Company: SYRA
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001493152-25-009873
Chunk: 538

Company: Syra Health Corp
Filing Date: 2025-03-11
Form: 10-K
Item: Item 3
Chunk 538
---
 and conditions contained in the note,
into Conversion Shares (as defined in the notes) immediately prior to the closing of such Corporate Transaction based upon a conversion
price equal to the lesser of (i) the Corporate Transaction Price (as defined in the notes) or (ii) the quotient resulting from dividing
(x) the Valuation Cap (as defined in the notes) by (y) the fully diluted capitalization immediately prior to the closing of the Corporate
Transactions.

    F-15

On
October 3, 2023, a total of $1,472,460, consisting of $1,455,000 of principal and $17,460 of interest, was converted into an aggregate
446,206 shares of Class A common stock in accordance with the terms of the convertible promissory notes.

Insurance
Notes Payable

In
2023, the Company entered into three insurance policy financing arrangements to purchase various insurance policies. The total principal
of these arrangements was $370,596 with interest rates ranging from 10.38% through 14.05% and monthly payments totaling $32,328 are due
through July 2024. The Company made principal repayments of $184,904 and incurred interest expense of $6,265 during the year ended December
31, 2024. As of December 31, 2024 and December 31, 2023, the remaining balance was $0 and $184,904, respectively.

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 $225,773 and incurred interest expense of $9,436 during the year ended December 31,
2024. As of December 31, 2024, the remaining balance was $152,887.

The
Company recognized interest expense for the years ended December 31, 2024 and 2023 as follows:

 Schedule of Recognized Interest Expense

    December 31,  
    December 31, 

    2024  
    2023 

    Interest on line of credit 
    $-  
    $27,054 
  
    Interest on convertible notes payable 
     -  
     17,460