Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 19

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 19
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. Differences between our expectations and
actuarial models, and actual mortality results, could have a materially adverse effect on our operating results and cash flow. In such
a case, we would face liquidity problems, including difficulties acquiring new NIBs and other life settlement products. Continued or
material failures to meet our expected results could decrease the attractiveness of our securities in the eyes of potential investors,
thereby making it even more difficult to obtain capital needed to acquire additional NIBs and obtain desired diversification and expansion
of the underlying insureds.

The
limited number of sellers of life settlement products in the secondary market may limit the ability to negotiate favorable prices in
the acquisition of such life settlement interests.

Because
we are not currently licensed to purchase life insurance policies directly from the insureds, we rely on re-sellers like Del Mar, PCH
and HFII for such products.

Unless
other sources become available, the ability to purchase the life settlement products desired may be limited. In addition, the limited
number of sellers could limit the ability to negotiate favorable prices to purchase life settlement products, which could reduce profitability.
Furthermore, recent declines in the secondary market for life settlements have limited the availability of pools of life insurance policies,
resulting in increased price competition.

We
do not track concentrations of pre-existing medical conditions of insureds in our guidelines for purchasing life settlement products.

Concentrations
of pre-existing medical conditions in insureds could affect the valuation of the portfolios that such policies underlie. We do not track
concentrations of pre-existing medical conditions in purchases of life settlement products. Thus, the valuation of such interests and
our estimates of cash flows therefrom could be inaccurate.

If
life settlement products are determined to be “securities,” Holders may be required to register as an investment company
under the Investment Company Act, which would substantially increase SEC reporting costs and oversight of a Holder’s business operations.

On
July 22, 2010, the SEC released a Staff Report by the Life Settlements Task Force that recommended the SEC consider recommending to Congress
that it amend the definition of “security” under the federal securities laws to include life settlement policies as securities.
One U.S. Congressman has sought to introduce a bill to make such amendment. While that attempt did not result in any action, there can
be no assurance that such a bill will not be passed at some future date. If federal securities laws are indeed amended to include such
policies within the definition of “