2016 Q1 Form 10-Q Financial Statement

#000091228216000555 Filed on February 09, 2016

View on sec.gov

Income Statement

Concept 2016 Q1 2015 Q4 2015 Q1
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $550.0K $1.550M $610.0K
YoY Change -9.84% 192.45% -33.7%
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization
YoY Change
% of Gross Profit
Operating Expenses -$580.0K $460.0K -$70.00K
YoY Change 728.57% -611.11% -200.0%
Operating Profit -$459.6K
YoY Change -612.14%
Interest Expense -$80.00K $60.29K -$50.00K
YoY Change 60.0% -69.89% 150.0%
% of Operating Profit
Other Income/Expense, Net $0.00 -$60.29K $0.00
YoY Change -69.19% -100.0%
Pretax Income $500.0K -$519.9K $20.00K
YoY Change 2400.0% 390.73% -122.22%
Income Tax $0.00 $0.00
% Of Pretax Income 0.0% 0.0%
Net Earnings $500.0K -$519.9K $20.00K
YoY Change 2400.0% 390.73% -122.22%
Net Earnings / Revenue
Basic Earnings Per Share
Diluted Earnings Per Share $10.12K -$11.73K $463.20
COMMON SHARES
Basic Shares Outstanding 44.32M shares 44.32M shares 43.19M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2016 Q1 2015 Q4 2015 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $20.00K $70.00K $340.0K
YoY Change -94.12% -91.14% -10.53%
Cash & Equivalents $20.00K $74.11K $336.4K
Short-Term Investments
Other Short-Term Assets $0.00 $0.00 $0.00
YoY Change
Inventory
Prepaid Expenses $3.750K $1.875K
Receivables
Other Receivables
Total Short-Term Assets $30.00K $77.86K $338.2K
YoY Change -91.13% -90.2% -10.33%
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $29.82M $28.69M $26.14M
YoY Change 14.08% 63.1% 65.13%
Other Assets $0.00 $3.596M
YoY Change -100.0% 0.32%
Total Long-Term Assets $29.82M $28.69M $26.37M
YoY Change 13.09% 59.65% 57.87%
TOTAL ASSETS
Total Short-Term Assets $30.00K $77.86K $338.2K
Total Long-Term Assets $29.82M $28.69M $26.37M
Total Assets $29.85M $28.77M $26.71M
YoY Change 11.77% 53.31% 56.36%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $350.0K $279.1K $255.4K
YoY Change 37.06% 117.64% 382.59%
Accrued Expenses $0.00 $826.7K $181.9K
YoY Change -100.0% 405.74%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $1.330M
YoY Change -100.0% -100.0%
Long-Term Debt Due $0.00 $1.500M
YoY Change -100.0% 1566.67%
Total Short-Term Liabilities $1.100M $1.856M $3.264M
YoY Change -66.3% -37.74% 2183.98%
LONG-TERM LIABILITIES
Long-Term Debt $4.520M $3.370M $0.00
YoY Change -100.0%
Other Long-Term Liabilities $190.0K $110.0K
YoY Change
Total Long-Term Liabilities $4.710M $3.477M
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $1.100M $1.856M $3.264M
Total Long-Term Liabilities $4.710M $3.477M
Total Liabilities $5.810M $5.333M $3.264M
YoY Change 77.99% 78.91% 104.16%
SHAREHOLDERS EQUITY
Retained Earnings -$868.9K -$457.5K
YoY Change 81.78% 47.21%
Common Stock $24.30M $16.36M
YoY Change 56179.18% 8.39%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $24.03M $23.44M $23.44M
YoY Change
Total Liabilities & Shareholders Equity $29.85M $28.77M $26.71M
YoY Change 11.77% 53.31% 56.36%

Cashflow Statement

Concept 2016 Q1 2015 Q4 2015 Q1
OPERATING ACTIVITIES
Net Income $500.0K -$519.9K $20.00K
YoY Change 2400.0% 390.73% -122.22%
Depreciation, Depletion And Amortization
YoY Change
Cash From Operating Activities -$1.200M -$780.0K -$590.0K
YoY Change 103.39% -510.53% -32.18%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities $0.00 $230.0K $0.00
YoY Change -253.33%
Cash From Investing Activities $0.00 $230.0K $0.00
YoY Change -253.33%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 1.150M 540.0K 140.0K
YoY Change 721.43% -14.29% -87.5%
NET CHANGE
Cash From Operating Activities -1.200M -780.0K -590.0K
Cash From Investing Activities 0.000 230.0K 0.000
Cash From Financing Activities 1.150M 540.0K 140.0K
Net Change In Cash -50.00K -10.00K -450.0K
YoY Change -88.89% -101.49% -280.0%
FREE CASH FLOW
Cash From Operating Activities -$1.200M -$780.0K -$590.0K
Capital Expenditures
Free Cash Flow
YoY Change

Facts In Submission

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us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
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<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <p style="margin: 0pt; font-family: 'times new roman';"><font style="font-family: 'Times New Roman'; font-size: 10pt;"><strong>(2) NEW ACCOUNTING PRONOUNCEMENTS</strong></font></p> <p style="margin: 0pt; font-family: 'times new roman';">&#160;<br/><font style="font-size: 10pt;">In May 2014, the Financial Accounting Standards Board (&#147;FASB&#148;) issued Accounting Standard Update (&#147;ASU&#148;) 2014-09 &#150; 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.</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. The new standard is effective for fiscal years, and interim periods within those fiscal years,&#160;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.</font></p> <p><font style="font-size: 10pt;">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.</font></p> <p><font style="font-size: 10pt;">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.</font></p> <p><font style="font-size: 10pt;">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.</font></p> <p><font style="font-size: 10pt;">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.</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. 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.<br/>&#160;<br/>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.</font></p> <p><font style="font-size: 10pt;">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.</font></p> </div>
us-gaap Impairment Of Investments
ImpairmentOfInvestments
USD
CY2015Q3 sund Proceeds Allocated To Reimbursement
ProceedsAllocatedToReimbursement
547308 USD
CY2015Q3 sund Proceeds Allocated To Note Receivable Payoff
ProceedsAllocatedToNoteReceivablePayoff
239415 USD
CY2015Q3 sund Proceeds Allocated To Refund Advance Payments
ProceedsAllocatedToRefundAdvancePayments
307612 USD
CY2015Q3 sund Face Value Of Collateral Against Cash Advances
FaceValueOfCollateralAgainstCashAdvances
3368380 USD
CY2014Q1 us-gaap Life Settlement Contracts Investment Method Carrying Amount
LifeSettlementContractsInvestmentMethodCarryingAmount
12243411 USD
us-gaap Payments To Acquire Investments
PaymentsToAcquireInvestments
3368380 USD
CY2015 us-gaap Payments To Acquire Investments
PaymentsToAcquireInvestments
7846746 USD
CY2015 us-gaap Interest Income Operating
InterestIncomeOperating
2454478 USD
sund Distribution Of Life Settlement Contract Investments
DistributionOfLifeSettlementContractInvestments
USD
CY2015 sund Distribution Of Life Settlement Contract Investments
DistributionOfLifeSettlementContractInvestments
USD
CY2015Q4 sund Ownership Percentage Interest In Ni Bs
OwnershipPercentageInterestInNIBs
1.00 pure
CY2015Q4 sund Advance For Investments Cash Advances Rate
AdvanceForInvestmentsCashAdvancesRate
1.00 pure
sund Net Insurance Benefits Received
NetInsuranceBenefitsReceived
90600000 USD
sund Percentage Of Net Insurance Benefits Received
PercentageOfNetInsuranceBenefitsReceived
0.2265 pure
CY2015Q4 sund Net Insurance Benefits Future Amount
NetInsuranceBenefitsFutureAmount
400000000 USD
CY2015Q2 us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
93750 shares
CY2015Q2 us-gaap Stock Repurchased During Period Value
StockRepurchasedDuringPeriodValue
750000 USD
CY2015Q3 sund Option Expense Amortized
OptionExpenseAmortized
98655 USD
CY2015Q3 sund Quarterly Amortization Expense Going Forward
QuarterlyAmortizationExpenseGoingForward
78728 USD
dei Entity Registrant Name
EntityRegistrantName
Sundance Strategies, Inc.
dei Entity Central Index Key
EntityCentralIndexKey
0001171838
dei Document Type
DocumentType
10-Q
sund Liquidity And Capital Requirements Disclosure Textblock
LiquidityAndCapitalRequirementsDisclosureTextblock
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6"></w:LsdException> <w:LsdException Locked="false" Priority="49" Name="List Table 4 Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="50" Name="List Table 5 Dark Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="51" Name="List Table 6 Colorful Accent 6"></w:LsdException> <w:LsdException Locked="false" Priority="52" Name="List Table 7 Colorful Accent 6"></w:LsdException> </w:LatentStyles> </xml><![endif]--> <!-- [if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman",serif;} </style> <![endif]--></b></font></p> <p style="text-align: justify; margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: 'Times New Roman', serif;"><font style="font-size: 10pt;">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.</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>
sund Convertible Debenture Terms Of Conversion
ConvertibleDebentureTermsOfConversion
<div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';">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</div>
sund Convertible Debenture Minimum Conversion Price Per Share
ConvertibleDebentureMinimumConversionPricePerShare
1.00
us-gaap Payments To Acquire Notes Receivable
PaymentsToAcquireNotesReceivable
USD
us-gaap Payments To Acquire Notes Receivable
PaymentsToAcquireNotesReceivable
150000 USD
us-gaap Interest Paid
InterestPaid
81621 USD
sund Non Cash Investing And Financing Activities Adjustments To Subscription Receivable And Additional Paid In Capital
NonCashInvestingAndFinancingActivitiesAdjustmentsToSubscriptionReceivableAndAdditionalPaidInCapital
1500 USD
dei Document Period End Date
DocumentPeriodEndDate
2015-12-31
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--03-31
CY2016Q1 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
44315941 shares
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2016
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q3
dei Entity Filer Category
EntityFilerCategory
Accelerated Filer
dei Amendment Flag
AmendmentFlag
false
CY2015Q4 sund Convertible Debenture Interest Rate
ConvertibleDebentureInterestRate
0.08 pure
CY2015Q4 sund Convertible Debenture Borrowing Capacity
ConvertibleDebentureBorrowingCapacity
3000000 USD
CY2015Q4 sund Convertible Debenture Amount Borrowed
ConvertibleDebentureAmountBorrowed
700000 USD
us-gaap Interest Paid
InterestPaid
USD
sund Non Cash Investing And Financing Activities Adjustments To Subscription Receivable And Additional Paid In Capital
NonCashInvestingAndFinancingActivitiesAdjustmentsToSubscriptionReceivableAndAdditionalPaidInCapital
USD
CY2015Q4 us-gaap Financial Instruments Subject To Mandatory Redemption Redeemable Within One Year
FinancialInstrumentsSubjectToMandatoryRedemptionRedeemableWithinOneYear
750000 USD
CY2015Q1 us-gaap Financial Instruments Subject To Mandatory Redemption Redeemable Within One Year
FinancialInstrumentsSubjectToMandatoryRedemptionRedeemableWithinOneYear
USD

Files In Submission

Name View Source Status
0000912282-16-000555-index-headers.html Edgar Link pending
0000912282-16-000555-index.html Edgar Link pending
0000912282-16-000555.txt Edgar Link pending
0000912282-16-000555-xbrl.zip Edgar Link pending
ex10_1.htm Edgar Link pending
ex10_2.htm Edgar Link pending
ex31_1.htm Edgar Link pending
ex31_2.htm Edgar Link pending
ex32_1.htm Edgar Link pending
FilingSummary.xml Edgar Link unprocessable
Financial_Report.xlsx Edgar Link pending
R1.htm Edgar Link pending
R10.htm Edgar Link pending
R11.htm Edgar Link pending
R12.htm Edgar Link pending
R13.htm Edgar Link pending
R14.htm Edgar Link pending
R15.htm Edgar Link pending
R16.htm Edgar Link pending
R17.htm Edgar Link pending
R18.htm Edgar Link pending
R19.htm Edgar Link pending
R2.htm Edgar Link pending
R20.htm Edgar Link pending
R21.htm Edgar Link pending
R22.htm Edgar Link pending
R23.htm Edgar Link pending
R24.htm Edgar Link pending
R3.htm Edgar Link pending
R4.htm Edgar Link pending
R5.htm Edgar Link pending
R6.htm Edgar Link pending
R7.htm Edgar Link pending
R8.htm Edgar Link pending
R9.htm Edgar Link pending
report.css Edgar Link pending
Show.js Edgar Link pending
sund-20151231.xml Edgar Link completed
sund-20151231.xsd Edgar Link pending
sund-20151231_cal.xml Edgar Link unprocessable
sund-20151231_def.xml Edgar Link unprocessable
sund-20151231_lab.xml Edgar Link unprocessable
sund-20151231_pre.xml Edgar Link unprocessable
sundance10-q_12312015.htm Edgar Link pending