Company: SYRA
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001493152-25-009873
Chunk: 507

Company: Syra Health Corp
Filing Date: 2025-03-11
Form: 10-K
Item: Item 3
Chunk 507
---
 to an increase in labor costs associated with the increased volume of contracts, and
increased consulting costs associated with a slight change in service mix from healthcare workforce services to project-based population
health services that carry better margins.

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 $2,718,743 of salaries and benefits during the year ended December 31, 2024, compared to $2,292,295
for the year ended December 31, 2023, an increase of $426,448, or 19%. Salaries and benefits increased in 2024 as we supported our increased
operations and added office personnel following our IPO process. In an effort to reduce its operating costs, the Company, effective July
1, 2024, instituted a 25% payroll reduction for its executive officers for a period of five months. Salaries and benefits included $629,643
and $535,909 of officer compensation for the years ended December 31, 2024 and 2023, respectively.

Professional
Services

Professional
services primarily consist of expenses incurred from business development, accounting, legal fees, and consulting activities. We incurred
$606,051 of professional services for the year ended December 31, 2024, compared to $586,463 for the year ended December 31, 2023, an
increase of $19,588, or 3%. Professional fees increased in 2024 due increased legal and other professional costs related to the Company’s
regulatory filings.

Research
and Development Expenses

Research
and development expenses primarily consist of consulting expenses incurred to develop our technology-based solutions. We incurred $585,146
and $240,048 of research and development expenses for the years ended December 31, 2024 and 2023, respectively, related to continued
development of the Company’s Syrenity application for its Behavioral and Mental Health services.

Selling,
General and Administrative Expenses

SG&A
primarily consists of marketing, rent, office, insurance, travel and repair and maintenance expenses incurred. We incurred $1,445,170
of SG&A expenses during the year ended December 31, 2024, compared to $1,131,922 for the year ended December 31, 2023, an increase
of $313,248, or 28%. Our SG&A expenses increased