
PART I – FINANCIAL INFORMATION Item 1. Financial Statements This section presents the unaudited consolidated financial statements for Silo Pharma, Inc. and its subsidiary, including the Balance Sheets, Statements of Operations and Comprehensive Loss, Statements of Changes in Stockholders' Equity, and Statements of Cash Flows, along with detailed condensed notes explaining the company's organization, significant accounting policies, fair value measurements, intangible assets, stockholders' equity, concentrations, commitments, contingencies, and subsequent events Consolidated Balance Sheets Consolidated Balance Sheets | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :----------------------------------- | :-------------------------- | :------------------ | | ASSETS | | | | Cash and cash equivalents | $4,333,672 | $3,905,799 | | Short-term investments | $1,926,297 | $3,174,724 | | Total Current Assets | $6,373,031 | $7,111,480 | | Total Assets | $6,652,507 | $7,411,840 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Total Current Liabilities | $1,049,897 | $1,655,997 | | Total Liabilities | $1,735,424 | $2,377,575 | | Total Stockholders' Equity | $4,917,083 | $5,034,265 | | Total Liabilities and Stockholders' Equity | $6,652,507 | $7,411,840 | Consolidated Statements of Operations and Comprehensive Loss Consolidated Statements of Operations and Comprehensive Loss | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | License Fee Revenue | $18,025 | $18,025 | $36,051 | $36,051 | | Gross Profit | $16,566 | $16,566 | $33,132 | $33,132 | | Total Operating Expenses | $1,265,117 | $1,019,340 | $2,375,804 | $1,915,419 | | Loss From Operations | $(1,248,551) | $(1,002,774) | $(2,342,672) | $(1,882,287) | | Total Other Income, Net | $44,258 | $70,995 | $106,942 | $148,841 | | Net Loss | $(1,204,293) | $(931,779) | $(2,235,730) | $(1,733,446) | | Basic and Diluted Net Loss Per Common Share | $(0.19) | $(0.31) | $(0.41) | $(0.59) | Consolidated Statements of Changes in Stockholders' Equity - Total Stockholders' Equity decreased from $5,034,265 as of December 31, 2024, to $4,917,083 as of June 30, 2025, primarily due to net losses, partially offset by proceeds from common stock and warrant sales20 - Common stock shares issued and outstanding increased significantly from 4,484,456 at December 31, 2024, to 8,651,128 at June 30, 2025, driven by sales of common stock and exercise of warrants1720 Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | | Net Cash Used in Operating Activities | $(2,925,568) | $(1,569,982) | | Net Cash Provided by Investing Activities | $1,259,483 | $1,051,868 | | Net Cash Provided by Financing Activities | $2,093,958 | $1,500,106 | | Net Increase in Cash and Cash Equivalents | $427,873 | $981,992 | | Cash and Cash Equivalents - End of Period | $4,333,672 | $4,506,300 | Condensed Notes to Consolidated Financial Statements NOTE 1 – ORGANIZATION AND BUSINESS Silo Pharma, Inc. is a diversified developmental-stage biopharmaceutical and cryptocurrency treasury company, incorporated in Nevada. Its therapeutic focus is on developing novel treatments for underserved conditions like PTSD, anxiety, fibromyalgia, and CNS diseases, including specific drug candidates SPC-15, SP-26, SPC-14, and SPU-16 - The Company is a diversified developmental-stage biopharmaceutical and cryptocurrency treasury company29 - Therapeutic focus includes developing novel therapeutics for PTSD, stress-induced anxiety disorders, fibromyalgia, and central nervous system (CNS) diseases29 - Key drug candidates in development are SPC-15 (intranasal for PTSD/anxiety), SP-26 (time-release ketamine implant for fibromyalgia), SPC-14 (intranasal for Alzheimer's), and SPU-16 (CNS-homing peptide for multiple sclerosis)29 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This section outlines the significant accounting policies used in preparing the unaudited consolidated financial statements, including the basis of presentation, principles of consolidation, liquidity assessment, use of estimates, and specific policies for cash, investments, intangible assets, revenue recognition, stock-based compensation, income taxes, R&D, leases, and net loss per share. It also notes the company's single operating segment and recent accounting pronouncements - The Company operates as a single operating segment, focusing on clinical-stage biopharmaceutical development56 - Research and development costs are expensed as incurred, totaling $1,311,209 for the six months ended June 30, 2025, an increase from $774,889 in the prior year50 - The Company had positive working capital of $5,323,134 as of June 30, 2025, mitigating going concern doubts and providing sufficient cash for at least twelve months3233 NOTE 3 – FAIR VALUE OF FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS This note details the Company's fair value measurements, classifying financial assets and liabilities into a three-level hierarchy. Short-term investments, primarily exchange-traded funds, are categorized as Level 1 measurements based on their redemption value. The note also summarizes the activity in short-term investments, showing a decrease in balance from the beginning of the period - Short-term investments, consisting of exchange-traded funds, are classified as Level 1 fair value measurements67 Short-term Investments Activity | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | | Balance, beginning of period | $3,174,724 | $4,140,880 | | Purchases of short-term investments | $56,170 | $97,452 | | Sales at original cost | $(1,315,653) | $(1,149,320) | | Net realized gain (loss) on short-term investments | $3,911 | $(1,025) | | Unrealized gain | $7,145 | $14,253 | | Balance, end of period | $1,926,297 | $3,102,240 | NOTE 4 – INTANGIBLE ASSETS This note details the Company's intangible assets, primarily an exclusive license agreement with Columbia University for $235,000, which was revised down from $247,400. The asset is amortized over 20 years, with amortization expense of $5,565 for the six months ended June 30, 2025 - Intangible assets primarily consist of an exclusive license agreement with Columbia University, initially costing $247,400, later revised to $235,0006973 - The license is amortized over an estimated useful life of 20 years4273 Intangible Assets Summary | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | License Cost | $235,000 | $247,400 | | Less: Accumulated Amortization | $(11,750) | $(6,185) | | Net Intangible Assets | $223,250 | $241,215 | | Amortization Expense (Six Months) | $5,565 | $0 | NOTE 5 – STOCKHOLDERS' EQUITY This note details changes in stockholders' equity, including the Company's authorized shares, various common stock and warrant offerings in June and July 2024, and May 2025, which significantly increased outstanding shares and capital. It also covers the stock repurchase plan, stock option grants to executives and board members, and warrant activities - The Company's authorized shares consist of 100,000,000 common stock and 5,000,000 preferred stock75 - Multiple offerings (June 2024, July 2024, May 2025) of common stock and warrants resulted in significant capital raises and an increase in outstanding common shares768595 - In May 2025, 400,000 incentive stock options were granted to executive officers and board members, valued at $167,566, vesting over one year110 Stockholders' Equity Summary | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :-------------- | :---------------- | | Common Stock Shares Outstanding | 8,651,128 | 4,484,456 | | Additional Paid-in Capital | $22,407,075 | $20,296,088 | | Accumulated Deficit | $(17,500,421) | $(15,264,691) | | Total Stockholders' Equity | $4,917,083 | $5,034,265 | NOTE 6 – CONCENTRATIONS This note highlights the Company's significant customer and vendor concentrations, with one licensee accounting for 100% of total revenues and one licensor accounting for 100% of vendor license agreements for both the six months ended June 30, 2025 and 2024 - One licensee accounted for 100% of total revenues from customer license fees for the six months ended June 30, 2025 and 2024121 - One licensor accounted for 100% of the Company's vendor license agreements related to biopharmaceutical operations for the six months ended June 30, 2025 and 2024122 NOTE 7 – COMMITMENTS AND CONTINGENCIES This note details the Company's commitments and contingencies, including employment agreements with key executives (Eric Weisblum, Daniel Ryweck, Dr. James Kuo) outlining salaries, bonuses, and severance terms. It also covers significant license agreements with the University of Maryland, Baltimore (UMB) and Columbia University, and customer license/sublicense agreements with Aikido Pharma Inc., specifying fees, royalties, and milestone payments. Future research and development commitments are also disclosed - Employment agreements with Eric Weisblum (CEO), Daniel Ryweck (CFO), and Dr. James Kuo (VP R&D) detail base salaries, potential bonuses, and severance provisions124125126 - The Company has a Master License Agreement with UMB for CNS-homing peptides, involving license fees, milestone payments (up to $1,900,000), and tiered royalty payments128133135 - An exclusive license agreement with Columbia University grants rights to patents for stress-induced affective disorders, requiring an initial license fee, annual fees, and royalties140 - Customer license and sublicense agreements with Aikido Pharma Inc. generated $34,375 in license fee revenues for the six months ended June 30, 2025, with deferred revenue balances of $68,750 (current) and $653,125 (long-term)149152 Future Amounts Due Under Sponsored Study and Research Agreements | Year ended June 30, | Amount | | :------------------ | :------------- | | 2026 | $1,245,000 | | Total | $1,245,000 | NOTE 8 – SUBSEQUENT EVENTS This note describes subsequent events after June 30, 2025, including the termination of the Master License Agreement with UMB and the granting of an exclusive option for a new commercial license for CNS-homing peptides. Additionally, the Company entered into an asset purchase agreement with MAVS Holdings LLC to acquire web-based application software and domain names for $518,250, paid in common stock - On July 8, 2025, the Master License Agreement with UMB was terminated, and the Company received an exclusive option for a new commercial license for CNS-homing peptides, expiring March 31, 2026154156 - On July 29, 2025, the Company acquired software and domain names from MAVS Holdings LLC for $518,250, paid by issuing 750,000 shares of common stock157 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides an overview of Silo Pharma's business as a developmental-stage biopharmaceutical and cryptocurrency treasury company. It details the company's therapeutic product candidates, including SPC-15 for PTSD, SP-26 for fibromyalgia, SPC-14 for Alzheimer's, and SPU-16 for CNS disorders. The discussion also covers the company's recent entry into a cryptocurrency treasury strategy, a comparison of financial results for the three and six months ended June 30, 2025 and 2024, and an analysis of liquidity and capital resources Overview - Silo Pharma, Inc. is a diversified developmental-stage biopharmaceutical and cryptocurrency treasury company160 - The company's therapeutic focus is on developing novel treatments for PTSD, stress-induced anxiety disorders, fibromyalgia, and CNS diseases160 - Lead programs include SPC-15 (intranasal for PTSD/anxiety), SP-26 (ketamine implant for fibromyalgia), SPC-14 (intranasal for Alzheimer's), and SPU-16 (CNS-homing peptide for MS)160 Therapeutics - The Company seeks to acquire and develop intellectual property for rare diseases, including the use of psychedelic drugs like psilocybin and ketamine for depression, mental health, and neurological disorders161 - Psilocybin therapy has shown promising results in academic studies for rapid reductions in depression symptoms163 - The Company has license agreements with the University of Maryland, Baltimore, and Columbia University for various therapeutic developments165 Product Candidates - The Company is focusing on four product candidates: SPC-15, SP-26, SPC-14, and SPU-16175 SPC-15: Intranasal Treatment for PTSD and Anxiety Disorders SPC-15 is an intranasal serotonin 4 receptor agonist for PTSD and anxiety, with exclusive global development rights from Columbia University. It utilizes Medspray Pharma's nasal spray technology and is pursuing the FDA's 505(b)(2) pathway, with IND submission aimed for 2025 after preclinical studies - SPC-15 is an intranasal serotonin 4 (5-HT4) receptor agonist targeting PTSD and anxiety disorders167 - The Company holds exclusive global rights from Columbia University for SPC-15 and uses Medspray Pharma BV's soft mist nasal spray technology for delivery167168 - A pre-IND meeting with the FDA was held in September 2024, and an IND submission is targeted for 2025 following GLP-compliant studies168169 SP-26: Ketamine Implant for Fibromyalgia SP-26 is a novel ketamine-based injectable dissolvable polymer implant for chronic pain and fibromyalgia, currently in preclinical research. It aims to provide sustained relief with optimized dosage control, pursuing the FDA's 505(b)(2) regulatory pathway as a non-opioid alternative - SP-26 is a ketamine-based injectable dissolvable polymer implant for chronic pain and fibromyalgia, currently in preclinical research171 - The Company filed a provisional patent application for SP-26 in March 2023 and intends to develop it via the FDA's 505(b)(2) regulatory pathway172 - SP-26 aims to be a non-opioid alternative, improving dosage control compared to intravenous delivery for fibromyalgia, which affects approximately 4 million U.S. adults173 SPC-14: Treatment for Alzheimer's Disease SPC-14 targets glutamate receptor NDMAR and serotonin 5-HT4 for cognitive and neuropsychiatric symptoms in Alzheimer's disease, developed under a sponsored research agreement with Columbia University. The Company holds exclusive global rights and has extended research into its mechanism of action, showing efficacy against luteinizing hormone (LH) in attenuating learned helplessness and anxiety - SPC-14 targets glutamate receptor NDMAR and serotonin 5-HT4 for cognitive and neuropsychiatric symptoms in Alzheimer's disease174 - Developed under a sponsored research agreement with Columbia University, the Company has exclusive global rights to develop and commercialize SPC-14174 - SPC-14 has shown efficacy against luteinizing hormone (LH) in attenuating learned helplessness, preservative behavior, and hyponeophagia176 SPU-16: Treatment for CNS Disorders, Initial Indication for Multiple Sclerosis SPU-16 is a candidate for CNS disorders, initially targeting multiple sclerosis, based on intellectual property from the University of Maryland, Baltimore (UMB). The original Master License Agreement with UMB was terminated on July 8, 2025, and the Company now holds an exclusive option for a new commercial license for the related CNS-homing peptides, aiming to reduce toxicity and enhance therapeutic delivery - SPU-16 targets central nervous system (CNS) disorders, with an initial indication for multiple sclerosis177 - The Master License Agreement with UMB for SPU-16 was terminated on July 8, 2025, replaced by an exclusive option for a new commercial license for the underlying intellectual property179180 - SPU-16 is believed to offer a competitive advantage by using homing peptides to reduce toxicity and enhance therapeutic payload delivery181 Cryptocurrency Treasury Strategy - The Company's strategy changed in August 2025 to include a cryptocurrency treasury strategy focused on acquiring leading digital assets182 Recent Developments - On August 4, 2025, the Board approved the establishment of a cryptocurrency advisory board, appointing Corwin Yu as the initial member183 - On August 5, 2025, the Company announced the launch of its cryptocurrency treasury strategy, focusing on leading digital assets like Bitcoin, Ethereum, and Solana183184 Results of Operations Revenues The Company generated minimal and consistent revenues of $18,025 for the three months and $36,051 for the six months ended June 30, 2025 and 2024, primarily from the Aikido License and Sublicense Agreement, recognized over a 15-year term Revenues | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $18,025 | $18,025 | $36,051 | $36,051 | - Revenues are derived from the Aikido License and Sublicense Agreement, recognized over an estimated 15-year term187 Cost of Revenues Cost of revenues remained consistent at $1,459 for the three months and $2,919 for the six months ended June 30, 2025 and 2024, consisting of amortized license fees related to the UMB License and Sublicense Agreement Cost of Revenues | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of Revenues | $1,459 | $1,459 | $2,919 | $2,919 | - Cost of revenues primarily consists of amortized license fees from the UMB License and Sublicense Agreement188 Operating Expenses Total operating expenses increased by 24.5% for both the three and six months ended June 30, 2025, primarily driven by a significant increase in research and development costs, partially offset by decreases in professional fees and other selling, general and administrative expenses Total Operating Expenses | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Operating Expenses | $1,265,117 | $1,019,340 | $2,375,804 | $1,915,419 | - Total operating expenses increased by $245,777 (24.5%) for the three months and $460,385 (24.5%) for the six months ended June 30, 2025198 Compensation Expense Compensation expense increased by 16.0% for the three months and 9.4% for the six months ended June 30, 2025, primarily due to increases in stock-based compensation and payroll expenses Compensation Expense | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Compensation Expense | $195,305 | $168,381 | $373,774 | $341,727 | - Increase in compensation expense was primarily due to a $17,445 increase in stock-based compensation and higher payroll expenses190191 Professional Fees Professional fees decreased by 22.5% for the three months and 10.6% for the six months ended June 30, 2025, mainly due to reductions in investor relations and consulting fees, partially offset by increases in legal, accounting, and auditing fees Professional Fees | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Professional Fees | $299,592 | $386,465 | $573,416 | $641,067 | - Decrease in professional fees was primarily driven by a reduction in investor relations ($92,460 for three months, $45,215 for six months) and consulting fees ($34,200 for three months, $47,949 for six months)191192 Research and Development Research and development expenses significantly increased by 82.6% for the three months and 69.2% for the six months ended June 30, 2025, reflecting increased costs associated with Investigator-sponsored Study Agreements and other research projects Research and Development | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Research and Development | $717,247 | $392,824 | $1,311,209 | $774,889 | - The increase in R&D expenses was due to higher costs related to Investigator-sponsored Study Agreements and other research projects with third-party vendors and universities193 Other Selling, General and Administrative Expenses Other selling, general and administrative expenses decreased by 26.1% for the three months and 25.6% for the six months ended June 30, 2025, primarily due to reduced advertising and promotion, proxy meeting fees, and filing fees Other Selling, General and Administrative Expenses | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Other Selling, General and Administrative Expenses | $52,973 | $71,670 | $117,405 | $157,736 | - The decrease was mainly attributed to a reduction in advertising and promotion ($19,386 for three months, $16,320 for six months), proxy meeting fees ($19,000 for six months), and filing fees ($9,891 for six months)196197 Loss from Operations Loss from operations increased by 24.5% for both the three and six months ended June 30, 2025, primarily due to the overall increase in operating expenses, particularly research and development Loss from Operations | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Loss from Operations | $(1,248,551) | $(1,002,774) | $(2,342,672) | $(1,882,287) | - The increase in loss from operations was a direct result of the changes in operating expenses, particularly the rise in research and development costs198 Other Income Other income, net, decreased by 37.7% for the three months and 28.2% for the six months ended June 30, 2025, primarily due to a significant decrease in interest and dividend income, partially offset by an increase in net realized gain on short-term investments and reduced foreign currency transaction losses Other Income, Net | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Other Income, Net | $44,258 | $70,995 | $106,942 | $148,841 | - The decrease in other income was primarily due to a $32,125 (three months) and $58,474 (six months) decrease in interest and dividend income199200 - This was partially offset by an increase in net realized gain on short-term investments ($2,248 for three months, $4,936 for six months) and a decrease in foreign currency transaction loss199200 Net Loss Net loss increased by 29.2% for the three months and 29.0% for the six months ended June 30, 2025, reaching $1,204,293 and $2,235,730 respectively, primarily driven by the changes in operating expenses and other income Net Loss | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Loss | $(1,204,293) | $(931,779) | $(2,235,730) | $(1,733,446) | | Net Loss Per Common Share (Basic and Diluted) | $(0.19) | $(0.31) | $(0.41) | $(0.59) | - The increase in net loss was primarily a result of the changes in operating expenses and other income discussed previously202 Liquidity and Capital Resources - The Company had working capital of $5,323,134, short-term investments of $1,926,297, and cash and cash equivalents of $4,333,672 as of June 30, 2025203 - Working capital decreased by $132,349 (2%) from December 31, 2024, primarily due to a decrease in short-term investments, partially offset by an increase in cash and a decrease in current liabilities204207 - The Company believes it has sufficient cash and liquid short-term investments to meet its obligations for a minimum of twelve months from the filing date212216 Cash Flows Cash flows from operating activities showed a significant increase in usage, while investing activities provided more cash, and financing activities also provided more cash, leading to a net increase in cash and cash equivalents for the six months ended June 30, 2025 Cash Flow Summary | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | | Net Cash Used in Operating Activities | $(2,925,568) | $(1,569,982) | | Net Cash Provided by Investing Activities | $1,259,483 | $1,051,868 | | Net Cash Provided by Financing Activities | $2,093,958 | $1,500,106 | | Net Increase in Cash and Cash Equivalents | $427,873 | $981,992 | Net Cash Used in Operating Activities Net cash used in operating activities increased by 86.3% to $2,925,568 for the six months ended June 30, 2025, primarily due to a higher net loss and decreases in accounts payable and deferred revenue - Net cash used in operating activities increased by $1,355,586 (86.3%) to $2,925,568 for the six months ended June 30, 2025209 - This was primarily driven by a net loss of $2,235,730, a decrease in accounts payable and accrued expenses of $593,700, and a decrease in deferred revenue of $36,051213 Net Cash Provided by Investing Activities Net cash provided by investing activities increased by 19.7% to $1,259,483 for the six months ended June 30, 2025, mainly from proceeds from the sale of short-term debt investments, partially offset by purchases - Net cash provided by investing activities increased by $207,615 (19.7%) to $1,259,483 for the six months ended June 30, 2025210 - This was primarily from proceeds of $1,315,653 from the sale of short-term debt investments, offset by $56,170 in purchases213 Net cash Provided by Financing Activities Net cash provided by financing activities increased by 39.6% to $2,093,958 for the six months ended June 30, 2025, driven by net proceeds from common stock and pre-funded warrant sales, and proceeds from warrant exercises - Net cash provided by financing activities increased by $593,852 (39.6%) to $2,093,958 for the six months ended June 30, 2025211 - This was due to $1,593,897 from the sale of common stock and pre-funded warrants, and $500,061 from the exercise of warrants213 Cash Requirements The Company anticipates sufficient cash and cash equivalents, along with short-term investments, to meet its obligations for at least the next twelve months, with no other material capital expenditure commitments beyond research and development agreements - The Company believes its current cash, cash equivalents, and short-term investments are sufficient to meet obligations for a minimum of twelve months212 - There are no other material commitments for capital expenditures beyond those for research and development agreements214 Liquidity Despite a net loss of $2,235,730 and cash used in operations of $2,925,568 for the six months ended June 30, 2025, the Company maintains positive working capital of $5,323,134, with $4,333,672 in cash and cash equivalents, which mitigates going concern doubts and ensures sufficient liquidity for the next twelve months - The Company reported a net loss of $2,235,730 and used $2,925,568 in cash from operations for the six months ended June 30, 2025215 - As of June 30, 2025, the Company had positive working capital of $5,323,134 and cash and cash equivalents of $4,333,672215 - This positive working capital mitigates substantial doubt about the Company's ability to continue as a going concern and provides sufficient cash for at least twelve months216 Off-Balance Sheet Arrangements - The Company has no off-balance sheet arrangements217 Critical Accounting Estimates Stock-Based Compensation Stock-based compensation is recognized in financial statements based on ASC 718, measuring the grant-date fair value of equity awards over the vesting period, with forfeitures recognized as they occur - Stock-based compensation is accounted for under ASC 718, requiring recognition of the cost of services received in exchange for equity instruments over the vesting period218 - The cost is measured based on the grant-date fair value of the award, and forfeitures are recognized as they occur218 Research and Development Research and development costs are expensed as incurred in accordance with ASC 730-10, with significant estimates made regarding the percentage of completion for certain projects - Research and development costs are expensed when incurred, following ASC 730-10219 - Significant estimates are made regarding the percentage of completion of certain research and development projects219 Recent Accounting Pronouncements The FASB issued ASU 2024-03, effective for fiscal years beginning after December 15, 2026, requiring more detailed disaggregation of expenses in the income statement. The Company does not expect this or other recent pronouncements to materially impact its consolidated financial statements - ASU 2024-03, effective for fiscal years beginning after December 15, 2026, requires more detailed disaggregation of expenses in the income statement220 - The Company does not expect the adoption of this new guidance or any other recently issued pronouncements to have a material impact on its consolidated financial statements220221 Item 3. Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, Silo Pharma, Inc. is not required to provide quantitative and qualitative disclosures about market risk - The Company is exempt from providing quantitative and qualitative disclosures about market risk as it is a 'smaller reporting company'222 Item 4. Controls and Procedures This section details the evaluation of the Company's disclosure controls and procedures and changes in internal control over financial reporting. The CEO and CFO determined that disclosure controls and procedures were effective as of June 30, 2025. Ongoing remediation efforts are being implemented to address previously identified material weaknesses, including enhancements to segregation of duties, monitoring controls, and bank reconciliation processes Evaluation of Disclosure Controls and Procedures - The CEO and CFO evaluated the effectiveness of disclosure controls and procedures as of June 30, 2025, and determined they were effective223 - Disclosure controls are designed to ensure timely recording, processing, summarizing, and reporting of information required by the Exchange Act223 Changes in Internal Control Over Financial Reporting - During the six months ended June 30, 2025, the Company continued implementing remedial actions to address previously identified material weaknesses224 - Remedial actions include enhancements to segregation of duties, monitoring controls, and bank reconciliation processes, along with reviewing and enhancing business policies224 - Other than these ongoing remediation efforts, there were no material changes in internal control over financial reporting224 PART II – OTHER INFORMATION Item 1. Legal Proceedings Silo Pharma, Inc. is not currently a party to any material legal proceedings and is unaware of any pending or threatened legal actions that could significantly impact its business, operating results, cash flows, or financial condition - The Company is not currently involved in any material legal proceedings226 - There are no known pending or threatened legal proceedings that are expected to have a material adverse effect on the Company's business or financial condition226 Item 1A. Risk Factors This section updates the risk factors from the Annual Report, primarily focusing on new risks associated with the Company's cryptocurrency treasury strategy. Key risks include potential adverse impacts from central bank digital currencies, the classification of digital assets as securities, the possibility of being deemed an investment company, regulatory developments in crypto markets, liquidity issues with digital assets, and security breaches or cyberattacks - New risk factors primarily relate to the Company's cryptocurrency treasury strategy228 - Risks include potential adverse impact from central bank digital currencies (CBDCs) and the possibility of digital assets being classified as 'securities' by regulators229230 - There is a risk of being deemed an 'investment company' under the 1940 Act, which could significantly impact business operations233237 - Digital assets are less liquid than cash and cash equivalents, posing risks during market instability or security breaches240242 Risks Relating to Investing in Digital Securities - The launch of central bank digital currencies (CBDCs) could reduce demand for private-sector cryptocurrencies229 - Any digital asset acquired by the Company may be classified as a 'security,' subjecting the Company to additional regulation and potential enforcement actions230232 - If deemed an investment company under the 1940 Act, restrictions could make it impractical to continue current business segments233237 - The Company faces risks from regulatory developments in crypto asset markets, which could adversely affect digital asset prices and the Company's common stock238239 - Digital assets are less liquid than cash, and security breaches or cyberattacks could lead to partial or total loss of digital assets240242 - The Company has limited history in generating staking revenues from digital assets and faces competition from other companies in this area246249 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section states that the Company had no unregistered sales of equity securities during the quarter ended June 30, 2025, and did not repurchase any common stock during the same period - No unregistered sales of equity securities occurred during the quarter ended June 30, 2025252 - The Company did not repurchase any common stock during the quarterly period ended June 30, 2025253 Item 3. Defaults Upon Senior Securities Silo Pharma, Inc. reported no defaults upon senior securities during the period - The Company reported no defaults upon senior securities254 Item 4. Mine Safety Disclosures This item is not applicable to Silo Pharma, Inc - Mine Safety Disclosures are not applicable to the Company255 Item 5. Other Information This section details other significant information, including the establishment of a cryptocurrency advisory board and the launch of a cryptocurrency treasury strategy in August 2025. It also notes that no directors or executive officers adopted, modified, or terminated Rule 10b5-1 trading arrangements, and the Company received a Nasdaq deficiency notice for not meeting the minimum bid price requirement Announcement of Cryptocurrency Treasury Strategy and Formation of Cypto Advisory Board - On August 4, 2025, the Board approved the establishment of a cryptocurrency advisory board, appointing Corwin Yu as the initial member256 - On August 5, 2025, the Company announced the launch of a cryptocurrency treasury strategy focused on leading digital assets like Bitcoin, Ethereum, and Solana256257 Director and Officer Trading Arrangements - No directors or executive officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025258 Nasdaq Minimum Bid Price Deficiency Notice - On June 27, 2025, the Company received a Nasdaq notice for non-compliance with the $1.00 minimum bid price requirement259 - The Company has 180 calendar days, until December 24, 2025, to regain compliance and may consider options like a reverse stock split259 Item 6. Exhibits This section lists all exhibits filed with the Form 10-Q, including various warrant forms, a stock purchase agreement, a lockup agreement, certifications from the Principal Executive and Financial Officers, and Inline XBRL documents - Exhibits include forms for Prefunded Warrants, Series A-1 and A-2 Warrants, and Placement Agent Warrants260 - A Stock Purchase Agreement and Lockup Agreement are also filed260 - Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Sarbanes-Oxley Act are included260 - Inline XBRL documents for the financial statements are provided260 SIGNATURES - The report is signed by Eric Weisblum, Chairman and Chief Executive Officer, and Daniel Ryweck, Chief Financial Officer, on August 13, 2025266