SEC Filing Document

Company: Synergy CHC Corp.
Ticker: SNYR
CIK: 1562733
Filing Type: 8-K
Document Type: EX-99.1
Date Filed: 2025-08-14
Accession Number: 0001213900-25-076055
Exchange: Nasdaq
SIC Code: 2833
SIC Description: Medicinal Chemicals & Botanical Products
URL: https://www.sec.gov/Archives/edgar/data/1562733/000121390025076055/ea025320101ex99-1_synergy.htm

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and $312,966, respectively) 2,064,094 1,859,563 Inventory, net 2,364,158 1,716,552 Total Current Assets 19,509,679 16,059,768 Intangible assets, net 216,667 283,333 Total Assets $ 19,726,346 $ 16,343,101 Liabilities and Stockholders’ Deficit Current Liabilities: Accounts payable and accrued liabilities (including payable to shareholder of $92,955 and $88,644, respectively) $ 4,960,331 $ 5,191,868 Income taxes payable 266,472 242,977 Contract liabilities 4,887 24,252 Short term loans payable, net of debt discount 1,894,857 7,725,272 Current portion of long-term notes payable, net of debt discount and debt issuance cost, shareholder - 4,000,000 Total Current Liabilities 7,126,547 17,184,369 Long-term Liabilities: Notes payable, net of debt discount, shareholder - 8,333,053 Notes payable, net of debt discount 24,978,999 7,457,022 Total long-term liabilities 24,978,999 15,790,075 Total Liabilities 32,105,546 32,974,444 Commitments and contingencies Stockholders’ Deficit: Common stock, $0.00001 par value; 300,000,000 shares authorized; 9,621,926 and 8,721,818, shares issued, respectively; 9,441,853 and 8,541,745 outstanding, respectively 96 87 Additional paid in capital 29,508,354 27,643,660

Accumulated other comprehensive loss (9,838	) (47,777	)

Accumulated deficit (41,750,312	) (44,099,813	)

Less: Treasury stock (180,073 shares) at cost (127,500	) (127,500	)

Total stockholders’ deficit (12,379,200	) (16,631,343	)

Total Liabilities and Stockholders’ Deficit $	19,726,346 $	16,343,101

Synergy CHC Corp.

Unaudited Condensed Consolidated Statements of
Income and Comprehensive Income

For the three months ended For the six months ended

June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

Revenue

Product Sales $	6,734,996 $	8,024,840 $	13,405,530 $	17,436,703

License Revenue 1,400,000 - 2,900,000 -

Total Revenue 8,134,996 8,024,840 16,305,530 17,436,703

Cost of sales 1,896,391 2,448,890 3,902,904 5,086,029

Gross profit 6,238,605 5,575,950 12,402,626 12,350,674

Operating expenses

Selling and marketing 3,062,211 3,055,186 5,938,482 6,639,863

General and administrative 1,519,325 903,838 2,826,039 2,252,223

Depreciation and amortization 33,334 33,334 66,667 66,667

Total operating expenses 4,614,870 3,992,358 8,831,188 8,958,753

Income from operations 1,623,735 1,583,592 3,571,438 3,391,921

Other (income) expenses

Other income

Interest income (379	) (374	) (14,261	) (761	)

Interest expense 2,107,714 745,528 3,203,083 1,855,508

Gain on settlement of notes payable (2,154,522	) - (2,154,522	) -

Remeasurement (gain) loss on translation of foreign subsidiary 7,578 3,870 8,990 (5,113	)

Total other (income) expenses (39,609	) 749,024 1,043,290 1,849,634

Net income before income taxes 1,663,344 834,568 2,528,148 1,542,287

Income tax benefit (expense) (190,107	) (179,382	) (178,647	) (306,571	)

Net income after tax $	1,473,237 $	655,186 $	2,349,501 $	1,235,716

Net income per share – basic $	0.17 $	0.09 $	0.27 $	0.17

Net income per share – diluted $	0.17 $	0.09 $	0.27 $	0.17

Weighted average common shares outstanding

Basic 8,928,548 7,373,745 8,743,639 7,373,745

Diluted 8,928,548 7,373,745 8,743,639 7,373,745

Comprehensive income:

Net income 1,473,237 655,186 2,349,501 1,235,716

Foreign currency translation adjustment 39,874 55,736 37,939 187,373

Comprehensive income $	1,513,111 $	710,922 $	2,387,440 $	1,423,089

Synergy CHC Corp.

Unaudited Condensed Consolidated Statements of
Cash Flows

For the
six
months
ended For the
six months
ended

June 30, 2025 June 30, 2024

Cash Flows from Operating Activities

Net income $	2,349,501 $	1,235,716

Adjustments to reconcile net income to net cash used in operating activities:

Amortization of debt discount and debt issuance cost 892,435 -

Depreciation and amortization 66,667 66,667

Stock based compensation - 4,611

Stock issued for modification of notes payable 847,062 -

Foreign currency transaction loss (gain) (9,068	) 23,345

Remeasurement loss (gain) on translation of foreign subsidiary 8,990 (5,113	)

Non cash implied interest - 4,799

Gain on settlement of debt (2,154,522	) -

Changes in operating assets and liabilities:

Accounts receivable (1,748,852	) (1,161,992	)

Other receivables (25,457	) -

Loan receivable, related party (52,824	) 35,449

Inventory (647,606	) 1,805,950

Prepaid expenses 283,848 (276,818	)

Prepaid expense, related party (488,379	) (326,682	)

Income taxes payable 23,495 262,374

Contract liabilities (19,365	) (2,949	)

Accounts payable and accrued liabilities (610,770	) (2,804,381	)

Accounts payable, shareholder 385,114 (980	)

Net cash used in operating activities (899,731	) (1,140,005	)

Cash Flows from Investing Activities - -

Cash Flows from Financing Activities

Advances from related party 135,000 1,509,226

Repayment of notes payable, related party (135,000	) (84,500	)

Proceeds from notes payable 18,996,250 600,000

Payment of loan financing fees (1,980,914	) -

Repayment of notes payable, shareholder (10,000,000	) -

Repayment of notes payable (5,382,903	) (1,617,335	)

Net cash provided by financing activities 1,632,433 407,391

Effect of exchange rate on cash, cash equivalents and restricted cash 37,939 187,373

Net increase (decrease) in cash, cash equivalents and restricted cash 770,641 (545,241	)

Cash and restricted cash, beginning of year 787,920 732,534

Cash and restricted cash, end of period $	1,558,561 $	187,293

Supplemental Disclosure of Cash Flow Information:

Cash paid during the period for:

Interest $	896,734 $	1,850,896

Income taxes $	- $	44,197

Supplemental Disclosure of Noncash Investing and Financing Activities:

Accounts payable converted to loan payable upon settlement $	- $	3,770,824

Reduction of short term related party note payable by reduction of prepaid balance $	- $	328,003

Issuance of common stock for loan financing $	117,648 $	-

Issuance of pre-funded warrants for settlement of shareholder notes payable $	899,993 $	-

Exercise of pre-funded warrants $	4 $	-

Loan fees payable to lender $	375,000 $	-