Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 246

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1C
Chunk 246
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 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.

(2)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Estimates,
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America
requires management to make 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.

Cash
and Cash Equivalents, For purposes of reporting cash flows, the Company considers all highly-liquid debt instruments purchased with
an original maturity of three months or less to be cash equivalents.

Basic
and Diluted Net Loss Per Common Share, Basic net loss per common share is computed by dividing net loss by the weighted average number
of common shares outstanding during the periods presented using the treasury stock method. Diluted net loss per common share is computed
by including common shares that may be issued subject to existing rights with dilutive potential, when applicable. Potential dilutive
common stock equivalents are primarily comprised of potential dilutive shares resulting from convertible debt agreements and common stock
warrants. Potentially dilutive shares resulting from convertible debt agreements are evaluated using the if-converted method. Potentially
dilutive securities are not included in the calculation of diluted net loss per share for the years ended March 31, 2025, and 2024, because
to do so would be anti-dilutive. Potentially dilutive securities outstanding as of March 31, 2025, and 2024, include warrants convertible
into 14,496,123 and 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