SYRA

Financial Performance - Total revenue of $1.9 million with 6% annual growth. - Gross margin expanded by 14.6 percentage points to 31.7% due to increased contribution from Population Health and milestone-driven projects. ### Growth Initiatives - Refined go-to-market strategy and aligned sales team incentives for B2B clients. - Syrenity App launched late last year with specialized content for PTSD, showing initial adoption. ### Corporate Developments - Voluntarily delisted from NASDAQ capital market to focus on core fundamentals and reduce costs. ### Business Units Update - Population Health signed a year-long contract with a major insurer, estimated to reach $2.5 million by year-end. - Healthcare Workforce phasing out unfavorable contracts. - Behavioral and Mental Health seeing increased demand from B2B employers.

Based on uncertain impacts of federal government spending changes on key customers, the company is withdrawing previously issued guidance for revenue growth and profitability. The company will provide an updated outlook once the impact of these developments becomes clearer.

Total revenue for the first quarter of 2025 was $1.9 million, reflecting 6% annual growth compared to the first quarter of 2024. The Population Health business unit more than tripled from the year-ago period and represented 65% of total revenue. Healthcare Workforce revenue in the first quarter of 2025 was $655,000, compared to $1.4 million last year. The Behavioral and Mental Health business unit is poised for growth driven by increased user adoption of Syrenity and demand from large B2B employers.

Federal government pausing or cutting spending programs has led to delays in new contracts and some cancellation of proposal requests, which could impact revenue amount and timing, affecting overall performance and cash flow in the near-term.

Q: What should we expect from the company now that it’s traded on the OTC markets?

A: Stakeholders can expect continued commitment to transparency, timely press releases about executed contract wins, and continued sharing of quarterly results through relevant filings.

Q: Should investors be concerned about the lack of revenue coming from the Indiana FSSA NeuroDiagnostic Institute now that the contract has expired?

A: No, as a one-year contract extension valued at $1.5 million was secured from the same customer, and the company is shifting focus to higher margin opportunities in Population Health and Behavioral and Mental Health, plus expanding into private healthcare staffing.

Q: What is the status of the two federal contracts announced in early 2024?

A: Partnered with Caduceus on a federal contract vehicle with no task orders yet; actively bidding with LUKE on the MSQ2 vehicle for medical staffing services, and will notify market via press release if task order awarded.

Q: Have the federal-level changes affected your business?

A: Yes, federal-level changes have led to projects being paused, reinstated, or cut, and delays in RFP awards, impacting revenue amount and timing, but the strategy remains to grow high-margin revenue businesses in public and private sectors.