SEC Filing Document

Company: Synergy CHC Corp.
Ticker: SNYR
CIK: 1562733
Filing Type: 8-K
Document Type: EX-99.1
Date Filed: 2025-05-15
Accession Number: 0001213900-25-043696
Exchange: Nasdaq
SIC Code: 2833
SIC Description: Medicinal Chemicals & Botanical Products
URL: https://www.sec.gov/Archives/edgar/data/1562733/000121390025043696/ea024213601ex99-1_synergy.htm

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Document Content:

Liabilities: Accounts payable and accrued liabilities (including related party payable of $217,956 and $88,644, respectively) $ 3,098,590 $ 5,191,868 Income taxes payable 77,564 242,977 Contract liabilities 36 24,252 Short term loans payable, net of debt discount 4,754,555 7,725,272 Current portion of long-term notes payable, net of debt discount and debt issuance cost, related party 135,000 4,000,000 Total Current Liabilities 8,065,745 17,184,369 Long-term Liabilities: Notes payable, net of debt discount, related parties 12,333,053 8,333,053 Notes payable 10,896,610 7,457,022 Total long-term liabilities 23,229,663 15,790,075 Total Liabilities 31,295,408 32,974,444 Commitments and contingencies Stockholders’ Deficit: Common stock, $0.00001 par value; 300,000,000 shares authorized; 8,752,178 and 8,721,818, shares issued, respectively; 8,572,105 and 8,541,745 outstanding, respectively 88 87 Additional paid in capital 27,761,307 27,643,660 Accumulated other comprehensive loss (49,712 ) (47,777 ) Accumulated deficit (43,223,549 ) (44,099,813 ) Less: Treasury stock (180,073 shares) at cost (127,500 ) (127,500 ) Total stockholders’ deficit (15,639,366 ) (16,631,343 )

Total Liabilities and Stockholders’ Deficit $	15,656,042 $	16,343,101

Synergy CHC Corp.

Unaudited Condensed Consolidated Statements of
Income and Comprehensive Income

For the three months ended For the three months ended

March 31, 2025 March 31, 2024

Revenue

Product Sales 6,670,534 $	9,411,863

License Revenue 1,500,000 -

Total Revenue 8,170,534 9,411,863

Cost of Sales 2,006,513 2,637,139

Gross Profit 6,164,021 6,774,724

Operating expenses

Selling and marketing 2,876,271 3,584,677

General and administrative 1,306,714 1,348,385

Depreciation and amortization 33,333 33,333

Total operating expenses 4,216,318 4,966,395

Income from operations 1,947,703 1,808,329

Other (income) expenses

Interest income (13,882	) (387	)

Interest expense 1,095,369 1,109,980

Remeasurement loss (gain) on translation of foreign subsidiary 1,412 (8,983	)

Total other expenses 1,082,899 1,100,610

Net income before income taxes 864,804 707,719

Income tax benefit (expense) 11,460 (127,189	)

Net income after tax $	876,264 $	580,530

Net income per share – basic $	0.10 $	0.08

Net income per share – diluted $	0.10 $	0.08

Weighted average common shares outstanding

Basic 8,560,636 7,373,745

Diluted 8,577,620 7,373,745

Comprehensive income:

Net income $	876,264 $	580,530

Foreign currency translation adjustment (1,935	) 131,637

Comprehensive income $	874,329 $	712,167

Synergy CHC Corp.

Unaudited Condensed Consolidated Statements of
Cash Flows

For the three months ended For the three months ended

March 31, 2025 March 31, 2024

Cash Flows from Operating Activities

Net income $	876,264 $	580,530

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

Amortization of debt discount and debt issuance cost 406,841 -

Depreciation and amortization 33,333 33,334

Foreign currency transaction loss (gain) (3,137	) 11,178

Remeasurement gain on translation of foreign subsidiary (1,412	) (8,983	)

Non cash implied interest - 7,199

Changes in operating assets and liabilities:

Accounts receivable 940,519 (318,330	)

Other receivables 144,637 -

Loan receivable, related party (833	) 25,162

Inventory (629,935	) 1,016,455

Prepaid expenses (114,787	) (202,888	)

Prepaid expense, related party (195,913	) (165,687	)

Income taxes payable (165,413	) (20,315	)

Contract liabilities (24,216	) 12,932

Accounts payable and accrued liabilities (2,218,041	) (1,808,989	)

Accounts payable, related party 129,312 (19,640	)

Net cash used in operating activities (822,781	) (858,042	)

Cash Flows from Investing Activities - -

Cash Flows from Financing Activities

Advances from related party 135,000 1,400,000

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

Proceeds from notes payable 1,496,250 125,000

Repayment of notes payable (1,316,572	) (435,880	)

Net cash provided by financing activities 314,678 1,004,620

Effect of exchange rate on cash, cash equivalents and restricted cash (1,935	) 131,637

Net decrease in cash, cash equivalents and restricted cash (510,038	) 278,215

Cash and restricted cash, beginning of year 787,920 732,534

Cash and restricted cash, end of period $	277,882 $	1,010,749

Supplemental Disclosure of Cash Flow Information:

Cash paid during the period for:

Interest $	573,529 $	1,102,781

Income taxes $	- $	147,728

Supplemental Disclosure of Noncash Investing and Financing Activities:

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

Issuance of common stock for loan financing $	117,648 $	-