Financial Data and Key Metrics Changes - The company reported net revenue of $8.1 million for Q2 2025, a 1% increase from $8 million in the same quarter last year [12] - Gross margin improved to 76.7% from 69.5% year-over-year, primarily driven by license revenue [12] - Net income surged to $1.47 million, a 125% increase compared to $655,000 in the prior year [13] - Earnings per share rose to $0.17 per diluted share, an 86% increase from $0.09 per diluted share in the previous year [14] - EBITDA for the quarter was $3.8 million, up 136% from $1.61 million in Q2 2024 [14] Business Line Data and Key Metrics Changes - The company generated $1.4 million in license fee revenue during the quarter, contributing to overall revenue growth [12] - The functional beverage business is gaining momentum, with significant distribution wins, including national item authorization from Core Mark [8][9] - The RTD (Ready-to-Drink) business saw a notable increase in sales on Amazon, reaching $148,000 in the quarter, up from $41,000 in the previous quarter [20][24] Market Data and Key Metrics Changes - The company expanded its international presence with licensing agreements in Turkey and the UAE, expecting revenue generation from these markets by year-end [6] - A new wholly owned subsidiary in Mexico is set to ship products to Costco and Walmart Mexico by late Q3 or early Q4 2025 [7] Company Strategy and Development Direction - The company is focused on international expansion and strategic partnerships to enter high-potential markets without establishing a direct footprint [6] - A new leadership team has been assembled to drive the beverage strategy and growth, indicating a commitment to scaling operations effectively [8] - The company completed a $20 million debt refinancing, improving financial flexibility and aligning capital structure with long-term growth strategies [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational discipline and execution, marking the tenth consecutive quarter of profitability [5] - The leadership team anticipates accelerating momentum in the second half of the year, driven by strong retail partnerships and product distribution [10] Other Important Information - The company reported a working capital surplus of $12.4 million as of June 30, 2025, compared to a deficit of $1.12 million at the end of 2024 [15] - Cash and cash equivalents increased to $1.5 million from $687,900 at the end of 2024, reflecting improved liquidity [14] Q&A Session Summary Question: Revenue from RTD products - Management indicated that most revenue from RTD products is still to come, but Amazon sales improved significantly to $148,000 this quarter [20][24] Question: Retailers carrying RTD products - Management confirmed multiple retailers in Canada are currently carrying the product, but a detailed list was not provided [22] Question: Licensing revenue structure - Licensing revenue is expected to grow slowly, with management discussing ongoing talks with other groups in different countries [26] Question: Unusual expenses in the quarter - Management noted higher professional fees and legal expenses due to public company costs, but these are expected to persist [28] Question: Revenue from Mexico operations - Revenue from the new subsidiary in Mexico will be recognized as revenue, as the company will have its own sales teams there [30] Question: Flat tummy revenue - Management reported that flat tummy revenue remains steady with no new updates [31]

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Synergy CHC Corp.'s unaudited condensed interim financial statements for Q2 2025 and 2024, prepared under US GAAP [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights | Metric | June 30, 2025 ($) | December 31, 2024 ($) | Change (vs. Dec 31, 2024) ($) | | :-------------------------------- | :-------------- | :---------------- | :-------------------------- | | Cash and cash equivalents | $1,458,561 | $687,920 | +$770,641 | | Accounts receivable, net | $7,069,889 | $5,321,037 | +$1,748,852 | | Inventory, net | $2,364,158 | $1,716,552 | +$647,606 | | Total Current Assets | $19,509,679 | $16,059,768 | +$3,449,911 | | Total Assets | $19,726,346 | $16,343,101 | +$3,383,245 | | Short term loans payable, net | $1,894,857 | $7,725,272 | -$5,830,415 | | Total Current Liabilities | $7,126,547 | $17,184,369 | -$10,057,822 | | Notes payable, long-term | $24,978,999 | $7,457,022 | +$17,521,977 | | Total Liabilities | $32,105,546 | $32,974,444 | -$868,898 | | Total Stockholders' Deficit | $(12,379,200) | $(16,631,343) | +$4,252,143 | [Unaudited Condensed Consolidated Statements of Income and Comprehensive Income](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Income Statement Highlights (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :----------------- | :------------ | :------------ | :----------- | | Product Sales | $6,734,996 | $8,024,840 | -16.08 | | License Revenue | $1,400,000 | - | N/A | | Total Revenue | $8,134,996 | $8,024,840 | +1.37 | | Gross profit | $6,238,605 | $5,575,950 | +11.89 | | Operating expenses | $4,614,870 | $3,992,358 | +15.59 | | Net income after tax | $1,473,237 | $655,186 | +124.86 | | Net income per share – basic | $0.17 | $0.09 | +88.89 | Income Statement Highlights (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :----------------- | :------------- | :------------- | :----------- | | Product Sales | $13,405,530 | $17,436,703 | -23.12 | | License Revenue | $2,900,000 | - | N/A | | Total Revenue | $16,305,530 | $17,436,703 | -6.59 | | Gross profit | $12,402,626 | $12,350,674 | +0.42 | | Operating expenses | $8,831,188 | $8,958,753 | -1.42 | | Net income after tax | $2,349,501 | $1,235,716 | +90.14 | | Net income per share – basic | $0.27 | $0.17 | +58.82 | [Unaudited Condensed Consolidated Statement of Stockholders' Deficit](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Stockholders%27%20Deficit) Stockholders' Deficit Changes (Six Months Ended June 30, 2025) | Item | Amount ($) | | :---------------------------------------------------------------- | :----------- | | Balance as of December 31, 2024 | $(16,631,343) | | Foreign currency translation loss | $(1,935) | | Issuance of common stock for loan financing | $117,648 | | Net income (March 31, 2025) | $876,264 | | Foreign currency transaction gain | $39,874 | | Issuance of pre-funded warrants for settlement of shareholder notes payable | $899,993 | | Issuance of common stock for modification of notes payable | $847,062 | | Net income (June 30, 2025) | $1,473,237 | | Balance as of June 30, 2025 | $(12,379,200) | - The total stockholders' deficit improved from **$(16,631,343)** at December 31, 2024, to **$(12,379,200)** at June 30, 2025, primarily due to net income and equity issuances for debt settlement and financing[14](index=14&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Highlights (Six Months Ended June 30) | Cash Flow Activity | 2025 ($) | 2024 ($) | Change (YoY) ($) | | :----------------------------- | :------------ | :------------ | :----------- | | Net cash used in operating activities | $(899,731) | $(1,140,005) | +$240,274 | | Net cash from investing activities | $0 | $0 | $0 | | Net cash provided by financing activities | $1,632,433 | $407,391 | +$1,225,042 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $770,641 | $(545,241) | +$1,315,882 | | Cash and restricted cash, end of period | $1,558,561 | $187,293 | +$1,371,268 | - The Company saw a **significant increase** in net cash provided by financing activities in 2025, primarily from new loans, leading to a **positive net increase** in cash, cash equivalents, and restricted cash, compared to a decrease in the prior year[16](index=16&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=NOTES%20TO%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) [Note 1 – Nature of the Business](index=11&type=section&id=Note%201%20%E2%80%93%20Nature%20of%20the%20Business) - Synergy CHC Corp. is a consumer health care company focused on building a portfolio of best-in-class consumer product brands through organic growth and acquisitions[17](index=17&type=chunk) - The Company incorporated Synergy CHC Mexico in May 2025 to expand into the Mexican market[18](index=18&type=chunk) [Note 2 – Summary of Significant Accounting Policies](index=11&type=section&id=Note%202%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies) - The unaudited condensed consolidated financial statements are prepared in conformity with US GAAP, with all adjustments considered necessary for fair presentation included[19](index=19&type=chunk) - A 1-for-11.9 reverse stock split was effected on September 11, 2024, with all per-share information retroactively adjusted[21](index=21&type=chunk) - Management concluded that factors such as net income, working capital surplus, debt refinancing, and options for capital raises alleviate substantial doubt about the Company's ability to continue as a going concern for the next twelve months[69](index=69&type=chunk)[70](index=70&type=chunk) - An immaterial error related to Treasury Shares was corrected, resulting in a reclassification of **$127,500** and a revision of earnings per share for prior periods[71](index=71&type=chunk)[74](index=74&type=chunk) [Note 3 – Income Taxes](index=22&type=section&id=Note%203%20%E2%80%93%20Income%20Taxes) Income Tax Expense | Period | 2025 ($) | 2024 ($) | | :---------------------- | :----------- | :----------- | | Three months ended June 30 | $(190,107) | $(179,382) | | Six months ended June 30 | $(178,647) | $(306,571) | - The Company has net operating loss carryforwards of approximately **$48.7 million** (June 30, 2025) and **$50.8 million** (December 31, 2024), but a **100% valuation allowance** has been established due to uncertainty of realization[83](index=83&type=chunk) [Note 4 – Accounts Receivable](index=22&type=section&id=Note%204%20%E2%80%93%20Accounts%20Receivable) Accounts Receivable, Net | Category | June 30, 2025 ($) | December 31, 2024 ($) | | :---------------------- | :------------ | :---------------- | | Trade accounts receivable | $7,069,889 | $5,321,037 | | Other receivables | $2,025,094 | $1,999,637 | | Total accounts receivable, net | $9,094,983 | $7,320,674 | - The allowance for doubtful accounts was **$0** for both periods[84](index=84&type=chunk) [Note 5 – Prepaid Expenses](index=23&type=section&id=Note%205%20%E2%80%93%20Prepaid%20Expenses) Prepaid Expenses Breakdown | Category | June 30, 2025 ($) | December 31, 2024 ($) | | :---------------------------- | :------------ | :---------------- | | Advances for inventory | $260,572 | $605,913 | | Prepaid consulting fees, related party | $695,587 | $296,981 | | Advertising and promotions | $859,920 | $869,920 | | Total | $2,064,094 | $1,859,563 | [Note 6 – Concentration of Credit Risk](index=23&type=section&id=Note%206%20%E2%80%93%20Concentration%20of%20Credit%20Risk) - Two customers accounted for **84%** of trade accounts receivable at June 30, 2025, and three customers accounted for approximately **80%** of net revenue for the six months ended June 30, 2025[87](index=87&type=chunk)[88](index=88&type=chunk) - Two vendors accounted for **58%** of accounts payable at June 30, 2025, and three suppliers accounted for approximately **47%** of purchases for the six months ended June 30, 2025[89](index=89&type=chunk)[90](index=90&type=chunk) [Note 7 – Inventory](index=24&type=section&id=Note%207%20%E2%80%93%20Inventory) Inventory Breakdown | Category | June 30, 2025 ($) | December 31, 2024 ($) | | :------------- | :------------ | :---------------- | | Finished goods | $2,213,770 | $1,578,561 | | Components | $105,388 | $92,991 | | Raw materials | $45,000 | $45,000 | | Total inventory | $2,364,158 | $1,716,552 | - No inventory write-offs occurred during the six months ended June 30, 2025 and 2024[92](index=92&type=chunk) [Note 8 – Intangible Assets](index=24&type=section&id=Note%208%20%E2%80%93%20Intangible%20Assets) Intangible Assets, Net | Category | June 30, 2025 ($) | December 31, 2024 ($) | | :------------------------ | :------------ | :---------------- | | License Fee | $450,000 | $450,000 | | Less accumulated amortization | $(233,333) | $(166,667) | | Intangible assets, net | $216,667 | $283,333 | - Amortization expense for the six months ended June 30, 2025, was **$66,666**[93](index=93&type=chunk) [Note 9 – Related Party Transactions](index=24&type=section&id=Note%209%20%E2%80%93%20Related%20Party%20Transactions) Related Party Balances | Item | June 30, 2025 ($) | December 31, 2024 ($) | | :--------------------------------- | :------------ | :---------------- | | Loan receivable (related party) | $4,427,883 | $4,375,059 | | Prepaid consulting fees, related party | $695,587 | $296,981 | | Royalties, shareholder | $92,955 | $88,644 | - The Company repaid a **$135,000** advance from a related party during the six months ended June 30, 2025[95](index=95&type=chunk) - Loans with Knight Therapeutics Inc., a shareholder, were modified and subsequently repaid in May and June 2025[100](index=100&type=chunk)[106](index=106&type=chunk) [Note 10 – Accounts Payable and Accrued Liabilities](index=26&type=section&id=Note%2010%20%E2%80%93%20Accounts%20Payable%20and%20Accrued%20Liabilities) Accounts Payable and Accrued Liabilities | Category | June 30, 2025 ($) | December 31, 2024 ($) | | :------------------- | :------------ | :---------------- | | Accrued payroll | $195,889 | $76,399 | | Legal fees | $214,829 | $13,722 | | Commissions | - | $450,208 | | Manufacturers | $1,635,113 | $409,744 | | Promotions | $823,174 | $2,570,126 | | Total | $4,960,331 | $5,191,868 | [Note 11 – Notes Payable](index=27&type=section&id=Note%2011%20%E2%80%93%20Notes%20Payable) Notes Payable Summary | Loan Type | June 30, 2025 ($) | December 31, 2024 ($) | | :-------------------------------------- | :------------ | :---------------- | | $10,000,000 August 9, 2017 Loan (Knight) | $0 | $12,333,052 | | $2,000,000 and $6,000,000 Notes | $9,794,165 | $9,794,165 | | $5,450,000 December 28, 2023 Loan | $0 | $2,802,445 | | $3,020,824 March 27, 2024 Loan | $1,400,000 | $2,302,824 | | $17,500,000 May 2025 Loan | $17,500,000 | - | | Total (net of discount) | $26,873,856 | $27,515,346 | - The **$10 million** loan from Knight Therapeutics Inc. was satisfied in May 2025 through a **$10 million** cash repayment, a **$1.2 million** early payment discount, and a **$1.5 million** equity conversion, resulting in a gain of **$1,813,865**[106](index=106&type=chunk)[107](index=107&type=chunk) - The **$2 million** and **$6 million** loans became subordinated debt with no maturity date, subject to specific interest and principal payment conditions[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) - A new **$17.5 million** term loan credit agreement was entered into with ACP Agency, LLC in May 2025, secured by company assets, with proceeds used to repay existing debt and for working capital[130](index=130&type=chunk)[134](index=134&type=chunk) [Note 12 – Stockholders' Deficit](index=32&type=section&id=Note%2012%20%E2%80%93%20Stockholders%27%20Deficit) - The Company issued **30,360 shares** for loan financing, **428,570 pre-funded warrants** (fully exercised) for partial debt settlement, and **441,178 shares** for modification of notes payable during 2025[138](index=138&type=chunk)[139](index=139&type=chunk) Common Stock Issued and Outstanding | Metric | June 30, 2025 | December 31, 2024 | | :---------------- | :------------ | :---------------- | | Shares issued | 9,621,926 | 8,721,818 | | Shares outstanding | 9,441,853 | 8,541,745 | [Note 13 – Commitments and Contingencies](index=33&type=section&id=Note%2013%20%E2%80%93%20Commitments%20and%20Contingencies) - Management believes there are no current legal matters that would have a material effect on the Company's financial position or results of operations[141](index=141&type=chunk) [Note 14 – Stock Options and Warrants](index=33&type=section&id=Note%2014%20%E2%80%93%20Stock%20Options%20and%20Warrants) Stock Options and Warrants Outstanding (June 30, 2025) | Instrument | Number Outstanding | Weighted Average Exercise Price ($) | | :--------- | :----------------- | :---------------------------------- | | Options | 252,102 | $6.15 | | Warrants | 103,500 | $11.70 | - The Company issued **428,570 pre-funded warrants** valued at **$899,993** in June 2025 to settle a loan payable to a shareholder, which were fully exercised during the period[144](index=144&type=chunk)[145](index=145&type=chunk) [Note 15 – Segments](index=34&type=section&id=Note%2015%20%E2%80%93%20Segments) - The Company operates as one operating segment, deriving revenue from the sale of nutraceuticals[146](index=146&type=chunk) Net Sales by Geography (Three Months Ended June 30) | Geography | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :-------------- | :------------ | :------------ | :----------- | | United States | $7,954,326 | $6,705,486 | +18.62 | | Foreign countries | $180,670 | $1,319,354 | -86.31 | Net Sales by Product Group (Six Months Ended June 30) | Product Group | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :-------------- | :------------- | :------------- | :----------- | | Nutraceuticals | $13,405,530 | $17,436,703 | -23.12 | | License Revenue | $2,900,000 | - | N/A | Net Sales by Major Sales Channel (Six Months Ended June 30) | Sales Channel | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :------------ | :------------- | :------------- | :----------- | | Online | $4,836,284 | $2,150,177 | +124.92 | | Retail | $11,469,246 | $15,286,526 | -25.09 | [Note 16 – Subsequent Events](index=36&type=section&id=Note%2016%20%E2%80%93%20Subsequent%20Events) - Subsequent to June 30, 2025, the Company repaid **$1,400,000** of principal on the March 27, 2024 loan, **$416,614** of principal and **$69,386** of interest on the February 2025 loan, **$92,942** of interest on the March 8, 2022 loan, and **$379,371** of interest on the May 2025 loan[153](index=153&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Synergy CHC Corp.'s financial performance and condition for Q2 2025 and 2024 [Special Note Regarding Forward-Looking Statements](index=37&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) - This report includes forward-looking statements that involve risks and uncertainties, and actual results may differ materially from expectations[155](index=155&type=chunk) [Overview](index=37&type=section&id=Overview) - Synergy CHC Corp. is a provider of consumer health care, beauty, and lifestyle products, with core brands FOCUSfactor (brain health supplement) and Flat Tummy (weight management products)[157](index=157&type=chunk) [Non-GAAP Financial Measures](index=38&type=section&id=Non-GAAP%20Financial%20Measures) - The Company uses **EBITDA** (earnings before interest, taxes, depreciation, and amortization) as a non-GAAP financial measure to evaluate business relationships and operating performance[159](index=159&type=chunk) EBITDA Reconciliation | Metric | Three Months Ended June 30, 2025 ($) | Three Months Ended June 30, 2024 ($) | | :------------------------------- | :------------------------------- | :------------------------------- | | Net income | $1,473,237 | $655,186 | | Interest expense | $2,107,714 | $745,528 | | Income tax expense | $190,107 | $179,382 | | Depreciation and amortization | $33,334 | $33,334 | | **EBITDA** | **$3,804,013** | **$1,613,056** | | Metric | Six Months Ended June 30, 2025 ($) | Six Months Ended June 30, 2024 ($) | | :------------------------------- | :------------------------------- | :------------------------------- | | Net income | $2,349,501 | $1,235,716 | | Interest expense | $3,203,083 | $1,855,508 | | Income tax expense | $178,647 | $306,571 | | Depreciation and amortization | $66,667 | $66,667 | | **EBITDA** | **$5,783,637** | **$3,463,701** | [Results of Operations for the Three Months Ended June 30, 2025 and June 30, 2024](index=38&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) This section analyzes Synergy CHC Corp.'s financial performance for the three months ended June 30, 2025 and 2024 [Revenue](index=38&type=section&id=Revenue%20(Three%20Months)) Revenue (Three Months Ended June 30) | Category | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :-------------- | :------------ | :------------ | :----------- | | Product Sales | $6,734,996 | $8,024,840 | -16.08 | | License Revenue | $1,400,000 | - | N/A | | Total Revenue | $8,134,996 | $8,024,840 | +1.37 | - Nutraceuticals revenue decreased due to a new product sell-in in 2024 that did not repeat in 2025, offset by new license revenue for foreign expansion[163](index=163&type=chunk) [Cost of Revenue](index=39&type=section&id=Cost%20of%20Revenue%20(Three%20Months)) Cost of Revenue (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :------------- | :------------ | :------------ | :----------- | | Cost of revenue | $1,896,391 | $2,448,890 | -22.60 | - The decrease in cost of sales was primarily due to the decrease in revenue[164](index=164&type=chunk) [Gross Profit](index=39&type=section&id=Gross%20Profit%20(Three%20Months)) Gross Profit (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :---------- | :------------ | :------------ | :----------- | | Gross profit | $6,238,605 | $5,575,950 | +11.89 | | Gross margin (%) | 77 | 69 | +8 pp | - The increase in gross profit and margin is directly related to the new license revenue[165](index=165&type=chunk) [Operating Expenses](index=39&type=section&id=Operating%20Expenses%20(Three%20Months)) [Selling and Marketing Expenses](index=39&type=section&id=Selling%20and%20Marketing%20Expenses%20(Three%20Months)) Selling and Marketing Expenses (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :---------------------- | :------------ | :------------ | :----------- | | Selling and marketing expenses | $3,062,211 | $3,055,186 | +0.23 | [General and Administrative Expenses](index=39&type=section&id=General%20and%20Administrative%20Expenses%20(Three%20Months)) General and Administrative Expenses (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :----------------------------- | :------------ | :------------ | :----------- | | General and administrative expenses | $1,519,325 | $903,838 | +68.10 | - The increase in general and administrative expenses is primarily due to public market expenses[167](index=167&type=chunk) [Depreciation and Amortization Expenses](index=39&type=section&id=Depreciation%20and%20Amortization%20Expenses%20(Three%20Months)) Depreciation and Amortization Expenses (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :--------------------------- | :---------- | :---------- | :----------- | | Depreciation and amortization | $33,334 | $33,334 | 0.00 | [Other Income and Expenses](index=39&type=section&id=Other%20Income%20and%20Expenses%20(Three%20Months)) Other Income and Expenses (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :---------------------------------------- | :------------ | :------------ | :----------- | | Interest expense | $2,107,714 | $745,528 | +182.72 | | Gain on settlement of loans | $(2,154,522) | - | N/A | | Total other (income) expense | $(39,609) | $749,024 | -105.29 | - The increase in interest expense is primarily due to an advance, shares issued related to the modification of notes payable, and a new May 2025 loan[169](index=169&type=chunk) [Net Income](index=40&type=section&id=Net%20Income%20(Three%20Months)) Net Income (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :-------- | :------------ | :------------ | :----------- | | Net income | $1,473,237 | $655,186 | +124.86 | - Net income significantly increased due to a gain on settlement of loans[170](index=170&type=chunk) [Results of Operations for the Six Months Ended June 30, 2025 and June 30, 2024](index=40&type=section&id=Results%20of%20Operations%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) This section analyzes Synergy CHC Corp.'s financial performance for the six months ended June 30, 2025 and 2024 [Revenue](index=40&type=section&id=Revenue%20(Six%20Months)) Revenue (Six Months Ended June 30) | Category | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :-------------- | :------------- | :------------- | :----------- | | Product Sales | $13,405,530 | $17,436,703 | -23.12 | | License Revenue | $2,900,000 | - | N/A | | Total Revenue | $16,305,530 | $17,436,703 | -6.59 | - Nutraceuticals revenue decreased due to a non-recurring new product sell-in in 2024, partially offset by new license revenue[172](index=172&type=chunk) [Cost of Revenue](index=40&type=section&id=Cost%20of%20Revenue%20(Six%20Months)) Cost of Revenue (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :------------- | :------------ | :------------ | :----------- | | Cost of revenue | $3,902,904 | $5,086,029 | -23.26 | - The decrease in cost of revenue was primarily due to the overall decrease in revenue[173](index=173&type=chunk) [Gross Profit](index=40&type=section&id=Gross%20Profit%20(Six%20Months)) Gross Profit (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :---------- | :------------- | :------------- | :----------- | | Gross profit | $12,402,626 | $12,350,674 | +0.42 | | Gross margin (%) | 76 | 71 | +5 pp | - The slight increase in gross profit and improved gross margin are related to the new license revenue[174](index=174&type=chunk) [Operating Expenses](index=40&type=section&id=Operating%20Expenses%20(Six%20Months)) [Selling and Marketing Expenses](index=40&type=section&id=Selling%20and%20Marketing%20Expenses%20(Six%20Months)) Selling and Marketing Expenses (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :---------------------- | :------------ | :------------ | :----------- | | Selling and marketing expenses | $5,938,482 | $6,639,863 | -10.57 | - The decrease in selling and marketing expenses is primarily due to lower revenue and improved management of promotions[175](index=175&type=chunk) [General and Administrative Expenses](index=40&type=section&id=General%20and%20Administrative%20Expenses%20(Six%20Months)) General and Administrative Expenses (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :----------------------------- | :------------ | :------------ | :----------- | | General and administrative expenses | $2,826,039 | $2,252,223 | +25.48 | - The increase in general and administrative expenses is primarily due to public market expenses[176](index=176&type=chunk) [Depreciation and Amortization Expenses](index=41&type=section&id=Depreciation%20and%20Amortization%20Expenses%20(Six%20Months)) Depreciation and Amortization Expenses (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :--------------------------- | :---------- | :---------- | :----------- | | Depreciation and amortization | $66,667 | $66,667 | 0.00 | [Other Income and Expenses](index=41&type=section&id=Other%20Income%20and%20Expenses%20(Six%20Months)) Other Income and Expenses (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :---------------------------------------- | :------------ | :------------ | :----------- | | Interest expense | $3,203,083 | $1,855,508 | +72.63 | | Gain on settlement of loans | $(2,154,522) | - | N/A | | Total other expense | $1,043,290 | $1,849,634 | -43.60 | - The increase in interest expense is primarily due to an advance taken in 2025, shares issued related to the modification of notes payable, and a new May 2025 loan[178](index=178&type=chunk) [Net Income](index=41&type=section&id=Net%20Income%20(Six%20Months)) Net Income (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :-------- | :------------ | :------------ | :----------- | | Net income | $2,349,501 | $1,235,716 | +90.14 | - Net income significantly increased due to lower operating expenses and a gain on loan settlements[179](index=179&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses Synergy CHC Corp.'s cash position, cash flows, and overall capital management [Overview](index=41&type=section&id=Overview%20(Liquidity)) - As of June 30, 2025, the Company had **$1,458,561** in cash on hand and **$100,000** in restricted cash for credit card collateral[180](index=180&type=chunk) [Cash Flows from Operating Activities](index=41&type=section&id=Cash%20Flows%20from%20Operating%20Activities) Net Cash Used in Operating Activities (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) ($) | | :----------------------------------- | :------------ | :------------ | :----------- | | Net cash used in operating activities | $(899,731) | $(1,140,005) | +$240,274 | - The decrease in net cash used in operating activities was influenced by adjustments including amortization of debt discount, stock issued for notes payable modification, and a gain on debt settlement[182](index=182&type=chunk) [Cash Flows from Investing Activities](index=43&type=section&id=Cash%20Flows%20from%20Investing%20Activities) - The Company used **$0** in net cash for investing activities for both the six months ended June 30, 2025 and 2024[184](index=184&type=chunk) [Cash Flows from Financing Activities](index=43&type=section&id=Cash%20Flows%20from%20Financing%20Activities) Net Cash Provided by Financing Activities (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) ($) | | :----------------------------------- | :------------ | :------------ | :----------- | | Net cash provided by financing activities | $1,632,433 | $407,391 | +$1,225,042 | - The increase in net cash provided by financing activities was primarily attributable to proceeds from new notes payable, partially offset by repayments of notes payable[185](index=185&type=chunk)[186](index=186&type=chunk) [Key Near-Term Initiatives](index=43&type=section&id=Key%20Near-Term%20Initiatives) - The Company plans to organically grow existing product lines, develop and launch new products, expand into new markets, and pursue additional strategic acquisitions[187](index=187&type=chunk) [Off-Balance Sheet Arrangements](index=43&type=section&id=Off-Balance%20Sheet%20Arrangements) - The Company had no off-balance sheet arrangements during the six months ended June 30, 2025, or the year ended December 31, 2024[188](index=188&type=chunk) [Inflation](index=43&type=section&id=Inflation) - The effect of inflation on the Company's operating results was not significant in the six months ended June 30, 2025 or 2024[189](index=189&type=chunk) [Critical Accounting Estimates](index=43&type=section&id=Critical%20Accounting%20Estimates) - Critical accounting estimates include those related to revenue recognition and accounts receivable allowances[190](index=190&type=chunk) [Recent Accounting Pronouncements](index=43&type=section&id=Recent%20Accounting%20Pronouncements) - Information on recent accounting pronouncements is detailed in Note 2 to the unaudited condensed consolidated financial statements[191](index=191&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Synergy CHC Corp. has elected not to provide market risk disclosures - As a smaller reporting company, Synergy CHC Corp. has elected not to provide quantitative and qualitative disclosures about market risk[192](index=192&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded Synergy CHC Corp.'s disclosure controls were not effective as of June 30, 2025 [Evaluation of Disclosure Controls and Procedures](index=44&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - Management concluded that the Company's disclosure controls and procedures were not effective as of June 30, 2025, to ensure material information is recorded, processed, summarized, and reported timely[193](index=193&type=chunk) [Changes in Internal Control Over Financial Reporting](index=44&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) - There have been no material changes in internal control over financial reporting during the quarter ended June 30, 2025[194](index=194&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) Synergy CHC Corp. is not a party to any material legal proceedings - The Company is not a party to any material legal proceedings, but may be involved in routine litigation[197](index=197&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, Synergy CHC Corp. is not required to include risk factors - As a smaller reporting company, the Company is not required to include risk factors in this report, and no material changes to previously disclosed risk factors have occurred[198](index=198&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported for the period - No unregistered sales of equity securities or use of proceeds were reported for the period[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk) [Item 3. Defaults Upon Senior Securities](index=45&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Synergy CHC Corp. reported no defaults upon senior securities - No defaults upon senior securities were reported[202](index=202&type=chunk) [Item 4. Mine Safety Disclosures](index=45&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Synergy CHC Corp - This item is not applicable to the Company[203](index=203&type=chunk) [Item 5. Other Information](index=45&type=section&id=Item%205.%20Other%20Information) No other material information was reported, and no Rule 10b5-1 trading arrangements were adopted - No director or officer adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during the quarter ended June 30, 2025[205](index=205&type=chunk) [Item 6. Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of, or incorporated by reference into, the Quarterly Report - The report includes various exhibits such as merger agreements, asset purchase agreements, articles of incorporation, credit agreements, and certifications[206](index=206&type=chunk)[207](index=207&type=chunk) SIGNATURES [Signature Block](index=47&type=section&id=Signature%20Block) The Quarterly Report was signed by Jack Ross, CEO and Chairman, on August 14, 2025 - The report was signed by Jack Ross, Chief Executive Officer and Chairman, on August 14, 2025[212](index=212&type=chunk)

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Jack Ross celebrated Synergy CHC Corp.'s tenth profitable quarter, highlighting year-over-year growth, global brand expansion, beverage business growth, and successful debt refinancing - Reported tenth consecutive quarter of profitability[4](index=4&type=chunk) - Revenue, gross profit, net income, and earnings per share all grew year-over-year[4](index=4&type=chunk) - Expanded the global footprint of the FOCUSfactor brand through a licensing agreement in Turkey[4](index=4&type=chunk) - Secured distribution partners across North America for the RTD beverage business[4](index=4&type=chunk) - Successfully completed a **$20 million** debt refinancing, extending maturity profile and enhancing financial flexibility[4](index=4&type=chunk) [Second Quarter 2025 Financial Summary](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Summary) Synergy CHC Corp. reported strong Q2 2025 results: revenue up 1% to $8.1 million, gross margin at 76.7%, net income up 125% to $1.5 million, and EBITDA surging 136% to $3.80 million Q2 2025 Financial Performance vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :--------------------- | :---------- | :---------- | :----------- | | Revenue | $8.1 million | $8.0 million | +1% | | Gross Margin | 76.7% | 69.5% | +7.2 ppts | | Income from Operations | $1.62 million | $1.58 million | +2.5% | | Net Income | $1.5 million | $655.2 thousand | +125% | | Earnings Per Share | $0.17 | $0.09 | +86% | | EBITDA (non-GAAP) | $3.80 million | $1.61 million | +136% | [Recent Business Highlights](index=1&type=section&id=Recent%20Business%20Highlights) Recent highlights include major North American retail and distribution wins for FOCUSfactor and beverages, international expansion to Turkey, a $20 million term loan, key beverage hires, and significant liability reductions - Announced major North American retail and distribution wins across FOCUSfactor supplement and beverage lines, expected to yield significant results in the fourth quarter of 2025[7](index=7&type=chunk) - Expanded international licensing deal with Gravity Pharma, adding Turkey alongside the UAE for exclusive distribution of FOCUSfactor[7](index=7&type=chunk) - Entered into a **$20 million** term loan credit agreement, due May 2029, with **$17.5 million** drawn[7](index=7&type=chunk) - Added key individuals to drive the Company's beverage growth during the second quarter[7](index=7&type=chunk) - Reduced outstanding liabilities by **$869 thousand** during the second quarter and by an additional **$1.8 million** subsequent to quarter end[7](index=7&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) [Second Quarter 2025 Income Statement Analysis](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Results) Q2 2025 total revenue rose 1% to $8.1 million, driven by $1.4 million license revenue. Gross margin improved to 76.7%, net income surged 125% to $1.5 million, and diluted EPS grew 86% to $0.17 Q2 2025 Income Statement Highlights (YoY Comparison) | Metric | Q2 2025 ($) | Q2 2024 ($) | Change (YoY) | | :--------------------- | :---------- | :---------- | :----------- | | Total Revenue | $8.1 million | $8.0 million | +1% | | Product Sales | $6.73 million | $8.02 million | -16.1% | | License Revenue | $1.40 million | $0 | N/A | | Gross Margin | 76.7% | 69.5% | +7.2 ppts | | Operating Expenses | $4.6 million | $4.0 million | +16% | | Income from Operations | $1.62 million | $1.58 million | +2.5% | | Net Income | $1.5 million | $655.2 thousand | +125% | | Diluted EPS | $0.17 | $0.09 | +86% | - The increase in gross margin was largely driven by license revenue[8](index=8&type=chunk) - The increase in operating expenses was driven by incremental costs associated with being a public company[9](index=9&type=chunk) [Balance Sheet and Cash Flow Overview](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Overview) As of June 30, 2025, cash increased to $1.5 million, working capital shifted to a $12.4 million surplus, and inventory rose to $2.4 million. Operating cash outflow decreased, with financing activities providing $1.63 million Balance Sheet Highlights (Period-end Comparison) | Metric | June 30, 2025 ($) | December 31, 2024 ($) | Change ($) | | :-------------------------- | :-------------- | :---------------- | :------- | | Cash and Cash Equivalents | $1.5 million | $687.9 thousand | +$770.6K | | Working Capital | $12.4 million surplus | $1.12 million deficit | Significant improvement | | Inventory | $2.4 million | $1.7 million | +$0.7M | Cash Flow from Operating Activities (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change ($) | | :-------------------------------- | :----------- | :----------- | :------- | | Net cash used in operating activities | $(899.7) thousand | $(1.1) million | -$240.3K | - Net cash provided by financing activities for the six months ended June 30, 2025, was **$1.63 million**, primarily driven by proceeds from notes payable (**$18.99 million**) partially offset by repayments of notes payable (**$15.38 million**)[26](index=26&type=chunk) [Non-GAAP Financial Measure Reconciliation: EBITDA](index=2&type=section&id=Non-GAAP%20Financial%20Measure%20Reconciliation%3A%20EBITDA) Synergy CHC Corp. presents EBITDA as a non-GAAP measure to clarify core operating results, with Q2 2025 EBITDA significantly increasing to $3.80 million from $1.61 million in Q2 2024 - EBITDA is disclosed as a non-GAAP financial measure to enhance investors' overall understanding of financial performance by excluding certain items that may not be indicative of core operating results[14](index=14&type=chunk)[15](index=15&type=chunk) EBITDA Reconciliation (Three Months Ended June 30) | Metric | Q2 2025 ($) | Q2 2024 ($) | | :-------------------------- | :---------- | :---------- | | Net income for the period | $1.47 million | $0.66 million | | Adjusted for: | | | | Interest expense, net | $2.11 million | $0.74 million | | Amortization of intangible assets | $0.03 million | $0.03 million | | Tax expense | $0.19 million | $0.18 million | | **EBITDA** | **$3.80 million** | **$1.61 million** | [Company Information](index=3&type=section&id=Company%20Information) [About Synergy CHC Corp.](index=3&type=section&id=About%20Synergy%20CHC%20Corp.) Synergy CHC Corp. is a consumer health and wellness company, offering FOCUSfactor brain supplements and Flat Tummy women's wellness and weight management products - Synergy CHC Corp. is a provider of consumer health and wellness products[18](index=18&type=chunk) - Its brand portfolio includes FOCUSfactor (brain health supplement) and Flat Tummy (women's wellness and weight management)[18](index=18&type=chunk) [Forward Looking Statements](index=3&type=section&id=Forward%20Looking%20Statements) This report contains forward-looking statements on future events, subject to risks and uncertainties outlined in SEC filings, and the company does not commit to updates unless legally required - Statements regarding expansion and growth initiatives, refinancing of indebtedness, and free cash flow constitute "forward-looking statements"[19](index=19&type=chunk) - These forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from the results discussed[19](index=19&type=chunk)[20](index=20&type=chunk) - Synergy does not undertake any obligation to update or revise any forward-looking statement, except as required by law[20](index=20&type=chunk) [Investor Relations](index=3&type=section&id=Investor%20Relations) Investor relations inquiries for Synergy CHC Corp. can be directed to Gateway Group, with contacts Cody Slach and Greg Robles, via phone or email - Investor Relations contact information is provided for Gateway Group (Cody Slach, Greg Robles) via phone and email[21](index=21&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $19.7 million, total liabilities decreased to $32.1 million, and the stockholders' deficit improved to $(12.4) million Condensed Consolidated Balance Sheets (Selected Items) | Item | June 30, 2025 ($) | December 31, 2024 ($) | | :------------------------------------------ | :-------------- | :---------------- | | **Assets** | | | | Cash and cash equivalents | $1,458,561 | $687,920 | | Accounts receivable, net | $7,069,889 | $5,321,037 | | Inventory, net | $2,364,158 | $1,716,552 | | Total Current Assets | $19,509,679 | $16,059,768 | | Total Assets | $19,726,346 | $16,343,101 | | **Liabilities** | | | | Total Current Liabilities | $7,126,547 | $17,184,369 | | Notes payable, net of debt discount (long-term) | $24,978,999 | $7,457,022 | | Total Liabilities | $32,105,546 | $32,974,444 | | **Stockholders' Deficit** | | | | Total stockholders' deficit | $(12,379,200) | $(16,631,343) | [Unaudited Condensed Consolidated Statements of Income and Comprehensive Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) The income statement shows Q2 2025 total revenue at $8.1 million with $1.5 million net income. For H1 2025, total revenue was $16.3 million, and net income reached $2.3 million, indicating improved profitability Condensed Consolidated Statements of Income (Three Months Ended June 30) | Metric | Q2 2025 ($) | Q2 2024 ($) | | :-------------------------------- | :---------- | :---------- | | Product Sales | $6,734,996 | $8,024,840 | | License Revenue | $1,400,000 | - | | Total Revenue | $8,134,996 | $8,024,840 | | Cost of sales | $1,896,391 | $2,448,890 | | Gross profit | $6,238,605 | $5,575,950 | | Operating expenses | $4,614,870 | $3,992,358 | | Income from operations | $1,623,735 | $1,583,592 | | Net income after tax | $1,473,237 | $655,186 | | Net income per share – basic | $0.17 | $0.09 | Condensed Consolidated Statements of Income (Six Months Ended June 30) | Metric | H1 2025 ($) | H1 2024 ($) | | :-------------------------------- | :---------- | :---------- | | Product Sales | $13,405,530 | $17,436,703 | | License Revenue | $2,900,000 | - | | Total Revenue | $16,305,530 | $17,436,703 | | Cost of sales | $3,902,904 | $5,086,029 | | Gross profit | $12,402,626 | $12,350,674 | | Operating expenses | $8,831,188 | $8,958,753 | | Income from operations | $3,571,438 | $3,391,921 | | Net income after tax | $2,349,501 | $1,235,716 | | Net income per share – basic | $0.27 | $0.17 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For H1 2025, operating cash outflow improved to $899.7 thousand, while financing activities provided $1.63 million, resulting in a net cash increase of $770.6 thousand Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30) | Metric | H1 2025 ($) | H1 2024 ($) | | :------------------------------------------ | :-------------- | :-------------- | | Net income | $2,349,501 | $1,235,716 | | Amortization of debt discount and debt issuance cost | $892,435 | - | | Gain on settlement of debt | $(2,154,522) | - | | Net cash used in operating activities | $(899,731) | $(1,140,005) | | Net cash provided by financing activities | $1,632,433 | $407,391 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $770,641 | $(545,241) | | Cash and restricted cash, end of period | $1,558,561 | $187,293 | - Significant financing activities included proceeds from notes payable of **$18,996,250** and repayment of notes payable of **$15,382,903** for the six months ended June 30, 2025[26](index=26&type=chunk)

Core Insights - Synergy CHC Corp. reported strong financial results for Q2 2025, marking its tenth consecutive quarter of profitability, with year-over-year growth in revenue, gross profit, net income, and earnings per share [2][5][7] Financial Performance - Revenue for Q2 2025 was $8.1 million, a 1% increase from $8.0 million in Q2 2024 [5][8] - Gross margin improved to 76.7% in Q2 2025 from 69.5% in Q2 2024, primarily due to increased license revenue [5][8] - Operating expenses rose to $4.6 million, up 16% from $4.0 million in Q2 2024, attributed to costs related to being a public company [6][8] - Income from operations was $1.62 million, a 2.5% increase compared to $1.58 million in Q2 2024 [6][8] - Net income surged to $1.5 million, reflecting a 125% increase from $655.2 thousand in Q2 2024 [7][8] - Earnings per share increased to $0.17, up 86% from $0.09 in Q2 2024 [7][8] - EBITDA for Q2 2025 was $3.80 million, a 136% increase from $1.61 million in Q2 2024 [9] Strategic Developments - The company expanded its FOCUSfactor brand's global presence through a licensing agreement in Turkey [2][8] - Synergy secured distribution partners across North America for its ready-to-drink (RTD) beverage business [2][8] - A $20 million debt refinancing was completed, enhancing financial flexibility and supporting long-term growth strategies [2][8] Balance Sheet and Cash Flow - As of June 30, 2025, cash and cash equivalents increased to approximately $1.5 million from $687.9 thousand at the end of 2024 [10][20] - Working capital surplus improved to $12.4 million from a deficit of $1.12 million at the end of 2024 [10][20] - Inventory rose to $2.4 million from $1.7 million at the end of 2024 [10][20] - Cash used in operating activities for the first half of 2025 was $899.7 thousand, an improvement from $1.1 million in the same period of 2024 [11][27]

Company Overview - Synergy CHC Corp. is a fast-growing consumer health and wellness company, providing products aimed at improving health and wellness [3] Upcoming Financial Results - The company plans to release its financial results for the second quarter ended June 30, 2025, on August 14, 2025, before market trading opens [1] - A conference call will be held at 9:00 a.m. ET / 6:00 a.m. PT with CEO Jack Ross and CFO Jaime Fickett to discuss the results [2] Product Portfolio - Synergy's brand portfolio includes FOCUSfactor, a clinically studied brain health supplement that enhances memory, concentration, and focus, and Flat Tummy, a lifestyle brand focused on women's wellness and weight management [3]

Core Insights - Synergy CHC Corp. has announced significant retail and distribution wins for its FOCUSfactor supplement and functional beverage lines, reflecting a focused strategy to scale its cognitive health portfolio [1][2] Supplement Gains - London Drugs will launch FOCUSfactor brain health supplements across all 80 store locations in Western Canada starting this summer, targeting a growing health and wellness consumer base [3][4] - Synergy has secured a national distribution agreement with McKesson Canada, allowing access to thousands of pharmacy and health-focused retail locations across Canada, with a rollout scheduled for Q4 2025 [4][5] Beverage Gains - Gabe's will introduce FOCUSfactor Focus + Energy beverages to 137 stores in the Mid-Atlantic and Southeast, with additional exposure through Old Time Pottery's 34 stores, totaling 171 retail locations across 20 states [5][6] - FOCUSfactor will showcase its beverage line at the 2025 ECRM Beverage Show in Dallas, meeting with over 25 national retailers and distributors representing over 32,000 doors across the USA [6][7] Building Momentum - The recent distribution wins follow a series of major agreements earlier this year, indicating accelerating momentum across both product lines and key regions, with expectations for further updates in the coming months [8]

Core Insights - Synergy CHC Corp. has announced significant retail and distribution gains in North America for its supplement and functional beverage portfolios, marking a major expansion in access to its products [1][2] Beverage Gains - Core-Mark has granted national item authorization for FOCUSfactor Focus + Energy beverages, allowing distribution across over 50,000 customer locations in all 50 U.S. states and Canada, with products expected on shelves in Q3 2025 [3][4] - Metro Ontario has launched FOCUSfactor Focus + Energy in over 125 grocery stores, while its convenience division will introduce the brand to over 600 locations starting July 2025 [4] - Energy North Group will add FOCUSfactor beverages to its offerings across its 70 convenience stores and gas stations in New England and Upstate New York, with availability beginning in Q3 2025 [5] - Downey Wholesale has included FOCUSfactor Focus + Energy in its national portfolio, targeting over 10,000 small wholesalers and independent retailers, with products expected to be available in Q3 2025 [6][7] Supplement Gains - Synergy has secured national placement for two FOCUSfactor SKUs within Walmart Canada's vitamin set, with rollout scheduled for Q4 2025, enhancing the brand's international growth strategy [8] - The expansion into Walmart Canada is seen as a significant milestone, building on an 18-year partnership with Walmart in the U.S. and reinforcing FOCUSfactor's leadership in the brain health category [8][9]

Core Insights - Synergy CHC Corp. has expanded its international licensing deal with Gravity Pharma to include Turkey, alongside the UAE, for exclusive distribution of FOCUSfactor®, generating $2 million in upfront licensing revenue with additional performance-based royalties [1][2][5] Company Overview - Synergy CHC Corp. is a consumer health and wellness company known for its flagship brands, including FOCUSfactor®, a clinically tested brain health supplement, and Flat Tummy®, a lifestyle wellness brand for women [4] Strategic Growth - The licensing model in the UAE and Turkey allows Synergy to scale the FOCUSfactor® brand without diluting ownership or diverting focus from U.S. operations, retaining 100% ownership and global intellectual property [2] - The company is pursuing a high-margin, global expansion strategy through capital-efficient partnerships, positioning itself to capitalize on the growing demand for cognitive health solutions [3][5] Market Potential - The brain health market is projected to exceed $20 billion by 2030, indicating significant growth opportunities for Synergy CHC Corp. [5]

Core Insights - Synergy CHC Corp. has appointed Damian Marano as Vice President of Beverage, marking a significant step in its expansion into the functional beverage market [1][2] Company Overview - Synergy CHC Corp. is a consumer health and wellness company with a focus on cognitive-enhancing and clean-energy drinks, leveraging its flagship brand FOCUSfactor [7][8] - The company is rapidly scaling its operations across North America, the U.K., and new international markets, indicating strong growth potential [7] Leadership and Expertise - Damian Marano brings over 20 years of experience in sales and business development within the beverage and consumer goods sectors, having held significant roles at The Coca-Cola Company [2][3] - His previous achievements include leading a $200 million ARR portfolio and implementing AI-driven revenue growth strategies at Coca-Cola [2] - Marano's experience also includes generating $2.5 million in ARR at Cypre and achieving a 10x increase in enterprise deal size at H2O.ai [3] Product Development - The company is launching FOCUSfactor Energy Drinks, which are designed to enhance mental clarity and provide clean energy through fast-acting B-vitamins and nootropics [5] - These beverages are positioned alongside Synergy's existing health products, aiming to meet the growing demand for better-for-you drinks [5][6]

Core Viewpoint - Synergy CHC Corp. has secured a $20 million term loan credit agreement to enhance its capital structure and support growth initiatives [1][3]. Financial Details - The company received a $15 million term loan at closing with an interest rate of SOFR plus 8.5%, structured as interest-only through 2025 [2]. - Quarterly principal payments will commence in January 2026 at $175,000, increasing to $350,000 per quarter in 2027 and beyond [2]. - Additionally, a $2.5 million delayed draw facility and a $2.5 million uncommitted term loan incremental facility are available [2]. Strategic Implications - The CEO of Synergy emphasized that the refinancing supports the company's growth strategy and strengthens its capital structure, providing necessary flexibility for future growth [3]. - The delayed draw proceeds will enable the company to repay debt related to settlement agreements, enhancing financial stability as it pursues strategic goals [3]. Company Overview - Synergy CHC Corp. specializes in consumer health care and lifestyle products, with notable brands including FOCUSfactor, a brain health supplement, and Flat Tummy, a wellness brand focused on nutritional products for weight management [4].