Company: SYRA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009279
Chunk: 30

Company: Syra Health Corp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 30
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 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) 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