UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission File Number: 001-41512

SILO PHARMA, INC.

(Exact name of registrant as specified in its charter)

Nevada		27-3046338
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

677 N. Washington Boulevard,

Sarasota, Florida

34236

(Address of principal executive offices)

(Zip code)

Registrant’s telephone number, including area code: (718) 400-9031

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class		Trading Symbol(s)		Name of exchange on which registered
Common Stock, par value $0.0001 per share		SILO		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registration was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of shares of common stock, par value $0.0001 per share, outstanding as of November 13, 2025 was: 13,318,273.

SILO PHARMA, INC. AND SUBSIDIARY
FORM 10-Q
SEPTEMBER 30, 2025

TABLE OF CONTENTS

		Page
PART I – FINANCIAL INFORMATION
Item 1.	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	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	29

PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	30
Item 1A.	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		40

CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in 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,” “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;

●

statements 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 achievements expressed or implied by these forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under the section titled “Risk Factors” and elsewhere in this report.

Any forward-looking statement in this report reflects our current view with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our business, results of operations, industry and future growth. Given these uncertainties, you should not place undue reliance on these forward-looking statements. No forward-looking statement is a guarantee of future performance. You should read this report completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements.

This report also contains estimates, projections and other information concerning our industry, our business and our markets, including data regarding the estimated size of those markets and their projected growth rates. Information that is based on estimates, forecasts, projections or similar methodologies is inherently subject to uncertainties and actual events or circumstances may differ materially from events and circumstances reflected in this information. Unless otherwise expressly stated, we obtained these industry, business, market and other data from reports, research surveys, studies and similar data prepared by third parties, industry, and general publications, government data and similar sources. While we believe that the reports, research surveys, studies and similar data prepared by third parties are reliable, we have not independently verified the data contained in them.

You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this report. Except as required by law, we do not undertake any obligation to update or release any revisions to these forward-looking statements to reflect any events or circumstances, whether as a result of new information, future events, changes in assumptions or otherwise, after the date hereof. New factors emerge from time to time, and it is not possible for us to predict which factors will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We qualify all of the information presented in this Quarterly Report on Form 10-Q, and particularly our forward-looking statements, by these cautionary statements.

PART I – FINANCIAL INFORMATION

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.

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			6,716,620			3,410,415

See accompanying condensed notes to unaudited consolidated financial statements.

SILO PHARMA, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 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

Issuance of common stock in exchange of acquired technology, net of offering costs of $25		750,000		75		518,150		-		-		-			-			518,225

Exercise of warrants, net of offering costs of $1,080		1,060,002		106		634,816		-		-		-			-			634,922

Accretion of stock-based compensation in connection with stock option grants		-		-		47,267		-		-		-			-			47,267

Accumulated other comprehensive loss - short-term investments		-		-		-		-		-		1,781			-			1,781

Net loss		-		-		-		-		-		-			(1,110,438	)		(1,110,438	)

Balance, September 30, 2025		10,461,130	$	1,046	$	23,607,308		-	$	-	$	11,345		$	(18,610,859	)	$	5,008,840

							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			325,645			(586,573	)		26,104			(11,673,478	)		5,292,083

Sale of common stock and pre-funded warrants		883,395			89			1,673,127			-			-			-			-			1,673,216

Exercise of pre-funded warrants		34,037			3			-			-			-			-			-			3

Purchase of treasury stock		-			-			-			30,065			(57,661	)		-			-			(57,661	)

Accumulated other comprehensive loss - short-term investments		-			-			-			-			-			(18,078	)		-			(18,078	)

Net loss		-			-			-			-			-			-			(931,779	)		(931,779	)

Balance, June 30, 2024		4,076,528			408			19,198,841			355,710			(644,234	)		8,026			(12,605,257	)		5,957,784

Sale of common stock and warrants		763,638			76			1,741,446			-			-			-			-			1,741,522

Cancellation of treasury stock		(351,870	)		(35	)		(637,931	)		(351,870	)		637,966			-			-			-

Accumulated other comprehensive gain - short-term investments		-			-			-			-			-			11,771			-			11,771

Net loss		-			-			-			-			-			-			(928,814	)		(928,814	)

Balance, September 30, 2024		4,488,296		$	449		$	20,302,356			3,840		$	(6,268	)	$	19,797		$	(13,534,071	)	$	6,782,263

See accompanying condensed notes to unaudited consolidated financial statements.

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		$	26,024
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		$	-
Cancellation of treasury stock	$	-		$	637,966

See accompanying condensed notes to unaudited consolidated financial statements.

SILO PHARMA, INC. AND SUBSIDIARY

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 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 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 statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (the “U.S. GAAP”) for interim financial information and with the instructions Article 8-03 of Regulation S-X. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. Certain information and note disclosure normally included in financial statements prepared in accordance with U.S. GAAP has been condensed or omitted from these statements pursuant to such accounting principles and, accordingly, they do not include all the information and notes necessary for comprehensive financial statements. These unaudited consolidated financial statements should be read in conjunction with the summary of significant accounting policies and condensed notes to the consolidated financial statements for the year ended December 31, 2024 included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 28, 2025.

The Company’s unaudited consolidated financial statements include financial statements for Silo Pharma, Inc. and its inactive wholly-owned subsidiary with the same name as the parent entity, Silo Pharma, Inc. All intercompany transactions and balances have been eliminated in consolidation. Management acknowledges its responsibility for the preparation of the accompanying unaudited consolidated financial statements which reflect all adjustments, consisting of normal recurring and non-recurring adjustments, considered necessary in its opinion for a fair statement of its unaudited consolidated financial position and the unaudited consolidated results of its operations for the periods presented.

Liquidity

As reflected in the accompanying unaudited consolidated financial statements, the Company 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, the Company has an accumulated deficit of $18,610,859 on September 30, 2025. As of September 30, 2025, the Company had cash and cash equivalents of $3,917,627, short-term investments of $1,948,579, and working capital of $5,456,030.

The positive working capital serves to mitigate the conditions that historically raised substantial doubt about the Company’s ability to continue as a going concern. The Company believes that it has sufficient cash and liquid short-term investments to meet its obligations for a minimum of twelve months from the date of this filing.

Use of Estimates

The preparation of unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate could change in the near term due to one or more future events. Accordingly, the actual results could differ significantly from estimates. Significant estimates during the nine months ended September 30, 2025 and 2024 include the percentage of completion of research and development projects, valuation of short-term investments, valuation of intangible assets, valuation allowances for deferred tax assets, and the fair value of shares and stock options issued for services.

SILO PHARMA, INC. AND SUBSIDIARY

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025

(UNAUDITED)

Cash and Cash Equivalents

The Company considers all highly liquid investments with a maturity of three months or less when acquired to be cash equivalents. The Company places its cash with high credit quality financial institutions. The Company’s accounts at these institutions are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 or by the Securities Investor Protection Corporation up to $250,000. To reduce its risk associated with the failure of such financial institutions, the Company evaluates at least annually the rating of the financial institutions in which it holds deposits. On September 30, 2025 and December 31, 2024, the Company had cash in excess of FDIC limits of approximately $3,418,000 and $3,406,000, respectively. Any material loss that we may experience in the future could have an adverse effect on our ability to pay our operational expenses or make other payments.

Short-Term Investments

The Company’s portfolio of short-term investments consists of marketable debt securities which are comprised solely of highly rated U.S. government securities with maturities of more than three months, but less than one year. The Company classifies these as available-for-sale at purchase date and will reevaluate such designation at each period end date. The Company may sell these marketable debt securities prior to their stated maturities depending upon changing liquidity requirements. These debt securities are classified as current assets in the unaudited consolidated balance sheet and recorded at fair value, with unrealized gains or losses included in accumulated other comprehensive income and as a component of the unaudited consolidated statements of comprehensive loss. Gains and losses are recognized when realized. Gains and losses are determined using the specific identification method and are reported in other income (expense), net in the unaudited consolidated statements of operations and comprehensive loss.

An impairment loss may be recognized when the decline in fair value of the debt securities is determined to be other-than-temporary. The Company evaluates its investments for other-than-temporary declines in fair value below the cost basis each quarter, or whenever events or changes in circumstances indicate that the cost basis of the short-term investments may not be recoverable. The evaluation is based on a number of factors, including the length of time and the extent to which the fair value has been below the cost basis, as well as adverse conditions related specifically to the security, such as any changes to the credit rating of the security and the intent to sell or whether the Company will more likely than not be required to sell the security before recovery of its amortized cost basis.

The Company recorded $1,781 and $8,926 of unrealized gain on short-term investments as a component of other comprehensive income (loss) for the three and nine months ended September 30, 2025, respectively. The Company recorded $11,771 and $26,024 of unrealized gain on short-term investments as a component of accumulated other comprehensive loss for the three and nine months ended September 30, 2024, respectively.

Digital Assets, at Fair Value

The Company’s digital assets primarily include Bitcoin (BTC), Ethereum (ETH) and Solana (SOL), which are actively traded on public exchanges. The Company distinguishes between digital assets which fall within the scope of ASC 350-60 and those which do not. The Company refers to digital assets which fall within the scope of ASC 350-60 (e.g., BTC) as “crypto assets.” Digital assets which do not fall within the scope of ASC 350-60, Accounting for and Disclosure of Crypto Assets, are referred to as “digital intangible assets.” As of September 30, 2025, the Company did not own any digital intangible assets.

Crypto assets are recorded at fair value in accordance with ASC 820, Fair Value Measurement. Changes in fair value are recognized in the Company’s consolidated statements of operations within “other income (expense)” for the period in which they occur. Certain of the Company’s crypto assets are staked with no lock-up period, and are considered current assets in accordance with ASC 210-10-20, Balance Sheet, due to the Company’s ability to sell them in a liquid marketplace and with a reasonable expectation that they will be realized in cash during the normal operating cycle of our business to support operations if needed.

The Company has staked $39,376 of crypto assets as of September 30, 20

SEC Form 10-Q filed by Silo Pharma Inc.