Company: SYRA
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001493152-25-009873
Chunk: 725

Company: Syra Health Corp
Filing Date: 2025-03-11
Form: 10-K
Item: Item 7
Chunk 725
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 an amount that reflects the consideration to which the entity expects to be entitled to
receive in exchange for those goods or services. To achieve this core principle, five basic criteria must be met before revenue can be
recognized: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction
price; (4) allocate the transaction price to performance obligations in the contract; and (5) recognize revenue when or as we satisfy
a performance obligation.

We
account for revenues when both parties to the contract have approved the contract, the rights and obligations of the parties are identified,
payment terms are identified, and collectability of consideration is probable. Payment terms vary by client and the services offered.

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We
have the following main forms of revenue:

–Healthcare
                                            Workforce Services

–Behavioral
                                            and Mental Health Services

–Digital
                                            Health Services

–Population
                                            Health Management

–Health
                                            Education

We
primarily provide our Healthcare Workforce and Behavioral and Mental Health services to state and local government health agencies, payers,
and other private health organization. Healthcare Workforce and Behavioral Mental Health Service contracts are accounted for as a single
performance obligation satisfied over time because the customer simultaneously receives and consumes the benefits of our medical staffing
on an hourly or daily basis. Population Health Management, Health Education, and Digital Health Services contracts generally consist
of a single performance obligation to provide data analytics and reporting, training, or develop technology for implementation and maintenance
with the customer, with revenue recognized at a point in time when the customer obtains the benefit of the services are provided and
through maintenance for the life of the contract.

The
contracts generally stipulate bi-weekly or monthly billing, and we have elected the “as invoiced” practical expedient to
recognize revenue based on the hours incurred at the contractual rate as we have the right to payment in an amount that corresponds directly
with the value of performance completed to date. We may also be subject to penalties for violations of certain ethical standards and
non-performance measures within these state contracts. We recognize revenue net of penalties.

Recent
Accounting Standards

From
time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted
by us as of the specified effective date.

In
November 2023, the Financial Accounting Standard Board (“FASB”) issued ASU 2023-07,