SEC Filing Document

Company: Synergy CHC Corp.
Ticker: SNYR
CIK: 1562733
Filing Type: 10-K
Document Type: EX-19.1
Date Filed: 2025-03-31
Accession Number: 0001213900-25-026254
Exchange: Nasdaq
SIC Code: 2833
SIC Description: Medicinal Chemicals & Botanical Products
URL: https://www.sec.gov/Archives/edgar/data/1562733/000121390025026254/ea023575801ex19-1_synergy.htm

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Within Six Months Section 16(b) of the Exchange Act imposes liability on executive officers, members of the board of directors and certain large stockholders of the Company if they have a purchase and sale, or sale and purchase, of Company stock within a period of less than six months (referred to as a “short-swing” trade). This section provides that the Company, or any stockholder who brings a lawsuit on behalf of the Company, may recover the amount of any “profit” realized by such individual on a short-swing trade. It should be noted, however, that while Section 16(b) and the reporting requirements discussed under Section III rest on the premise that such persons are likely to possess inside information, the actual possession of the information is not a precondition to liability being imposed. In other words, because Section 16(b) is so strict, good faith in engaging in short-swing trading is irrelevant.

It does not matter whether the purchase or the sale occurs first and
it is not necessary for the same shares to be involved in a pair of transactions. Nor can losses be offset against gains in a series of
trades. The courts will match a pair of short-swing transactions (using a “lowest purchase price” and “highest sale
price” approach) to obtain the maximum amount of spread between purchase and sale price so that one who even incurs an economic
loss on a series of transactions may find himself giving up a “profit” which he never actually realized.

There are many types of transactions which constitute a “sale”
or a “purchase” within the purview of this restriction. For example, the grant of an option to purchase Company stock pursuant
to a stock option or similar plan may be a “purchase” in certain circumstances, so that if any shares are acquired through
exercise and then sold within six months of the grant of the option, a short-swing trade will have occurred. Another example is an exchange
of Company stock for property or in satisfaction of an obligation by transferring shares of Company stock, in which case the stockholder
will be deemed to have sold them. In addition, a transaction involving Company stock which is effected by a person other than the stockholder,
such as the stockholder’s spouse or minor child, will be deemed to have been made by the stockholder because the stockholder is regarded
as being the “beneficial owner” of such stock. On the other hand, a true gift of stock will not be regarded as a sale.

In general, if a transaction is made by a person closely related to
the stockholder, or by a person with respect to whom the stockholder has certain rights or powers in connection with Company stock (such
as the trustee of a trust over whom the stockholder has the right to direct the disposition of Company stock), the stockholder will be
regarded as having made the transaction.

Any departing executive officers or directors should not make an opposite
trade within six months after the last transaction while an executive officer or director. Such a trade, if it were to occur, and the
sales price be higher than the purchase price against it is matched, would subject the departing executive or director to potential 16(b)
liability as discussed above.

B.	Broad-Based Employee Benefit Plans

SEC Rule 16b-3 provides some relief to executive officers and directors
who are participants in a Company’s broad-based employee benefit plans (i.e., the Company’s 2014 Stock Incentive Plan). Specifically:

●	Grants under these type of plans should be exempt from section 16(b) (the
liability provision) because the plans are administered by our compensation committee, which is composed exclusively of “non-employee”
directors. They, however, are not exempt from reporting under section 16(a) – if you receive an award, you typically will be required
to file a Form 4 reporting the grant.

●	Exercises or vesting of awards is exempt from section 16.

●	Sales of shares on the open market are not exempt – they also have
to be reported on a Form 4 and subject a person to section 16(b) liability if they have had a purchase transaction within 6 months (either
before or after the sale).

At this time, we have no 401(k) plan or “company stock”
account – however, if one were to be adopted:

●	“Discretionary” transactions will only be exempt from “short-swing”
liability if at least six months have passed since an “opposite way” transaction has occurred in the plan (or in any similar
plan).

●	Discretionary transactions include an intra-plan transfer involving Company
stock (a so-called “fund switch”) or a cash distribution funded by a volitional disposition of Company stock.

Therefore, if we were to adopt such a plan, among
other things:

●	Executive officers should not increase the amount of a “benefit”
plan election to purchase Company stock within six months of a decrease in the amount of an election to purchase stock.

●	Executive officers should not instruct the administrator of any plan to dispose
of shares if they have made a new election to increase their investment in Company stock in any of the plans within the prior six months.

●	As long as executive officers do not decrease the amount of the elections
to purchase stock, they can continue to increase the amounts of funds they invest in Company stock more frequently than six months. After
six months has elapsed since the last increase, executive officers can then begin to decrease the amounts invested in Company stock or
dispose of the stock if the plan permits and continue to elect to decrease their elections or dispose of the stock more frequently than
six months.

C.	Short Sales

In addition to the foregoing, the Exchange Act prohibits the Company’s
directors, executive officers, and large stockholders from making sales of any equity securities of the Company which the seller does
not own at the time or, if owned, securities that will not be delivered for a period longer than 20 days after the sale, referred to as
“short sales.”

D.	Options Trading

In addition to the foregoing, the Exchange Act prohibits the Company’s
insiders may not buy or sell puts or calls or other derivative securities on the Company’s securities.

E.	Trading on Margin or Pledging

In addition to the foregoing, the Exchange Act prohibits the Company’s
insiders may not hold Company securities in a margin account or pledge Company securities as collateral for a loan.

F.	Hedging

In addition to the foregoing, the Exchange Act prohibits the Company’s
insiders may not enter into hedging or monetization transactions or similar arrangements with respect to Company securities.

III. REPORTING CHANGES IN OWNERSHIP OF COMPANY COMMON STOCK

A.	General

Section 16(a) of the Exchange Act provides that executive officers,
members of the board of directors and certain large shareholders of the Company must file with the SEC an initial report disclosing the
amount of equity securities of the Company of which such person is a “beneficial owner.” This initial report is made on Form
3. Section 16(a) requires that any reporting persons subject to Section 16(a) must file electronically a transaction report on Form 4
with the SEC before the end of the second business day following the day on which the transaction is executed. Section 16(a) requires
that a Form 5 must generally be filed electronically within 45 days after the end of the Company’s fiscal year.

B.	Covered Persons

Section 16(a) applies to all directors and officers of a public company
and all beneficial owners of more than 10% of a public company’s registered equity securities. An “officer” is defined in
the SEC’s Rule 16a-1(f) to mean generally a company’s president, principal financial officer, principal accounting officer, any vice president
in charge of a principal business unit, division or function, and any other officer who performs a policy-making function. To distinguish
the officers subject to Section 16(a) from other officers of the Company, this policy uses the term “executive officers” to
describe those Company officers subject to Section 16(a).

In addition, because Section 16(a) is concerned with the beneficial
ownership of securities, and because beneficial ownership entails voting and investment power rather than simply record ownership, reporting
persons must be aware of and report the securities transactions effected by all related persons and entities whose stock ownership is
attributable to them under Section 16(a) (e.g., family members living in the same household, trusts, partnerships, and corporations).

C.	Covered Transactions

Section 16(a) applies to virtually every form of change in beneficial
ownership of securities. Purchases and sales, gifts, contributions to trusts, stock option grants and exercises, restricted stock grants,
stock grants under deferred compensation plans, intra-plan transfers involving an issuer equity security fund, Rule 10b5-1 plan transactions,
and other transfers of securities must be reported on a Form 4 filed with the SEC before the end of the second business day following
the day on which the transaction is executed.

D.	Reports to the Company