Company: SYRA
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023235
Chunk: 82

Company: Syra Health Corp
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 2
Chunk 82
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 benefits and certain other employee-related costs of our contract
service employees while they worked on contract assignments. We incurred $1,193,304 of cost of services for the three months ended June
30, 2025, compared to $1,619,674 for the three months ended June 30, 2024, a decrease of $426,370, or 13%. Our gross profit was approximately
39% for the three months ended June 30, 2025, compared to approximately 18% for the three 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.

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 $326,354 of salaries and benefits during the three months ended June 30, 2025, compared to $847,064
for the three months ended June 30, 2024, a decrease of $520,710, or 61%. 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
$164,939 of professional fees for the three months ended June 30, 2025, compared to $141,456 for the three months ended June 30, 2024,
an increase of $23,483, or 17%. 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.

5

Research
and Development Expenses

Research
and development expenses primarily consist of consulting expenses incurred to develop our technology-based solutions. We incurred $29,712
and $277,894 of research and development expenses for the three months ended June 30, 2025 and 2024, respectively, a decrease of $248,182,
or 89%, due to a decrease in consulting expenses incurred to develop our technology-based solutions.

Selling,
General and Administrative