Company: NDRA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110887
Chunk: 20

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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  180,707   $85.38    4.58   Granted   -    -    -   Exercised   -    -    -   Forfeited   -    -    -   Expired   -    -    -   Balance outstanding at September 30, 2025   180,707   $85.38    3.84   Exercisable at September 30, 2025   180,707   $85.38    3.84  

Common Stock Warrants

As described above in
“Registered Offering” (Note 7), the Company issued 178,255 Series A Warrants and 178,255 Series B Warrants.
The Company accounts for these 356,510 warrants, in the aggregate, in accordance with the guidance in ASC 815 “Derivative
and Hedging” whereby under that provision the warrants do not meet the criteria for equity treatment and must be recorded as a liability.
Accordingly, the Company classified the warrant instruments as a liability at fair value and adjusts the instruments to fair value each
period. This liability will be re-measured at each balance sheet date until the warrants are exercised or expire, and any change in fair
value will be recognized in the Company’s statement of operations. During the three and nine months ended September 30, 2025, the
Company recognized a loss of $267,274 and a gain of $203,400, respectively, for the change in fair value of warrant liability in the statement
of operations. As of September 30, 2025, the Company recognized $595,884 of warrant liability.

11

Recurring Fair Value Measurements

The Company’s warrant liability for the
Series A and Series B Warrants is based on the Black-Scholes option pricing model utilizing management judgement and pricing inputs from
observable and unobservable markets. Significant deviations from these estimates and inputs could result in a material change in fair
value. The fair value of the warrant liability is classified within Level 2 of the fair value hierarchy because the Company uses observable
inputs like market prices for its common stock and risk-free interest rate, but requires estimations for factors like the Company’s
own volatility, which is not directly quoted in active markets.

Measurement

The Company established
the