliance
with regulatory large exposure limits and changes to regulatory large exposure limits could also result in liquidity issues for the Holders
and corresponding liquidity issues for us. As mentioned above, changes in life expectancies could cause decreases in policy values, which
could result in loan to value violations and violations of large exposure limits.

Holders
may be required to obtain MRI coverage as a condition of our business model, which, if unavailable, could potentially increase our risk
of failure.

The
MRI is a relatively new product and there are no guarantees that the MRI provider will be able to meet the Holders’ coverage needs.
In addition, it is our understanding that there is only one MRI provider. The MRI provider has refused to provide future coverage to
the Holders. Without the MRI coverage, the Holders have limited options when the senior loans mature. The Holders’ Lender has demanded
repayment of all outstanding amounts under the senior loans.

13

The
lapse of life insurance policies will result in the entire loss of our interest in the death benefits from those particular policies.

The
Holders are required to make premium payments on the life insurance policies in order to keep such policies in force. These payments
generally will be made from amounts available to the Holders pursuant to the senior loans, death benefits, and MRI payments, if available.

Actual
results