Silo Pharma, Inc.

Previous 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).

Current wording

We are a diversified developmental-stage biopharmaceutical and cryptocurrency 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

In addition, as more fully described below, we have entered into a license agreement with the University of Maryland, Baltimore, and developing a Ketamine polymer implant. In addition, we into a 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 also entered into an exclusive license agreement with Columbia under which we have rights to certain patents and inventions relating to the treatment of Alzheimer’s disease and stress-induced affective disorders using Ketamine in combination with certain other compounds.

Current wording

In addition, as more fully described below, we have entered into a license agreement with the University of Maryland, Baltimore, and are developing a Ketamine polymer implant. In addition, we into a 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 also entered into an exclusive license agreement with Columbia under which we have rights to certain patents and inventions relating to the treatment of Alzheimer’s disease and stress-induced affective disorders using Ketamine in combination with certain other compounds.

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. 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 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

The Company’s strategy changed to include cryptocurrency treasury strategy in August 2025 which is expected to focus on the acquisition of leading digital assets. Management will focus a portion of its resources to this cryptocurrency strategy.

Current wording

The Company’s investment strategy changed to include cryptocurrency treasury strategy in August 2025 which is expected to focus on the acquisition of leading digital assets. Management will focus a portion of its resources to this cryptocurrency strategy. As of the date of this report, the Company holds approximately $400,000 in digital assets.

Previous wording

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

Current wording

Comparison of Our Results of Operations for the Three and Nine Months Ended September 30, 2025 and 2024

Previous 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.

Current wording

The following table summarizes the results of operations for the three and nine months ending September 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 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.

Current wording

During the three and nine months ended September 30, 2025 and 2024, we generated minimal revenues from operations. For the three months ended September 30, 2025 and 2024, revenues amounted to $18,025 and $18,025, respectively. For the nine months ended September 30, 2025 and 2024, revenues amounted to $54,076 and $54,076, 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 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.** **

Current wording

During the three months ended September 30, 2025 and 2024, cost of revenues amounted to $20,687 and $1,459, respectively. During the nine months ended September 30, 2025 and 2024, cost of revenues amounted to $23,606 and $4,378, respectively. Cost of revenues consisted of license fees related to the UMB License and Sublicense Agreement, which are being amortized into cost of revenues. Effective July 8, 2025, the estimated useful lives of the unamortized license and sublicense fees were changed to reflect the termination of the Master License Agreement and the expiration of the subsequent Option Agreement on March 31, 2026, resulting in accelerated amortization expense during the three and nine months ended September 30, 2025.

Previous wording

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

Current wording

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

Previous 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.

Current wording

For the three months ended September 30, 2025 and 2024, compensation expense was $227,132 and $169,736, respectively, an increase of $57,396, or 33.8%. This increase primarily resulted from an increase in stock-based compensation of $47,267, health insurance of $9,611 and payroll expense and related benefits of $518.

Previous wording

For the six months ended June 30, 2025 and 2024, compensation expense was $373,774 and $341,727, respectively, an increase of $32,047, or 9.4%. This increase primarily resulted from an increase in stock-based compensation of $17,445 and payroll expense and related benefits of $14,602.

Current wording

For the nine months ended September 30, 2025 and 2024, compensation expense was $600,906 and $511,463, respectively, an increase of $89,443, or 17.5%. This increase primarily resulted from an increase in stock-based compensation of $64,712, health insurance of $23,411, and payroll expense and related benefits of $1,320.

Previous wording

For the six months ended June 30, 2025 and 2024, professional fees were $573,416 and $641,067, respectively, a decrease of $67,651, or 10.6%. The decrease was primarily attributable to a decrease in consulting fees of $47,949, and a decrease in investor relations of $45,215, offset by an increase in legal fees of $15,090, and an increase in accounting and auditing fees of $10,423.

Current wording

For the three months ended September 30, 2025 and 2024, professional fees were $313,194 and $258,887, respectively, an increase of $54,307, or 21.0%. The increase was primarily attributable to an increase in legal fees of $57,817, increase in consulting fees of $8,607, and an increase in accounting and auditing fees $4,071, offset by a decrease in investor relations of $16,188.

Previous 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.

Current wording

For the nine months ended September 30, 2025 and 2024, professional fees were $886,610 and $899,954, respectively, a decrease of $13,344, or 1.5%. The decrease was primarily attributable to a decrease in investor relations of $61,404, and a decrease in consulting fees of $39,342, offset by an increase in legal fees of $72,907, and an increase in accounting and auditing fees of $14,495.

Previous wording

For the three months ended June 30, 2025 and 2024, we incurred research and development expense of $717,247 and $392,824, respectively, an increase of $324,423, or 82.6%. For the six months ended June 30, 2025 and 2024, we incurred research and development expense of $1,311,209 and $774,889, respectively, an increase of $536,320, or 69.2%.

Current wording

For the three months ended September 30, 2025 and 2024, we incurred research and development expense of $543,615 and $517,548, respectively, an increase of $26,067, or 5.0%. For the nine months ended September 30, 2025 and 2024, we incurred research and development expense of $1,854,824 and $1,292,437, respectively, an increase of $562,387, or 43.5%.

Previous 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:

Current wording

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 June 30, 2025 and 2024, selling, general and administrative expenses were $52,973 and $71,670, respectively, a decrease of $18,697, or 26.1%. The decrease was primarily attributed to a decrease in advertising and promotion of $19,386, offset by a net increase in other general and administrative expenses of $689.

Current wording

For the three months ended September 30, 2025 and 2024, selling, general and administrative expenses were $64,863 and $80,450, respectively, a decrease of $15,587, or 19.4%. The decrease was primarily attributed to a decrease in filing fees of $17,045, offset by a net increase in other general and administrative expenses of $1,458.

Previous 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.

Current wording

For the nine months ended September 30, 2025 and 2024, selling, general and administrative expenses were $182,268 and $238,186, respectively, a decrease of $55,918, or 23.5%. The decrease was primarily attributed to a decrease in filing fees of $26,936, proxy meeting expense of $18,045, and advertising and promotion of $17,006, offset by a net increase in other general and administrative expenses of $6,069.

Previous 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.

Current wording

For the three months ended September 30, 2025 and 2024, loss from operations amounted to $1,151,466 and $1,010,055, respectively, an increase of $141,411, or 14.0%. For the nine months ended September 30, 2025 and 2024, loss from operations amounted to $3,494,138 and $2,892,342, respectively, an increase of $601,796, or 20.8%. The increase was primarily a result of the changes in operating expenses discussed above.

Previous 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.

Current wording

For the three months ended September 30, 2025 and 2024, other income, net amounted to $41,028 and $81,241, respectively, a decrease of $40,213, or 49.5%. The decrease in other income was primarily due to a decrease in interest and dividend income of $40,336 and an increase in unrealized loss on crypto assets of $2,690, offset by a decrease in foreign currency transaction loss of $2,618 and a decrease in interest expense of $195.

Previous wording

For the six months ended June 30, 2025 and 2024, other income, net amounted to $106,942 and $148,841, respectively, a decrease of $41,899, or 28.2%. The decrease in other income was primarily due to a decrease in interest and dividend income of $58,474, offset by a decrease in foreign currency transaction loss of $11,624, an increase in net realized gain on short-term investments of $4,936, and a decrease in interest expense of $15.

Current wording

For the nine months ended September 30, 2025 and 2024, other income, net amounted to $147,970 and $230,082, respectively, a decrease of $82,112, or 35.7%. The decrease in other income was primarily due to a decrease in interest and dividend income of $98,810 and an increase in unrealized loss on crypto assets of $2,690, offset by a decrease in foreign currency transaction loss of $14,242, an increase in net realized gain on short-term investments of $4,936, and a decrease in interest expense of $210.

Previous 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%.

Current wording

For the three months ended September 30, 2025, net loss amounted to $1,110,438 or $0.12 per common share (basic and diluted), as compared to net loss of $928,814 or $0.22 per common share (basic and diluted) for the three months ended September 30, 2024, an increase of $181,624, or 19.6%. For the nine months ended September 30, 2025, net loss amounted to $3,346,168 or $0.50 per common share (basic and diluted), as compared to net loss of $2,662,260 or $0.78 per common share (basic and diluted) for the nine months ended September 30, 2024, an increase of $683,908, or 25.7%.

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 $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.

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 $5,456,030, $1,948,579 in short-term investments, and $3,917,627 in cash and cash equivalents as of September 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 $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.

Current wording

The increase in working capital of $547 was primarily attributable to a decrease in current liabilities of $947,658, offset by a decrease in current assets of $947,111 primarily due to a decrease in short-term investments of $1,226,145, offset by an increase of prepaid expenses and other current assets of $194,923, an increase in crypto assets of $72,283, and an increase in cash of $11,828.

Previous 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%.

Current wording

Net cash used in operating activities for the nine months ended September 30, 2025 and 2024 were $3,881,061 and $2,916,482, respectively, an increase of $964,579, or 33.1%.

Previous 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%.

Current wording

Net cash provided by investing activities for the nine months ended September 30, 2025 and 2024 were $1,164,009 and $1,011,436, respectively, an increase of $152,573 or 15.1%.

Previous wording

Net cash provided by financing activities for the six months ended June 30, 2025 and 2024 were $2,093,958 and $1,500,106, respectively, an increase of $593,852, or 39.6%.

Current wording

Net cash provided by financing activities for the nine months ended September 30, 2025 and 2024 were $2,728,880 and $3,241,628, respectively, a decrease of $512,748, or 15.8%.

Previous 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.

Current wording

As reflected in the accompanying unaudited consolidated financial statements, we generated a net loss of $3,346,168 and used cash in operations of $3,881,061 during the nine months ended September 30, 2025. Additionally, we have an accumulated deficit of $18,610,859 on September 30, 2025. As of September 30, 2025, we had working capital of $5,456,030, $1,948,579 in short-term investments, and $3,917,627 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 six months ended June 30, 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 nine months ended September 30, 2025 and 2024 include the percentage of completion of certain research and development projects.