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

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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

Cost of sales 2,335,901 3,028,023 7,421,930 8,351,645

Gross profit 4,790,432 7,777,712 17,141,106 21,207,795

Operating expenses

Selling and marketing 2,509,440 4,302,034 9,149,303 10,533,217

General and administrative 1,196,784 1,326,864 3,449,007 4,294,634

Depreciation and amortization 33,333 - 100,000 -

Total operating expenses 3,739,557 5,628,898 12,698,310 14,827,851

Income from operations 1,050,875 2,148,814 4,442,796 6,379,944

Other (income) expenses

Other income (252,405	) - (252,405	) -

Interest expense, net 704,707 885,548 2,559,454 2,605,320

Remeasurement (gain) loss on translation of foreign subsidiary 7,279 (7,555	) 2,166 (11,716	)

Total other expenses 459,581 877,993 2,309,215 2,593,604

Net income before income taxes 591,294 1,270,821 2,133,581 3,786,340

Income tax benefit (expense) 192,299 13,366 (114,272	) (38,896	)

Net income after tax $	783,593 $	1,284,187 $	2,019,309 $	3,747,444

Net income per share – basic $	0.10 $	0.17 $	0.27 $	0.50

Net income per share – diluted $	0.10 $	0.17 $	0.27 $	0.50

Weighted average common shares outstanding

Basic 7,553,818 7,553,818 7,553,818 7,553,818

Diluted 7,553,818 7,553,818 7,553,818 7,553,818

Synergy CHC Corp.

Unaudited Condensed Consolidated Statements of
Cash Flows

For the nine months ended For the nine months ended

September 30, 2024 September 30, 2023

Cash Flows from Operating Activities

Net income $	2,019,309 $	3,747,444

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

Amortization of debt issuance cost 47,519 37,838

Depreciation and amortization 100,000 -

Stock based compensation expense 9,224 -

Foreign currency transaction loss 23,777 16,146

Remeasurement loss on translation of foreign subsidiary 2,166 (11,716	)

Non cash implied interest 4,799 21,994

Changes in operating assets and liabilities:

Accounts receivable (1,965,936	) 102,649

Loan receivable, related party 21,269 118,192

Inventory 1,815,725 3,829,729

Prepaid expenses (205,975	) (1,029,858	)

Prepaid expense, related party (396,683	) (143,106	)

Income taxes receivable - 5,381

Income taxes payable 68,607 -

Contract liabilities (12,102	) 3,434

Accounts payable and accrued liabilities (3,011,384	) (9,335,734	)

Accounts payable, related party 102,206 (100,242	)

Net cash used in operating activities (1,377,479	) (2,737,849	)

Cash Flows from Investing Activities - -

Cash Flows from Financing Activities

Advances from related party 3,395,587 1,000,000

Repayment of advances from related party (157,425	) -

Repayment of notes payable, related party (84,500	) (73,500	)

Proceeds from notes payable 600,000 360,000

Repayment of notes payable (2,857,690	) (733,010	)

Net cash provided by financing activities 895,972 553,490

Effect of exchange rate on cash, cash equivalents and restricted cash 108,348 (4,257	)

Net decrease in cash, cash equivalents and restricted cash (373,159	) (2,188,616	)

Cash and restricted cash, beginning of year 732,534 2,526,443

Cash and restricted cash, end of period $	359,375 $	337,827

Supplemental Disclosure of Cash Flow Information:

Cash paid during the period for:

Interest $	2,432,653 $	2,584,604

Income taxes $	45,664 $	-

Supplemental Disclosure of Noncash Investing and Financing Activities:

Accounts payable converted to loan payable upon settlement $	3,770,824 $	-

Reduction of short term related party note payable by reduction of prepaid balance $	328,003 $	-