Company: SYRA
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023235
Chunk: 68

Company: Syra Health Corp
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 8
Chunk 68
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 customers. As such, we
have begun to see delays in new contract awards, or cancellations of previous requests for proposals. These factors, and the
possibility of further spending reviews and cancellations are expected to negatively affect the quantity and time of our revenue,
results of operations and cash flows in the near term.

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 worked on contract assignments. We incurred $2,461,922 of cost of services for the six months ended June
30, 2025, compared to $3,192,727 for the six months ended June 30, 2024, a decrease of $730,805, or 23%. Our gross profit was approximately
35% for the six months ended June 30, 2025, compared to approximately 14% for the six months ended June 30, 2024, an increase of approximately
21%. Our cost of services decreased primarily due to a decrease in labor costs, and decreased consulting costs associated with a slight
change in 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