Company: SYRA
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001641172-25-023235
Chunk: 28

Company: Syra Health Corp
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 1
Chunk 28
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 $23,482, or 1%. The decrease in healthcare workforce revenue
was due to fewer new customer acquisitions and lower renewal value on our FSSA (NeuroDiagnostic Institute contract in January 2025,
which runs through June 2026 and has a ceiling value of approximately $1,480,000). Population health revenues increased in 2025 due
to additional services provided to state departments and other customers. We depend heavily on
state, local and county government budgets for our revenue. In 2025, the United States federal government began pausing or
terminating numerous spending programs that potentially fund those programs and institutions that are our 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 $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 redund