Company: NDRA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110887
Chunk: 187

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 3
Chunk 187
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 to multiple similar custodians.

If our custodially-held cryptocurrencies are considered to be the property
of our custodians’ estates in the event that any such custodians were to enter bankruptcy, receivership or similar insolvency proceedings,
we could be treated as a general unsecured creditor of such custodians, inhibiting our ability to exercise ownership rights with respect
to such cryptocurrencies and this may ultimately result in the loss of the value related to some or all of such assets. A series of recent
high-profile bankruptcies, closures, liquidations, regulatory enforcement actions and other events relating to companies operating in
the digital asset industry, the closure or liquidation of certain financial institutions that provided lending and other services to the
digital assets industry, and the filing and subsequent settlement of a civil fraud lawsuit have highlighted the counterparty risks applicable
to owning and transacting in digital assets. These bankruptcies, closures, liquidations and other events have likely negatively impacted
the adoption rate and use of cryptocurrencies. Additional bankruptcies, closures, liquidations, regulatory enforcement actions or other
events involving participants in the digital assets industry in the future may further negatively impact the adoption rate, price, and
use of cryptocurrencies, limit the availability to us of financing collateralized by such assets, or create or expose additional counterparty
risks. Any loss associated with such insolvency proceedings is unlikely to be covered by any insurance coverage we maintain related to
our cryptocurrencies. Even if we are able to prevent our cryptocurrencies from being considered the property of a custodian’s bankruptcy
estate as part of an insolvency proceeding, it is possible that we would still be delayed or may otherwise experience difficulty in accessing
our cryptocurrencies held by the affected custodian during the pendency of the insolvency proceedings. Any such outcome could have a material
adverse effect on our financial condition and the market price of our listed securities.

Risks Related to Owning Our Securities, Our Financial
Results and Our Need for Financing

Our stock is subject to minimum requirements
to remain listed on the Nasdaq Capital Market, including a minimum bid price requirement and stockholders’ equity requirement, and
may be delisted if it does not maintain compliance with those requirements.

On May 3, 2024, the Company received a notification
letter from the Listing Qualifications Department of Nasdaq (the “Staff”) notifying the Company that, because the closing
bid price for the Company’s common stock listed on Nasdaq was below $1.00 for 30