Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 138

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 138
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 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 term of the stock option and warrant, and the expected volatility of the Company’s
common stock over the period equal to the expected term of the grant. The Company estimates forfeitures at the date of grant and revises
the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

    F-6

Income
Taxes, The Company accounts for income taxes under FASB ASC 740, “Income Taxes”. Deferred income tax assets and liabilities
are determined based upon differences between the financial reporting and tax basis of assets and liabilities and are measured using