Company: SYRA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009279
Chunk: 19

Company: Syra Health Corp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 19
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     9.25%

Note 9 – Notes Payable

Insurance Notes Payable

In 2024, the Company entered into two insurance policy
financing arrangements to purchase various insurance policies. The total principal of these arrangements was $378,659 with interest rates
of 10.350% and 10.50% and monthly payments of $11,783 and $19,171 due through July 2025. The Company made principal repayments of $77,851
and incurred interest expense of $3,229 during the three months ended March 31, 2025. The Company made principal repayments of $225,773
and incurred interest expense of $9,436 during the year ended December 31, 2024. As of March 31, 2025 and December 31, 2024, the remaining
balance was $75,036 and $152,887, respectively.

The Company recognized interest expense for the three
months ended March 31, 2025 and 2024 as follows:

Schedule of Recognized Interest Expense

    March 31,  
    March 31, 

    2025  
    2024 

    Interest on notes payable 
     3,229  
     4,077 
  
    Interest on credit card debt 
     -  
     - 
  
    Total interest expense 
    $3,229  
    $4,077 

    F-13

Note 10 – Commitments and Contingencies

Legal Contingencies

From time to time, the Company may
be involved in various disputes and litigation matters that arise in the ordinary course of business. The Company is currently not a party
to any material legal proceedings.

In January 2024, a former employee filed a wrongful
termination lawsuit against the Company in the U.S. District Court, Southern District of Indiana. In January 2025, the Company entered
into a settlement agreement with the former employee for an immaterial amount and the case is dismissed.

Note 11 – Changes in Stockholders’
Equity (Deficit)

Class A Common Stock

The Company has 100,000,000 authorized shares of $0.001
par value Class A common stock, and 11,339,169 shares were issued and outstanding as of March 31, 2025.

During the three months ended March 31, 2025, two
investors exercised