Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Dec. 31, 2014 | Feb. 17, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Dec-14 | |
Entity Registrant Name | Sundance Strategies, Inc. | |
Entity Central Index Key | 1171838 | |
Current Fiscal Year End Date | -28 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2015 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 43,185,941 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
Current Assets | ||
Cash and Cash Equivalents | $790,473 | $375,212 |
Prepaid Expenses | 3,750 | 2,000 |
Total Current Assets | 794,223 | 377,212 |
Other Assets | ||
Investment in Net Insurance Benefits | 14,016,109 | 12,243,411 |
Advance for Investment in Net Insurance Benefits | 3,575,186 | 3,584,862 |
Notes Receivable | 361,000 | 861,000 |
Other | 18,614 | 13,767 |
Total Other Long-term Assets | 17,970,909 | 16,703,040 |
Total Assets | 18,765,132 | 17,080,252 |
Current Liabilities | ||
Accounts Payable | 128,254 | 52,915 |
Accrued Expenses | 163,458 | |
Note Payable | 1,326,876 | |
Note Payable-Related Party | 1,362,000 | 90,000 |
Total Current Liabilities | 2,980,588 | 142,915 |
Notes Payable, including accrued interest | 1,455,904 | |
Total Liabilities | 2,980,588 | 1,598,819 |
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; 43,185,941 and 43,015,941 shares issued and outstanding, respectively | 43,186 | 43,017 |
Subscription Receivable | -1,500 | |
Additional Paid In Capital | 16,219,369 | 15,050,705 |
Additional Paid In Capital- Stock to be Issued | 700,000 | |
Accumulated Deficit | -478,011 | -310,789 |
Total Stockholders' Equity | 15,784,544 | 15,481,433 |
Total Liabilities and Stockholders' Equity | $18,765,132 | $17,080,252 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, par value per share | $0.00 | $0.00 |
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 | $0.00 | $0.00 |
Common Stock, shares issued | 43,185,941 | 43,015,941 |
Common Stock, shares outstanding | 43,185,941 | 43,015,941 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Consolidated Statements of Operations [Abstract] | ||||
Interest Income on Investment in Net Insurance Benefits | $616,547 | $1,772,698 | ||
General and Administrative Expenses | 526,797 | 354,434 | 1,726,169 | 1,699,108 |
Income (Loss) from Operations | 89,750 | -354,434 | 46,529 | -1,699,108 |
Other Income (Expense) | ||||
Other, net | 1,672,124 | 6,303 | 1,672,124 | |
Interest Income | 4,568 | 4,710 | 13,388 | 4,731 |
Interest Expense | -200,270 | -31,020 | -233,442 | -91,802 |
Total Other Income (Expense) | -195,702 | 1,645,814 | -213,751 | 1,585,053 |
Income (Loss) Before Income Taxes | -105,952 | 1,291,380 | -167,222 | -114,055 |
Income Tax Provision | ||||
Net Income (Loss) | ($105,952) | $1,291,380 | ($167,222) | ($114,055) |
Basic and Diluted: | ||||
Basic and Fully Diluted Earnings (Loss) Per Share | ($0.01) | $0.03 | ($0.01) | ($0.01) |
Weighted Average Number of Shares Outstanding | 43,185,941 | 42,261,441 | 43,122,354 | 41,490,857 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | ||
Net Loss | ($167,222) | ($114,055) |
Adjustments to reconcile to cash from operating activities: | ||
Gain on Extinguishment of Debt | -1,672,124 | |
Share Based Compensation - Options | 320,333 | 735,999 |
Deferred Income Taxes | ||
Advance for Investments in Net Insurance Benefits | -794,598 | -8,572,972 |
Refund of Advance for Investments in Net Insurance Benefits | 904,274 | |
Other Current Assets | ||
Accrued Interest Income | -4,847 | -4,710 |
Prepaid Expenses | -1,750 | |
Accounts Payable | 75,339 | -61,382 |
Accrued Expenses | 34,430 | 91,802 |
Investment in Net Insurance Benefits | -1,772,698 | |
Net Cash from Operating Activities | -1,406,739 | -9,597,442 |
Investing Activities | ||
Issuance of Note Receivable | -150,000 | |
Proceeds from Notes Receivables | 550,000 | -861,000 |
Net Cash from Investing Activities | 400,000 | -861,000 |
Financing Activities | ||
Proceeds from Issuance of Common Stock - net of issuance costs | 6,765,375 | |
Proceeds from Issuance of Note Payable-Related Party | 1,272,000 | |
Common Stock Issued for Cash | 150,000 | |
Common Stock to be Issued | 3,272,500 | |
Net Cash from Financing Activities | 1,422,000 | 10,037,875 |
Net Change in Cash | 415,261 | -420,567 |
Cash at Beginning of Period | 375,212 | 545,417 |
Cash at End of Period | 790,473 | 124,850 |
Non Cash Financing Activities | ||
Cash Paid for Interest | 81,621 | |
Adjustments to Subscription Receivable and Additional Paid in Capital | 1,500 | |
Notes Receivables Exchanged for Advance for Investment in NIBs | 100,000 | |
Fair Value of Warrants Issued as Stock Issuance Costs | 139,251 | |
Gain on extinguishment of debt | $1,672,124 |
ORGANIZATION_AND_BASIS_OF_PRES
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended |
Dec. 31, 2014 | |
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, 2014, 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. | |
On March 29, 2013, Sundance Strategies, Inc., a Nevada corporation (“Sundance Strategies”), its newly formed and wholly-owned subsidiary, Anew Acquisition Corp., a Utah corporation (“Merger Subsidiary”), and ANEW LIFE, completed an Agreement and Plan of Merger, whereby Merger Subsidiary merged with and into ANEW LIFE, and ANEW LIFE was the surviving company under the merger and became a wholly-owned subsidiary of Sundance Strategies on the closing of the merger (the “Merger”). The Merger has been treated as a reverse acquisition and a recapitalization of a public company. Accordingly, the historic financial statements of the Company are the historic financial statements of ANEW LIFE, which was incorporated on January 31, 2013. | |
Sundance Strategies and subsidiary (the “Company” or “we”) is engaged in the business of directly purchasing from third parties and purchasing, acquiring and assisting third parties in assembling portfolios of high quality life insurance policies and residual interest in or financial products tied to life insurance policies, including notes, drafts, acceptances, open accounts receivable and other obligations from the secondary and tertiary marketplace often referred to as the “life settlements market.” Currently, the Company is focused on the acquisition of Net Insurance Benefits (“NIB” or “NIBs”). NIBs are residual interests in or financial products tied to life settlement policies. The Company purchases NIBs on life settlement policies from third parties in pools of multiple policies, but does not typically take possession or control of the policies, other than the policies held as collateral for advances to third parties, of which the Company does take temporary possession until collateral is returned for NIBs. | |
NEW_ACCOUNTING_PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Dec. 31, 2014 | |
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. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Early adoption is not permitted and companies can transition to the new standard under the full retrospective method or the modified retrospective method. 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. | |
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. |
INVESTMENT_IN_NET_INSURANCE_BE
INVESTMENT IN NET INSURANCE BENEFITS | 9 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
INVESTMENT IN NET INSURANCE BENEFITS [Abstract] | |||||||||
INVESTMENT IN NET INSURANCE BENEFITS | (3) INVESTMENT IN NET INSURANCE BENEFITS | ||||||||
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. The investment in NIBs is a residual economic beneficial interest in a portfolio of life insurance policies 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 flows are defined as the net insurance proceeds from death benefits after senior debt repayment, mortality risk repayment, and service provider or other third-party payments. At the time of 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 cost basis. 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 quarterly 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. | |||||||||
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 face value of the underlying life insurance policies approximated $217 million (includes estimated return of premiums) as of December 31, 2014. The Company holds a 100% interest in the NIBs relating to the underlying life insurance policies as of December 31, 2014. The estimated fair value of the Company's investment in NIBs approximated carrying value at December 31, 2014, with fair value calculated using level 3 inputs. As of December 31, 2014 and March 31, 2014, investments in NIBs were as follows: | |||||||||
December 31, 2014 | March 31, 2014 | ||||||||
Beginning Balance | $ | 12,243,411 | $ | 6,299,000 | |||||
Additional investments | - | 5,436,000 | |||||||
Accretion of interest income | 1,772,698 | 508,411 | |||||||
Distributions of investments | - | - | |||||||
Impairment of investments | - | - | |||||||
Total | $ | 14,016,109 | $ | 12,243,411 | |||||
We evaluate the carrying value of our investment in NIBs for OTTI on a regular basis and, if necessary, adjust our carrying value in the investment in NIBs using new or updated information that affects our assumptions about remaining life expectancy, credit worthiness of the policy issuer, funds needed to maintain the asset until maturity, utilization of MRI, discount rates and potential return. We recognize OTTI on investment in NIBs if the expected discounted cash flows (using the effective yield) expected to be received are less than the carrying amount of the investment. OTTI of the investment in NIBs could be generally caused by the insured significantly exceeding the estimate of the original life expectancy, which causes the original policy costs and projected future premiums to exceed the estimated maturity value, a change in credit worthiness of the policy issuer, increased or changes to applicable regulation of the investment, counter party performance risk, shortage of funds needed to maintain the asset until maturity and changes in discount rates. There are also risks associated with the policy holder's ability to repay such financing and the occurrence of events of default under such financing. We have not recognized any OTTI from January 31, 2013 (inception) to the period ended December 31, 2014. | |||||||||
ADVANCE_FOR_INVESTMENT_IN_NET_
ADVANCE FOR INVESTMENT IN NET INSURANCE BENEFITS | 9 Months Ended |
Dec. 31, 2014 | |
ADVANCE FOR INVESTMENT IN NET INSURANCE BENEFITS [Abstract] | |
ADVANCE FOR INVESTMENT IN NET INSURANCE BENEFITS | (4) 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”). The Del Mar ATA involved the purchase of certain life settlement assets consisting of 100% 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. The end result of the Del Mar ATA and the advance was not to purchase the NIBs provided as collateral, but instead to provide sufficient capital to Del Mar for the conversion of a portion of the NIBs and other potential NIBs into “Qualified NIBs” before the original due date of December 31, 2013 (which was subsequently extended to September 30, 2014, with a new extension agreement currently in negotiation), having a combined face amount of $400,000,000 (with “Qualified NIBs”under the Del Mar ATA having the meaning that the NIBs would have premium financing secured for up to five years; that any grouping of NIBs would have not less than 10 policies; that the average age of the insureds under the life insurance policies would be approximately 81 years; and that the NIBs would have mortality re-insurance coverage). All remaining NIBs that are not converted to “Qualified NIBs” and all other assets conveyed to the Company as collateral to assure delivery of the Qualified NIBs will be re-conveyed to Del Mar upon receipt of combined Qualified NIBs having a face amount equal to $400,000,000. In the event Del Mar is unable to provide the Qualified NIBs by the original date of December 31, 2013, (which was subsequently extended to September 30, 2014, with a new extension agreement currently in negotiation), the Company will have the option of selling any of the collateral assets acquired up to a liquidated damages settlement payment equal to 100% of any cash payments made under the Del Mar ATA. If the full balance of Qualified NIBs is provided by Del Mar, the Company will have paid $20,000,000 of consideration, $8,000,000 of which would be in cash and the remaining $12,000,000 in promissory notes. Promissory notes may be issued, pro rata, as Qualified NIBs are received. The promissory notes have no due date, but will be paid out of death benefits received, and incur interest of 4.0% per annum. Total interest and principal amounts are due upon maturity. Del Mar is continuing its efforts in delivering the Qualified NIBs. The Company has received $90,600,000 in Qualified NIBs under the Del Mar ATA. | |
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 Company is required to pay a structuring fee of 1% of the face amount of the life insurance policies underlying all NIBs introduced by Europa and acquired by the Company, payable as follows: 50% of the fee on the delivery of the NIBs; and the remaining 50% being payable on the conversion of the NIBs to Qualified NIBs as defined in the Del Mar ATA. The total restructuring fee will be up to $4,000,000. In the event that any cash consideration by the Company under the Del Mar ATA exceeds the defined $8,000,000 cash threshold, the amount payable under the Europa Agreement will be reduced on a dollar for dollar basis for any such overage. The total purchase price will not exceed $24,000,000 under the Del Mar ATA, which is comprised of $12,000,000 in cash consideration and $12,000,000 in promissory notes. | |
On October 29, 2013, the Company and Europa, with the agreement of Del Mar, amended the Europa Agreement and the Del Mar ATA to acknowledge that the total up-front cash payment due from the Company under the Del Mar ATA and Europa Agreement shall not exceed $12,000,000; that the Company would receive a credit on a dollar for dollar basis of the cash payment and all costs and expenses paid under the Del Mar ATA over $8,000,000, against all fees due Europa under the Europa Agreement or the Del Mar ATA. In the event the Qualified NIBs delivered are less than $300,000,000 in face value under the Del Mar ATA Agreement, Del Mar and Europa shall be jointly and severally liable for liquidated damages equal to the aggregate of the cash payment under the Del Mar ATA and all of the costs advanced, reduced by the pro rata percentage of the Qualified NIBs delivered and accepted by the Company, multiplied by two; and if at least $300,000,000 in Qualified NIBs are delivered and accepted, then the cash payment and all costs will not be doubled if they are paid within 90 days. | |
Also on October 29, 2013, the Company entered into an Exclusivity Agreement with the consultant to Europa under the Europa Agreement under which the Company advanced $25,000 to such consultant for services related to the purchase of Qualified NIBs associated with the $400,000,000 in life insurance policies due under the Del Mar ATA. | |
On January 14, 2014, the Company completed the closing of $90.6 million of Qualified NIBs. These Qualified NIBs are part of the $400 million transaction of additional NIBs in portfolios from the Company's second acquisition in June 7, 2013, related to the Del Mar ATA. | |
Del Mar has been delayed, as mentioned above, in delivering the remaining portions of the $400 million commitment. In addition, the Company has advanced monies to Del Mar in excess of the purchase price of Qualified NIBs received by the Company. Therefore, on December 9, 2014, Del Mar refunded $904,274 advanced from the Company. The refund is recorded as a reduction of Advance for Investment in Net Insurance Benefits. | |
LETTER_OF_INTENT
LETTER OF INTENT | 9 Months Ended |
Dec. 31, 2014 | |
LETTER OF INTENT [Abstract] | |
LETTER OF INTENT | (5) LETTER OF INTENT |
On December 5, 2014, the Company signed a binding Letter of Intent (“LOI”) to memorialize the intent of HFII Assets Solutions, LLC (“HFII”) to enter into an asset purchase agreement with the Company involving the issuance of 1,130,000 shares of common stock of the Company in exchange for two portfolios of Qualified NIBs currently held by HFII in Hyperion Funds II plc. The life settlement policies underlying these Qualified NIBs have a combined face value at maturity of approximately $124,375,000. In addition, the LOI states that the collateral will be released relating to the $1,326,876 note payable on the balance sheet at December 31, 2014. Also, the LOI outlines that up to 187,500 shares of common stock issued in the proposed transaction will have a put right held by HFII that requires the Company to buy back the shares at $8 per share. Finally, the Company loaned HFII $150,000 at December 31, 2014, to help facilitate the proposed transaction. The loan will be paid out of the first proceeds generated by the exercise of the put options. The LOI contemplated a closing and share issuance by February 15, 2015, though no Asset Purchase Agreement has been executed by the parties. It is anticipated that the transactions contemplated by the LOI will be extended. | |
The transaction proposed by the LOI will not close until HFII resolves certain structural issues relating the entities that will own, hold and fund the underlying life settlement contracts relating to these Qualified NIBs. HFII believes the issues will be resolved by March 31, 2015. |
NOTE_PAYABLERELATED_PARTY
NOTE PAYABLE-RELATED PARTY | 9 Months Ended |
Dec. 31, 2014 | |
NOTE PAYABLE-RELATED PARTY [Abstract] | |
NOTE PAYABLE-RELATED PARTY | (6) NOTE PAYABLE-RELATED PARTY |
During the nine months ended December 31, 2014, the Company borrowed $1,272,000, net, from an entity which is a stockholder in the Company. Prior to November 20, 2014, the various outstanding notes payable did not accrue interest and were payable on demand. On November 20, 2014, the Company consolidated the various obligations into a single master loan agreement. The new note accrues interest at 7.5 percent plus origination fees, has a due date of December 31, 2015, or at the immediate time when the anticipated raise in equity funds is successful, and is collateralized by Investment in and Advances on NIBs. During the three months ended December 31, 2014, the Company recorded approximately $170,000 of origination fees and other related expenses associated with the notes, which are included in interest expense on the statement of operations. At December 31, 2014, the note payable-related party balance owing is $1,362,000, excluding accrued but unpaid interest. | |
STOCK_TRANSACTIONS
STOCK TRANSACTIONS | 9 Months Ended |
Dec. 31, 2014 | |
STOCK TRANSACTIONS [Abstract] | |
STOCK TRANSACTIONS | (7) STOCK TRANSACTIONS |
During July 2014, the Company issued 30,000 shares of common stock for $150,000 and issued 140,000 shares of common stock for $700,000. The $700,000 in cash was received prior to March 31, 2014. | |
GOING_CONCERN
GOING CONCERN | 9 Months Ended |
Dec. 31, 2014 | |
GOING CONCERN [Abstract] | |
GOING CONCERN | (8) GOING CONCERN |
The Company's financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. At December 31, 2014, the Company had accumulated losses of $478,011, working capital deficit of $2,186,365, and has yet to receive cash payments on interest income on Investment in NIBS. These factors raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustment that might result from the outcome of this uncertainty. | |
The Company's continued existence is dependent on its ability to generate sufficient cash flow to cover operating expenses and to invest in future operations. Management is actively pursuing opportunities to raise additional equity and debt capital. The Company does not anticipate having adequate revenues from operations until three to four years, and until a revenue stream has been established, the Company will require debt or equity funding to fund its current and intended business. If management is unsuccessful in these efforts, discontinuance of operations is a possibility. | |
NEW_ACCOUNTING_PRONOUNCEMENTS_
NEW ACCOUNTING PRONOUNCEMENTS (Policy) | 9 Months Ended |
Dec. 31, 2014 | |
NEW ACCOUNTING PRONOUNCEMENTS [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | 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. |
INVESTMENT_IN_NET_INSURANCE_BE1
INVESTMENT IN NET INSURANCE BENEFITS (Tables) | 9 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
INVESTMENT IN NET INSURANCE BENEFITS [Abstract] | |||||||||
Schedule of Investments in NIBs | December 31, 2014 | March 31, 2014 | |||||||
Beginning Balance | $ | 12,243,411 | $ | 6,299,000 | |||||
Additional investments | - | 5,436,000 | |||||||
Accretion of interest income | 1,772,698 | 508,411 | |||||||
Distributions of investments | - | - | |||||||
Impairment of investments | - | - | |||||||
Total | $ | 14,016,109 | $ | 12,243,411 |
INVESTMENT_IN_NET_INSURANCE_BE2
INVESTMENT IN NET INSURANCE BENEFITS (Narrative) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
INVESTMENT IN NET INSURANCE BENEFITS [Abstract] | |
Life settlement policies, face value | $217 |
Life Settlement Contracts Investment, Ownership Percentage | 100.00% |
INVESTMENT_IN_NET_INSURANCE_BE3
INVESTMENT IN NET INSURANCE BENEFITS (Summary of Investments in Net Insurance Benefit Contracts) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | |
INVESTMENT IN NET INSURANCE BENEFITS [Abstract] | |||||
Beginning Balance | $12,243,411 | $6,299,000 | $6,299,000 | ||
Additional investments | 5,436,000 | ||||
Accretion of interest income | 616,547 | 1,772,698 | 508,411 | ||
Distributions of investments | |||||
Impairment of investments | |||||
Total | $14,016,109 | $14,016,109 | $12,243,411 |
ADVANCE_FOR_INVESTMENT_IN_NET_1
ADVANCE FOR INVESTMENT IN NET INSURANCE BENEFITS (Details) (USD $) | 0 Months Ended | 1 Months Ended | 9 Months Ended | |||
Dec. 09, 2014 | Jan. 14, 2014 | Jun. 07, 2013 | Oct. 29, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
ADVANCE FOR INVESTMENT IN NET INSURANCE BENEFITS [Abstract] | ||||||
The face value of net insurance benefits purchased under asset transfer agreement | $400,000,000 | $400,000,000 | ||||
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. | 20,000,000 | |||||
The 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. | 8,000,000 | 12,000,000 | ||||
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. | 12,000,000 | |||||
Interest rate | 4.00% | 7.50% | ||||
Restructuring charges accrued | 4,000,000 | |||||
Structuring and Consulting Agreement, terms | The Company is required to pay a structuring fee of 1% of the face amount of the life insurance policies underlying all NIBs introduced and acquired, payable as follows: 50% of the fee on the delivery of the NIBs; and the remaining 50% being payable on the conversion of the NIBs to Qualified NIBs as defined in the Del Mar ATA. | In the event the Qualified NIBs delivered are less than $300,000,000 in face value under the DMF Agreement, Del Mar and Europa shall be jointly and severally liable for liquidated damages equal to the aggregate of the cash payment under the Del Mar ATA and all of the costs advanced, reduced by the pro rata percentage of the Qualified NIBs delivered and accepted by the Company, multiplied by two; and if at least $300,000,000 in Qualified NIBs are delivered and accepted, then the cash payment and all costs will not be doubled if they are paid within 90 days. | ||||
Total purchase price | 24,000,000 | |||||
Maximum purchase price payable by promissory notes | 12,000,000 | |||||
Advance to consultant for services | 25,000 | |||||
Qualified net insurance benefits received | 90,600,000 | |||||
Refund of Advance for Investments in Net Insurance Benefits | $904,274 | $904,274 |
LETTER_OF_INTENT_Narrative_Det
LETTER OF INTENT (Narrative) (Details) (USD $) | 9 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 05, 2014 | Mar. 31, 2014 | Oct. 29, 2013 | Jun. 07, 2013 | |
item | ||||||
LETTER OF INTENT [Line Items] | ||||||
Face amount of Qualified NIBs required to be delivered to the company per the asset purchase agreement | $400,000,000 | $400,000,000 | ||||
Notes payable | 1,326,876 | |||||
Issuance of Note Receivable | 150,000 | |||||
HFII [Member] | ||||||
LETTER OF INTENT [Line Items] | ||||||
Shares of common stock issued | 1,130,000 | |||||
Number of portfolios of Qualified NIBs | 2 | |||||
Face amount of Qualified NIBs required to be delivered to the company per the asset purchase agreement | 124,375,000 | |||||
Notes payable | 1,326,876 | |||||
Number of shares authorized to be repurchased | 187,500 | |||||
Repurchase price per share | $8 | |||||
Issuance of Note Receivable | $150,000 |
NOTE_PAYABLERELATED_PARTY_Deta
NOTE PAYABLE-RELATED PARTY (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2014 | Jun. 07, 2013 | |
NOTE PAYABLE-RELATED PARTY [Abstract] | ||||
Borrowings from related parties | $1,272,000 | |||
Interest rate | 7.50% | 7.50% | 4.00% | |
Origination fees and other related expenses | 170,000 | |||
Total notes payable-related party loan balance | $1,362,000 | $1,362,000 | $90,000 |
STOCK_TRANSACTIONS_Details
STOCK TRANSACTIONS (Details) (USD $) | 1 Months Ended |
Jul. 31, 2014 | |
First Issuance [Member] | |
Stockholders Equity [Line Items] | |
Shares of common stock issued | 30,000 |
Value of shares of common stock issued | $150,000 |
Second Issuance [Member] | |
Stockholders Equity [Line Items] | |
Shares of common stock issued | 140,000 |
Value of shares of common stock issued | $700,000 |
GOING_CONCERN_Details
GOING CONCERN (Details) (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
GOING CONCERN [Abstract] | ||
Accumulated losses | $478,011 | $310,789 |
Working capital deficit | $2,186,365 |