Silo Pharma, Inc.

Previous wording

We are a developmental stage biopharmaceutical company developing novel therapeutics that address underserved conditions including PTSD, stress-induced anxiety disorders, fibromyalgia, and central nervous system (CNS) diseases. We are focused on developing novel therapies that include conventional drugs and psychedelic formulations. The Company’s lead program, SPC-15, is an intranasal drug targeting PTSD and stress-induced anxiety disorders. SP-26 is a time-release ketamine-based loaded implant for fibromyalgia and chronic pain relief. Silo’s two preclinical programs are SPC-14, an intranasal compound for the treatment of Alzheimer’s disease, and SPU-16, a CNS-homing peptide targeting the central nervous system with initial research indication in multiple sclerosis (MS).

Current wording

We are a diversified developmental-stage biopharmaceutical and cryptocurrency treasury company. Our therapeutic focus is on developing novel therapeutics that address underserved conditions including PTSD, stress-induced anxiety disorders, fibromyalgia, and central nervous system (CNS) diseases. We are focused on developing novel therapies that include conventional drugs and psychedelic formulations. The Company’s lead program, SPC-15, is an intranasal drug targeting PTSD and stress-induced anxiety disorders. SP-26 is a time-release ketamine-based loaded implant for fibromyalgia and chronic pain relief. Silo’s two preclinical programs are SPC-14, an intranasal compound for the treatment of Alzheimer’s disease, and SPU-16, a CNS-homing peptide targeting the central nervous system with initial research indication in multiple sclerosis (MS).

Previous wording

Our lead product candidate, SPC-15, is designed as a novel serotonin 4 (5-HT4) receptor agonist that utilizes biomarkers for treatment of stress-induced psychiatric disorders such as PTSD and anxiety disorders. This innovative treatment is administered via an intranasal formulation, potentially qualifying for the FDA’s streamlined 505(b)(2) regulatory pathway, which could expedite its approval process. We are actively collaborating with Columbia University, holding exclusive global rights to develop and commercialize SPC-15, pursuant to and the exclusive license agreement entered into with Columbia on July 1, 2024. See “Item 1 Business --License Agreements between the Company and Vendor—Exclusive License Agreement with Columbia University.”

Current wording

Our lead product candidate, SPC-15, is designed as a novel serotonin 4 (5-HT4) receptor agonist that utilizes biomarkers for treatment of stress-induced psychiatric disorders such as PTSD and anxiety disorders. This innovative treatment is administered via an intranasal formulation, potentially qualifying for the FDA’s streamlined 505(b)(2) regulatory pathway, which could expedite its approval process. We are actively collaborating with Columbia University, holding exclusive global rights to develop and commercialize SPC-15, pursuant to and the exclusive license agreement entered into with Columbia on July 1, 2024.

Previous wording

SPC-14 targets glutamate receptor NDMAR and serotonin 5-HT4 to address cognitive and neuropsychiatric symptoms in Alzheimer’s disease. Given the global Alzheimer’s therapeutics market is projected to exceed $30.8 billion by 2033, SPC-14 presents a promising opportunity. SPC-14 was developed under a sponsored research agreement with Columbia University See “Item 1 Business--Investigator-Sponsored Study Agreements between the Company and Vendors---Sponsored Research Agreement with Columbia University for the Study of Ketamine in Combination with Other Drugs for Treatment of Alzheimer’s and Depression Disorders,” and we have exclusive global rights to develop and commercialize SPC-14, pursuant to and that certain exclusive license agreement entered into with Columbia on July 1, 2024. See “Item 1 Business--License Agreements between the Company and Vendor—Exclusive License Agreement with Columbia University.”. On October 13, 2022, we extended the term of the sponsored research agreement with Columbia to conduct further research studies into the mechanism of action of SPC-14 in the treatment of Alzheimer’s disease. In addition, we have been granted an option to license certain assets currently under development, including SPC-14 for the treatment of Alzheimer’s disease.

Current wording

SPC-14 targets glutamate receptor NDMAR and serotonin 5-HT4 to address cognitive and neuropsychiatric symptoms in Alzheimer’s disease. Given the global Alzheimer’s therapeutics market is projected to exceed $30.8 billion by 2033, SPC-14 presents a promising opportunity. SPC-14 was developed under a sponsored research agreement with Columbia University See “Item 1 Business--Investigator-Sponsored Study Agreements between the Company and Vendors---Sponsored Research Agreement with Columbia University for the Study of Ketamine in Combination with Other Drugs for Treatment of Alzheimer’s and Depression Disorders,” and we have exclusive global rights to develop and commercialize SPC-14, pursuant to and that certain exclusive license agreement entered into with Columbia on July 1, 2024. On October 13, 2022, we extended the term of the sponsored research agreement with Columbia to conduct further research studies into the mechanism of action of SPC-14 in the treatment of Alzheimer’s disease. In addition, we have been granted an option to license certain assets currently under development, including SPC-14 for the treatment of Alzheimer’s disease.

Previous wording

SPU-16 is a promising candidate targeting central nervous system (CNS) disorders, with an initial indication for multiple sclerosis. On February 12, 2021, we entered into a Master License Agreement (the “UMB License Agreement”) with the University of Maryland, Baltimore (“UMB”) pursuant to which UMB granted us an exclusive, worldwide, sublicensable, royalty-bearing license to certain intellectual property (i) to make, have made, use, sell, offer to sell, and import certain licensed products and (ii) to use the invention titled “Central nervous system-homing peptides in vivo and their use for the investigation and treatment of multiple sclerosis and other neuroinflammatory pathology,” or SPU-16. See “License Agreements between the Company and Vendors--Vendor License Agreement with the University of Maryland, Baltimore for CNS Homing Peptide” for additional details.

Current wording

SPU-16 is a promising candidate targeting central nervous system (CNS) disorders, with an initial indication for multiple sclerosis. On February 12, 2021, we entered into a Master License Agreement (the “UMB License Agreement”) with the University of Maryland, Baltimore (“UMB”) pursuant to which UMB granted us an exclusive, worldwide, sublicensable, royalty-bearing license to certain intellectual property (i) to make, have made, use, sell, offer to sell, and import certain licensed products and (ii) to use the invention titled “Central nervous system-homing peptides in vivo and their use for the investigation and treatment of multiple sclerosis and other neuroinflammatory pathology,” or SPU-16.

Previous wording

Comparison of Our Results of Operations for the Three Months Ended March 31, 2025 and 2024

Current wording

Comparison of Our Results of Operations for the Three and Six Months Ended June 30, 2025 and 2024

Previous wording

The following table summarizes the results of operations for the three months ending March 31, 2025 and 2024 and were based primarily on the comparative unaudited consolidated financial statements, footnotes and related information for the periods identified and should be read in conjunction with the consolidated financial statements and the notes to those statements that are included elsewhere in this report.

Current wording

The following table summarizes the results of operations for the three and six months ending June 30, 2025 and 2024 and were based primarily on the comparative unaudited consolidated financial statements, footnotes and related information for the periods identified and should be read in conjunction with the consolidated financial statements and the notes to those statements that are included elsewhere in this report.

Previous wording

During the three months ended March 31, 2025 and 2024, we generated minimal revenues from operations. For the three months ended March 31, 2025 and 2024, revenues amounted to $18,026 and $18,026, respectively. Such revenues are related to the Aikido License and Sublicense Agreement and are recognized over the estimated 15-year term of the UMB license agreement.

Current wording

During the three and six months ended June 30, 2025 and 2024, we generated minimal revenues from operations. For the three months ended June 30, 2025 and 2024, revenues amounted to $18,025 and $18,025, respectively. For the six months ended June 30, 2025 and 2024, revenues amounted to $36,051 and $36,051, respectively. Such revenues are related to the Aikido License and Sublicense Agreement and are recognized over the estimated 15-year term of the UMB license agreement.

Previous wording

During the three months ended March 31, 2025 and 2024, cost of revenues amounted to $1,460 and $1,460, respectively, and consisted of license fees related to the UMB License and Sublicense Agreement, which are being amortized into cost of revenues over the estimated 15-year terms of their respective agreements with Akido and UMB.** **

Current wording

During the three months ended June 30, 2025 and 2024, cost of revenues amounted to $1,459 and $1,459, respectively. During the six months ended June 30, 2025 and 2024, cost of revenues amounted to $2,919 and $2,919, respectively. Cost of revenues consisted of license fees related to the UMB License and Sublicense Agreement, which are being amortized into cost of revenues over the estimated 15-year terms of their respective agreements with Akido and UMB.** **

Previous wording

For the three months ended March 31, 2025 and 2024, total operating expenses consisted of the following:

Current wording

For the three and six months ended June 30, 2025 and 2024, total operating expenses consisted of the following:

Previous wording

For the three months ended March 31, 2025 and 2024, compensation expense was $178,469 and $173,346, respectively, an increase of $5,123, or 3.01%. This increase solely resulted from an increase in payroll expense and related benefits.

Current wording

For the three months ended June 30, 2025 and 2024, compensation expense was $195,305 and $168,381, respectively, an increase of $26,924, or 16.0%. This increase primarily resulted from an increase in stock-based compensation of $17,445 and payroll expense and related benefits of $9,479.

Previous wording

For the three months ended March 31, 2025 and 2024, professional fees were $273,824 and $318,427, respectively, a decrease of $44,603, or 14.0%. The decrease was primarily attributable to a decrease in consulting fees of $77,574, and a decrease in legal fees of $18,949, offset by an increase in investor relations of $47,245, and an increase in accounting and auditing fees of $4,675.

Current wording

For the three months ended June 30, 2025 and 2024, professional fees were $299,592 and $386,465, respectively, a decrease of $86,873, or 22.5%. The decrease was primarily attributable to a decrease in investor relations of $92,460, and a decrease in consulting fees of $34,200, offset by an increase in legal fees of $34,039, and an increase in accounting and auditing fees of $5,748.

Previous wording

For the three months ended March 31, 2025 and 2024, we incurred research and development expense of $593,962 and $318,240, respectively, an increase of $275,722, or 86.6%. The increase was a result of an increase in research and development costs in connection with our key Investigator-sponsored Study Agreements and other research projects with third party vendors and universities. We expect our research and development activities to increase as we develop our existing product candidates and potentially acquire new product candidates, reflecting increasing costs associated with the following:

Current wording

The increase was a result of an increase in research and development costs in connection with our key Investigator-sponsored Study Agreements and other research projects with third party vendors and universities. We expect our research and development activities to increase as we develop our existing product candidates and potentially acquire new product candidates, reflecting increasing costs associated with the following:

Previous wording

For the three months ended March 31, 2025 and 2024, selling, general and administrative expenses were $64,432 and $86,066, respectively, a decrease of $21,634, or 25.1%. The decrease was primarily attributed to a decrease in proxy meeting fees of $19,000, and filing fees of $7,837, offset by a net increase in other general and administrative expenses of $5,203.

Current wording

For the six months ended June 30, 2025 and 2024, selling, general and administrative expenses were $117,405 and $157,736, respectively, a decrease of $40,331, or 25.6%. The decrease was primarily attributed to a decrease in proxy meeting fees of $19,000, advertising and promotion of $16,320, and filing fees of $9,891, offset by a net increase in other general and administrative expenses of $4,880.

Previous wording

For the three months ended March 31, 2025 and 2024, loss from continuing operations amounted to $1,094,121 and $879,513, respectively, an increase of $214,608, or 24.4%. The increase was primarily a result of the changes in operating expenses discussed above.

Current wording

For the three months ended June 30, 2025 and 2024, loss from operations amounted to $1,248,551 and $1,002,774, respectively, an increase of $245,777, or 24.5%. For the six months ended June 30, 2025 and 2024, loss from operations amounted to $2,342,672 and $1,882,287, respectively, an increase of $460,385, or 24.5%. The increase was primarily a result of the changes in operating expenses discussed above.

Previous wording

For the three months ended March 31, 2025 and 2024, other income amounted to $62,684 and $77,846, respectively, a decrease of $15,162, or 19.5%. The decrease in other income was primarily due to a decrease in interest and dividend income of $26,349, and a decrease in interest expense of $196, offset by an increase in foreign currency transaction loss of $8,695, and an increase in net realized gain on short-term investments of $2,688.

Current wording

For the three months ended June 30, 2025 and 2024, other income, net amounted to $44,258 and $70,995, respectively, a decrease of $26,737, or 37.7%. The decrease in other income was primarily due to a decrease in interest and dividend income of $32,125, offset by a decrease in foreign currency transaction loss of $2,929, an increase in net realized gain on short-term investments of $2,248, and a decrease in interest expense of $211.

Previous wording

For the three months ended March 31, 2025, net loss amounted to $1,031,437 or $0.23 per common share (basic and diluted), as compared to net loss of $801,667 or $0.28 per common share (basic and diluted) for the three months ended March 31, 2024, an increase of $229,770, or 28.7%. The change was primarily a result of the changes discussed above.

Current wording

For the three months ended June 30, 2025, net loss amounted to $1,204,293 or $0.19 per common share (basic and diluted), as compared to net loss of $931,779 or $0.31 per common share (basic and diluted) for the three months ended June 30, 2024, an increase of $272,514, or 29.2%. For the six months ended June 30, 2025, net loss amounted to $2,235,730 or $0.41 per common share (basic and diluted), as compared to net loss of $1,733,446 or $0.59 per common share (basic and diluted) for the six months ended June 30, 2024, an increase of $502,284, or 29.0%.

Previous wording

Liquidity is the ability of an enterprise to generate adequate amounts of cash to meet its needs for cash requirements. We had working capital of $4,418,858, $2,314,550 in short-term investments, and $3,136,880 in cash and cash equivalents as of March 31, 2025, and working capital of $5,455,483, $3,174,724 in short-term investments and $3,905,799 in cash and cash equivalents as of December 31, 2024, respectively.

Current wording

Liquidity is the ability of an enterprise to generate adequate amounts of cash to meet its needs for cash requirements. We had working capital of $5,323,134, $1,926,297 in short-term investments, and $4,333,672 in cash and cash equivalents as of June 30, 2025, and working capital of $5,455,483, $3,174,724 in short-term investments and $3,905,799 in cash and cash equivalents as of December 31, 2024, respectively.

Previous wording

The decrease in working capital of $1,036,625 was primarily attributable to a decrease in current assets of $1,507,319 primarily due to a decrease in cash of $769,919 and a decrease in short-term investments of $860,174, offset by an increase in prepaid expenses and other current assets of $121,774, and a decrease in current liabilities of $470,694.

Current wording

The decrease in working capital of $132,349 was primarily attributable to a decrease in current assets of $738,449 primarily due to a decrease in short-term investments of $1,248,427, offset by an increase in cash of $427,873 and an increase of prepaid expenses and other current assets of $82,105, and a decrease in current liabilities of $606,100.

Previous wording

Net cash used in operating activities for the three months ended March 31, 2025 and 2024 were $1,640,300 and $838,179, respectively, an increase of $802,121, or 95.7%.

Current wording

Net cash used in operating activities for the six months ended June 30, 2025 and 2024 were $2,925,568 and $1,569,982, respectively, an increase of $1,355,586, or 86.3%.

Previous wording

Net cash provided by investing activities for the three months ended March 31, 2025 and 2024 were $871,381 and $97,596, respectively, an increase of $773,785, or 792.8%.

Current wording

Net cash provided by investing activities for the six months ended June 30, 2025 and 2024 were $1,259,483 and $1,051,868, respectively, an increase of $207,615, or 19.7%.

Previous wording

As reflected in the accompanying unaudited consolidated financial statements, we generated a net loss of $1,031,437 and used cash in operations of $1,640,300 during the three months ended March 31, 2025. Additionally, we have an accumulated deficit of $16,296,128 on March 31, 2025. As of March 31, 2025, we had working capital of $4,418,858, $2,314,550 in short-term investments, and $3,136,880 in cash and cash equivalents.

Current wording

As reflected in the accompanying unaudited consolidated financial statements, we generated a net loss of $2,235,730 and used cash in operations of $2,925,568 during the six months ended June 30, 2025. Additionally, we have an accumulated deficit of $17,500,421 on June 30, 2025. As of June 30, 2025, we had working capital of $5,323,134, $1,926,297 in short-term investments, and $4,333,672 in cash and cash equivalents.

Previous wording

In accordance with ASC 730-10,“Research and Development-Overall,” research and development costs are expensed when incurred. Significant estimates during the three months ended March 31, 2025 and 2024 include the percentage of completion of certain research and development projects.

Current wording

In accordance with ASC 730-10,“Research and Development-Overall,” research and development costs are expensed when incurred. Significant estimates during the six months ended June 30, 2025 and 2024 include the percentage of completion of certain research and development projects.