Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 92

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 92
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 to the bond, life settlement, and financial advisory industry and may not be able to successfully compete in this industry.

    ●
    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.

    ●
    Limitations
    to the financial model we use may result in inaccurate or incomplete projections of future cash flow from the insurance policies.

    ●
    The
    individuals insured by the life insurance policies may live longer than their actuarial life expectancies and thereby, cash flows
    from life insurance policies may be delayed.

7

    ●
    Having
    relatively few insureds could cause the overall performance to be unduly influenced by a relatively small number of underlying policies
    that perform better or worse than expected.

    ●
    Increased
    general market interest rates could increase the carrying costs of the life insurance policies and reduce the related cash flows.

    ●
    Changes
    to foreign banking laws and regulations or decreased lending capacity for life settlements could have a negative impact on ability
    of Holders to obtain loans with respect to purchases of life settlements.

    ●
    Holders
    may be required to obtain MRI coverage as a condition of our business model, which, if unavailable, could potentially increase our
    risk of failure.

    ●
    The
    lapse of life insurance policies will result in the entire loss of our interest in the death benefits from those particular policies.

    ●
    Actual
    results from life settlement products may not match expected results, which could reduce returns and also adversely affect the ability
    to service and grow a portfolio for actuarial stability.

    ●
    The
    limited number of sellers of life settlement products in the secondary market may limit the ability to negotiate favorable prices
    in the acquisition of such life settlement interests.

    ●
    We
    do not track concentrations of pre-existing medical conditions of insureds in our guidelines for purchasing life settlement products.

    ●
    If
    life settlement products are determined to be “securities,” Holders may be required to register as an investment company
    under the Investment Company Act, which would substantially increase SEC reporting costs and oversight of a Holder’s business
    operations.

    ●
    There
    is poor liquidity in the secondary market for life insurance and life settlements.

Risks
Related to the Life Insurance Policies