Company: NDRA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110887
Chunk: 243

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1
Chunk 243
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 and vulnerable to a variety of risks, including disruptions, security breaches, and fundamental technical
issues. Both networks are vulnerable to attacks by malicious actors who gain control of a significant portion of the network’s mining
hash rate, a scenario commonly referred to as a 51% attack. In such an event, the attacker could double-spend transactions, reverse previously
confirmed transactions, or otherwise disrupt the normal operations of the network. Successful 51% attacks have historically undermined
trust in affected blockchain networks and could materially decrease the value of cryptocurrency assets.

Additionally, forks, or splits in the underlying protocol, may occur
when participants fail to reach consensus on proposed upgrades or changes. Forks can lead to the creation of duplicate networks, confusion
among market participants, dilution of the original network’s value, and disruption of the network’s operations. Hard forks,
in particular, can materially and adversely impact the perceived stability and value of digital assets, leading to reduced demand and
price declines.

Further, hacks and other security breaches targeting the core infrastructure
of blockchain networks or major participants, such as exchanges and custodians, could severely impact the reputation and market confidence
in these networks. Exploits of protocol-level vulnerabilities could also compromise the integrity of the cryptocurrency blockchains, resulting
in a substantial loss of value.

The success and growth of cryptocurrency assets depend significantly
on their continued security, stability, and scalability. Any technical failures, consensus breakdowns, governance disputes, or regulatory
interventions that diminish confidence in the networks or impair their functionality could lead to a material decline in their market
prices, which could materially and adversely impact our business, financial condition and results of operations. A sustained 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