Company: SYRA
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023235
Chunk: 86

Company: Syra Health Corp
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 2
Chunk 86
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 service mix from healthcare workforce services to project-based population health and digital health services that carry better
margins. In addition, the cost of services for the six months ended June 30, 2024 above compared to as reported in the prior period reflects
a $120,000 reclassification of expenses from cost of services to selling, general, and administrative (SG&A) expenses. This reclassification
was made to more accurately align vendor-related costs with their functional purpose and streamlining the categorization of expenses.

Operating
Expenses

Salaries
and Benefits

Our
salaries and benefits include wages and related payroll taxes, employee benefits and certain other employee-related costs of our management
and office personnel. We incurred $833,561 of salaries and benefits during the six months ended June 30, 2025, compared to $1,583,367
for the six months ended June 30, 2024, a decrease of $749,806, or 47%. Salaries and benefits decreased as our headcount decreased in
2025, and due to a strategic focus on streamlining our operations by reducing redundancies and optimizing our workforce.

Professional
Fees

Professional
fees primarily consisted of expenses incurred from business development, accounting, legal fees, and consulting activities. We incurred
$388,965 of professional fees for the six months ended June 30, 2025, compared to $336,036 for the six months ended June 30, 2024, an
increase of $52,929, or 16%. Professional fees increased in 2025 due to increased legal related costs from a settlement of an employment
claim in the current period, and increased accounting and audit fees.

7

Research
and Development Expenses

Research
and development expenses primarily consist of consulting expenses incurred to develop our technology-based solutions. We incurred $66,885
and $555,442 of research and development expenses for the six months ended June 30, 2025 and 2024, respectively, a decrease of $488,557,
or 88%, due to a decrease in consulting expenses incurred to develop our technology-based solutions.

Selling,
General and Administrative Expenses

SG&A
primarily consisted of marketing, rent, office, insurance, travel and repair and maintenance expenses incurred. We incurred $576,357
of SG&A expenses during the six months ended June 30, 2025, compared to $858,837 for the six months ended June 30, 202