Company: SYRA
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-022023
Chunk: 86

Company: Syra Health Corp
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 2
Chunk 86
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1,133,430 of cost of services for the three
months ended September 30, 2025, compared to $1,585,038 for the three months ended September 30, 2024, a decrease of $451,608, or
9%. Our gross profit was approximately 33% for the three months ended September 30, 2025, compared to approximately 30% for the
three months ended September 30, 2024, an increase of approximately 3%. Our cost of services decreased primarily due to a decrease
in labor costs from lower workforce contracts, and decreased consulting costs associated with a change in service mix from
healthcare workforce services to project-based population health and digital health services that carry better margins.

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 $336,390 of salaries and benefits during the three months ended September 30, 2025, compared to $594,738
for the three months ended September 30, 2024, a decrease of $258,348, or 43%. 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.

5

Professional
Fees

Professional
fees primarily consisted of expenses incurred from business development, accounting, legal fees, and consulting activities. We incurred
$191,726 of professional fees for the three months ended September 30, 2025, compared to $153,803 for the three months ended September
30, 2024, an increase of $37,923, or 25%. 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.

Research
and Development Expenses

Research
and development expenses primarily consist of consulting expenses incurred to develop our technology-based solutions. We incurred $816
and $34,821 of research and development expenses for the three months ended September 30, 2025 and 2024, respectively, a decrease of
$34,005, or 98%, 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