Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 290

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 2
Chunk 290
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 estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.

Stock
Based Compensation and Financing Costs, we measure stock-based compensation expense related to employee stock-based awards and stock
based expense associated with certain financing costs based 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 or vesting period of the warrant. We utilize 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 our common stock on the
date of grant, the expected term of the stock option and warrant, and the expected volatility of our common stock over the period equal
to the expected term of the grant or warrant. Uncontrollable uncertainties, such as fluctuation in interest rates, can have an effect
on our Black-Scholes estimate calculations. Such fluctuations and other unforeseen changes in inputs could have a material impact on
the general and administrative expenses within our financial statements. We estimate forfeitures at the date of grant and revise the
estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

Fair
Value, As defined by ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”), fair value is
the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date. ASC 820 also requires the consideration of differing levels of inputs in the determination of fair values.

Those
levels of input are summarized as follows:

●
Level 1: Quoted prices in active markets for identical assets and liabilities.

●
Level 2: Observable inputs other than Level 1 quoted prices, such as quoted prices for similar instruments in active markets, quoted
prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant
assumptions are observable in the market.

●
Level 3: Unobservable inputs that are supported by little or no market activity. Level 3 assets and liabilities include financial instruments
whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques as well as instruments for
which the