Company: SYRA
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-022023
Chunk: 90

Company: Syra Health Corp
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 2
Chunk 90
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 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 $1,169,951 of salaries and benefits during the nine months ended September 30, 2025, compared to $2,178,105
for the nine months ended September 30, 2024, a decrease of $1,008,154, or 46%. 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.

7

Professional
Fees

Professional
fees primarily consisted of expenses incurred from business development, accounting, legal fees, and consulting activities. We incurred
$580,691 of professional fees for the nine months ended September 30, 2025, compared to $489,839 for the nine months ended September
30, 2024, an increase of $90,852, or 19%. 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 $67,701
and $590,263 of research and development expenses for the nine months ended September 30, 2025 and 2024, respectively, a decrease of
$522,562, or 89%, 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 $828,741
of SG&A expenses during the nine months ended September 30, 2025, compared to $1,267,634 for the nine months ended September 30,
2024, a decrease of $438,893, or 35%. Our SG&A expenses decreased primarily due to our efforts to reduce overhead in 2025. SG&A
included $89,621 and