Company: SYRA
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001493152-25-009873
Chunk: 61

Company: Syra Health Corp
Filing Date: 2025-03-11
Form: 10-K
Item: Item 8
Chunk 61
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 prior to the earlier of
the maturity date and the effectiveness of the registration statement relating to the Company’s initial public offering at a conversion
price of $6.00 per share. Upon the closing of the Next Equity Financing (as defined herein), the principal amount of the notes together
with accrued interest thereon shall automatically convert into such number of shares of the Company’s Class A common stock determined
by dividing (x) the outstanding principal balance and unpaid accrued interest of the notes on the date of conversion by (y) the price
per share equal to the product of the price per Equity Security (as defined in the notes) sold in the Next Equity Financing multiplied
by 80%. “Next Equity Financing” means an initial public offering by the Company of its Equity Securities pursuant to which
such Equity Securities are listed on a national securities exchange. In addition, if prior to the maturity date of the notes, the notes
remains outstanding, then in the event of a Corporate Transaction (as defined in the notes), the holder of each note may elect to convert
the outstanding principal balance and unpaid accrued interest of each note, subject to the terms and conditions contained in the note,
into Conversion Shares (as defined in the notes) immediately prior to the closing of such Corporate Transaction based upon a conversion
price equal to the lesser of (i) the Corporate Transaction Price (as defined in the notes) or (ii) the quotient resulting from dividing
(x) the Valuation Cap (as defined in the notes) by (y) the fully diluted capitalization immediately prior to the closing of the Corporate
Transactions.

    F-15

On
October 3, 2023, a total of $1,472,460, consisting of $1,455,000 of principal and $17,460 of interest, was converted into an aggregate
446,206 shares of Class A common stock in accordance with the terms of the convertible promissory notes.

Insurance
Notes Payable

In
2023, the Company entered into three insurance policy financing arrangements to purchase various insurance policies. The total principal
of these arrangements was $370,596 with interest rates ranging from 10.38% through 14.05% and monthly payments totaling $32,328 are due
through July 2024. The Company made principal repayments of $184,904 and incurred interest expense of $6,265 during the year ended December
31, 2024. As of December 31, 2024 and December