Company: SYRA
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001493152-25-009873
Chunk: 613

Company: Syra Health Corp
Filing Date: 2025-03-11
Form: 10-K
Item: Item 5
Chunk 613
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 acquisitions and additions to
existing contracts. Population health revenues increased in 2024 due to additional services provided to state departments and other customers.
The decline in digital health revenues of $146,250 was due to phased transition from implementation to maintenance and operational support
services. On January 31, 2025, with the completion of the Company’s contract FSSA (NeuroDiagnostic Institute), the Company expects
a decline in revenue generation for healthcare workforce. A new contract from FSSA (NeuroDiagnostic Institute) has been executed with
a contract end date of June 30, 2025 with a ceiling value of approximately $1,480,000 in revenue.

Cost
of Services

Our
cost of services included wages and related payroll taxes, employee benefits and certain other employee-related costs of our contract
service employees while they work on contract assignments. We incurred $6,329,119 of cost of services for the year ended December 31,
2024, compared to $4,103,244 for the year ended December 31, 2023, an increase of $2,225,875, or 54%. Our gross profit was approximately
21% for the year ended December 31, 2024, compared to approximately 26% for the year ended December 31, 2023, a decrease of approximately
5%. Our cost of services increased primarily due to an increase in labor costs associated with the increased volume of contracts, and
increased consulting costs associated with a slight change in service mix from healthcare workforce services to project-based population
health services that carry better margins.

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 $2,718,743 of salaries and benefits during the year ended December 31, 2024, compared to $2,292,295
for the year ended December 31, 2023, an increase of $426,448, or 19%. Salaries and benefits increased in 2024 as we supported our increased
operations and added office personnel following our IPO process. In an effort to reduce its operating costs, the Company, effective July
1, 2024, instituted a 25% payroll reduction for its executive officers for a period of five months. Salaries and benefits included $629,643
and $535,909 of officer compensation for the years ended December 31,