Company: NDRA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001654954-25-005770
Chunk: 64

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 64
---
 guidance in ASC 815 “Derivative and Hedging” whereby under that provision the warrants do not meet the criteria for equity treatment and must be recorded as a liability. Accordingly, the Company classified the warrant instruments as a liability at fair value and adjusts the instruments to fair value each period. This liability will be re-measured at each balance sheet date until the warrants are exercised or expire, and any change in fair value will be recognized in the Company’s statement of operations. During the three months ended March 31, 2025, the Company recognized income from the change in fair value of warrant liability of $408,562 in the statement of operations. As of March 31, 2025, the Company recognized $390,722 as a warrant liability.

 12Table of Contents

Recurring Fair Value Measurements The Company’s warrant liability for the Series A and Series B Warrants is based on the Black-Scholes option pricing model utilizing management judgement and pricing inputs from observable and unobservable markets. Significant deviations from these estimates and inputs could result in a material change in fair value. The fair value of the warrant liability is classified within Level 2 of the fair value hierarchy because the Company uses observable inputs like market prices for its common stock and risk-free interest rate, but requires estimations for factors like the Company’s own volatility, which is not directly quoted in active markets. Measurement The Company established the initial fair value for the warrant liability on August 20, 2024, the date the warrants were initially exercisable. Upon exercise, the instrument is marked to its fair value upon exercise, and the shares delivered are recorded at fair value in the Company’s statement of stockholders’ equity. The warrant liability was valued based on the following inputs for the Series A and Series B Warrants, respectively: Input March 31, 2025 December 31, 2024 Exercise Price $75.95 $28.70 and $1.75 Stock Price $4.10 $7.26 Volatility 135% and 168% 131% and 167% Discount Rate 3.94% and 3.91% 4.36% Expected Dividend - - Expected Life (Years) 4.39 and 1.89 4.64 

Note 10 - Related Party Transactions In September 2024, the Company began using IS Bookkeeping & Payroll, which is a division of