SEC Filing Document

Company: Synergy CHC Corp.
Ticker: SNYR
CIK: 1562733
Filing Type: S-1/A
Document Type: S-1/A
Date Filed: 2024-09-09
Accession Number: 0001213900-24-076929
Exchange: Nasdaq
SIC Code: 2833
SIC Description: Medicinal Chemicals & Botanical Products
URL: https://www.sec.gov/Archives/edgar/data/1562733/000121390024076929/ea0208324-08.htm

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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. Table of Contents 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.

Table of Contents

INDEX TO FINANCIAL STATEMENTS

Page

Unaudited Interim Financial Statements:

Condensed Consolidated Balance Sheets as of June 30, 2024 (unaudited) and December 31, 2023 F-2

Unaudited Condensed Consolidated Statements of Income and Comprehensive Income for the Six Months Ended June 30, 2024 and 2023 F-3

Unaudited Condensed Consolidated Statement of Stockholders’ Deficit for the Six Months Ended June 30, 2024 and 2023 F-4

Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months ended June 30, 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-29

Consolidated Balance Sheets as of December 31, 2023 and 2022 F-30

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

Consolidated Statement of Changes in Stockholders’ (Deficit) Equity for the Years Ended December 31, 2023 and 2022 F-32

Consolidated Statements of Cash Flows for the Years Ended December 31, 2023 and 2022 F-33

Notes to the Consolidated Financial Statements F-35

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Synergy CHC Corp.
Condensed Consolidated Balance Sheets

June 30, 2024 December 31, 2023

(Unaudited)

Assets

Current Assets:

Cash and cash equivalents $	87,293 $	632,534

Restricted cash 100,000 100,000

Accounts receivable, net 3,268,086 2,106,094

Loan receivable (related party) 4,424,547 4,459,996

Prepaid expenses (including related party amount of $500,000 and $501,321, respectively) 1,073,482 797,985

Inventory, net 1,920,290 3,726,240

Total Current Assets 10,873,698 11,822,849

Intangible assets, net 350,000 416,667

Total Assets $	11,223,698 $	12,239,516

Liabilities and Stockholders’ Deficit

Current Liabilities:

Accounts payable and accrued liabilities (including related party payable of $25,905 and $26,885, respectively) $	5,183,780 $	11,727,490

Income taxes payable 448,039 185,665

Contract liabilities 11,253 14,202

Short term loans payable, related party, net of debt discount 1,181,222 —

Current portion of long-term debt, net of debt discount and debt issuance cost, related party 2,000,000 —

Current portion of long-term debt, net of debt discount and debt issuance cost 5,887,602 2,094,525

Total Current Liabilities 14,711,896 14,021,882

Long-term Liabilities:

Note payable, net of debt discount and debt issuance cost, related party 10,333,053 12,426,997

Notes payable 12,057,022 13,096,610

Total Long-term Liabilities 22,390,075 25,523,607

Total Liabilities 37,101,971 39,545,489

Commitments and contingencies

Stockholders’ Deficit:

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

Additional paid in capital 19,152,495 19,147,884

Accumulated other comprehensive income (loss) 84,906 (102,467	)

Accumulated deficit (45,116,573	) (46,352,289	)

Total stockholders ’ deficit (25,878,273	) (27,305,973	)

Total Liabilities and Stockholders’ Deficit $	11,223,698 $	12,239,516

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

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Synergy CHC Corp.
Unaudited Condensed Consolidated Statements of Income and Other Comprehensive Income

For the six months ended

June 30, 2024 June 30, 2023

Revenue $	17,436,703 $	18,753,705

Cost of sales 5,086,029 5,323,622

Gross profit 12,350,674 13,430,083

Operating expenses

Selling and marketing 6,639,863 6,231,183

General and administrative 2,252,223 2,967,770

Depreciation and amortization 66,667 —

Total operating expenses 8,958,753 9,198,953

Income from operations 3,391,921 4,231,130

Other (income) expenses

Interest expense, net 1,854,747 1,719,772

Remeasurement (gain) loss on translation of foreign subsidiary (5,113	) (4,161	)

Total other expenses 1,849,634 1,715,611

Net income before income taxes 1,542,287 2,515,519

Income tax expense 306,571 52,262

Net income after tax $	1,235,716 2,463,257

Net income per share – basic and diluted $	0.01 $	0.03

Weighted average common shares outstanding

Basic and Diluted 89,889,074 89,889,074

Comprehensive income:

Net income 1,235,716 2,463,257

Foreign currency translation adjustment 187,373 (109,655	)

Comprehensive income $	1,423,089 $	2,353,602

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

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Synergy CHC Corp.
Unaudited Condensed Consolidated Statement of Stockholders’ Deficit

Common stock Additional Paid in Capital Accumulated Other Comprehensive Income (Loss) Accumulated Deficit Total Stockholders’ Deficit

Shares Amount

Balance as of December 31, 2022 89,889,074 $	899 $	19,147,884 $	22,389 $	(52,691,039	) $	(33,519,867	)

Foreign currency translation loss (109,655	) — (109,655	)

Net income 2,463,257 2,463,257

Balance as of June 30, 2023 89,889,074 $	899 $	19,147,884 $	(87,266	) $	(50,227,782	) $	(31,166,264	)

Common stock Additional Paid in Capital Accumulated Other Comprehensive Income (Loss) Accumulated Deficit Total Stockholders’ Deficit

Shares Amount

Balance as of December 31, 2023 89,889,074 $	899 $	19,147,884 $	(102,467	) $	(46,352,289	) $	(27,305,973	)

Fair value of vested stock options 4,611 4,611

Foreign currency translation gain 187,373 187,373

Net income 1,235,716 1,235,716

Balance as of June 30, 2024 89,889,074 $	899 $	19,152,495 $	84,906 $	(45,116,573	) $	(25,878,273	)

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

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Synergy CHC Corp.
Unaudited Condensed Consolidated Statements of Cash Flows

For the six months ended June 30, 2024 For the six months ended June 30, 2023

Cash Flows from Operating Activities

Net income $	1,235,716 $	2,463,257

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

Depreciation and amortization 66,667 —

Stock based compensation expense 4,611 —

Foreign currency transaction loss 23,345 (90,237	)

Remeasurement loss on translation of foreign subsidiary (5,113	) (4,161	)

Non cash implied interest 4,799 14,854

Changes in operating assets and liabilities:

Accounts receivable (1,161,992	) (1,430,158	)

Loan receivable, related party 35,449 276,367

Inventory 1,805,950 3,194,220

Prepaid expenses (276,818	) (926,388	)

Prepaid expense, related party (326,682	) (68,056	)

Income taxes receivable — 14,339

Income taxes payable 262,374 37,480

Contract liabilities (2,949	) (195	)

Accounts payable and accrued liabilities (2,804,381	) (5,196,328	)

Accounts payable, related party (980	) (91,707	)

Net cash used in operating activities (1,140,005	) (1,806,712	)

Cash Flows from Investing Activities

Cash Flows from Financing Activities

Advances from related party 1,509,226 —

Repayment of notes payable, related party (84,500	) (12,500	)

Proceeds from notes payable 600,000 200,000

Repayment of notes payable (1,617,335	) (568,851	)

Net cash provided by (used in) financing activities 407,391 (381,351	)

Effect of exchange rate on cash, cash equivalents and restricted cash 187,373 (109,013	)

Net decrease in cash, cash equivalents and restricted cash (545,241	) (2,297,076	)