Company: NDRA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110887
Chunk: 150

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 150
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 adopt the guidance and not permitting retrospective restatement of our historical financial statements, our
future results will not be comparable to results from periods prior to our adoption of the guidance.

24

The broader digital assets industry, including the technology associated
with digital assets, the rate of adoption and development of, and use cases for, digital assets, market perception of digital assets,
and the legal, regulatory, and accounting treatment of digital assets are constantly developing and changing, and there may be additional
risks in the future that are not possible to predict.

Changes in our ownership of cryptocurrency could have accounting, regulatory
and other impacts, as well. While we currently intend to primarily own cryptocurrency directly, we may investigate other potential approaches
to owning cryptocurrencies, including indirect ownership (for example, through ownership interests in a fund that owns cryptocurrencies
and deemed ownership via ownership of cryptocurrency derivative assets). If we were to own all or a portion of our cryptocurrencies in
a different manner, the accounting treatment for our cryptocurrencies, our ability to use our cryptocurrencies as collateral for additional
borrowings, and the regulatory requirements to which we are subject, may correspondingly change. For example, the volatile nature of cryptocurrencies
may force us to liquidate our holdings to use it as collateral, which could be negatively impacted by any disruptions in the cryptocurrency
market, and if liquidated, the value of the collateral would not reflect potential gains in market value of our cryptocurrency.

Our management relies upon the advice of an asset manager through
an asset management agreement to assist in building a narrowly focused investment strategy and the execution of the Company’s strategy
and may not yield the desired return.

We have engaged an asset manager to manage our cryptocurrency holdings
and have adopted a treasury policy in which we plan to maintain a majority of our holdings in one to five decentralized finance digital
assets, including HYPE. Our management, cryptocurrency advisory board and such asset manager will have broad discretion in the application
of the net proceeds from any offering by the Company and could spend the proceeds in ways that do not improve our results of operations
or enhance the value of our common stock. The failure to apply these funds effectively could result in financial losses that could cause
the price of our common stock to decline.

Cryptocurrency price volatility may materially depress asset
valuations, necessitating substantial cash reserves or liquidity buffers to maintain operational resilience. These risks are compounded
by the lack of comprehensive regulation governing cryptocurrency trading platforms, which face material exposure to fraud, market manipulation,
security breaches, and operational failures that could