Silo Pharma's R&D Soars 43% Amidst Widening Losses

TL;DR

**SILO is burning cash on R&D with no immediate revenue upside, making it a high-risk bet on future drug development success.**

AI Summary

Silo Pharma, Inc. (SILO) reported a net loss of $3,346,168 for the nine months ended September 30, 2025, an increase from a net loss of $2,662,260 in the same period of 2024. The company's revenue, primarily from license fees, remained flat at $54,076 for both periods. Operating expenses significantly increased, with research and development (R&D) rising to $1,854,824 in 2025 from $1,292,437 in 2024, representing a 43.5% increase. Compensation expense also grew to $600,906 from $511,463. Despite these losses, SILO maintained a positive working capital of $5,456,030 as of September 30, 2025, with cash and cash equivalents of $3,917,627 and short-term investments of $1,948,579. The company raised $2,728,880 from financing activities, including the sale of common stock and warrants, which helped mitigate going concern doubts. SILO is a diversified developmental-stage biopharmaceutical and cryptocurrency company focusing on novel therapeutics for PTSD, anxiety, fibromyalgia, Alzheimer's, and multiple sclerosis, while also holding crypto assets valued at $72,283.

Why It Matters

Silo Pharma's substantial increase in R&D spending, up 43.5% to $1.85 million, signals a strong commitment to its drug development pipeline, which could be a long-term positive for investors if clinical trials yield favorable results. However, the widening net loss to $3.35 million and continued reliance on equity financing for operations highlight significant financial risks. For employees, this R&D focus suggests job stability and growth in scientific roles, while customers await potential breakthroughs in underserved conditions like PTSD and Alzheimer's. In the competitive biopharmaceutical landscape, SILO's ability to convert R&D into marketable therapies will determine its market position and investor confidence.

Risk Assessment

Risk Level: high — Silo Pharma reported a net loss of $3,346,168 for the nine months ended September 30, 2025, and used $3,881,061 in cash from operations. The company has an accumulated deficit of $18,610,859, indicating a history of significant losses and no current profitability. While they have $5,456,030 in working capital, their business model is highly dependent on successful, costly, and uncertain drug development.

Analyst Insight

Investors should approach SILO with extreme caution, recognizing it as a highly speculative investment. Monitor upcoming clinical trial results for SPC-15, SP-26, SPC-14, and SPU-16, as these are critical catalysts. Given the high R&D spend and lack of profitability, consider this a long-term, high-risk play on potential drug breakthroughs, not a short-term value investment.

Financial Highlights

debt To Equity

0.27

revenue

$54,076

operating Margin

-6463.0%

total Assets

$6,384,681

total Debt

$1,375,841

net Income

-$3,346,168

eps

-$0.50

gross Margin

56.3%

cash Position

$3,917,627

revenue Growth

0.0%

Revenue Breakdown

Key Numbers

• $3,346,168 — Net Loss (Increased from $2,662,260 in 2024 for the nine months ended September 30)
• $1,854,824 — Research and Development Expenses (Increased 43.5% from $1,292,437 in 2024 for the nine months ended September 30)
• $54,076 — License Fee Revenue (Remained flat for the nine months ended September 30, 2025 and 2024)
• $3,881,061 — Cash Used in Operating Activities (For the nine months ended September 30, 2025)
• $18,610,859 — Accumulated Deficit (As of September 30, 2025)
• $5,456,030 — Working Capital (As of September 30, 2025)
• $3,917,627 — Cash and Cash Equivalents (As of September 30, 2025)
• $2,728,880 — Net Cash Provided by Financing Activities (For the nine months ended September 30, 2025)
• 13,318,273 — Common Stock Shares Outstanding (As of November 13, 2025)

Key Players & Entities

• Silo Pharma, Inc. (company) — registrant
• Nasdaq Stock Market LLC (regulator) — exchange where common stock is registered
• SEC (regulator) — filing authority
• Nevada (company) — state of incorporation
• SPC-15 (company) — intranasal drug targeting PTSD and stress-induced anxiety disorders
• SP-26 (company) — time-release ketamine-based loaded implant for fibromyalgia and chronic pain relief
• SPC-14 (company) — intranasal compound for the treatment of Alzheimer's disease
• SPU-16 (company) — CNS-homing peptide targeting the central nervous system in multiple sclerosis

FAQ

Risk Factors

• Significant Accumulated Deficit [high — financial]: The company has an accumulated deficit of $18,610,859 as of September 30, 2025. This indicates a history of net losses, which raises concerns about the company's long-term financial viability and its ability to achieve profitability.
• Increasing Net Loss [high — financial]: The net loss for the nine months ended September 30, 2025, increased to $3,346,168 from $2,662,260 in the prior year period. This widening loss, coupled with flat revenue, suggests increasing operational inefficiencies or escalating costs.
• High R&D Expenses [medium — operational]: Research and development expenses surged by 43.5% to $1,854,824 for the nine months ended September 30, 2025, from $1,292,437 in the same period of 2024. While R&D is crucial for a pharma company, such a significant increase without corresponding revenue growth warrants scrutiny.
• Dependence on Financing Activities [high — financial]: The company raised $2,728,880 from financing activities, including stock and warrant sales, to mitigate going concern doubts. This reliance on external funding highlights a lack of self-sustaining operational cash flow.
• Biopharmaceutical Development Risks [high — market]: As a developmental-stage biopharmaceutical company, SILO faces inherent risks in drug development, including clinical trial failures, regulatory hurdles, and lengthy approval processes. Success is not guaranteed, and significant investment is required with no certainty of return.
• Diversification into Cryptocurrency [low — market]: The company's diversification into cryptocurrency assets, valued at $72,283, introduces volatility and regulatory risks associated with the digital asset market, which are distinct from its core biopharmaceutical operations.

Industry Context

Silo Pharma operates in the highly competitive and capital-intensive biopharmaceutical industry, characterized by long development cycles, significant R&D investment, and stringent regulatory oversight. The industry is driven by innovation in therapeutic areas such as neurological disorders (PTSD, Alzheimer's, MS) and pain management (fibromyalgia). Diversification into cryptocurrency assets introduces an element of speculative technology, a departure from traditional pharma business models.

Regulatory Implications

As a biopharmaceutical company, Silo Pharma is subject to rigorous regulatory scrutiny from bodies like the FDA for drug development and approval. Any missteps in clinical trials or manufacturing can lead to significant delays or outright rejection. The company's cryptocurrency holdings also expose it to evolving and uncertain digital asset regulations.

What Investors Should Do

1. Monitor R&D spending and pipeline progress closely.
2. Evaluate the sustainability of operations based on cash burn rate.
3. Assess the strategic rationale and risk of cryptocurrency holdings.
4. Analyze the impact of share dilution from financing activities.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reported a net loss of $3,346,168 and R&D expenses of $1,854,824, indicating increased operational costs and losses compared to the prior year.
• 2024-09-30: Nine months ended September 30, 2024 — Reported a net loss of $2,662,260 and R&D expenses of $1,292,437, serving as a baseline for year-over-year comparison.
• 2025-12-31: As of December 31, 2024 — Previous period balance sheet data, showing total assets of $7,411,840 and total liabilities of $2,377,575.
• 2025-11-13: Common Stock Shares Outstanding — 13,318,273 shares outstanding as of November 13, 2025, indicating a significant increase from prior periods due to stock sales.

Glossary

Accumulated Deficit

The cumulative net losses of a company since its inception that have not been offset by net income. (Indicates the company's historical unprofitability, with a significant deficit of $18,610,859 as of September 30, 2025.)

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and operational liquidity. (Silo Pharma maintains positive working capital of $5,456,030 as of September 30, 2025, despite its net losses.)

Crypto Assets

Digital or virtual assets that are secured by cryptography, typically on a decentralized ledger known as a blockchain. (Silo Pharma holds crypto assets valued at $72,283 as of September 30, 2025, adding a new, volatile asset class to its balance sheet.)

Developmental-Stage Biopharmaceutical Company

A company focused on discovering, developing, and potentially commercializing new drugs or therapies, which are typically in early stages of research and clinical trials. (Defines Silo Pharma's core business model and the associated high risks and long timelines for product development.)

Going Concern

An accounting assumption that a business will continue to operate for the foreseeable future without the threat of liquidation. (The company's financing activities were undertaken to mitigate doubts about its ability to continue as a going concern.)

Year-Over-Year Comparison

For the nine months ended September 30, 2025, Silo Pharma reported a net loss of $3,346,168, an increase from $2,662,260 in the same period of 2024. Revenue remained flat at $54,076. Operating expenses, particularly R&D, saw a substantial rise of 43.5% to $1,854,824. While cash and cash equivalents remained stable at $3,917,627, the company's accumulated deficit grew to $18,610,859. The company continues to rely on financing activities, raising $2,728,880, to support its operations and mitigate going concern risks.

Key Financial Figures

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

Filing Documents

• ea0264107-10q_silo.htm (10-Q) — 1092KB
• ea026410701ex31-1_silo.htm (EX-31.1) — 11KB
• ea026410701ex31-2_silo.htm (EX-31.2) — 11KB
• ea026410701ex32-1_silo.htm (EX-32.1) — 4KB
• ea026410701ex32-2_silo.htm (EX-32.2) — 4KB
• 0001213900-25-110006.txt ( ) — 6073KB
• silo-20250930.xsd (EX-101.SCH) — 56KB
• silo-20250930_cal.xml (EX-101.CAL) — 33KB
• silo-20250930_def.xml (EX-101.DEF) — 273KB
• silo-20250930_lab.xml (EX-101.LAB) — 534KB
• silo-20250930_pre.xml (EX-101.PRE) — 288KB
• ea0264107-10q_silo_htm.xml (XML) — 559KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 1 Consolidated Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024 1 Consolidated Statements of Operations and Comprehensive Loss for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited) 2 Consolidated Statements of Changes in Stockholders' Equity for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited) 3 Consolidated Statements of Cash Flows for the Nine Months Ended September 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 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 29 Item 4.

Controls and Procedures

Controls and Procedures 29

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 30 Item 1A.

Risk Factors

Risk Factors 30 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 3. Defaults Upon Senior Securities 38 Item 4. Mine Safety Disclosures 38 Item 5. Other Information 39 Item 6. Exhibits 39

SIGNATURES

SIGNATURES 40 i CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking this 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 statements by terminology such as "may," "could," "will," "would," "should,"

forward-looking statements by terminology such as "may," "could," "will," "would," "should," "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 to attract and retain qualified key management and technical personnel; regarding our goals, intensions, plans and expectations, including the introduction of new products and markets; our cash needs and financing plans. These statements relate to future events or our future operational or financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achiev

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS SILO PHARMA, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS September 30, December 31, 2025 2024 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 3,917,627 $ 3,905,799 Short-term investments 1,948,579 3,174,724 Crypto assets, at fair value 72,283 - Prepaid expenses and other current assets 225,880 30,957 Total Current Assets 6,164,369 7,111,480 LONG-TERM ASSETS: Prepaid expenses and other assets - non-current - 59,145 Intangible assets, net 220,312 241,215 Total Long-Term Assets 220,312 300,360 Total Assets $ 6,384,681 $ 7,411,840 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and accrued expenses $ 636,237 $ 1,583,895 Deferred revenue - current portion 72,102 72,102 Total Current Liabilities 708,339 1,655,997 LONG-TERM LIABILITIES: Deferred revenue - long-term portion 667,502 721,578 Total Long-Term Liabilities 667,502 721,578 Total Liabilities 1,375,841 2,377,575 Commitment and Contingencies (see Note 8) STOCKHOLDERS' EQUITY: Preferred stock, $ 0.0001 par value, 5,000,000 shares authorized: none designated as of September 30, 2025 and December 31, 2024 Common stock, $ 0.0001 par value, 100,000,000 shares authorized; 10,461,130 and 4,484,456 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 1,046 449 Additional paid-in capital 23,607,308 20,296,088 Accumulated other comprehensive income 11,345 2,419 Accumulated deficit ( 18,610,859 ) ( 15,264,691 ) Total Stockholders' Equity 5,008,840 5,034,265 Total Liabilities and Stockholders' Equity $ 6,384,681 $ 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 Nine Months Ended September 30, September 30, 2025 2024 2025 2024 LICENSE FEE REVENUE $ 18,025 $ 18,025 $ 54,076 $ 54,076 COST OF REVENUES 20,687 1,459 23,606 4,378 GROSS PROFIT (LOSS) ( 2,662 ) 16,566 30,470 49,698 OPERATING EXPENSES: Compensation expense 227,132 169,736 600,906 511,463 Professional fees 313,194 258,887 886,610 899,954 Research and development 543,615 517,548 1,854,824 1,292,437 Other selling, general and administrative expenses 64,863 80,450 182,268 238,186 Total operating expenses 1,148,804 1,026,621 3,524,608 2,942,040 LOSS FROM OPERATIONS ( 1,151,466 ) ( 1,010,055 ) ( 3,494,138 ) ( 2,892,342 ) OTHER INCOME (EXPENSE): Interest and dividend income, net 44,604 84,940 151,349 250,159 Interest expense ( 886 ) ( 1,081 ) ( 4,600 ) ( 4,810 ) Net realized gain (loss) on short-term investments - - 3,911 ( 1,025 ) Unrealized loss on crypto assets ( 2,690 ) - ( 2,690 ) - Foreign currency transaction loss - ( 2,618 ) - ( 14,242 ) Total other income, net 41,028 81,241 147,970 230,082 LOSS BEFORE PROVISION FOR INCOME TAXES ( 1,110,438 ) ( 928,814 ) ( 3,346,168 ) ( 2,662,260 ) Provision for income taxes - - - - NET LOSS $ ( 1,110,438 ) $ ( 928,814 ) $ ( 3,346,168 ) $ ( 2,662,260 ) COMPREHENSIVE LOSS: Net loss $ ( 1,110,438 ) $ ( 928,814 ) $ ( 3,346,168 ) $ ( 2,662,260 ) Other comprehensive income (loss): Unrealized gain on short-term debt investments 1,781 11,771 8,926 26,024 Total comprehensive loss $ ( 1,108,657 ) $ ( 917,043 ) $ ( 3,337,242 ) $ ( 2,636,236 ) NET LOSS PER COMMON SHARE: Basic and diluted $ ( 0.12 ) $ ( 0.22 ) $ ( 0.50 ) $ ( 0.78 ) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic and diluted 9,331,346 4,301,847 6,716,62

financial statements

financial statements. 3 SILO PHARMA, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the Nine Months Ended September 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ ( 3,346,168 ) $ ( 2,662,260 ) Adjustments to reconcile net loss to net cash used in operating activities Amortization expense 8,503 3,092 Net realized (gain) loss on short-term investments ( 3,911 ) 1,025 Unrealized loss on crypto assets 2,690 - Stock-based compensation 64,712 - Common stock issued for research and development 518,225 - Change in operating assets and liabilities: Prepaid expenses and other current assets ( 135,778 ) ( 226,105 ) Accounts payable and accrued expenses ( 935,258 ) 21,842 Deferred revenue ( 54,076 ) ( 54,076 ) NET CASH USED IN OPERATING ACTIVITIES ( 3,881,061 ) ( 2,916,482 ) 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 ( 76,671 ) ( 137,884 ) Purchases of crypto assets ( 74,973 ) - NET CASH PROVIDED BY INVESTING ACTIVITIES 1,164,009 1,011,436 CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds from sale of common stock and pre-funded warrants 1,593,897 1,673,216 Net proceeds from sale of common stock and warrants - 1,741,522 Proceeds from exercise of warrants, net of offering costs 1,134,983 3 Purchase of treasury stock - ( 173,113 ) NET CASH PROVIDED BY FINANCING ACTIVITIES 2,728,880 3,241,628 NET INCREASE IN CASH AND CASH EQUIVALENTS 11,828 1,336,582 CASH AND CASH EQUIVALENTS - beginning of the period 3,905,799 3,524,308 CASH AND CASH EQUIVALENTS - end of the period $ 3,917,627 $ 4,860,890 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ 4,600 $ 4,810 Income taxes $ - $ - Non-cash investing and financing activities: Unrealized gain on short-term investments $ 8,926 $ 2

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