Company: SYRA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009279
Chunk: 60

Company: Syra Health Corp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 60
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 assumptions that we believe to be reasonable under the circumstances. Our actual
results could differ from these estimates.

The critical accounting estimates, assumptions and
judgments that we believe have the most significant impact on our financial statements are described below.

Accounts Receivable

Accounts receivable is carried at their estimated
collectible amounts. Accounts receivable is periodically evaluated for collectability based on past credit history with customers and
their current financial condition. We had an allowance of $5,520 at March 31, 2025 and December 31, 2024, respectively.

Impairment of Long-Lived Assets

In accordance with the provisions of Accounting Standards
Codification (“ASC”) Topic 360, “Impairment or Disposal of Long-Lived Assets,” all long-lived assets such
as property and equipment held and used by us are reviewed for impairment whenever events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying
amount of an asset to its estimated future undiscounted cash flows expected to be generated by the asset. If such assets are considered
to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair
value of the assets.

Leases

We account for our leases under ASC 842 - Leases.
We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”)
assets, current portion of obligations under operating leases, and obligations under operating leases, non-current on our balance sheets.

Operating lease ROU assets and operating lease liabilities
are recognized based on the present value of the future minimum lease payments over the lease term at commencement date, adjusted by the
deferred rent liabilities at the adoption date. As our lease does not provide an implicit rate, we use our incremental borrowing rate
based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset
also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our terms may include options to
extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease expense is recognized on
a straight-line basis over the lease term.

Revenue Recognition

We recognize revenue in accordance with ASC 606, the
core principle of which is that an entity should recognize revenue to depict the transfer of promised goods or