Syra Health (SYRA) - 2025 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Financial Statements Presents Syra Health Corp.'s unaudited condensed financial statements and notes for periods ended March 31, 2025, and December 31, 2024 Condensed Balance Sheets 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] - 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 $(9,296,458)[13] Condensed Statements of Operations Statements of Operations Data | Metric | Three Months Ended March 31, 2025 ($) | 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] - 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 $(0.04)[15] Statements of Changes in Stockholders' Equity (Deficit) Stockholders' Equity Data | Item | March 31, 2025 ($) | 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 $2,456,636, primarily due to the net loss incurred during the period[18][77][83] Condensed Statements of Cash Flows Cash Flow Data | Cash Flow Activity | Three Months Ended March 31, 2025 ($) | 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][109] - 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][112] Notes to the Condensed Financial Statements Note 1 – Nature of Business and Significant Accounting Policies - 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] - 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][25][26](index=26&