Company: SYRA
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001493152-25-009873
Chunk: 566

Company: Syra Health Corp
Filing Date: 2025-03-11
Form: 10-K
Item: Item 4
Chunk 566
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 make estimates and assumptions that affect
the reported amounts of assets, liabilities, revenue, expenses, and related disclosures. We evaluate our estimates and assumptions on
an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under
the circumstances. Our actual results could differ from these estimates.

The
critical accounting estimates, assumptions and judgments that we believe have the most significant impact on our financial statements
are described below.

Leases

We
account for our leases under ASC 842 - Leases. We determine if an arrangement is a lease at inception. Operating leases are included
in operating lease right-of-use (“ROU”) assets, current portion of obligations under operating leases, and obligations under
operating leases, non-current on our balance sheets.

Operating
lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over
the lease term at commencement date, adjusted by the deferred rent liabilities at the adoption date. As our lease does not provide an
implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present
value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial
direct costs incurred. Our terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise
that option. Operating lease expense is recognized on a straight-line basis over the lease term.

Revenue
Recognition

We
recognize revenue in accordance with ASC 606, the core principle of which is that an entity should recognize revenue to depict the transfer
of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to
receive in exchange for those goods or services. To achieve this core principle, five basic criteria must be met before revenue can be
recognized: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction
price; (4) allocate the transaction price to performance obligations in the contract; and (5) recognize revenue when or as we satisfy
a performance obligation.

We
account for revenues when both parties to the contract have approved the contract, the rights and obligations of the parties are identified,
payment terms are identified, and collectability of consideration is probable. Payment terms vary by client and the services offered.

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We
have the following main forms of revenue:

–Healthcare