Company: SUND
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023411
Chunk: 12

Company: Sundance Strategies, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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. $300,000 of the $400,000 liability is due to a related party.

On
August 15, 2023, the Company issued a private placement memorandum offering to raise up to $1,500,000 through the issuance of restricted
shares of the Company’s common stock (par value $0.001) to qualified investors. Between September 20, 2023 and July 10, 2024, the
Company received subscription agreements from ten separate investors, for 1,655,000 shares of common stock in conjunction with a purchase
of 3,310,000 warrants to purchase shares of common stock. The proceeds from these transactions were $1,655,000.

Warrants
to Purchase Common Stock

The
Company’s related party lenders consist of: Kraig Higginson, the Chairman of the Board of Directors and a stockholder, Radiant
Life, LLC, and Mr. Dickman, a board member and stockholder. These holders of the related party unsecured promissory notes hold agreements
that provide each related party with common stock warrants upon the lender’s extension of a maturity due date or upon the loaning
of additional monies. The number of warrants issued for an extension is based on the following formula: 10,000 warrants per month the
due date is extended plus 1 warrant for every $2 of the principal balance outstanding (not including interest) at the time of the extension
(rounded to the nearest whole warrant), for extensions occurring after March 31, 2024, 20,000 warrants per month the due date is extended
plus 1 warrant for every $1 of the principal balance outstanding (not including interest) at the time of the extension (rounded to the
nearest whole warrant). Upon the loaning of additional monies, the lender will also require 2 warrants for each dollar loaned. All warrants
issued under these terms vested immediately upon issuance, have an exercise price approximately equivalent to the fair value of the Company’s
common stock on the date of grant, and expire 5 years from the date of issuance.

During
the three months ended June 30, 2025, the Company issued Radiant Life, LLC 1,399,508
warrants in conjunction with an extension of the maturity dates
of notes payable. The exercise price of these warrants was $0.41.
The value of the warrants on the date of grant, as calculated by the Black-Scholes-M