Company: SYRA
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001493152-25-009873
Chunk: 319

Company: Syra Health Corp
Filing Date: 2025-03-11
Form: 10-K
Item: Item 1A
Chunk 319
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 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 various dates between
July 10, 2024 and October 7, 2024, accrue interest at 2% per annum and may be prepaid by the Company at any time without any penalties.
The holders may convert the principal amount of the notes together with accrued interest thereon at any time prior to the earlier of
the maturity date and the effectiveness of the registration statement relating to the Company’s initial public offering at a conversion
price of $6.00 per share. Upon the closing of the Next Equity Financing (as defined herein), the principal amount of the notes together
with accrued interest thereon shall automatically convert into such number of shares of the Company’s Class A common stock determined
by dividing (x) the outstanding principal balance and unpaid accrued interest of the notes on the date of conversion by (y) the price
per share equal to the product of the price per Equity Security (as defined in the notes) sold in the Next Equity Financing multiplied
by 80%. “Next Equity Financing” means an initial public offering by the Company