Q1 2024 Syra Health Corp Earnings Call

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Good morning, everyone and thank you for joining us for thyroid health first quarter 2024 financial results conference call joining us on today's call is Dr. <unk> <unk> CEO of Syrah Health and prayer Prasad Cyrus Chief Financial Officer.

Operator: Good morning, everyone, and thank you for joining us for Syra Health's first quarter 2024 financial results conference call. Joining us on today's call is Dr. Deepika Phuppalanchi, CEO of Syra Health, and Priya Prasad, Syra's Chief Financial Officer. At the conclusion of today's prepared remarks, management will answer some questions that were sent to us by investors and other questions we think are relevant to investors as well. This event is being recorded and will be available for replay through the webcast information provided in the press release.

Operator: Sure.

Operator: At the conclusion of today's prepared remarks management will answer some questions that were sent to us by investors and other questions. We think are relevant to investors as well today's event is being recorded and will be available for replay through the webcast information provided in the press release.

Operator: I'd also like to call your attention to the customary Safe Harbor disclosure regarding forward-looking information. The conference call today will contain certain forward-looking statements, including statements regarding the goals, strategies, beliefs, expectations, and future potential operating results of Syra Health. Although management believes these statements are reasonable based on estimates, assumptions, and projections as of today, these statements are not guarantees of future performance. Time-sensitive information may no longer be accurate at the time of any telephonic or webcast replay.

Operator: I'd also like to call your attention to the customary safe Harbor disclosure regarding forward looking information the conference call today will contain certain forward looking statements, including statements regarding the goals strategies beliefs expectations and future potential operating results of Syrah health although.

Operator: Management believes these statements are reasonable based on estimates assumptions and projections as of today. These statements are not guarantees of future performance.

Operator: Time sensitive information may no longer be accurate at the time of any telephonic or webcast replay actual results may differ materially as a result of risks uncertainties and other factors, including but not limited to factors set forth in the Companys filings with the SEC Sierra undertakes no obligations.

Operator: Actual results may differ materially as a result of risks, uncertainties, and other factors, including but not limited to those set forth in the company's filings with the SEC. Sire undertakes no obligation to update or revise any of these forward-looking statements.

Operator: To update or revise any of these forward looking statements.

Operator: With that said, I would like to turn the event over to Dr. Deepika Vubelanchi, Chief Executive Officer of Syra Health. Dr. Vubelanchi, please proceed.

Speaker Change: With that said I would now like to turn the event over to Dr. <unk> <unk>, Chief Executive Officer of Syrah Health <unk>. Please proceed.

Deepika Vubelanchi: Thank you Christine and welcome everyone I'm pleased to discuss with you our first quarter financial results and that's why you're going for outlook.

Deepika Phuppalanchi: Thank you, Christine, and welcome, everyone. I'm pleased to discuss with you our first quarter 2024 financial results and the 2024 outlook. We are off to a great start in 2024 as we return to strong top-line growth. Revenues in the first quarter increased 47%, and we exhibited growth across the majority of our business. The multiple contract wins that we announced in recent months are translating into revenues in 2024. As such, we are confident in our 2024 revenue guidance of $9 million to $11 million, which is largely based on contracts in hand and pending implementation.

Deepika Phuppalanchi: After a great start in 2020 full of Richardson with solid top line growth.

Deepika Phuppalanchi: In the fourth quarter increased 47% and we exhibited growth across majority of our business units.

Deepika Phuppalanchi: The multiple contract wins that we announced in recent months translating into revenue in 2024.

Deepika Phuppalanchi: As such we are confident in our 2020 for revenue guidance of 9 million to $11 million, which is largely based on contracts in hand and pending implementation.

Deepika Phuppalanchi: Strong growth in 2024 is expected to come from our population health and healthcare workforce business units, coupled with continual growth from our behavior and mental health, digital health, and health education business. We have been successful in securing sizable contracts in these areas in recent months and expect further opportunities going forward. This is an exciting time for Caira Health as we embark on fulfilling our promise to continually push the boundaries of mental health solutions, explore new frontiers in digital health, and remain dedicated to our pursuit of a healthier population.

Deepika Phuppalanchi: Strong growth in 2024 is expected to come from our population health and healthcare workflows business units, coupled with continued growth from our behavior in Mendoza.

Deepika Phuppalanchi: Health and education business units.

Deepika Phuppalanchi: We have been successful in securing sizable contracts in these areas in recent months and expect further opportunities going forward.

Deepika Phuppalanchi: This is an exciting time for <unk> as we embark on fulfilling our promise to continually push the boundaries of Linda Hudson <unk> explore new volunteers in digital health and remain dedicated to our pursuit Aqua healthier population.

Deepika Phuppalanchi: Our goal is to become a leader in healthcare solutions and to expand our operations by leveraging our established presence, which we have achieved in key geographical areas to drive growth nationwide. The areas of mental and behavioral health are gaining a lot of attention, and the public and private sectors are allocating increased resources to solving this crisis. We are pleased to offer meaningful solutions to this crisis.

Deepika Phuppalanchi: Our goal is to become a leader in healthcare solutions and to expand our operations by eliminating establish sectors, which we have achieved in key geographical areas to drive growth nationwide.

Deepika Phuppalanchi: The aes augment and behavior of gaining a lot of attention and public and private sectors are allocating increased resources and solving described.

Deepika Phuppalanchi: We are pleased to offer meaningful solutions to this crisis.

Deepika Phuppalanchi: We remain on track to significantly grow our business units and diversify our customer geography.

Deepika Phuppalanchi: We remain on track to significantly grow our business units and diversify our customer geography. We are currently operating in 19 states, a major achievement since the inception of the company just three years ago. We also diversified our revenues beyond our legacy healthcare workforce to include digital health, population health, and health education, which grew by over 330 percent and accounted for 19 percent of our total revenues in the first quarter of 2024 versus just 7 percent in the first quarter of 2023.

Deepika Phuppalanchi: We are currently operating in 19 states a major achievement since the inception of the company just three years ago we.

Deepika Phuppalanchi: We also diversified our revenue beyond our legacy healthcare workforce to include digital head population health and education, which grew over 330% and accounted for 19% of our total revenues in the first quarter of 2024 versus just 7% and the <unk>.

Deepika Phuppalanchi: First quarter of 2023.

Deepika Phuppalanchi: In late 2023, we announced our expansion into the federal government space with the launch of our government solutions business. We continue active engagement with Caduceus Health Care and anticipate providing case management services, health care staffing, along with behavioral health services and education in support of the federal influx care system. We have a growing pipeline of federal government business opportunities as we continue to grow our federal sales team and nurture partnerships with business entities focused on delivering and implementing federal government projects.

Deepika Phuppalanchi: In late 2023, we announced our expansion into the federal government space with the launch of our government solutions business unit.

Deepika Phuppalanchi: We continue active engagement with caduceus healthcare.

Deepika Phuppalanchi: <unk> debate, providing case management services healthcare staffing along the behavior behavioral health services and education and support of the federal influx scale facilities.

Deepika Phuppalanchi: We have a growing pipeline of federal government business opportunities as we continue to grow our federal sales team and also our partnerships with business entities focused on destiny and implementing federal government projects.

Deepika Phuppalanchi: Looking out beyond the immediate timeframe. We are most excited about our suite of technology projects, namely say anything sidewalk and surplus.

Deepika Phuppalanchi: Looking out beyond the immediate time frame, we are most excited about a suite of technology products, namely Serenity, Sarebot, and CarePlus. Femnity is a flagship and proprietary healthcare product that can be securely deployed to customers for the prevention and treatment of mental and behavioral health issues. Serenity is available for use by universities and colleges, large employers, fair organizations, and provider networks. SyraBot is a human-centered, conversational, AI-backed chatbot that offers 24x7 customer support.

Deepika Phuppalanchi: <unk> is our flagship and proprietary health care product that can be securely deployed to customers for the prevention and treatment of mental and behavioral health issues.

Deepika Phuppalanchi: And it is available for use by universities and colleges large employers fail organizations and provider networks.

Deepika Phuppalanchi: Cytosorb is the human centric conversational AI chat bot that offers 20 <unk> customer support side of what provides Boston that personalized health information and benefit and treatment information for individuals to stay informed and involved in it yet.

Deepika Phuppalanchi: SyraBot provides personalized health information and benefit and treatment information for individuals to stay informed and involved in their care. We are currently deploying SiraBot to a large managed care organization in Indiana, and we anticipate similar customers in the near future. CarePlus is an easy-to-use and affordable electronic medical record system tailored to small to mid-sized healthcare organizations to enhance operational efficiency, minimize errors, and elevate patient care. We believe that these products can be catalysts for negligible revenue and margin growth for SAIA.

Deepika Phuppalanchi: We are currently deploying sidebar to a large managed care organization in Indiana, and we anticipate similar customers in the near future.

Deepika Phuppalanchi: <unk> is an easy to use and affordable electronic medical record system tailored to small to midsize healthcare organization to enhance operational efficiency minimize errors and elevate patient care.

Deepika Phuppalanchi: We believe that these products can be catalyst was negligible revenue and margin growth was higher.

Speaker Change: I would like to now speak about our business units in more detail.

Deepika Phuppalanchi: I would like to now speak about our business units in more detail. I'll begin with our Population Health Business Unit. In this business unit, our solutions help our customers create healthcare improvements for entire populations of individuals at the state and county level. We conduct data analysis and develop solutions from a health equity lens to help improve health equality and access to care. Utilizing advanced and protective analytics, we help stakeholders create new health programs and public policies. We also conduct health readiness assessments and ensure emergency response preparedness. Population health is experiencing very strong growth in the near term, growing 213% in the first quarter.

Deepika Phuppalanchi: Begin with our population health business unit.

Deepika Phuppalanchi: In this business unit also nuisance help our customers create talcott improvements for the entire population of individuals at the state and county level.

Deepika Phuppalanchi: We conduct data analysis and develop solutions from a health equity lens to have improved health equality and access to care.

Deepika Phuppalanchi: <unk> advanced and predictive analytics, we have stakeholders create new health programs I felt the policies.

Deepika Phuppalanchi: We also conduct health readiness assessments.

Deepika Phuppalanchi: Sure Emergency response preparedness.

Deepika Phuppalanchi: Population health is experiencing very strong growth in the near term.

Deepika Phuppalanchi: 213% in the first quarter.

Deepika Phuppalanchi: In the last month, we have won contracts with public and private organizations in multiple states, including Maine, New Jersey, Tennessee, and Indiana. We were recently awarded a contract worth $660,000 per year with a national healthcare organization to provide healthcare effectiveness data and information sets, commonly known as HEADES, outreach, and support services essential for fostering positive health outcomes and reducing healthcare costs. We also announced a one-year, $480,000 contract from the Indiana Department of Health to administer a public health and healthcare readiness assessment. Under the agreement, Saira Health experts will be evaluating how existing hazards and risks impact public health, public health infrastructure, and behavioral health within the state of Indiana.

Deepika Phuppalanchi: In the recent months, we have one contract with public and private organizations in multiple states, including me, New Jersey, Tennessee and Indiana.

Deepika Phuppalanchi: We were recently awarded a contract with $660000 per year with a national healthcare organization to provide healthcare effectiveness data and information set commonly known as heaters outreach and support services essential for clustering positive health outcomes, and then using health care com.

Deepika Phuppalanchi: Yes.

Deepika Phuppalanchi: We also announced a one year $480000 contract from the Indiana Department of health to administer public health and health care readiness assessments.

Deepika Phuppalanchi: Under the agreement <unk> has public health experts will be evaluating how existing hazards and risks in fact blackout because infrastructure.

Deepika Phuppalanchi: Dr <unk> and behavior has been at the state of Indiana.

Deepika Phuppalanchi: Part of the agreement also includes identifying the greatest risk to the public healthcare system in Indiana, as well as identifying where the Department of Health and its local partners should focus their resources to create a healthcare network for all Indianamids. Moving on to Healthcare Workforce, we continue to expand this business unit with contracts in additional states by providing experienced physicians, nurses, and allied health professionals to government and private provider networks, payer organizations, and other healthcare facilities across the country. A healthcare gap ensures continuity of care and helps fill gaps left by healthcare burnout.

Deepika Phuppalanchi: Part of the agreement also includes identifying the greatest risk to public health care system of Indiana, as well as identifying where the department of health and its local partnerships focused our resources to create a healthy net book for all Indiana visitors.

Deepika Phuppalanchi: Moving on to <unk>, we continue to expand this business unit with contract and additional states by providing experienced physicians nurses and Allied health professionals at Goldman and private provider networks organization and other health care facilities across the country.

Deepika Phuppalanchi: Our health care staff ensure continuity of care and test build gas slipped by Heska ivano.

Deepika Phuppalanchi: Penske workforce grew 28% in the first quarter and we expect this business unit to continued strong growth in 2024, driven by strategic collaborations and adaptive staffing approaches.

Deepika Phuppalanchi: Healthcare workforce grew 28% in the first quarter, and we expect this business unit to continue strong growth in 2024 driven by strategic collaborations and adaptive staffing approaches. In recent months, we have been successful in securing contracts with state and local organizations in states including Arizona, Indiana, Missouri, Nebraska, and Virginia. For example, we secured a healthcare workforce contract in Missouri for providing temporary medical services across the entire state. Revenue from the contract will be determined based on the number of positions filled and their duration.

Deepika Phuppalanchi: In recent months, we have been successful in securing contracts with state and local organizations.

Deepika Phuppalanchi: States, including Arizona, Indiana, Missouri, Nebraska, and Virginia.

Deepika Phuppalanchi: For example, the effect of health care workforce contract in Missouri for providing temporary medical services.

Deepika Phuppalanchi: The entire state.

Deepika Phuppalanchi: Revenue from the contract will be determined based on the number of positions spin and the duration.

Deepika Phuppalanchi: Moving on to digital help this business unit is our most innovative where we blend technology and innovation to develop a range of digital health solutions, which are centered on prevention improved access and affordable care.

Deepika Phuppalanchi: Moving on to Digital Health, this business unit is the most innovative, where we blend technology and innovation to develop a range of digital health solutions centered on prevention, improved access, and affordable care. Digital Health generated revenues of $92,000 in the first quarter of 2024, driven by sales of a SairaBot product which was launched in the third quarter of 2023. SiraBot is a human-centric chatbot solution that offers 24x7 AI-powered conversational customer support. SiraBot provides high-quality responses in up to 200 different languages and holds a large knowledge base for customers with a large volume of data or information.

Deepika Phuppalanchi: This film has generated revenues of 92000 in the first quarter of 2024, driven by sales of our <unk> product, which was launched in the third quarter of 2023.

Deepika Phuppalanchi: Cytosorb is the human centric chat box solution that August 27, AI powered conversational customer support.

Deepika Phuppalanchi: <unk> provides high quality responses and up to 200 different languages and wholesale large knowledge base for customers with a large volume of data or information.

Deepika Phuppalanchi: All of our digital health tools utilize AI technology for predictive analysis, and we continue to use AI to shape our tools for greater efficiency and personalization. Now on to Behaviour and Mental Health, we deem this business unit as the area with the highest potential for revenues in the long term. The statistics provided by the National Institute of Mental Health painter's star reality of the mental health landscape in America. It's not just numbers; it's a reflection of the millions of people's lives impacted by mental illness.

Deepika Phuppalanchi: It still has to utilize AI technology for predictive analysis, and we continue to use AI to share, but it will spur greater efficiency and personalization.

Deepika Phuppalanchi: Now onto behavior and mental health, leading this business unit as the area with the highest potential for revenues in the long term.

Deepika Phuppalanchi: The statistics provided by the National Institute of mental Health, Spain to start reality of the Minto has landscape in America. It's not just numbers, it's a reflection of the millions of People's lives impacted by mental illness.

Deepika Phuppalanchi: With more than one in five adults in the United States living with a mental illness, it's evident that mental health concerns affect a significant portion of our population. In this business unit, we focus on preventative mental health and treatment. We offer a variety of products and services to promote mental and behavioral well-being, including telehealth and our own licensed therapist. In 2023, we launched Serenity, an AI-backed mental health product for employers, payers, colleges, and universities, offering support for the mental health of their employees, helpline benefits, and students.

Deepika Phuppalanchi: With more than one in five adults in the United States living with dementia of illness, it's evident that the mental health concerns affect a significant portion of our population.

Deepika Phuppalanchi: And this business unit, we focus on student achievement of health and treatment.

Deepika Phuppalanchi: A variety of products and services to promote mental and behavioral Wednesday, including television and they are all licensed therapist.

Deepika Phuppalanchi: In 2023, we launched <unk>, our AI back Minto has product for employers.

Deepika Phuppalanchi: Quantitative universities offering support for the mechanism.

Deepika Phuppalanchi: Hence land assets and students.

Deepika Phuppalanchi: Dan look to fill the gap and behavior and mental health care setting a deep focus on preventing a mental health crisis, but providing psychological evaluations and AI by dialing for continuous monitoring mode Bento <unk> assessments personalized wellness plans cognitive behavior therapy guided me.

Deepika Phuppalanchi: Developed to fill the gap in behavior and mental health care, Serenity focuses on preventing a mental health crisis by providing psychological evaluations, an AI-backed diary for continual monitoring of mood, mental health assessments, personalized wellness plans, cognitive behavior therapy, guided meditation sessions, and real-time reporting for tracking of progress or for providing insights to a therapist.

Deepika Phuppalanchi: In today's <unk> session and real time reporting for tracking our progress offer providing insights to authenticate.

Deepika Phuppalanchi: We recently hosted Syra's Mental Health Solutions Day to spotlight serenity and her commitment to working with non-profits that are destigmatizing mental health. We are currently negotiating contracts with private organizations that are interested in utilizing Serenity for their workforce. Last month, our research study protocol facility was approved by the Perl Institutional Review Board. The research study will be conducted by third-party university researchers and practicing psychologists who will enroll approximately 300 people with moderate to severe depression.

Deepika Phuppalanchi: We recently hosted <unk> mental health solutions date, the spotlight entity and our commitment to working with nonprofits that are these stigmatizing.

Deepika Phuppalanchi: We are currently negotiating contracts with private organizations that are interested in utilizing <unk> for their workforces.

Deepika Phuppalanchi: Last month, our research study protocol for <unk> was approved by institutional review Board the.

Deepika Phuppalanchi: The research study will be conducted by third party University, researchers and practicing psychologist who would enroll approximately 300 people with moderate to severe depression.

Deepika Phuppalanchi: Some services side of behavioral mental health in late December we announced that we had been awarded a contract with the Mississippi Department of human services to provide behavioral and mental health services for the Oakley Youth Development Center and other locations as directed by the Minnesota and Mississippi Department of Human services.

Deepika Phuppalanchi: From the services side of behavioral and mental health, in late December, we announced that we had been awarded a contract with the Mississippi Department of Human Services to provide behavioral and mental health services at the Oakley Youth Development Center and other locations as directed by the Mississippi Department of Human Services. We have a similar contract in Camden County, New Jersey, where we provide behavioral and mental health assessments for police officers in support of their fitness for duty with youth. We also continue to provide competency attainment services to the Indiana Department of Child Services for vulnerable youth charts with delinquent acts.

Deepika Phuppalanchi: Yeah.

Deepika Phuppalanchi: We have assumed no contact and Camden County, New Jersey, where he provided behaviors Memphis assessments, but police officers in support of their fitness beauty.

Deepika Phuppalanchi: We also continue to provide competency attainment services to the Indiana Department of sell services.

Deepika Phuppalanchi: One level yield charged with delinquent X.

Deepika Phuppalanchi: Our health Education business unit continues to win new business.

Deepika Phuppalanchi: Our Health Education Business Unit continues to win new and repeat business. We were just recently awarded our third training contract by Maricopa County, Arizona. Our journey in Maricopa County began with health equity training followed by foundations in public health training, and soon, we will be delivering cultural and community training to their public health officials and community members. We were also awarded a five-year contract from the Cedric County Health Department in Kansas. As part of the agreement, Saira Health will provide overdose data to Action, training to first responders, and faith-based community organizations in Sedgwick County.

Deepika Phuppalanchi: Just you were just recently awarded towards training by Medical Polk County, Arizona, All journey and medical Borkowski began to test equity training, followed by foundations and public cleaning and soon we will be delivering cultured human <unk> training to their public health officials and community members.

Deepika Phuppalanchi: We were also awarded a five year contract from the centric County Health Department in Kansas.

Deepika Phuppalanchi: As part of the agreement.

Deepika Phuppalanchi: <unk> will provide overdose data to action trainings to first responders and faith based community organizations and Sedgwick County.

Deepika Phuppalanchi: And finally I wanted to speak about our newest business unit Federal government solutions, our business began with state government contracts and we now expect to offer these services to federal agencies as well.

Deepika Phuppalanchi: And finally, I want to speak about our newest business unit, Federal Government Solutions. Our business began with state government contracts, and we now expect to offer these services to federal agencies as well. Earlier this year, we announced that we had been selected as a subcontractor for a contract awarded to Caduceus Healthcare by the Federal Department of Health and Human Services Administration for Families and Children, Office of Refugee Resettlement, Medical Staffing, and Support. With our federal team in place, we are anticipating more awards in the federal government space. With that, let me turn it over to our CFO, Priya Prasad, who will walk through the financial details.

Deepika Phuppalanchi: Earlier this year, we announced that we had been selected as a subcontractor for a contract awarded to producers healthcare by the Federal Department of Health and Human services administration for family and families and children office of refugee resettlement medical staffing and support.

Deepika Phuppalanchi: With our federal team in place we are anticipating more awards in the federal government space.

Priya Prasad: With that let me turn it over to our CFO Professor who will walk through the financial details.

Deepika Phuppalanchi: Sure.

Priya Prasad: Thank you Rebecca and let me add my welcome to everyone joining us on this call.

Priya Prasad: Thank you, Deepika, and let me add my welcome to everyone joining this call. The financial results for the full year are provided in detail within our press release, which will be issued earlier this morning, and in our 10-Q. Total revenue for the first quarter of 2024 was $1.7 million compared to $1.2 million in the first quarter of last year, representing a 47% growth. Growth was driven by the healthcare workforce, population health, and digital health. We will now go through each business unit.

Priya Prasad: Financial results for the full year are provided in detail within our press release, which will be issued earlier this morning and in our 10-Q.

Priya Prasad: Total revenue for the first quarter of 2024 one.

Priya Prasad: One 7 million compared to $1 2 million in the first quarter of last year.

Priya Prasad: <unk>, a 47% group growth was driven by health care workforce population health and digital health.

Priya Prasad: Within our Digital Health Business Unit, revenues were $92,000 during the first quarter, driven by sales of SyraBot. Within our Population Health Business Unit, revenues were $232,000 in the first quarter versus $74,000 in the same period last year, growth of more than 213% driven by demand for our epidemiology services. Within our Healthcare Workforce Business Unit, we returned to growth in the first quarter, posting revenue growth of 28% to $1.4 million. The increase in healthcare workforce revenue was driven by new customer acquisitions and additions to our existing contracts. Based on contracts on hand, we expect the healthcare workforce to continue strong growth in 2024.

Speaker Change: We will now go through each business unit.

Priya Prasad: <unk> digital health business unit revenues, Greg Ninety-two Thomson during the first quarter driven by sales of <unk> are born with.

Priya Prasad: Within our population health business unit revenues were 232000 in the first quarter was 74000 <unk>.

Priya Prasad: <unk> growth of more than 213% driven by demand for <unk> services the.

Priya Prasad: <unk> has given fourth business unit, we returned to growth in the first quarter posting revenue growth of 28% to a one 4 million the increase in healthcare workforce revenue was driven by new customer acquisitions and additions to our existing contracts based on contracts on hand.

Priya Prasad: We expect healthcare workforce to continued strong growth in 2024.

Priya Prasad: Behavioral and mental health and health education business units combined had revenues of $11,000 in the first quarter versus $3,000 in the first quarter last year. Gross margins for the first quarter of 2024 were 10.2%, compared to 12.4% in the same period last year. The decrease in gross margins was due to the mixed shift as the healthcare workforce, which carries lower margins, returned to growth. Total operating expenses for the first quarter increased 76% to 1.6 million compared to 921,000 in the first quarter of 2023.

Priya Prasad: Behavioral and mental health.

Priya Prasad: Education business units combined have driven use of London conference in the first quarter was 3000 in the first quarter last year.

Priya Prasad: Gross margins for the first quarter of 2024 was 10, 2% compared to 12, 4% in the same period last year.

Priya Prasad: The decrease in gross margins was due to the mix shift as healthcare workforce, which carries lower margins returns to growth.

Priya Prasad: Total operating expenses for the first quarter increased 76% to $1 6 million compared to 921000 in the first quarter of 2023.

Priya Prasad: Salaries and benefits expenses increased 61% year over year to support general business growth and sales. Professional fees declined 18% compared year over year due to a decrease in legal and other professional costs as the company completed its IPO process in the fourth quarter of 2023. Selling, general, and administrative expenses increased 87% year-over-year due to increased operations.

Priya Prasad: Salaries and benefits expenses increased 61% year over year to support general business growth and six.

Priya Prasad: Professional fees declined 18% compared year over year due to the decrease in legal and other professional costs as the company completed its IPO process in the fourth quarter of 2023.

Priya Prasad: Selling general and administrative expenses increased 87% year over year due to increased operations research and development expenses were 277000, reflecting the development of our technology based solutions.

Priya Prasad: Research and development expenses were $277,000, reflecting the development of a technology-based solution. Depreciation expense for $13,000 in the first quarter of 2024 compared to $12,000 in the first quarter of 2023 reflected expanded office space. The net loss was 1.4 million for the first quarter compared to a loss of 786,000 in the same period last year. The adjusted EBIDA for the quarter was negative 1.4 million compared to a negative 763,000 in the first quarter of 2023.

Priya Prasad: Depreciation expense was 13000 in the first quarter of 2024 compared to 12000 in the first quarter of 2023.

Priya Prasad: Expanded office space.

Priya Prasad: The net loss was one 4 million for the first quarter compared to a loss of 786000 in the same period last year.

Priya Prasad: Adjusted EBITDA for the quarter was negative $1 4 million compared to a negative 763000 in the first quarter of 2023.

Priya Prasad: Again, full reconciliations are provided in the tables included in today's press release. Our cash balance as of March 31, 2023 was $3.2 million. During the first quarter, we received roughly $815,000 as some warrants were exercised. We are maintaining our outlook and expect revenues in 2024 to be in the range of 9 to 11 million, representing a 64 to 100% growth versus 2023. As a reminder, this guidance does not include any potential revenues from any federal government contracts.

Priya Prasad: Again full reconciliations.

Priya Prasad: Reconciliations are provided in the tables included in today's press release.

Priya Prasad: Our cash balance as of March 31, 2023 was $3 2 million during the first quarter. We received roughly 815 Thompson as some warrants were exercised.

Priya Prasad: We are maintaining our outlook and expect revenues in 2020 to be in the range of $9 million to $11 million Youre, presenting Ah 64 to a 100% growth versus 2023 as a reminder, this guidance does not include any potential revenues from any sectors government contracts with that let me turn.

Deepika Phuppalanchi: With that, let me turn the call back over to you.

Priya Prasad: The contract over time.

Speaker Change: Thank you for you.

Deepika Phuppalanchi: Our technologically advanced and innovative solutions are primed to meet the unmet needs of the healthcare industry in key areas of behavioral mental health, digital health, and population health. As we chart our goals for 2024, our priority remains to drive growth across all our business units while prudently managing our cost structure and balance sheet. The evolving needs of healthcare coupled with the transformative potential of a solution positions us favorably to capitalize on emerging opportunities and deliver sustained value to our shareholders.

Deepika Phuppalanchi: Our technologically advanced and innovative solutions of trying to meet the unmet needs of the healthcare industry in key areas of behavior mental health digital health and population health as we chart our goals for 2024, our priority remains to drive growth across all our business units by prudently managing our cost structure and balance sheet.

Deepika Phuppalanchi: Evolving needs of healthcare, coupled with the trial will make the potential for solution.

Deepika Phuppalanchi: So favorably to capitalize on emerging opportunity and deliver sustained value to our shareholders.

Deepika Phuppalanchi: Our pipeline of future contracts has expanded in recent months, and we continue to bid for multiple opportunities across state and federal governments and the private sector. We expect to continue to announce contracts with as they are solidified. Utilizing a strong balance sheet, we are expanding our RFP and business development teams as we intend to replicate our current projects with similar customers across the country. I appreciate everyone's participation on the call today and will now be happy to answer any questions. [inaudible]

Deepika Phuppalanchi: Our pipeline of future contracts has expanded in recent months and we continue to build for multiple opportunities across state and federal governments and the private sector. We expect to continue to announce contract with us they are qualified.

Deepika Phuppalanchi: Utilizing our strong balance sheet, we are expanding our RFP and business development teams as we intend to replicate our client projects with similar customers across the country.

Deepika Phuppalanchi: I appreciate everyone's participation on the call today, and we'll all be happy to answer any questions Christine.

Operator: Thank you to the entire management team. We have some questions for you. With regard to the outlook of 9 to 11 million in 2024, can you speak about the timing of these revenues?

Speaker Change: Thank you to the entire management team, we have some questions for you with regards to the outlook of $9 million to $11 million. In 2024 can you speak about the timing of these revenues are they mostly back half weighted.

Operator: Korea.

Speaker Change: We are happy to reiterate our financial guidance of $9 million to $11 million for 2024.

Operator: Are they mostly back-half weighted?

Speaker Change: Which is about 64% to 100% increase.

Operator: We are happy to reiterate our financial guidance of 9 to 11 million for 2024, which is about a 64 to 100 percent increase over our 2023 revenues. However, we do expect the majority of those revenues to be reflected in the last half of this year due to the implementation cycle of our customers.

Speaker Change: Our 2023 revenues, we do expect the majority of those revenues to be reflected in the last half of this year due to the implementation cycles of our customers.

Operator: Thank you you've been successful in winning a lot of contracts what do you attribute the success to deep OCA.

Operator: Thank you. You've been successful in winning a lot of contracts. What do you attribute this success to, Deepika?

Operator: Yes.

Deepika Phuppalanchi: Yeah. SIDA Health has an experienced team of scientifically driven healthcare and technology professionals. Their dedication to excellence is illustrated by our comprehensive suite of innovative services and technologies. Our success is evident in the number of contracts we have successfully secured and the continued revenue growth.

Deepika Phuppalanchi: <unk> has experienced the most scientifically driven healthcare technology professionals in their dedication to excellence as illustrated by a comprehensive suite of innovative services and technologies unusuals.

Deepika Phuppalanchi: Texas is evidenced in the number of contracts, we have successfully secured and the continued revenue growth.

Deepika Phuppalanchi: Thank you the growth in population health has been strong what is driving that business <unk>.

Operator: Thank you. The growth in population health has been strong. What is driving that business, Deepika?

Deepika Phuppalanchi: Yes, we have skin conducting gap analysis to determine water customers are seeking.

Deepika Phuppalanchi: Yes, we are skilled at conducting gap analysis to determine what our customers are seeking. Driven by our accomplished team of epidemiologists and research scientists, we are experiencing strong demand for our epidemiology services. Through this work, we are shaping the strategic framework of organizations for improving health care, and we are evaluating state and county programs to improve the health outcomes of entire communities.

Speaker Change: <unk> bye.

Deepika Phuppalanchi: <unk> demos epidemiologist and research scientists youre experiencing strong demand for epidemiology services.

Deepika Phuppalanchi: Through this work we are shaping the strategic framework of organization for improving health care and we're evaluating data from these programs to improve the health outcomes of the entire communities.

Operator: Thank you. It looks like we are now out of time. My thanks to everyone for participating in today's call. We look forward to speaking with each of you again.

Speaker Change: Thank you it looks like we are now out of time my thanks to everyone for participating in today's call. We look forward to speaking with each of you again.

Operator: Okay.