SEC Filing Document

Company: Synergy CHC Corp.
Ticker: SNYR
CIK: 1562733
Filing Type: PRE 14A
Document Type: PRE 14A
Date Filed: 2025-04-17
Accession Number: 0001213900-25-032976
Exchange: Nasdaq
SIC Code: 2833
SIC Description: Medicinal Chemicals & Botanical Products
URL: https://www.sec.gov/Archives/edgar/data/1562733/000121390025032976/ea0238236-01.htm

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recoverable under the policy includes cash or equity-based compensation for which the grant, payment or vesting (or any portion thereof) is or was predicated upon the achievement of specified financial results that are impacted by the material financial restatement, and the amount of compensation that may be impacted by the clawback policy is the difference between the amount paid or granted, and the amount that should have been paid or granted, if calculated on the updated financials. Recovery under the policy with respect to an executive officer will not require the finding of any misconduct by such executive officer or such executive officer being found responsible for the accounting error leading to an accounting restatement. Our Clawback Policy was filed as an exhibit to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Table of Contents EQUITY COMPENSATION PLAN INFORMATION Equity Compensation Plan Information

The Company adopted the 2024 Equity Incentive Plan (the “2024 Plan”) in June 26, 2024, following the approval of the Board of Directors. The Board of Directors authorized up to an aggregate of 1,304,622 shares of common stock as the maximum number of shares available for issuance, which does not include shares related to acquisitions. The 2024 Plan replaced the previously adopted 2014 Incentive Plan (the “2014 Plan”) which had a total number of authorized shares of 15,525,000. However, the remaining shares outstanding under the 2014 Plan are still to be governed by that plan. As of December 31, 2024, no stock options granted under the 2014 Plan remain outstanding. Any expired or terminated shares from the 2014 Plan that have not been vested or exercised become available for issuance under the 2024 Plan. As of December 31, 2024, 252,102 stock options are outstanding under the 2024 Plan.

The following table reflects compensation plans pursuant to which we are authorized to issue options and restricted stock units, including the number of shares issuable under outstanding options and rights issued under the plans and the number of shares remaining available for issuance under the plans as of December 31, 2024.

Plan category Number of securities to be issued upon exercise of outstanding options, vesting of restricted stock units and other rights Weighted-average exercise price of outstanding options (1) Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))

2014 Plan

Equity compensation plans approved by shareholders (2) — $	— —

Equity compensation plans not approved by shareholders — — —

2024 Plan

Equity compensation plans approved by shareholders (3) 252,102 $	6.15 1,052,520

Equity compensation plans not approved by shareholders — — —

Total 252,102 $	6.15 1,052,520

(1)      The weighted average exercise price calculation does not take into account any restricted stock units or performance shares.

(2)      The Company’s 2014 Stock Incentive Plan was approved by stockholders in July 2015.

(3)      The Company’s 2024 Stock Incentive Plan was approved by stockholders in June 2024.

Table of Contents

REPORT OF AUDIT COMMITTEE

The audit committee has reviewed and discussed with management our audited consolidated financial statements and “Management’s Report on Internal Control over Financial Reporting” in Item 9A included in the Annual Report.

The audit committee also discussed with RBSM the matters required to be discussed by the applicable requirements of the Public Company Accounting Oversight Board (the “PCAOB”) and the SEC. The audit committee received the written disclosures and the letter from RBSM required by applicable requirements of the PCAOB regarding RBSM’s communication with the audit committee concerning independence and has discussed with RBSM their independence.

Based upon the review and discussions described above, the audit committee recommended to the Board that the audited consolidated financial statements be included in the Annual Report for filing with the SEC. We have selected RBSM as our independent registered public accounting firm for the year ending December 31, 2024 and have approved submitting the selection of the independent registered public accounting firm for ratification by the stockholders.

Members of the Synergy CHC Corp. Audit Committee

Nitin Kaushal (Chair)

J. Paul SoRelle

Scott Woodburn

The material in this Audit Committee Report shall not be deemed to be “soliciting material” or “filed” with the SEC. This Audit Committee Report shall not be deemed incorporated by reference into any of our other filings under the Exchange Act or the Securities Act of 1933, as amended, except to the extent we specifically incorporate it by reference into such filing.

Table of Contents

CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS

Certain Relationships and Related Person Transactions

SEC regulations define the related person transactions that require disclosure to include any transaction, arrangement or relationship in which the amount involved exceeds the lesser of $120,000 or 1% of the average of our total assets at year-end for the last two completed fiscal years in which we were or are to be a participant and in which a related person had or will have a direct or indirect material interest. A related person is: (i) an executive officer, director or director nominee of the Company, (ii) a beneficial owner of more than 5% of our common stock, (iii) an immediate family member of an executive officer, director or director nominee or beneficial owner of more than 5% of our common stock, or (iv) any entity that is owned or controlled by any of the foregoing persons or in which any of the foregoing persons has a substantial ownership interest or control. Described below are certain transactions or relationships between us and certain related persons.

On April 2, 2014, we entered into a Sales and Marketing Consultant and Distribution Agreement with Kenek Brands, Inc. (“Kenek”), a company owned by Jack Ross, our Chief Executive Officer. Mr. Ross serves as our Chief Executive Officer and is not an employee of the Company. For the years ended December 31, 2024, and 2023 we expensed consulting fees of $1,321 and $500,000, respectively. We advanced $396,683 in the manner of a prepaid consulting fees during the year ended December 31, 2024 and applied $328,003 of that advance to a short term loan during the year ended December 31, 2024 and $501,321 in the manner of a prepaid bonus in the year ended December 31, 2023. The prepaid balance as of December 31, 2024 and December 31, 2023 was $296,981 and $501,321, respectively. During 2024, the Company we were advanced $3,175,000 and $514,500 Canadian Dollars (US Dollars $342,201) in the form of a short term note. The balance owed as of both December 31, 2024 and December 31, 2023 is $0.

On June 26, 2015, we entered into a Security Agreement with Knight Therapeutics, Inc. (“Knight Therapeutics”) (an affiliate of an owner of greater than 10% of our outstanding common stock) through its wholly owned subsidiary Neuragen Corp., for the purchase of the assets of Knight Therapeutics, Inc. At March 31, 2024 and December 31, 2023, we owed Knight $275,000 and $287,500, in relation to this agreement. We recorded present value of future payments of $199,640 and $204,941 as of March 31, 2024 and December 31, 2023, respectively. This agreement was consolidated into the Amended and Restated Loan Agreement with Knight in June 2024.

Pursuant to our Amended and Restated Loan Agreement with Knight, as amended by the Sixth Amendment dated June 6, 2024, amounts owing under the loan bear interest at a rate of 12% per year. At December 31, 2024 and 2023, we owed Knight $12,335,452 and $12,335,452, respectively, on this loan, net of debt issuance cost. Since January 1, 2023, the highest aggregate principal amount outstanding under this loan was $12,335,452 during the year ended December 31, 2023 and 2024. During the years ended December 31, 2024 and 2023, $0 and $145,500, of principal was paid, respectively. During the years ended December 31, 2024 and 2023, $1,545,674 and $1,693,642, of interest was paid, respectively.

On December 23, 2016, we entered into an agreement with Knight Therapeutics, Inc. for the distribution rights of FOCUSfactor in Canada. In conjunction with this agreement, we are required to pay Knight Therapeutics a distribution fee equal to 30% of gross sales for sales achieved through a direct sales channel and 5% of gross sales for sales achieved through retail sales. The minimum due to Knight under this agreement is $100,000 Canadian dollars. On and after February 15, 2021, the agreement automatically renews for additional one-year terms unless either party gives notice of nonrenewal at least 180 days prior to the end of the then-current term. During the year ended December 31, 2024, we expensed $123,584 Canadian dollars (US Dollars $90,229). During the year ended December 31, 2023, we expensed $133,502 Canadian dollars ($98,939 U.S. Dollars). As of December 31, 2024 and 2023, the total outstanding balance was $123,584 and $549,229 Canadian dollars, respectively. In US Dollars, the total outstanding balance was $85,891 and $415,272 as of December 31, 2024 and 2023, respectively. The outstanding distribution fees at December 31, 2023 have been added to the related party notes payable.