Company: SYRA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009279
Chunk: 43

Company: Syra Health Corp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 43
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 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 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.

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 local taxes, the Company records allowances for probable exposures. A number of years
may elapse before a particular matter, for which an allowance has been established, is audited