Company: NDRA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110887
Chunk: 184

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 3
Chunk 184
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 to, and do not otherwise voluntarily
comply with, these laws and regulations. This means, among other things, that the execution of or changes to our cryptocurrency treasury
strategy, our use of leverage, the manner in which our cryptocurrency is intended to be custodied, our ability to engage in transactions
with affiliated parties and our operating and investment activities generally are not subject to the extensive legal and regulatory requirements
and prohibitions that apply to investment companies and investment advisers. Consequently, our board of directors has broad discretion
over the investment, leverage and cash management policies it authorizes, whether in respect of our cryptocurrency holdings or other activities
we may pursue, and has the power to change our current policies, including our strategy of acquiring and holding cryptocurrency.

If we or our third-party service providers experience a security
breach or cyberattack and unauthorized parties obtain access to our cryptocurrency, or if our private keys are lost or destroyed, or other
similar circumstances or events occur, we may lose some or all of our cryptocurrency and our financial condition and results of operations
could be materially adversely affected.

Security breaches and cyberattacks are of particular concern with respect
to cryptocurrency. Blockchain-based cryptocurrencies and the entities that provide services to participants in the cryptocurrency ecosystem
have been, and may in the future be, subject to security breaches, cyberattacks, or other malicious activities. For example, in October
2021, it was reported that hackers exploited a flaw in the account recovery process and stole from the accounts of at least 6,000 customers
of the Coinbase exchange, although the flaw was subsequently fixed and Coinbase reimbursed affected customers. Similarly, in November
2022, hackers exploited weaknesses in the security architecture of the FTX Trading digital asset exchange and reportedly stole over $400
million in digital assets from customers. A successful security breach or cyberattack could result in:

●a partial or total loss of our cryptocurrency in a manner that may not be
covered by insurance or the liability provisions of the custody agreements with the custodians who hold our cryptocurrency;

●harm to our reputation and brand;

●improper disclosure of data and violations of applicable data privacy and
other laws; or

●significant regulatory scrutiny, investigations, fines, penalties, and other
legal, regulatory, contractual and financial exposure.

Further, any actual or perceived data security breach or cybersecurity
attack directed at other companies with digital assets or companies that operate digital asset networks, regardless of whether we are
directly impacted, could lead to a general loss of confidence