Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 99

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 99
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to the financial model we use may result in inaccurate or incomplete projections of future cash flow from the insurance policies.

The
financial model we utilized to project future cash flows from potential life settlement assets was chosen because of its straight-forward
approach in calculating expected cash flows. We believe the methodology used in the model is particularly desirable because it has parameters
that are easily verifiable and does not require complex calculations or mathematical simulations to confirm results. However, with every
financial model, there are limitations. Most require assumptions to be made. Our model is no exception. Our assumptions may prove to
be incorrect and, therefore, our model may be incorrect. Our model relies on actuarial life-expectancy reports prepared by third parties
from which the estimated date of maturity is calculated. It is assumed that these reports were accurately made and properly reflect real
life expectancies. Our model also requires other inputs including but not limited to the following: (i) a 15-year period for projections;
(ii) a distinct number of lives; (iii) a distinct number of policies; (iv) life expectancy tables and projections; (v) premiums; (vi)
senior lending fees; (vii) MRI fees; and (viii) insurance, servicing and custodial fees. While this method of modeling cash flows is
helpful in setting general expectations of potential returns that might be produced from a given portfolio, there is no way such results
can be guaranteed. In addition to our assumptions, there are many factors that may affect the selection of inputs for the model.

11

The
individuals insured by the life insurance policies may live longer than their actuarial life expectancies and thereby, cash flows from
life insurance policies may be delayed.

The
actual date of death of an insured with respect to a life insurance policy is uncertain. Life expectancies are projected from the medical
records of the insured and actuarial data based upon the historical experience of similarly situated persons. However, it is impossible
to predict with certainty any insured’s life expectancy. We have and will continue to base our longevity assumptions on the reports
of third-party life expectancy providers, among whom there is no uniformity of assumptions, approach or procedure. There are also significant
disputes among third-party life expectancy providers regarding the mortality rate relating to certain disease states and the efficacy
of certain treatments. Some factors that may affect the accuracy of a life expectancy report or other calculation of the estimated length
of an individual’s life