Company: NDRA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110887
Chunk: 70

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 70
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 omitted pursuant to such rules and regulations. In the opinion of
management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.
Operating results for the nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for
the year ending December 31, 2025. The balance sheet at September 30, 2025 has been derived from the audited financial statements at that
date. For further information, refer to the financial statements and footnotes thereto included in the Company’s annual financial
statements for the twelve months ended December 31, 2024 included in the Company’s Annual Report on Form 10-K filed with the SEC
on March 31, 2025.

Cash and Cash Equivalents

The Company considers all cash on hand and in
banks, including accounts in book overdraft positions, certificates of deposit, and other highly liquid investments with maturities of
one year or less, when purchased, to be cash. Cash equivalents include investments in an institutional money market fund, which invests
in U.S. Treasury bills, notes and bonds, and/or repurchase agreements, backed by such obligations. Carrying value approximates fair value.
The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced
any losses in such accounts and periodically evaluates the creditworthiness of the financial institutions and has determined the credit
exposure to be negligible. The Company maintains cash deposits at multiple banks to mitigate the risk associated with a failure of any
specific bank.

Inventory

The Company’s inventory is stated at the
lower of cost or estimated net realizable value, with cost primarily determined on a weighted-average cost basis on the first-in, first-out
method. The Company periodically determines whether a reserve should be taken for devaluation or obsolescence of inventory. The Company
assessed its inventory at September 30, 2025 and the reserve remained at 100% of the inventory. As of September 30, 2025 and December
31, 2024, the Company had recorded reserves of $0 and $2,525,179, respectively. As of September 30, 2025 and December 31, 2024, the Company
had inventory valued at $0.

6

Capitalization of Fixed Assets

The Company capitalizes expenditures related to
property and equipment, subject to a minimum