Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 14

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 14
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 and establish relationships with clients. Identifying and acquiring clients
in this industry will require us to compete with other larger, more experienced, and better capitalized service providers and we may
not be successful in developing such client relationships. If we are not able to successful market our advisory business, our financial
condition and results of operations will be materially adversely affected.

Historically,
99% of our total assets are interests in life settlement policies, resulting in a lack of diversification of assets and concentration
in assets that are subject to significant fluctuations in value.

Although
we currently have no ownership in life settlement policies, generally speaking, our previous investment in NIBs was usually the primary
asset on our balance sheet. Life settlement products like NIBs are subject to substantial fluctuations in value, primarily based upon
matters that are not within our control, such as the current health and life expectancy of the insureds underlying our NIBs, the solvency
of the Holders of the policies and the Holders’ Lender, the Holders’ financing costs and ability to acquire policies and
the solvency of the insurance companies. Each of these factors can result in significant fluctuations of the value of the life insurance
policies underlying the NIBs, thereby affecting potential future interests.

Limitations
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;