Company: SUND
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006815
Chunk: 14

Company: Sundance Strategies, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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400,000 liability is due to a related party.

On
August 15, 2023, the Company issued a private placement memorandum offering to raise up to $1,500,000 through the issuance of restricted
shares of the Company’s common stock (par value $0.001) to qualified investors. On September 20, 2023, the Company received subscription
agreements from an investor, for 200,000 shares of common stock in conjunction with a purchase of 400,000 warrants to purchase shares
of common stock. The proceeds from this transaction were $400,000. On October 4, 2023, the Company received subscription agreements from
three separate investors, for 650,000 shares of common stock in conjunction with a purchase of 1,300,000 warrants to purchase shares
of common stock. The proceeds from this transaction were $650,000.

Between
June 18, 2024, and July 10, 2024, the Company received subscription agreements from seven separate investors, for 805,000 shares of common
stock in conjunction with a purchase of 1,610,000 warrants to purchase shares of common stock. The proceeds from these transactions were
$805,000.

Warrants
to Purchase Common Stock

The
Company’s related party lenders consist of: Kraig Higginson, the Chairman of the Board of Directors and a stockholder, Radiant
Life, LLC, and Mr. Dickman, a board member and stockholder. These holders of the related party unsecured promissory notes hold agreements
that provide each related party with common stock warrants upon the lender’s extension of a maturity due date or upon the loaning
of additional monies. The number of warrants issued for an extension is based on the following formula: 10,000 warrants per month the
due date is extended plus 1 warrant for every $2 of the principal balance outstanding (not including interest) at the time of the extension
(rounded to the nearest whole warrant). Upon the loaning of additional monies, the lender will also require 2 warrants for each dollar
loaned. All warrants issued under these terms vested immediately upon issuance, have an exercise price approximately equivalent to the
fair value of the Company’s common stock on the date of grant, and expire 5 years from the date of issuance.

During
the nine months ended December 31, 2024, the Company issued no new warrants to the Chairman of the