Company: SYRA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009279
Chunk: 42

Company: Syra Health Corp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 42
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Cost of Services

The
cost of services includes wages and related payroll taxes, employee benefits and certain other employee-related costs of the Company’s
contract service employees, while the employees work on contract assignments.

Significant Concentrations

The majority of accounts receivable and revenue contracts
are between the Company and different divisions within the Indiana Family and Social Services Administration (“FSSA”). Most
contracts require monthly payments as the projects progress. The Company generally does not require collateral or advance payments. For
the three months ended March 31, 2025 and 2024, FSSA accounted for approximately 35% and 67% of revenues, respectively, which was derived
through a combination of divisions within the State of Indiana, including the FSSA-NeuroDiagnostic Institute, representing $467,909 and
$1,108,230 of the Company’s Healthcare Workforce revenue for three months ended March 31, 2025 and 2024, respectively, and the FSSA-Division
of Mental Health and Addiction and FSSA-HSCP, representing $271,601 and $71,000 of the Company’s Population Health revenues for
the three months ended March 31, 2025 and 2024, respectively. Additionally, for the three months ended March 31, 2025, Humana, Inc accounted
for approximately 36% of the Company’s Population Health revenue. In addition, the combined divisions of the FSSA, Coordinated Care
Corporation (doing business as Managed Health Services, owed 38% of the Company’s accounts receivable, respectively, at March 31,
2025, and FSSA represented 11% of outstanding accounts receivable as of December 31, 2024. One other customer owed 32% of the Company’s
accounts receivable at March 31, 2025.

    F-8

Stock-Based Compensation

The Company accounts for equity instruments issued
to employees and non-employees in accordance with the provisions of ASC 718 Stock Compensation (“ASC 718”). All transactions
in which the consideration provided in exchange for the purchase of goods or services consists of the issuance of equity instruments are
accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more
reliably measurable.

Basic and Diluted Loss Per Share

Basic earnings per share (“EPS”) are computed
by dividing net income (the numerator) by the