Company: SYRA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009279
Chunk: 39

Company: Syra Health Corp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 39
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-line method based on a five5-year
life expectancy.

Repairs and maintenance expenditures are charged to
operations as incurred. Major improvements and replacements, which extend the useful life of an asset, are capitalized and depreciated
over the remaining estimated useful life of the asset. When assets are retired or sold, the cost and related accumulated depreciation
are eliminated and any resulting gain or loss is reflected in operations.

Impairment of Long-Lived Assets

In accordance with the provisions of ASC Topic 360,
“Impairment or Disposal of Long-Lived Assets”, all long-lived assets such as property and equipment held and used by
the Company 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.

    F-6

Leases

The Company accounts for its leases under ASC 842
- Leases. The Company determines 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 the Company’s 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 the Company’s lease does not provide an implicit rate, the Company uses its 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. The Company’s
terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Operating
lease expense is recognized on a straight-line basis over the lease term.

Segment Reporting

ASC Topic 280, “Segment
Reporting,” requires annual and interim reporting for an enterprise’s operating segments and related disclosures about
its products, services, geographic areas and major customers. An operating segment is defined as a component of an enterprise that engages
in business