Company: NDRA
Filing Date: 2025-11-06
Form Type: S-3
Source: 0001213900-25-107232
Chunk: 24

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-06
Form: S-3
Chunk 24
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 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.

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