0000912282-16-000555.txt : 20160209 0000912282-16-000555.hdr.sgml : 20160209 20160209142853 ACCESSION NUMBER: 0000912282-16-000555 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 41 CONFORMED PERIOD OF REPORT: 20151231 FILED AS OF DATE: 20160209 DATE AS OF CHANGE: 20160209 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Sundance Strategies, Inc. CENTRAL INDEX KEY: 0001171838 STANDARD INDUSTRIAL CLASSIFICATION: INSURANCE AGENTS BROKERS & SERVICES [6411] IRS NUMBER: 880515333 STATE OF INCORPORATION: NV FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-50547 FILM NUMBER: 161398814 BUSINESS ADDRESS: STREET 1: 4626 NORTH 300 WEST, SUITE 365 CITY: PROVO STATE: UT ZIP: 84604 BUSINESS PHONE: 801-705-8968 MAIL ADDRESS: STREET 1: 4626 NORTH 300 WEST, SUITE 365 CITY: PROVO STATE: UT ZIP: 84604 FORMER COMPANY: FORMER CONFORMED NAME: JAVA EXPRESS INC DATE OF NAME CHANGE: 20020422 10-Q 1 sundance10-q_12312015.htm sundance10-q_12312015.htm
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-Q

x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
For the Quarterly Period Ended December 31, 2015

o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
For the Transition Period From ________ to _________

Commission File Number 000-50547

SUNDANCE STRATEGIES, INC.
 (Exact name of registrant as specified in its charter)
 
 
Nevada
 
88-0515333
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
     
4626 North 300 West, Suite No. 36, Provo, Utah
 
84604
(Address of principal executive offices)
 
(Zip Code)
 
(801) 705-8968
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes x   No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files.)Yes x   No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
 
 
Large accelerated filer o Accelerated filer x
Non-accelerated filer o     Smaller reporting company o
(Do not check if a smaller reporting company)  
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.) Yes o     No x

As of February [5], 2016 the registrant had [44,315,941] shares of common stock, par value $0.001, issued and outstanding.

 
 

 

SUNDANCE STRATEGIES, INC.
FORM 10-Q
TABLE OF CONTENTS

 
  Page
   
PART I — FINANCIAL INFORMATION
 
   
Item 1. Financial Statements
 
Condensed Consolidated Balance Sheets as of December 31, 2015 (Unaudited) and March 31, 2015
 
Condensed Consolidated Statements of Operations and Other Comprehensive  Income (Loss) (Unaudited) for the three and nine month periods ended December 31, 2015 and 2014
 
Condensed Consolidated Statements of Cash Flows (Unaudited) for the nine month periods ended December 31, 2015 and 2014
 
Notes to Condensed Consolidated Financial Statements (Unaudited)
7 - 13 
     
Item 2.  Management’s Discussion and Analysis of Financial Condition And Results of Operations
14 
   
Item 3.  Quantitative and Qualitative Disclosure about Market Risk
19 
   
Item 4.  Controls and Procedures
19 
   
PART II — OTHER INFORMATION
19 
   
Item 1. Legal Proceedings
19 
   
Item 1A.  Risk Factors
20 
   
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
20 
   
Item 3. Defaults upon Senior Securities 20 
   
Item 4. Mine Safety Disclosures 20 
   
Item 5. Other Information 20 
   
Item 6.  Exhibits
20 
   
Signatures
21 
 
 
 

2
 

 

Item 1.  Financial Statements

The Condensed Consolidated Financial Statements of the Company required to be filed with this Quarterly Report were prepared by management and commence below, together with related notes. In the opinion of management, the Condensed Consolidated Financial Statements fairly present the financial condition of the Company and include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the Company’s Condensed Consolidated Financial Statements. The results from operations for the three and nine month period ended December 31, 2015, are not necessarily indicative of the results that may be expected for the fiscal year ended March 31, 2016. The unaudited Condensed Consolidated Financial Statements should be read in conjunction with the March 31, 2015, Consolidated Financial Statements and footnotes thereto included in the Company’s 10-K Annual Report for the fiscal year ended March 31, 2015, which was filed with the SEC on June 15, 2015, and which is referenced in Part II, Item 6, below.



3
 

 

SUNDANCE STRATEGIES, INC. AND SUBSIDIARY
Condensed Consolidated Balance Sheets
December 31, 2015 and March 31, 2015
(Unaudited)


 
December 31,
 
March 31,
 
 
2015
 
2015
 
         ASSETS
 
             
Current Assets
 
 
 
 
Cash and Cash Equivalents
  $ 74,114     $ 336,370  
Prepaid Expenses
    3,750       1,875  
                 
Total Current Assets
    77,864       338,245  
                 
Other Assets
               
Investment in Net Insurance Benefits
    28,690,516       22,544,635  
Advance for Investment in Net Insurance Benefits
    -       3,596,386  
Notes Receivable
    -       211,000  
Other
    -       16,428  
      -       -  
Total Other Long-term Assets
    28,690,516       26,368,449  
                 
Total Assets
  $ 28,768,380     $ 26,706,694  
                 
         LIABILITIES AND STOCKHOLDERS' EQUITY
 
                 
Current Liabilities
               
Accounts Payable
  $ 279,128     $ 255,361  
Accrued Expenses
    826,665       181,917  
Notes Payable
    -       1,326,876  
Note Payable-Related Party
    -       1,500,000  
Redeemed Common Stock Payable
    750,000       -  
                 
Total Current Liabilities
    1,855,793       3,264,154  
                 
Long-Term Liabilities
               
Note Payable-Related Party
    2,667,000       -  
Convertible Debenture
    700,000       -  
Accrued Expenses
    109,800       -  
                 
Total Long-Term Liabilities
    3,476,800       -  
                 
Total Liabilities
    5,332,593       3,264,154  
                 
Stockholders' Equity
               
Preferred Stock, authorized 10,000,000 shares,
               
par value $0.001; -0- shares issued and outstanding
    -       -  
Common Stock, authorized 500,000,000 shares,
               
par value $0.001; 44,222,191 and 43,185,941 shares issued and outstanding, respectively
    44,222       43,186  
Additional Paid In Capital
    24,260,505       16,316,882  
Additional Paid In Capital- Stock to be Issued
    -       7,540,000  
Accumulated Deficit
    (868,940 )     (457,528 )
                 
Total Stockholders' Equity
    23,435,787       23,442,540  
                 
Total Liabilities and Stockholders' Equity
  $ 28,768,380     $ 26,706,694  
 
The accompanying notes are an integral part of these condensed consolidated financial statements.

4
 

 
SUNDANCE STRATEGIES, INC. AND SUBSIDIARY
Condensed Consolidated Statements of Operations
For the Three and Nine Months Ended December 31, 2015 and 2014
(Unaudited)
 
 
   
Three Months Ended
   
Three Months Ended
   
Nine Months Ended
   
Nine Months Ended
 
   
December 31,
   
December 31,
   
December 31,
   
December 31,
 
   
2015
   
2014
   
2015
   
2014
 
                         
Interest Income on Investment in Net Insurance Benefits
  $ 1,090,031     $ 616,547     $ 2,777,501     $ 1,772,698  
                                 
General and Administrative Expenses
    1,549,676       526,797       3,043,267       1,726,169  
                                 
Income (Loss) from Operations
    (459,645 )     89,750       (265,766 )     46,529  
                                 
Other Income (Expense)
                               
Interest Income
    -       4,568       5,241       13,388  
Interest Expense
    (60,294 )     (200,270 )     (150,887 )     (233,442 )
   Other, net
    -       -       -       6,303  
                                 
Total Other Expense
    (60,294 )     (195,702 )     (145,646 )     (213,751 )
                                 
Loss Before Income Taxes
    (519,939 )     (105,952 )     (411,412 )     (167,222 )
Income Tax Provision
    -       -       -       -  
                                 
Net Loss
  $ (519,939 )   $ (105,952 )   $ (411,412 )   $ (167,222 )
                                 
Basic and Diluted:
                               
Loss Per Share
  $ (0.01 )   $ (0.01 )   $ (0.01 )   $ (0.01 )
                                 
Basic Weighted Average Number of Shares Outstanding
    44,315,941       43,185,941       44,029,347       43,122,354  

 

The accompanying notes are an integral part of these condensed consolidated financial statements.
 
 

5
 

 

SUNDANCE STRATEGIES, INC. AND SUBSIDIARY
Condensed Consolidated Statements of Cash Flows
Nine Months Ended December 31, 2015 and 2014
(Unaudited)

 
 
   
Nine Months Ended
   
Nine Months Ended
 
   
December 31,
   
December 31,
 
   
2015
   
2014
 
             
Operating Activities
           
             
Net Loss
  $ (411,412 )   $ (167,222 )
Adjustments to reconcile to cash from operating activities:
               
Share Based Compensation - Options
    404,659       320,333  
Accrued Interest on NIBs
    (2,777,501 )     (1,772,698 )
Advance for Investments in Net Insurance Benefits
    (626,914 )     (794,598 )
Refund of Advance for Investments in Net Insurance Benefits
    854,920       904,274  
Changes in Operating Assets and Liabilities
               
  Accrued Interest Income
    16,428       (4,847 )
  Prepaid Expenses
    (1,875 )     (1,750 )
  Accounts Payable
    23,767       75,339  
  Accrued Expenses
    927,672       34,430  
                 
Net Cash from Operating Activities
    (1,590,256 )     (1,406,739 )
                 
Investing Activity
               
                 
Issuance of Note Receivable
    -       (150,000 )
Proceeds from Notes Receivable
    211,000       550,000  
                 
Net Cash from Investing Activity
    211,000       400,000  
                 
Financing Activities
               
                 
Proceeds from Issuance of Notes Payable and Lines-of-Credit, Related Party
    1,167,000       1,272,000  
Proceeds from Issuance of Convertible Debenture
    700,000       -  
Common Stock Issued for Cash
    -       150,000  
Redemption of Temporary Equity
    (750,000 )     -  
                 
Net Cash from Financing Activities
    1,117,000       1,422,000  
                 
Net Change in Cash
    (262,256 )     415,261  
Cash at Beginning of Period
    336,370       375,212  
                 
Cash at End of Period
  $ 74,114     $ 790,473  
                 
Non Cash Financing & Investing Activities
               
Notes Receivables Exchanged for Advance for Investment in NIBs
  $ -     $ 100,000  
Cash Paid for Interest
  $ -     $ 81,621  
Adjustments to Subscription Receivable and Additional Paid In Capital
  $ -     $ 1,500  
Exchange Note Payable and Accrued Interest for Temporary Equity
  $ 1,500,000     $ -  
Advanced funds paid converted to Net Insurance Benefits
  $ 3,368,380     $ -  
 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
 

6
 

 

SUNDANCE STRATEGIES, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
December 31, 2015

 
(1) ORGANIZATION AND BASIS OF PRESENTATION

The condensed consolidated unaudited interim financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The condensed consolidated financial statements and notes are presented as permitted on Form 10-Q and do not contain information included in the Company’s annual statements and notes. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these condensed consolidated financial statements be read in conjunction with the March 31, 2015, audited consolidated financial statements and the accompanying notes thereto. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the Company’s consolidated condensed financial statements and accompanying notes. Actual results could differ materially from those estimates.  These condensed consolidated unaudited financial statements reflect all adjustments, including normal recurring adjustments which, in the opinion of management, are necessary to present fairly the operations and cash flows for the periods presented.

Sundance Strategies, Inc. (formerly known as Java Express, Inc.) was organized under the laws of the State of Nevada on December 14, 2001, and engaged in the retail selling of beverage products to the general public until these endeavors ceased in 2006; it had no material business operations from 2006, until its acquisition of ANEW LIFE, INC. (“ANEW LIFE”), a subsidiary of Sundance Strategies, Inc. (“Sundance Strategies,” the “Company” or “we”). The Company is engaged in the business of purchasing or acquiring and selling life insurance policies and residual interests in or financial products tied to life insurance policies, including notes, drafts, acceptances, open accounts receivable and other obligations representing part or all of the sales price of insurance, life settlements and related insurance contracts being traded in the secondary marketplace, often referred to as the “life settlements market.” Currently, the Company is focused on the purchase and sale of net insurance benefit contracts (“NIB”) on life insurance policies between the sellers and purchasers, but does not take possession or control of the policies. The purchasers acquire the life insurance policies at a discount to their face value for investment purposes. The purchasers have available credit to pay premiums and expenses on the underlying policies until settlement. On settlement, the Company receives the NIB after all borrowings, interest and expenses have been paid out of the settlement proceeds.

(2) NEW ACCOUNTING PRONOUNCEMENTS

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09 – Revenue from Contracts with Customers, which provides a single, comprehensive revenue recognition model for all contracts with customers. The core principal of this ASU is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract.  In July 2015, the FASB deferred the effective date of this standard. As a result, the standard and related amendments will be effective for the Company for its fiscal year beginning April 1, 2018, including interim periods within that fiscal year. Early application is permitted, but not before the original effective date of April 1, 2017. Entities are allowed to transition to the new standard by either retrospective application or recognizing the cumulative effect. The Company is currently evaluating the guidance, including which transition approach will be applied and the estimated impact it will have on our consolidated financial statements.  The Company does not believe adoption of this ASU will have a material impact on its financial statements.

In August 2014, the FASB issued ASU 2014-15 Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.

 
7
 

 
SUNDANCE STRATEGIES, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
December 31, 2015

 
(2) NEW ACCOUNTING PRONOUNCEMENTS (Continued)

The new standard provides guidance around management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years,
beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s financial statements.

In April, 2015, the FASB issued ASU 2016-01: Simplifying the Presentation of Debt Issuance Costs (Subtopic 835-30). This update requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. Under current standards, debt issuance costs are generally recorded as an asset and amortization of these deferred financing costs is recorded in interest expense. Under the new standard, debt issuance costs will continue to be amortized over the life of the debt instrument and amortization will continue to be recorded in interest expense. ASU 2015-03 is effective for the Company on April 1, 2016, and will be applied on a retrospective basis. 

In May 2015, the FASB issued ASU 2015-08, Business Combinations (Topic 805): Pushdown Accounting. This Accounting Standards Update amends various SEC paragraphs pursuant to the issuance of Staff Accounting Bulletin No.115. The Company notes the Update is effective immediately and will apply to the Company if the Company acquires a business.

In August 2015, the FASB issued ASU 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. This Update was issued to make some fairly minor wording adjustments to ASC 835-30. The new wording, presented as paragraph 835-30-S45-1, recognizes that ASU 2015-13 does not address the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. As stated below, ASU 2015-13 requires companies to recognize debt issuance costs as a reduction of the carrying amount of the associated debt liability. ASU 2015-15 states that debt issuance costs related to line-of-credit arrangements may be recognized as an asset and amortized over the term of the line-of-credit arrangement, even if the line-of-credit does not carry a balance. The Company notes that this guidance does apply to its reporting requirements and will implement the new guidance accordingly.

In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This Update, which is part of the FASB’s larger Simplification Initiative project aimed at reducing the cost and complexity of certain areas of the accounting codification, requires that an acquirer recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustment amounts are determined.  Furthermore, the acquirer should record in the same period’s financial statements, the effect on earnings from any changes in depreciation, amortization or other items impacting income. These changes resulting from adjustments to provisional amounts should be calculated as if the accounting had been completed at the actual acquisition date. Lastly, the Update requires the acquirer to present separately on the face of the income statement or in the footnote disclosures the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the actual acquisition date. This Update is effective for fiscal years beginning after December 15, 2016. The amendments in this Update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this Update, with earlier application permitted. The amendments are effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years.  All entities have the option of adopting the new requirements as of an earlier date for financial statements that have not been previously issued. Applicable disclosures for a change in an accounting principle are required in the year of adoption, including interim periods. Early adoption of the amendments in this Update is permitted for financial statements that have not been previously issued. The Company notes that this guidance may apply to its reporting requirements and will implement the new guidance accordingly.
 

8
 

 

SUNDANCE STRATEGIES, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
December 31, 2015

(2) NEW ACCOUNTING PRONOUNCEMENTS (Continued)

In November 2015, the FASB issued ASU 2015-17 regarding Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred income taxes by requiring all deferred income tax liabilities and assets be classified as noncurrent on the consolidated balance sheets. The guidance is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2016, with early adoption permitted. The standard would be effective for the Company’s fiscal year beginning April 1, 2017, however, we expect to early adopt the provisions of this standard effective January 1, 2016 on a prospective basis. The Company does not expect the early adoption of this guidance to have a material effect on our consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01 regarding Financial Instruments, which amended guidance on the classification and measurement of financial instruments. Under the new guidance, entities will be required to measure equity investments that are not consolidated or accounted for under the equity method at fair value with any changes in fair value recorded in net income, unless the entity has elected the new practicability exception. For financial liabilities measured using the fair value option, entities will be required to separately present in other comprehensive income the portion of the changes in fair value attributable to instrument-specific credit risk. Additionally, the guidance amends certain disclosure requirements associated with the fair value of financial instruments. The standard will be effective for the Company’s fiscal year beginning April 1, 2018, including interim reporting periods within that fiscal year. The Company does not expect the early adoption of this guidance to have a material effect on our consolidated financial statements.

The Company has reviewed all other recently issued, but not yet adopted, accounting standards, in order to determine their effects, if any, on its results of operations, financial position or cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its financial statements.

(3) ADVANCE FOR INVESTMENT IN NET INSURANCE BENEFITS

On June 7, 2013, the Company entered into an Asset Transfer Agreement (the “Del Mar ATA”) with Del Mar Financial, S.a.r.l. (“Del Mar”).   As part of the Del Mar ATA, the Company entered into a Structuring and Consulting Agreement with Europa Settlement Advisors Ltd. (respectively, the “Europa Agreement” and “Europa”).

The Del Mar ATA involved the purchase of certain life settlement assets consisting of the legal and net beneficial ownership interest in a portfolio of life insurance policies (the “NIBs”), among other assets that are consideration and collateral for certain cash advances and expense payments made by the Company. According to the Del Mar ATA, Del Mar, with the assistance of Europa, was obligated to convert the NIBs and other newly acquired NIBs into “Qualified NIBS.”  As soon as Del Mar met its obligation to provide Qualified NIBs to the Company, any remaining NIBs and any other consideration and collateral would be returned or released to Del Mar. The original due date for the conversion was December 31, 2013, which date was subsequently extended several times. On April 30, 2015, the Company finalized an amendment to the Del Mar ATA and the related Europa Agreement to extend the deadline until August 31, 2015.

The remaining consideration and collateral under the Del Mar ATA, as of September 1, 2015, primarily consisted of approximately 81% of the NIBs associated with a portfolio of life settlement policies having a face value that originally totaled $94,000,000. During June 2015, one of the life settlement policies matured for $10,000,000 (the “Matured Policy”), lowering the remaining face value of such life settlement policies to $84,000,000. The premiums and expenses related to the maintenance of these life insurance policies are financed by a loan from a senior lender. 

As Del Mar was unable to provide the required amount of Qualified NIBs by the extended due date of August 31, 2015, effective September 1, 2015, the agreements with Del Mar and Europa were cancelled
 

9
 

 

SUNDANCE STRATEGIES, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
December 31, 2015

(3) ADVANCE FOR INVESTMENT IN NET INSURANCE BENEFITS (Continued)

and the Company obtained full ownership and control of the collateral, which included the above mentioned approximately 81% of the NIBs associated with the $84,000,000 face value of life settlement policies and certain rights to net proceeds relating to the Matured Policy.  

The bulk of the $10,000,000 proceeds paid in connection with the Matured Policy were used to repay loans secured by such Matured Policy.  However, on September 10, 2015, the Company received $1,094,335 as a result of the rights associated with the Matured Policy.  These proceeds were allocated $239,415 to pay off a note receivable (including interest), $547,308 to reimburse the Company for expense payments made to or on behalf of Del Mar and $307,612 as a refund of advance payments previously made to or on behalf of

Del Mar as part of the Del Mar ATA.  The $547,308 and $307,612 proceeds, which together total $854,920, were applied to reduce Advance for Investment in NIBs.

On September 30, 2015, the Company transferred the remaining balance of advances and expense payments to Del Mar, totaling $3,368,380, which approximates fair value. This amount was residing in advance for investment in NIBs before being transferred to investment in NIBs (see Note 4).  

In addition to obtaining full and unrestricted rights to the NIBs upon termination of the Del Mar ATA and Europa Agreement, the Company also is entitled to receive liquidated damages from Del Mar in an amount equal to 100% of any cash advances made under the Del Mar ATA.  The Company is currently determining the extent of the liquidated damages claim and Del Mar’s ability to pay any such liquidated damages. The liquidated damages are computed pro rata, based upon the percentage of Qualified NIBs delivered by Del Mar under the Del Mar ATA.  The Company received $90,600,000 in Qualified NIBs or approximately 22.65% of the $400,000,000 in Qualified NIBs due under the Del Mar ATA.  Accordingly, once 22.65% of its costs and expenses are deducted, the Company would be entitled to receive the remaining amount of its costs and expenses, times two, as liquidated damages. As a result of the termination, the Company has no further payment obligations to Del Mar or fee obligations to Europa.  The Company is determining whether Europa is liable to the Company for any damages related to Del Mar’s failure to provide the required Qualified NIBs.

The liquidated damages claim is secured by all of the assets transferred to the Company under the Del Mar ATA and a Collateral Pledge Agreement executed by Del Mar on June 5, 2013, pledging all of Del Mar’s remaining assets to the Company unless and until Del Mar completes all of its obligations under the Del Mar ATA.  The Company is unsure what, if any, assets are currently held by Del Mar.

(4) INVESTMENT IN NET INSURANCE BENEFITS

Investment in NIBs for the nine months ended December 31, 2015, and the fiscal year ended March 31, 2015, were as follows:

   
December 31, 2015
   
March 31, 2015
 
Beginning Balance
  $ 22,544,635     $ 12,243,411  
Additional investments
    3,368,380       7,846,746  
Accretion of interest income
    2,777,501       2,454,478  
Distributions of investments
    -       -  
Impairment of investments
    -       -  
Total
  $ 28,690,516     $ 22,544,635  

As mentioned in Note 3, the Company transferred $3,368,380 from advance for investment in NIBs into investment in NIBs on September 30, 2015.

The investment in NIBs is a residual economic beneficial interest in a portfolio of life insurance contracts that have been financed by an independent third party via a loan from a senior lender and insured via a
 

10
 

 

SUNDANCE STRATEGIES, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
December 31, 2015
 
(4) INVESTMENT IN NET INSURANCE BENEFITS (continued)

mortality risk insurance product or mortality re-insurance (“MRI”).  Future expected cash flow is defined as the net insurance proceeds from death benefits after senior debt repayment, mortality risk repayment and service provider or other third-party payments. The Company is not responsible for maintaining premiums or other expenses related to maintaining the underlying life insurance contracts. Therefore, the investment in NIBs balance on the Company’s balance sheet does not increase when premiums or other expenses are paid.   The Company holds a 100% interest in the NIBs relating to the underlying life insurance policies as of March 31, 2015. The Company holds between 81% and 100% in the NIBs relating to the underlying life insurance policies as of December 31, 2015.

The Company accounts for its investment in NIBs at the initial investment value increased for interest income and decreased for cash receipts received by the Company.  At the time of transfer or purchase of an investment in NIBs, we estimate the future expected cash flows and determine the effective interest rate based on these estimated cash flows and our initial investment. Based on this effective interest rate, the Company calculates accretable income, which is recorded as interest income on investment in NIBs in the statement of operations.  Subsequent to the purchase and on a regular basis, these future estimated cash flows are evaluated for changes. If the determination is made that the future estimated cash flows should be significantly adjusted, a revised effective yield is calculated prospectively based on the current amortized cost of the investment, including accrued accretion.  Any positive or adverse change in cash flows that does not result in the recognition of an “other-than-temporary impairment” (“OTTI”) results in a prospective increase or decrease in the effective interest rate used to recognize interest income. We have not recognized any significant adverse change in future estimated cash flows relating to our investment in NIBs from January 31, 2013 (inception) to the period ended December 31, 2015.

During July, 2015, a group of persons located in the United States (the “Purchasers”) acquired the entities that owned all of the portfolios of life insurance contracts underlying the Company’s NIBs.   The Purchasers have also agreed to amend the NIBs agreements to provide greater disclosure to the Company and limit permitted expenses to be paid prior to payments to the NIBs holders, pending certain regulatory and tax approvals.  In connection with this purchase, the Purchasers and the respective owners of these portfolios entered into a Settlement Agreement releasing such owners and their managers from liability related to their ownership and management of the entities that owned the respective portfolios of life insurance contracts.  The Purchasers further required releases from the Company and the payment of certain accrued expenses.  Accordingly, effective as of July 17, 2015, the Purchasers acquired all of the ownership interests in the entities that owned all of the portfolios of life insurance contracts underlying the Company’s NIBs from their prior owners and executed a Settlement Agreement with such owners and the Company in relation to these matters.  The NIBs amendments are in process, and the Company believes the NIBs amendments will be in effect within the next three months. The Company and Purchasers agreed to indemnify the prior owners of such portfolios against future claims in connection with the issuance of the NIBs or their ownership or management of the entities sold, based on actions that occurred prior to this sale to the Purchasers.  During the three months ended December 31, 2015, the Company accrued for an $826,665 obligation related to the ownership change, which is recorded in General and Administrative Expenses. Management of the Company is presently not aware of the existence of any additional payments owed.  Neither the purchase of these entities nor the Settlement Agreement resulted in any material change in our NIBs ownership interest. The Company was supportive of the Purchasers acquiring the entities that owned the portfolios of life insurance contracts underlying the Company’s NIBs and was willing to provide the indemnification because it believes this ownership change will result in a reduction of costs and expenses associated with ownership of the NIBs, which should increase their intrinsic value. 

(5) NOTES PAYABLE AND LINES-OF-CREDIT, RELATED PARTY

As of December 31, 2015, the Company had borrowed $2,667,000 from related parties under notes payable and lines-of-credit Agreements that allow for borrowings of up to $3,245,000 through the earlier of June 30, 2017, or when the Company completes a successful equity raise, at which time principal and interest is due in full.  The notes payable and lines-of-credit incur interest at 7.5 percent, allow for origination fees
 
 

11
 

 
SUNDANCE STRATEGIES, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
December 31, 2015
 
 
(5) NOTES PAYABLE AND LINES-OF-CREDIT, RELATED PARTY (continued)

and are collateralized by Advance for Investment in NIBs.  The Company borrowed $1,367,000 under these agreements during the nine months ended December 31, 2015. The Company also repaid $200,000 during the nine months ended December 31, 2015.  The related parties include a person who is the Chairman of the Board of Directors and a stockholder, and Radiant Life, LLC, an entity partially owned by the Chairman of the Board of Directors. See Note 10 for amendment of this agreement subsequent to period end.

(6) NOTES PAYABLE TRANSFERRED TO REDEEMED COMMON STOCK PAYABLE

At March 31, 2014, the Company owed $1,455,904, including accrued interest for notes payable.  During the year ended March 31, 2015, the Company had accrued an additional $37,350 in interest.  The note incurred interest at 4%, was collateralized by NIBs and was due April 2015.  During the three months ended June 30, 2015, the note payable and related accrued interest was converted to temporary equity through the issuance of 187,500 shares of common stock with a redemption feature (See Part II, Item 5, below).  On June 9, 2015, the holder of the redemption feature exercised a portion of the redemption right relating to 93,750 shares and, as a result, the holder accepted the Company’s redemption payment of $750,000.  The redemption feature on the remaining 93,750 shares was eligible to be exercised by the holders on October 31, 2015. The holders of the redemption feature exercised the redemption feature on October 31, 2015, thus requiring the Company to pay the redemption feature, and the Company originally had elected to exercise its 45 day Cure Period to make the redemption payment of $750,000 on or before December 15, 2015, in consideration of the cancellation of the 93,750 common shares. As a result of the redemption feature being exercised by the holder, the $750,000 associated with the redemption has been reclassified from Temporary Equity to Redeemed Common Stock Payable. To date the cure period with the holder of the redemption feature has expired. The Company and the redemption holder are negotiating the terms and conditions of an extension agreement and anticipate completion by February 15, 2016.

(7) CONVERTIBLE DEBENTURE AGREEMENT

On June 2, 2015, the Company entered into an 8% Convertible Debenture Agreement that allows for borrowings of up to $3,000,000 through June 2, 2016, at which time principal and interest is due in full. On June 2, 2016, the holder can elect to convert the outstanding principal and accrued interest to unregistered, restricted common stock of the Company.  The number of shares issuable at conversion shall be determined by the quotient obtained by dividing the outstanding principal and accrued and unpaid interest by 90% of the 90 day average closing price of the Company’s common stock from the date the notice of conversion is received; and the price at which the Debenture may be converted will be no lower than $1.00 per share.

As of December 31, 2015, the Company owed $700,000 under the agreement. Management has concluded there is currently no beneficial conversion feature associated with this instrument, as the conversion date is a year after the agreement was initiated and is also contingent. See Note 10 for amendment of this agreement subsequent to period end.

(8)  LIQUIDITY AND CAPITAL REQUIREMENTS

Under the current business plan, the Company purchases life insurance policies and residual interests in or financial products tied to life insurance policies when they fit its model and its cash flows are sufficient to fund those purchases (with exception of the Del Mar ATA wherein the Company committed to purchase a certain number of Qualified NIBs as Del Mar made them available).  The Company expects to finance NIB purchases, as well as its operating working capital requirements, with proceeds from planned public and/or private offerings of its securities and debt financing. There can be no assurance that the Company will be successful in the anticipated equity and debt offerings or that it will be successful in raising additional capital in the future on terms acceptable to the Company, or at all.
 

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SUNDANCE STRATEGIES, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
December 31, 2015

(8)  LIQUIDITY AND CAPITAL REQUIREMENTS (continued)

If the Company is unable to raise sufficient capital through the planned securities and debt offerings or other alternative sources of financing, management will curtail NIB purchases. Under this plan, expenditures for NIBs will be curtailed. The Company believes that it will be able to fund its operating working capital requirements with existing lines-of-credit and debentures agreements.

The accompanying financial statements have been prepared on a going concern basis under which the Company is expected to be able to realize its assets and satisfy its liabilities in the normal course of business. To continue as a going concern beyond the period ended December 31, 2016, and in order to continue to purchase NIBs, the Company will need to complete planned equity and debt offerings or obtain alternative sources of financing. Absent additional financing, the Company will not have the resources to execute its current business plan.

(9) STOCK OPTIONS

On July 22, 2015, the Board of Directors approved an amendment to modify the vesting schedule for stock options issued to an executive.  The amendment clarified that the option to purchase 400,000 shares of the Company’s $0.001 par value common stock at $5.00 per share, with a five year term, expiring March 31, 2018, was at a vesting rate of 11,111 stock options monthly, commencing with October, 2013, and ending with September 30, 2016, subject to continued employment with the Company.  As a result of this modification, the Company recorded a true-up amortization expense of $98,655 during the three months ended September 30, 2015, to adjust the amortization of the stock options to the amended vesting schedule as of the modification date of July 22, 2015.  In addition, the Company adjusted the going forward quarterly amortization, beginning with the three months ended September 30, 2015, of the stock options from $73,202 to $78,728.  No incremental value was applied to the amended stock options and, therefore, the original grant date fair value continues to be applicable.

(10) SUBSEQUENT EVENTS

On February 4, 2016, the Notes Payable and Lines-of-Credit Agreement – Related Party (See Note 5) was amended to allow for increased borrowings of $1,985,000.  With the new increase in effect, the total borrowings allowed from the related party entities was increased from $3,245,000 to $5,230,000.  All other terms of the Agreement remain in effect. The related parties include a person who is the Chairman of the Board of Directors and a stockholder, and Radiant Life, LLC, an entity partially owned by the Chairman of the Board of Directors.

On February 2, 2016, the Convertible Debenture Agreement (See note 7) was amended to extend the due date from June 2, 2016 to May 31, 2017.  All other terms of the Agreement remain in effect.
 
 
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Item 2. Management’s Discussions and Analysis of Financial Condition and Results of Operations.

This discussion summarizes the significant factors affecting our consolidated operating results, financial condition, liquidity and capital resources during the three- and nine-month periods ended December 31, 2015 and 2014.  For a complete understanding, this Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Financial Statements and Notes to the Financial Statements contained in this quarterly report on Form 10-Q and our annual report on Form 10-K for the year ended March 31, 2015.

Forward-Looking Statements

This quarterly report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are based on management’s beliefs and assumptions and on information currently available to management.  For this purpose any statement contained in this report that is not a statement of historical fact may be deemed to be forward-looking, including, but not limited to, statements relating to our future actions, intentions, plans, strategies, objectives, results of operations, cash flows and the adequacy of or need to seek additional capital resources and liquidity.  Without limiting the foregoing, words such as “may”, “should”, “expect”, “project”, “plan”, “anticipate”, “believe”, “estimate”, “intend”, “budget”, “forecast”, “predict”, “potential”, “continue”, “should”, “could”, “will” or comparable terminology or the negative of such terms are intended to identify forward-looking statements; however, the absence of these words does not necessarily mean that a statement is not forward-looking.  These statements by their nature involve known and unknown risks and uncertainties and other factors that may cause actual results and outcomes to differ materially depending on a variety of factors, many of which are not within our control.  Such factors include, but are not limited to, economic conditions generally and in the industry in which we and our customers participate; competition within our industry; legislative requirements or changes which could render our products or services less competitive or obsolete; our failure to successfully develop new products and/or services or to anticipate current or prospective customers’ needs; price increases; employee limitations;  delays, reductions, or cancellations of contracts we have previously entered into; sufficiency of working capital, capital resources and liquidity and other factors detailed herein and in our other filings with the United States Securities and Exchange Commission (the “SEC” or “Commission”).  Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.
 
Forward-looking statements are predictions and not guarantees of future performance or events.  Forward-looking statements are based on current industry, financial and economic information which we have assessed but which by its nature is dynamic and subject to rapid and possibly abrupt changes.  Our actual results could differ materially from those stated or implied by such forward-looking statements due to risks and uncertainties associated with our business.  Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.  Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements and we hereby qualify all our forward-looking statements by these cautionary statements.
 
These forward-looking statements speak only as of their dates and should not be unduly relied upon.  We undertake no obligation to amend this report or revise publicly these forward-looking statements (other than pursuant to reporting obligations imposed on registrants pursuant to the Exchange Act) to reflect subsequent events or circumstances, whether as the result of new information, future events or otherwise.
 
The following discussion should be read in conjunction with our financial statements and the related notes contained elsewhere in this report and in our other filings with the Commission.
 
 
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Overview

We are engaged in the business of purchasing or acquiring and selling life insurance policies and residual interests in or financial products tied to life insurance policies, including notes, drafts, acceptances, open accounts receivable and other obligations representing part or all of the sales price of insurance, life settlements and related insurance contracts being traded in the secondary marketplace, often referred to as the “life settlements market.”  A life settlement is the sale of an existing life insurance policy to a third party for more than the policy’s cash surrender value, but less than the face value of the policy benefit. After the sale, the new policy holder will pay the premiums due on the policy until maturity and then collect the settlement proceeds at maturity.

We do not typically purchase or hold life insurance policies but, rather, hold a contractual right to receive the net insurance benefits (“NIBs”) from a portfolio of life insurance policies held by a third party. These NIBs represent an indirect ownership interest in a portfolio of individual life insurance policies and they allow us to receive a portion of the settlement proceeds from such policies, after expenses related to the acquisition, financing, insuring and servicing of the policies underlying our NIBs have been paid.

Our plan of operation for the next 12 months is to continue the acquisition and possible sale of NIBs.  We began purchasing NIBs during our fiscal year ended March 31, 2013.

NIBs are generally sold by an entity that holds the underlying insurance policies, either directly or indirectly through a subsidiary, such an entity being referred to herein as a “Holder.” A Holder, either directly or through a wholly owned subsidiary, purchases life insurance policies either from the insured or on the secondary market and aggregates them into a portfolio of policies. At the time of purchase, the Holder also (i) contracts with a service provider to manage the servicing of the policies until maturity, (ii) purchases mortality re-insurance (“MRI”) coverage under which payments will be made to the Holder in the event the insurance policies do not mature according to actuarial life expectancies, and (iii) arranges financing to cover the initial purchase of the insurance policies, the servicing of the life insurance policies until maturity and the payment of the MRI premiums. The financing obtained by the Holder for a portfolio of insurance policies is secured by the insurance policies for which the financing was obtained. After a Holder purchases policies, aggregates them into a portfolio and arranges for the servicing, MRI coverage and financing, the Holder contracts to sell NIBs related to the policies, which gives the holder of the NIBs the right to receive the proceeds from the settlement of the insurance policies after all of the expenses related to such policies have been paid.

When an insurance policy underlying our NIBs comes to maturity, the insurance proceeds are first used to pay expenses associated with such policy. Once all of the expenses have been paid, the Holder will retain a small percentage of the proceeds and then will pay the remaining insurance proceeds to us in satisfaction of our related NIB.
 
Plan of Operations

Our plan of operation for the next 12 months is to continue the acquisition of NIBs. This is not a market sector without competition, and at present, we are a minor competitor. We will need substantial additional funds to effectively compete in this industry, and no assurance can be given that we will be able to adequately fund our current and intended operations, whether through revenues generated from our current interest in our NIBs or through debt or equity financing. We may be required to expend not less than approximately $113.1 million on premiums, interest and servicing costs over the next five years to protect our interest in our NIBs, though we have no legal responsibility or adequate funds for these payments. These payments are currently being made through an unrelated senior lending facility.

We currently estimate proceeds of approximately $115.3 million on the NIBs owned as of December 31, 2015, and acquired from PCH Financial S.a.r.l., a société à responsabilité limitée incorporated and existing under the laws of the Grand Duchy of Luxembourg (“PCH”), Del Mar Financial S.a.r.l., a société à responsabilité limitée incorporated and existing under the laws of the Grand Duchy of Luxembourg (“Del
 
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Mar”) and HFII Assets Solutions, LLC, a Delaware limited liability company (“HFII”). This amount is based on the estimated proceeds from polices of approximately $401.9 million in face value, which includes estimated return of premiums; less the senior loan debt or MRI repayments outstanding of approximately $103.5 million, expected premium payments of approximately $110.2 million over the life expectancies of the insured persons in these portfolios and estimated expenses and interest of approximately $72.9 million over the term of the senior loans.

We use an estimation methodology to project cash flows and returns as presented. The estimation model required many assumptions, including, but not limited to the following: (i) an assumption that the distinct number of lives in our portfolio would exhibit similar experience to a statistically diverse portfolio based upon which the mortality tables have been created; (ii) an assumption that the life expectancies (the “LE” or “LE’s”) provided by LE providers represent the actuarial mean of the life expectancies of the insureds in our portfolio, (iii) the weighted average of the LEs provided by the LE providers represents an appropriate method for adjusting for discrepancies in the LE’s; (iv) life expectancy tables and projections are accurate; (v) the minimum premiums calculated based on the in-force illustrations provided by life insurance carriers are accurate and will not change over the course of the lifetime of our portfolio; and the senior lender fees, MRI fees, and insurance, servicing and custodial fees do not change materially over time. While this method of modeling cash flows is helpful in providing a theoretical expectation of potential returns that might be produced from our NIBs portfolio, actual cash flows and returns inevitably will be different (possibly materially) due to the fact that predicting the exact date of death of any individual is virtually impossible. The provision of a theoretical cash flow model is by no means any guarantee of any results. The actual performance of these NIB interests (as well as our future expectations as to what such performance might be) may differ substantially from our expectations, especially if any of the assumptions change or differ from our initial assumptions. These portfolios currently contain only 130 fractionalized policies on 71 individual insureds, though insurance rating agencies have stated that at least 1,000 lives are required to achieve actuarial stability. Many risk factors beyond these assumptions may result in our expectations being incorrect; therefore, no assurance can be given that these estimated results will occur.

Results of Operations

Income Recognition

Interest income on investment in NIBs represents the excess of all cash flows attributable to the investment in net insurance benefits greater than the initial investment over the life of each pool of net insurance benefits using the effective yield method.  Changes in the estimate of expected cash flows from investments in NIBs are adjusted prospectively. Interest income on investment in NIBs totaled $1,090,031 and $616,547 for the three months ended December 31, 2015 and 2014, respectively.  The increase is primarily due to the additional interest income generated by the additional NIBs we acquired in March and September of 2015.

Interest income on investment in NIBs totaled $2,777,500 and $1,772,698 for the nine months ended December 31, 2015 and 2014, respectively.  The increase is primarily due to the additional interest income generated by the additional NIBs we acquired in March and September of 2015.

General & Administrative Expenses

General and administrative expenses totaled $1,549,676 and $526,797 during the three months ended December 31, 2015 and 2014, respectively.  During the three months ended December 31, 2015, the Company accrued an $826,665 obligation which was a result of a restructuring with the prior owners of the underlying life insurance portfolios to our NIBs (See Item 1. Financial Statements, Note 4). This obligation constituted the majority of the period increase in general and administrative expenses. During the nine months ended December 31, 2015 and 2014, general and administrative expenses totaled $3,043,267 and $1,726,169, respectively.  A significant portion of these expenses were professional fees, payroll and travel expenses, as well as the accrual for the claim described above.

 
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Other Income and Expenses

Other income and expenses primarily consist of interest on the notes payable and lines-of-credits due to related-parties and a convertible debenture. During the three months ended December 31, 2015 and 2014, interest expense had accrued in the amount of $60,294 and $200,270, respectively.   During the nine months ended December 31, 2015 and 2014, interest expense had accrued in the amount of $150,887 and $233,442, respectively.

Income Taxes

During the three and nine months ended December 31, 2015 and 2014, we recorded no taxable income and elected to not record deferred tax assets relating to tax net operating loss carryforwards as a result of us placing an 100% valuation allowance on our deferred tax assets.

Liquidity and Capital Resources

From our inception on January 31, 2013, through the nine months ended December 31, 2015, we incurred cumulative net losses of $868,940.  Management has expressed its belief that we need to raise approximately $40 million to $50 million in additional funds through equity or debt financing to continue our business model and to effectively compete in the life settlement industry during fiscal 2016 and beyond.  We raised $11,942,500 (gross) in our private placement of shares of our common stock that commenced in April 2013, and ended in November 2014. Our monthly expenses are between approximately $140,000 and $290,000, which includes salaries of our employees, consulting agreements and contract labor, general and administrative expenses and estimated legal and accounting expenses. We believe that by obtaining financing through equity and debt offerings, leveraging our existing notes payable and lines-of-credit, or through other alternative sources of financing, we will have adequate cash resources for our estimated monthly expenses through February 15, 2017, excluding any other acquisitions of additional NIBs and other life settlement products.  

We held cash assets at December 31, 2015, and March 31, 2015, of $74,114 and $336,370, respectively.  We have only common stock as our capital resource. We will be reliant upon stockholder loans or private placements of equity or debt to fund any future operations. Although management is actively pursuing opportunities to raise additional equity and debt capital, we have secured no sources of loans, and there is no assurance that we will be able to raise any required debt or equity financing. We do not anticipate having adequate revenues from operations for at least three to four years, and until a revenue stream has been established, we will require debt or equity funding to fund our current and intended business. If management is unsuccessful in these efforts, discontinuance of operations is probable.

For the nine months ended December 31, 2015 and 2014, we recorded net cash used in operating activities of $1,590,256 and $1,406,739, respectively. During September 2015, we obtained ownership and control of a portfolio of policies due to the cancellation of the Del Mar ATA.  On September 10, 2015, the Company received $1,094,335 as a result of the rights associated with a matured policy in the newly obtained portfolio.  These proceeds were allocated $547,308 to reimburse the Company for expense payments made to or on behalf of Del Mar, $239,415 to pay off a note receivable (including interest) and $307,612 as a refund of advance payments previously made to or on behalf of Del Mar as part of the Del Mar ATA.

During March 2015, we agreed to pay cash, issue common stock and forgive a note receivable in exchange for relief of a $1,493,254 note payable (explained in Debt, below) and the receipt of NIBs.  The net consideration given for the relief of note payable and receipt of NIBs totaled $1,493,254 and $7,846,746, respectively, for a total of $9,340,000 (of which $150,000 is cash, $150,000 is forgiveness of a note receivable and $9,040,000 is common stock consideration).  Of the 1,130,000 common shares issued, 187,500 shares contained a redemption feature that required us to buy back the shares for $8 per share ($1,500,000 in total) at the option of the holder. The 1,130,000 common shares, including the 187,500 shares containing a redemption feature, were issued on June 9, 2015.  On June 9, 2015, the redemption feature on 93,750 of these shares was exercised, and we paid the holders $750,000 and such 93,750 shares were cancelled.  The holders of the redemption feature exercised the redemption feature on the remaining
 
 
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93,750 shares on October 31, 2015, thus requiring us to pay the redemption feature, and we elected to exercise its 45 day Cure Period to make the redemption payment of $750,000 on or before December 15, 2015, in consideration of the cancellation of the remaining 93,750 shares. As a result of the redemption feature being exercised by the holder, the $750,000 associated with the redemption has been reclassified from Temporary Equity to Redeemed Common Stock Payable. To date the cure period with the holder of the redemption feature has expired. The Company and the redemption holder are negotiating the terms and conditions of an extension agreement and anticipate completion by February 15, 2016.

Net cash provided by financing activities totaled $1,117,000 and $1,422,000 for the nine months ended December 31, 2015 and 2014, respectively.  During the nine months ended December 31, 2015, we drew $700,000 on an 8% Convertible Debenture dated June 2, 2015, as well as borrowed $1,167,000 from related parties, which amounts were offset by a $750,000 payment made on the exercise of the redemption feature on 93,750 common shares.

Under our current business plan, we purchase NIBs only when they fit our model and our cash flows are sufficient to fund those purchases (with exception of the Del Mar ATA wherein we committed to purchase a certain number of NIBs as they are made available by Del Mar).  We expect to finance our NIBs purchases, as well as our operating working capital requirements, with proceeds from public and/or private offerings of our securities and debt financing. There can be no assurance that we will be successful in the anticipated equity and debt offerings or that we will be successful in raising additional capital in the future on terms acceptable to us, or at all.
 
If we are unable to raise sufficient capital through the equity and debt offerings or other alternative sources of financing, management will curtail NIB purchases.  We believe that we will be able to fund our operating working capital requirements for at least the next 12 months through February 15, 2017, by leveraging our existing notes payable and lines-of-credit from related parties and an 8% Convertible Debenture Agreement, which together totaled $8,230,000 in available liquidity, of which $3,969,622 is available at February 9, 2016.

The accompanying financial statements have been prepared on a going concern basis under which we are expected to be able to realize our assets and satisfy our liabilities in the normal course of business. To continue as a going concern beyond the period ending February 15, 2017, and in order to continue to acquire life insurance policies and residual interests in or financial products tied to life insurance policies we will need to complete the planned securities and debt offerings or obtain alternative sources of financing. Absent additional financing, we will not have the resources to execute our business plan.

Debt

At December 31, 2015, we owed $3,476,800, including accrued interest, for debt obligations. At December 31, 2015, we held notes payable and lines-of-credits from related parties of $2,667,000, excluding accrued interest, and an 8% Convertible Debenture of $700,000, excluding accrued interest. The notes payable and Lines-of-Credit – Related Parties are due June 30, 2017, or when the Company completes a successful equity raise, at which time principal and interest is due in full, and the Convertible Debenture is due May 31, 2017.  We may borrow money in the future to finance our operations, but can make no guarantees that such credit will be made available to us. Any such borrowing will increase the risk of loss to the debt holder in the event we are unsuccessful in repaying such loans.

Critical Accounting Policies and Estimates

The preparation of our financial statements requires that we make estimates and judgments. We base these on historical experience and on other assumptions that we believe to be reasonable.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.
 
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Item 3.  Quantitative and Qualitative Disclosure about Market Risk

We are exposed to certain market risks in the ordinary course of business. These risks result primarily from changes in interest rates, differing economic conditions, changes in political climate, differing tax structures and other regulations and restrictions.

To date we have not utilized derivative financial instruments or derivative commodity instruments. We do not expect to employ these or other strategies to hedge market risk in the foreseeable future. Cash is held in checking, savings and money market funds, which are subject to minimal credit and market risk. We believe that the market risks associated with these financial instruments are immaterial, although there can be no guarantee that these market risks will be immaterial to us.

Item 4.  Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our principal executive officer and our principal financial officer, evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report. Based on that evaluation, our President, who is also deemed to be our principal executive officer and our acting Chief Financial Officer (“CFO”), concluded that our disclosure controls and procedures as of the end of the period covered by the Quarterly Report were effective, and that the information required to be disclosed by us in reports filed under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including our President and our acting CFO, as appropriate to allow timely decisions regarding disclosure.  A controls system cannot provide absolute assurance, however, that the objectives of the controls system will be met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.
 
Prior to the period covered by the Quarterly Report for the period ended September 30, 2015, our President and our acting CFO, had concluded that our disclosure controls and procedures were not effective.  Prior to the period ended September 30, 2015, we appointed a Chief Operating Officer and hired advisors to help us adopt new measures to improve upon our disclosure controls.  Our process for evaluating controls and procedures is continuous and encompasses constant improvement of the design and effectiveness of established controls and procedures and the remediation of any deficiencies which may be identified during this process. There were no changes to our disclosure controls during the period ended December 31, 2015.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in matters may arise from time to time that may harm our business. As of the date of this quarterly report on Form 10-Q management is not aware of any material pending legal, judicial or administrative proceedings to which the Company or any of its subsidiaries is a party or of which any properties of the Company or its subsidiaries is the subject.
 
 
19
 

 
 
Item 1A.  Risk Factors

In addition to the other information set forth in this quarterly report on Form10-Q, you should carefully consider the risks discussed in our annual report on Form 10-K for the year ended March 31, 2015, and the quarterly reports on form 10-Q for the three months ended June 30, and six months ended September 30, 2015, which risks could materially affect our business, financial condition or future results. These risks are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

There were no sales by us of unregistered securities during the quarter ended December 31, 2015.

Item 3. Defaults upon Senior Securities.

None; not applicable.

Item 4. Mine Safety Disclosures.

None; not applicable.

Item 5. Other Information.

As of December 31, 2015, the Company had borrowed $2,667,000 from related parties under notes payable and lines-of-credit agreements that allows for borrowings of up to $3,245,000 through the earlier of June 30, 2017, or when the Company completes a successful equity raise, at which time principal and interest is due in full. On February 4, 2016, the notes payable and lines-of-credit agreements were amended to allow for increased borrowings of $1,985,000.  With the new increase in effect, the total borrowings allowed from the related party entities was increased from $3,245,000 to $5,230,000.  All other terms of the agreements remain in effect.   The related parties include a person who is the Chairman of the Board of Directors and a stockholder, and Radiant Life, LLC, an entity partially owned by the Chairman of the Board of Directors.

On June 2, 2015, the Company entered into an 8% convertible debenture agreement that allowed for borrowings of up to $3,000,000 through June 2, 2016, at which time principal and interest was to be due in full. On February 2, 2016, the convertible debenture agreement was amended to extend the due date from June 2, 2016 to May 31, 2017.  All other terms of the Agreement remain in effect.
 
Item 6.  Exhibits

 Exhibits.  The following exhibits are included as part of this report:

 
Exhibit 10.1
 
Amendment to the notes payable and lines-of-credit agreements, dated February 4, 2016, between the Company, Kraig Higginson and Radiant Life, LLC
       
 
Exhibit 10.2
 
Amendment to the convertible debenture agreement, dated February 2, 2016, between the Company and Sactco International, Limited.
       
 
Exhibit 31.1
 
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act provided by Randall F. Pearson, President and Director.
       
 
Exhibit 31.2
 
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act provided by Randall F. Pearson, acting CFO.
       
 
Exhibit 32
 
Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 proved by Randall F. Pearson, President and acting CFO.
       
 
Exhibit 101.INS
 
XBRL Instance Document
       
 
Exhibit 101.SCH
 
XBRL Taxonomy Extension Schema Document
       
 
Exhibit 101.CAL
 
XBRL Taxonomy Extension Calculation Linkbase Document
       
 
Exhibit 101.DEF
 
XBRL Taxonomy Definition Linkbase Document
       
 
Exhibit 101.LAB
 
XBRL Taxonomy Extension Label Linkbase Document
       
 
Exhibit 101.PRE
 
XBRL Taxonomy Extension Presentation Linkbase Document


 
 
20
 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

       
SUNDANCE STRATEGIES, INC.
 
           
Date:
February 9, 2016
 
By:
/s/ Randall F. Pearson  
       
Randall F. Pearson
 
       
President, Chief Executive Officer and Acting Chief Financial Officer
 









 
 
21
 

 

EX-10.1 2 ex10_1.htm AMENDMENT TO THE NOTES PAYABLE AND LINES-OF-CREDIT AGREEMENTS, DATED FEBRUARY 4, 2016, BETWEEN THE COMPANY, KRAIG HIGGINSON AND RADIANT LIFE, LLC ex10_1.htm
EXHIBIT 10.1
 
 
 
 
Additions To Kraig T. Higginson Promissory Note

 


Reference is made to the Promissory note by and between the undersigned parties, Sundance Strategies, Inc. and Kraig T. Higginson, said note originally dated July 22, 2015, subsequently extended to June 30,2017.
 
Be it known, that for good consideration the parties made the following additions or changes to said contract as if contained therein:
1.  Total amount of the promissory note to be increased to an amount not to
exceed $3,100,000.
2.  The total to date received by Sundance Strategies from Kraig Higginson is
$2,060,377.62.
 
All other terms and provisions shall remain in full force and effect.
 
 
Sundance Strategies, Inc.
 
/s/ Randall F. Pearson                                                                         
By:  Randall F. Pearson, It’s President
 
Signed this 4th day of February, 2016.
 
 
 
Kraig T. Higginson
 
 
/s/ Kraig T. Higginson         
By:  Kraig T. Higginson
 
Signed this 4th day of February, 2016.
 

 

 
 

 
 
EX-10.2 3 ex10_2.htm AMENDMENT TO THE CONVERTIBLE DEBENTURE AGREEMENT, DATED FEBRUARY 2, 2016, BETWEEN THE COMPANY AND SACTCO INTERNATIONAL, LIMITED ex10_2.htm
EXHIBIT 10.2
 
 
 

 
 
February 1, 2016
 
 
 
Regarding:  Debenture agreement between Sundance
Strategies, Inc. and Satco Internationat  Limited.
 
 
I agree to extend the Debenture Agreement between Satco and Sundance Strategies, Inc. from the original due date of June 2, 2016 to May 31, 2017. All other terms and conditions remain the same.
 
 
 
 /s/ Stephen H. Smoot        February 1, 2016
Stephen H. Smoot  Date
Satco Internationat Limited  
Attorney-in-Fact  
 
 
 
 /s/ Randall F. Pearson        February 2, 2016
Randall F. Pearson  Date
President  
Sundance Strategies, Inc.  
 
 

 
 
 

 
 
EX-31.1 4 ex31_1.htm CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT PROVIDED BY RANDALL F. PEARSON, PRESIDENT AND DIRECTOR ex31_1.htm
EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934


I, Randall F. Pearson, certify that:

1.           I have reviewed this quarterly report on Form 10-Q of Sundance Strategies, Inc.;

2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.           Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.           The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 
a)
Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 
b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 
c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

 
d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.           The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 
a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 
b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date:
February 9, 2016
 
By:
/s/ Randall F. Pearson  
       
Randall F. Pearson
 
       
Chief Executive Officer
 
           




 
 

 

EX-31.2 5 ex31_2.htm CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT PROVIDED BY RANDALL F. PEARSON, ACTING CFO ex31_2.htm
EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934


I, Randall F. Pearson, certify that:

1.           I have reviewed this quarterly report on Form 10-Q of Sundance Strategies, Inc.;

2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.           Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.           The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
a)
Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 
b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 
c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

 
d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.           The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 
a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
 
b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date:
February 9, 2016
 
By:
/s/ Randall F. Pearson  
       
Randall F. Pearson
 
       
Acting Chief Financial Officer
 
           




 
 

 

EX-32.1 6 ex32_1.htm CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 PROVED BY RANDALL F. PEARSON, PRESIDENT AND ACTING CFO ex32_1.htm
EXHIBIT 32

CERTIFICATION OF PRINCIPAL
EXECUTIVE OFFICER PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with this quarterly report on Form 10-Q of Sundance Strategies, Inc. (the “Company”) for the period ended December 31, 2015, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Randall F. Pearson, Chief Executive Officer and cting Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 
(1)
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 
(2)
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.



Date:
February 9, 2016
 
By:
/s/ Randall F. Pearson  
       
Randall F. Pearson
 
       
Chief Executive Officer and Acting Chief Financial Officer
 
           
















 
 

 

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Entities are allowed to transition to the new standard by either retrospective application or recognizing the cumulative effect. The Company is currently evaluating the guidance, including which transition approach will be applied and the estimated impact it will have on our consolidated financial statements. The Company does not believe adoption of this ASU will have a material impact on its financial statements.</font></p> <p><font style="font-size: 10pt;">In August 2014, the FASB issued ASU 2014-15 Presentation of Financial Statements&#151;Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern.<br/>&#160;<br/>The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. 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Lastly, the Update requires the acquirer to present separately on the face of the income statement or in the footnote disclosures the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the actual acquisition date. This Update is effective for fiscal years beginning after December 15, 2016. The amendments in this Update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this Update, with earlier application permitted. The amendments are effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. All entities have the option of adopting the new requirements as of an earlier date for financial statements that have not been previously issued. Applicable disclosures for a change in an accounting principle are required in the year of adoption, including interim periods. Early adoption of the amendments in this Update is permitted for financial statements that have not been previously issued. The Company notes that this guidance may apply to its reporting requirements and will implement the new guidance accordingly.</font></p> <p><font style="font-size: 10pt;">In November 2015, the FASB issued ASU 2015-17 regarding Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred income taxes by requiring all deferred income tax liabilities and assets be classified as noncurrent on the consolidated balance sheets. The guidance is</font><br/><font style="font-size: 10pt;">effective for fiscal years and interim reporting periods within those years beginning after December 15, 2016, with early adoption permitted. 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If the determination is made that the future estimated cash flows should be significantly adjusted, a revised effective yield is calculated prospectively based on the current amortized cost of the investment, including accrued accretion. Any positive or adverse change in cash flows that does not result in the recognition of an &#147;other-than-temporary impairment&#148; (&#147;OTTI&#148;) results in a prospective increase or decrease in the effective interest rate used to recognize interest income. We have not recognized any significant adverse change in future estimated cash flows relating to our investment in NIBs from January 31, 2013 (inception) to the period ended December 31, 2015.<br/>&#160;<br/>During July, 2015, a group of persons located in the United States (the &#147;Purchasers&#148;) acquired the entities that owned all of the portfolios of life insurance contracts underlying the Company's NIBs. 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(&#147;Del Mar&#148;). As part of the Del Mar ATA, the Company entered into a Structuring and Consulting Agreement with Europa Settlement Advisors Ltd. (respectively, the &#147;Europa Agreement&#148; and &#147;Europa&#148;).</font><br/><font style="font-size: 10pt;">&#160;</font><br/><font style="font-size: 10pt;">The Del Mar ATA involved the purchase of certain life settlement assets consisting of the legal and net beneficial ownership interest in a portfolio of life insurance policies (the &#147;NIBs&#148;), among other assets that are consideration and collateral for certain cash advances and expense payments made by the Company. According to the Del Mar ATA, Del Mar, with the assistance of Europa, was obligated to convert the NIBs and other newly acquired NIBs into &#147;Qualified NIBS.&#148; As soon as Del Mar met its obligation to provide Qualified NIBs to the Company, any remaining NIBs and any other consideration and collateral would be returned or released to Del Mar. The original due date for the conversion was December 31, 2013, which date was subsequently extended several times. On April 30, 2015, the Company finalized an amendment to the Del Mar ATA and the related Europa Agreement to extend the deadline until August 31, 2015.</font><br/><font style="font-size: 10pt;">&#160;</font><br/><font style="font-size: 10pt;">The remaining consideration and collateral under the Del Mar ATA, as of September 1, 2015, primarily consisted of approximately <font>81</font>% of the NIBs associated with a portfolio of life settlement policies having a face value that originally totaled $<font>94,000,000</font>. During June 2015, one of the life settlement policies matured for $<font>10,000,000</font>&#160;(the &#147;Matured Policy&#148;), lowering the remaining face value of such life settlement policies to $<font>84,000,000</font>. 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During the three months ended June 30, 2015, the note payable and related accrued interest was converted to temporary equity through the issuance of <font>187,500</font> shares of common stock with a redemption feature (See Part II, Item 5, below). On June 9, 2015, the holder of the redemption feature exercised a portion of the redemption right relating to <font>93,750</font> shares&#160;and, as a result, the holder accepted the Company's redemption payment of $<font>750,000</font>. The redemption feature on the remaining 93,750 shares was eligible to be exercised by the holders on October 31, 2015. The holders of the redemption feature exercised the redemption feature on October 31, 2015, thus requiring the Company to pay the redemption feature, and the Company originally had elected to exercise its 45 day Cure Period to make the redemption payment of $750,000 on or before December 15, 2015, in consideration of the cancellation of the 93,750 common shares. As a result of the redemption feature being exercised by the holder, the $<font>750,000</font> associated with the redemption has been reclassified from Temporary Equity to Redeemed Common Stock Payable. To date the cure period with the holder of the redemption feature has expired. The Company and the redemption holder are negotiating the terms and conditions of an extension agreement and anticipate completion by February 15, 2016.</font></p> </div> 2015-04-01 93750 750000 P5Y 11111 98655 73202 78728 Sundance Strategies, Inc. 0001171838 10-Q <div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <p style="margin: 0in 0in 0pt; text-align: justify; font-family: 'Times New Roman', serif; font-size: 12pt;"><font style="font-family: 'times new roman', times; font-size: 10pt;"><b>(8)<font style="mso-spacerun: yes;">&#160; </font>LIQUIDITY AND CAPITAL REQUIREMENTS</b></font></p> <p style="margin: 0in 0in 0pt; text-align: justify; font-family: 'Times New Roman', serif; font-size: 12pt;"><font style="font-family: 'times new roman', times; font-size: 10pt;"><b>&#160;</b></font></p> <p style="margin: 0in 0in 0pt; text-align: justify; font-family: 'Times New Roman', serif; font-size: 12pt;"><font style="font-family: 'times new roman', times; font-size: 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The Company expects to finance NIB purchases, as well as its operating working capital requirements, with proceeds from planned public and/or private offerings of its securities and debt financing. There can be no assurance that the Company will be successful in the anticipated equity and debt offerings or that it will be successful in raising additional capital in the future on terms acceptable to the Company, or at all.</font></p> <p><font style="font-size: 10pt;">If the Company is unable to raise sufficient capital through the planned securities and debt offerings or other alternative sources of financing, management will curtail NIB purchases. Under this plan, expenditures for NIBs will be curtailed. The Company believes that it will be able to fund its operating working capital requirements with existing lines-of-credit and debentures agreements.</font></p> <p><font style="font-size: 10pt;">The accompanying financial statements have been prepared on a going concern basis under which the Company is expected to be able to realize its assets and satisfy its liabilities in the normal course of business. To continue as a going concern beyond the period ended December 31, 2016, and in order to continue to purchase NIBs, the Company will need to complete planned equity and debt offerings or obtain alternative sources of financing. Absent additional financing, the Company will not have the resources to execute its current business plan.</font></p> </div> <div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <p style="margin: 0pt; text-align: justify; font-family: 'times new roman';"><font style="font-family: 'times new roman', times; font-size: 10pt;"><strong>(9) STOCK OPT<font style="font-size: 10pt;">IONS</font></strong></font></p> <p style="margin: 0pt; text-align: justify; font-family: 'times new roman';"><font style="font-size: 10pt;"><font style="font-family: 'times new roman', times;"></font>&#160;</font></p> <p style="margin: 0pt; text-align: justify; font-family: 'times new roman';"><font style="font-size: 10pt;"><font style="font-family: 'times new roman', times;">On July 22, 2015, </font>the Board of Directors approved an amendment to modify the vesting schedule for stock options issued to an executive. &#160;The amendment clarified that the option to purchase <font>400,000</font> shares of the Company's $<font>0.001</font>&#160;par value common stock at $<font>5.00</font>&#160;per share, with a <font>five</font> year term, expiring March 31, 2018, was at a vesting rate of <font>11,111</font> stock options monthly, commencing with October, 2013, and ending with September 30, 2016, subject to continued employment with the Company. As a result of this modification, the Company recorded a true-up amortization expense of $<font>98,655</font> during the three months ended September 30, 2015, to adjust the amortization of the stock options to the amended vesting schedule as of the modification date of July 22, 2015.<font style="mso-spacerun: yes;">&#160; </font>In addition, the Company adjusted the going forward quarterly amortization, beginning with the three months ended September 30, 2015, of the stock options from $<font>73,202</font> to $<font>78,728</font>.<font style="mso-spacerun: yes;">&#160; </font>No incremental value was applied to the amended stock options and, therefore, the original grant date fair value continues to be applicable.</font></p> </div> 400000 0.001 5.00 2015-12-31 --03-31 44315941 2016 Q3 Accelerated Filer false <div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <p><b><font style="font-size: 10.0pt;">(7) CONVERTIBLE DEBENTURE AGREEMENT<br/>&#160;<br/></font></b></p> <p><font style="font-size: 10pt;">On June 2, 2015, the Company entered into an <font>8</font>% Convertible Debenture Agreement that allows for borrowings of up to $<font>3,000,000</font> through June 2, 2016, at which time principal and interest is due in full. 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With the new increase in effect, the total borrowings allowed from the related party entities was increased from $<font>3,245,000</font> to $<font>5,230,000</font>. All other terms of the Agreement remain in effect. The related parties include a person&#160;who is the Chairman of the Board of Directors and a stockholder and Radiant Life, LLC, an entity partially owned by the Chairman of the Board of Directors.</font></p> <p><font style="font-size: 10pt;">On February 2, 2016, the Convertible Debenture Agreement (See note 7) was amended to extend the due date from June 2, 2016 to May 31, 2017. 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Additional Paid In Capital Stock To Be Issued Additional Paid In Capital- Stock to be Issued Summary of investments in net insurance benefits. Summary Of Life Settlement Contracts [Table Text Block] Summary of Investments in Net Insurance Benefits Tabular disclosure of the future estimated premiums payments, other expenses and interest paid by external parties expected to be paid on the policies through the estimated death date, future cash flows to investors, as well as future estimated proceeds from policy maturities for insurance benefit contracts. Schedule Of Future Estimated Premiums Paymenst And Other Expenses Expected To Be Paid On Insurance Benefit Contracts [Table Text Block] Schedule of Future Estimated Premiums, Payments and Other Expenses Expected to be Paid on Insurance Benefit Contracts Schedule of Estimated Premiums, Payments and Other Expenses Expected to be Paid on Insurance Benefit Contracts Held as Collateral Distributions of life settlement contract investments. Distribution Of Life Settlement Contract Investments Distributions of investments Amount of life insurance expense and interest anticipated to be paid in the next fiscal year following the latest fiscal year to keep the life settlement contracts accounted for under the investment method in force. Life Settlement Contracts Investment Method Expenses Plus Interest In Next Twelve Months Expense + Interest to be paid, year one Amount of life insurance premiums, expense, and interest anticipated to be paid in the next fiscal year following the latest fiscal year to keep the life settlement contracts accounted for under the investment method in force. Life Settlement Contracts Investment Method Premiums Plus Expenses Plus Interest To Be Paid In Next Twelve Months Total to be paid, year one Amount of life insurance expense and interest anticipated to be paid in the second fiscal year following the latest fiscal year to keep the life settlement contracts accounted for under the investment method in force. Life Settlement Contracts Investment Method Expenses Plus Interest To Be Paid In Year Two Expense + Interest to be paid, year two Amount of life insurance premiums, expense, and interest anticipated to be paid in the second fiscal year following the latest fiscal year to keep the life settlement contracts accounted for under the investment method in force. Life Settlement Contracts Investment Method Premiums Plus Expenses Plus Interest To Be Paid In Year Two Total to be paid, year two Amount of life insurance expense and interest anticipated to be paid in the third fiscal year following the latest fiscal year to keep the life settlement contracts accounted for under the investment method in force. Life Settlement Contracts Investment Method Expenses Plus Interest To Be Paid In Year Three Expense + Interest to be paid, year three Amount of life insurance premiums, expense, and interest anticipated to be paid in the third fiscal year following the latest fiscal year to keep the life settlement contracts accounted for under the investment method in force. Life Settlement Contracts Investment Method Premiums Plus Expenses Plus Interest To Be Paid In Year Three Total to be paid, year three Amendment Flag Amount of life insurance expense and interest anticipated to be paid in the fourth fiscal year following the latest fiscal year to keep the life settlement contracts accounted for under the investment method in force. Life Settlement Contracts Investment Method Expenses Plus Interest To Be Paid In Year Four Expense + Interest to be paid, year four Amount of life insurance premiums, expense, and interest anticipated to be paid in the fourth fiscal year following the latest fiscal year to keep the life settlement contracts accounted for under the investment method in force. Life Settlement Contracts Investment Method Premiums Plus Expenses Plus Interest To Be Paid In Year Four Total to be paid, year four Amount of life insurance expense and interest anticipated to be paid in the fifth fiscal year following the latest fiscal year to keep the life settlement accounted for under the investment method contracts in force. Life Settlement Contracts Investment Method Expenses Plus Interest To Be Paid In Year Five Expense + Interest to be paid, year five Amount of life insurance premiums, expense, and interest anticipated to be paid in the fifth fiscal year following the latest fiscal year to keep the life settlement accounted for under the investment method contracts in force. Life Settlement Contracts Investment Method Premiums Plus Expenses Plus Interest To Be Paid In Year Five Total to be paid, year five Total amount of life insurance expense and interest anticipated to be paid to keep the life settlement accounted for under the investment method contracts in force. Life Settlement Contracts Investment Method Expenses Plus Interest To Be Paid Total Expense + Interest, total Amount of life insurance premiums, expense and interest anticipated to be paid to keep the life settlement accounted for under the investment method contracts in force. Life Settlement Contracts Investment Method Premiums Plus Expenses Plus Interest To Be Paid Premiums, interest and expenses, total The capitalized cost of fee paid to the consultant for arranging purchase of net insurance benefits through pledge agreement. Capitalized Consultant Fee Capitalized consultant fee Amount of life settlement contracts that matured during the period. Life Settlement Contracts Matured During Period Contracts that matured during the period Total amount the policy holders have paid on policy premiums and other expenses on the insurance contracts. Life Settlement Contracts Investment Method Premiums Paid And Other Expenses Total amount policy holders have paid on policy premiums and other expenses on insurance contracts The face value of net insurance benefits purchased under asset transfer agreement. Face Value Of Net Insurance Benefits Purchased Under Asset Transfer Agreement Face value of net insurance benefits purchased under asset transfer agreement The value of qualified net insurance benefits required to be delivered to the company per the asset transfer agreement. Value Of Qualified Net Insurance Benefits Qualified net insurance benefits received The total cash consideration that would be paid by the company if all net insurance benefits are provided under the asset transfer agreement. Total Cash Consideration That Would Be Paid By Company If All Net Insurance Benefits Are Provided Under Asset Transfer Agreement Total cash consideration that would be paid by the company if all net insurance benefits are provided under the asset transfer agreement with Del Mar Financial, S.a.r.l. The face amount of promissory note that would be issued by the company if all net insurance benefits are provided under the asset transfer agreement. Total Notes Payable That Would Be Issued By Company If All Net Insurance Benefits Are Provided Under Asset Transfer Agreement Face amount of promissory note that would be issued by the company if all net insurance benefits are provided under the asset transfer agreement with Del Mar Financial, S.a.r.l. The entire disclosure for advances for investments in net insurance benefits. Advance For Investment In Net Insurance Benefits [Text Block] ADVANCE FOR INVESTMENT IN NET INSURANCE BENEFITS Face amount of net insurance benefits required to be delivered to the company per the asset transfer agreement. Value Of Net Insurance Benefits Required To Be Delivered Per Asset Transfer Agreement Face amount of net insurance benefits required to be delivered to the company per the asset transfer agreement Required amount of qualified NIBs under the Del Mar ATA The amount advanced to consultant for services under exclusivity agreement. Advance To Consultant For Services Advance to consultant for services Current Fiscal Year End Date Interest rate on notes receivable. Notes Receivable Interest Rate Interest rate Del Mar [Member] Del Mar [Member] Majestic [Member] Majestic [Member] Warrant Term Warrant Term Notes Receivable Maturity Date Maturity date Office One [Member] Office One [Member] Utah Office [Member] Office Two [Member] Office Two [Member] California Office [Member] Award Date One [Member] Award Date One [Member] April 1, 2013 [Member] Number of shares that vest upon grant. Sharebased Compensation Arrangement By Sharebased Payment Award Award Vesting Rights On Grant Date Amount Shares vesting on grant date Document Period End Date Number of shares that vest equally on the anniversary of the grant date for the vesting period. Sharebased Compensation Arrangement By Sharebased Payment Award Award Vesting Rights On Anniversary Date Amount Shares vesting on each anniversary Number of shares vesting in equal groups. Sharebased Compensation Arrangement By Sharebased Payment Award Award Vesting Equally Shares vesting equally Award Date Two [Member] Award Date Two [Member] April 5, 2013 [Member] Tranche One [Member] Tranche One [Member] Award Date [Axis] Tranche Two [Member] Tranche Two [Member] Award Type [Axis] Share based compensation issued to nonemployees. Nonemployees [Member] Award Date [Domain] Award Date Three [Member] October 11, 2013 [Member] The weighted average grant-date fair value of options outstanding during the reporting period as calculated by applying the disclosed option pricing methodology. Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Grant Date Fair Value Outstanding at end of period Outstanding at beginning of period Weighted average remaining contractual term for option awards granted, in 'PnYnMnDTnHnMnS' format, for example, 'P1Y5M13D' represents the reported fact of one year, five months, and thirteen days. Sharebased Compensation Arrangement By Sharebased Payment Award Options Granted Weighted Average Remaining Contractual Term 2 Granted Entity [Domain] The weighted average grant-date fair value of options exercised during the reporting period as calculated by applying the disclosed option pricing methodology. Share Based Compensation Arrangement By Share Based Payment Award Options Exercised Weighted Average Grant Date Fair Value Exercised Weighted average remaining contractual term for option awards exercised, in 'PnYnMnDTnHnMnS' format, for example, 'P1Y5M13D' represents the reported fact of one year, five months, and thirteen days. Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercised Weighted Average Remaining Contractual Term 2 Exercised The weighted average grant-date fair value of options forfeited during the reporting period as calculated by applying the disclosed option pricing methodology. Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures Weighted Average Grant Date Fair Value Cancelled/Expired The amount of investment in a private offering of common stock. Private Placement Investment Amount Private placement investment amount Number of warrants authorized for issuance. Class Of Warrant Or Right Number Of Warrants Authorized For Issuance Number of warrants authorized for issuance A non cash financing activity incurred directly from the issuance of warrants. Fair Value Of Warrants Issued Stock Issuance Costs Fair Value of Warrants Issued as Stock Issuance Costs Warrants and rights note disclosure text block Warrants And Rights Note Disclosure Text Block WARRANTS Weighted average per share amount at which grantees can acquire shares of common stock by exercise of options outstanding. Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Outstanding Weighted Average Exercise Price Outstanding at end of period Outstanding at beginning of period Weighted average per share amount at which grantees can acquire shares of common stock by exercise of options. Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Exercise Price Granted Granted Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Granted Weighted Average Remaining Contractual Terms Granted The grant-date intrinsic value of equity instruments other than options granted during the reporting period as calculated by applying the disclosed option pricing methodology. Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Intrinsic Value Extended Granted Weighted average price under non-option equity instrument agreements that were cancelled as a result of occurrence of a terminating event. Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Exercise Price Forfeitures Cancelled/Expired Weighted average remaining contractual term for equity-based awards excluding options forfeited, in 'PnYnMnDTnHnMnS' format, for example, 'P1Y5M13D' represents the reported fact of one year, five months, and thirteen days. Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Forfeitures Weighted Average Remaining Contractual Terms Cancelled/Expired The intrinsic value of equity instruments other than options cancelled or expired during the reporting period as calculated by applying the disclosed option pricing methodology. Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Cancelled Or Expired In Period Intrinsic Value Cancelled/Expired Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested And Expected To Vest Weighted Average Exercise Price Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested And Expected To Vest Weighted Average Exercise Price Exercisable Weighted average remaining contractual term for equity-based awards excluding options exercisable, in 'PnYnMnDTnHnMnS' format, for example, 'P1Y5M13D' represents the reported fact of one year, five months, and thirteen days. Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Exercisable Weighted Average Remaining Contractual Terms Exercisable Represents the information pertaining to common stock to be issued. Common Stock To Be Issued [Member] Represents the amount of refund of advance for investments in net insurance benefits. Refund of Advance for Investments in Net Insurance Benefits Refund of Advance for Investments in Net Insurance Benefits Proceeds allocated to reduce advance for Investments in NIBs Proceeds allocated to reduce advance for Investments in NIBs Advance For Investment In Net Insurance Benefits [Abstract] ADVANCE FOR INVESTMENT IN NET INSURANCE BENEFITS [Abstract] The amount advanced in payments under the Del Mar ATA. Amount Of Payments Advanced Under Ata Agreement Advanced payments under the Del Mar ATA Anew Acquisition Corp [Member] Anew Acquisition Corp [Member] Merger Subsidiary [Member] Reverse merger and recapitalization with ANEW LIFE INC. Anew Life [Member] ANEW LIFE [Member] The amount of buyback option per loan agreement. Buyback Option Amount Buyback option The percentage amount of additional cost added to buyback amount for everymonth past the twelve month period. Buyback Option Amount Additional Percentage Buyback amount, added monthly percentage The minimim price threshold for buyback option. Buyback Option Minimum Price Minimum buyback price The time period from assigment of ammended note to buyback. Buyback Option Period Buyback period Document And Entity Information [Abstract] GOING CONCERN [Abstract] Life insurance policies purchased with debt. Life Insurance Policies Purchased With Debt Net Insurance Benefits Purchased with Debt Amount of life insurance expense and interest anticipated to be paid after the fifth fiscal year following the latest fiscal year to keep the life settlement accounted for under the investment method contracts in force. Life Settlement Contracts Investment Method Expenses Plus Interest To Be Paid After Year Five Expense + Interst to be paid, thereafter Life Settlement Contracts Investment Method Expenses Plus Interest To Be Paid Fiscal Year Maturity [Abstract] Life Settlement Contracts Investment Method Expenses Plus Interest To Be Paid Fiscal Year Maturity [Abstract] Expenses + Interest: Life Settlement Contracts Investment Method Premiums Plus Expenses Plus Interest To Be Paid [Abstract] Life Settlement Contracts Investment Method Premiums Plus Expenses Plus Interest To Be Paid [Abstract] Total Premiums, Interest and Expenses: Amount of life insurance premiums, expense and interest anticipated to be paid after the fifth fiscal year following the latest fiscal year to keep the life settlement accounted for under the investment method contracts in force. Life Settlement Contracts Investment Method Premiums Plus Expenses Plus Interest To Be Paid After Year Five Total to be paid, thereafter Amount of cash paid for the net insurance benefits purchased through pledge agreement. Life Settlement Contracts Portion Of Pledge Agreement Paid In Cash Amount of cash paid for the net insurance benefits purchased through pledge agreement Face value of net insurance benefits purchased through pledge agreement. Life Settlement Contracts Purchased Through Pledge Agreement Face value of net insurance benefits purchased through pledge agreement First related party transaction. Related Party Transaction One [Member] January 8, 2014 [Member] Second related party transaction. Related Party Transaction Two [Member] January 13, 2014 [Member] Return of premium provisions on investments in net insurance benefits. Return Of Premium Provisions On Life Settlement Contracts Return of premium provisions on investments in net insurance benefits Ownership interest held by former shareholders of acquiree. Reverse Merger Shareholder Equity Interests Reverse merger, equity interests held by former shareholders Entity Well-known Seasoned Issuer Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Exercise Price [Abstract] Weighted Average Exercise Price Entity Voluntary Filers Share Based Compensation Arrangement By Share Based Payment Award Options Intrinsic Value [Abstract] Intrinsic Value Entity Current Reporting Status Share Based Compensation Arrangement By Share Based Payment Award Options Weighted Average Grant Date Fair Value [Abstract] Weighted Average Grant Date Fair Value Entity Filer Category The terms of Structuring and Consulting Agreement. Structuring And Consulting Agreement Terms Structuring and Consulting Agreement, terms Entity Public Float The total consideration that would be paid by the company if all net insurance benefits are provided under the asset transfer agreement. Total Consideration That Would Be Paid By Company If All Net Insurance Benefits Are Provided Under Asset Transfer Agreement Total consideration that would be paid by the company if all net insurance benefits are provided under the asset transfer agreement with Del Mar Financial, S.a.r.l. Entity Registrant Name Entity Central Index Key Tabular disclosure of life settlement contracts held as collateral based on the remaining life expectancy for each of the first five succeeding years from the date of the statement of financial position and thereafter, as well as in the aggregate including: (a) the number of life settlement contracts, (b) the carrying value of the life settlement contracts, and (c) the face value (death benefits) of the life insurance policies underlying the contracts, and (d) the life insurance premiums anticipated to be paid for each of the five succeeding fiscal years to keep the life settlement contracts in force as of the date of the most recent statement of financial position presented. Schedule of Life Settlement Contracts Investment Method Held as Collateral [Text Block] Schedule of Investments in Net Insurance Benefit Contracts Held As Collateral Number of life settlement contracts held as collateral accounted for under the investment method maturing in the next fiscal year following the latest fiscal year. Excludes interim and annual periods when interim periods are reported on a rolling approach, from latest balance sheet date. Life Settlement Contracts Investment Method Number of Contracts Held As Collateral Maturing in Next Twelve Months Number of interests in life settlement contracts, next twelve months, held as collateral Number of life settlement contracts held as collateral accounted for under the investment method maturing in the second fiscal year following the latest fiscal year. Excludes interim and annual periods when interim periods are reported on a rolling approach, from latest balance sheet date. Life Settlement Contracts Investment Method Number of Contracts Held as Collateral Maturing In Year Two Number of interests in life settlement contracts, year two, held as collateral Number of life settlement contracts held as collateral accounted for under the investment method maturing in the third fiscal year following the latest fiscal year. Excludes interim and annual periods when interim periods are reported on a rolling approach, from latest balance sheet date. Life Settlement Contracts Investment Method Number of Contracts Held as Collateral Maturing in Year Three Number of interests in life settlement contracts, year three, held as collateral Entity Common Stock, Shares Outstanding Number of life settlement contracts held as collateral accounted for under the investment method maturing in the fourth fiscal year following the latest fiscal year. Excludes interim and annual periods when interim periods are reported on a rolling approach, from latest balance sheet date. Life Settlement Contracts Investment Method Number of Contracts Held as Collateral Maturing in Year Number of interests in life settlement contracts, year four, held as collateral Number of life settlement contracts held as collateral accounted for under the investment method maturing in the fifth fiscal year following the latest fiscal year. Excludes interim and annual periods when interim periods are reported on a rolling approach, from latest balance sheet date. Life Settlement Contracts Investment Method Number of Contracts Held as Collateral Maturing in Year Five Number of interests in life settlement contracts, year five, held as collateral Number of life settlement contracts held as collateral accounted for under the investment method maturing after the fifth fiscal year following the latest fiscal year. Excludes interim and annual periods when interim periods are reported on a rolling approach, from latest balance sheet date. Life Settlement Contracts Investment Method Number of Contracts Held as Collateral Maturing after Year Five Number of interests in life settlement contracts, thereafter, held as collateral Number of life settlement contracts held as collateral accounted for under the investment method. Life Settlement Contracts Investment Method Number of Contracts Held as Collateral Number of interests in life settlement contracts, total, held as collateral Face value of the life insurance policies underlying the life settlement contracts held as collateral accounted for under the investment method maturing in the next fiscal year following the latest fiscal year. Excludes interim and annual periods when interim periods are reported on a rolling approach, from latest balance sheet date. Life Settlement Contracts Investment Method Face Value Held as Collateral Maturing in Next Twelve Months Face value of underlying policies, next twelve months, held as collateral Face value of the life insurance policies underlying the life settlement contracts held as collateral accounted for under the investment method maturing in the second fiscal year following the latest fiscal year. Excludes interim and annual periods when interim periods are reported on a rolling approach, from latest balance sheet date. Life Settlement Contracts Investment Method Face Value Held as Collateral Maturing in Year Two Face value of underlying policies, year two, held as collateral Face value of the life insurance policies underlying the life settlement contracts held as collateral accounted for under the investment method maturing in the third fiscal year following the latest fiscal year. Excludes interim and annual periods when interim periods are reported on a rolling approach, from latest balance sheet date. Life Settlement Contracts Investment Method Face Value Held as Collateral Maturing In Year Three Face value of underlying policies, year three, held as collateral Face value of the life insurance policies underlying the life settlement contracts held as collateral accounted for under the investment method maturing in the fourth fiscal year following the latest fiscal year. Excludes interim and annual periods when interim periods are reported on a rolling approach, from latest balance sheet date. Life Settlement Contracts Investment Method Face Value Held as Collateral Maturing in Year Four Face value of underlying policies, year four, held as collateral Face value of the life insurance policies underlying the life settlement contracts held as collateral accounted for under the investment method maturing in the fifth fiscal year following the latest fiscal year. Excludes interim and annual periods when interim periods are reported on a rolling approach, from latest balance sheet date. Life Settlement Contracts Investment Method Face Value Held as Collateral Maturing in Year Five Face value of underlying policies, year five, held as collateral Face value of the life insurance policies underlying the life settlement contracts held as collateral accounted for under the investment method maturing after the fifth fiscal year following the latest fiscal year. Excludes interim and annual periods when interim periods are reported on a rolling approach, from latest balance sheet date. Life Settlement Contracts Investment Method Face Value Held as Collateral Maturing after Year Five Face value of underlying policies, thereafter, held as collateral Face value (death benefits) of the life insurance policies underlying the life settlement contracts held as collateral accounted for under the investment method. Life Settlement Contracts Investment Method Face Value Held as Collateral Face value of underlying policies Face value of underlying policies, total, held as collateral Amount of life insurance premiums to keep the life settlement contracts held as collateral accounted for under the investment method in force anticipated to be paid in the next fiscal year following the latest fiscal year. Excludes interim and annual periods when interim periods are reported on a rolling approach, from latest balance sheet date. Life Settlement Contracts Held as Collateral Investment Method Premiums to be Paid in Next Twelve Months Premiums to be paid, year one Amount of life insurance expense and interest anticipated to be paid in the next fiscal year following the latest fiscal year to keep the life settlement contracts held as collateral accounted for under the investment method in force. Life Settlement Contracts Held as Collateral Investment Method Expenses Plus Interest in Next Twelve Months Expense + Interest to be paid, year one Amount of life insurance premiums, expense, and interest anticipated to be paid in the next fiscal year following the latest fiscal year to keep the life settlement contracts held as collateral accounted for under the investment method in force. Life Settlement ContractsHeld as Collateral Investment Method Premiums Plus Expenses Plus Interest to be Paid in Next Twelve Months Total to be paid, year one Amount of life insurance premiums to keep the life settlement contracts held as collateral accounted for under the investment method in force anticipated to be paid in the second fiscal year following the latest fiscal year. Excludes interim and annual periods when interim periods are reported on a rolling approach, from latest balance sheet date. Life Settlement Contracts Held as Collateral Investment Method Premiums to be Paid in Year Two Premiums to be paid, year two Amount of life insurance expense and interest anticipated to be paid in the second fiscal year following the latest fiscal year to keep the life settlement contracts held as collateral accounted for under the investment method in force. Life Settlement Contracts Held as Collateral Investment Method Expenses Plus Interest to be Paid in Year Two Expense + Interest to be paid, year two Amount of life insurance premiums, expense, and interest anticipated to be paid in the second fiscal year following the latest fiscal year to keep the life settlement contracts held as collateral accounted for under the investment method in force. Life Settlement Contracts Held as Collateral Investment Method Premiums Plus Expenses Plus Interest to be Paid in Year Two Total to be paid, year two Document Fiscal Year Focus Amount of life insurance premiums to keep the life settlement contracts held as collateral accounted for under the investment method in force anticipated to be paid in the third fiscal year following the latest fiscal year. Excludes interim and annual periods when interim periods are reported on a rolling approach, from latest balance sheet date. Life Settlement Contracts Held as Collateral Investment Method Premiums to be Paid in Year Three Premiums to be paid, year three Document Fiscal Period Focus Amount of life insurance expense and interest anticipated to be paid in the third fiscal year following the latest fiscal year to keep the life settlement contracts held as collateral accounted for under the investment method in force. Life Settlement Contracts Held as Collateral Investment Method Expenses Plus Interest to be Paid in Year Three Expense + Interest to be paid, year three Accounting Changes and Error Corrections [Text Block] CORRECTION OF AN ERROR RELATED TO THE ADOPTION OF AN ACCOUNTING PRINCIPLE Amount of life insurance premiums, expense, and interest anticipated to be paid in the third fiscal year following the latest fiscal year to keep the life settlement contracts held as collateral accounted for under the investment method in force. Life Settlement Contracts Held as Collateral Investment Method Premiums Plus Expenses Plus Interest to be Paid in Year Three Total to be paid, year three Amount of life insurance premiums to keep the life settlement contracts held as collateral accounted for under the investment method in force anticipated to be paid in the fourth fiscal year following the latest fiscal year. Excludes interim and annual periods when interim periods are reported on a rolling approach, from latest balance sheet date. Life Settlement Contracts Held as Collateral Investment Method Premiums to be Paid in Year Four Premiums to be paid, year four Amount of life insurance expense and interest anticipated to be paid in the fourth fiscal year following the latest fiscal year to keep the life settlement contracts held as collateral accounted for under the investment method in force. Life Settlement Contracts Held as Collateral Investment Method Expenses Plus Interest to be Paid in Year Four Expense + Interest to be paid, year four Amount of life insurance premiums, expense, and interest anticipated to be paid in the fourth fiscal year following the latest fiscal year to keep the life settlement contracts held as collateral accounted for under the investment method in force. Life Settlement Contracts Held as Collateral Investment Method Premiums Plus Expenses Plus Interest to be Paid in Year Four Total to be paid, year four Amount of life insurance premiums to keep the life settlement contracts held as collateral accounted for under the investment method in force anticipated to be paid in the fifth fiscal year following the latest fiscal year. Excludes interim and annual periods when interim periods are reported on a rolling approach, from latest balance sheet date. Life Settlement Contracts Held as Collateral Investment Method Premiums to be Paid in Year Five Premiums to be paid, year five Amount of life insurance expense and interest anticipated to be paid in the fifth fiscal year following the latest fiscal year to keep the life settlement accounted for under the investment method contracts held as collateral in force. Life Settlement Contracts Held as Collateral Investment Method Expenses Plus Interest to be Paid in Year Five Expense + Interest to be paid, year five Amount of life insurance premiums, expense, and interest anticipated to be paid in the fifth fiscal year following the latest fiscal year to keep the life settlement accounted for under the investment method contracts held as collateral in force. Life Settlement Contracts Held as Collateral Investment Method Premiums Plus Expenses Plus Interest to be Paid in Year Five Total to be paid, year five Amount of life insurance premiums anticipated to be paid to keep the life settlement contracts held as collateral accounted for under the investment method in force. Life Settlement Contracts Held as Collateral Investment Method Five Year Disclosure Premiums to be Paid Premiums to be paid, total Total amount of life insurance expense and interest anticipated to be paid to keep the life settlement accounted for under the investment method contracts held as collateral in force. Life Settlement Contracts Held as Collateral Investment Method Expenses Plus Interest to be Paid Total Expense + Interest, total Amount of life insurance premiums, expense and interest anticipated to be paid to keep the life settlement accounted for under the investment method contracts held as collateral in force. Life Settlement Contracts Held as Collateral Investment Method Premiums Plus Expenses Plus Interest to be Paid Premiums, interest and expenses, total Premiums, interest and expenses, total Legal Entity [Axis] Life Settlement Contracts Investment Method Number of Contracts Fiscal Year Maturity Held As Collateral [Abstract] Number of Interests in Life Settlement Contracts Held as Collateral: Document Type Life Settlement Contracts Investment Method Face Value Fiscal Year Maturity Held as Collateral [Abstract] Face Value of Underlying Policies Held as Collateral: Life Settlement Contracts Held as Collateral Investment Method Premiums to be Paid Fiscal Year Maturity [Abstract] Premiums: Amount of life insurance premiums to keep the life settlement contracts held as collateral accounted for under the investment method in force anticipated to be paid after the fifth fiscal year following the latest fiscal year. Excludes interim and annual periods when interim periods are reported on a rolling approach, from latest balance sheet date. Life Settlement Contracts Held as Collateral Investment Method Premiums to be Paid After Year Five Premiums to be paid, thereafter Life Settlement Contracts Held as Collateral Investment Method Expenses Plus Interest to be Paid Fiscal Year Maturity [Abstract] Expenses + Interest: Amount of life insurance expense and interest anticipated to be paid after the fifth fiscal year following the latest fiscal year to keep the life settlement held as collateral accounted for under the investment method contracts in force. Life Settlement Contracts Held as Collateral Investment Method Expenses Plus Interest to be Paid After Year Five Expense + Interst to be paid, thereafter Life Settlement Contracts Held as Collateral Investment Method Premiums Plus Expenses Plus Interest to be Paid [Abstract] Total Premiums, Interest and Expenses: Amount of life insurance premiums, expense and interest anticipated to be paid after the fifth fiscal year following the latest fiscal year to keep the life settlement accounted for under the investment method contracts held as collateral in force. Life Settlement Contracts Held as Collateral Investment Method Premiums Plus Expenses Plus Interest to be Paid After Year Five Total to be paid, thereafter As of the balance sheet date, the weighted average grant-date fair value of outstanding stock options that are fully vested or expected to vest. Share Based Compensation Arrangement by Share Based Payment Award Options Vested and Expected to Vest Outstanding Weighted Average Grant Date Fair Value Vested and expected to vest Represents the information pertaining to HFII Solutions, LLC. HF II Solutions LLC [Member] HFII [Member] The grant-date intrinsic value of options granted during the reporting period as calculated by applying the disclosed option pricing methodology. Share Based Compensation Arrangement by Share Based Payment Award Options Grants in Period Intrinsic Value Granted The combined value of the accumulated differences between the fair values on underlying shares and exercises prices to acquire such shares as of the grant date on options that were either forfeited or lapsed. Share Based Compensation Arrangement by Share Based Payment Award Options Forfeitures and Expirations in Period Intrinsic Value Cancelled/Expired Tabular disclosure of the future estimated premiums payments, other expenses and interest paid by external parties expected to be paid on the policies through the estimated death date, future cash flows to investors, as well as future estimated proceeds from policy maturities for insurance benefit contracts held as collateral. Schedule of Future Estimated Premiums Payments and Other Expenses Expected to be Paid on Insurance Benefit Contracts Held as Collateral [Table Text Block] Schedule of Estimated Premiums, Payments and Other Expenses Expected to be Paid on Insurance Benefit Contracts Held as Collateral LIQUIDITY AND CAPITAL REQUIREMENTS [Abstract] The information pertaining to disclosure of liquidity and capital requirements of the entity. Liquidity and Capital Requirements Disclosure [Text block] LIQUIDITY AND CAPITAL REQUIREMENTS The face value of the collateral held against cash advances. Face Value Of Collateral Against Cash Advances The interest rate on the convertible debenture. Convertible Debenture, Interest Rate Convertible debenture interest rate Borrowing capacity of the convertible debenture. Convertible Debenture Borrowing Capacity Convertible debenture borrowing capacity Amount borrowed under the convertible debenture. Convertible Debenture, Amount Borrowed Convertible debenture, amount borrowed Terms of conversion of the convertible debenture. Convertible Debenture, Terms of Conversion Convertible debenture, terms of conversion Shares vesting per month. Stock Options Shares Vesting Per Month Shares vesting per month Fair value of options outstanding Fair Value of Options Outstanding Fair Value of Options Outstanding Fair value of options outstanding SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] Option expense amortized. Option Expense Amortized Option expense amortized Stockholder in the Company. Stockholder [Member] Convertible Debenture Agreement Abstract. CONVERTIBLE DEBENTURE AGREEMENT [Abstract] Minimum price per share at which debenture may be converted. Convertible Debenture, Minimum Conversion Price Per Share Convertible debenture, minimum conversion price per share Ownership Percentage Interest In NIBs Ownership Percentage Interest In NIBs Ownership percentage interest in NIBs CORRECTION OF AN ERROR RELATED TO THE ADOPTION OF AN ACCOUNTING PRINCIPLE [Abstract] The collateral expressed as a percentage of NIBs. Collateral as Percentage of NIBs Collateral as percentage of NIBs Matured policy proceeds allocated to reimburse the Company for expense payments. Proceeds Allocated to Reimbursement Proceeds allocated to reimbursement Proceeds received from the matured insurance policy. Proceeds From Matured Policy Proceeds from matured policy Matured policy proceeds allocated to pay off note receivable. Proceeds Allocated to Note Receivable Payoff Proceeds allocated to note receivable payoff Matured policy proceeds allocated to refund advance payments Proceeds Allocated to Refund Advance Payments Proceeds allocated to refund advance payments Advance For Investments Cash Advances Rate. 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Adjustments to Subscription Receivable and Additional Paid in Capital Net increase or decrease in the maximum borrowing capacity under the credit facility without consideration of any current restrictions on the amount that could be borrowed or the amounts currently outstanding under the facility. 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[Abstract] Change in Asset/Liabilities Changes in Operating Assets and Liabilities Increase (Decrease) in Other Operating Assets Accrued Interest on NIBs Increase (Decrease) in Prepaid Expense Prepaid Expenses Interest Payable Interest Payable Interest Expense Interest Expense Interest Paid Cash Paid for Interest Interest Receivable Accrued Interest Income Accrued interest receivable Interest Income, Operating Interest Income on Investment in Net Insurance Benefits Accretion of interest income Investment Income, Interest Interest Income INVESTMENT IN NET INSURANCE BENEFITS [Abstract] Long-term Debt, Type [Axis] Long-term Debt, Type [Domain] Liabilities, Current Total Current Liabilities Liabilities Assumed Liabilities Assumed through the Merger Liabilities, Noncurrent Total Long-Term Liabilities Liabilities, Current [Abstract] Current Liabilities Liabilities Total Liabilities Liabilities, Noncurrent [Abstract] Long-Term Liabilities Liabilities and Equity [Abstract] LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities and Equity Total Liabilities and Stockholders' Equity Life Settlement Contracts, Investment Method, Carrying Amount Total Beginning Balance Investment in Net Insurance Benefits Life Settlement Contracts, Investment Method, Number of Contracts, Fiscal Year Maturity [Abstract] Number of Interests in Life Settlement Contracts: Life Settlement Contracts, Investment Method, Number of Contracts Number of interests in life settlement contracts, total Life Settlement Contracts, Investment Method, Face Value Face value of Net Insurance Benefits Face value of underlying policies, total Life Settlement Contracts, Investment Method, Face Value, Maturing after Year Five Face value of underlying policies, thereafter Life Settlement Contracts, Investment Method, Face Value, Fiscal Year Maturity [Abstract] Face Value of Underlying Policies: Life Settlement Contracts, Investment Method, Premiums to be Paid in Year Three Premiums to be paid, year three Life Settlement 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Note Payable-Related Party Notes, Loans and Financing Receivable, Gross, Current Face value of loan Notes Payable, Related Parties, Current Notes payable-related party loan Note Payable-Related Party Financing Receivable, Net Notes Receivable Operating Income (Loss) Income (Loss) from Operations Operating Loss Carryforwards, Expiration Date NOL beginning expiration date Operating Loss Carryforwards Cumulative NOL Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] ORGANIZATION AND BASIS OF PRESENTATION ORGANIZATION AND BASIS OF PRESENTATION [Abstract] Other Assets, Noncurrent Advance for Investment in Net Insurance Benefits Other Assets, Miscellaneous, Noncurrent Other Other Nonoperating Income (Expense) Other, net Other Notes Payable Maximum purchase price payable by promissory notes Payments for (Proceeds from) Loans Receivable Proceeds from Notes Receivable Payments for Repurchase of Common Stock Redemption of Temporary Equity Redemption of 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Outstanding, Basic and Diluted Weighted Average Number of Shares Outstanding Weighted Average Number of Shares Outstanding, Diluted Weighted Average Number of Shares Outstanding Fully Diluted Weighted Average Number of Shares Outstanding EX-101.PRE 12 sund-20151231_pre.xml XML 13 R1.htm IDEA: XBRL DOCUMENT v3.3.1.900
DOCUMENT AND ENTITY INFORMATION - shares
9 Months Ended
Dec. 31, 2015
Feb. 05, 2016
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Dec. 31, 2015  
Document Fiscal Year Focus 2016  
Document Fiscal Period Focus Q3  
Entity Registrant Name Sundance Strategies, Inc.  
Entity Central Index Key 0001171838  
Current Fiscal Year End Date --03-31  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   44,315,941
XML 14 R2.htm IDEA: XBRL DOCUMENT v3.3.1.900
Condensed Consolidated Balance Sheets - USD ($)
Dec. 31, 2015
Mar. 31, 2015
Current Assets    
Cash and Cash Equivalents $ 74,114 $ 336,370
Prepaid Expenses 3,750 1,875
Total Current Assets 77,864 338,245
Other Assets    
Investment in Net Insurance Benefits $ 28,690,516 22,544,635
Advance for Investment in Net Insurance Benefits 3,596,386
Notes Receivable 211,000
Other 16,428
Total Other Long-term Assets $ 28,690,516 26,368,449
Total Assets 28,768,380 26,706,694
Current Liabilities    
Accounts Payable 279,128 255,361
Accrued Expenses $ 826,665 181,917
Notes Payable 1,326,876
Note Payable-Related Party $ 1,500,000
Redeemed Common Stock Payable $ 750,000
Total Current Liabilities 1,855,793 $ 3,264,154
Long-Term Liabilities    
Note Payable-Related Party 2,667,000
Convertible Debenture 700,000
Accrued Expenses 109,800
Total Long-Term Liabilities 3,476,800
Total Liabilities $ 5,332,593 $ 3,264,154
Stockholders' Equity    
Preferred Stock, authorized 10,000,000 shares, par value $0.001; -0- shares issued and outstanding
Common Stock, authorized 500,000,000 shares, par value $0.001; 44,222,191 and 43,185,941 shares issued and outstanding, respectively $ 44,222 $ 43,186
Additional Paid In Capital $ 24,260,505 16,316,882
Additional Paid In Capital- Stock to be Issued 7,540,000
Accumulated Deficit $ (868,940) (457,528)
Total Stockholders' Equity 23,435,787 23,442,540
Total Liabilities and Stockholders' Equity $ 28,768,380 $ 26,706,694
XML 15 R3.htm IDEA: XBRL DOCUMENT v3.3.1.900
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2015
Mar. 31, 2015
Condensed Consolidated Balance Sheets [Abstract]    
Preferred Stock, shares authorized 10,000,000 10,000,000
Preferred Stock, par value per share $ 0.001 $ 0.001
Preferred Stock, shares issued 0 0
Preferred Stock, shares outstanding 0 0
Common Stock, shares authorized 500,000,000 500,000,000
Common Stock, par value per share $ 0.001 $ 0.001
Common Stock, shares issued 44,222,191 43,185,941
Common Stock, shares outstanding 44,222,191 43,185,941
XML 16 R4.htm IDEA: XBRL DOCUMENT v3.3.1.900
Condensed Consolidated Statements of Operations - USD ($)
3 Months Ended 9 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Condensed Consolidated Statements of Operations [Abstract]        
Interest Income on Investment in Net Insurance Benefits $ 1,090,031 $ 616,547 $ 2,777,501 $ 1,772,698
General and Administrative Expenses 1,549,676 526,797 3,043,267 1,726,169
Income (Loss) from Operations $ (459,645) 89,750 (265,766) 46,529
Other Income (Expense)        
Interest Income 4,568 5,241 13,388
Interest Expense $ (60,294) $ (200,270) $ (150,887) (233,442)
Other, net 6,303
Total Other Expense $ (60,294) $ (195,702) $ (145,646) (213,751)
Loss Before Income Taxes $ (519,939) $ (105,952) $ (411,412) $ (167,222)
Income Tax Provision
Net Loss $ (519,939) $ (105,952) $ (411,412) $ (167,222)
Basic and Diluted:        
Loss Per Share $ (0.01) $ (0.01) $ (0.01) $ (0.01)
Weighted Average Number of Shares Outstanding 44,315,941 43,185,941 44,029,347 43,122,354
XML 17 R5.htm IDEA: XBRL DOCUMENT v3.3.1.900
Condensed Consolidated Statements of Cash Flows - USD ($)
9 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Operating Activities    
Net Loss $ (411,412) $ (167,222)
Adjustments to reconcile to cash from operating activities:    
Share Based Compensation - Options 404,659 320,333
Accrued Interest on NIBs (2,777,501) (1,772,698)
Advance for Investments in Net Insurance Benefits (626,914) (794,598)
Refund of Advance for Investments in Net Insurance Benefits 854,920 904,274
Changes in Operating Assets and Liabilities    
Accrued Interest Income 16,428 (4,847)
Prepaid Expenses (1,875) (1,750)
Accounts Payable 23,767 75,339
Accrued Expenses 927,672 34,430
Net Cash from Operating Activities $ (1,590,256) (1,406,739)
Investing Activity    
Issuance of Note Receivable (150,000)
Proceeds from Notes Receivable $ 211,000 550,000
Net Cash from Investing Activity 211,000 400,000
Financing Activities    
Proceeds from Issuance of Notes Payable and Lines-of-Credit, Related Party 1,167,000 $ 1,272,000
Proceeds from Issuance of Convertible Debenture $ 700,000
Common Stock Issued for Cash $ 150,000
Redemption of Temporary Equity $ (750,000)
Net Cash from Financing Activities 1,117,000 $ 1,422,000
Net Change in Cash (262,256) 415,261
Cash at Beginning of Period 336,370 375,212
Cash at End of Period $ 74,114 790,473
Non Cash Financing & Investing Activities    
Notes Receivables Exchanged for Advance for Investment in NIBs 100,000
Cash Paid for Interest 81,621
Adjustments to Subscription Receivable and Additional Paid in Capital $ 1,500
Exchange Note Payable and Accrued Interest for Temporary Equity $ 1,500,000
Advanced funds paid converted to Net Insurance Benefits $ 3,368,380
XML 18 R6.htm IDEA: XBRL DOCUMENT v3.3.1.900
ORGANIZATION AND BASIS OF PRESENTATION
9 Months Ended
Dec. 31, 2015
ORGANIZATION AND BASIS OF PRESENTATION [Abstract]  
ORGANIZATION AND BASIS OF PRESENTATION

(1) ORGANIZATION AND BASIS OF PRESENTATION

 

The condensed consolidated unaudited interim financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The condensed consolidated financial statements and notes are presented as permitted on Form 10-Q and do not contain information included in the Company's annual statements and notes. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these condensed consolidated financial statements be read in conjunction with the March 31, 2015, audited consolidated financial statements and the accompanying notes thereto. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the Company's consolidated condensed financial statements and accompanying notes. Actual results could differ materially from those estimates. These condensed consolidated unaudited financial statements reflect all adjustments, including normal recurring adjustments which, in the opinion of management, are necessary to present fairly the operations and cash flows for the periods presented.

 

Sundance Strategies, Inc. (formerly known as Java Express, Inc.) was organized under the laws of the State of Nevada on December 14, 2001, and engaged in the retail selling of beverage products to the general public until these endeavors ceased in 2006; it had no material business operations from 2006, until its acquisition of ANEW LIFE, INC. (“ANEW LIFE”), a subsidiary of Sundance Strategies, Inc. (“Sundance Strategies,” the “Company” or “we”). The Company is engaged in the business of purchasing or acquiring and selling life insurance policies and residual interests in or financial products tied to life insurance policies, including notes, drafts, acceptances, open accounts receivable and other obligations representing part or all of the sales price of insurance, life settlements and related insurance contracts being traded in the secondary marketplace, often referred to as the “life settlements market.” Currently, the Company is focused on the purchase and sale of net insurance benefit contracts (“NIB”) on life insurance policies between the sellers and purchasers, but does not take possession or control of the policies. The purchasers acquire the life insurance policies at a discount to their face value for investment purposes. The purchasers have available credit to pay premiums and expenses on the underlying policies until settlement. On settlement, the Company receives the NIB after all borrowings, interest and expenses have been paid out of the settlement proceeds.

XML 19 R7.htm IDEA: XBRL DOCUMENT v3.3.1.900
NEW ACCOUNTING PRONOUNCEMENTS
9 Months Ended
Dec. 31, 2015
NEW ACCOUNTING PRONOUNCEMENTS [Abstract]  
NEW ACCOUNTING PRONOUNCEMENTS

(2) NEW ACCOUNTING PRONOUNCEMENTS

 
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2014-09 – Revenue from Contracts with Customers, which provides a single, comprehensive revenue recognition model for all contracts with customers. The core principal of this ASU is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB deferred the effective date of this standard. As a result, the standard and related amendments will be effective for the Company for its fiscal year beginning April 1, 2018, including interim periods within that fiscal year. Early application is permitted, but not before the original effective date of April 1, 2017. Entities are allowed to transition to the new standard by either retrospective application or recognizing the cumulative effect. The Company is currently evaluating the guidance, including which transition approach will be applied and the estimated impact it will have on our consolidated financial statements. The Company does not believe adoption of this ASU will have a material impact on its financial statements.

In August 2014, the FASB issued ASU 2014-15 Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern.
 
The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company's financial statements.

In April, 2015, the FASB issued ASU 2015-03: Simplifying the Presentation of Debt Issuance Costs (Subtopic 835-30). This update requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. Under current standards, debt issuance costs are generally recorded as an asset and amortization of these deferred financing costs is recorded in interest expense. Under the new standard, debt issuance costs will continue to be amortized over the life of the debt instrument and amortization will continue to be recorded in interest expense. ASU 2015-03 is effective for the Company on April 1, 2016, and will be applied on a retrospective basis.

In May 2015, the FASB issued ASU 2015-08, Business Combinations (Topic 805): Pushdown Accounting. This Accounting Standards Update amends various SEC paragraphs pursuant to the issuance of Staff Accounting Bulletin No.115. The Company notes the Update is effective immediately and will apply to the Company if the Company acquires a business.

In August 2015, the FASB issued ASU 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. This Update was issued to make some fairly minor wording adjustments to ASC 835-30. The new wording, presented as paragraph 835-30-S45-1, recognizes that ASU 2015-13 does not address the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. As stated below, ASU 2015-13 requires companies to recognize debt issuance costs as a reduction of the carrying amount of the associated debt liability. ASU 2015-15 states that debt issuance costs related to line-of-credit arrangements may be recognized as an asset and amortized over the term of the line-of-credit arrangement, even if the line-of-credit does not carry a balance. The Company notes that this guidance does apply to its reporting requirements and will implement the new guidance accordingly.

In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This Update, which is part of the FASB's larger Simplification Initiative project aimed at reducing the cost and complexity of certain areas of the accounting codification, requires that an acquirer recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustment amounts are determined. Furthermore, the acquirer should record in the same period's financial statements, the effect on earnings from any changes in depreciation, amortization or other items impacting income. These changes resulting from adjustments to provisional amounts should be calculated as if the accounting had been completed at the actual acquisition date. Lastly, the Update requires the acquirer to present separately on the face of the income statement or in the footnote disclosures the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the actual acquisition date. This Update is effective for fiscal years beginning after December 15, 2016. The amendments in this Update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this Update, with earlier application permitted. The amendments are effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. All entities have the option of adopting the new requirements as of an earlier date for financial statements that have not been previously issued. Applicable disclosures for a change in an accounting principle are required in the year of adoption, including interim periods. Early adoption of the amendments in this Update is permitted for financial statements that have not been previously issued. The Company notes that this guidance may apply to its reporting requirements and will implement the new guidance accordingly.

In November 2015, the FASB issued ASU 2015-17 regarding Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred income taxes by requiring all deferred income tax liabilities and assets be classified as noncurrent on the consolidated balance sheets. The guidance is
effective for fiscal years and interim reporting periods within those years beginning after December 15, 2016, with early adoption permitted. The standard would be effective for the Company's fiscal year beginning April 1, 2017, however, we expect to early adopt the provisions of this standard effective January 1, 2016 on a prospective basis. The Company does not expect the early adoption of this guidance to have a material effect on our consolidated financial statements.
 
In January 2016, the FASB issued ASI 2016-01 regarding Financial Instruments, which amended guidance on the classification and measurement of financial instruments. Under the new guidance, entities will be required to measure equity investments that are not consolidated or accounted for under the equity method at fair value with any changes in fair value recorded in net income, unless the entity has elected the new practicability exception. For financial liabilities measured using the fair value option, entities will be required to separately present in other comprehensive income the portion of the changes in fair value attributable to instrument-specific credit risk. Additionally, the guidance amends certain disclosure requirements associated with the fair value of financial instruments. The standard will be effective for the Company's fiscal year beginning April 1, 2018, including interim reporting periods within that fiscal year. The Company does not expect the early adoption of this guidance to have a material effect on our consolidated financial statements.

The Company has reviewed all other recently issued, but not yet adopted, accounting standards, in order to determine their effects, if any, on its results of operations, financial position or cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its financial statements.

XML 20 R8.htm IDEA: XBRL DOCUMENT v3.3.1.900
ADVANCE FOR INVESTMENT IN NET INSURANCE BENEFITS
9 Months Ended
Dec. 31, 2015
ADVANCE FOR INVESTMENT IN NET INSURANCE BENEFITS [Abstract]  
ADVANCE FOR INVESTMENT IN NET INSURANCE BENEFITS

(3) ADVANCE FOR INVESTMENT IN NET INSURANCE BENEFITS

On June 7, 2013, the Company entered into an Asset Transfer Agreement (the “Del Mar ATA”) with Del Mar Financial, S.a.r.l. (“Del Mar”). As part of the Del Mar ATA, the Company entered into a Structuring and Consulting Agreement with Europa Settlement Advisors Ltd. (respectively, the “Europa Agreement” and “Europa”).
 
The Del Mar ATA involved the purchase of certain life settlement assets consisting of the legal and net beneficial ownership interest in a portfolio of life insurance policies (the “NIBs”), among other assets that are consideration and collateral for certain cash advances and expense payments made by the Company. According to the Del Mar ATA, Del Mar, with the assistance of Europa, was obligated to convert the NIBs and other newly acquired NIBs into “Qualified NIBS.” As soon as Del Mar met its obligation to provide Qualified NIBs to the Company, any remaining NIBs and any other consideration and collateral would be returned or released to Del Mar. The original due date for the conversion was December 31, 2013, which date was subsequently extended several times. On April 30, 2015, the Company finalized an amendment to the Del Mar ATA and the related Europa Agreement to extend the deadline until August 31, 2015.
 
The remaining consideration and collateral under the Del Mar ATA, as of September 1, 2015, primarily consisted of approximately 81% of the NIBs associated with a portfolio of life settlement policies having a face value that originally totaled $94,000,000. During June 2015, one of the life settlement policies matured for $10,000,000 (the “Matured Policy”), lowering the remaining face value of such life settlement policies to $84,000,000. The premiums and expenses related to the maintenance of these life insurance policies are financed by a loan from a senior lender. 
 
As Del Mar was unable to provide the required amount of Qualified NIBs by the extended due date of August 31, 2015, effective September 1, 2015, the agreements with Del Mar and Europa were cancelled and the Company obtained full ownership and control of the collateral, which included the above mentioned approximately 81% of the NIBs associated with the $84,000,000 face value of life settlement policies and certain rights to net proceeds relating to the Matured Policy.
 

The bulk of the $10,000,000 proceeds paid in connection with the Matured Policy were used to repay loans secured by such Matured Policy. However, on September 10, 2015, the Company received $1,094,335 as a result of the rights associated with the Matured Policy. These proceeds were allocated $239,415 to pay off a note receivable (including interest), $547,308 to reimburse the Company for expense payments made to or on behalf of Del Mar and $307,612 as a refund of advance payments previously made to or on behalf of Del Mar as part of the Del Mar ATA. The $547,308 and $307,612 proceeds, which together total $854,920, were applied to reduce Advance for Investment in NIBs.

 
On September 30, 2015, the Company transferred the remaining balance of advances and expense payments to Del Mar, totaling $3,368,380, which approximates fair value. This amount was residing in advance for investment in NIBs before being transferred to investment in NIBs (see Note 4).
 
In addition to obtaining full and unrestricted rights to the NIBs upon termination of the Del Mar ATA and Europa Agreement, the Company also is entitled to receive liquidated damages from Del Mar in an amount equal to 100% of any cash advances made under the Del Mar ATA. The Company is currently determining the extent of the liquidated damages claim and Del Mar's ability to pay any such liquidated damages. The liquidated damages are computed pro rata, based upon the percentage of Qualified NIBs delivered by Del Mar under the Del Mar ATA.  The Company received $90,600,000 in Qualified NIBs or approximately 22.65% of the $400,000,000 in Qualified NIBs due under the Del Mar ATA.  Accordingly, once 22.65% of its costs and expenses are deducted, the Company would be entitled to receive the remaining amount of its costs and expenses, times two, as liquidated damages. As a result of the termination, the Company has no further payment obligations to Del Mar or fee obligations to Europa. The Company is determining whether Europa is liable to the Company for any damages related to Del Mar's failure to provide the required Qualified NIBs.
 
The liquidated damages claim is secured by all of the assets transferred to the Company under the Del Mar ATA and a Collateral Pledge Agreement executed by Del Mar on June 5, 2013, pledging all of Del Mar's remaining assets to the Company unless and until Del Mar completes all of its obligations under the Del Mar ATA. The Company is unsure what, if any, assets are currently held by Del Mar.

XML 21 R9.htm IDEA: XBRL DOCUMENT v3.3.1.900
INVESTMENT IN NET INSURANCE BENEFITS
9 Months Ended
Dec. 31, 2015
INVESTMENT IN NET INSURANCE BENEFITS [Abstract]  
INVESTMENT IN NET INSURANCE BENEFITS

(4) INVESTMENT IN NET INSURANCE BENEFITS

 
Investment in NIBs for the nine months ended December 31, 2015, and the fiscal year ended March 31, 2015, were as follows:

 

 

December 31, 2015

   

March 31, 2015

Beginning Balance

  $ 22,544,635     $ 12,243,411

Additional investments

                           3,368,380         7,846,746  

Accretion of interest income

                           2,777,501         2,454,478  

Distributions of investments

                   -     -

Impairment of investments

                 -     -

Total

  $ 28,690,516     $ 22,544,635

 

As mentioned in Note 3, the Company transferred $3,368,380 from advance for investment in NIBs into investment in NIBs on September 30, 2015.
 
The investment in NIBs is a residual economic beneficial interest in a portfolio of life insurance contracts that have been financed by an independent third party via a loan from a senior lender and insured via a mortality risk insurance product or mortality re-insurance (“MRI”). Future expected cash flow is defined as the net insurance proceeds from death benefits after senior debt repayment, mortality risk repayment and service provider or other third-party payments. The Company is not responsible for maintaining premiums or other expenses related to maintaining the underlying life insurance contracts. Therefore, the investment in NIBs balance on the Company's balance sheet does not increase when premiums or other expenses are paid. The Company holds a 100% interest in the NIBs relating to the underlying life insurance policies as of March 31, 2015. The Company holds between 81% and 100% in the NIBs relating to the underlying life insurance policies as of December 31, 2015.
  
The Company accounts for its investment in NIBs at the initial investment value increased for interest income and decreased for cash receipts received by the Company. At the time of transfer or purchase of an investment in NIBs, we estimate the future expected cash flows and determine the effective interest rate based on these estimated cash flows and our initial investment. Based on this effective interest rate, the Company calculates accretable income, which is recorded as interest income on investment in NIBs in the statement of operations. Subsequent to the purchase and on a regular basis, these future estimated cash flows are evaluated for changes. If the determination is made that the future estimated cash flows should be significantly adjusted, a revised effective yield is calculated prospectively based on the current amortized cost of the investment, including accrued accretion. Any positive or adverse change in cash flows that does not result in the recognition of an “other-than-temporary impairment” (“OTTI”) results in a prospective increase or decrease in the effective interest rate used to recognize interest income. We have not recognized any significant adverse change in future estimated cash flows relating to our investment in NIBs from January 31, 2013 (inception) to the period ended December 31, 2015.
 
During July, 2015, a group of persons located in the United States (the “Purchasers”) acquired the entities that owned all of the portfolios of life insurance contracts underlying the Company's NIBs. The Purchasers have also agreed to amend the NIBs agreements to provide greater disclosure to the Company and limit permitted expenses to be paid prior to payments to the NIBs holders, pending certain regulatory and tax approvals. In connection with this purchase, the Purchasers and the respective owners of these portfolios entered into a Settlement Agreement releasing such owners and their managers from liability related to their ownership and management of the entities that owned the respective portfolios of life insurance contracts. The Purchasers further required releases from the Company and the payment of certain accrued expenses. Accordingly, effective as of July 17, 2015, the Purchasers acquired all of the ownership interests in the entities that owned all of the portfolios of life insurance contracts underlying the Company's NIBs from their prior owners and executed a Settlement Agreement with such owners and the Company in relation to these matters. The NIBs amendments are in process, and the Company believes the NIBs amendments will be in effect within the next three months. The Company and Purchasers agreed to indemnify the prior owners of such portfolios against future claims in connection with the issuance of the NIBs or their ownership or management of the entities sold, based on actions that occurred prior to this sale to the Purchasers. During the three months ended December 31, 2015, the Company accrued for an $826,665 obligation related to the ownership change, which is recorded in General and Administrative Expenses. Management of the Company is presently not aware of the existence of any additional payments owed. Neither the purchase of these entities nor the Settlement Agreement resulted in any material change in our NIBs ownership interest. The Company was supportive of the Purchasers acquiring the entities that owned the portfolios of life insurance contracts underlying the Company's NIBs and was willing to provide the indemnification because it believes this ownership change will result in a reduction of costs and expenses associated with ownership of the NIBs, which should increase their intrinsic value.

XML 22 R10.htm IDEA: XBRL DOCUMENT v3.3.1.900
NOTES PAYABLE AND LINES-OF-CREDIT, RELATED PARTY
9 Months Ended
Dec. 31, 2015
NOTES PAYABLE AND LINES-OF-CREDIT, RELATED PARTY [Abstract]  
NOTES PAYBALE AND LINES-OF-CREDIT, RELATED PARTY

(5) NOTES PAYABLE AND LINES-OF-CREDIT, RELATED PARTY

 

As of December 31, 2015, the Company had borrowed $2,667,000 from related parties under notes payable and lines-of-credit Agreements that allow for borrowings of up to $3,245,000 through the earlier of June 30, 2017, or when the Company completes a successful equity raise, at which time principal and interest is due in full. The notes payable and lines-of-credit incur interest at 7.5 percent, allow for origination fees and are collateralized by Advance for Investment in NIBs.  The Company borrowed $1,367,000 under these agreements during the nine months ended December 31, 2015. The Company also repaid $200,000 during the nine months ended December 31, 2015.  The related parties include a person who is the Chairman of the Board of Directors and a stockholder and Radiant Life, LLC, an entity partially owned by the Chairman of the Board of Directors. See Note 10 for amendment of this agreement subsequent to period end.

XML 23 R11.htm IDEA: XBRL DOCUMENT v3.3.1.900
NOTES PAYABLE TRANSFERRED TO REDEEMED COMMON STOCK PAYABLE
9 Months Ended
Dec. 31, 2015
NOTES PAYABLE TRANSFERRED TO REDEEMED COMMON STOCK PAYABLE [Abstract]  
NOTES PAYABLE TRANSFERRED TO REDEEMED COMMON STOCK PAYABLE

(6) NOTES PAYABLE TRANSFERRED TO REDEEMED COMMON STOCK PAYABLE

 
At 
March 31, 2014, the Company owed $1,455,904, including accrued interest for notes payable. During the year ended March 31, 2015, the Company had accrued an additional $37,350 in interest. The note incurred interest at 4%, was collateralized by NIBs and was due April 2015. During the three months ended June 30, 2015, the note payable and related accrued interest was converted to temporary equity through the issuance of 187,500 shares of common stock with a redemption feature (See Part II, Item 5, below). On June 9, 2015, the holder of the redemption feature exercised a portion of the redemption right relating to 93,750 shares and, as a result, the holder accepted the Company's redemption payment of $750,000. The redemption feature on the remaining 93,750 shares was eligible to be exercised by the holders on October 31, 2015. The holders of the redemption feature exercised the redemption feature on October 31, 2015, thus requiring the Company to pay the redemption feature, and the Company originally had elected to exercise its 45 day Cure Period to make the redemption payment of $750,000 on or before December 15, 2015, in consideration of the cancellation of the 93,750 common shares. As a result of the redemption feature being exercised by the holder, the $750,000 associated with the redemption has been reclassified from Temporary Equity to Redeemed Common Stock Payable. To date the cure period with the holder of the redemption feature has expired. The Company and the redemption holder are negotiating the terms and conditions of an extension agreement and anticipate completion by February 15, 2016.

XML 24 R12.htm IDEA: XBRL DOCUMENT v3.3.1.900
CONVERTIBLE DEBENTURE AGREEMENT
9 Months Ended
Dec. 31, 2015
CONVERTIBLE DEBENTURE AGREEMENT [Abstract]  
CONVERTIBLE DEBENTURE AGREEMENT

(7) CONVERTIBLE DEBENTURE AGREEMENT
 

On June 2, 2015, the Company entered into an 8% Convertible Debenture Agreement that allows for borrowings of up to $3,000,000 through June 2, 2016, at which time principal and interest is due in full. On June 2, 2016, the holder can elect to convert the outstanding principal and accrued interest to unregistered, restricted common stock of the Company. The number of shares issuable at conversion shall be determined by the quotient obtained by dividing the outstanding principal and accrued and unpaid interest by 90% of the 90 day average closing price of the Company's common stock from the date the notice of conversion is received; and the price at which the Debenture may be converted will be no lower than $1.00 per share.

As of December 31, 2015, the Company owed $700,000 under the agreement. Management has concluded there is currently no beneficial conversion feature associated with this instrument, as the conversion date is a year after the agreement was initiated and is also contingent. See Note 10 for amendment of this agreement subsequent to period end.

XML 25 R13.htm IDEA: XBRL DOCUMENT v3.3.1.900
LIQUIDITY AND CAPITAL REQUIREMENTS
9 Months Ended
Dec. 31, 2015
LIQUIDITY AND CAPITAL REQUIREMENTS [Abstract]  
LIQUIDITY AND CAPITAL REQUIREMENTS

(8)  LIQUIDITY AND CAPITAL REQUIREMENTS

 

Under the current business plan, the Company purchases life insurance policies and residual interests in or financial products tied to life insurance policies when they fit its model and its cash flows are sufficient to fund those purchases (with exception of the Del Mar ATA wherein the Company committed to purchase a certain number of Qualified NIBs as Del Mar made them available). The Company expects to finance NIB purchases, as well as its operating working capital requirements, with proceeds from planned public and/or private offerings of its securities and debt financing. There can be no assurance that the Company will be successful in the anticipated equity and debt offerings or that it will be successful in raising additional capital in the future on terms acceptable to the Company, or at all.

If the Company is unable to raise sufficient capital through the planned securities and debt offerings or other alternative sources of financing, management will curtail NIB purchases. Under this plan, expenditures for NIBs will be curtailed. The Company believes that it will be able to fund its operating working capital requirements with existing lines-of-credit and debentures agreements.

The accompanying financial statements have been prepared on a going concern basis under which the Company is expected to be able to realize its assets and satisfy its liabilities in the normal course of business. To continue as a going concern beyond the period ended December 31, 2016, and in order to continue to purchase NIBs, the Company will need to complete planned equity and debt offerings or obtain alternative sources of financing. Absent additional financing, the Company will not have the resources to execute its current business plan.

XML 26 R14.htm IDEA: XBRL DOCUMENT v3.3.1.900
STOCK OPTIONS
9 Months Ended
Dec. 31, 2015
STOCK OPTIONS [Abstract]  
STOCK OPTIONS

(9) STOCK OPTIONS

 

On July 22, 2015, the Board of Directors approved an amendment to modify the vesting schedule for stock options issued to an executive.  The amendment clarified that the option to purchase 400,000 shares of the Company's $0.001 par value common stock at $5.00 per share, with a five year term, expiring March 31, 2018, was at a vesting rate of 11,111 stock options monthly, commencing with October, 2013, and ending with September 30, 2016, subject to continued employment with the Company. As a result of this modification, the Company recorded a true-up amortization expense of $98,655 during the three months ended September 30, 2015, to adjust the amortization of the stock options to the amended vesting schedule as of the modification date of July 22, 2015.  In addition, the Company adjusted the going forward quarterly amortization, beginning with the three months ended September 30, 2015, of the stock options from $73,202 to $78,728.  No incremental value was applied to the amended stock options and, therefore, the original grant date fair value continues to be applicable.

XML 27 R15.htm IDEA: XBRL DOCUMENT v3.3.1.900
SUBSEQUENT EVENTS
9 Months Ended
Dec. 31, 2015
SUBSEQUENT EVENTS [Abstract]  
SUBSEQUENT EVENTS

(10) SUBSEQUENT EVENTS

On February 4, 2016, the Notes Payable and Lines-of-Credit Agreement – Related Party (See Note 5) was amended to allow for increased borrowings of $1,985,000. With the new increase in effect, the total borrowings allowed from the related party entities was increased from $3,245,000 to $5,230,000. All other terms of the Agreement remain in effect. The related parties include a person who is the Chairman of the Board of Directors and a stockholder and Radiant Life, LLC, an entity partially owned by the Chairman of the Board of Directors.

On February 2, 2016, the Convertible Debenture Agreement (See note 7) was amended to extend the due date from June 2, 2016 to May 31, 2017. All other terms of the Agreement remain in effect.

XML 28 R16.htm IDEA: XBRL DOCUMENT v3.3.1.900
INVESTMENT IN NET INSURANCE BENEFITS (Tables)
9 Months Ended
Dec. 31, 2015
INVESTMENT IN NET INSURANCE BENEFITS [Abstract]  
Summary of Investments in Net Insurance Benefits
 

December 31, 2015

   

March 31, 2015

Beginning Balance

  $ 22,544,635     $ 12,243,411

Additional investments

                           3,368,380         7,846,746  

Accretion of interest income

                           2,777,501         2,454,478  

Distributions of investments

                   -     -

Impairment of investments

                 -     -

Total

  $ 28,690,516     $ 22,544,635
XML 29 R17.htm IDEA: XBRL DOCUMENT v3.3.1.900
ADVANCE FOR INVESTMENT IN NET INSURANCE BENEFITS (Narrative) (Details) - USD ($)
1 Months Ended 9 Months Ended
Sep. 10, 2015
Jun. 30, 2015
Dec. 31, 2015
Dec. 31, 2014
Sep. 30, 2015
Aug. 31, 2015
May. 31, 2015
ADVANCE FOR INVESTMENT IN NET INSURANCE BENEFITS [Abstract]              
Collateral as Percentage of NIBs     81.00%        
Face Value Of Collateral Against Cash Advances         $ 3,368,380 $ 84,000,000 $ 94,000,000
Contracts that matured during the period   $ 10,000,000          
Proceeds from matured policy $ 1,094,335            
Proceeds allocated to note receivable payoff 239,415            
Proceeds allocated to reimbursement 547,308            
Proceeds allocated to refund advance payments $ 307,612            
Proceeds allocated to reduce advance for Investments in NIBs     $ 854,920 $ 904,274      
Advance for investments, cash advances, rate     100.00%        
Net insurance benefits received     $ 90,600,000        
Net insurance benefits, amount received, percentage     22.65%        
Net insurance benefits, future amount     $ 400,000,000        
XML 30 R18.htm IDEA: XBRL DOCUMENT v3.3.1.900
INVESTMENT IN NET INSURANCE BENEFITS (Summary of Investments in Net Insurance Benefits) (Details) - USD ($)
3 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Mar. 31, 2015
INVESTMENT IN NET INSURANCE BENEFITS [Abstract]          
Beginning Balance     $ 22,544,635 $ 12,243,411 $ 12,243,411
Additional investments     3,368,380   7,846,746
Accretion of interest income $ 1,090,031 $ 616,547 $ 2,777,501 $ 1,772,698 $ 2,454,478
Distributions of investments      
Impairment of investments      
Total $ 28,690,516   $ 28,690,516   $ 22,544,635
Transfers from Advance for Investment in NIBs     $ 3,368,380  
XML 31 R19.htm IDEA: XBRL DOCUMENT v3.3.1.900
INVESTMENT IN NET INSURANCE BENEFITS (Narrative) (Details) - USD ($)
Dec. 31, 2015
Mar. 31, 2015
Schedule of Investments [Line Items]    
Ownership Percentage Interest In NIBs 100.00%  
Accrued obligation related to ownership change $ 826,665 $ 181,917
Minimum [Member]    
Schedule of Investments [Line Items]    
Ownership Percentage Interest In NIBs 81.00%  
Maximum [Member]    
Schedule of Investments [Line Items]    
Ownership Percentage Interest In NIBs 100.00%  
XML 32 R20.htm IDEA: XBRL DOCUMENT v3.3.1.900
NOTES PAYABLE AND LINES-OF-CREDIT, RELATED PARTY (Details) - Stockholder [Member]
9 Months Ended
Dec. 31, 2015
USD ($)
Related Party Transaction [Line Items]  
Long-term Line of Credit $ 2,667,000
Line of Credit Facility, Maximum Borrowing Capacity $ 3,245,000
Related party note interest rate 7.50%
Proceeds from Lines of Credit $ 1,367,000
Repayments of Lines of Credit $ 200,000
XML 33 R21.htm IDEA: XBRL DOCUMENT v3.3.1.900
NOTES PAYABLE TRANSFERRED TO REDEEMED COMMON STOCK PAYABLE (Details)
3 Months Ended 12 Months Ended
Jun. 09, 2015
USD ($)
shares
Jun. 30, 2015
item
Mar. 31, 2015
USD ($)
Dec. 31, 2015
USD ($)
Mar. 31, 2014
USD ($)
Debt Instrument [Line Items]          
Number of shares repurchased during the period | shares 93,750        
Value of shares repurchased during the period $ 750,000        
Mandatorily Redeemable Common Stock liability     $ 750,000  
NIB-Collateralized Note Payable [Member]          
Debt Instrument [Line Items]          
Notes Payable, including accrued interest         $ 1,455,904
Interest Payable     $ 37,350    
Interest rate     4.00%    
Maturity date     Apr. 01, 2015    
Number of shares issued on conversion | item   187,500      
XML 34 R22.htm IDEA: XBRL DOCUMENT v3.3.1.900
CONVERTIBLE DEBENTURE AGREEMENT (Details)
9 Months Ended
Dec. 31, 2015
USD ($)
$ / shares
CONVERTIBLE DEBENTURE AGREEMENT [Abstract]  
Convertible debenture interest rate 8.00%
Convertible debenture borrowing capacity $ 3,000,000
Convertible debenture, terms of conversion
The number of shares issuable at conversion shall be determined by the quotient obtained by dividing the outstanding principal and accrued and unpaid interest by 90% of the 90 day average closing price of the Company's common stock from the date the notice of conversion is received
Convertible debenture, minimum conversion price per share | $ / shares $ 1.00
Convertible debenture, amount borrowed $ 700,000
XML 35 R23.htm IDEA: XBRL DOCUMENT v3.3.1.900
STOCK OPTIONS (Narrative) (Details) - USD ($)
3 Months Ended
Jul. 22, 2015
Sep. 30, 2015
Dec. 31, 2015
Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Common Stock, par value per share     $ 0.001 $ 0.001
Option expense amortized   $ 98,655    
Quarterly amortization expense going forward   78,728    
Scenario, Previously Reported [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Quarterly amortization expense going forward   $ 73,202    
Stock Options [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock options granted 400,000      
Common Stock, par value per share $ 0.001      
Exercise price $ 5.00      
Stock option term 5 years      
Shares vesting per month 11,111      
XML 36 R24.htm IDEA: XBRL DOCUMENT v3.3.1.900
SUBSEQUENT EVENTS (Details) - Stockholder [Member] - USD ($)
Feb. 04, 2016
Dec. 31, 2015
Subsequent Event [Line Items]    
Maximum amount borrowed under line of credit   $ 3,245,000
Subsequent Event [Member]    
Subsequent Event [Line Items]    
Increase in maximum borrowing capacity $ 1,985,000  
Maximum amount borrowed under line of credit $ 5,230,000  
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