NOTES PAYABLE, RELATED PARTY

6 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

NOTES PAYABLE, RELATED PARTY

(6) NOTES PAYABLE, RELATED PARTY

As of both September 30, 2022, and March 31, 2022, the Company had borrowed $3,001,808, excluding accrued interest, from related parties. The interest associated with the Notes Payable, Related Party of $905,371 and $767,358 is recorded on the balance sheet as an Accrued Expense obligation at September 30, 2022 and March 31, 2021, respectively.

Related Party Promissory Notes

As of both September 30, 2022 and March 31, 2022, the Company owed $826,000 under the unsecured promissory notes from Mr. Dickman. The promissory notes bear interest at a rate of 8% annually. The notes are due July 31, 2023, or at the immediate time when alternative financing or other proceeds are received. During the six months ended September 30, 2022, the Company neither borrowed any additional funds under this agreement nor made any principal repayments. As of September 30, 2022, accrued interest on the notes totaled $265,727. In the event the Company completes a successful equity raise all principal and interest on the notes are due in full at that time. As discussed in Note 4, a provision to the lending agreement provides the related party lender with common stock warrants upon the lenders extension of a maturity due date or upon the loaning of additional monies. No new warrants were issued during the six months ended September 30, 2022. The total number of warrants issued to the related party lender was 1,690,583 as of September 30, 2022 (see Note 4 for further details on these warrants).

On July 29, 2021, the Company entered into an unsecured promissory note agreement with Radiant Life, LLC. This agreement was in conjunction with the Company borrowing $50,000 of Notes Payable, Related Party on the date of the agreement, and is not part of the existing note payable and lines of credit agreement the Company has with Radiant Life, LLC that is outlined below in this Note 6. The $50,000 promissory note bears interest at a rate of 8% annually and was due on July 29, 2022. On August 3, 2022, the promissory note was amended to extend the due date from July 29, 2022 to July 29, 2023, or at the immediate time when alternative financing or other proceeds are received. As of September 30, 2022, accrued interest on the note totaled $4,917.

SUNDANCE STRATEGIES, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

September 30, 2022

Related Party Note Payable and Line of Credit Agreements

As of both September 30, 2022 and March 31, 2022, the Company owed $1,066,300, exclusive of accrued interest, under the note payable and line of credit agreement with the Chairman of the Board of Directors and a stockholder. The note is due November 30, 2023 or at the immediate time when alternative financing or other proceeds are received. As of September 30, 2022, the agreement allowed for borrowings of up to $4,600,000. During the six months ended September 30, 2022, the Company neither borrowed any additional funds under this agreement nor made any principal repayments. The note payable and line of credit agreement incurs interest at 7.5% per annum and are collateralized by the Company’s NIBS, if any. As of September 30, 2022, accrued interest on this note totaled $262,276. As discussed in Note 4, a provision to the lending agreement provides the related party lender with common stock warrants upon the lenders extension of a maturity due date or upon the loaning of additional monies. No new warrants were issued during the six months ended September 30, 2022. The total number of warrants issued to the related party lender was 2,380,150 as of September 30, 2022 (see Note 4 for further details on these warrants).

As of September 30, 2022 and March 31, 2021, the Company owed $1,059,508 in principle under the note payable and lines of credit agreement with Radiant Life, LLC. The agreement allows for borrowings of up to $2,130,000. The principal and interest on the note are due November 30, 2023 or at the immediate time when alternative financing or other proceeds are received. The note payable and line of credit agreement incurs interest at 7.5% per annum and is collateralized by the Company’s NIBS, if any. During the six months ended September 30, 2022 the Company neither borrowed nor repaid any principal under this agreement. As of September 30, 2022, accrued interest on this agreement totaled $372,450. As discussed in Note 4, a provision to the lending agreement provides the related party lender with common stock warrants upon the lenders extension of a maturity due date or upon the loaning of additional monies. No new warrants were issued during the six months ended September 30, 2022. The total number of warrants issued to the related party lender was 1,679,508 as of September 30, 2022 (see Note 4 for further details on these warrants).