Company: NDRA
Filing Date: 2025-04-07
Form Type: 10-K/A
Source: 0001654954-25-003937
Chunk: 23

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-04-07
Form: 10-K/A
Chunk 23
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 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 initial fair value for the warrant liability on August 20, 2024, the date the warrants were initially exercisable. Upon exercise, the instrument is marked to its fair value upon exercise, and the shares delivered are recorded at fair value in the Company’s statement of stockholders’ equity. The warrant liability was valued based on the following inputs for the Series A and Series B Warrants, respectively:

| Input                 |     | August 20, 2024 (Initial Measurement) |     | December 31, 2024 |
|:----------------------|:----|--------------------------------------:|:----|------------------:|
| Exercise price        |     |                      $28.70 and $1.75 |     |  $28.70 and $1.75 |
| Stock price           |     |                               $ 23.10 |     |            $ 7.26 |
| Volatility            |     |                         122% and 145% |     |     131% and 167% |
| Discount rate         |     |                       3.70% and 3.90% |     |             4.36% |
| Dividends             |     |                                     - |     |                 - |
| Expected life (years) |     |                             5 and 2.5 |     |              4.64 |

Note 10 - Related Party Transactions

On May 2, 2023, the Company conducted a registered offering in which the Company sold shares of its common stock and warrants to the Company’s director, Anthony DiGiandomenico, for cash at the public offering price, which was less than % of beneficial ownership in the Company.

On October 17, 2023, the Company entered into a consulting agreement with one of its directors, Alex Tokman, pursuant to which Mr. Tokman provided commercialization services. Under the terms of the agreement, Mr. Tokman was compensated at a rate of $ per hour for his services. On August 13, 2024, this agreement was