SEC Filing Document

Company: Synergy CHC Corp.
Ticker: SNYR
CIK: 1562733
Filing Type: DRS
Document Type: DRS
Date Filed: 2025-05-05
Accession Number: 0001213900-25-039409
Exchange: Nasdaq
SIC Code: 2833
SIC Description: Medicinal Chemicals & Botanical Products
URL: https://www.sec.gov/Archives/edgar/data/1562733/000121390025039409/filename1.htm

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we may temporarily hold them as cash, deposit them in banks or invest them in cash equivalents or securities. Table of Contents CAPITALIZATION The following table sets forth our cash and cash equivalents and capitalization as of December 31, 2024 on an as adjusted basis to give effect to the issuance and sale by us in this offering of shares of our common stock at an assumed public offering price of $ per share (the last reported sale price of our common stock on the Nasdaq Global Market on , 2025), after deducting the estimated underwriting discounts and commissions and estimated offering expenses that we expect to pay. This table should be read in conjunction with, and is qualified in its entirety by reference to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and related notes incorporated by reference into this prospectus.

As of December 31, 2024

Actual As Adjusted

Cash and cash equivalents $	687,920

Capitalization:

Current debt:

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

Short term loans payable, related party, net of debt discount

Current portion of long term debt 7,725,272

Total current debt 11,725,272

Long-term debt:

Note payable, net of debt discount, related party 8,333,053

Loans payable 7,457,022

Total long-term debt 15,790,075

Stockholders’ deficit:

Common stock, $0.00001 par value; 300,000,000 shares authorized; 8,721,818 shares issued and 8,541,745 shares outstanding, actual; and             shares issued and outstanding, as adjusted 87

Additional paid in capital 27,643,660

Accumulated other comprehensive loss (47,777	)

Accumulated deficit (44,099,813	)

Less: Treasury stock (180,073 shares) at cost (127,000	)

Total stockholders’ deficit (16,631,343	)

Total Capitalization $

Unless we indicate otherwise, all information in this Capitalization section:

•        assumes no exercise by the underwriters of their over-allotment option;

•        excludes 252,102 shares of common stock issuable upon the exercise of outstanding options at a weighted average exercise price of $6.15 per share;

•        excludes 1,220,588 shares of common stock reserved for future issuance pursuant to our 2014 Equity Incentive Plan; and

•        excludes 103,500 shares of common stock issuable upon the exercise of outstanding options at a weighted average exercise price of $11.70 per share.

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DILUTION

If you invest in our common stock in this offering, your interest will be diluted to the extent of the difference between the public offering price per share of our common stock and the as adjusted net tangible book value per share of our common stock immediately after the closing of this offering.

Our historic net tangible book value of our common stock as of December 31, 2024 was approximately $(16.9 million), or $(1.98) per share, based on the number of shares of our common stock outstanding as of December 31, 2024. Historic net tangible book value per share represents our total tangible assets less our total liabilities, divided by the number of outstanding shares of common stock.

After giving effect to the receipt of the net proceeds from our sale of          shares of common stock in this offering at an assumed public offering price of $          per share (the last reported sale price of our common stock on the Nasdaq Global Market on          , 2025), after deducting underwriting discounts and commissions and estimated offering expenses payable by us, our as adjusted net tangible book value as of December 31, 2024 would have been $(          million), or $(          ) per share. This represents an immediate increase in as adjusted net tangible book value of $          per share to our existing stockholders and an immediate dilution of $          per share to investors purchasing common stock in this offering.

We calculate dilution per share to new investors by subtracting the historic net tangible book value per share from the public offering price paid by the new investor. The following table illustrates the dilution to new investors on a per share basis:

Assumed public offering price per share $

Historic net tangible book value (deficit) per share as of December 31, 2024 $	(1.98	)

Increase in net tangible book value per share attributable to new investors in this offering $

As adjusted net tangible book value per share as of December 31, 2024 after this offering

Dilution in net tangible book value per share to new investors in this offering $

Each $1.00 increase (decrease) in the assumed public offering price of $          per share would increase (decrease) our as adjusted net tangible book value per share after this offering by $          per share and the dilution to new investors by $          per share, assuming the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting underwriting discounts and commissions and estimated offering expenses payable by us.

If the underwriters’ option to purchase additional shares to cover over-allotments is exercised in full, the as adjusted net tangible book value per share after giving effect to this offering would be $(          ) per share, representing an immediate increase to existing stockholders of $          per share, and immediate dilution to new investors in this offering of $          per share.

The following table summarizes, as of December 31, 2024, on the as adjusted basis described above:

•        the total consideration paid to us by our existing stockholders and by new investors purchasing common stock in this offering, assuming a public offering price of $          per share (the last reported sale price of our common stock on the Nasdaq Global Market on          , 2025), before deducting underwriting discounts and commissions and estimated offering expenses payable by us in connection with this offering; and

•        the average price per share paid by existing stockholders and by new investors purchasing shares in this offering.

Shares Purchased Total Consideration Average Price Per Share

Number Percent Amount Percent

Existing stockholders % $	% $

New investors % % $

Total 100.0	% $	100.0	% $

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A $1.00 increase (decrease) in the assumed public offering price of $10.00 per share would increase (decrease) total consideration paid by new investors by $          million and increase (decrease) the total consideration paid to us by new investors by          %, assuming the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting underwriting discounts and commissions and estimated offering expenses payable by us.

If the underwriters’ option to purchase additional shares to cover over-allotments is exercised in full, the number of shares held and the percentage of total consideration paid by the existing stockholders after this offering would be reduced to 87% and 62%, respectively, and the number of shares held and the percentage of total consideration paid by new investors would increase to 13% and 38%, respectively.

The foregoing calculations exclude:

•        252,102 shares of common stock issuable upon the exercise of outstanding options at a weighted average exercise price of $6.15 per share;

•        1,220,588 shares of common stock reserved for future issuance pursuant to our 2014 Equity Incentive Plan; and

•        excludes 103,500 shares of common stock issuable upon the exercise of outstanding options at a weighted average exercise price of $11.70 per share.

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DESCRIPTION OF SECURITIES

The following descriptions are summaries of the material terms of our certificate of incorporation and amended and restated bylaws, to which you should refer. Reference is made to the more detailed provisions of, and the descriptions are qualified in their entirety by reference to, the certificate of incorporation and amended and restated bylaws, which are filed with the SEC as exhibits to the registration statement of which this prospectus is a part, and applicable law.

General

Our authorized capital stock consists of 300,000,000 shares of common stock, par value $0.00001 per share, of which 8,752,178 shares are issued and 8,572,105 shares are outstanding as of          , 2025, held by approximately 30 stockholders of record. Upon completion of this offering, there will be           shares of common stock outstanding.

Common Stock

Dividend Rights

The holders of outstanding shares of our common stock are entitled to receive dividends out of funds legally available at the times and in the amounts that our Board of Directors may determine.

Voting Rights

Each holder of our common stock is entitled to one vote for each share of common stock held on all matters submitted to a vote of stockholders. Cumulative voting for the election of directors is not provided for in our articles of incorporation, which means that the holders of a majority of our shares of common stock voted can elect all of the directors then standing for election.

Preemptive or Similar Rights

Our common stock is not entitled to preemptive rights and is not subject to conversion or redemption.

Liquidation Rights