SEC Filing Document

Company: Synergy CHC Corp.
Ticker: SNYR
CIK: 1562733
Filing Type: 8-K
Document Type: EX-99.1
Date Filed: 2024-12-06
Accession Number: 0001213900-24-106222
Exchange: Nasdaq
SIC Code: 2833
SIC Description: Medicinal Chemicals & Botanical Products
URL: https://www.sec.gov/Archives/edgar/data/1562733/000121390024106222/ea022382202ex99-1_synergy.htm

Chunk 0 of 2
Word Count: 1496
Character Count: 9808

Document Content:

Exhibit 99.1

Synergy CHC Reports its Seventh Consecutive
Quarter of Profitability and its Third Quarter 2024 Financial Results

WESTBROOK, Maine, December 6, 2024 –
Synergy CHC Corp. (NASDAQ: SNYR) (“Synergy” or the “Company”), a provider of consumer health care and lifestyle
products, announced today its financial results for the three months ended September 30, 2024.

“We are excited to announce our seventh straight quarter of profitability
and to officially be listed on NASDAQ (SNYR) as a public company, marking a significant milestone for Synergy,” said Jack Ross,
CEO of Synergy. “This not only brings us increased liquidity but also enhances our ability to execute our long-term growth strategy,
positioning us well to capitalize on the opportunities ahead. While our third quarter results were impacted by retailer de-inventorying
related to the new packaging rollout for our FOCUSfactor products, we are extremely pleased by adding new retailers during the quarter.
The expansion of our retail partnerships, including BJ’s Wholesale Clubs and Publix, have significantly increased our distribution
footprint and visibility. These developments, coupled with the strength of our brand portfolio and the absence of re-branding and de-inventorying,
position us well for growth and value creation as we move into 2025 and beyond.”

“As we move into 2025, we are focused on expanding our current
brands distribution footprint and entering new geographical markets. We believe the investments we’ve made in the re-branding of
FOCUSfactor will drive long-term sustainable growth and value creation for our shareholders”

Third Quarter 2024 Financial Summary vs. Same
Year-Ago Period

●	Revenue of $7.1 million vs. $10.8 million.

●	Gross margin of 67.2% vs. 72.0%.

●	Income from operations of $1.1 million vs. $2.1
million.

●	Net income of $0.8 million vs. $1.3 million.

●	Earnings per share of $0.10 vs. $0.17.

●	EBITDA, a non-GAAP financial measure, was $1.3
million vs. $2.2 million.

Recent Business Highlights

●	Expanded partnerships with blue-chip retailers
including BJ’s Wholesale Clubs, now offering two FOCUSfactor products in all 267 locations, as well as Publix, where two of our
products are now available in all 1,200 Publix grocery stores.

●	During the third quarter, the Company reduced
outstanding debt by $1.1 million.

●	On October 24, 2024, Synergy announced the completion
of its initial public offering of 1,150,000 shares of its common stock at $9.00. The shares of common stock began trading on the Nasdaq
Global Market on October 23, 2024, under the ticker symbol “SNYR”.

●	Subsequent to the third quarter and the IPO,
the Company reduced debt by $3.1 million.

●	Subsequent to the third quarter, the Company
added $6.2 million of net cash to its balance sheet at the completion of the IPO.

Third Quarter 2024 Financial Results

Revenue in the third quarter of 2024 was $7.1
million, down 34% compared to $10.8 million in the third quarter of 2023. This was largely driven by a re-branding of FOCUSfactor, which
was the first re-branding since 2015. The result was due to the selling down and de-inventorying by retailers to an acceptable level of
product with the old packaging before accepting product with the new packaging.

Gross margin in the third quarter of 2024 was
67.2%, down 476 basis points compared to 72.0% in the third quarter of 2023. The decrease in gross margin is driven by the product mix
sold during the quarter.

Operating expenses in the third quarter of 2024
were $3.7 million, decreased 34% compared to $5.6 million in the third quarter of 2023. The improvement was driven by management of operating
costs and the decrease in net revenue.

Income from operations for the third quarter of
2024 was $1.1 million compared to $2.1 million in the third quarter of 2023. The decline in operating income in the third quarter of 2024
was due to a decrease in net sales due to the re-branding.

Net income in the third quarter of 2024 was $783.6
thousand compared to net income of $1.3 million in the third quarter of 2023.

EBITDA (a non-GAAP financial measure) in the third
quarter of 2024 was $1.3 million, down 38% compared to $2.2 million in the third quarter of 2023. The decrease was primarily due to the
decrease in net revenue due to the re-branding.

Balance Sheet and Cash Flow

As of September 30, 2024, Synergy had approximately
$259.4 thousand in cash and cash equivalents, compared to $632.5 thousand in cash and cash equivalents as of December 31, 2023. As of
September 30, 2024, Synergy had $37.3 million in total liabilities, compared to $39.5 million in total liabilities as of December 31,
2023, an improvement of $2.2 million.

As of September 30, 2024, Synergy had $1.9 million
in inventory, compared to $3.7 million of inventory as of December 31, 2023.

Cash used in operating activities for the nine
months ended September 30, 2024 was $1.4 million compared to $2.8 million for the nine months ended September 30, 2023. The decrease in
cash used from operating activities was primarily attributable to a reduction in accounts payable and accrued expenses.

Conference Call

In conjunction
with this announcement, Synergy will host a conference call at 9:00 a.m. ET / 6:00 a.m. PT with the Company’s Chief Executive Officer,
Jack Ross, and the Company’s Chief Financial Officer, Stacy Bieber. A live webcast of the call will be available on the Investor
Relations section of Synergy’s website. To access the call by phone, please go to this link (registration
link) and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call
15 minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time on the Company’s
website.

About Synergy CHC Corp.

Synergy CHC Corp. is a provider of consumer health
care and lifestyle products. Synergy’s current brand portfolio consists of two marquee brands, FOCUSfactor, a clinically-tested brain
health supplement that has been shown to improve memory, concentration and focus, and Flat Tummy, a lifestyle and wellness brand that
provides a suite of nutritional products to help women achieve their weight management goals.

Forward Looking Statements

Certain statements contained in this press
release constitute “forward-looking statements.” These forward-looking statements represent Synergy’s expectations or beliefs
concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking
statements are subject to risks, uncertainties and other factors, which are set forth in Synergy’s registration statement on Form S-1,
as amended, many of which are outside of Synergy’s control, that could cause actual results to differ materially from the results discussed
in the forward-looking statements.

Any forward-looking statement speaks only as
of the date on which it is made, and, except as required by law, Synergy does not undertake any obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible
for Synergy to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and
other cautionary statements in Synergy’s filings with the SEC. The risk factors and other factors noted in Synergy’s filings could
cause its actual results to differ materially from those contained in any forward-looking statement.

Investor Relations

Gateway Group

Cody Slach and Alex Thompson

SNYR@gateway-grp.com

Synergy CHC Corp.

Condensed Consolidated Balance Sheets

September 30, 2024 December 31, 2023

(Unaudited) (Audited)

Assets

Current Assets:

Cash $	259,375 $	632,534

Restricted cash 100,000 100,000

Accounts receivable, net 4,072,030 2,106,094

Loan receivable (related party) 4,438,727 4,459,996

Prepaid expenses (including related party amount of $570,000 and $501,321, respectively) 1,072,639 797,985

Inventory, net 1,910,515 3,726,240

Total Current Assets 11,853,286 11,822,849

Intangible assets, net 316,667 416,667

Total Assets $	12,169,953 $	12,239,516

Liabilities and Stockholders’ Deficit

Current Liabilities:

Accounts payable and accrued liabilities (including related party payable of $129,091 and $26,885, respectively) $	5,082,140 $	11,727,490

Income taxes payable, net 254,272 185,665

Contract liabilities 2,100 14,202

Short term loans payable, related party 2,915,692 -

Current portion of long-term debt, net of debt discount and debt issuance cost, related party 3,000,000 -

Current portion of long-term debt, net of debt discount and debt issuance cost 6,994,766 2,094,525

Total Current Liabilities 18,248,970 14,021,882

Long-term Liabilities:

Note payable, net of debt discount and debt issuance cost, related party 9,333,053 12,426,997

Notes payable 9,757,022 13,096,610

Total Long-term Liabilities 19,090,075 25,523,607

Total Liabilities 37,339,045 39,545,489

Commitments and contingencies

Stockholders’ Deficit:

Common stock, $0.00001 par value; 300,000,000 shares authorized; 7,553,818 shares issued and outstanding 76 76

Additional paid in capital 19,157,931 19,148,707

Accumulated other comprehensive income (loss) 5,881 (102,467	)

Accumulated deficit (44,332,980	) (46,352,289	)

Total stockholders ’ deficit (25,169,092	) (27,305,973	)

Total Liabilities and Stockholders’ Deficit $	12,169,953 $	12,239,516

Synergy CHC Corp.

Unaudited Condensed Consolidated Statements of
Income

For the three months ended For the nine months ended

September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023

Revenue $	7,126,333 $	10,805,735 $	24,563,036 $	29,559,440