Company: NDRA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110887
Chunk: 210

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 4
Chunk 210
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 in asset value without
compromising their overall financial health. This heightened need for liquidity reflects the increased risk associated with holding cryptocurrencies
and underscores the importance of robust risk management strategies when navigating the uncertainties of the digital asset market.

Digital asset trading platforms handling cryptocurrencies and particularly
small-cap cryptocurrencies are relatively new and often operate without the oversight typical of regulated securities or commodities markets.
Many platforms, particularly those based outside the United States, are subject to limited or inconsistent regulatory standards and often
do not provide transparent information about their ownership, management, or compliance practices. This lack of oversight increases the
risk of fraudulent activities such as artificial trading volume, wash trading, and market manipulation—issues that have been documented
in unregulated cryptocurrency markets and could similarly affect cryptocurrency trading. Reports have indicated that a significant portion
of trading volume on unregulated digital asset trading platforms may be artificially inflated or non-economic in nature.

Manipulative behavior on cryptocurrency exchanges can distort market
prices and lead to unexpected losses for investors. As a result, reduced market confidence in these platforms could negatively impact
the liquidity and value of cryptocurrencies. We may hold substantial amounts of cryptocurrencies and must be vigilant about these risks,
as trading activity that is not reflective of genuine market interest can lead to volatility and potential losses.

The operational integrity of digital asset trading platforms is another
critical risk factor. Many of these platforms may lack robust security measures, making them vulnerable to hacking, fraud, and other operational
problems. As we may hold large quantities of cryptocurrencies, we must consider the risk of security breaches, which could materially
and adversely affect our business, financial condition and results of operations.

25

We intend to use the majority of net proceeds from any future
offering by the Company to purchase additional cryptocurrency, the price of which has been, and will likely continue to be, highly volatile.

We may use the net proceeds from any future offering by the Company
to purchase additional HYPE and other cryptocurrencies in accordance with our treasury strategy. Cryptocurrency is a highly volatile asset.
Cryptocurrency does not pay interest, but if management determines to stake the cryptocurrency tokens in treasury, rewards can be earned
on cryptocurrency. The ability to generate a return on investment from the net proceeds from any offering by the Company will depend on
whether there is appreciation in the value of HYPE and other cryptocurrencies following our purchases of such cryptocurrency with the
net proceeds from any future offering by the Company and whether the Company is successful in pursuing other strategies to create income
streams or otherwise generate funds using its cryptocurrency holdings