Company: NDRA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110887
Chunk: 178

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 3
Chunk 178
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 termination of such one-year period), in a business other than
that of investing, reinvesting, owning, holding, or trading in securities, with such intent evidenced by the company’s business
activities and an appropriate resolution of its board of directors. The grace period is available not more than once every three years
and runs from the earlier of (i) the date on which the issuer owns securities and/or cash having a value exceeding 50% of the issuer’s
total assets on either a consolidated or unconsolidated basis or (ii) the date on which the issuer owns or proposes to acquire investment
securities having a value exceeding 40% of the value of such issuer’s total assets (exclusive of U.S. government securities and
cash items) on an unconsolidated basis. Accordingly, the grace period may not be available at the time that we seek to rely on Rule 3a-2;
however, Rule 3a-2 is a safe harbor and we may rely on any exemption or exclusion from investment company status available to us under
the 1940 Act at any given time. Furthermore, reliance on Rule 3a-2, Section 3(a)(1)(C), or Rule 3a-1 could require us to take actions
to dispose of securities, limit our ability to make certain investments or enter into joint ventures, or otherwise limit or change our
service offerings and operations. If we were to be deemed an investment company in the future, restrictions imposed by the 1940 Act—including
limitations on our ability to issue different classes of stock and equity compensation to directors, officers, and employees and restrictions
on management, operations, and transactions with affiliated persons—likely would make it impractical for us to continue our business
as contemplated, and could have a material adverse effect on our business, results of operations, financial condition, and prospects.

We may be subject to regulatory developments related to crypto
assets and crypto asset markets, which could adversely affect our business, financial condition, and results of operations.

As cryptocurrency and other digital assets are relatively novel and
the application of state and federal securities laws and other laws and regulations to digital assets is unclear in certain respects,
it is possible that regulators in the United States or foreign countries may interpret or apply existing laws and regulations in a manner
that adversely affects the price of cryptocurrency. The U.S. federal government, states, regulatory agencies, and foreign countries may
also enact new laws and regulations, or pursue regulatory,