Company: NDRA
Filing Date: 2025-07-25
Form Type: S-1/A
Source: 0001654954-25-008477
Chunk: 14

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-07-25
Form: S-1/A
Chunk 14
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encrypted. The air-gapped, hardened, and tamper-resistant HSMs are housed in commercial data centers to prevent physical attacks as well as attempts to remotely interact with the device’s firmware without authorization. Anchorage HSMs utilize custom firmware to enforce specialized policy at the request of each client: the HSM cannot use its keys to sign any operation unless the operation has been endorsed with cryptographic signatures from the necessary quorum of client-side users, which must be provided through individually enrolled iPhones, or if the operation goes through a pre-endorsed API. Each client user endorsement involves multiple forms of biometric authentication, and the submission of a range of behavioral analytic data for review by Anchorage. Any sensitive operation, such as a transaction that moves assets, or changes policy, requires a minimum of two endorsements from a set of at least three client users, to be specified by client administrators and immutable by Anchorage.       All movements out of Anchorage custody need to be endorsed via Anchorage’s iPhone application in order to receive biometric endorsement and proof of client liveness. Additionally, all high-risk operations are subject to a manual risk review by an Anchorage employee in order to detect any unauthorized manipulation of transaction interfaces or smart contract logic. Each client’s assets in Anchorage’s custody are fully segregated from other clients’ assets and from Anchorage’s assets. Account wallets are organized by vault and logically separated on-chain.    Digital assets with Anchorage are maintained through segregated accounts and may be further segregated within sub-accounts beneath a client account by multiple vaults. Anchorage maintains separate client vaults with unique addresses which can be viewed on the applicable blockchain.      Anchorage’s crime insurance policy covers events such as cybercrime, or internal collusion or fraudulent transfer by Anchorage employees resulting in asset loss. Anchorage has “end-to-end” insurance coverage, which means its crime insurance policy covers assets at all times when they are held at Anchorage, with no distinction between hot and cold storage. Anchorage’s crime policy coverage limit applies per incident, not per client, meaning if multiple clients are affected by the same incident, the total recovery would be distributed across all affected clients.    Accounting   Cryptocurrency accounting guidance has been evolving. According to the American Institute of Certified Public Accountants’ “Accounting for and auditing of Digital Assets practice aid,” bitcoin and certain other cryptocurrency would satisfy the definition of an indefinite-lived intangible asset and would be accounted for under ASC 350, Intangibles — Goodwill and Other issued by Financial Accounting Standards Board