Company: SYRA
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001493152-25-009873
Chunk: 185

Company: Syra Health Corp
Filing Date: 2025-03-11
Form: 10-K
Item: Item 1
Chunk 185
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 to ownership disputes in the future arising, for example, from conflicting obligations of
consultants or others who are involved in developing our solutions. We may also be subject to claims that former employees, consultants,
independent contractors or other third parties have an ownership interest in our intellectual property. Litigation may be necessary to
defend against these and other claims challenging our right to and use of confidential and proprietary information. In addition to paying
monetary damages, if we fail in defending against any such claims we may lose our rights therein, which could have a material adverse
effect on our business. Even if we are successful in defending against these claims, litigation could result in substantial cost and
be a distraction to our management and employees.

We
depend on a small number of large customers and the loss of one or more major customers could have a material adverse effect on our business,
financial condition and results of operations.

For
the years ended December 31, 2024 and 2023, FSSA accounted for approximately 61% and 68% of our revenues and 56% and 30% of our accounts
receivable, respectively, as due from the combined divisions (NeuroDiagnostic Institute and Division of Mental Health and Addiction)
of the FSSA. It is possible that any of our large customers could decide to terminate their relationship with us in the future. The loss
of one or both of our top customers, or a substantial decrease in demand by any of those customers for our services and solutions, could
have a material adverse effect on our business, results of operations and financial condition.

Risks
Related to Government Regulations

We
are subject to federal and state healthcare industry regulation including conduct of operations, costs and payment for services and payment
for referrals as well as laws regarding government contracting.

The
healthcare industry is subject to extensive and complex federal and state laws and regulations related to conduct of operations, costs
and payment for services and payment for referrals. We provide talent solutions on a contract basis to our clients, who pay us directly.
Accordingly, Medicare, Medicaid and insurance reimbursement policy changes generally do not directly impact us. Nevertheless, reimbursement
changes in government programs, particularly Medicare and Medicaid, can and do indirectly affect the demand and the prices paid for our
services. For example, our clients could receive reduced or no reimbursements because of a change in the rates or conditions set by federal
or state governments that would negatively affect the demand and the prices for our services. Moreover, our