Company: NDRA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110887
Chunk: 260

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 260
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 numerous alternative digital assets and many entities,
including consortia and financial institutions, are researching and investing resources into private or permissioned blockchain platforms
or digital assets. For example, some cryptocurrency networks utilize proof-of-work mining. Others use a “proof-of-stake” mechanism
for validating transactions that requires significantly less computing power than proof-of-work mining. If the mechanisms for validating
transactions in alternative digital assets are perceived as superior to the mechanisms used by the digital assets in which we invest,
those digital assets could gain market share.

Other alternative digital assets could include “stablecoins,”
which are designed to maintain a constant price because of, for instance, their issuers’ promise to hold high-quality liquid assets
(such as U.S. dollar deposits and short-term U.S. treasury securities) equal to the total value of stablecoins in circulation. Stablecoins
have grown rapidly as an alternative to other digital assets as a medium of exchange and store of value, particularly on digital asset
trading platforms.

Additionally, central banks in some countries have started to introduce
digital forms of legal tender. For example, China’s CBDC project was made available to consumers in January 2022, and governments
including the United States, the United Kingdom, the European Union, and Israel have been discussing the potential creation of new CBDCs.
Whether or not they incorporate blockchain or similar technology, CBDCs, as legal tender in the issuing jurisdiction, could also compete
with, or replace, other digital assets as a medium of exchange or store of value. As a result, the emergence or growth of these or other
digital assets could cause the market price of cryptocurrencies we hold to decrease, which could have a material adverse effect on our
business, financial condition and results of operations.

If we were deemed to be an investment company under the 1940
Act, applicable restrictions likely would make it impractical for us to continue segments of our business as currently contemplated.

Under Sections 3(a)(1)(A) and (C) of the 1940 Act, a company generally
will be deemed to be an “investment company” if (i) it is, or holds itself out as being, engaged primarily, or proposes to
engage primarily, in the business of investing, reinvesting, or trading in securities or (ii) it engages, or proposes to engage, in the
business of investing, reinvesting, owning, holding, or trading in securities and it owns or proposes to acquire investment securities
having