SEC Filing Document

Company: Synergy CHC Corp.
Ticker: SNYR
CIK: 1562733
Filing Type: S-1/A
Document Type: S-1/A
Date Filed: 2024-08-14
Accession Number: 0001213900-24-068424
Exchange: Nasdaq
SIC Code: 2833
SIC Description: Medicinal Chemicals & Botanical Products
URL: https://www.sec.gov/Archives/edgar/data/1562733/000121390024068424/ea0208324-04.htm

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our common stock, and we currently expect that, for the foreseeable future, all earnings, if any, will be retained for use in the development and operation of our business. In the future, our Board may decide, at its discretion, whether dividends may be declared and paid to holders of our common stock. Table of Contents CAPITALIZATION The following table sets forth our cash and cash equivalents and capitalization as of June 30, 2024: • on an actual basis; and • on an as adjusted basis to give effect to our 1-for- reverse stock split, 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 midpoint of the range set forth on the cover page of this prospectus), 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, “Use of Proceeds,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and related notes appearing elsewhere in this prospectus.

As of June 30 , 2024

Actual As Adjusted

Cash and cash equivalents $	87,293

Capitalization:

Current debt:

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

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

Current portion of long term debt 5,887,602 —

Total current debt 9,068,824 —

Long-term debt:

Note payable, net of debt discount, related party 10,333,053 —

Loans payable 12,057,022 —

Total long-term debt 22,390,075 —

Stockholders’ deficit:

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

Additional paid in capital 19,152,495

Accumulated other comprehensive income 84,906

Accumulated deficit (45,116,573	)

Total stockholders’ deficit (25,878,273	)

Total Capitalization $	5,792,725

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

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

•        excludes 4,000,000 shares of common stock issuable upon the exercise of outstanding options at a weighted exercise price of $0.61 per share; and

•        excludes 14,525,000 shares of common stock reserved for future issuance pursuant to our 2014 Equity Incentive Plan.

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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 June 30, 2024 was approximately $(26.2 million), or $(0.29) per share, based on the number of shares of our common stock outstanding as of March 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 1-for-            reverse stock split and 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 midpoint of the range set forth on the cover page of this prospectus), after deducting underwriting discounts and commissions and estimated offering expenses payable by us, our as adjusted net tangible book value as of June 30, 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 per share as of June 30, 2024 $	(0.29	)

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

As adjusted net tangible book value per share 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 $            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. Similarly, each increase (decrease) of 1,000,000 shares in the number of shares of common stock offered by us would increase (decrease) the as adjusted net tangible book value by $            per share and the dilution to new investors by $            per share, assuming the assumed public offering price remains the same and after deducting underwriting discounts and commissions.

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 June 30, 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 midpoint of the range set forth on the cover page of this prospectus), 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 $            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            % and            %, respectively, and the number of shares held and the percentage of total consideration paid by new investors would increase to            % and            %, respectively.

The foregoing calculations exclude:

•        4,000,000 shares of common stock issuable upon the exercise of outstanding options at a weighted exercise price of $0.61 per share; and

•        14,525,000 shares of common stock reserved for future issuance pursuant to our 2014 Equity Incentive Plan.

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MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our results of operations and financial condition should be read together with “Summary Historical Consolidated Financial and Other Data” and the financial statements and related notes included elsewhere in this prospectus. Such discussion and analysis reflects our historical results of operations and financial position and does not give effect to the completion of this offering. This discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” and elsewhere in this prospectus.

Overview

We are a provider of consumer health care, beauty, and lifestyle products. Our current brand portfolio consists of two core brands: FOCUSfactor, a clinically-tested brain health supplement (this study was performed independently and is not related to any FDA-approved IND application) that has been shown to improve memory, concentration and focus and Flat Tummy, a lifestyle brand that provides a suite of nutritional products to help women achieve their weight management goals.

Our management’s discussion and analysis of our financial condition and results of operations are only based on our current business and should be read in conjunction with our unaudited interim condensed consolidated financial statements and audited consolidated financial statements and accompanying notes thereto included elsewhere in this prospectus. Key factors affecting our results of operations include revenues, cost of revenue, operating expenses and income and taxation.