Conference call will be held today,
Monday, March 25 at 9:00am ET
CARMEL,
Ind., March 25, 2024 /PRNewswire/ -- Syra Health
Corp. (NASDAQ: SYRA), ("Syra Health" or the "Company"), a
healthcare consulting company with a mission to improve healthcare
by providing innovative services and technology solutions, today
announced its financial results for the fourth quarter and fiscal
year ended December 31, 2023.
2023 Financial Highlights
- 2023 revenue of $5.5 million
compared to $5.6 million in
2022.
- Business units excluding Healthcare Workforce grew 250% and
comprised 23% of total revenues in 2023, versus only 6% in
2022.
- Population Health, driven by demand for epidemiology services,
had revenues of $715,499, an increase
of more than 125% compared to 2022.
- Digital Health, driven by sales of the Company's SyraBot
product, had revenues of $515,250
marking its first year of revenues.
- Gross profit margin increased 670 bps to 25.6% compared to
18.9% in 2022.
- December 31, 2023 ending cash
balance of $3.3 million and no
long-term debt.
2024 Financial Outlook
- The Company expects full-year 2024 revenue of $9 to $11 million,
representing a growth of 64%-100% versus 2023.
- Guidance does not include any potential revenues from Caduceus
Healthcare with regards to the recently announced Federal Influx
Care Facilities contract.
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.
- Secured a one-year contract with a national healthcare
organization worth $660,000 to
provide Healthcare Effectiveness Data and Information Set (HEDIS®)
outreach and support services essential for fostering positive
health outcomes and reducing costs.
- Secured a one-year $450,000
contract for epidemiology services with the Shelby County Health
Department in Tennessee, with two
additional one-year renewal options, bringing the total potential
value of the contract to $1.35
million.
- Announced that it has been selected as a subcontractor for a
contract awarded to Caduceus Healthcare, Inc. by the federal
Department of Health and Human Services (HHS), Administration for
Families and Children (ACR), Office of Refugee Resettlement (ORR)
Medical Staffing and Support, valued at $75
billion.
- Launched Syrenity, a mental health product that proactively
identifies the negative factors impacting mental health and
integrates telehealth for mental health treatment.
- 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 September 2023, successfully
closed on its IPO and began trading on the NASDAQ.
Management Commentary
Dr. Deepika Vuppalanchi, CEO of
Syra Health, said "We are continuing to make progress on our growth
objectives. The demand for our services remains strong and we
believe we are properly positioned to take advantage. Our financial
guidance reflects the growth of our business. We are continuing to
diversify our revenues in terms of geography and business units.
Our burgeoning business units of Population Health, Behavioral and
Mental Health, Digital Health, and Health Education are seeing
solid growth. These higher margin business units are becoming
a larger portion of our revenue base. We are currently operating in
17 states, and we anticipate securing new business from both the
private sector and ongoing federal project bids."
Sandeep Allam, Executive Chairman
and President of Syra Health, said, "We are excited about our
growth prospects in 2024 and beyond. We are at the early stages of
accelerating growth, which has been made possible by the
investments we have made in recent years in technology and our
people. Our Digital Health business unit is poised for growth,
driven by our innovative SyraBot and our CarePlus solutions, which
we launched in 2023. In 2023 we also launched Syrenity, our
evidence-based and AI-backed product focused on the prevention of
behavioral and mental health concerns. Anchoring these nascent
businesses units is our legacy Healthcare Workforce business unit,
which continues to generate solid revenues."
2023 Financial Results
Revenue in 2023, was $5.5 million,
compared to the $5.6 million reported
in 2022. Strong growth in the Digital Health, Population Health,
Behavioral and Mental Health, and Health Education business units
were driven by new contracts as well as the launch of SyraBot.
Healthcare Workforce revenue declined due to the subsiding of the
COVID-19 pandemic.
Gross profit margin in 2023 was 25.6%, compared to 18.9% in
2022. The increase in gross margins was due to the mix shift from
Healthcare Workforce to Population Health and Digital Health that
carry better margins.
Total operating expenses in 2023 increased 36% to $4.3 million compared to $3.1 million in 2022. Salaries and benefits
expenses increased 50% due to increased operations and added office
personnel to support the Company's IPO process and Company growth.
Professional fees declined 43% due to a decrease in stock-based
compensation related to outsourced professionals engaged in 2022.
Selling, general and administrative expenses increased 97% due to
increased operations. Depreciation expense was $48,771 compared to $14,849 in 2022, reflecting expanded office
space. R&D expenses were $240,048, reflecting the development of
technology-based solutions.
Net Loss for 2023 was $(2.94
million) compared to $(2.12
million) in 2022.
Adjusted EBITDA for 2023 was $(2.8
million) compared to $(2.1
million) in 2022.
Cash on hand on December 31, 2023
was $3.3 million.
Conference Call
Management will hold a conference call to discuss the fiscal
year's financial results at 9:00am ET on March 25, 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/q4-and-full-year-2023-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/q4-and-full-year-2023-earnings-call.
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 this 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. 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 the table below.
|
SYRA HEALTH CORP.
RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS
|
|
|
Net Loss
|
$
(2,938,343)
|
|
$
(2,118,165)
|
|
|
|
|
|
Interest
|
$
53,686
|
|
$
28,533
|
|
Depreciation
|
$
48,771
|
|
$
14,849
|
|
Taxes
|
$
32,985
|
|
$
14,849
|
|
EBITDA
|
$
(2,802,901)
|
|
$
(2,059,934)
|
|
|
|
|
|
Adjusted
EBITDA
|
$
(2,802,901)
|
|
$
(2,059,934)
|
ABOUT SYRA HEALTH
Syra Health is a healthcare technology company addressing some of
healthcare's most significant challenges in areas such
as behavioral and mental health, digital health,
and population health, by providing innovative services and
technology solutions. Syra Health's products and services are
centered on prevention, improved access, and affordable care. Syra
Health supplies its solutions to payers, providers, life sciences
organizations, academic institutions, and government. 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. 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.
BALANCE
SHEETS
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
3,280,075
|
|
|
$
|
3,344
|
|
|
Accounts receivable,
net
|
|
|
1,060,634
|
|
|
|
1,201,097
|
|
|
Accounts receivable
related party
|
|
|
50,644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current
assets
|
|
|
389,787
|
|
|
|
222,302
|
|
|
Total current
assets
|
|
|
4,781,110
|
|
|
|
1,426,743
|
|
|
|
|
|
|
|
|
|
|
|
Deferred offering
costs
|
|
|
-
|
|
|
|
596,118
|
|
|
Property and equipment,
net
|
|
|
78,974
|
|
|
|
112,493
|
|
|
Right-of-use
asset
|
|
|
63,199
|
|
|
|
184,288
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
4,923,283
|
|
|
$
|
2,319,642
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
462,991
|
|
|
$
|
432,388
|
|
|
Accounts payable,
related parties
|
|
|
-
|
|
|
|
3,200
|
|
|
|
|
|
|
|
|
|
|
|
Accrued
expenses
|
|
|
198,978
|
|
|
|
239,117
|
|
|
Current portion of
operating lease liability, related party
|
|
|
63,199
|
|
|
|
121,089
|
|
|
Notes
payable
|
|
|
184,904
|
|
|
|
-
|
|
|
Revolving line of
credit
|
|
|
-
|
|
|
|
750,551
|
|
|
Total current
liabilities
|
|
|
910,072
|
|
|
|
1,546,345
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease
liability, related party
|
|
|
-
|
|
|
|
63,199
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
910,072
|
|
|
|
1,609,544
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
(deficit):
|
|
|
|
|
|
|
|
|
|
Preferred stock, $0.001
par value, 1,000,000 shares authorized, no
shares designated,
issued and outstanding
|
|
|
-
|
|
|
|
-
|
|
|
Class A common stock,
$0.001 par value, 100,000,000 shares
authorized, 5,588,298
and 3,568,758 shares issued and outstanding
at December 31, 2023
and 2022, respectively
|
|
|
5,588
|
|
|
|
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
|
|
|
9,071,745
|
|
|
|
2,832,308
|
|
|
Accumulated
deficit
|
|
|
(5,064,955)
|
|
|
|
(2,126,612)
|
|
|
Total stockholders'
equity (deficit)
|
|
|
4,013,211
|
|
|
|
710,098
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity (deficit)
|
|
$
|
4,923,283
|
|
|
$
|
2,319,642
|
|
|
SYRA HEALTH
CORP.
STATEMENTS OF
OPERATIONS
|
|
|
|
For the Years
Ended
|
|
|
|
December 31,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
|
5,515,144
|
|
|
$
|
5,617,706
|
|
|
Cost of
services
|
|
|
4,103,244
|
|
|
|
4,555,924
|
|
|
Gross profit
|
|
|
1,411,900
|
|
|
|
1,061,782
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
|
|
2,292,295
|
|
|
|
1,524,971
|
|
|
Professional
services
|
|
|
586,463
|
|
|
|
1,035,902
|
|
|
Research and
development expenses
|
|
|
240,048
|
|
|
|
-
|
|
|
Selling, general and
administrative expenses
|
|
|
1,131,922
|
|
|
|
575,755
|
|
|
Depreciation
|
|
|
48,771
|
|
|
|
14,849
|
|
|
Total operating
expenses
|
|
|
4,299,499
|
|
|
|
3,151,477
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
(2,887,599)
|
|
|
|
(2,089,695)
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
2,942
|
|
|
|
63
|
|
|
Interest
expense
|
|
|
(53,686)
|
|
|
|
(28,533)
|
|
|
Total other income
(expense)
|
|
|
(50,744)
|
|
|
|
(28,470)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(2,938,343)
|
|
|
$
|
(2,118,165)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding – basic and diluted
|
|
|
4,877,861
|
|
|
|
3,041,085
|
|
|
Net loss per common
share – basic and diluted
|
|
$
|
(0.60)
|
|
|
$
|
(0.70)
|
|
|
SYRA HEALTH
CORP.
STATEMENTS OF CASH
FLOWS
|
|
|
|
For the Years
Ended
|
|
|
|
December
31,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(2,938,343)
|
|
|
$
|
(2,118,165)
|
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
Non-cash lease
expense
|
|
|
-
|
|
|
|
95,563
|
|
|
Depreciation
|
|
|
48,771
|
|
|
|
14,849
|
|
|
Amortization of debt
discounts
|
|
|
-
|
|
|
|
14,076
|
|
|
Common stock issued
for services
|
|
|
-
|
|
|
|
510,000
|
|
|
Stock-based
compensation
|
|
|
32,831
|
|
|
|
2,910
|
|
|
Decrease (increase)
in assets:
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(59,547)
|
|
|
|
(940,470)
|
|
|
Accounts receivable,
related party
|
|
|
(50,614)
|
|
|
|
-
|
|
|
Other current
assets
|
|
|
203,110
|
|
|
|
(200,798)
|
|
|
Right-of-use
asset
|
|
|
121,089
|
|
|
|
-
|
|
|
Increase (decrease)
in liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
30,603
|
|
|
|
392,276
|
|
|
Accounts payable,
related parties
|
|
|
(3,200)
|
|
|
|
(82,418)
|
|
|
Accrued
expenses
|
|
|
(22,679)
|
|
|
|
163,675
|
|
|
Operating lease
liability
|
|
|
(121,089)
|
|
|
|
(95,563)
|
|
|
Net cash used in
operating activities
|
|
|
(2,759,068)
|
|
|
|
(2,244,065)
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(15,251)
|
|
|
|
(121,260)
|
|
|
Net cash used in
investing activities
|
|
|
(15,251)
|
|
|
|
(121,260)
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Payments on deferred
offering costs
|
|
|
-
|
|
|
|
(596,118)
|
|
|
Repayment of notes
payable
|
|
|
(185,692)
|
|
|
|
-
|
|
|
Proceeds received on
sale of Class A common stock
|
|
|
5,332,283
|
|
|
|
2,322,500
|
|
|
Proceeds received
from line of credit
|
|
|
300,000
|
|
|
|
2,819,275
|
|
|
Repayments on line of
credit
|
|
|
(1,050,551)
|
|
|
|
(2,082,800)
|
|
|
Advances received
from related party
|
|
|
1,295,010
|
|
|
|
94,000
|
|
|
Repayments on
advances from related party
|
|
|
(1,095,000)
|
|
|
|
(288,200)
|
|
|
Proceeds received
from convertible notes payable
|
|
|
1,455,000
|
|
|
|
-
|
|
|
Net cash provided by
financing activities
|
|
|
6,051,050
|
|
|
|
2,268,657
|
|
|
|
|
|
|
|
|
|
|
|
NET CHANGE IN
CASH
|
|
|
3,276,731
|
|
|
|
(96,668)
|
|
|
CASH AT BEGINNING OF
PERIOD
|
|
|
3,344
|
|
|
|
100,012
|
|
|
CASH AT END OF
PERIOD
|
|
$
|
3,280,075
|
|
|
$
|
3,344
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
INFORMATION:
|
|
|
|
|
|
|
|
|
|
Interest
paid
|
|
$
|
36,226
|
|
|
$
|
11,651
|
|
|
Income taxes
paid
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
NON-CASH INVESTING
AND FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Initial recognition
of right-of-use asset and lease liability
|
|
$
|
-
|
|
|
$
|
131,187
|
|
|
Class A common stock
issued for debt and interest conversion
|
|
$
|
1,472,460
|
|
|
$
|
-
|
|
|
Cancellation of Class
A common stock
|
|
$
|
42
|
|
|
$
|
-
|
|
|
Non-cash application
of invoices to STLogics loan
|
|
$
|
200,010
|
|
|
$
|
-
|
|
|
Prepaid asset
financed with notes payable
|
|
$
|
370,596
|
|
|
$
|
-
|
|
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multimedia:https://www.prnewswire.com/news-releases/syra-health-announces-fourth-quarter-and-full-year-2023-financial-results-projects-2024-revenue-growth-of-64-to-100-302098172.html
SOURCE Syra Health
