Company: SYRA
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023235
Chunk: 57

Company: Syra Health Corp
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 8
Chunk 57
---
 As of June 30, 2025, the remaining balance was $67,713.

The
Company recognized interest expense on notes payable of $7,087 and $7,891 for the six months ended June 30, 2025 and 2024, respectively.
The Company recognized interest expense on notes payable of $3,857 and $3,814 for the three months ended June 30, 2025 and 2024, respectively.

Note
10 – Commitments and Contingencies

Legal
Contingencies

From
time to time, the Company may be involved in various disputes and litigation matters that arise in the ordinary course of business. The
Company is currently not a party to any material legal proceedings.

In
January 2024, a former employee filed a wrongful termination lawsuit against the Company in the U.S. District Court, Southern District
of Indiana. In January 2025, the Company entered into a settlement agreement with the former employee for an immaterial amount and the
case is dismissed.

Note
11 – Changes in Stockholders’ Equity (Deficit)

Class
A Common Stock

The
Company has 100,000,000 authorized shares of $0.001 par value Class A common stock, and 11,339,169 shares were issued and outstanding
as of June 30, 2025.

During
the six months ended June 30, 2025, two investors exercised 23,125 warrants to purchase Class A Common stock pursuant to which the Company
received cash proceeds of $14,800.

On
January 15, 2025, a total of 233,334 shares of Class B Common Stock previously held by the Company’s Executive Chairman and President,
Sandeep Allam, upon his passing, automatically converted into 2,333,340 shares of Class A common stock according to the terms of the
Company’s Certificate of Incorporation.

During
the six months ended June 30, 2024, two investors exercised 130,789 warrants to purchase Class A Common stock pursuant to which the Company
received cash proceeds of $850,129.

During
the six months ended June 30, 2024, the Company issued 50,000 shares pursuant to the restricted stock award from November 2023. These
shares vest quarterly over a one1-year period. The Company recognized expense of $18,875 for these awards and expects to recognize an
additional $48,503 through the end of the