Company: SYRA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009279
Chunk: 69

Company: Syra Health Corp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 69
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 population health revenue, and $0 of behavioral
and mental health revenue, compared to net revenue during the three months ended March 31, 2024 comprised of $1,417,661 of healthcare
staffing services revenue, $333,006 of population health revenue, and $1,673 of behavioral and mental health revenue, an overall revenue
increase of $105,434, or 6%. 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 and 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 $1,268,618 of cost of services for the three months ended
March 31, 2025, compared to $1,452,561 for the three months ended March 31, 2024, a decrease of $183,943, or 13%. Our gross profit
was approximately 32% for the three months ended March 31, 2025, compared to approximately 17% for the three months ended March 31,
2024, an increase of approximately 15%. 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 three months ended March 31,
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