Company: NDRA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110887
Chunk: 149

Company: ENDRA Life Sciences Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 149
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 regulations to digital assets is unclear in certain respects,
it is possible that regulators in the United States or foreign countries may interpret or apply existing laws and regulations in a manner
that adversely affects the price of cryptocurrency. The U.S. federal government, states, regulatory agencies, and foreign countries may
also enact new laws and regulations, or pursue regulatory, legislative, enforcement or judicial actions, that could materially impact
the price of cryptocurrency or the ability of individuals or institutions such as us to own or transfer cryptocurrency.

If cryptocurrency is determined to constitute a security for purposes
of the federal securities laws, the additional regulatory restrictions imposed by such a determination could adversely affect the market
price of cryptocurrency and in turn adversely affect the market price of our common stock. Moreover, the risks of us engaging in a cryptocurrency
treasury strategy have created, and could continue to create complications due to the lack of experience that third parties have with
companies engaging in such a strategy, such as increased costs of director and officer liability insurance or the potential inability
to obtain such coverage on acceptable terms in the future.

Changes in the accounting treatment of cryptocurrency holdings
could have significant accounting impacts, including increasing the volatility of our results.

In December 2023, the FASB issued ASU 2023-08, which upon our adoption
will require us to measure in-scope cryptocurrency assets at fair value in our statement of financial position, and to recognize gains
and losses from changes in the fair value of our cryptocurrency in net income each reporting period. ASU 2023-08 will also require us
to provide certain interim and annual disclosures with respect to our cryptocurrency holdings. The standard is effective for our interim
and annual periods beginning January 1, 2025, with a cumulative-effect adjustment to the opening balance of retained earnings as of the
beginning of the annual reporting period in which we adopt the guidance. Due in particular to the volatility in the price of cryptocurrencies,
we expect the adoption of ASU 2023-08 to have a material impact on our financial results in future periods, increase the volatility of
our financial results, and affect the carrying value of our cryptocurrency on our balance sheet, and it could also have adverse tax consequences,
which in turn could have a material adverse effect on our financial results and the market price of our common stock. Additionally, as
a result of ASU 2023-08 requiring a cumulative-effect adjustment to our opening balance of retained earnings as of the beginning of the
annual period in which we