Company: SUND
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023411
Chunk: 18

Company: Sundance Strategies, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 and 2024, the Company recorded net loss before income taxes of $607,994, and $436,429, respectively,
and had no income tax expense or benefit as a result of a full valuation allowance on the net deferred tax asset. The relative increase
in net loss before income taxes is due to the loss on extinguishment of debt.

Liquidity
and Capital Resources

Since
our inception our operations have been primarily financed through sales of equity instruments, debt financing, lines of credit and notes
payable from related parties and the issuance of convertible debentures. As of June 30, 2025, we had $55,266 of cash, compared to $168,648
as of March 31, 2025. As of June 30, 2025, the Company had access to draw an additional $4,265,942 on the notes payable, related party
and $3,000,000 on the Convertible Debenture Agreement. Our monthly expenses are anticipated to be approximately $45,000, which includes
salaries of our employee, policy servicing expenses, consulting agreements and contract labor, general and administrative expenses, estimated
legal and accounting expenses. Outstanding Accounts Payable as of June 30, 2025, totaled $448,988, and other accrued liabilities totaled
$2,144,271. We believe that our availability under our existing lines of credit with related parties, our existing capital resources,
together with the issuance of additional notes payable and convertible debentures will be sufficient to fund our operating working capital
requirements for at least the next 12 months, or through August 2026.

14

Debt

At
June 30, 2025, we owed $5,443,352, including accrued interest, for debt obligations. We owed $3,290,058 in principal pursuant to notes
payable and lines-of-credits from related parties, $300,000 in other notes payable, and had fully paid off the principal owing on the
8% Convertible Debenture. As of June 30, 2025, a line-of-credit to a third party had a balance of $1,159,508 due on November 30, 2026,
or when the Company completes a successful equity raise, at which time principal and interest is due in full. A line-of-credit to a second
third party had a principal balance of $1,304,550 and is currently extended due