Conference call will be held today,
Tuesday, November 14 at 9:00am ET
CARMEL,
Ind., Nov. 14, 2023 /PRNewswire/ -- Syra Health
Corp. (NASDAQ: SYRA), ("Syra Health" or the "Company") a healthcare
company addressing some of healthcare's most significant challenges
by providing innovative services and technology solutions, today
announced its financial results for the third quarter of 2023 for
the period ended September 30, 2023.
Q3 2023 Financial Highlights
- Revenue of $1.58 million,
compared to $1.51 million in Q3 2022,
an increase of 4%.
- Digital Health, driven by sales of the Company's SyraBot
product, had revenue of $131,356,
marking its first period of revenues.
- Population Health and Health Education, driven by epidemiology
and reporting services, saw revenues of $328,750, a 400% increase, compared to
$66,000 in Q3 2022.
- Healthcare Workforce had revenue of $1.1
million in Q3 2023, in line with previous quarters.
- Gross profit margin of 35.1%, compared to 27.3% in Q3
2022.
- Net loss of $(354,376), compared
to $(354,435) in Q3 2022.
- Adjusted EBITDA (see table A) was $(329,580), versus $(341,760) in Q3 2022.
Recent Operational Highlights
- Secured a five-year $4.75 million
contract with the District of
Columbia's Department of Behavioral Health (DBH), to support
DBH's mental health initiatives, including its Supported Employment
Program and Comprehensive Psychiatric Emergency Program.
- Received a two-year contract extension, worth up to
$636,000, with the Indiana Division
of Mental Health and Addiction and Family and Social Services
Administration to chair and manage the State of Indiana's Epidemiological Outcomes
Workgroup.
- Formed a strategic agreement with Maricopa County Department of
Public Health in Arizona to train
over 100 public health staff in the county.
- Launched Syrenity, a mental health product that proactively
identifies the negative factors impacting mental health and
integrates telehealth for mental health prevention and
treatment.
- Announced a strategic agreement with E&I Cooperative
Services (E&I). Syra's goal is to provide mental health
services, including telehealth via Syrenity to E&I's 6,000 plus
college and university members nationwide.
- Launched CarePlus, an electronic medical record (EMR) system
designed specifically for small to mid-sized healthcare
organizations. CarePlus is an easy-to-use, secure, and scalable
platform that allows for streamlining clinical workflows and
integrating labs, radiology, and telehealth.
- In October 2023, closed on
$6.7 million IPO financing and began
trading on the NASDAQ.
Management Commentary
Dr. Deepika Vuppalanchi, CEO of
Syra Health, said, "Our current and future pipeline of contracts is
expanding, and we expect to announce contract wins as they are
solidified. I look forward to building upon our recent successes to
fulfill our promise of improving healthcare while driving value for
our shareholders."
Sandeep Allam, Executive Chairman
and President of Syra Health, said, "We completed our successful
initial public offering in October
2023. During the third quarter, we also saw our first
revenues from our Digital Health business unit and expect revenue
growth to continue as several products are launched. We also
saw growth in our Population Health and Health Education Business
Units. We are pleased with our third quarter performance and all
that we have accomplished. We look forward to our continued growth
and innovation next quarter and beyond."
Q3 2023 Financial Results
Revenue for the quarter ended September
30, 2023, was $1.58 million,
compared to the $1.51 million
reported in the third quarter of 2022. Strong growth in the Digital
Health, Population Health, and Health Education business units was
offset by our Healthcare Workforce.
Gross profit for the quarter ended September 30, 2023, was $554,541, reflecting a gross profit margin of
35.1%, compared to $413,809 million,
or a gross profit margin of 27.3%, in the third quarter of 2022.
The increase in gross margins was due to a slight shift from
healthcare staffing services to medical communication and digital
health services that carry better margins.
Total operating expenses for the third quarter of 2023 increased
18% to $897,557, compared to
$760,600 in the third quarter of
2022. Salaries and benefits expenses increased 31%, compared to the
third quarter of 2022 due to increased operations and added office
personnel to support the Company's IPO process. Professional fees
declined 62%, compared to the third quarter of 2022 due to
decreased reliance on outsourced professional fees in connection
with the prior period audit in preparation for the Company's IPO.
Selling, general and administrative expenses increased 56%,
compared to the third quarter of 2022 due to increased operations.
Depreciation expense was $14,180 in
the third quarter of 2023, compared to $3,880 for the same period last year, reflecting
expanded office space.
Net Loss for the quarter ended September
30, 2023, was $(354,376),
compared to $(354,535) in the third
quarter of 2022.
Adjusted EBITDA (see Table A) for the quarter ended September 30, 2023, was $(329,580), compared to $(341,760) in the third quarter of 2022.
Cash on hand September 30, 2023,
was $18,010. Upon the closing of its
IPO on October 3, 2023, the Company
collected net proceeds of $4.7M.
Conference Call
Management will hold a conference call to discuss the quarter's
financial results at 9:00am ET on November 14, 2023.
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 or
via https://app.webinar.net/QnrqX7vAKVL.
A replay will be available after the call, in the Investor
Relations section of the Company's website at
https://ir.syrahealth.com/presentations .
Non-GAAP Financial Measures
In addition to financial results reported in accordance with
accounting principles generally accepted in the United States of America ("GAAP"), we have
provided the following non-GAAP financial measure in this release
and the accompanying tables: adjusted EBITDA. We use these non-GAAP
financial measures internally to facilitate period-to-period
comparisons and analysis of our operating performance and
liquidity, and believe it is useful to investors as a supplement to
GAAP measures in analyzing, trending and benchmarking the
performance and value of our business. However, this measure is not
intended to be a substitute for those reported in accordance with
GAAP. We define Adjusted EBITDA as net earnings (loss) before (i)
interest income, (ii) interest expense, (iii) change in allowance
for doubtful accounts, (iv) depreciation, and (v) non-cash expenses
relating to share-based payments recognized under ASC Topic 718.
These measures may be different from non-GAAP financial measures
used by other companies, even when similar terms are used to
identify such measures. For reconciliations of historical non-GAAP
financial measures to the most comparable financial measures under
GAAP, see Table A accompanying this release.
SYRA HEALTH
CORP.
|
RECONCILIATION OF
ADJUSTED EBITDA TO NET LOSS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Net loss
|
$
(354,376)
|
|
$
(354,535)
|
|
$(1,943,068)
|
|
$(1,505,533)
|
Add back:
|
|
|
|
|
|
|
|
Interest
income
|
(2,820)
|
|
(35)
|
|
(2,826)
|
|
(54)
|
Interest
expense
|
14,180
|
|
7,779
|
|
44,449
|
|
16,641
|
Change in allowance
for doubtful accounts
|
-
|
|
-
|
|
986
|
|
-
|
Depreciation
|
12,357
|
|
3,880
|
|
36,413
|
|
4,791
|
Stock based
compensation
|
1,079
|
|
1,151
|
|
3,669
|
|
511,151
|
Adjusted
EBITDA
|
$
(329,580)
|
|
$
(341,760)
|
|
$(1,860,377)
|
|
$
(973,004)
|
ABOUT SYRA HEALTH
Syra Health is a healthcare company addressing some of healthcare's
most significant challenges by providing innovative services and
technology solutions. Syra Health specializes in behavioral
and mental health, digital health, and population health.
Syra Health's solutions are centered on prevention, improved
access, and affordable care. For more information, please
visit 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.' 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. Investors should read
the risk factors set forth in our Form 10-Q for the quarter ended
September 30, 2023, and in our
registration statement on Form S-1 and other periodic reports filed
with the Securities and Exchange Commission. Actual results
may differ materially from those indicated by such forward-looking
statements as a result of various important factors, including the
uncertainties related to market conditions. Any forward-looking
statements contained in this press release speak only as of the
date hereof, and Syra Health specifically disclaims any obligation
to update any forward-looking statement, whether as a result of new
information, future events, or otherwise.
For more information, please contact:
Media:
Syra Health
Communications & Marketing Director
Christine Drury
317-385-9227
christined@syrahealth.com
Investors:
Ben Shamsian
Vice President
Lytham Partners, LLC
646-829-9701
shamsian@lythampartners.com
SYRA HEALTH
CORP.
CONDENSED BALANCE
SHEETS
|
|
|
September
30,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
ASSETS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
18,010
|
|
|
$
|
3,344
|
|
Accounts receivable,
net
|
|
|
1,054,851
|
|
|
|
1,201,097
|
|
Other current
assets
|
|
|
163,323
|
|
|
|
222,302
|
|
Total current
assets
|
|
|
1,236,184
|
|
|
|
1,426,743
|
|
|
|
|
|
|
|
|
|
|
Deferred offering
costs
|
|
|
1,185,177
|
|
|
|
596,118
|
|
Property and equipment,
net
|
|
|
91,331
|
|
|
|
112,493
|
|
Right-of-use
asset
|
|
|
94,126
|
|
|
|
184,288
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
2,606,818
|
|
|
$
|
2,319,642
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
932,779
|
|
|
$
|
432,388
|
|
Accounts payable,
related parties
|
|
|
21,421
|
|
|
|
3,200
|
|
Accrued
expenses
|
|
|
274,596
|
|
|
|
239,117
|
|
Deferred
revenue
|
|
|
141,644
|
|
|
|
-
|
|
Current portion of
operating lease liability, related party
|
|
|
94,126
|
|
|
|
121,089
|
|
Revolving line of
credit
|
|
|
300,154
|
|
|
|
750,551
|
|
Advances from related
party
|
|
|
616,399
|
|
|
|
-
|
|
Total current
liabilities
|
|
|
2,381,119
|
|
|
|
1,546,345
|
|
|
|
|
|
|
|
|
|
|
Operating lease
liability, related party
|
|
|
-
|
|
|
|
63,199
|
|
Convertible notes
payable
|
|
|
1,455,000
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
3,836,119
|
|
|
|
1,609,544
|
|
|
|
|
|
|
|
|
|
|
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, 3,527,092 and 3,568,758
|
|
|
|
|
|
|
|
|
shares issued and
outstanding at September 30, 2023 and
December 31, 2022, respectively
|
|
|
3,527
|
|
|
|
3,569
|
|
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
|
|
|
2,836,019
|
|
|
|
2,832,308
|
|
Accumulated
deficit
|
|
|
(4,069,680)
|
|
|
|
(2,126,612)
|
|
Total stockholders'
equity (deficit)
|
|
|
(1,229,301)
|
|
|
|
710,098
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity (deficit)
|
|
$
|
2,606,818
|
|
|
$
|
2,319,642
|
|
SYRA HEALTH
CORP.
CONDENSED
STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
|
For the Nine Months
Ended
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Healthcare staffing
services
|
|
$
|
1,121,238
|
|
|
$
|
1,447,979
|
|
|
$
|
3,103,940
|
|
|
$
|
3,366,667
|
|
Medical communication
services
|
|
|
328,750
|
|
|
|
66,000
|
|
|
|
513,647
|
|
|
|
285,311
|
|
Digital health
services
|
|
|
131,356
|
|
|
|
-
|
|
|
|
131,356
|
|
|
|
-
|
|
Net revenues
|
|
|
1,581,344
|
|
|
|
1,513,979
|
|
|
|
3,748,943
|
|
|
|
3,651,978
|
|
Cost of
services
|
|
|
1,026,803
|
|
|
|
1,100,170
|
|
|
|
2,919,087
|
|
|
|
2,881,142
|
|
Gross profit
|
|
|
554,541
|
|
|
|
413,809
|
|
|
|
829,856
|
|
|
|
770,836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
|
|
592,241
|
|
|
|
451,771
|
|
|
|
1,612,605
|
|
|
|
1,021,627
|
|
Professional
services
|
|
|
58,875
|
|
|
|
154,457
|
|
|
|
424,379
|
|
|
|
863,297
|
|
Selling, general
and
administrative expenses
|
|
|
234,084
|
|
|
|
150,492
|
|
|
|
657,904
|
|
|
|
370,067
|
|
Depreciation
|
|
|
12,357
|
|
|
|
3,880
|
|
|
|
36,413
|
|
|
|
4,791
|
|
Total operating
expenses
|
|
|
897,557
|
|
|
|
760,600
|
|
|
|
2,731,301
|
|
|
|
2,259,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
(343,016)
|
|
|
|
(346,791)
|
|
|
|
(1,901,445)
|
|
|
|
(1,488,946)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
2,820
|
|
|
|
35
|
|
|
|
2,826
|
|
|
|
54
|
|
Interest
expense
|
|
|
(14,180)
|
|
|
|
(7,779)
|
|
|
|
(44,449)
|
|
|
|
(16,641)
|
|
Total other income
(expense)
|
|
|
(11,360)
|
|
|
|
(7,744)
|
|
|
|
(41,623)
|
|
|
|
(16,587)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(354,376)
|
|
|
$
|
(354,535)
|
|
|
$
|
(1,943,068)
|
|
|
$
|
(1,505,533)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares
outstanding - basic and diluted
|
|
|
4,360,426
|
|
|
|
4,107,164
|
|
|
|
4,380,267
|
|
|
|
2,337,915
|
|
Net loss per common
share - basic
and diluted
|
|
$
|
(0.08)
|
|
|
$
|
(0.09)
|
|
|
$
|
(0.44)
|
|
|
$
|
(0.64)
|
|
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SOURCE Syra Health