Company: SUND
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001641172-25-017143
Chunk: 41

Company: Sundance Strategies, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 41
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 primarily attributable to increased costs incurred in connection with bond
structuring and placement efforts.

Income
Taxes

During
the years ended March 31, 2025, and 2024, the Company recorded a net loss before income taxes of $1,603,382 and $1,834,991, respectively.
The reduction in net loss is largely due to decrease in losses from extinguishing debt, partially offset by the lack of gain on settlement
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 March 31, 2025, we had $168,648 of cash, compared to
$329,860 as of March 31, 2024. As of March 31, 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 average approximately $50,000, which includes the
salary of our employee, policy servicing expenses, consulting agreements and contract labor, general and administrative expenses, and
estimated legal and accounting expenses. Outstanding Accounts Payable as of March 31, 2025, totaled $446,885, and other accrued liabilities
totaled $880,073. We believe that the available capacity under our existing related party lines of credit, together with our current
capital resources, will be sufficient to fund our operating and working capital needs for at least the 12-month period following the
issuance of these financial statements.

26

2025
Cash Flows Compared to 2024 Cash Flows

For
the year ended March 31, 2025, we recorded net cash used in operating activities of $916,212, compared to $666,643 during the prior year.
The increase in cash used is primarily attributable to a lower non-cash loss on extinguishment of debt in the year ended March 31, 2025,
which resulted in a smaller adjustment to reconcile net loss to operating cash. This was partially offset by the absence of a non-cash
gain on the settlement of liabilities that had negatively impacted operating cash flow in the year ended March 31, 2024.

For
the years ended March 31, 2025, and 2024