Sundance Strategies, Inc.

What they do

The company historically purchased or acquired life insurance policies and residual interests such as net insurance benefits (NIBs), which entitled it to a share of settlement proceeds from third-party-held policy portfolios after servicing, financing and insurance costs were paid. It currently holds no NIBs or life insurance policies. Since late fiscal 2021 it has been developing a professional services offering, advising specialty structured finance groups, bond issuers, bond investors and life settlement aggregators on portfolio selection and structuring bonds backed by life insurance assets.

Revenue drivers

• Bond advisory / portfolio consulting — The company would be reimbursed for structuring expenses, earn an advisory fee at closing, and retain residual rights to certain underlying assets post-maturity. No revenue was earned from these services in the fiscal year ended March 31, 2026, and no definitive engagements were in place as of the 10-K date.
• Legacy NIB residuals — Historically, NIBs gave the company the right to receive settlement proceeds from a third-party policy portfolio after policy expenses were paid. The company states it no longer directly holds NIBs or life insurance policies.
• Structuring/placement support — The company works with bond placement agents and aggregators on a proprietary investment-grade bond offering and acts as sole originator advising on the structure. Costs incurred pursuing financing alternatives were $15,000 in fiscal 2026, versus $215,000 in fiscal 2025.

Recent performance

For fiscal year 2026, net loss before income taxes was $1,813,964, compared with $1,603,382 in fiscal 2025, with a $0 income tax provision in both years. General and administrative expenses fell to $436,110 from $604,167, mainly on lower professional fees, but losses on extinguishment of related-party debt rose to $989,968 from $435,199 and interest expense rose to $372,847 from $349,016. Net cash used in operating activities was $390,302 versus $916,212 a year earlier, and financing activities provided $253,689 versus $755,000. At March 31, 2026, cash was $32,035 (down from $168,648), and at June 30, 2026, total assets were $22,332 against total liabilities of $7.3M, producing negative shareholder equity of $7.3M.

Strategy

Management is shifting from holding life-settlement assets to a fee-based advisory model serving specialty structured finance groups, bond issuers and life settlement aggregators. It intends to advise on portfolio construction, apply proprietary analytics to structure bond offerings secured by life insurance assets and managed cash, and support clients in asset assembly, cash management and investment- and non-investment-grade credit ratings. In exchange it expects reimbursement of structuring expenses, an advisory fee at closing and residual rights to certain underlying assets. The stated goal is to grow the professional services business and asset base, with an eventual ability to pay dividends to shareholders.

Risks

• No advisory revenue yet — The company earned no revenue from bond advisory or portfolio consulting in fiscal 2026 and had no definitive engagements in place as of the 10-K.
• Liquidity and going-concern pressure — Cash was $32,035 at March 31, 2026, and total liabilities of $7.3M exceeded total assets of $22,332 at June 30, 2026, leaving negative shareholder equity of $7.3M.
• Debt default and dilution risk — The company flagged that it may default on debt arrangements, which could accelerate repayment or limit access to future financing, and it has relied on related-party notes and convertible debentures.
• Dependence on outside consultants and counterparties — Management states it relies on outside consultants and industry parties to make business decisions, and potential conflicts of interest involving those parties could hurt execution of the business model.

Outlook

Management says its monthly expenses average approximately $37,000 and that existing related-party lines of credit (with $4,257,253 available as of March 31, 2026), a $55,000 available promissory note and a $3,000,000 convertible debenture facility should be sufficient for at least the 12 months following the financial statements. It continues to pursue bond advisory and portfolio consulting opportunities but has no definitive engagements. Total debt obligations were $5,978,126 including accrued interest at March 31, 2026, with certain related-party notes extended to May 31, 2027 and May 31, 2028.