Company: SYRA
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001493152-25-009873
Chunk: 163

Company: Syra Health Corp
Filing Date: 2025-03-11
Form: 10-K
Item: Item 1
Chunk 163
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 the contract and profit on those costs. If a contract is terminated for default, we generally are
entitled to payments for our work that has been accepted by the government; however, the government could make claims to reduce the contract
value or recover its procurement costs and could assess other special penalties. Additionally, our programs for the government often
operate for periods of time under undefinitized contract actions (“UCAs”), which means that we begin performing our obligations
before the terms, specifications or price are finally agreed to between the parties. The government’s power to unilaterally definitize
a contract can affect our ability to negotiate mutually agreeable contract terms and, if a contract is unilaterally imposed upon us,
it may negatively affect our expected profit and cash flows on a program or impose burdensome terms.

Governmental
entities in the U.S. continue to strengthen their position and scrutiny of practices that may indicate fraud, waste, and abuse affecting
government healthcare programs such as Medicare and Medicaid. Our relationships with pharmaceutical and medical product manufacturers,
healthcare providers, and other companies and individuals, as well as our provision of products and services to government entities,
subject our business to statutes, regulations, and government guidance that are intended to prevent fraud and abuse. Many of these laws
are vague or indefinite and have not been interpreted by the courts and, as such, may be interpreted or applied by a prosecutorial, regulatory,
or judicial authority in a manner that could require us to make changes in our operations at added expense. Failure to comply with these
laws could subject us to federal or state government investigations or qui tam actions, and to liability for damages and civil and criminal
penalties, including the loss of pursue government contracts.

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Healthcare
Regulation: Our marketing practices are subject to state laws, as well as federal laws, such as the Anti-Kickback Statute and False
Claims Act, intended to prevent fraud and abuse in the healthcare industry. The Anti-Kickback Statute generally prohibits corruptly soliciting,
offering, receiving, or paying anything of value to generate business. The False Claims Act generally prohibits anyone from knowingly
and willingly presenting, or causing to be presented, any claims for payment for goods or services, including to government payers, such
as Medicare and Medicaid, that are false or fraudulent and generally treat claims generated through kickbacks as false or fraudulent.
The federal government and states also regulate sales and marketing activities and financial interactions between manufacturers and healthcare
providers, requiring disclosure to