Company Summary: Sundance Strategies, Inc.

Overview

• Type: Publicly traded company (OTCQB symbol: SUND)
• Location: Principal offices at 4626 North 300 West, Suite 365, Provo, Utah 84604
• Incorporation: Nevada (Company), Utah (Subsidiary)
• Number of Shares Outstanding: 43,063,441 (as of June 30, 2025)
• Market Value of Non-Affiliate Shares: approximately $15,031,021 (as of September 30, 2024)
• Employees: 1 full-time employee (Randall F. Pearson as of March 31, 2025)

Business Focus and Activities

• Historical Business Model:
  • Purchased or acquired life insurance policies and residual interests such as Net Insurance Benefits (NIBs).
  • NIBs provided the right to receive a portion of proceeds from life insurance settlements on third-party-held policies.
  • Did not hold life insurance policies directly but held contractual rights to the cash flows from these policies.
  • Focused on the secondary market of life settlements, trading interests tied to life insurance policies.
• Current Business Activities:
  • Transitioned to providing professional advisory services to:
    • Specialty structured finance groups
    • Bond issuers
    • Life settlement aggregators
  • Services include:
    • Advising on portfolio selection and acquisition of life insurance policies
    • Applying proprietary analytics to structure bonds secured by life insurance assets
    • Assisting in assembling and structuring life insurance portfolios, including debt optimization and cash management
  • Goal: Grow the professional services arm and asset base to generate long-term shareholder value and pay dividends.

Industry and Market

• Life Settlements Market:

  • Facilitated owners aged 65+ selling policies due to no longer needing or affording coverage, or seeking liquidity.
  • Market peaked in 2007-2008 at about $12 billion of face value settled annually.
  • Industry participants included insurance companies, private investors, hedge funds, and portfolio aggregators.
  • Challenges include:
    • Uncertainty in cash flow predictions due to life expectancy variances
    • Market liquidity issues
    • Competition from larger entities with greater resources (e.g., Berkshire Hathaway)
    • Regulatory environment including potential classification of interests as securities

• Business Risks:

  • Significant reliance on third-party life expectancy reports
  • Fluctuations in the value of life insurance policies
  • Regulatory and legal risks related to insurable interest and potential litigation
  • Limited concentration of assets and insured parties increases vulnerability
  • Illiquidity in secondary markets

Financial Highlights

• Revenue: No revenue from bond advisory or portfolio consulting services as of FY2025.
• Net Loss:
  • FY2025: $1,603,382
  • FY2024: $1,834,991
• Expenses:
  • General & Administrative (FY2025): $604,167 (up from FY2024: $531,406)
  • Notable costs in professional fees, payroll, and rent.
• Interest & Financing Expenses:
  • FY2025: $349,016
  • FY2024: $410,856
• Other Income/Expenses:
  • Losses on extinguishment of debt (FY2025): $435,199 (down from FY2024: $1,047,729)
  • No gains from debt settlement in FY2025, but had $290,000 in FY2024.
• Liquidity:
  • Cash on hand: $168,648 (as of March 31, 2025)
  • Available debt capacity:
    • ~$4.27 million under notes payable and related party lines
    • $3 million under convertible debentures
  • Accounts payable: $446,885
  • Outstanding debt obligations total approximately $5.35 million (including accrued interest).

Ownership and Stockholder Info

• Major beneficial owners:
  • Kraig T. Higginson (30.5%)
  • Radiant Life, LLC (12.3%)
  • Zoe, LLC (11.8%)
  • Other insiders (total group ownership approx. 43%)
• Management and Directors:
  • Current management includes Randall F. Pearson (President, CFO, and Director) and three other directors, including Kraig Higginson, Glenn S. Dickman, and Stephen Quesenberry.
• Stockholders beneficially owning more than 10%: Includes related party entities and individuals, with some sharing ownership structures.

Key Points

• Focused originally on investing in life insurance transactions, now primarily offering advisory services.
• No current revenue streams from advisory operations.
• Significant debt and negative equity position.
• Operating losses continue, with substantial reliance on related-party debt and capital raising.
• Limited staff (single full-time employee), with reliance on external consultants.
• Company is considered a "smaller reporting company" and emerging growth entity.

Note: The company is in a transition phase, moving from direct life insurance interests to providing industry advisory services, with ongoing financial challenges.