Company: SYRA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009279
Chunk: 70

Company: Syra Health Corp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 70
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&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 $507,207
of salaries and benefits during the three months ended March 31, 2025, compared to $736,303 for the three months ended March 31, 2024,
a decrease of $229,096, or 31%. 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 $224,026 of professional fees for the
three months ended March 31, 2025, compared to $194,580 for the three months ended March 31, 2024, an increase of $29,446, or 15%. 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 $37,173 and $277,548
of research and development expenses for the three months ended March 31, 2025 and 2024, respectively, a decrease of $240,375, or 87%,
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 $287,287 of SG&A expenses during the three months ended
March 31, 2025, compared to $522,757 for the three months ended March 31, 2024, a decrease of $235,470, or 45%. Our SG&A expenses
decreased primarily due to our efforts to reduce overhead in 2025. SG&A included $33,626 and $32,132 of rent incurred in both periods
from STVentures, LLC, an entity beneficially owned by our principal owners, our management team and their affiliates, $