Silo Pharma's R&D Spend Soars 69% Amid Widening Losses

TL;DR

**SILO is burning cash on R&D, but fresh capital injections keep the lights on for now – a speculative bet on future drug success.**

AI Summary

Silo Pharma, Inc. (SILO) reported a net loss of $2,235,730 for the six months ended June 30, 2025, a significant increase from the $1,733,446 net loss in the prior-year period. Revenue from license fees remained flat at $36,051 for both periods. The company's operating expenses surged by 24.04% to $2,375,804, primarily driven by a 69.27% increase in research and development (R&D) expenses to $1,311,209, reflecting its focus on developing novel therapeutics. Despite the increased losses, SILO maintained a positive working capital of $5,323,134 as of June 30, 2025, with cash and cash equivalents of $4,333,672 and short-term investments of $1,926,297. The company raised $1,593,897 from the sale of common stock and pre-funded warrants and an additional $500,061 from warrant exercises during the six-month period, bolstering its liquidity. SILO believes it has sufficient cash and liquid short-term investments to meet its obligations for at least twelve months from the filing date, mitigating prior going concern doubts.

Why It Matters

Silo Pharma's substantial increase in R&D spending, up 69.27% to $1,311,209, signals an aggressive push into its therapeutic pipeline, which could be a high-risk, high-reward strategy for investors. While net losses widened to $2,235,730, the company's ability to raise over $2 million through equity and warrant exercises demonstrates continued investor confidence in its long-term potential, particularly in the competitive biopharmaceutical space targeting conditions like PTSD and Alzheimer's. This capital infusion is crucial for funding clinical trials and development, directly impacting the company's ability to bring new treatments to patients and compete with larger pharmaceutical players. For employees, this indicates job security and continued investment in their projects, while customers could eventually benefit from novel therapies.

Risk Assessment

Risk Level: high — Silo Pharma reported a net loss of $2,235,730 for the six months ended June 30, 2025, and an accumulated deficit of $17,500,421. The company's significant increase in research and development expenses to $1,311,209, while necessary for growth, contributes to its substantial cash burn, with $2,925,568 used in operating activities. This high burn rate, coupled with reliance on future financing, indicates a high-risk profile.

Analyst Insight

Investors should monitor Silo Pharma's R&D pipeline progress and clinical trial milestones closely, as these are critical for future valuation. Given the high burn rate and developmental stage, consider this a speculative investment and allocate capital accordingly, understanding the significant risk of further dilution or failure to bring products to market.

Financial Highlights

debt To Equity

N/A

revenue

$36,051

operating Margin

-649.6%

total Assets

$6,652,507

total Debt

$1,735,424

net Income

-$2,235,730

eps

-$0.41

gross Margin

91.9%

cash Position

$4,333,672

revenue Growth

0.0%

Revenue Breakdown

Key Numbers

• $2,235,730 — Net Loss (Increased from $1,733,446 in prior-year period for six months ended June 30, 2025)
• $1,311,209 — Research and Development Expenses (Increased by 69.27% for six months ended June 30, 2025)
• $2,925,568 — Cash Used in Operating Activities (For the six months ended June 30, 2025)
• $4,333,672 — Cash and Cash Equivalents (As of June 30, 2025)
• $5,323,134 — Working Capital (As of June 30, 2025, mitigating going concern doubts)
• $1,593,897 — Net Proceeds from Stock and Warrants (From sale of common stock and pre-funded warrants for six months ended June 30, 2025)
• $500,061 — Proceeds from Warrant Exercises (For six months ended June 30, 2025)
• $17,500,421 — Accumulated Deficit (As of June 30, 2025)
• 8,651,128 — Common Shares Outstanding (As of June 30, 2025, up from 4,484,456 at December 31, 2024)
• $36,051 — License Fee Revenue (Flat for the six months ended June 30, 2025 and 2024)

Key Players & Entities

• Silo Pharma, Inc. (company) — registrant
• SEC (regulator) — filing oversight
• Nasdaq Stock Market LLC (company) — exchange where SILO is registered
• Federal Deposit Insurance Corporation (regulator) — insures bank deposits
• Securities Investor Protection Corporation (regulator) — insures securities accounts
• PTSD (other) — medical condition targeted by SPC-15
• Alzheimer's disease (other) — medical condition targeted by SPC-14
• fibromyalgia (other) — medical condition targeted by SP-26
• multiple sclerosis (other) — medical condition targeted by SPU-16

FAQ

Risk Factors

• Sustained Net Losses and Cash Burn [high — financial]: The company reported a net loss of $2,235,730 for the six months ended June 30, 2025, an increase from $1,733,446 in the prior year. Operating expenses surged by 24.04% to $2,375,804, primarily due to a 69.27% increase in R&D expenses. This continued cash burn necessitates ongoing financing to sustain operations.
• Dependence on Future Financing [high — financial]: Despite a positive working capital of $5,323,134 and cash reserves of $4,333,672 as of June 30, 2025, the company's ability to meet its obligations for at least twelve months relies on continued access to capital markets. The company raised $1,593,897 from stock/warrant sales and $500,061 from warrant exercises, indicating reliance on equity financing.
• Development Stage and Regulatory Hurdles [high — operational]: Silo Pharma is a developmental-stage biopharmaceutical company focused on novel therapeutics for conditions like PTSD, anxiety, and fibromyalgia. Success is contingent on successful clinical trials, regulatory approvals, and market adoption, all of which carry significant inherent risks and uncertainties.
• Limited Revenue Generation [medium — market]: The company's sole revenue stream, license fees, remained flat at $36,051 for the six months ended June 30, 2025. This minimal revenue highlights the company's dependence on its drug development pipeline for future profitability.
• Dilution from Equity Issuances [medium — financial]: The company's common shares outstanding increased significantly from 4,484,456 at December 31, 2024, to 8,651,128 at June 30, 2025, due to stock sales and warrant exercises. This substantial dilution can negatively impact existing shareholders' ownership percentage and potentially the stock price.
• Intensified Research and Development Spending [medium — operational]: R&D expenses increased by 69.27% to $1,311,209 for the six months ended June 30, 2025. While this reflects a strategic focus on pipeline development, it also significantly contributes to the widening net loss and increased cash burn.

Industry Context

Silo Pharma operates in the highly competitive biopharmaceutical sector, focusing on niche therapeutic areas like PTSD, anxiety, and chronic pain. The industry is characterized by long development cycles, high R&D costs, and significant regulatory hurdles. Success hinges on innovation, clinical trial efficacy, and securing substantial funding for pipeline advancement and eventual commercialization.

Regulatory Implications

As a biopharmaceutical company, Silo Pharma is subject to stringent regulations from bodies like the FDA. The development and approval process for new therapeutics is lengthy, costly, and uncertain. Failure to meet regulatory standards or obtain necessary approvals for its drug candidates (SPC-15, SP-26, SPC-14, SPU-16) poses a significant risk to the company's future.

What Investors Should Do

1. Monitor R&D Pipeline Progress
2. Assess Future Financing Needs
3. Evaluate Revenue Diversification Strategy
4. Analyze Shareholder Dilution

Key Dates

• 2025-06-30: End of Six-Month Period — Reporting period for the 10-Q, showing increased net loss, significant R&D investment, and bolstered cash position through financing.
• 2025-03-28: Form 10-K Filing — Previous annual report filing, referenced for accounting policies and prior year financial data.
• 2024-12-31: End of Fiscal Year — Prior year-end balance sheet comparison point, showing lower cash and higher current liabilities.

Glossary

Accumulated Deficit

The total net losses of a company since its inception that have not been offset by net income. (Indicates the company has historically incurred more expenses than revenues, with a deficit of $17,500,421 as of June 30, 2025.)

Working Capital

The difference between a company's current assets and current liabilities. It indicates a company's short-term financial health. (Silo Pharma maintained positive working capital of $5,323,134 as of June 30, 2025, which is crucial for meeting short-term obligations.)

Pre-funded Warrants

A type of warrant that allows the holder to purchase shares of common stock at a nominal exercise price, often used in financing rounds to avoid immediate dilution. (Silo Pharma raised $1,593,897 from the sale of common stock and pre-funded warrants, indicating a financing strategy.)

Developmental-Stage Company

A company that has not yet generated significant revenue and is focused on research, development, and bringing products to market. (Silo Pharma is described as a developmental-stage biopharmaceutical company, meaning its financial performance is heavily tied to R&D success and future product commercialization.)

Cash Burn Rate

The rate at which a company is spending its cash reserves, typically used for companies that are not yet profitable. (The net loss and cash used in operating activities of $2,925,568 for six months indicate a significant cash burn rate that needs to be managed.)

Year-Over-Year Comparison

Compared to the prior-year period, Silo Pharma's net loss widened from $1,733,446 to $2,235,730 for the six months ended June 30, 2025, driven by a 24.04% increase in operating expenses, particularly a 69.27% surge in R&D. While revenue remained flat at $36,051, the company's cash position saw a slight decrease from $4,506,300 to $4,333,672, though overall working capital remained strong at $5,323,134. The number of common shares outstanding nearly doubled, reflecting significant equity financing activities.

Key Financial Figures

• $0.0001 — ich registered Common Stock, par value $0.0001 per share SILO The Nasdaq Stock Market

Filing Documents

• ea0252531-10q_silopharma.htm (10-Q) — 784KB
• ea025253101ex31-1_silopharma.htm (EX-31.1) — 11KB
• ea025253101ex31-2_silopharma.htm (EX-31.2) — 11KB
• ea025253101ex32-1_silopharma.htm (EX-32.1) — 5KB
• ea025253101ex32-2_silopharma.htm (EX-32.2) — 4KB
• 0001213900-25-075693.txt ( ) — 5293KB
• silo-20250630.xsd (EX-101.SCH) — 53KB
• silo-20250630_cal.xml (EX-101.CAL) — 30KB
• silo-20250630_def.xml (EX-101.DEF) — 242KB
• silo-20250630_lab.xml (EX-101.LAB) — 491KB
• silo-20250630_pre.xml (EX-101.PRE) — 257KB
• ea0252531-10q_silopharma_htm.xml (XML) — 472KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 1 Consolidated Balance Sheets as of June 30, 2025 (Unaudited) and December 31, 2024 1 Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended June 30, 2025 and 2024 (Unaudited) 2 Consolidated Statements of Changes in Stockholders' Equity for the Three and Six Months Ended June 30, 2025 and 2024 (Unaudited) 3 Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 (Unaudited) 4 Condensed Notes to Consolidated Financial Statements (Unaudited) 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 28 Item 4.

Controls and Procedures

Controls and Procedures 28

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 29 Item 1A.

Risk Factors

Risk Factors 29 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33 Item 3. Defaults Upon Senior Securities 34 Item 4. Mine Safety Disclosures 34 Item 5. Other Information 34 Item 6. Exhibits 35

SIGNATURES

SIGNATURES 36 i CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking report, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans and objectives of management and expected market growth, are forward-looking statements. In some cases, you can identify forward-looking "expect," "plan,", "anticipate," "believe," "estimate," "intend," "predict," "seek," "contemplate," "project," "continue," "potential," "ongoing" or the negative of these terms or other comparable terminology. Any forward-looking statements are qualified in their entirety by reference to the risk factors discussed throughout this Quarterly Report on Form 10-Q. Some of the risks, uncertainties and assumptions that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include, but are not limited to: our ability to obtain additional funds for our operations; our financial performance; risks relating to the timing and costs of clinical trials and the timing and costs of other expenses; risks related to market acceptance of products; intellectual property risks; the impact of government regulation and developments relating to our competitors or our industry; our competitive position; our industry environment; our anticipated financial and operating results, including anticipated sources of revenues; assumptions regarding the size of the available market, benefits of our products, product pricing and timing of product launches; our estimates of our expenses, losses, future revenue and capital requirements, including our needs for additional financing; our ability

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS SILO PHARMA, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS June 30, December 31, 2025 2024 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 4,333,672 $ 3,905,799 Short-term investments 1,926,297 3,174,724 Prepaid expenses and other current assets 113,062 30,957 Total Current Assets 6,373,031 7,111,480 LONG-TERM ASSETS: Prepaid expenses and other assets - non-current 56,226 59,145 Intangible assets, net 223,250 241,215 Total Long-Term Assets 279,476 300,360 Total Assets $ 6,652,507 $ 7,411,840 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and accrued expenses $ 977,795 $ 1,583,895 Deferred revenue - current portion 72,102 72,102 Total Current Liabilities 1,049,897 1,655,997 LONG-TERM LIABILITIES: Deferred revenue - long-term portion 685,527 721,578 Total Long-Term Liabilities 685,527 721,578 Total Liabilities 1,735,424 2,377,575 Commitment and Contingencies (see Note 7) STOCKHOLDERS' EQUITY: Preferred stock, $ 0.0001 par value, 5,000,000 shares authorized: none designated as of June 30, 2025 and December 31, 2024 Common stock, $ 0.0001 par value, 100,000,000 shares authorized; 8,651,128 and 4,484,456 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 865 449 Additional paid-in capital 22,407,075 20,296,088 Accumulated other comprehensive income 9,564 2,419 Accumulated deficit ( 17,500,421 ) ( 15,264,691 ) Total Stockholders' Equity 4,917,083 5,034,265 Total Liabilities and Stockholders' Equity $ 6,652,507 $ 7,411,840 See accompanying condensed notes to unaudited consolidated

financial statements

financial statements. -1- SILO PHARMA, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) For the Three Months Ended For the Six Months Ended June 30, June 30, 2025 2024 2025 2024 LICENSE FEE REVENUE $ 18,025 $ 18,025 $ 36,051 $ 36,051 COST OF REVENUES 1,459 1,459 2,919 2,919 GROSS PROFIT 16,566 16,566 33,132 33,132 OPERATING EXPENSES: Compensation expense 195,305 168,381 373,774 341,727 Professional fees 299,592 386,465 573,416 641,067 Research and development 717,247 392,824 1,311,209 774,889 Other selling, general and administrative expenses 52,973 71,670 117,405 157,736 Total operating expenses 1,265,117 1,019,340 2,375,804 1,915,419 LOSS FROM OPERATIONS ( 1,248,551 ) ( 1,002,774 ) ( 2,342,672 ) ( 1,882,287 ) OTHER INCOME (EXPENSE): Interest and dividend income, net 44,917 77,042 106,745 165,219 Interest expense ( 1,648 ) ( 1,859 ) ( 3,714 ) ( 3,729 ) Net realized gain (loss) on short-term debt investments 989 ( 1,259 ) 3,911 ( 1,025 ) Foreign currency transaction loss - ( 2,929 ) - ( 11,624 ) Total other income, net 44,258 70,995 106,942 148,841 LOSS BEFORE PROVISION FOR INCOME TAXES ( 1,204,293 ) ( 931,779 ) ( 2,235,730 ) ( 1,733,446 ) Provision for income taxes - - - - NET LOSS $ ( 1,204,293 ) $ ( 931,779 ) $ ( 2,235,730 ) $ ( 1,733,446 ) COMPREHENSIVE LOSS: Net loss $ ( 1,204,293 ) $ ( 931,779 ) $ ( 2,235,730 ) $ ( 1,733,446 ) Other comprehensive income (loss): Unrealized gain (loss) on short-term debt investments ( 1,140 ) ( 18,078 ) 7,145 14,253 Total comprehensive loss $ ( 1,205,433 ) $ ( 949,857 ) $ ( 2,228,585 ) $ ( 1,719,193 ) NET LOSS PER COMMON SHARE: Basic and diluted $ ( 0.19 ) $ ( 0.31 ) $ ( 0.41 ) $ ( 0.59 ) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic and diluted 6,279,733 3,052,666 5,387,587 2,959,800 See accompanying condensed notes to u

financial statements

financial statements. -2- SILO PHARMA, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (Unaudited) Additional Accumulated Other Total Common Stock Paid In Treasury Stock Comprehensive Accumulated Stockholders' Shares Amount Capital Shares Amount Income Deficit Equity Balance, December 31, 2024 4,484,456 $ 449 $ 20,296,088 — $ — $ 2,419 $ ( 15,264,691 ) $ 5,034,265 Accumulated other comprehensive gain - short-term investments — — — — — 8,285 — 8,285 Net loss — — — — — — ( 1,031,437 ) ( 1,031,437 ) Balance, March 31, 2025 4,484,456 449 20,296,088 — — 10,704 ( 16,296,128 ) 4,011,113 Sale of common stock, net of offering costs and expenses of $ 406,044 2,723,336 272 1,227,685 — — — — 1,227,957 Sale of pre-funded warrants — — 365,940 — — — — 365,940 Exercise of warrants 1,443,336 144 499,917 — — — — 500,061 Accretion of stock-based compensation in connection with stock option grants — — 17,445 — — — — 17,445 Accumulated other comprehensive loss - short-term investments — — — — — ( 1,140 ) — ( 1,140 ) Net loss — — — — — — ( 1,204,293 ) ( 1,204,293 ) Balance, June 30, 2025 8,651,128 $ 865 $ 22,407,075 — $ — $ 9,564 $ ( 17,500,421 ) $ 4,917,083 Additional Accumulated Other Total Common Stock Paid In Treasury Stock Comprehensive Accumulated Stockholders' Shares Amount Capital Shares Amount Income (Loss) Deficit Equity Balance, December 31, 2023 3,159,096 $ 316 $ 17,525,714 252,855 $ ( 471,121 ) $ ( 6,227 ) $ ( 10,871,811 ) $ 6,176,871 Purchase of treasury stock — — — 72,790 ( 115,452 ) — — ( 115,452 ) Accumulated other comprehensive gain - short-term investments — — — — — 32,331 — 32,331 Net loss — — — — — — ( 801,667 ) ( 801,667 ) Balance, March 31, 2024 3,159,096 316 17,525,714 325

financial statements

financial statements. -3- SILO PHARMA, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the Six Months Ended June 30, 2025, 2024, CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ ( 2,235,730 ) $ ( 1,733,446 ) Adjustments to reconcile net loss to net cash used in operating activities Amortization expense 5,565 — Net realized (gain) loss on short-term investments ( 3,911 ) 1,025 Stock-based compensation 17,445 — Change in operating assets and liabilities: Prepaid expenses and other current assets ( 79,186 ) ( 101,399 ) Accounts payable and accrued expenses ( 593,700 ) 299,889 Deferred revenue ( 36,051 ) ( 36,051 ) NET CASH USED IN OPERATING ACTIVITIES ( 2,925,568 ) ( 1,569,982 ) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from the sale of short-term debt investments 1,315,653 1,149,320 Purchases of short-term investments ( 56,170 ) ( 97,452 ) NET CASH PROVIDED BY INVESTING ACTIVITIES 1,259,483 1,051,868 CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds from sale of common stock and pre-fund warrants 1,593,897 1,673,216 Proceeds from exercise of warrants 500,061 3 Purchase of treasury stock — ( 173,113 ) NET CASH PROVIDED BY FINANCING ACTIVITIES 2,093,958 1,500,106 NET INCREASE IN CASH AND CASH EQUIVALENTS 427,873 981,992 CASH AND CASH EQUIVALENTS - beginning of the period 3,905,799 3,524,308 CASH AND CASH EQUIVALENTS - end of the period $ 4,333,672 $ 4,506,300 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ 3,714 $ 3,729 Income taxes $ — $ — Non-cash investing and financing activities: Unrealized gain on short-term investments $ 7,145 $ 14,253 Intangible assets acquired in exchange for accounts payable and accrued expenses $ — $ 247,400 Decrease in intangible assets and accounts payable and accrued expenses $ 12,400 $ — See accompanying condensed notes to unaudited consolidated

financial statements

financial statements. -4- SILO PHARMA, INC. AND SUBSIDIARY CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2025 (UNAUDITED) NOTE 1 – ORGANIZATION AND BUSINESS Silo Pharma, Inc. (the "Company") was incorporated in the State of New York on July 13, 2010 , under the name Gold Swap, Inc. On May 21, 2019, the Company filed an amendment to its Certificate of Incorporation with the State of Delaware to change its name from Point Capital, Inc. to Uppercut Brands, Inc. Thereafter, on September 24, 2020, the Company filed an amendment to its Certificate of Incorporation with the State of Delaware to change its name from Uppercut Brands, Inc. to Silo Pharma, Inc. On January 24, 2013, the Company changed its state of incorporation from New York to Delaware. On December 19, 2023, the Company changed its state of incorporation from the State of Delaware to the State of Nevada. On April 8, 2020, the Company incorporated a new wholly-owned subsidiary, Silo Pharma Inc., in the State of Florida. The Company is a diversified developmental-stage biopharmaceutical and cryptocurrency treasury company. The Company's therapeutic focus is on developing novel therapeutics that address underserved conditions including PTSD, stress-induced anxiety disorders, fibromyalgia, and central nervous system (CNS) diseases. The Company is focused on developing (i) an intranasal drug targeting PTSD and stress-induced anxiety disorders (SPC-15); (ii) a time-release ketamine-based loaded implant for fibromyalgia and chronic pain relief (SP-26); (iii) an intranasal compound for the treatment of Alzheimer's disease (SPC-14); and (iv) a CNS-homing peptide targeting the central nervous system in multiple sclerosis (SPU-16). NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial

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