Company: NDRA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110887
Chunk: 102

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 102
---
 user nodes. We believe that digital
assets intrinsically linked to a blockchain system, and the value of which is derived from or is reasonably expected to be derived from
the use of the blockchain system, such as HYPE, are not securities, but neither the SEC nor any other U.S. federal or state regulator
has formally taken such a position. Despite the Trump Administration’s Executive Order titled “Strengthening American Leadership
in Digital Financial Technology” which includes as an objective “protecting and promoting the ability of individual citizens
and private sector entities alike to access and to maintain self-custody of digital assets,” cryptocurrency has not yet been classified
with respect to U.S. federal securities laws. Therefore, while (for the reasons discussed below) we believe that HYPE and other cryptocurrencies
intrinsically linked to a blockchain system are digital commodities and not “securities” within the meaning of the U.S.
federal securities laws, and registration of the Company under the 1940 Act, is therefore not required under the applicable securities
laws, we acknowledge that a regulatory body or federal court may determine otherwise. Therefore, our belief, even if reasonable under
the circumstances, would not preclude legal or regulatory action based on such a finding that cryptocurrency is a “security,”
which would require us to register as an investment company under the 1940 Act.

We have also adapted our process for analyzing the U.S. federal securities
law status of cryptocurrencies over time, as guidance and case law have evolved. As part of our U.S. federal securities law analytical
process, we take into account a number of factors, including the various definitions of “security” under U.S. federal securities
laws and federal court decisions interpreting the elements of these definitions, such as the U.S. Supreme Court’s decisions in the Howey and Reves cases,
as well as court rulings, reports, orders, press releases, public statements, and speeches by the SEC Commissioners and SEC Staff providing
guidance on when a digital asset or a transaction to which a digital asset may relate may be a security for purposes of U.S. federal securities
laws. Our belief that HYPE and other blockchain-linked cryptocurrencies in which we intend to invest are not a “security”
is premised, among other reasons, on our belief that such cryptocurrencies do not meet the elements of the Howey test.
For instance, ownership of HYPE and other blockchain-linked cryptocurrencies do not convey the right to receive