Company: SYRA
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001493152-25-009873
Chunk: 528

Company: Syra Health Corp
Filing Date: 2025-03-11
Form: 10-K
Item: Item 3
Chunk 528
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uted Loss Per Share

Basic
earnings per share (“EPS”) are computed by dividing net income (the numerator) by the weighted average number of common shares
outstanding for the period (the denominator). Weighted average shares for basic EPS are calculated based on weighted average Class A
and Class B shares outstanding. Diluted EPS is computed by dividing net income by the weighted average number of common shares and potential
common shares outstanding (if dilutive) during each period. Potential common shares include stock options, warrants, conversion of Class
B shares and restricted stock. The number of potential common shares outstanding relating to stock options, warrants, conversion of Class
B shares and restricted stock is computed using the treasury stock method. For the periods presented, potential dilutive securities had
an anti-dilutive effect and were not included in the calculation of diluted net loss per common share.

Income
Taxes

The
Company accounts for income taxes under the Financial Accounting Standards Board (“FASB”) ASC 740 Income Taxes (“ASC
740”), which requires use of the liability method. FASB ASC 740-10-25 provides that deferred tax assets and liabilities are recognized
for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities
and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided for
significant deferred tax assets when it is more likely than not, that such asset will not be recovered through future operations.

Uncertain
Tax Positions

In
accordance with ASC 740, the Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that
the tax position will be capable of withstanding examination by the taxing authorities based on the technical merits of the position.
These standards prescribe a recognition threshold and measurement attribute for the financial statement recognition and measurement of
a tax position taken or expected to be taken in a tax return. These standards also provide guidance on de-recognition, classification,
interest and penalties, accounting in interim periods, disclosure, and transition.

    F-10

Various
taxing authorities may periodically audit the Company’s income tax returns. These audits include questions regarding the Company’s
tax filing positions, including the timing and amount of deductions and the allocation of income to various tax jurisdictions. In evaluating
the exposures connected with various tax filing positions, including state and