Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 20

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 20
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security,” or if courts with relevant jurisdiction interpret existing securities laws
to that effect, our ability to operate our business under our current business model may be constrained by additional regulatory requirements
under the Securities Act, the Exchange Act and the Investment Company Act.

14

Such
requirements could, among other things, limit our or Holder’s ability to change investment policies without stockholder approval,
prohibit our acquisition of assets from an affiliate without SEC approval, limit leveraging of our assets to one-third of our total asset
value, require accounting for all derivatives as a leverage of assets to the extent that they create an obligation on our part to pay
out assets to a counterparty ahead of our stockholders and generally require 40% of our directors to be independent directors. In addition,
intermediaries used to purchase life settlement products may be required to register as broker-dealers or registered investment advisers
and would otherwise be subject to oversight by the SEC and the Financial Industry Regulatory Authority, which require adherence to numerous
rules and regulations. Such regulations could substantially increase our compliance and reporting costs, which would negatively affect
profitability.

There
is poor liquidity in the secondary market for life insurance and life settlements.

The
secondary market for life insurance policies and life settlements is relatively illiquid, and it is often difficult to sell life insurance
policies or interests in life insurance policies at attractive prices, if at all. The ability to sell life insurance policies may be
made even more difficult due to the nature in which the policies were originated, especially with respect to policies where the premiums
were financed by the original owner, creating an increased risk associated with holding such policies. Holders may be limited in their
ability to liquidate assets if they need to do so in order to raise funds to pay premiums, or otherwise.

Life
settlements, and therefore our common stock, are highly speculative and may lose all of their value.

Life
settlements are highly speculative investments. With respect to life insurance policies, it is not possible to determine in advance either
the exact time that a life insurance policy will reach maturity (i.e., at the death of the insured) or the profit, loss or return on
an investment in a life insurance policy. The longer the period between the purchase of a life settlement and the payout on the underlying
policy at maturity, the lower return will be because of the cost to maintain the underlying policies.

In
addition, no assurance can be given that any life insurance policy will perform in accordance with projections