Company: SYRA
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023235
Chunk: 36

Company: Syra Health Corp
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 1
Chunk 36
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 periodically evaluated for collectability based
on past credit history with customers and their current financial condition. We had an allowance of $5,520 at June 30, 2025 and December
31, 2024, respectively.

Impairment
of Long-Lived Assets

In
accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 360, “Impairment or Disposal of
Long-Lived Assets,” all long-lived assets such as property and equipment held and used by us are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to
be held and used is evaluated by a comparison of the carrying amount of an asset to its estimated future undiscounted cash flows expected
to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount
by which the carrying amounts of the assets exceed the fair value of the assets.

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)