Company: SYRA
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-022023
Chunk: 60

Company: Syra Health Corp
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 8
Chunk 60
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 during the nine months ended September
30, 2025. The Company made principal repayments of $225,773 and incurred interest expense of $9,436 during the year ended December 31,
2024. As of September 30, 2025 and December 31, 2024, the remaining balance was $0 and $152,887, respectively.

In
2025, the Company entered into two insurance policy financing arrangements to purchase various insurance policies. The total principal
of this arrangement was $311,118 with interest rates of 10.30% and 9.70% and monthly payments of $9,985 and 15,612 due through July 2026.
The Company made principal repayments of $122,219 and incurred interest expense of $3,296 during the nine months ended September 30,
2025. As of September 30, 2025, the remaining balance was $188,899.

The
Company recognized interest expense on notes payable of $8,992 and $10,072 for the nine months ended September 30, 2025 and 2024, respectively.
The Company recognized interest expense on notes payable of $1,905 and $2,265 for the three months ended September 30, 2025 and 2024,
respectively.

Note
10 – Commitments and Contingencies

Legal
Contingencies

From
time to time, the Company may be involved in various disputes and litigation matters that arise in the ordinary course of business. The
Company is currently not a party to any material legal proceedings.

In
January 2024, a former employee filed a wrongful termination lawsuit against the Company in the U.S. District Court, Southern District
of Indiana. In January 2025, the Company entered into a settlement agreement with the former employee for an immaterial amount and the
case is dismissed.

Commitments

On
July 1, 2025, the Company entered into a consulting agreement with a former member of the Board of Directors for services related to
developing a new strategic plan for the Company and identifying and hiring a new CEO. The agreement is in effect through September 30,
2025, and allows for a monthly cash fee of $5,000 per month, and awarded 25,000 Class A common stock options and 25,000 restricted stock
units (“RSU’s”) of the Company’s Class A common stock to the consultant. Both the options and RSU’s fully