Company: NDRA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110887
Chunk: 74

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 74
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5,
the pool of shares issuable under the Omnibus Plan automatically increased by 178,033 shares from 1,738 shares to 179,771 shares.

The Company records share-based compensation in
accordance with the provisions of the Share-based Compensation Topic of the FASB Codification. The guidance requires the use of option-pricing
models that require the input of highly subjective assumptions, including the option’s expected life and the price volatility of
the underlying stock. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option valuation model,
and the resulting charge is expensed using the straight-line attribution method over the vesting period.

Stock compensation expense recognized during the
period is based on the value of share-based awards that were expected to vest during the period adjusted for estimated forfeitures. The
estimated fair value of grants of stock options and warrants to non-employees of the Company is charged to expense, if applicable, in
the financial statements. These options vest in the same manner as the employee options granted under the stock incentive plan as described
above.

Going Concern

The Company’s financial statements are prepared
using accounting principles generally accepted in the United States (“U.S. GAAP”) applicable to a going concern, which contemplates
the realization of assets and liquidation of liabilities in the normal course of business. The Company has limited commercial experience
and had a cumulative net loss from inception to September 30, 2025 of $107,296,300. The Company had working capital of $248,402 as of
September 30, 2025. The Company has not established an ongoing source of revenue sufficient to cover its operating costs and to allow
it to continue as a going concern and will require additional financing to fund its future planned operations, including research and
development and commercialization of its products. These matters raise substantial doubt about the Company’s ability to continue
as going concern. The accompanying financial statements for the nine months ended September 30, 2025 have been prepared assuming the Company
will continue as a going concern, but the ability of the Company to continue as a going concern is dependent on the Company obtaining
adequate capital to fund operating losses until it establishes a revenue stream and becomes profitable. Management’s plans to continue
as a going concern include raising additional capital through sales of equity securities and borrowing. However, management cannot provide
any assurances that the Company will be successful in accomplishing any of its plans. If the