Company: SYRA
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-022023
Chunk: 77

Company: Syra Health Corp
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 8
Chunk 77
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 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.

We
have the following main forms of revenue:

    –
    Healthcare
    Workforce Services

    –
    Behavioral
    and Mental Health Services

    –
    Population
    Health

The
Company primarily provides its services to state health and social service agencies and universities. Healthcare Workforce, Behavioral
Mental Health Service contracts are primarily accounted for as a single performance obligation satisfied over time because the customer
simultaneously receives and consumes the benefits of our medical staffing on an hourly or daily basis. Population Health contracts generally
consist of multiple performance obligations that are distinct, such as to provide data analytics and reporting, training, or develop
technology for implementation and maintenance with the customer. The Company allocates the transaction price across the performance obligations
based on the estimated fair value of the distinct performance obligations. Depending on the performance obligation, revenue is recognized
at a point in time when the customer obtains the benefit of the services are provide, or over time in the case of digital health revenue
where the customer simultaneously receives and consumes benefits of the contract, such as ongoing performance of our technology product.

The
contracts generally stipulate bi-weekly or monthly billing, and we have elected the “ as invoiced” practical expedient to
recognize revenue based on the hours incurred at the contractual rate as we have the