Company: SYRA
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001493152-25-009873
Chunk: 264

Company: Syra Health Corp
Filing Date: 2025-03-11
Form: 10-K
Item: Item 1A
Chunk 264
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 reduce the demand for our services, which could negatively affect our business.

Our
work with government clients exposes us to additional risks inherent in the government contracting environment.

Our
clients may include national, provincial, state, local and foreign governmental entities and their agencies. Our government work carries
various risks inherent in contracting with government entities. These risks include, but are not limited to, the following:

    ●
    Government
    entities, particularly in the United States, often reserve the right to audit our contracts and conduct reviews, inquiries and investigations
    of our business practices and performance with respect to government contracts. If a government client discovers improper conduct
    during its audits or investigations, we may become subject to various civil and criminal penalties, including those under the civil
    U.S. False Claims Act, and administrative sanctions, which may include termination of contracts, suspension of payments, fines and
    civil money penalties, and suspensions or debarment from doing business with other government agencies.

    ●
    U.S.
    government contracting regulations impose strict compliance and disclosure obligations and our failure to comply with these obligations
    could be a basis for suspension or debarment, or both, from federal government contracting in addition to breach of the specific
    contract.

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    ●
    Government
    contracts are subject to heightened reputational and contractual risks compared to contracts with commercial clients and often involve
    more extensive scrutiny and publicity. Negative publicity, including allegations of improper or illegal activity, poor contract performance,
    or information security breaches, regardless of accuracy, may adversely affect our reputation.

    ●
    Terms
    and conditions of government contracts also tend to be more onerous, are often more difficult to negotiate and involve additional
    costs.

    ●
    Government
    entities typically fund projects through appropriated monies. Any change in presidential administrations may affect budget priorities
    for our ongoing work.

    ●
    Government
    entities reserve the right to change the scope of or terminate projects at their convenience for lack of approved funding or other
    reasons, which could limit our recovery of reimbursable expenses or investments. In addition, government contracts may be protested,
    which could result in administrative procedures and litigation, result in delays in performance and payment, be expensive to defend
    and be incapable of prompt resolution.

The
occurrences or conditions described above could affect not only our business with the particular government entities involved, but also
our business with other entities of the same or other