Achieved Net Revenue of $2.3 million, ~42% Growth Over the Prior Year
Quarter
Gross Margins Increased Following Shift in
Operational Strategy
Net Loss Narrowed to $417,535 ($0.06 per
share), a Significant Improvement from the $1.39 million ($0.21 per share) Net Loss in Q2 of 2024
Aiming to Attain Profitability in 2025 through
Targeted Revenue Growth and Cost-Efficiency Measures
Conference call will be held today,
Tuesday, October 29th at
9:00 AM ET
CARMEL,
Ind., Oct. 29, 2024 /PRNewswire/ -- Syra Health
Corp. (NASDAQ: SYRA), ("Syra Health" or the "Company") a healthcare
technology company driving better health through impactful,
innovative solutions, announced today its financial results for the
third quarter ended September 30, 2024.
Financial Highlights – 2024 Fiscal Third Quarter
Year over Year – Q3 2024 vs. Q3 2023
- Achieved Net Revenue of $2.3
million, ~42% growth compared to 3Q23.
- Population Health continues to grow, driven by demand for our
public health services with revenues up 36%, alongside strong
contributions from legacy Healthcare Workforce services with
revenues up 54% compared to 3Q23.
- Gross profit margin was 30% in 3Q24, compared to 35% in 3Q23,
reflecting a milestone-based revenue recognition from our first
digital health product in 3Q23.
- Cash balance of $2.7 million at
end of 3Q24 with no long-term debt, providing an estimated capital
runway of approximately two years.
Third Quarter 2024 vs. Second Quarter 2024
- Total Revenue increased 14.4% compared to 2Q24.
- Gross profit margin was 29.7% in 3Q24 compared to 17.8% in
2Q24, an increase of 1190 bps.
- Net loss for 3Q24 showed a 69% reduction compared to 2Q24
demonstrating a consistent move toward profitability.
- Net loss per share decreased to $(0.06) in 3Q24 from $(0.21) in 2Q24.
- Total operating expenses in 3Q24 decreased 37% compared to
2Q24.
Recent Operational Highlights
- Successfully implemented cost-saving initiatives for
sustainable impact
- Achieved a 37% overall reduction in operating expenses in 3Q24
compared to 2Q24.
- SG&A expenses decreased by 37% in 3Q24 compared to
2Q24.
- Realized a 30% decrease in salaries and benefits costs in 3Q24
compared to 2Q24.
- Launched Syrenity, a mental health app built on clinically
proven practices and ethical, compliant AI technology. Targeting a
broad customer base—including large employers, academic
institutions, health plans, and direct consumers—Syrenity taps into
national and global markets. This product diversifies revenue
streams and bolsters the Company's standing in the growing mental
health tech sector, driving sustainable growth.
- Several government projects across multiple states are
advancing into active implementation within high-margin business
units. Launched the implementation of a four-year, $5.8 million training contract for healthcare
professionals throughout Indiana,
with revenue expected to start in 4Q24.
- Secured healthcare workforce contracts across several states,
including Delaware, Florida, and Kansas adding revenues to our legacy service
line.
- Completed a capital raise, generating gross proceeds of
$2.1 million to bolster our financial
flexibility and further support growth initiatives, including the
product roadmap and the development of Syra's ethical, explainable,
and responsible AI solutions in healthcare.
Management Commentary
Dr. Deepika Vuppalanchi, CEO of
Syra Health, said, "We are excited to report year-over-year growth
of 42%. Our commitment to increasing revenue and improving profit
margins is driven by our strong team and a track record of success
stories. We are laser-focused on expanding our portfolio of
high-revenue clients in high-margin business units by delivering
compelling value propositions tailored to meet their specific
needs. Looking ahead, we anticipate that our mental health product,
Syrenity, will attract new customers in the robust national and
global mental and behavioral health markets, further diversifying
our revenue streams.
Additionally, our extensive cost-saving strategy has yielded
significant reductions in expenses across the board with a 69%
decrease in net loss quarter-over-quarter. With our strong revenue
growth, a robust sales pipeline spanning both public and private
sectors, effective cost optimization strategies, and a steadfast
commitment to innovative solutions, we are confident in our growth
trajectory. We are determined to achieve profitability in 2025 and
capitalize on the exciting opportunities ahead."
Q3 2024 Financial Results
Revenue for the quarter ended September
30, 2024, was $2.3 million,
compared to the $1.6 million reported
in the third quarter of 2023. Strong growth was driven by
Population Health which grew 36% year over year, and Healthcare
Workforce, which increased 54% year over year.
Gross profit margin was 30% in the third quarter of 2024,
compared to 35% the previous year, attributed to revenue
recognition in the third quarter of 2023 from our first
milestone-based digital health product, Syrabot. With maintenance
and operations for this project continuing for an additional three
years, we believe we are well-positioned for future growth as we
expand our digital health offerings and optimize our revenue
streams.
Total operating expenses for the third quarter of 2024 were
$1.1 million compared to $0.9 million in the third quarter of 2023, an
increase of 22.2%.
Net loss for the third quarter of 2024 was $(417,535) compared to $(354,376) in the third quarter of 2023.
Total Revenue in the third quarter of 2024 was $2.3 million representing a 14.4% increase
compared to the second quarter of 2024.
Gross profit margin in the third quarter of 2024 was 29.7%,
compared to 17.8% in the second quarter of 2024. The 1190-basis
point increase in gross margins quarter-over-quarter was primarily
driven by cost-saving initiatives and enhanced operational
efficiency, achieved by adopting a lean approach and reducing
redundancies.
Total operating expenses in the third quarter of 2024 decreased
37% to $1.1 million compared to
$1.74 million in the second quarter
of 2024 due to a strategic focus on streamlining our operations and
optimizing our workforce with a determination to reduce our cost
structure.
Net loss for the third quarter of 2024 was $(417,535), a decrease of 69% from the net loss
of $(1.4 million) in the second
quarter of 2023. This improvement was due to restructuring efforts
that reduced redundancies and increased operational efficiencies,
providing a solid foundation to support ongoing business
operations.
Cash on hand on September 30,
2024, was $2.7 million.
Conference Call
Management will hold a conference call to discuss the fiscal
year's financial results at 9:00 am ET on October 29, 2024.
Interested parties can listen via a live webcast, from the link
available in the Investor Relations section of the Company's
website at
https://ir.syrahealth.com/presentations/q3-2024-earnings-call.
A replay will be available after the call, in the Investor
Relations section of the Company's website at
https://ir.syrahealth.com/presentations/q3-2024-earnings-call.
ABOUT SYRA HEALTH
Syra Health leads the charge in addressing the toughest
challenges in healthcare, from behavioral and mental health to
population health, digital transformation, health education, and
workforce development. Our technology-driven solutions focus on
prevention, accessibility, and affordability, ensuring that every
patient and provider gets the support they need. We proudly partner
with payers, providers, life sciences organizations, academic
institutions, and government entities to advance healthcare and
improve outcomes. Learn more about our mission and services
at www.syrahealth.com.
Forward-Looking Statements
Statements in this press release about future expectations,
plans, and prospects, as well as any other statements regarding
matters that are not historical facts, may constitute
"forward-looking statements." These statements include but are not
limited to, statements relating to the expected use of proceeds,
the Company's operations and business strategy, and the Company's
expected financial results. The words "anticipate," "believe,"
"continue," "could," "estimate," "expect," "intend," "may," "plan,"
"potential," "predict," "project," "should," "target," "will,"
"would" and similar expressions are intended to identify
forward-looking statements, although not all forward-looking
statements contain these identifying words. The forward-looking
statements contained in this press release are based on
management's current expectations and are subject to substantial
risks, uncertainty, and changes in circumstances. Investors should
read the risk factors set forth in our Form 10-K for the year ended
December 31, 2023, and other periodic
reports filed with the Securities and Exchange Commission. Any
forward-looking statements contained in this press release speak
only as of the date hereof, and, except as required by federal
securities laws, the Company specifically disclaims any obligation
to update any forward-looking statements, whether as a result of
new information, future events, or otherwise.
|
SYRA HEALTH
CORP.
CONDENSED BALANCE SHEETS
|
|
|
September
30,
|
|
|
December
31,
|
|
|
|
2024
|
|
|
2023
|
|
|
|
(Unaudited)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
2,697,459
|
|
|
$
|
3,280,075
|
|
|
Accounts receivable,
net
|
|
|
884,445
|
|
|
|
1,060,634
|
|
|
Accounts receivable
related party
|
|
|
-
|
|
|
|
50,614
|
|
|
|
|
|
|
|
|
|
|
|
Other current
assets
|
|
|
482,990
|
|
|
|
389,787
|
|
|
Total current
assets
|
|
|
4,064,894
|
|
|
|
4,781,110
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
|
|
34,625
|
|
|
|
78,974
|
|
|
Right-of-use
asset
|
|
|
325,491
|
|
|
|
63,199
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
4,425,010
|
|
|
$
|
4,923,283
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
212,931
|
|
|
$
|
462,991
|
|
|
Accrued
expenses
|
|
|
309,606
|
|
|
|
198,978
|
|
|
Deferred
revenue
|
|
|
6,108
|
|
|
|
-
|
|
|
Current portion of
operating lease liability, related party
|
|
|
108,939
|
|
|
|
63,199
|
|
|
Notes
payable
|
|
|
240,221
|
|
|
|
184,904
|
|
|
Total current
liabilities
|
|
|
877,805
|
|
|
|
910,072
|
|
|
|
|
|
|
|
|
|
|
|
Non-current portion of
operating lease liability, related party
|
|
|
216,552
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
1,094,357
|
|
|
|
910,072
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
(deficit):
|
|
|
|
|
|
|
|
|
|
Preferred stock, $0.001
par value, 10,000,000 shares authorized, no
shares designated, issued and outstanding
|
|
|
-
|
|
|
|
-
|
|
|
Class A common stock,
$0.001 par value, 100,000,000 shares
authorized, 8,973,774 and 5,588,298 shares issued and
outstanding
at September 30, 2024 and December 31, 2023,
respectively
|
|
|
8,974
|
|
|
|
5,588
|
|
|
Convertible class B
common stock, $0.001 par value, 5,000,000
shares authorized, 833,334 shares issued and outstanding
|
|
|
833
|
|
|
|
833
|
|
|
|
|
|
|
|
|
|
|
|
Additional paid-in
capital
|
|
|
11,640,642
|
|
|
|
9,071,745
|
|
|
Accumulated
deficit
|
|
|
(8,319,796)
|
|
|
|
(5,064,955)
|
|
|
Total stockholders'
equity (deficit)
|
|
|
3,330,653
|
|
|
|
4,013,211
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity (deficit)
|
|
$
|
4,425,010
|
|
|
$
|
4,923,283
|
|
|
SYRA HEALTH
CORP.
CONDENSED STATEMENTS OF
OPERATIONS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
|
For the Nine Months
Ended
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
2,253,336
|
|
|
$
|
1,581,344
|
|
|
$
|
5,975,357
|
|
|
$
|
3,748,943
|
|
|
Cost of
services
|
|
|
1,585,038
|
|
|
|
1,026,803
|
|
|
|
4,777,765
|
|
|
|
2,919,087
|
|
|
Gross profit
|
|
|
668,298
|
|
|
|
554,541
|
|
|
|
1,197,592
|
|
|
|
829,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
|
|
594,738
|
|
|
|
592,241
|
|
|
|
2,178,105
|
|
|
|
1,612,605
|
|
|
Professional
services
|
|
|
153,803
|
|
|
|
58,875
|
|
|
|
489,839
|
|
|
|
424,379
|
|
|
Research and
development expenses
|
|
|
34,821
|
|
|
|
-
|
|
|
|
590,263
|
|
|
|
-
|
|
|
Selling, general and
administrative expenses
|
|
|
288,305
|
|
|
|
234,084
|
|
|
|
1,147,142
|
|
|
|
657,904
|
|
|
Depreciation
|
|
|
25,541
|
|
|
|
12,357
|
|
|
|
55,460
|
|
|
|
36,413
|
|
|
Total operating
expenses
|
|
|
1,097,208
|
|
|
|
897,557
|
|
|
|
4,460,809
|
|
|
|
2,731,301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
(428,910)
|
|
|
|
(343,016)
|
|
|
|
(3,263,217)
|
|
|
|
(1,901,445)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
13,641
|
|
|
|
2,820
|
|
|
|
18,448
|
|
|
|
2,826
|
|
|
Interest
expense
|
|
|
(2,266)
|
|
|
|
(14,180)
|
|
|
|
(10,072)
|
|
|
|
(44,449)
|
|
|
Total other income
(expense)
|
|
|
11,375
|
|
|
|
(11,360)
|
|
|
|
8,376
|
|
|
|
(41,623)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(417,535)
|
|
|
$
|
(354,376)
|
|
|
$
|
(3,254,841)
|
|
|
$
|
(1,943,068)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares
outstanding - basic and diluted
|
|
|
7,264,768
|
|
|
|
4,360,426
|
|
|
|
6,789,209
|
|
|
|
4,380,267
|
|
|
Net loss per common
share - basic and
diluted
|
|
$
|
(0.06)
|
|
|
$
|
(0.08)
|
|
|
$
|
(0.48)
|
|
|
$
|
(0.44)
|
|
|
SYRA HEALTH
CORP.
CONDENSED STATEMENTS OF CASH
FLOWS
(Unaudited)
|
|
|
|
2024
|
|
|
2023
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(3,254,841)
|
|
|
$
|
(1,943,068)
|
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
55,460
|
|
|
|
36,413
|
|
|
Bad debt
expense
|
|
|
-
|
|
|
|
9,922
|
|
|
Common stock issued for
services
|
|
|
74,647
|
|
|
|
-
|
|
|
Non-cash lease
expense
|
|
|
63,199
|
|
|
|
90,162
|
|
|
Stock-based
compensation, stock options
|
|
|
28,486
|
|
|
|
3,669
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
176,189
|
|
|
|
136,324
|
|
|
Accounts receivable,
related party
|
|
|
50,614
|
|
|
|
-
|
|
|
Other current
assets
|
|
|
285,456
|
|
|
|
58,979
|
|
|
Accounts
payable
|
|
|
(250,060)
|
|
|
|
500,391
|
|
|
Accounts payable,
related parties
|
|
|
-
|
|
|
|
18,221
|
|
|
Deferred
revenue
|
|
|
6,108
|
|
|
|
141,644
|
|
|
Accrued
expenses
|
|
|
110,628
|
|
|
|
35,479
|
|
|
Operating lease
liability
|
|
|
(63,199)
|
|
|
|
(90,162)
|
|
|
Net cash used in
operating activities
|
|
|
(2,717,313)
|
|
|
|
(1,002,026)
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(11,111)
|
|
|
|
(15,251)
|
|
|
Net cash used in
investing activities
|
|
|
(11,111)
|
|
|
|
(15,251)
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of
common stock and exercise of warrants
|
|
|
2,469,150
|
|
|
|
-
|
|
|
Payment of deferred
offering costs
|
|
|
-
|
|
|
|
(589,059)
|
|
|
Proceeds received from
line of credit
|
|
|
-
|
|
|
|
300,000
|
|
|
Repayments on line of
credit
|
|
|
-
|
|
|
|
(750,397)
|
|
|
Proceeds received from
advances, related party
|
|
|
-
|
|
|
|
1,295,010
|
|
|
Repayments on advances,
related party
|
|
|
-
|
|
|
|
(678,611)
|
|
|
Repayments on notes
payable
|
|
|
(323,342)
|
|
|
|
-
|
|
|
Proceeds received from
convertible notes payable
|
|
|
-
|
|
|
|
1,455,000
|
|
|
Net cash provided by
financing activities
|
|
|
2,145,808
|
|
|
|
1,031,943
|
|
|
|
|
|
|
|
|
|
|
|
NET CHANGE IN CASH AND
CASH EQUIVALENTS
|
|
|
(582,616)
|
|
|
|
14,666
|
|
|
CASH AND CASH
EQUIVALENTS AT BEGINNING OF
PERIOD
|
|
|
3,280,075
|
|
|
|
3,344
|
|
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
|
$
|
2,697,459
|
|
|
$
|
18,010
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
INFORMATION:
|
|
|
|
|
|
|
|
|
|
Interest
paid
|
|
$
|
10,072
|
|
|
$
|
28,533
|
|
|
Income taxes
paid
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
NON-CASH INVESTING AND
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Initial recognition of
right-of-use asset and lease liability
|
|
$
|
325,491
|
|
|
$
|
-
|
|
|
Prepaid asset financed
with note payable
|
|
$
|
378,659
|
|
|
$
|
-
|
|
Contacts:
For Investor or Media Inquiries:
Priya Prasad
COO & CFO
Syra Health Corp.
463-345-8963
priyap@syrahealth.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/syra-health-delivers-third-quarter-2024-financial-results-302289581.html
SOURCE Syra Health