Company: NDRA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110887
Chunk: 264

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 264
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 the market
price of cryptocurrency and in turn adversely affect the market price of our common stock. Moreover, the risks of us engaging in a cryptocurrency
treasury strategy have created, and could continue to create complications due to the lack of experience that third parties have with
companies engaging in such a strategy, such as increased costs of director and officer liability insurance or the potential inability
to obtain such coverage on acceptable terms in the future.

Changes in the accounting treatment of cryptocurrency holdings
could have significant accounting impacts, including increasing the volatility of our results.

In December 2023, the FASB issued ASU 2023-08, which upon our adoption
will require us to measure in-scope cryptocurrency assets at fair value in our statement of financial position, and to recognize gains
and losses from changes in the fair value of our cryptocurrency in net income each reporting period. ASU 2023-08 will also require us
to provide certain interim and annual disclosures with respect to our cryptocurrency holdings. The standard is effective for our interim
and annual periods beginning January 1, 2025, with a cumulative-effect adjustment to the opening balance of retained earnings as of the
beginning of the annual reporting period in which we adopt the guidance. Due in particular to the volatility in the price of cryptocurrencies,
we expect the adoption of ASU 2023-08 to have a material impact on our financial results in future periods, increase the volatility of
our financial results, and affect the carrying value of our cryptocurrency on our balance sheet, and it could also have adverse tax consequences,
which in turn could have a material adverse effect on our financial results and the market price of our common stock. Additionally, as
a result of ASU 2023-08 requiring a cumulative-effect adjustment to our opening balance of retained earnings as of the beginning of the
annual period in which we 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