Company: SYRA
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001493152-25-009873
Chunk: 255

Company: Syra Health Corp
Filing Date: 2025-03-11
Form: 10-K
Item: Item 1A
Chunk 255
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 associated
with these efforts.

An
economic downturn or volatility could have a material adverse impact on our business, results of operations or financial condition.

The
United States and world economies have experienced significant economic uncertainty and volatility during recent years. A weakening of
economic conditions could lead to reductions in demand for our solutions. As a result of volatile or uncertain economic conditions, we
may experience the negative effects of increased financial pressures on our customers. For instance, our business could be negatively
impacted by increased competitive pricing pressure and a decline in our customers’ creditworthiness, which could result in us incurring
increased bad debt expense. Additionally, volatile, or uncertain economic conditions in the United States and other parts of world could
lead our state and government customers to terminate, or elect not to renew, existing contracts with us, or not enter into new contracts
with us. Furthermore, demand for staffing services is sensitive to changes in economic activity. Many healthcare facilities utilize temporary
healthcare professionals to accommodate an increase in hospital admissions. Conversely, when hospital admissions decrease in economic
downturns or periods of high inflation, due to reduced consumer spending, the demand for staffing healthcare professionals typically
declines. In times of economic downturn and inflation, permanent full-time and part-time healthcare facility staff are generally inclined
to work more hours and overtime, resulting in fewer available vacancies and less demand for our services. If we are not able to timely
and appropriately adapt to changes resulting from a weak economic environment, it could have a material adverse impact on our business,
results of operations or financial condition.

Our
ability to generate revenue could suffer if we do not continue to update and improve our existing solutions and develop new ones.

We
must continually improve our existing solutions in a timely manner and introduce new and valuable solutions in order to respond to regulatory
developments and customer demands and, thereby, retain existing customers and attract new ones. For example, from time to time, government
agencies may alter format and data code requirements applicable to electronic transactions. In addition, our customers may request that
our solutions be customized to satisfy particular needs. We may not be successful in responding to regulatory developments or changing
customer needs. In addition, these regulatory or customer-imposed requirements may impact the profitability of particular solutions and
customer engagements. If we do not respond successfully to regulatory changes, as well as evolving industry standards and customer demands,
our solutions may become obsolete. If we lower our prices on some of our solutions, we will need to increase