Company: NDRA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110887
Chunk: 112

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 112
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 holdings, or if we are forced to sell our cryptocurrency at a significant loss, in order to meet our working
capital requirements, our business and financial condition could be negatively impacted.

Cryptocurrencies do not pay interest or dividends.

Cryptocurrencies do not pay interest or other returns and we can only
generate cash from our cryptocurrency holdings if we sell our cryptocurrency or implement strategies to create income streams or otherwise
generate cash by using our cryptocurrency holdings. Even if we pursue any such strategies, we may be unable to create income streams or
otherwise generate cash from our cryptocurrency holdings, and any such strategies may subject us to additional risks.

26

We are not subject to legal and regulatory obligations that apply
to investment companies such as mutual funds and exchange-traded funds, or to obligations applicable to investment advisers.

Mutual funds, exchange-traded funds and their directors and management
are subject to extensive regulation as “investment companies” and “investment advisers” under U.S. federal and
state law; this regulation is intended for the benefit and protection of investors. We are not subject to, and do not otherwise voluntarily
comply with, these laws and regulations. This means, among other things, that the execution of or changes to our cryptocurrency treasury
strategy, our use of leverage, the manner in which our cryptocurrency is intended to be custodied, our ability to engage in transactions
with affiliated parties and our operating and investment activities generally are not subject to the extensive legal and regulatory requirements
and prohibitions that apply to investment companies and investment advisers. Consequently, our board of directors has broad discretion
over the investment, leverage and cash management policies it authorizes, whether in respect of our cryptocurrency holdings or other activities
we may pursue, and has the power to change our current policies, including our strategy of acquiring and holding cryptocurrency.

If we or our third-party service providers experience a security
breach or cyberattack and unauthorized parties obtain access to our cryptocurrency, or if our private keys are lost or destroyed, or other
similar circumstances or events occur, we may lose some or all of our cryptocurrency and our financial condition and results of operations
could be materially adversely affected.

Security breaches and cyberattacks are of particular concern with respect
to cryptocurrency. Blockchain-based cryptocurrencies and the entities that provide services to participants in the cryptocurrency ecosystem
have been, and may in the future be, subject to security breaches, cyberattacks, or other malicious activities. For example, in October
2021, it was reported that hackers exploited a flaw in the account