Company: NDRA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110887
Chunk: 104

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 104
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 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 a value exceeding 40% of the value of its total assets (exclusive of U.S. government securities, shares of registered money market
funds under Rule 2a-7 of the 1940 Act, and cash items) on an unconsolidated basis. Rule 3a-1 under the 1940 Act generally provides that
notwithstanding the Section 3(a)(1)(C) test described in clause (ii) above, an entity will not be deemed to be an “investment company”
for purposes of the 1940 Act if no more than 45% of the value of its assets (exclusive of U.S. government securities, shares of registered
money market funds under Rule 2a-7 of the 1940 Act, and cash items) consists of, and no more than 45% of its net income after taxes (for
the past four fiscal quarters combined) is derived from, securities other than U.S. government securities, shares of registered money
market funds under Rule 2a-7 of the 1940 Act, securities issued by employees’ securities companies, securities issued by qualifying