Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 2

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 2
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 the year ended March 31, 2021, we began working closely with bond placement agents and aggregators to establish various
aspects of a proprietary, investment grade bond offering. In this arrangement, we participate as the sole originator in the role of structuring
and advising on the structure of the proprietary bond instrument. Included in the role of structuring financial assets, we use proprietary
analytics to establish the makeup of the rated instrument, including but not limited to life settlement assets (life insurance policies)
and managed cash, and implement a process of selective assembly of the underlying assets and cash management that will meet the policy
requirements and analytics. We provide current and ongoing resources for all analytics, as well as advisement support for the investment
and non-investment grade ratings for the managed asset pool and the managed cash accounts. In our advisory role, we are reimbursed for
all expenses associated with the structuring and preparation of any bond offering, will receive an advisory payment upon the closing
of any bond offering, and then will hold residual rights on the balance of assets once the bond is retired.

Life
Settlements Market

There
are a number of reasons a policy owner may choose to sell his or her life insurance policy. The policy owner may no longer need or want
his or her policy, he or she may wish to purchase a different kind of insurance policy, premium payments may no longer be affordable
or the policy owner may need cash to fund healthcare or other expenses. In particular, policy holders 65 years of age and older and their
families are faced with a variety of challenges as they seek to address their post-retirement financial needs and selling one’s
life insurance policy may provide a unique and valuable financial solution to such challenges. From the early 2000s through 2008, the
market for newly originated life settlements grew from virtually no activity to a peak of an estimated $12 billion of face value of U.S.
life settlement policies settled annually in 2007 and 2008. Economic factors slowed the growth in 2009, when an estimated $8 billion
of face value of U.S. life insurance was settled and growth has continued to decline since that time. Participants in the secondary life
settlement market have included major insurance companies which have purchased available pools of policies for their own investment,
portfolio aggregators, private equity funds, and independent third-party investors.

Predictability
of Future Cash Flows. Predictability of future cash flows is one of the biggest challenges