Company: SUND
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006815
Chunk: 35

Company: Sundance Strategies, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 35
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 inputs that are supported by little or no market activity. Level 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 nine months ended December 31, 2024, and 2023.

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, 2025 (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 December 31, 2024, accrued interest on the note totaled