Company Performance Summary - aTyr Pharma, Inc. (ATYR) experienced a drastic stock price decrease of approximately 82.67%, falling to $1.04 from a year high of $7.29, with a trading volume surge to 125,060,529 [2][8] - Kindly MD, Inc. (NAKA) saw its stock price decline by 53.24% to $1.3 from a previous year high of $34.77, with a trading volume of 84,912,612 following the approval for options trading on the Nasdaq Options Market [3][8] - Syra Health Corp. Class A Common Stock (SYRA) reported a 40% decrease in stock price to $0.057 from a year high of $0.94, despite a 197% growth in its Population Health segment and an improvement in earnings per share [4][8] - Wearable Devices Ltd. (WLDSW) faced a stock price drop of 39.57% to $2.84, with a trading volume of 12,217, reflecting market concerns over its commercialization capabilities [5] - Longevity Health Holdings Inc. (XAGE) witnessed a 42.24% decline in stock price to $1.34, although a significant surge in stock price occurred after announcing a merger agreement with True Health Inc. [6] Market Dynamics - The significant price movements of these companies reflect a combination of company-specific developments, broader market trends, and investor sentiment [7] - Factors influencing stock prices include clinical trial outcomes, financial reports, regulatory news, and overall market dynamics [7]

PART I. FINANCIAL INFORMATION This section details Syra Health Corp.'s unaudited financial statements and management's analysis of its financial condition and operations [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents Syra Health Corp.'s unaudited condensed financial statements and accompanying notes, highlighting key financial changes [Condensed Balance Sheets](index=5&type=section&id=Condensed%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20(Unaudited)%20and%20December%2031%2C%202024) This section presents the unaudited condensed balance sheets for Syra Health Corp. as of June 30, 2025, and December 31, 2024 Condensed Balance Sheet Highlights | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total assets | $3,471,462 | $3,679,332 | $(207,870) | -5.6% | | Total current liabilities | $1,057,299 | $613,549 | $443,750 | 72.3% | | Total liabilities | $1,057,299 | $800,761 | $256,538 | 32.0% | | Total stockholders' equity (deficit) | $2,414,163 | $2,878,571 | $(464,408) | -16.1% | [Condensed Statements of Operations](index=6&type=section&id=Condensed%20Statements%20of%20Operations%20for%20the%20Three%20and%20Six%20Months%20ended%20June%2030%2C%202025%20and%202024%20(Unaudited)) This section details the unaudited condensed statements of operations for the three and six months ended June 30, 2025 and 2024 Statements of Operations Highlights (Three Months Ended June 30) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net revenues | $1,946,199 | $1,969,681 | $(23,482) | -1.2% | | Gross profit | $752,895 | $350,007 | $402,888 | 115.1% | | Operating loss | $(63,158) | $(1,390,353) | $1,327,195 | -95.5% | | Net loss | $(63,596) | $(1,390,256) | $1,326,660 | -95.4% | | Net loss per common share - basic and diluted | $(0.01) | $(0.21) | $0.20 | -95.2% | Statements of Operations Highlights (Six Months Ended June 30) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net revenues | $3,803,973 | $3,722,021 | $81,952 | 2.2% | | Gross profit | $1,342,051 | $529,294 | $812,757 | 153.5% | | Operating loss | $(536,492) | $(2,834,307) | $2,297,815 | -81.1% | | Net loss | $(535,861) | $(2,837,306) | $2,301,445 | -81.1% | | Net loss per common share - basic and diluted | $(0.05) | $(0.43) | $0.38 | -88.4% | [Statements of Changes in Stockholders' Equity (Deficit)](index=7&type=section&id=Statements%20of%20Changes%20in%20Stockholders%27%20Equity%20(Deficit)%20for%20the%20Three%20and%20Six%20Months%20ended%20June%2030%2C%202025%20and%202024%20(Unaudited)) This section outlines the unaudited changes in stockholders' equity (deficit) for the three and six months ended June 30, 2025 and 2024 Changes in Stockholders' Equity (Deficit) (Six Months Ended June 30, 2025) | Item | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Class A Common Stock Shares | 8,979,204 | 11,339,169 | | Convertible Class B Common Stock Shares | 833,334 | 600,000 | | Additional Paid-in Capital | $11,692,952 | $11,762,278 | | Accumulated Deficit | $(8,824,193) | $(9,360,054) | | Total Stockholders' Equity (Deficit) | $2,878,571 | $2,414,163 | - During the six months ended June 30, 2025, **23,125 warrants were exercised for cash**, generating **$14,800**[18](index=18&type=chunk) - **233,334 shares of Class B Common Stock were converted into 2,333,340 shares of Class A common stock**[18](index=18&type=chunk) [Condensed Statements of Cash Flows](index=9&type=section&id=Condensed%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20Months%20ended%20June%2030%2C%202025%20and%202024%20(Unaudited)) This section presents the unaudited condensed statements of cash flows for the six months ended June 30, 2025 and 2024 Cash Flow Activities (Six Months Ended June 30) | Activity | 2025 | 2024 | Change ($) | | :--- | :--- | :--- | :--- | | Net cash provided by/(used in) operating activities | $85,754 | $(2,304,012) | $2,389,766 | | Net cash used in investing activities | $0 | $(11,111) | $11,111 | | Net cash provided by/(used in) financing activities | $(175,235) | $629,400 | $(804,635) | | Net change in cash and cash equivalents | $(89,481) | $(1,685,723) | $1,596,242 | | Cash and cash equivalents at end of period | $2,305,924 | $1,594,352 | $711,572 | - Operating activities shifted from a significant cash outflow in 2024 to a cash inflow in 2025, indicating improved operational efficiency[22](index=22&type=chunk) - Financing activities resulted in cash used in 2025, primarily due to lower proceeds from warrant exercises compared to 2024[22](index=22&type=chunk) [Notes to the Condensed Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Financial%20Statements%20(Unaudited)) This section provides explanatory notes to the unaudited condensed financial statements, detailing accounting policies and significant events [Note 1 – Nature of Business and Significant Accounting Policies](index=10&type=section&id=Note%201%20%E2%80%93%20Nature%20of%20Business%20and%20Significant%20Accounting%20Policies) This note describes Syra Health Corp.'s business operations, its single reportable segment, and key accounting policies - Syra Health Corp. provides workforce staffing solutions, health education, and healthcare research consulting services to mental health hospitals and organizations[24](index=24&type=chunk) - The interim financial statements are unaudited and prepared in accordance with U.S. GAAP, with certain disclosures omitted per SEC rules[25](index=25&type=chunk) - The Company operates as a single reportable operating segment: Healthcare services, deriving revenue primarily from state and federal health authorities[39](index=39&type=chunk) Disaggregated Net Revenues (Six Months Ended June 30) | Revenue Stream | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Healthcare workforce | $1,017,664 | $2,833,895 | $(1,816,231) | -64.1% | | Population health | $2,786,309 | $866,031 | $1,920,278 | 221.7% | | Behavioral and mental services | $0 | $22,095 | $(22,095) | -100.0% | | **Total Net Revenues** | **$3,803,973** | **$3,722,021** | **$81,952** | **2.2%** | - FSSA accounted for approximately **35% of revenues** for the six months ended June 30, 2025, down from 64% in 2024[47](index=47&type=chunk) [Note 2 – Going Concern](index=14&type=section&id=Note%202%20%E2%80%93%20Going%20Concern) This note addresses the Company's ability to continue as a going concern, citing cash balance and accumulated deficit - As of June 30, 2025, the Company had a cash balance of **$2,305,924** and an accumulated deficit of **$9,360,054**[56](index=56&type=chunk) - These factors raise substantial doubt about the Company's ability to continue as a going concern for the next twelve months, necessitating additional capital or expense reduction[56](index=56&type=chunk) - The Company previously raised **$1,455,000 from convertible notes in 2023**, **$5,332,283 net proceeds from its IPO in October 2023**, and **$1,619,021 from a public offering in September 2024**[57](index=57&type=chunk)[58](index=58&type=chunk) [Note 3 – Related Party Transactions](index=15&type=section&id=Note%203%20%E2%80%93%20Related%20Party%20Transactions) This note details transactions with related parties, including lease and service agreements - The Company leases its corporate headquarters from STVentures, LLC, an entity beneficially owned by principal owners and management[60](index=60&type=chunk) Related Party Expenses (Six Months Ended June 30) | Expense Category | 2025 | 2024 | | :--- | :--- | :--- | | Office Lease (STVentures, LLC) | $67,253 | $64,263 | | IT Services (RAD CUBE LLC) | $251,340 | $0 | | Recruitment/HR Services (NLogix IT Services, SKL Demand) | $212,352 | $297,313 | [Note 4 – Basic and Diluted Earnings per Share](index=15&type=section&id=Note%204%20%E2%80%93%20Basic%20and%20Diluted%20Earnings%20per%20Share) This note explains the calculation of basic and diluted net loss per common share, including anti-dilutive securities - The Company uses the two-class method to compute net loss per common share due to Class A and convertible Class B common stock[64](index=64&type=chunk) - Potential dilutive securities (warrants and stock options) were anti-dilutive and excluded from diluted net loss per common share calculation[66](index=66&type=chunk) Anti-Dilutive Securities Excluded from EPS Calculation | Security Type | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Warrants | 8,172,842 | 1,629,561 | | Stock options | 271,245 | 160,750 | | **Total** | **8,444,087** | **1,790,311** | [Note 5 – Other Current Assets](index=16&type=section&id=Note%205%20%E2%80%93%20Other%20Current%20Assets) This note provides a breakdown of other current assets, primarily prepaid expenses Other Current Assets | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepaid expenses and other current assets | $242,444 | $276,563 | | **Total other current assets** | **$242,444** | **$276,563** | [Note 6 – Property and Equipment](index=16&type=section&id=Note%206%20%E2%80%93%20Property%20and%20Equipment) This note details the Company's property and equipment, net of accumulated depreciation Property and Equipment, Net | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Office equipment | $86,958 | $86,958 | | Leasehold improvements | $60,783 | $60,783 | | Furniture and fixtures | $6,170 | $6,170 | | Less: Accumulated depreciation | $(139,339) | $(126,564) | | **Total property and equipment, net** | **$14,572** | **$27,347** | - Depreciation expense for the six months ended June 30, 2025, was **$12,775**, a **57.3% decrease** from $29,919 in 2024[68](index=68&type=chunk) [Note 7 – Accrued Expenses](index=16&type=section&id=Note%207%20%E2%80%93%20Accrued%20Expenses) This note outlines the components of accrued expenses, including payroll and taxes Accrued Expenses | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Accrued payroll and taxes | $88,733 | $202,038 | | Accrued expenses | $36,020 | $28,345 | | **Total accrued expenses** | **$124,753** | **$230,383** | - IRA contribution expenses for the six months ended June 30, 2025, were **$35,665**, a decrease from $52,676 in 2024[70](index=70&type=chunk) [Note 8 – Lease](index=17&type=section&id=Note%208%20%E2%80%93%20Lease) This note describes the Company's operating lease for its corporate headquarters, including terms and costs - The Company leases its corporate headquarters from STVentures, a related party, with the lease amended in July 2025 to extend through June 30, 2027[71](index=71&type=chunk) Operating Lease Information | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Operating lease assets | $22,161 | $299,190 | | Total operating lease liability | $22,161 | $299,190 | | Weighted average remaining lease term | 0.50 years | 2.50 years | | Weighted average discount rate | 9.25% | 9.25% | Operating Lease Cost (Six Months Ended June 30) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Amortization of ROU asset | $64,477 | $63,199 | | Interest on lease liability | $2,776 | $1,064 | | **Total operating lease cost** | **$67,253** | **$64,263** | [Note 9 – Notes Payable](index=18&type=section&id=Note%209%20%E2%80%93%20Notes%20Payable) This note details the Company's notes payable, primarily related to insurance policy financing - The remaining balance on 2024 insurance notes payable was **$19,005** as of June 30, 2025[73](index=73&type=chunk) - A new insurance policy financing arrangement in 2025 had a total principal of **$123,866**, with a remaining balance of **$67,713** as of June 30, 2025[74](index=74&type=chunk) Interest Expense on Notes Payable (Six Months Ended June 30) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest expense on notes payable | $7,087 | $7,891 | [Note 10 – Commitments and Contingencies](index=18&type=section&id=Note%2010%20%E2%80%93%20Commitments%20and%20Contingencies) This note addresses the Company's legal proceedings and other commitments, including a settled lawsuit - The Company is not currently a party to any material legal proceedings[76](index=76&type=chunk) - A wrongful termination lawsuit filed in January 2024 was settled for an immaterial amount in January 2025[77](index=77&type=chunk) [Note 11 – Changes in Stockholders' Equity (Deficit)](index=18&type=section&id=Note%2011%20%E2%80%93%20Changes%20in%20Stockholders%27%20Equity%20(Deficit)) This note details changes in stockholders' equity, including common stock activity, warrants, and corporate events - As of June 30, 2025, there were **11,339,169 shares of Class A common stock** issued and outstanding[78](index=78&type=chunk) - On January 15, 2025, **233,334 shares of Class B Common Stock converted into 2,333,340 shares of Class A common stock**[79](index=79&type=chunk)[86](index=86&type=chunk) - The Company voluntarily delisted its Class A common stock from the Nasdaq Capital Market on April 11, 2025[82](index=82&type=chunk) - The CEO's employment was terminated on June 13, 2025, and Priya Prasad was appointed interim CEO on June 16, 2025[82](index=82&type=chunk)[83](index=83&type=chunk) Class A Common Stock Warrants Activity | Item | Number of Shares | Weighted Average Exercise Prices | | :--- | :--- | :--- | | Balance, December 31, 2024 | 8,195,967 | $1.78 | | Warrants exercised | (23,125) | $0.64 | | **Balance, June 30, 2025** | **8,172,842** | **$1.79** | - As of June 30, 2025, there were **600,000 shares of convertible Class B common stock** issued and outstanding[85](index=85&type=chunk) [Note 12 – Common Stock Options](index=19&type=section&id=Note%2012%20%E2%80%93%20Common%20Stock%20Options) This note describes the Company's common stock option plan and related activity, including stock-based compensation - The 2022 Omnibus Equity Incentive Plan authorizes the issuance of up to **1,041,667 shares of Class A common stock**[87](index=87&type=chunk) Stock Options Activity | Item | Number of Shares | Weighted Average Exercise Prices | | :--- | :--- | :--- | | Balance, December 31, 2024 | 223,599 | $1.32 | | Options granted | 57,646 | $0.74 | | Options forfeited | (10,000) | $1.28 | | **Balance, June 30, 2025** | **271,245** | **$1.04** | - Stock-based compensation expense for the six months ended June 30, 2025, was **$30,254**, compared to $28,486 in 2024[88](index=88&type=chunk) [Note 13 – Subsequent Events](index=20&type=section&id=Note%2013%20%E2%80%93%20Subsequent%20Events) This note discloses significant events occurring after the reporting period, such as consulting agreements and resignations - On July 1, 2025, the Company entered into a consulting agreement with a former Board member for strategic planning and CEO identification, including **25,000 Class A common stock options** and **25,000 RSUs**[91](index=91&type=chunk) - On July 28, 2025, Deepika Vuppalanchi resigned from the Board of Directors[92](index=92&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Syra Health Corp.'s financial condition and operational results, emphasizing revenue shifts, improved margins, and liquidity [Overview](index=21&type=section&id=Overview) This section provides a general overview of Syra Health Corp.'s business, strategic shifts, and recent corporate changes - Syra Health Corp. is a healthcare services company focused on preventative health, holistic wellness, health education, and equitable healthcare[96](index=96&type=chunk) - The Company reclassified its digital health and health education revenues into its population health division[96](index=96&type=chunk) - The Company voluntarily delisted its Class A common stock from the Nasdaq Capital Market on April 11, 2025[98](index=98&type=chunk) - Deepika Vuppalanchi's employment as CEO was terminated on June 13, 2025, and Priya Prasad was appointed interim CEO on June 16, 2025[98](index=98&type=chunk) [Results of Operations for the Three Months Ended June 30, 2025 and 2024](index=21&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section analyzes the Company's operational performance for the three months ended June 30, 2025, compared to 2024 Net Revenues (Three Months Ended June 30) | Category | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Healthcare workforce | $362,447 | $1,416,234 | $(1,053,787) | -74.4% | | Population health | $1,583,752 | $533,025 | $1,050,727 | 197.1% | | Behavioral and mental health | $0 | $20,422 | $(20,422) | -100.0% | | **Total Net Revenues** | **$1,946,199** | **$1,969,681** | **$(23,482)** | **-1.2%** | - The decrease in healthcare workforce revenue was due to fewer new customer acquisitions and lower renewal value on the FSSA (NeuroDiagnostic Institute) contract[103](index=103&type=chunk) - Population health revenues increased due to additional services provided to state departments and other customers[103](index=103&type=chunk) Cost of Services and Gross Profit (Three Months Ended June 30) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of services | $1,193,304 | $1,619,674 | $(426,370) | -26.3% | | Gross profit | $752,895 | $350,007 | $402,888 | 115.1% | | Gross profit margin | 38.7% | 17.8% | 20.9 pp | 117.4% | - Cost of services decreased primarily due to a decrease in labor costs and a shift in service mix from healthcare workforce to project-based population health and digital health services that carry better margins[104](index=104&type=chunk) Operating Expenses (Three Months Ended June 30) | Expense Category | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Salaries and benefits | $326,354 | $847,064 | $(520,710) | -61.5% | | Professional fees | $164,939 | $141,456 | $23,483 | 16.6% | | Research and development | $29,712 | $277,894 | $(248,182) | -89.3% | | Selling, general and administrative | $289,070 | $456,572 | $(167,502) | -36.7% | | Depreciation | $5,978 | $17,374 | $(11,396) | -65.6% | | **Total Operating Expenses** | **$816,053** | **$1,740,360** | **$(924,307)** | **-53.1%** | - Net loss for the three months ended June 30, 2025, significantly decreased by **$1,326,660 (95.4%) to $(63,596)** from $(1,390,256) in the prior year[112](index=112&type=chunk) [Results of Operations for the Six Months Ended June 30, 2025 and 2024](index=24&type=section&id=Results%20of%20Operations%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section analyzes the Company's operational performance for the six months ended June 30, 2025, compared to 2024 Net Revenues (Six Months Ended June 30) | Category | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Healthcare workforce | $1,017,664 | $2,833,895 | $(1,816,231) | -64.1% | | Population health | $2,786,309 | $866,031 | $1,920,278 | 221.7% | | Behavioral and mental health | $0 | $22,095 | $(22,095) | -100.0% | | **Total Net Revenues** | **$3,803,973** | **$3,722,021** | **$81,952** | **2.2%** | - The overall revenue increase of **2%** was driven by a substantial rise in population health revenue, offsetting a decline in healthcare workforce revenue[116](index=116&type=chunk) - Delays in new contract awards or cancellations of requests for proposals are expected due to federal government spending pauses or terminations[116](index=116&type=chunk) Cost of Services and Gross Profit (Six Months Ended June 30) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Cost of services | $2,461,922 | $3,192,727 | $(730,805) | -22.9% | | Gross profit | $1,342,051 | $529,294 | $812,757 | 153.5% | | Gross profit margin | 35.3% | 14.2% | 21.1 pp | 148.6% | - Cost of services decreased due to lower labor and consulting costs, and a favorable shift in service mix towards higher-margin population health and digital health services[117](index=117&type=chunk) Operating Expenses (Six Months Ended June 30) | Expense Category | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Salaries and benefits | $833,561 | $1,583,367 | $(749,806) | -47.4% | | Professional fees | $388,965 | $336,036 | $52,929 | 15.7% | | Research and development | $66,885 | $555,442 | $(488,557) | -87.9% | | Selling, general and administrative | $576,357 | $858,837 | $(282,480) | -32.9% | | Depreciation | $12,775 | $29,919 | $(17,144) | -57.3% | | **Total Operating Expenses** | **$1,878,543** | **$3,363,601** | **$(1,485,058)** | **-44.1%** | - Net loss for the six months ended June 30, 2025, significantly decreased by **$2,301,445 (81.1%) to $(535,861)** from $(2,837,306) in the prior year[124](index=124&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the Company's liquidity position, capital resources, and ability to fund future operations - Existing liquidity sources are not expected to be sufficient to fund operations for the next twelve months, raising substantial doubt about the Company's ability to continue as a going concern[125](index=125&type=chunk) - The Company may require additional equity and/or debt financing if profitable operations are not achieved in the near term[125](index=125&type=chunk) Liquidity and Capital Resources (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Current Assets | $3,434,729 | $3,352,795 | $81,934 | 2.4% | | Current Liabilities | $1,057,299 | $613,549 | $443,750 | 72.3% | | Accumulated Deficit | $(9,360,054) | $(8,824,193) | $(535,861) | 6.1% | | Working Capital | $2,377,430 | $2,739,246 | $(361,816) | -13.2% | Cash Flow Activities (Six Months Ended June 30) | Activity | 2025 | 2024 | Change ($) | | :--- | :--- | :--- | :--- | | Net cash provided by/(used in) operating activities | $85,754 | $(2,304,012) | $2,389,766 | | Net cash used in investing activities | $0 | $(11,111) | $11,111 | | Net cash provided by/(used in) financing activities | $(175,235) | $629,400 | $(804,635) | - The improvement in operating cash activities is a result of efforts to reduce expenses and better working capital management[128](index=128&type=chunk) [Critical Accounting Policies and Estimates](index=29&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section outlines the Company's significant accounting policies and estimates that require management judgment - Accounts receivable are carried at estimated collectible amounts, with an allowance of **$5,520** at June 30, 2025, and December 31, 2024[134](index=134&type=chunk) - Long-lived assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable[135](index=135&type=chunk) - The Company accounts for leases under ASC 842, recognizing right-of-use (ROU) assets and operating lease liabilities[136](index=136&type=chunk) - Revenue is recognized in accordance with ASC 606, based on five criteria for depicting the transfer of promised goods or services to customers[138](index=138&type=chunk) - The majority of accounts receivable and revenue contracts are with divisions within the Indiana Family and Social Services Administration (FSSA), which accounted for approximately **35% of revenues** for the six months ended June 30, 2025[143](index=143&type=chunk) - As an 'emerging growth company' under the JOBS Act, the Company utilizes extended transition periods for complying with new or revised accounting standards, which may affect comparability[145](index=145&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a 'smaller reporting company,' Syra Health Corp. is not required to provide quantitative and qualitative disclosures about market risk in this report - The Company is a 'smaller reporting company' and is not required to provide quantitative and qualitative disclosures about market risk[147](index=147&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) The principal executive and financial officers of Syra Health Corp. evaluated the effectiveness of the company's disclosure controls and procedures as of June 30, 2025, concluding that they were effective. No material changes in internal control over financial reporting occurred during the quarter - The principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025[148](index=148&type=chunk) - There were no changes in internal control over financial reporting during the three months ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[149](index=149&type=chunk) PART II. OTHER INFORMATION This section addresses legal proceedings, risk factors, equity sales, and other disclosures for Syra Health Corp. [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) Syra Health Corp. is not currently involved in any legal proceedings or claims that are expected to have a material adverse effect on its business, financial condition, or operating results - The Company is not aware of any legal proceedings or claims that will have a material adverse effect on its business, financial condition, or operating results[152](index=152&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) Readers are advised to carefully consider the risk factors detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as these could significantly impact the business. The company also acknowledges the potential for additional, currently unknown or immaterial risks to emerge - Readers should carefully consider the risk factors discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[153](index=153&type=chunk) - Additional risks and uncertainties not currently known or deemed immaterial may also materially and adversely affect the business, financial condition, and/or operating results[153](index=153&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) There were no unregistered sales of equity securities, use of proceeds from such sales, or issuer purchases of equity securities to report during the period - None[155](index=155&type=chunk) [Item 3. Defaults Upon Senior Securities](index=32&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Syra Health Corp. reported no defaults upon senior securities during the period covered by this report - None[156](index=156&type=chunk) [Item 4. Mine Safety Disclosures](index=32&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Syra Health Corp.'s operations - Not applicable[157](index=157&type=chunk) [Item 5. Other Information](index=32&type=section&id=Item%205.%20Other%20Information) No other information is reported under this item for the current period - None[158](index=158&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including certifications and Inline XBRL documents for financial data tagging Exhibits Filed with Form 10-Q | Exhibit No. | Description | | :--- | :--- | | 31.1* | Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | | 31.2* | Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | | 32.1** | Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | | 32.2** | Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | | 101.INS* | Inline XBRL Instance Document | | 101.SCH* | Inline XBRL Taxonomy Extension Schema Document | | 101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | | 101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | | 101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | | 101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | | 104* | Cover Page Interactive Data File - the cover page from the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 is formatted in Inline XBRL included in the Exhibit 101 Inline XBRL Document Set | [Signatures](index=34&type=section&id=Signatures) This section contains the official signatures for the report, confirming its submission by authorized officers - The report was signed on August 12, 2025, by Priya Prasad as both Interim Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial and Accounting Officer) for Syra Health Corp[164](index=164&type=chunk)

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Syra Health reported Q2 2025 revenue consistent with the prior year, driven by significant growth in Population Health. The company achieved substantial improvements in gross margin and earnings per share, moving closer to profitability. | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------- | :---------- | :---------- | :----------- | | Revenue | $1.9 Million | Consistent | - | | Population Health Growth | +197% | - | - | | Gross Margin | 38.7% | 17.8% | +2,090 bps | | EPS | ($0.01) | ($0.21) | Significant improvement | - Cash on hand was **$2.3 million** with no long-term debt as of June 30, 2025[4](index=4&type=chunk) [2025 Financial Outlook](index=1&type=section&id=2025%20Financial%20Outlook) The company anticipates potential negative impacts on revenue, operations, and cash flows due to heavy reliance on government budgets and recent federal spending program pauses or terminations, leading to delays or cancellations in contract awards. - Heavy dependence on state, local, and county government budgets for revenue[3](index=3&type=chunk) - United States federal government began pausing or terminating numerous spending programs, potentially affecting customer funding[3](index=3&type=chunk) - Anticipated delays in new contract awards or cancellations of previous requests for proposals, potentially negatively affecting revenue, operations, and cash flows[3](index=3&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) Interim CEO Priya Prasad highlighted the company's progress towards profitability, driven by the strong performance of the Population Health business unit and disciplined execution. The company is also strategically expanding into the private sector to complement its public sector foundation. - Company is "inching closer to profitability" fueled by growth of the Population Health business unit[6](index=6&type=chunk) - Population Health delivers high-impact services including health education, training, data collection, analytics, and large-scale program implementations[6](index=6&type=chunk) - Expanding into the private sector, complementing the strong foundation with public sector customers[6](index=6&type=chunk) [Operational Highlights](index=2&type=section&id=Operational%20Highlights) [Recent Operational Achievements](index=2&type=section&id=Recent%20Operational%20Highlights) Syra Health secured significant contracts, including a $5.8 million agreement for Indiana's Child Mental Health Wraparound program and a $2.1 million contract with a major health insurer, marking a strategic entry into the private sector. The company also achieved ISO 27001:2022 certification for data security. - Engaged in contract negotiations for a **$5.8 million** agreement to serve as Indiana's Statewide Access Site for the Child Mental Health Wraparound (CMHW) program[8](index=8&type=chunk) - Awarded a contract worth up to **$2.1 million** to provide medical management nurses for a major health insurer, marking a significant step into the private sector[8](index=8&type=chunk) - Achieved **ISO 27001:2022 certification**, demonstrating commitment to data protection and information security[8](index=8&type=chunk) [Detailed Financial Review](index=2&type=section&id=Detailed%20Financial%20Review) [Revenue and Gross Margin Analysis](index=2&type=section&id=Revenue%20and%20Gross%20Margin%20Analysis) Q2 2025 revenue remained consistent year-over-year, primarily driven by the high-margin Population Health business unit's substantial growth. Gross profit margin significantly expanded due to a strategic focus on higher-margin units and key project milestones. | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :---------------- | :---------- | :---------- | :----------- | | Net Revenues | $1,946,199 | $1,969,681 | -1.2% | | Cost of Services | $1,193,304 | $1,619,674 | -26.3% | | Gross Profit | $752,895 | $350,007 | +115.1% | | Gross Profit Margin | 38.7% | 17.8% | +2,090 bps | - Revenue in Q2 2025 was driven by the high-margin Population Health business unit, which expanded **197%** year-over-year[7](index=7&type=chunk) - Gross margin increased due to strategic focus on higher-margin business units and completion of key project milestones[4](index=4&type=chunk)[9](index=9&type=chunk) [Operating Expenses Breakdown](index=3&type=section&id=Operating%20Expenses%20Breakdown) Total operating expenses for Q2 2025 significantly decreased by 53% year-over-year, primarily due to disciplined cost management, workforce optimization, and reduced R&D expenses. | Expense Category | Q2 2025 | Q2 2024 | Change (YoY) | | :----------------------------- | :---------- | :---------- | :----------- | | Total Operating Expenses | $816,053 | $1,740,360 | -53% | | Salaries and benefits | $326,354 | $847,064 | -61% | | Professional services | $164,939 | $141,456 | +17% | | Research and development expenses | $29,712 | $277,894 | -89% | | Selling, general and administrative | $289,069 | $456,572 | -37% | - Reduction in operating expenses was driven by continued disciplined cost management and workforce optimization[9](index=9&type=chunk)[11](index=11&type=chunk) [Profitability Metrics](index=3&type=section&id=Profitability%20Metrics) Syra Health demonstrated significant improvement in profitability, with Adjusted EBITDA moving closer to breakeven and net loss decreasing by 95% in Q2 2025, reflecting benefits from operational restructuring. | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :---------------- | :---------- | :---------- | :----------- | | Operating Loss | ($63,158) | ($1,390,353) | +95.5% | | Adjusted EBITDA | ($54,000) | ($1.4 million) | Significant improvement | | Net Loss | ($63,596) | ($1,390,256) | -95% | - Improvement in net loss reflects the benefits from operational restructuring efforts conducted last year[10](index=10&type=chunk) [Cash and Debt Position](index=3&type=section&id=Cash%20and%20Debt%20Position) As of June 30, 2025, Syra Health maintained a healthy cash position of $2.3 million with no long-term debt, indicating financial stability. - Cash on hand as of June 30, 2025, was **$2.3 million**[13](index=13&type=chunk) - No long-term debt as of June 30, 2025[13](index=13&type=chunk) [Condensed Financial Statements](index=4&type=section&id=Condensed%20Financial%20Statements) [Condensed Balance Sheets](index=4&type=section&id=CONDENSED%20BALANCE%20SHEETS) The balance sheet shows a slight decrease in total assets from $3.68 million at December 31, 2024, to $3.47 million at June 30, 2025. Current assets remained relatively stable, while total liabilities increased, primarily due to a rise in accounts payable and deferred revenue. | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Total Assets | $3,471,462 | $3,679,332 | | Total Liabilities | $1,057,299 | $800,761 | | Total Stockholders' Equity (Deficit) | $2,414,163 | $2,878,571 | | Cash and cash equivalents | $2,305,924 | $2,395,405 | | Accounts receivable, net | $886,361 | $680,827 | | Accounts payable | $557,056 | $101,690 | | Deferred revenue | $266,611 | $16,611 | [Condensed Statements of Operations](index=5&type=section&id=CONDENSED%20STATEMENTS%20OF%20OPERATIONS) For the three months ended June 30, 2025, net revenues were consistent with the prior year, but gross profit more than doubled due to reduced cost of services. The company significantly reduced operating expenses, leading to a substantial decrease in net loss. | Metric | 2025 | 2024 | | :---------------------------------- | :---------- | :---------- | | Net revenues | $1,946,199 | $1,969,681 | | Cost of services | $1,193,304 | $1,619,674 | | Gross profit | $752,895 | $350,007 | | Total operating expenses | $816,053 | $1,740,360 | | Operating loss | ($63,158) | ($1,390,353) | | Net loss | ($63,596) | ($1,390,256) | | Net loss per common share - basic and diluted | ($0.01) | ($0.21) | [Condensed Statements of Cash Flows](index=6&type=section&id=CONDENSED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, net cash used in operating activities significantly decreased compared to the prior year, reflecting improved operational efficiency. Cash and cash equivalents at the end of the period were $2.3 million. | Metric | 2025 | 2024 | | :------------------------------------ | :---------- | :---------- | | Net cash provided by/(used in) operating activities | ($38,112) | ($2,304,012) | | Net cash used in investing activities | $0 | ($11,111) | | Net cash provided by/(used in) financing activities | ($51,369) | $629,400 | | Net change in cash and cash equivalents | ($89,481) | ($1,685,723) | | Cash and cash equivalents at end of period | $2,305,924 | $1,594,352 | [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) [Reconciliation of Adjusted EBITDA to Net Loss](index=7&type=section&id=RECONCILIATION%20OF%20ADJUSTED%20EBIDTA%20TO%20NET%20LOSS) The company provides Adjusted EBITDA as a non-GAAP measure to supplement GAAP results, facilitating period-to-period comparisons and analysis of operating performance. For Q2 2025, Adjusted EBITDA was ($53,760), a substantial improvement from ($1,369,153) in Q2 2024. - Adjusted EBITDA is a non-GAAP financial measure used internally and for investors to facilitate period-to-period comparisons and analysis of operating performance and liquidity[20](index=20&type=chunk) | Metric | 2025 | 2024 | | :------------------------------------------------ | :---------- | :---------- | | Net Loss | ($63,596) | ($1,390,256) | | Interest Expense | $3,858 | $3,729 | | Depreciation Expense | $5,978 | $17,374 | | Taxes | $0 | $0 | | Earnings before Interest, Taxes Depreciation and Amortization (Adjusted EBITDA) | ($53,760) | ($1,369,153) | [Additional Information](index=7&type=section&id=Additional%20Information) [About Syra Health](index=7&type=section&id=About%20Syra%20Health) Syra Health is a healthcare technology company focused on improving health in areas like mental health, population health, and healthcare workforce through innovative technology products and services, emphasizing prevention, access, and affordability. - Syra Health is a healthcare technology company focused on powering better health in critical areas such as mental health, population health, and the healthcare workforce[23](index=23&type=chunk) - The company's technology products and innovative services focus on prevention, access, and affordability[23](index=23&type=chunk) [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements regarding future expectations, plans, and financial results, which are subject to substantial risks and uncertainties. Investors are advised to review risk factors in SEC filings, and the company disclaims any obligation to update these statements. - Statements about future expectations, plans, and prospects, as well as other non-historical facts, constitute "forward-looking statements"[24](index=24&type=chunk) - These statements are based on management's current expectations and are subject to substantial risks, uncertainty, and changes in circumstances[24](index=24&type=chunk) - Investors should read the risk factors set forth in the company's Form 10-K and other periodic reports filed with the SEC[24](index=24&type=chunk) [Investor and Media Inquiries](index=7&type=section&id=For%20Investor%20or%20Media%20Inquiries) Contact information for investor and media inquiries is provided for Syra Health. - Contact Christine Drury (IR/PR) at **463-345-5180** or **christined@syrahealth.com** for investor or media inquiries[25](index=25&type=chunk)

Financial Highlights - Revenue for Q2 2025 was $1.9 million, consistent with $1.97 million in Q2 2024 [6][10] - Population Health revenue grew 197% year-over-year to $1.6 million from $533,000 in Q2 2024 [7][10] - Gross margin increased to 38.7%, up 2,090 basis points from 17.8% in the prior year [6][11] - Earnings per share improved to ($0.01) from ($0.21) in the same period last year [6][12] Operational Highlights - The company is engaged in contract negotiations for a $5.8 million agreement to support Indiana's Child Mental Health Wraparound program [8] - Awarded a contract worth up to $2.1 million for medical management nurses for a major health insurer, marking an expansion into the private sector [8] - Achieved ISO 27001:2022 certification, demonstrating commitment to data protection and information security [8] Management Commentary - Interim CEO Priya Prasad stated that the company is nearing profitability, driven by the growth of the Population Health business unit [9] - The company is focused on scaling successful strategies and maximizing long-term shareholder value [9] Financial Outlook - The company relies heavily on government budgets for revenue, with potential delays and cancellations in contracts due to federal spending program changes [3] - The possibility of further spending reviews may negatively impact revenue and cash flows in the near term [3]

Group 1 - Syra Health Corp. will report its financial results for the three months ended June 30, 2025, on August 12, 2025, before the market opens [1] - The company focuses on healthcare technology, particularly in behavioral and mental health, population health, and the healthcare workforce [2] - Syra Health aims to improve health through innovative technology products and services that emphasize prevention, access, and affordability [2] Group 2 - The company is committed to advancing healthcare solutions both nationwide and globally [2] - For further information, Syra Health's website is available at www.syrahealth.com [2] - Investor and media inquiries can be directed to Christine Drury at Syra Health [3]

Core Insights - Syra Health has secured a one-year contract worth up to $2.1 million with a major insurance provider to staff registered nurses for specific health plans [2][3] - The contract aims to enhance healthcare outcomes by embedding medical management nurses into care teams, thereby addressing gaps in care and ensuring timely access to appropriate services [3] Company Overview - Syra Health is a healthcare technology company focused on improving health through innovative technology products and services, particularly in areas like mental health, population health, and the healthcare workforce [4] - The company emphasizes prevention, access, and affordability in its offerings, aiming to advance healthcare solutions both nationally and globally [4]

Core Viewpoint - Syra Health Corp. has been recommended for contract negotiations to implement Indiana's Child Mental Health Wraparound Access Site, valued at $5.8 million over three years, with a potential one-year extension [1][2]. Company Overview - Syra Health is a healthcare technology company focused on improving health through innovative technology products and services, particularly in mental health, population health, and healthcare workforce [4]. - The company emphasizes prevention, access, and affordability in its healthcare solutions, aiming to advance healthcare nationwide and globally [4]. Contract Details - The contract with the Indiana Department of Administration involves Syra Health serving as the statewide access point for families and providers in the Child Mental Health Wraparound program [3]. - Syra Health will subcontract 23.5% of the total contract value to other Indiana-based companies, indicating a commitment to local partnerships [1]. Strategic Importance - This initiative is part of Indiana's broader strategy to enhance care coordination and improve mental health outcomes for children across the state [3]. - Syra Health has a proven track record of executing complex health initiatives for state and local governments, showcasing its capability in delivering comprehensive health solutions [2].

Core Points - Syra Health Corp. is initiating a national search for a new CEO to succeed Dr. Deepika Vuppalanchi, who will serve as interim CEO during the transition [1][2] - This leadership change is part of a strategic succession plan aimed at positioning the company for future growth in the healthcare sector [2] - The Board expresses gratitude to Dr. Vuppalanchi for her contributions and plans for her continued involvement in the leadership team post-CEO appointment [3] Company Overview - Syra Health is a healthcare technology company focused on improving health in areas such as mental health, population health, and the healthcare workforce [4] - The company emphasizes prevention, access, and affordability through its innovative technology products and services [4] - Syra Health is committed to advancing healthcare solutions both nationally and globally [4]

[Q1 2025 Financial Highlights](index=1&type=section&id=Q1%202025%20Financial%20Highlights) Syra Health reported 6% YoY revenue growth to **$1.9 million**, driven by Population Health, with gross margins improving to **31.7%** and net loss narrowing Q1 2025 Key Financial Metrics vs. Q1 2024 | Metric | Q1 2025 ($) | Q1 2024 ($) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $1.9 million | $1.8 million | +6% YoY | | Gross Margin | 31.7% | 17.1% | +14.6 p.p. | | Operating Expense | $1.1 million | $1.7 million | -39% YoY | | Net Loss | ($472,000) | ($1.4 million) | +67% Improvement | | EPS (diluted) | ($0.04) | ($0.22) | +81.8% Improvement | - The Population Health business unit was the primary growth driver, with revenues reaching **$1.2 million**, a **261% increase** from **$333,000** in Q1 2024[4](index=4&type=chunk)[6](index=6&type=chunk) - This segment now constitutes **65% of total revenues**, up from **19%** in the prior year[4](index=4&type=chunk)[6](index=6&type=chunk) - As of March 31, 2025, the company reported a cash balance of **$2.5 million** and no long-term debt[4](index=4&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) CEO highlighted strong Q1 momentum, attributing revenue growth and margin expansion to a strategic pivot towards higher-margin business units - The CEO emphasized that the strong Q1 momentum, including revenue growth and margin expansion, was driven by a strategic focus on higher-margin business units[5](index=5&type=chunk) - The success of the Population Health unit is cited as proof of the effectiveness of the company's refined go-to-market strategy[5](index=5&type=chunk) - The company remains focused on operational efficiency, innovative digital health solutions, and long-term value creation[5](index=5&type=chunk) [2025 Financial Outlook](index=1&type=section&id=2025%20Financial%20Outlook) Syra Health withdrew its 2025 financial guidance due to federal budgetary revisions impacting government customers and market variability - The company has withdrawn its **2025 financial guidance**[4](index=4&type=chunk) - The decision was prompted by ongoing federal budgetary revisions affecting government agency customers and the resulting variability in the healthcare market[4](index=4&type=chunk) [Recent Operational Highlights](index=1&type=section&id=Recent%20Operational%20Highlights) Syra Health is prioritizing higher-margin Population Health and Behavioral/Mental Health units, expanding into the private sector, and securing significant new contracts - The company is prioritizing higher-margin business units (Population Health, Behavioral and Mental Health) and expanding into the private sector[4](index=4&type=chunk) - Secured a **$2.5 million** Population Health contract with a major insurance provider, set to renew for two additional years at the same value[4](index=4&type=chunk) - Obtained a one-year, **$1.5 million** contract extension with Indiana FSSA NeuroDiagnostic Institute[4](index=4&type=chunk) - Awarded a **$660,000** Population Health contract extension to support a national healthcare organization's HEDIS® program[11](index=11&type=chunk) - Launched specialized content within the Syrenity platform to support individuals with Post-Traumatic Stress Disorder (PTSD)[11](index=11&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) This section presents Syra Health's unaudited consolidated financial statements for Q1 2025, including Balance Sheets, Statements of Operations, and Cash Flows [Balance Sheets](index=3&type=section&id=BALANCE%20SHEETS) As of March 31, 2025, Syra Health reported total assets of **$3.72 million**, total liabilities of **$1.27 million**, and cash of **$2.49 million** Balance Sheet Highlights (Unaudited) | Account | March 31, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Cash and cash equivalents | $2,490,585 | $2,395,405 | | Total current assets | $3,647,229 | $3,352,795 | | Total assets | $3,722,550 | $3,679,332 | | Total current liabilities | $1,265,914 | $613,549 | | Total liabilities | $1,265,914 | $800,761 | | Total stockholders' equity | $2,456,636 | $2,878,571 | [Statements of Operations](index=4&type=section&id=STATEMENTS%20OF%20OPERATIONS) For Q1 2025, Syra Health generated net revenues of **$1.86 million**, with gross profit nearly doubling and a net loss of **($472,265)** Statement of Operations Summary (Unaudited) | Account | For the Three Months Ended March 31, 2025 ($) | For the Three Months Ended March 31, 2024 ($) | | :--- | :--- | :--- | | Net revenues | $1,857,774 | $1,752,340 | | Gross profit | $589,156 | $299,779 | | Total operating expenses | $1,062,490 | $1,743,733 | | Operating loss | ($473,334) | ($1,443,954) | | Net loss | ($472,265) | ($1,447,050) | | Net loss per common share | ($0.04) | ($0.22) | [Statements of Cash Flows](index=5&type=section&id=STATEMENTS%20OF%20CASH%20FLOWS) In Q1 2025, Syra Health generated positive cash flow from operating activities of **$158,231**, a significant turnaround, with cash increasing to **$2.49 million** Cash Flow Summary (Unaudited) | Account | For the Three Months Ended March 31, 2025 ($) | For the Three Months Ended March 31, 2024 ($) | | :--- | :--- | :--- | | Net cash provided by/(used in) operating activities | $158,231 | ($800,745) | | Net cash used in investing activities | $0 | ($5,619) | | Net cash provided by/(used in) financing activities | ($63,051) | $764,246 | | Net change in cash and cash equivalents | $95,180 | ($42,118) | | Cash and cash equivalents at end of period | $2,490,585 | $3,237,957 | [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) Syra Health provides Adjusted EBITDA, a non-GAAP measure, to supplement GAAP results, reporting **($462,239)** for Q1 2025, a significant improvement - The company uses the non-GAAP measure Adjusted EBITDA for internal analysis and believes it is useful for investors to benchmark performance[18](index=18&type=chunk) Reconciliation of Adjusted EBITDA to Net Loss (Unaudited) | Metric | Q1 2025 ($) | Q1 2024 ($) | | :--- | :--- | :--- | | Net Loss | ($472,265) | ($1,447,050) | | Interest expense | $3,229 | $4,077 | | Depreciation expense | $6,797 | $12,545 | | Taxes | $0 | $0 | | **Adjusted EBITDA** | **($462,239)** | **($1,430,428)** |

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Presents Syra Health Corp.'s unaudited condensed financial statements and notes for periods ended March 31, 2025, and December 31, 2024 [Condensed Balance Sheets](index=5&type=section&id=Condensed%20Balance%20Sheets%20as%20of%20March%2031%2C%202025%20(Unaudited)%20and%20December%2031%2C%202024) Balance Sheet Data | Metric | March 31, 2025 ($) | December 31, 2024 ($) | | :-------------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $2,490,585 | $2,395,405 | | Accounts receivable, net | $945,856 | $680,827 | | Total current assets | $3,647,229 | $3,352,795 | | Total assets | $3,722,550 | $3,679,332 | | Accounts payable | $325,027 | $101,690 | | Deferred revenue | $599,213 | $16,611 | | Total current liabilities | $1,265,914 | $613,549 | | Total liabilities | $1,265,914 | $800,761 | | Total stockholders' equity (deficit) | $2,456,636 | $2,878,571 | | Accumulated deficit | $(9,296,458) | $(8,824,193) | - **Total assets** increased slightly from **$3,679,332** at December 31, 2024, to **$3,722,550** at March 31, 2025 **Current assets** saw an increase, primarily driven by higher **accounts receivable** and **cash**[13](index=13&type=chunk) - **Total liabilities** significantly increased from **$800,761** to **$1,265,914**, mainly due to a substantial rise in **accounts payable** and **deferred revenue** **Stockholders' equity** decreased from **$2,878,571** to **$2,456,636**, and the **accumulated deficit** worsened from **$(8,824,193)** to **$(9,296,458)**[13](index=13&type=chunk) [Condensed Statements of Operations](index=6&type=section&id=Condensed%20Statements%20of%20Operations%20for%20the%20Three%20Months%20ended%20March%2031%2C%202025%20and%202024%20(Unaudited)) Statements of Operations Data | Metric | Three Months Ended March 31, 2025 ($) | Three Months Ended March 31, 2024 ($) | Change (YoY) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :----------- | | Net revenues | $1,857,774 | $1,752,340 | +6.02% | | Cost of services | $1,268,618 | $1,452,561 | -12.66% | | Gross profit | $589,156 | $299,779 | +96.53% | | Total operating expenses | $1,062,490 | $1,743,733 | -39.07% | | Operating loss | $(473,334) | $(1,443,954) | +67.22% | | Net loss | $(472,265) | $(1,447,050) | +67.36% | | Net loss per common share - basic and diluted | $(0.04) | $(0.22) | +81.82% | - **Net revenues** increased by **6%** year-over-year, reaching **$1,857,774** in Q1 2025 **Gross profit** nearly doubled, increasing by **96.53%** due to a significant decrease in the **cost of services**[15](index=15&type=chunk) - The company significantly reduced its **net loss** by **67.36%**, from **$(1,447,050)** in Q1 2024 to **$(472,265)** in Q1 2025, primarily driven by lower **operating expenses** and improved **gross profit** Basic and diluted **net loss per share** improved from **$(0.22)** to **$(0.04)**[15](index=15&type=chunk) [Statements of Changes in Stockholders' Equity (Deficit)](index=7&type=section&id=Statements%20of%20Changes%20in%20Stockholders'%20Equity%20(Deficit)%20for%20the%20Three%20Months%20ended%20March%2031%2C%202025%20and%202024%20(Unaudited)) Stockholders' Equity Data | Item | March 31, 2025 ($) | December 31, 2024 ($) | | :-------------------------------- | :------------- | :---------------- | | Class A Common Stock Shares | 11,339,169 | 8,979,204 | | Class A Common Stock Amount | $11,339 | $8,979 | | Convertible Class B Common Stock Shares | 600,000 | 833,334 | | Convertible Class B Common Stock Amount | $600 | $833 | | Additional Paid-in Capital | $11,741,155 | $11,692,952 | | Accumulated Deficit | $(9,296,458) | $(8,824,193) | | Total Stockholders' Equity (Deficit) | $2,456,636 | $2,878,571 | - During Q1 2025, **Class A common stock shares** increased significantly due to the conversion of **233,334 Class B shares** into **2,333,340 Class A shares** and the exercise of **warrants** **Total stockholders' equity** decreased from **$2,878,571** to **$2,456,636**, primarily due to the **net loss** incurred during the period[18](index=18&type=chunk)[77](index=77&type=chunk)[83](index=83&type=chunk) [Condensed Statements of Cash Flows](index=9&type=section&id=Condensed%20Statements%20of%20Cash%20Flows%20for%20the%20Three%20Months%20ended%20March%2031%2C%202025%20and%202024%20(Unaudited)) Cash Flow Data | Cash Flow Activity | Three Months Ended March 31, 2025 ($) | Three Months Ended March 31, 2024 ($) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by/(used in) operating activities | $158,231 | $(800,745) | | Net cash used in investing activities | $0 | $(5,619) | | Net cash provided by/(used in) financing activities | $(63,051) | $764,246 | | NET CHANGE IN CASH AND CASH EQUIVALENTS | $95,180 | $(42,118) | | CASH AND CASH EQUIVALENTS AT END OF PERIOD | $2,490,585 | $3,237,957 | - **Operating activities** generated **$158,231** in **cash** in Q1 2025, a significant improvement from the **$(800,745)** **cash** used in Q1 2024, reflecting better working capital management and reduced expenses[21](index=21&type=chunk)[109](index=109&type=chunk) - **Cash** used in **financing activities** was **$(63,051)** in Q1 2025, primarily due to repayments on **notes payable**, contrasting with **$764,246** provided by **financing activities** in Q1 2024, which included substantial proceeds from **warrant** exercises[21](index=21&type=chunk)[112](index=112&type=chunk) [Notes to the Condensed Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Financial%20Statements%20(Unaudited)) [Note 1 – Nature of Business and Significant Accounting Policies](index=10&type=section&id=Note%201%20%E2%80%93%20Nature%20of%20Business%20and%20Significant%20Accounting%20Policies) - Syra Health Corp provides workforce staffing solutions, health education, and healthcare research consulting services to mental health hospitals and organizations, including government agencies, integrated health networks, managed care entities, and pharmaceutical manufacturers[23](index=23&type=chunk) - The financial statements are prepared in accordance with U.S GAAP, with certain disclosures omitted as permitted for interim reports on Form 10-Q Management's estimates and assumptions are used, and actual results may differ[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&