Company: SYRA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009279
Chunk: 40

Company: Syra Health Corp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 40
---
 activities from which it may earn revenues and expenses, and about which separate financial information is regularly evaluated
by the chief operating decision maker in deciding how to allocate resources. In November 2023, the FASB issued ASU No. 2023-07, “Segment
Reporting (Topic 280): Improvements to Reportable Segment Disclosure.” The ASU updates reportable segment disclosure requirements,
primarily through requiring enhanced disclosures about significant segment expenses and information used to assess segment performance.
The amendments do not change how segments are determined, aggregated, or how thresholds are applied to determine reportable segments.
The Company adopted ASU No. 2023-07 during the year ended December 31, 2024.

Segment information is prepared
on the same basis that our CEO, who is our Chief Operating Decision Maker (“CODM”), manages our segments, evaluates financial
results, and makes key operating decisions. We have one reportable operating segment, Healthcare services. The reportable segment derives
its revenue from a variety of services primarily to state and federal health authorities. Our CODM uses net income to evaluate and make
key operating decisions. The Company operates as a single segment and will evaluate additional segment disclosure requirements as it expands
its operations.

Revenue Recognition

The Company recognizes 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 services to customers in 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 the Company satisfies a performance
obligation.

The Company accounts 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.

    F-7

The Company has the following
main forms of revenue:

    –
    Healthcare Workforce

    –
    Population Health

    –
    Behavioral and Mental Health Services

The Company primarily provides its services to state
health and social service agencies and universities. Healthcare Work