Company: NDRA
Filing Date: 2025-11-06
Form Type: S-3
Source: 0001213900-25-107232
Chunk: 23

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-06
Form: S-3
Chunk 23
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 cryptocurrency could have accounting, regulatory and other impacts, as well. While we currently intend to primarily own cryptocurrency directly, we may investigate other potential approaches to owning cryptocurrencies, including indirect ownership (for example, through ownership interests in a fund that owns cryptocurrencies and deemed ownership via ownership of cryptocurrency derivative assets). If we were to own all or a portion of our cryptocurrencies in a different manner, the accounting treatment for our cryptocurrencies, our ability to use our cryptocurrencies as collateral for additional borrowings, and the regulatory requirements to which we are subject, may correspondingly change. For example, the volatile nature of cryptocurrencies may force us to liquidate our holdings to use it as collateral, which could be negatively impacted by any disruptions in the cryptocurrency market, and if liquidated, the value of the collateral would not reflect potential gains in market value of our cryptocurrency.

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Our management relies upon the advice of an asset manager through an asset management agreement to assist in building a narrowly focused investment strategy and the execution of the Company’s strategy and may not yield the desired return.

We have engaged an asset
manager to manage our cryptocurrency holdings and have adopted a treasury policy in which we plan to maintain a majority of our holdings
in one to five decentralized finance digital assets, including HYPE. Our management, cryptocurrency advisory board and such asset manager
will have broad discretion in the application of the net proceeds from any offering by the Company and could spend the proceeds in ways
that do not improve our results of operations or enhance the value of our common stock. The failure to apply these funds effectively
could result in financial losses that could cause the price of our common stock to decline.

Cryptocurrency price volatility may materially depress asset valuations, necessitating substantial cash reserves or liquidity buffers to maintain operational resilience. These risks are compounded by the lack of comprehensive regulation governing cryptocurrency trading platforms, which face material exposure to fraud, market manipulation, security breaches, and operational failures that could materially and adversely affect the value of our cryptocurrency holdings.

We may invest in even more
cryptocurrencies in the future, which could materially and adversely affect our business, financial condition and results of operations,
primarily due to the inherent price volatility of cryptocurrency and the impact of accounting standards. Cryptocurrencies can be highly
susceptible to sharp price swings, which can significantly impact our financial statements, especially under mark-to-market accounting.
To mitigate these risks, companies holding significant amounts of cryptocurrencies must maintain substantial capital reserves to absorb
potential declines in asset value without compromising their overall financial