Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 54

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 54
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14,043,573 shares of common stock, respectively.

Stock-Based
Compensation and Financing Costs, The Company measures stock-based compensation expense related to employee stock-based awards and
stock-based expense associated with certain financing costs on the estimated fair value of the awards as determined on the date of grant
and is recognized as expense over the remaining requisite service period for options and vesting period for warrants. The Company utilizes
the Black-Scholes pricing model to estimate the fair value of stock options issued as compensation and warrants issued as financing costs.
The Black-Scholes model requires the input of highly subjective and complex assumptions, including the estimated fair value of the Company’s
common stock on the date of grant, the expected term of the stock option and warrant, and the expected volatility of the Company’s
common stock over the period equal to the expected term of the grant. The Company estimates forfeitures at the date of grant and revises
the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

    F-6

Income
Taxes, The Company accounts for income taxes under FASB ASC 740, “Income Taxes”. Deferred income tax assets and liabilities
are determined based upon differences between the financial reporting and tax basis of assets and liabilities and are measured using
the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Accounting standards require the
consideration of a valuation allowance for deferred tax assets if it is “more likely than not” that some component or all
of the benefits of deferred tax assets will not be realized.

The
tax effects from an uncertain tax position can be recognized in the financial statements only if the position is more likely than not
of being sustained if the position were to be challenged by a taxing authority. The Company has examined the tax positions taken in its
tax returns and determined that there are no uncertain tax positions. As a result, the Company has recorded no uncertain tax liabilities
in its balance sheet. Interest and penalties for uncertain positions, when applicable, would be recognized as a component of income tax
expense.

The
Company files United States Federal and State income tax returns. The income tax returns of the Company are subject to examination by
taxing authorities for three to five years from the date they are filed. The Company has tax returns subject to examination for 2018-2023.

Principles
of Consolidation, The consolidated financial statements include the accounts of the Company and its subsidiary. The subsidiary is