Company: NDRA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110887
Chunk: 49

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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, 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. Future fluctuations in HYPE and other cryptocurrency’s trading
prices may result in our converting cryptocurrency purchased with the net proceeds from any offering into cash with a value substantially
below the net proceeds from such an offering.

Cryptocurrency and other digital assets are novel assets, and are subject
to significant legal, commercial, regulatory and technical uncertainty, which could adversely impact their price. The application of state
and federal securities laws and other laws and regulations to digital assets is unclear in certain respects, and 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 various cryptocurrencies. The U.S. federal government, states, regulatory agencies, and foreign countries may also enact new
laws and regulations, or pursue regulatory, legislative, enforcement or judicial actions, that could materially impact the price of cryptocurrency
or the ability of individuals or institutions such as us to own or transfer cryptocurrency. For example, the U.S. executive branch and
SEC, among others in the United States and abroad, have been active in recent years, and laws including the European Union’s Markets
in Crypto Asset Regulation and the U.K.’s Financial Services and Markets Act 2023 became law. It is not possible to predict whether,
or when, any of these developments will lead to Congress granting additional authorities to the SEC or other regulators, or whether, or
when, any other federal, state or foreign legislative bodies will take any similar actions.