Company: NDRA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110887
Chunk: 258

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 258
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Item 1A. Risk Factors

In addition to the other information set forth
in this report, you should carefully consider the factors discussed in this section and under “Risk Factors” in our Annual
Report on Form 10-K for the period ended December 31, 2024, as filed with the Securities and Exchange Commission on March 31, 2025. These
factors could materially adversely affect our business, financial condition, liquidity, results of operations and capital position, and
could cause our actual results to differ materially from our historical results or the results contemplated by any forward-looking statements
contained in this report.

There have been no material changes to our Risk
Factors as therein previously reported, except as noted below:

Risks Related to Cryptocurrency

Absent federal regulations, there is a possibility that certain
cryptocurrencies may be classified as “securities.” Any classification of a cryptocurrency as a “security” would
subject us to additional regulation and could materially impact the operation of our business.

Cryptocurrency refers to digital assets that are issued by and transmitted
through an open-source protocol, collectively maintained by a peer-to-peer network of decentralized 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