SEC Filing Document

Company: Synergy CHC Corp.
Ticker: SNYR
CIK: 1562733
Filing Type: 8-K
Document Type: EX-99.1
Date Filed: 2025-03-31
Accession Number: 0001213900-25-025779
Exchange: Nasdaq
SIC Code: 2833
SIC Description: Medicinal Chemicals & Botanical Products
URL: https://www.sec.gov/Archives/edgar/data/1562733/000121390025025779/ea023622601ex99-1_synergy.htm

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measure its performance and prepare its budgets. Since Adjusted EBITDA is a non-GAAP financial performance measure, the Company’s calculation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. The following table reconciles net income to Adjusted EBITDA (in millions of US dollars): 3 Months ended December 31 12 Months ended December 31 Net income for the period 0.10 2.59 2.12 6.34 Adjusted for: Interest expense, net 1.54 1.63 4.10 4.23 Amortization of intangible assets 0.03 0.03 0.13 0.03 Taxes expense (benefit) 0.01 0.20 0.10 0.23 One Time Expenses 0.99 0.00 0.74 0.00 Obsolete Inventory 0.13 0.00 0.13 0.00 Foreign Currency 0.00 -0.11 0.03 -0.10 Gain on settlement of payables 0.00 -4.60 0.00 -4.60 Adjusted EBITDA 2.79 -0.26 7.35 6.13 Conference Call

In conjunction
with this announcement, Synergy will host a conference call at 9:00 a.m. ET / 6:00 a.m. PT on March 31, 2025 with the Company’s
Chief Executive Officer, Jack Ross, and the Company’s Chief Financial Officer, Jaime Fickett. A live webcast of the call will be
available on the Investor Relations section of Synergy’s website.
To access the call by phone, please go to this link (registration link)
and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call 15 minutes
ahead of the scheduled start time. A replay of the webcast will also be available for a limited time on the Company’s website.

About Synergy CHC Corp.

Synergy CHC Corp. is a provider of consumer health
care and lifestyle products. Synergy’s current brand portfolio consists of two marquee brands, FOCUSfactor, a clinically-tested brain
health supplement that has been shown to improve memory, concentration and focus, and Flat Tummy, a lifestyle and wellness brand that
provides a suite of nutritional products to help women achieve their weight management goals.

Forward Looking Statements

Certain statements contained in this press
release constitute “forward-looking statements.” These forward-looking statements represent Synergy’s expectations or beliefs
concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking
statements are subject to risks, uncertainties and other factors, which are set forth in Synergy’s registration statement on Form S-1,
as amended, many of which are outside of Synergy’s control, that could cause actual results to differ materially from the results discussed
in the forward-looking statements.

Any forward-looking statement speaks only as
of the date on which it is made, and, except as required by law, Synergy does not undertake any obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible
for Synergy to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and
other cautionary statements in Synergy’s filings with the SEC. The risk factors and other factors noted in Synergy’s filings could
cause its actual results to differ materially from those contained in any forward-looking statement.

Investor Relations

Gateway Group

Cody Slach and Alex Thompson

SNYR@gateway-grp.com

Synergy CHC Corp.

Consolidated Balance Sheets

December 31, 2024 December 31, 2023

Assets

Current Assets

Cash and cash equivalents $	687,920 $	632,534

Restricted cash 100,000 100,000

Accounts receivable, net 5,321,037 2,106,094

Other receivables 1,999,637 -

Loan receivable (related party) 4,375,059 4,459,996

Prepaid expenses (including related party amount of $312,966 and $501,321, respectively) 1,859,563 797,985

Inventory, net 1,716,552 3,726,240

Total Current Assets 16,059,768 11,822,849

Intangible assets, net 283,333 416,667

Total Assets $	16,343,101 $	12,239,516

Liabilities and Stockholders’ Deficit

Current Liabilities:

Accounts payable and accrued liabilities (including related party payable of $88,644 and $26,885, respectively) $	5,191,868 $	11,727,490

Income taxes payable 242,977 185,665

Contract liabilities 24,252 14,202

Short term loans payable, net of debt discount 7,725,272 2,094,525

Current portion of long-term notes payable, net of debt discount and debt issuance cost, related party 4,000,000 -

Total Current Liabilities 17,184,369 14,021,882

Long-term Liabilities:

Notes payable, net of debt discount, related parties 8,333,053 12,426,997

Notes payable 7,457,022 13,096,610

Total long-term liabilities 15,790,075 25,523,607

Total Liabilities 32,974,444 39,545,489

Commitments and contingencies

Stockholders’ Deficit:

Common stock, $0.00001 par value; 300,000,000 shares authorized; 8,721,818 and 7,553,818, shares issued, respectively; 8,541,745 and 7,373,745 outstanding, respectively 87 76

Additional paid in capital 27,643,660 19,148,707

Accumulated other comprehensive loss (47,777	) (102,467	)

Accumulated deficit (44,099,813	) (46,224,789	)

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

Total stockholders’ deficit (16,631,343	) (27,305,973	)

Total Liabilities and Stockholders’ Deficit $	16,343,101 $	12,239,516

Synergy CHC Corp.

Consolidated Statements of Operations and Other
Comprehensive Income

For the year ended For the year ended

December 31, 2024 December 31, 2023

Revenue $	34,834,243 $	42,777,633

Cost of sales 11,191,224 10,697,323

Gross Profit 23,643,019 32,080,310

Operating expenses

Selling and marketing 12,991,431 15,188,528

General and administrative 4,717,006 6,051,703

Depreciation and amortization 133,334 33,333

Total operating expenses 17,841,771 21,273,564

Income from operations 5,801,248 10,806,746

Other (income) expenses

Other income (510,534	) -

Interest income (1,523	) (1,616	)

Interest expense 4,105,198 4,236,149

Remeasurement gain on translation of foreign subsidiary (18,954	) (1,517	)

Total other expenses 3,574,187 4,233,016

Net income before income taxes 2,227,061 6,573,730

Income tax expense 102,085 234,980

Net income after tax $	2,124,976 $	6,338,750

Net income per share – basic $	0.28 $	0.86

Net income per share - diluted $	0.28 $	0.86

Weighted average common shares outstanding

Basic 7,588,095 7,373,745

Diluted 7,630,501 7,373,745

Comprehensive income:

Net income $	2,124,976 $	6,338,750

Foreign currency translation adjustment 54,690 (124,856	)

Comprehensive income $	2,179,666 $	6,213,894

Synergy CHC Corp.

Consolidated Statements of Cash Flows

For the year ended For the year ended

December 31, 2024 December 31, 2023

Cash Flows from Operating Activities

Net income $	2,124,976 $	6,338,750

Adjustments to reconcile net income to net cash  provided by operating activities:

Amortization of debt issuance cost 56,796 48,610

Depreciation and amortization 133,334 33,333

Gain on settlement of liabilities - (4,635,986	)

Foreign currency transaction (gain) loss 54,321 (105,192	)

Remeasurement gain on translation of foreign subsidiary (18,954	) (1,517	)

Non cash implied interest 4,799 29,401

Accrual of loan success fee and warrants converted to loan - 83,250

Write-off of inventory 125,364 251,021

Stock issued for loan financing 97,920 -

Income from employee retention credits (252,405	) -

Income from insurance on stolen goods (258,129	) -

Changes in operating assets and liabilities:

Accounts receivable (3,214,943	) 1,378,620

Other receivables (1,489,103	) -

Loan receivable, related party 84,937 (51,245	)

Inventory 1,884,324 3,990,456

Prepaid expenses (1,250,023	) (288,789	)

Prepaid expense, related party (145,092	) (369,427	)

Income taxes receivable - 14,339

Income taxes payable 57,312 185,665

Contract liabilities 10,050 9,005

Accounts payable and accrued liabilities (2,870,633	) (6,645,324	)

Accounts payable, related party 61,759 156,759

Net cash used (used in) provided by operating activities (4,803,390	) 421,729

Cash Flows from Investing Activities - -

Cash Flows from Financing Activities

Proceeds from issuance of common stock at IPO 8,397,044 -

Advances from related party 3,528,003 1,170,000

Repayments of advances to related party (3,200,000	) (1,170,000	)

Repayment of notes payable, related party (84,500	) (145,500	)

Proceeds from notes payable 1,360,000 360,000

Repayment of notes payable (5,196,461	) (2,305,282	)

Net cash provided by (used in) financing activities 4,804,086 (2,090,782	)

Effect of exchange rate on cash, cash equivalents and restricted cash 54,690 (124,856	)

Net increase (decrease) in cash, cash equivalents and restricted cash 55,386 (1,793,909	)

Cash, Cash Equivalents and restricted cash, beginning of year 732,534 2,526,443