Company: SYRA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009279
Chunk: 61

Company: Syra Health Corp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 61
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 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.

7

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 right to payment in an amount that corresponds directly with the value of performance
completed to date. We may also be subject to penalties for violations of certain ethical standards and non-performance measures within
these state contracts. We recognize revenue net of penalties.

Significant Concentrations

The majority of accounts receivable and revenue contracts
are between the Company and different divisions within the Indiana Family and Social Services Administration (“FSSA”). Most
contracts require monthly