Company: SYRA
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001493152-25-009873
Chunk: 178

Company: Syra Health Corp
Filing Date: 2025-03-11
Form: 10-K
Item: Item 1
Chunk 178
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 competitive compensation packages may be higher than we
anticipate, or we may be unable to pass these costs on to our hospital and healthcare facility clients, which may reduce our profitability.
Moreover, if we are unable to recruit temporary and permanent healthcare professionals, our service execution may deteriorate and, as
a result, we could lose clients or not meet our service level agreements with these clients that have negative financial repercussions.

The
ability of our clients to increase the efficiency and effectiveness of their staffing management and recruiting efforts may affect the
demand for our services that could negatively affect our business.

If
our clients are able to increase the effectiveness of their staffing and recruitment functions, their need for our services may decline.
With the advent of technology and more sophisticated staffing management and recruitment processes, including internal “travel”
and other healthcare staffing models, clients may be able to successfully increase the efficiency and effectiveness of their internal
staffing management and recruiting efforts, through more effective planning and analytic tools, internet- or social media-based recruiting
or otherwise. Such new technologies and processes could reduce the demand for our services, which could negatively affect our business.

Our
work with government clients exposes us to additional risks inherent in the government contracting environment.

Our
clients may include national, provincial, state, local and foreign governmental entities and their agencies. Our government work carries
various risks inherent in contracting with government entities. These risks include, but are not limited to, the following:

    ●
    Government
    entities, particularly in the United States, often reserve the right to audit our contracts and conduct reviews, inquiries and investigations
    of our business practices and performance with respect to government contracts. If a government client discovers improper conduct
    during its audits or investigations, we may become subject to various civil and criminal penalties, including those under the civil
    U.S. False Claims Act, and administrative sanctions, which may include termination of contracts, suspension of payments, fines and
    civil money penalties, and suspensions or debarment from doing business with other government agencies.

    ●
    U.S.
    government contracting regulations impose strict compliance and disclosure obligations and our failure to comply with these obligations
    could be a basis for suspension or debarment, or both, from federal government contracting in addition to breach of the specific
    contract.

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    ●
    Government
    contracts are subject to heightened reputational and contractual risks compared to contracts with commercial clients and often involve
    more extensive scrutiny and publicity. Negative publicity