Company: NDRA
Filing Date: 2025-10-30
Form Type: 424B5
Source: 0001213900-25-103705
Chunk: 22

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-10-30
Form: 424B5
Chunk 22
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 unrelated to the Company, in February 2022, the SEC issued a cease-and-desist order under
the 1940 Act to BlockFi Lending LLC, in which the SEC alleged that BlockFi was operating as an unregistered investment company because
it issued securities and also held more than 40% of its total assets, excluding cash, in investment securities, including the loans of
digital assets made by BlockFi to institutional borrowers.

If we were deemed to be an investment company,
Rule 3a-2 under the 1940 Act is a safe harbor that provides a one-year grace period for transient investment companies that have
a bona fide intent to be engaged primarily, as soon as is reasonably possible (in any event by the termination of such one-year period),
in a business other than that of investing, reinvesting, owning, holding, or trading in securities, with such intent evidenced by the
company’s business activities and an appropriate resolution of its board of directors. The grace period is available not more than
once every three years and runs from the earlier of (i) the date on which the issuer owns securities and/or cash having a value exceeding
50% of the issuer’s total assets on either a consolidated or unconsolidated basis or (ii) the date on which the issuer owns or proposes
to acquire investment securities having a value exceeding 40% of the value of such issuer’s total assets (exclusive of U.S. government
securities and cash items) on an unconsolidated basis. Accordingly, the grace period may not be available at the time that we seek to
rely on Rule 3a-2; however, Rule 3a-2 is a safe harbor and we may rely on any exemption or exclusion from investment company status available
to us under the 1940 Act at any given time. Furthermore, reliance on Rule 3a-2, Section 3(a)(1)(C), or Rule 3a-1 could require us to take
actions to dispose of securities, limit our ability to make certain investments or enter into joint ventures, or otherwise limit or change
our service offerings and operations. If we were to be deemed an investment company in the future, restrictions imposed by the 1940 Act—including
limitations on our ability to issue different classes of stock and equity compensation to directors, officers, and employees and restrictions
on management, operations, and transactions with affiliated persons—likely would make it impractical for us to continue