silo-20260630

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 June 30, 2026

☐ 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)		(I.R.S. 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

Not Applicable

(Former name or former address and fiscal year, if changed since last report)

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 August 13, 2026 was 1,588,250.

SILO PHARMA, INC. AND SUBSIDIARIES
FORM 10-Q
JUNE 30, 2026

TABLE OF CONTENTS

		Page
PART I – FINANCIAL INFORMATION		1
Item 1.	Financial Statements	1
	Consolidated Balance Sheets as of June 30, 2026 (Unaudited) and December 31, 2025	1
	Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended June 30, 2026 and 2025 (Unaudited)	2
	Consolidated Statements of Changes in Stockholders’ Equity for the Three and Six Months Ended June 30, 2026 and 2025 (Unaudited)	3
	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2026 and 2025 (Unaudited)	4
	Condensed Notes to Consolidated Financial Statements (Unaudited)	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	35

PART II – OTHER INFORMATION		36
Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3.	Defaults Upon Senior Securities	36
Item 4.	Mine Safety Disclosures	36
Item 5.	Other Information	36
Item 6.	Exhibits	37

SIGNATURES		38

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, intentions, 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 SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	June 30,			December 31,
	2026			2025
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	3,277,095		$	4,748,700
Short-term investments, at fair value		1,950,147			2,110,065
Crypto assets, at fair value		205,414			221,817
Crypto assets, at cost		-			98,584
Prepaid expenses and other current assets		280,870			208,559

Total Current Assets		5,713,526			7,387,725

LONG-TERM ASSETS:
Deferred offering costs		26,997			-
Intangible assets, net		211,500			217,375

Total Long-Term Assets		238,497			217,375

Total Assets	$	5,952,023		$	7,605,100

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses	$	362,181		$	578,081
Contingently returnable sublicense fee		703,552			-
Deferred revenue - current portion		-			72,102

Total Current Liabilities		1,065,733			650,183

LONG-TERM LIABILITIES:
Deferred revenue - long-term portion		-			649,476

Total Long-Term Liabilities		-			649,476

Total Liabilities		1,065,733			1,299,659

Commitments and Contingencies (see Note 8)

STOCKHOLDERS' EQUITY:
Preferred stock, $0.0001 par value, 5,000,000 shares authorized: none designated as of June 30, 2026 and December 31, 2025		-			-
Common stock, $0.0001 par value, 6,666,667 shares authorized; 1,128,610 and 887,886 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively		113			89
Additional paid-in capital		26,851,682			25,791,913
Accumulated other comprehensive income		6,830			5,828
Accumulated deficit		(21,972,335	)		(19,492,389	)

Total Stockholders' Equity		4,886,290			6,305,441

Total Liabilities and Stockholders' Equity	$	5,952,023		$	7,605,100

See accompanying notes to unaudited consolidated financial statements.

SILO PHARMA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025

LICENSE FEE REVENUE	$	-		$	18,025		$	18,026		$	36,051

COST OF REVENUES		-			1,459			20,688			2,919

GROSS PROFIT (LOSS)		-			16,566			(2,662	)		33,132

OPERATING EXPENSES:
Compensation expense		222,684			195,305			465,317			373,774
Professional fees		311,846			299,592			567,139			573,416
Research and development		298,418			717,247			1,311,683			1,311,209
Other selling, general and administrative expenses		96,001			52,973			176,808			117,405

Total operating expenses		928,949			1,265,117			2,520,947			2,375,804

LOSS FROM OPERATIONS		(928,949	)		(1,248,551	)		(2,523,609	)		(2,342,672	)

OTHER INCOME (EXPENSE):
Interest and dividend income, net		39,155			44,917			77,873			106,745
Interest expense		(2,865	)		(1,648	)		(6,238	)		(3,714	)
Gain on debt settlement		91,645			-			91,645			-
Net realized gain on short-term debt investments		857			989			857			3,911
Unrealized gain on short-term tokenized investments funds		4,961			-			2,901			-
Staking income on crypto assets		1,147			-			1,338			-
Realized loss on crypto assets		(2,073	)		-			(2,073	)		-
Unrealized loss on crypto assets, at fair value		(35,795	)		-			(89,143	)		-
Impairment loss on crypto assets, at cost		-			-			(29,911	)		-
Foreign currency transaction loss		(912	)		-			(3,586	)		-

Total other income, net		96,120			44,258			43,663			106,942

LOSS BEFORE PROVISION FOR INCOME TAXES		(832,829	)		(1,204,293	)		(2,479,946	)		(2,235,730	)

Provision for income taxes		-			-			-			-

NET LOSS	$	(832,829	)	$	(1,204,293	)	$	(2,479,946	)	$	(2,235,730	)

COMPREHENSIVE LOSS:
Net loss	$	(832,829	)	$	(1,204,293	)	$	(2,479,946	)	$	(2,235,730	)

Other comprehensive income (loss):
Unrealized gain (loss) on short-term debt investments		(1,891	)		(1,140	)		1,002			7,145

Total comprehensive loss	$	(834,720	)	$	(1,205,433	)	$	(2,478,944	)	$	(2,228,585	)

NET LOSS PER COMMON SHARE:
Basic and diluted	$	(0.76	)	$	(2.88	)	$	(2.46	)	$	(6.22	)

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic and diluted		1,098,517			418,649			1,006,743			359,172

See accompanying notes to unaudited consolidated financial statements.

SILO PHARMA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(Unaudited)

					Additional			Accumulated Other						Total
	Common Stock				Paid In			Comprehensive			Accumulated			Stockholders’
	Shares		Amount		Capital			Income			Deficit			Equity

Balance, December 31, 2025		887,886	$	89	$	25,791,913		$	5,828		$	(19,492,389	)	$	6,305,441

Issuance of common stock in exchange of future services		56,555		6		249,994			-			-			250,000

Issuance of common stock in exchange of acquired technology		140,000		14		713,986			-			-			714,000

Accretion of stock-based compensation in connection with stock option grants		-		-		56,619			-			-			56,619

Accumulated other comprehensive gain - short-term debt investments		-		-		-			2,893			-			2,893

Net loss		-		-		-			-			(1,647,117	)		(1,647,117	)

Balance, March 31, 2026		1,084,441		109		26,812,512			8,721			(21,139,506	)		5,681,836

Accretion of stock-based compensation in connection with stock option grants		-		-		39,174			-			-			39,174

Rounding shares from 1-for-15 reverse stock-split		44,169		4		(4	)		-			-			-

Accumulated other comprehensive loss - short-term debt investments		-		-		-			(1,891	)		-			(1,891	)

Net loss		-		-		-			-			(832,829	)		(832,829	)

Balance, June 30, 2026		1,128,610	$	113	$	26,851,682		$	6,830		$	(21,972,335	)	$	4,886,290

					Additional		Accumulated Other						Total
	Common Stock				Paid In		Comprehensive			Accumulated			Stockholders’
	Shares		Amount		Capital		Income			Deficit			Equity

Balance, December 31, 2024		298,964	$	30	$	20,296,507	$	2,419		$	(15,264,691	)	$	5,034,265

Accumulated other comprehensive gain - short-term debt investments		-		-		-		8,285			-			8,285

Net loss		-		-		-		-			(1,031,437	)		(1,031,437	)

Balance, March 31, 2025		298,964		30		20,296,507		10,704			(16,296,128	)		4,011,113

Sale of common stock, net of offering costs and expenses of $406,044		181,556		18		1,227,939		-			-			1,227,957

Sale of pre-funded warrants		-		-		365,940		-			-			365,940

Exercise of warrants for cash, net of offering costs		96,222		10		500,051		-			-			500,061

Accretion of stock-based compensation in connection with stock option grants		-		-		17,445		-			-			17,445

Accumulated other comprehensive gain - short-term investments		-		-		-		(1,140	)		-			(1,140	)

Net loss		-		-		-		-			(1,204,293	)		(1,204,293	)

Balance, June 30, 2025		576,742	$	58	$	22,407,882	$	9,564		$	(17,500,421	)	$	4,917,083

See accompanying notes to unaudited consolidated financial statements.

SILO PHARMA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Six Months Ended
	June 30,
	2026			2025

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(2,479,946	)	$	(2,235,730	)
Adjustments to reconcile net loss to net cash used in operating activities
Amortization expense		5,875			5,565
Amortization of prepaid stock-based professional fees		89,212			-
Net realized gain on short-term debt investments		(857	)		(3,911	)
Unrealized gain on short-term tokenized investment funds		(2,901	)		-
Staking income on crypto assets		(1,338	)		-
Realized loss on crypto assets		2,073			-
Unrealized loss on crypto assets, at fair value		89,143			-
Impairment loss on crypto assets, at cost		29,911			-
Stock-based compensation		95,793			17,445
Common stock issued for acquired technology expensed		714,000			-
Gain on settlement of accounts payable and accrued expenses		(91,645	)		-
Change in operating assets and liabilities:
Prepaid expenses and other current assets		88,477			(79,186	)
Accounts payable and accrued expenses		(124,255	)		(593,700	)
Deferred revenue		(18,026	)		(36,051	)

NET CASH USED IN OPERATING ACTIVITIES		(1,604,484	)		(2,925,568	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of short-term debt investments		202,279			1,315,653
Purchases of short-term debt investments		(37,601	)		(56,170	)
Proceeds from the sale of crypto assets, at fair value		45,188			-
Purchases of crypto assets, at fair value		(49,990	)		-

NET CASH PROVIDED BY INVESTING ACTIVITIES		159,876			1,259,483

CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from sale of common stock and pre-funded warrants		-			1,593,897
Proceeds from exercise of warrants		-			500,061
Payment of deferred offering costs		(26,997	)		-

NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES		(26,997	)		2,093,958

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(1,471,605	)		427,873

CASH AND CASH EQUIVALENTS - beginning of the period		4,748,700			3,905,799

CASH AND CASH EQUIVALENTS - end of the period	$	3,277,095		$	4,333,672

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	6,238		$	3,714
Income taxes	$	-		$	-

Non-cash investing and financing activities:
Receipt of crypto assets, at fair value for redemption of crypto assets, at cost	$	66,600		$	-
Issuance of common stock in exchange for prepaid services	$	250,000		$	-
Unrealized gain on short-term debt investments	$	1,002		$	7,145
Reclassification of deferred revenue to contingently returnable sublicense fee	$	703,552		$	-
Decrease in intangible assets and accounts payable and accrued expenses	$	-		$	12,400

See accompanying notes to unaudited consolidated financial statements.

SILO PHARMA, INC. AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026

(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 and 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.

On April 15, 2026, the Company formed Qwikagentsai Inc. (“Qwikagentsai”), a Nevada corporation, as a wholly-owned subsidiary. Qwikagentsai was formed to diversify the Company’s business into artificial intelligence (“AI”) technology including the development and commercialization of web-based AI agent platforms.

The Company is a developmental-stage biopharmaceutical company with a cryptocurrency treasury strategy. The Company’s therapeutic focus is on developing novel therapeutics that address underserved conditions including post-traumatic stress disorder (“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). Qwikagentsai is an AI-agent platform focused on enterprise workflow automation through autonomous AI agents. The platform combines persistent memory, intelligent model routing across eight large language model providers, encrypted backups, and browser automation to support scalable AI-driven operations.

On June 1, 2026, the Company filed a Certificate of Change (the “Certificate of Change”) with the Secretary of State of the State of Nevada to effectuate a 1-for-15 reverse stock split (the “Reverse Stock Split”) of the Company’s issued and outstanding and authorized shares of common stock, par value $0.0001 per share. The Reverse Stock Split became effective on June 2, 2026 and the Company’s common stock began trading on a split-adjusted basis at the open of business on June 3, 2026. All share and per share data in the unaudited consolidated financial statements have been retroactively adjusted to reflect the effect of the reverse stock split.

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 (“U.S. GAAP”) for interim financial information and with the instructions to 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 notes to the consolidated financial statements for the year ended December 31, 2025 included in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 27, 2026.

The Company’s unaudited consolidated financial statements include financial statements for Silo Pharma, Inc., its inactive wholly-owned subsidiary with the same name as the parent entity, Silo Pharma, Inc., and its wholly-owned subsidiary, Qwikagentsai 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 $2,479,946 and used cash in operations of $1,604,484 during the six months ended June 30, 2026. Additionally, the Company has an accumulated deficit of $21,972,335 on June 30, 2026. As of June 30, 2026, the Company had cash and cash equivalents of $3,277,095, short-term investments of $1,950,147, and working capital of $4,647,793.

The positive working capital and the July 2026 Private Placement (see Note 9) serve 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.

SILO PHARMA, INC. AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026

(UNAUDITED)

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 six months ended June 30, 2026 and 2025 include the percentage of completion of research and development projects, valuation of short-term investments, valuation of crypto assets, valuation of intangible assets, valuation allowances for deferred tax assets, and the fair value of shares and stock options issued for services.

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 June 30, 2026 and December 31, 2025, the Company had cash in excess of FDIC limits of approximately $2,718,542 and $4,249,000, 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 and interests in private investment funds. Marketable debt securities 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 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.

The Company also holds interests in private investment funds that are tokenized on public blockchains, specifically the Alphaledger/Simplify Target 12% Distribution Fund LLC (“T12 Fund”). While these assets utilize blockchain technology for record-keeping and settlement, they represent equity interests in a limited liability company and are managed as short-term investments. The Company classifies the T12 Fund as a trading security. The fund is an actively managed tokenized hedge fund that generates income through a diversified strategy including corporate bonds, U.S. treasuries, currency forwards, and derivative instruments such as index options and futures. Due to the lack of a widely recognized public exchange price for the fund units, these investments are recorded at fair value based on the Net Asset Value (“NAV”) provided by the fund administrator. Unrealized gains and losses for this investment are recognized in the unaudited consolidated statements of operations and comprehensive loss within “other income (expense)”. Distributions from these funds are recognized as income when declared and are either received in cash equivalents (ALUSD) or automatically reinvested into additional fund units.

An impairment loss may be recognized when the decline in fair value of the debt securities and other short-term investments 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 $(1,891) and $1,002 of unrealized gain (loss) on short-term investments on marketable debt securities as a component of other comprehensive income (loss) for the three and six months ended June 30, 2026, respectively. The Company recorded $(1,140) and $7,145 of unrealized gain (loss) on short-term investments on marketable debt securities as a component of other comprehensive income (loss) for the three and six months ended June 30, 2025, respectively. For the three and six months ended June 30, 2026, the Company recorded an unrealized gain of $4,961 and $2,901 on the T12 Fund in the unaudited consolidated statements of operations and comprehensive loss within “other income (expense)”.

SILO PHARMA, INC. AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2026