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

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 regardless of cost. Acquisitions of new assets,
additions, replacements and improvements (other than land) costing less than the minimum rule in addition to maintenance and repair costs,
including any planned major maintenance activities, are expensed as incurred.

Leases

Accounting Standards Update (“ASU”)
No. 2016-02 requires a lessee to record a right of use asset and a corresponding lease liability on the balance sheet for all leases with
terms longer than 12 months. A modified retrospective transition approach is required for lessees for capital and operating leases existing
at, or entered into after, the beginning of the earliest period presented in the financial statements. At September 30, 2025 and December
31, 2024 the Company recorded a right of use asset of $491,363 and $578,013, respectively. At September 30, 2025 and December 31, 2024
the Company recorded a lease liability of $525,328 and $584,419, respectively.

Revenue Recognition

ASU No. 2014-09, “Revenue from Contracts
with Customers” (“ASC Topic 606”) provides a single set of guidelines for revenue recognition to be used across all
industries and requires additional disclosures. The updated guidance introduces a five-step model to achieve its core principal of the
entity recognizing revenue to depict the transfer of goods or services to customers at an amount that reflects the consideration to which
the entity expects to be entitled in exchange for those goods or services.

Under ASC Topic 606, in order to recognize revenue,
the Company is required to identify an approved contract with commitments to perform respective obligations, identify rights of each party
in the transaction regarding goods to be transferred, identify the payment terms for the goods transferred, verify that the contract has
commercial substance and verify that collection of substantially all consideration is probable. The adoption of ASC Topic 606 did not
have an impact on the Company’s operations or cash flows.

Research and Development Costs

The Company follows FASB Accounting Standards
Codification (“ASC”) Subtopic 730-10, “Research and Development”. Research and development costs are charged to
the statement of operations as incurred. During the three months ended September 30, 2025 and 2024, the Company incurred $432,113 and
$794,444 of expenses related to research and development costs, respectively.  During the nine months ended September 30, 2025 and
2024, the Company