SEC Filing Document

Company: Synergy CHC Corp.
Ticker: SNYR
CIK: 1562733
Filing Type: S-1/A
Document Type: S-1/A
Date Filed: 2024-07-29
Accession Number: 0001013762-24-002165
Exchange: Nasdaq
SIC Code: 2833
SIC Description: Medicinal Chemicals & Botanical Products
URL: https://www.sec.gov/Archives/edgar/data/1562733/000101376224002165/ea0208324-02.htm

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to the United Kingdom, no shares have been offered or will be offered pursuant to the offering to the public in the United Kingdom prior to the publication of a prospectus in relation to the shares that has been approved by the Financial Conduct Authority, except that offers of shares may be made to the public in the United Kingdom at any time under the following exemptions under the UK Prospectus Regulation: • to any legal entity which is a “qualified investor” as defined under Article 2 of the UK Prospectus Regulation; • to fewer than 150 natural or legal persons (other than “qualified investors” as defined under Article 2 of the UK Prospectus Regulation), subject to obtaining the prior consent of the representatives for any such offer; or • in any other circumstances falling within Section 86 of the Financial Services and Markets Act 2000 (as amended, the “FSMA”),

provided that no such offer of shares shall require the Company or any underwriter to publish a prospectus pursuant to Section 85 of the FSMA or supplement a prospectus pursuant to Article 23 of the UK Prospectus Regulation.

For the purposes of this provision, the expression an “offer to the public” in relation to any shares in the United Kingdom means the communication in any form and by any means of sufficient information on the terms of the offer and any shares to be offered so as to enable an investor to decide to purchase or subscribe for any shares and the expression “UK Prospectus Regulation” means Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended by the European Union (Withdrawal Agreement) Act 2020.

In addition, in the United Kingdom, this prospectus is only being distributed to, and is only directed at, and any investment or investment activity to which this prospectus relates is available only to, and will be engaged in only with, persons in the United Kingdom who are “qualified investors” (as defined in the UK Prospectus Regulation) (i) who have professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 as amended (the “Order”); and/or (ii) who are high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”) or otherwise in circumstances which have not resulted and will not result in an offer to the public of any shares in the United Kingdom within the meaning of the FSMA. Any person in the United Kingdom who is not a relevant person should not take any action on the basis of this prospectus and should not act or rely on it.

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Notice to Prospective Investors in Switzerland

This document is not intended to constitute an offer or solicitation to purchase or invest in the securities. The securities may not be publicly offered, directly or indirectly, in Switzerland within the meaning of the Swiss Financial Services Act (“FinSA”) and no application has or will be made to admit the securities to trading on any trading venue (exchange or multilateral trading facility) in Switzerland. Neither this document nor any other offering or marketing material relating to the securities constitutes a prospectus pursuant to the FinSA, and neither this document nor any other offering or marketing material relating to the securities may be publicly distributed or otherwise made publicly available in Switzerland.

Neither this document nor any other offering or marketing material relating to the offering, the Company or the securities have been or will be filed with or approved by any Swiss regulatory authority. In particular, this document will not be filed with, and the offer of securities will not be supervised by, the Swiss Financial Market Supervisory Authority FINMA (FINMA), and the offer of securities has not been and will not be authorized under the Swiss Federal Act on Collective Investment Schemes (“CISA”). The investor protection afforded to acquirers of interests in collective investment schemes under the CISA does not extend to acquirers of the securities.

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LEGAL MATTERS

The validity of the shares of common stock offered hereby will be passed upon for us by Nelson Mullins Riley & Scarborough LLP, Raleigh, North Carolina. Loeb & Loeb LLP, New York, New York is acting as counsel for the underwriters.

EXPERTS

The consolidated financial statements of Synergy CHC Corp. as of December 31, 2023 and 2022 and for the years then ended included in this prospectus have been so included in reliance on the reports of RBSM LLP, an independent registered public accounting firm, which are included herein, given on the authority of said firm as experts in auditing and accounting.

WHERE YOU CAN FIND MORE INFORMATION

We have filed with the SEC a registration statement on Form S-1 under the Securities Act, with respect to the shares of common stock being offered by this prospectus. This prospectus, which constitutes part of the registration statement, does not contain all of the information set forth in the registration statement or the exhibits and schedules filed therewith. Statements contained in this prospectus regarding the contents of any contract or any other document that is filed as an exhibit to the registration statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the registration statement.

Upon completion of this offering, we will be subject to the information and periodic requirements of the Exchange Act and, in accordance therewith, file annual, quarterly and current reports, proxy statements and other information with the SEC. The SEC maintains a website that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC. The address is www.sec.gov. We also maintain a website at www.synergychc.com. The information contained in, or that can be accessed through, our website is not incorporated by reference in, and is not part of, this prospectus. You may access our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act with the SEC free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC.

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INDEX TO FINANCIAL STATEMENTS

Page

Unaudited Interim Financial Statements:

Condensed Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023 F-2

Unaudited Condensed Consolidated Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2024 and 2023 F-3

Unaudited Condensed Consolidated Statement of Stockholders’ Deficit for the Three Months Ended March 31, 2024 and 2023 F-4

Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months ended March 31, 2024 and 2023 F-5

Notes to the Unaudited Condensed Consolidated Financial Statements F-6

Audited Annual Financial Statements:

Report of Independent Registered Accounting Firm F-27

Consolidated Balance Sheets as of December 31, 2023 and 2022 F-28

Consolidated Statements of Operations and Other Comprehensive Income (Loss) for the Years Ended December 31, 2023 and 2022 F-29

Consolidated Statement of Changes in Stockholders’ (Deficit) Equity for the Years Ended December 31, 2023 and 2022 F-30

Consolidated Statements of Cash Flows for the Years Ended December 31, 2023 and 2022 F-31

Notes to the Consolidated Financial Statements F-33

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Synergy CHC Corp.
Condensed Consolidated Balance Sheets

March 31, 2024 December 31, 2023

(Unaudited)

Assets

Current Assets

Cash and cash equivalents $	910,749 $	632,534

Restricted cash 100,000 100,000

Accounts receivable, net 2,424,424 2,106,094

Loan receivable (related party) 4,434,834 4,459,996

Prepaid expenses (including related party amount of $667,008 and $501,321, respectively) 1,166,560 797,985

Inventory, net 2,709,785 3,726,240

Total Current Assets 11,746,352 11,822,849

Intangible assets, net 383,333 416,667

Total Assets $	12,129,685 $	12,239,516

Liabilities and Stockholders’ Deficit

Current Liabilities:

Accounts payable and accrued liabilities (including related party payable of $7,245 and $26,885, respectively) $	6,144,476 $	11,727,490

Income taxes payable 165,350 185,665

Contract liabilities 27,134 14,202

Short term loans payable, related party, net of debt discount 1,400,000 —

Current portion of long-term notes payable, net of debt discount and debt issuance cost 4,094,057 2,094,525

Total Current Liabilities 11,831,017 14,021,882

Long-term Liabilities:

Notes payable, net of debt discount, related parties 12,335,452 12,426,997

Notes payable 14,557,022 13,096,610

Total long-term liabilities 26,892,474 25,523,607

Total Liabilities 38,723,491 39,545,489

Commitments and contingencies

Stockholders’ Deficit:

Common stock, $0.00001 par value; 300,000,000 shares authorized; 89,889,074 and 89,889,074, shares issued and outstanding, respectively 899 899

Additional paid in capital 19,147,884 19,147,884

Accumulated other comprehensive income (loss) 29,170 (102,467	)

Accumulated deficit (45,771,759	) (46,352,289	)

Total stockholders’ deficit (26,593,806	) (27,305,973	)

Total Liabilities and Stockholders’ Deficit $	12,129,685 $	12,239,516

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements

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