Company: SYRA
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001493152-25-009873
Chunk: 233

Company: Syra Health Corp
Filing Date: 2025-03-11
Form: 10-K
Item: Item 1
Chunk 233
---
 on the Revolving Line of Credit such that it will now
terminate on October 24, 2023; however, no further advances are available under the Revolving Line of Credit. In the event of a default,
all commitments and obligations pursuant to the Revolving Line of Credit will terminate immediately and, at Citizens State Bank of New
Castle’s request, all Indebtedness (as defined in the loan agreement) shall become immediately due and payable. Advances on the
Revolving Line of Credit are pursuant to a promissory note dated February 7, 2022 which accrues interest at a variable rate of 1.5% above
the national prime interest rate as quoted in the Wall Street Journal, not to be less than 4.75% per annum or more than 21% per annum
or the maximum rate allowed by law. Interest shall increase by an 2.0% in the event of a default. Pursuant to the promissory note, the
Company has been required to pay monthly payments of unpaid interest since March 7, 2022. The Company may prepay all or a portion of
the amount due prior to the date upon which it is due without any penalty. In connection with the Revolving Line of Credit, the Company
entered into a commercial security agreement with Citizens State Bank of New Castle dated February 7, 2022, pursuant to which it granted
Citizens State Bank of New Castle a security interest in the Collateral (as defined in the commercial security agreement) to secure the
Indebtedness (as defined in the commercial security agreement).

During
the year ended December 31, 2023, the Company received proceeds of $300,000 and repaid total advances of $1,050,551. In addition, the
Company paid an underwriting fee of $14,076 on February 7, 2022, which was amortized over the original life of the line of credit using
the straight-line method, which approximated the effective interest method. The balance of the line of credit was $0 at December 31,
2023, and was closed during the year ended December 31, 2023.

Convertible
Notes payable

On
various dates from January through April 7, 2023, the Company entered into subscription agreements with accredited investors pursuant
to which it issued convertible promissory notes in the aggregate principal amount of $1,455,000. The notes mature on