Company: SYRA
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001493152-25-009873
Chunk: 695

Company: Syra Health Corp
Filing Date: 2025-03-11
Form: 10-K
Item: Item 6
Chunk 695
---
262  

    Less: imputed interest 
     (37,072) 

    Present value of lease liability 
     299,190  
     2.50 

    F-14

Note
9 – Notes Payable

Line
of Credit

On
February 7, 2022, the Company entered into a business loan agreement (as amended, the “loan agreement”) with Citizens State
Bank of New Castle pursuant to which it originally received a revolving line of credit of up to $1,500,000 which was subsequently amended
to $800,000 (as amended, the “Revolving Line of Credit”). Pursuant to the terms of the Revolving Line of Credit, the outstanding
balance shall not exceed 75% of the Company’s outstanding accounts receivable due from the State of Indiana aged more than 90 days
together with all other accounts receivable aged less than 90 days. The Revolving Line of Credit was to terminate on December 31, 2022,
unless extended pursuant to the terms thereof. The Company received extensions on the Revolving Line of Credit such that it will now
terminate on October 24, 2023; however, no further advances are available under the Revolving Line of Credit. In the event of a default,
all commitments and obligations pursuant to the Revolving Line of Credit will terminate immediately and, at Citizens State Bank of New
Castle’s request, all Indebtedness (as defined in the loan agreement) shall become immediately due and payable. Advances on the
Revolving Line of Credit are pursuant to a promissory note dated February 7, 2022 which accrues interest at a variable rate of 1.5% above
the national prime interest rate as quoted in the Wall Street Journal, not to be less than 4.75% per annum or more than 21% per annum
or the maximum rate allowed by law. Interest shall increase by an 2.0% in the event of a default. Pursuant to the promissory note, the
Company has been required to pay monthly payments of unpaid interest since March 7, 2022. The Company may prepay all or a portion of
the amount due prior to the date upon which it is due without any penalty. In connection with the Revolving Line of Credit, the Company
entered into a commercial security agreement with Citizens State Bank of New Castle dated February 7, 2022,