Company: NDRA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110887
Chunk: 153

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 153
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 affect the market price of our common stock. Moreover, the risks of engaging in a digital
asset treasury strategy are relatively novel and have created, and could continue to create, complications due to the lack of experience
that third parties have with companies engaging in such a strategy, such as increased costs of director and officer liability insurance
or the potential inability to obtain such coverage on acceptable terms in the future.

Cryptocurrency holdings are less liquid than our existing cash
and cash equivalents and may not be able to serve as a source of liquidity for us to the same extent as cash and cash equivalents.

Historically, the crypto markets have been characterized by significant
volatility in price; limited liquidity and trading volumes compared to sovereign currencies markets; relative anonymity; a developing
regulatory landscape; potential susceptibility to market abuse and manipulation; compliance and internal control failures at exchanges;
and various other risks inherent in its entirely electronic, virtual form and decentralized network. During times of market instability,
we may not be able to sell our cryptocurrency at favorable prices or at all. Further, cryptocurrency which we hold with our custodians
does not enjoy the same protections as are available to cash or securities deposited with or transacted by institutions subject to regulation
by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. Additionally, pursuant to the asset management
agreement we intend to enter into with the asset manager, we are currently and may generally be unable to enter into term loans or other
capital raising transactions collateralized by our unencumbered cryptocurrency or otherwise generate funds using our cryptocurrency holdings,
including in particular during times of market instability or when the price of cryptocurrency has declined significantly. If we are unable
to sell our cryptocurrency, enter into additional capital raising transactions using cryptocurrency as collateral, or otherwise generate
funds using our cryptocurrency holdings, or if we are forced to sell our cryptocurrency at a significant loss, in order to meet our working
capital requirements, our business and financial condition could be negatively impacted.

Cryptocurrencies do not pay interest or dividends.

Cryptocurrencies do not pay interest or other returns and we can only
generate cash from our cryptocurrency holdings if we sell our cryptocurrency or implement strategies to create income streams or otherwise
generate cash by using our cryptocurrency holdings. Even if we pursue any such strategies, we may be unable to create income streams or
otherwise generate cash from our cryptocurrency holdings, and any such strategies may subject us to additional risks.

26

We are not subject to legal and regulatory obligations that apply
to investment companies such as mutual