| Summary of Significant Accounting Policies | Use of Estimates The preparation of the financial statements
in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the financial
statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Management makes estimates that affect certain
accounts including deferred income tax assets, accrued expenses, fair value of equity instruments and reserves for any other commitments
or contingencies. Any adjustments applied to estimates are recognized in the period in which such adjustments are determined. The COVID-19 outbreak, which the World Health
Organization has classified as a pandemic, has prompted governments and regulatory bodies throughout the world to issue “stay-at-home”
or similar orders, and enact restrictions on the performance of “non-essential” services, public gatherings and travel. The extent to which COVID-19 impacts the Company’s
business and financial results will depend on numerous evolving factors including, but not limited to: the magnitude and duration
of COVID-19, the extent to which it will impact worldwide macroeconomic conditions, the speed of the anticipated recovery, access
to capital markets, and governmental and business reactions to the pandemic. The Company assessed certain accounting matters that
generally require consideration of forecasted financial information in context with the information reasonably available to the
Company and the unknown future impacts of COVID-19 as of September 30, 2020 and through the date of the filing of this Quarterly
Report on Form 10-Q. The accounting matters assessed included, but were not limited to estimates related to the accounting for
potential liabilities and accrued expenses, the assumptions utilized in valuing stock-based compensation issued for services, the
realization of deferred tax assets, and assessments of impairment related to long-lived assets. The Company’s future assessment
of the magnitude and duration of COVID-19, as well as other factors, could result in additional material impacts to the Company’s
consolidated financial statements in future reporting periods. Despite the Company’s efforts, the ultimate
impact of COVID-19 depends on factors beyond the Company’s knowledge or control, including the duration and severity of the
outbreak, as well as third-party actions taken to contain its spread and mitigate its public health effects. As a result, the Company
is unable to estimate the extent to which COVID-19 will negatively impact its financial results or liquidity. Principles
of Consolidation The Company’s
consolidated financial statements include all accounts of the Company and its consolidated subsidiary and/or entities as of reporting
period ending date(s) and for the reporting period(s) then ended. All inter-company balances and transactions have been eliminated. Basis
of Presentation The accompanying
unaudited condensed consolidated financial statements and related notes have been prepared pursuant to the rules and regulations
of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant
to such rules and regulations. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2020 are not necessarily
indicative of the results that may be expected for the year ended December 31, 2020. The balance sheet at December 31, 2019 has
been derived from the audited financial statements at that date. For further information, refer to the financial statements and
footnotes thereto included in ENDRA Life Sciences Inc. annual financial statements for the twelve months ended December 31, 2019
included in the Company’s Annual Report on Form 10-K filed with the SEC on March 26, 2020. Cash
and Cash Equivalents The Company
considers all cash on hand and in banks, including accounts in book overdraft positions, certificates of deposit and other highly-liquid
investments with maturities of one year or less, when purchased, to be cash. As of September 30, 2020 and December 31, 2019, the
Company had no cash equivalents. The Company maintains its cash in bank deposit accounts which, at times, may exceed federally
insured limits. The Company has not experienced any losses in such accounts and periodically evaluates the credit worthiness of
the financial institutions and has determined the credit exposure to be negligible. Inventory The Company’s
inventory is stated at the lower of cost or estimated net realizable value, with cost primarily determined on a weighted-average
cost basis on the first-in, first-out method. The Company periodically determines whether a reserve should be taken for devaluation
or obsolescence of inventory. Capitalization
of Fixed Assets The Company
capitalizes expenditures related to property and equipment, subject to a minimum rule, that have a useful life greater than one
year for: (1) assets purchased; (2) existing assets that are replaced, improved or the useful lives have been extended; or (3)
all land, 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 In February 2016, the Financial Accounting Standards
Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases.” ASU 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. ASU 2016-02 is effective for all interim and annual reporting periods beginning after December 15, 2018.
Early adoption is permitted. 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,
2020 and December 31, 2019 the Company recorded a lease liability of $364,113 and $409,005, respectively. Revenue Recognition In May 2014, the FASB issued ASU No. 2014-09,
“Revenue from Contracts with Customers” (“ASC Topic 606”). This standard 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. The Company adopted the updated guidance effective January 1, 2018 using the full retrospective method. The new standard
did not have a material impact on its financial position and results of operations, as it did not change the manner or timing of
recognizing revenue. 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 nine months ended September 30, 2020 and 2019, the Company incurred $4,774,534
and $4,546,746 of expenses related to research and development costs, respectively. Net Earnings (Loss) Per Common Share The Company computes earnings per share under
ASC Subtopic 260-10, “Earnings Per Share”. Basic earnings (loss) per share is computed by dividing the net income (loss)
attributable to the common stockholders (the numerator) by the weighted average number of shares of common stock outstanding (the
denominator) during the reporting periods. Diluted loss per share is computed by increasing the denominator by the weighted average
number of additional shares that could have been outstanding from securities convertible into common stock (using the “treasury
stock” method), unless their effect on net loss per share is anti-dilutive. There were 9,906,186 and 24,949,725 potentially
dilutive shares, which include shares of common stock issuable upon the exercise or conversion of outstanding preferred stock,
stock options, warrants, and convertible notes, as of September 30, 2020 and December 31, 2019, respectively. The potentially dilutive shares, which are excluded
from the determination of basic and diluted net loss per share as their effect is anti-dilutive, are as follows:
September 30, 2020
December 31, 2019
Options to purchase common stock 3,403,874 3,449,319
Warrants to purchase common stock 6,283,590 13,496,924
Shares issuable upon conversion of notes - 362,568
Shares issuable upon conversion of Series A Preferred Stock 218,722 7,285,651
Shares issuable upon conversion of Series B Preferred Stock - 355,263
Potentially dilutive shares excluded 9,906,186 24,949,725 Fair Value Measurements Disclosures
about fair value of financial instruments require disclosure of the fair value information, whether or not recognized in the balance
sheet, where it is practicable to estimate that value. In accordance
with ASC Topic 820, “Fair Value Measurements and Disclosures,” the Company measures certain financial instruments at
fair value on a recurring basis. ASC Topic 820 defines fair value, established a framework for measuring fair value in accordance
with accounting principles generally accepted in the United States, and expands disclosures about fair value measurements. Fair value
is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. ASC Topic 820 established a three-tier fair value hierarchy, which prioritizes the
inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for
identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These
tiers include: ● Level 1, defined
as observable inputs such as quoted prices for identical instruments in active markets; ● Level 2, defined
as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for
similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined
as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions,
such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Financial assets are considered Level 3 when
their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one
significant model assumption or input is unobservable. The carrying amounts of the Company’s
financial assets and liabilities, including cash, accounts receivable, prepaid expenses, accounts payable, accrued expenses, and
other current liabilities, approximate their fair values because of the short maturity of these instruments. The fair value of
notes payable and convertible notes approximates their fair values since the current interest rates and terms on these obligations
are the same as prevailing market rates. Share-based Compensation The Company’s 2016 Omnibus Incentive Plan
(the “Omnibus Plan”) permits the grant of stock options and other share-based awards to its employees, consultants
and non-employee members of the board of directors. Each January 1 the pool of shares available for issuance under the Omnibus
Plan automatically increases by an amount equal to the lesser of (i) the number of shares necessary such that the aggregate number
of shares available under the Omnibus Plan equals 25% of the number of fully-diluted outstanding shares on the increase date (assuming
the conversion of all outstanding shares of preferred stock and other outstanding convertible securities and exercise of all outstanding
options and warrants to purchase shares) and (ii) if the board of directors takes action to set a lower amount, the amount determined
by the board. On January 1, 2020, the pool of shares issuable under the Omnibus Plan automatically increased by 3,202,280 shares
from 2,649,378 shares to 5,861,658. As of September 30, 2020, there were 2,457,784 shares of common stock remaining available for
issuance under the Omnibus Plan. The Company records share-based compensation
in accordance with the provisions of the Share-based Compensation Topic of the FASB Codification. The guidance requires the use
of option-pricing models that require the input of highly subjective assumptions, including the option’s expected life and
the price volatility of the underlying stock. The fair value of each option grant is estimated on the date of grant using the Black-Scholes
option valuation model, and the resulting charge is expensed using the straight-line attribution method over the vesting period. Stock compensation expense recognized during
the period is based on the value of share-based awards that were expected to vest during the period adjusted for estimated forfeitures.
The estimated fair value of grants of stock options and warrants to non-employees of the Company is charged to expense, if applicable,
in the financial statements. These options vest in the same manner as the employee options granted under the stock incentive plan
as described above. Debt Discount The Company determined if its convertible promissory
notes should be accounted for as liability or equity under ASC Topic 480, “Liabilities — Distinguishing Liabilities
from Equity.” ASC Topic 480 applies to certain contracts involving a company’s own equity, and requires that issuers
classify the following freestanding financial instruments as liabilities: mandatorily redeemable financial instruments, obligations
that require or may require repurchase of the issuer’s equity shares by transferring assets (e.g., written put options and
forward purchase contracts), and certain obligations where at inception the monetary value of the obligation is based solely or
predominantly on: ● A fixed monetary amount known at inception (for example,
a payable settleable with a variable number of the issuer’s equity shares with an issuance date fair value equal to a fixed
dollar amount); ● Variations in something other than the
fair value of the issuer’s equity shares (for example, a financial instrument indexed to the S&P 500 and settleable with
a variable number of the issuer’s equity shares); or ● Variations inversely related to changes
in the fair value of the issuer’s equity shares (for example, a written put that could be net share settled). Beneficial Conversion Feature If the conversion feature of conventional convertible
debt provides for a rate of conversion that is below market value on the date of issuance, this feature is characterized as a beneficial
conversion feature (“BCF”). A BCF is recorded by the Company as a debt discount pursuant to ASC Topic 470-20 “Debt
with Conversion and Other Options.” In those circumstances, the convertible debt is recorded net of the discount related
to the BCF and the Company amortizes the discount to interest expense over the life of the debt using the effective interest method. If the Company determines the instrument meets
the guidance under ASC Topic 480, the instrument is accounted for as a liability with a respective debt discount. The Company has
previously recorded debt discounts in connection with raising funds through the issuance of promissory notes. These costs are amortized
to noncash interest expense over the life of the debt. If a conversion of the underlying debt occurs, a proportionate share of
the unamortized amounts is immediately expensed. Going Concern The Company’s financial statements are
prepared using accounting principles generally accepted in the United States (“U.S. GAAP”) applicable to a going concern,
which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has limited
commercial experience and had a cumulative net loss from inception to September 30, 2020 of $55,087,728. The Company had working
capital of $3,380,876 as of September 30, 2020. The Company has not established an ongoing source of revenue sufficient to cover
its operating costs and to allow it to continue as a going concern. The accompanying financial statements for the period ended
September 30, 2020 have been prepared assuming the Company will continue as a going concern. The Company’s cash resources
will likely be insufficient to meet its anticipated needs during the next twelve months. The Company will require additional financing
to fund its future planned operations, including research and development and commercialization of its products. The ability of the Company to continue as a
going concern is dependent on the Company obtaining adequate capital to fund operating losses until it establishes a revenue stream
and becomes profitable. Management’s plans to continue as a going concern include raising additional capital through sales
of equity securities and borrowing. However, management cannot provide any assurances that the Company will be successful in accomplishing
any of its plans. As described further below under “Item 2. Management’s Discussion and Analysis of Financial Condition
and Results of Operations” the COVID-19 pandemic has impacted our business operations to some extent and is expected to continue
to do so and, in light of the effect of such pandemic on financial markets, these impacts may include reduced access to capital.
If the Company is not able to obtain the necessary additional financing on a timely basis, the Company will be required to delay,
reduce the scope of, or eliminate one or more of the Company’s research and development activities or commercialization efforts
or perhaps even cease the operation of its business. The ability of the Company to continue as a going concern is dependent upon
its ability to successfully secure other sources of financing and attain profitable operations. There is substantial doubt about
the ability of the Company to continue as a going concern for one year from the issuance of the accompanying consolidated financial
statements. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company
is unable to continue as a going concern. Recent Accounting Pronouncements The Company
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