Company: NDRA
Filing Date: 2025-10-30
Form Type: 424B5
Source: 0001213900-25-103705
Chunk: 18

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-10-30
Form: 424B5
Chunk 18
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 Administration’s Executive Order titled “Strengthening
American Leadership in Digital Financial Technology” which includes as an objective “protecting and promoting the ability
of individual citizens and private sector entities alike to access and to maintain self-custody of digital assets,” cryptocurrency
has not yet been classified with respect to U.S. federal securities laws. Therefore, while (for the reasons discussed below) we believe
that HYPE and other cryptocurrencies intrinsically linked to a blockchain system are digital commodities and not a “securities”
within the meaning of the U.S. federal securities laws, and registration of the Company under the 1940 Act, is therefore not required
under the applicable securities laws, we acknowledge that a regulatory body or federal court may determine otherwise. Therefore, our belief,
even if reasonable under the circumstances, would not preclude legal or regulatory action based on such a finding that cryptocurrency
is a “security,” which would require us to register as an investment company under the 1940 Act.

We have also adapted our process for analyzing
the U.S. federal securities law status of cryptocurrencies over time, as guidance and case law have evolved. As part of our U.S. federal
securities law analytical process, we take into account a number of factors, including the various definitions of “security”
under U.S. federal securities laws and federal court decisions interpreting the elements of these definitions, such as the U.S. Supreme
Court’s decisions in the Howey and Reves cases, as well as court rulings, reports, orders, press
releases, public statements, and speeches by the SEC Commissioners and SEC Staff providing guidance on when a digital asset or a transaction
to which a digital asset may relate may be a security for purposes of U.S. federal securities laws. Our belief that HYPE and other blockchain-linked
cryptocurrencies in which we intend to invest are not a “security” is premised, among other reasons, on our belief that such
cryptocurrencies do not meet the elements of the Howey test. For instance, ownership of HYPE and other blockchain-linked
cryptocurrencies do not convey the right to receive any interest, rewards, or other returns.

We acknowledge, however, that the SEC, a federal
court or another relevant entity could take a different view. The regulatory treatment of cryptocurrency is such that it has drawn significant
attention from legislative and regulatory bodies, in particular the SEC which has previously stated it deemed cryptocurrency a security.
Application of securities laws to the specific facts