Company: NDRA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110887
Chunk: 54

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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 or significant
decrease in the price or liquidity of cryptocurrencies, whether due to 51% attacks, forks, hacks, network disruptions, or other adverse
events, could negatively impact our business, financial condition, and results of operations. Furthermore, even the perception that any
of these events could occur may lead to significant market volatility and price declines, adversely affecting our business, financial
condition and results of operations.

Our custodially-held cryptocurrencies may become part of the
custodian’s insolvency estate if one or more of our custodians enters bankruptcy, receivership or similar insolvency proceedings.

We plan to hold substantially all of our cryptocurrency in custody
accounts at a U.S.-based, institutional-grade custodian that has demonstrated a record of regulatory compliance and information security.
As we further execute on our strategy, we intend to expand our holdings to multiple similar custodians.

If our custodially-held cryptocurrencies are considered to be the property
of our custodians’ estates in the event that any such custodians were to enter bankruptcy, receivership or similar insolvency proceedings,
we could be treated as a general unsecured creditor of such custodians, inhibiting our ability to exercise ownership rights with respect
to such cryptocurrencies and this may ultimately result in the loss of the value related to some or all of such assets. A series of recent
high-profile bankruptcies, closures, liquidations, regulatory enforcement actions and other events relating to companies operating in
the digital asset industry, the closure or liquidation of certain financial institutions that provided lending and other services to the
digital assets industry, and the filing and subsequent settlement of a civil fraud lawsuit have highlighted the counterparty risks applicable
to owning and transacting in digital assets. These bankruptcies, closures, liquidations and other events have likely negatively impacted
the adoption rate and use of cryptocurrencies. Additional bankruptcies, closures, liquidations, regulatory enforcement actions or other
events involving participants in the digital assets industry in the future may further negatively impact the adoption rate, price, and
use of cryptocurrencies, limit the availability to us of financing collateralized by such assets, or create or expose additional counterparty
risks. Any loss associated with such insolvency proceedings is unlikely to be covered by any insurance coverage we maintain related to
our cryptocurrencies. Even if we are able to prevent our cryptocurrencies from being considered the property of a custodian’s bankruptcy
estate as part of an insolvency proceeding, it is possible that we would still be delayed or may otherwise experience