Company: SYRA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009279
Chunk: 12

Company: Syra Health Corp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 12
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 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 weighted average number of common shares outstanding for the period (the denominator). Weighted
average shares for basic EPS are calculated based on weighted average Class B shares outstanding. Diluted EPS is computed by dividing
net income by the weighted average number of common shares and potential common shares outstanding (if dilutive) during each period. Potential
common shares include stock options, warrants, conversion of Class B shares and restricted stock. The number of potential common shares
outstanding relating to stock options, warrants, conversion of Class B shares and restricted stock is computed using the treasury stock
method. For the periods presented, potential dilutive securities had an anti-dilutive effect and were not included in the calculation
of diluted net loss per common share.

Income Taxes

The Company accounts for income taxes under the Financial
Accounting Standards Board (“FASB”) ASC 740 Income Taxes (“ASC 740”), which requires use of the liability method.
FASB ASC 740-10-25 provides that deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences
between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets
and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences
are expected to be recovered or settled. A valuation allowance is provided for significant deferred tax assets when it is more likely
than not, that such asset will not be recovered through future operations.

Uncertain Tax Positions

In accordance with ASC 740, the Company recognizes
the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be capable of withstanding
examination by the taxing authorities based on the technical merits of the position. These standards prescribe a recognition threshold
and