Silo Pharma(SILO) - 2025 Q4 - Annual Report

Financial Performance - Revenues for the years ended December 31, 2025 and 2024 were both $72,102, primarily from the Aikido License and Sublicense Agreement [311]. - Cost of revenues increased significantly from $5,838 in 2024 to $44,295 in 2025 due to accelerated amortization of license fees [312]. - The net loss for the year ended December 31, 2025 was $4,227,698, compared to a net loss of $4,392,880 in 2024, indicating a slight improvement [310]. - Operating expenses for 2025 were $4,308,469, a decrease from $4,771,958 in 2024, reflecting cost management efforts [310]. - Total operating expenses for the year ended December 31, 2025, were $4,308,469, a decrease of $463,489, or 9.7%, compared to $4,771,958 in 2024 [313]. - Net loss for the year ended December 31, 2025, was $4,227,698, or $0.50 per share, a decrease of $165,182, or 3.8%, from a net loss of $4,392,880, or $1.19 per share in 2024 [322]. - Working capital increased by $1,282,059, or 24%, to $6,737,542 as of December 31, 2025, compared to $5,455,483 in 2024 [324]. - Net cash used in operating activities increased by $827,425, or 21.6%, to $4,661,339 in 2025 from $3,833,914 in 2024 [326]. - Net cash provided by financing activities increased by $1,618,591, or 49.9%, to $4,860,219 in 2025 from $3,241,628 in 2024 [328]. - As of December 31, 2025, the company had $4,748,700 in cash and cash equivalents, along with $2,110,065 in short-term investments [323]. Research and Development - The company is developing four product candidates, including SPC-15 for PTSD and anxiety disorders, SP-26 for fibromyalgia, SPC-14 for Alzheimer's disease, and SPU-16 for CNS disorders [296]. - SPC-15 is designed as an intranasal treatment and is expected to qualify for the FDA's streamlined 505(b)(2) regulatory pathway, with a pre-IND meeting held in September 2024 [293]. - SP-26, a ketamine-based implant for chronic pain, is currently in preclinical research, with initial animal studies evaluating its dosage and time release [297]. - The global Alzheimer's therapeutics market is projected to exceed $30.8 billion by 2033, presenting a significant opportunity for SPC-14 [300]. - The company expects an increase in research and development activities as it develops existing and potentially acquires new product candidates [317]. Cost Management - Compensation expense decreased by $76,451, or 8.4%, to $830,322 in 2025 from $906,773 in 2024, primarily due to a reduction in executive bonuses [314]. - Professional fees decreased by $140,136, or 11.7%, to $1,058,609 in 2025 from $1,198,745 in 2024, mainly due to lower consulting and investor relation fees [315]. - Research and development expenses decreased by $207,327, or 8.7%, to $2,160,829 in 2025 from $2,368,156 in 2024, influenced by reduced study costs and consulting fees [316]. Stock and Financing Activities - A stock repurchase plan was authorized to repurchase up to $1 million of common stock, with a total of 355,710 shares repurchased for $644,234 during 2023 and 2024 [307]. Staking Activities - The Company recognized staking income from native staking activities amounting to $207 for the year ended December 31, 2025, reflected as other income [342]. - During the year ended December 31, 2025, no liquid staking rewards were received [344]. - The Company participates in native staking exclusively as a delegator, earning rewards based on its proportion of the total SOL staked [341]. - The Company’s impaired crypto assets are written down to their fair value at the time of impairment, with losses recognized in the consolidated statements of operations [339]. - Staking rewards on LsETH or mSOL are recognized only upon redemption, measured at the fair value of ETH or SOL at contract inception [345]. - The Company’s role in staking activities is as a Delegator, not as a principal to the block validation service [342]. - The Company’s liquid staking protocol allows for liquidity while earning staking rewards, with LsETH or mSOL received as receipt tokens [343]. - The Company’s staking rewards are not continuously reflected in token balances but realized separately upon redemption [345]. Accounting and Reporting - The Company does not expect the adoption of new accounting guidance to have a material impact on its consolidated financial statements [346]. - The Company does not provide market risk disclosures as a smaller reporting company [348].