Company Overview - Synergy CHC Corp. is a provider of consumer health care and lifestyle products [3] - The company's brand portfolio includes FOCUSfactor, a clinically-tested brain health supplement, and Flat Tummy, a wellness brand focused on nutritional products for weight management [3] Financial Results Announcement - Synergy plans to release its financial results for the first quarter ended March 31, 2025, on May 15, 2025, before market trading opens [1] - A conference call will be held at 9:00 a.m. ET / 6:00 a.m. PT with the CEO Jack Ross and CFO Jaime Fickett [2] - A live webcast of the call will be available on the Investor Relations section of Synergy's website, and a replay will be accessible for a limited time [2]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-42374 SYNERGY CHC CORP. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organ ...

Financial Performance - Fourth quarter 2024 revenue was $10.3 million, down 22% from $13.2 million in Q4 2023; full year revenue was $34.8 million, down 19% from $42.8 million in 2023[6] - Gross margin for Q4 2024 was 63.3%, compared to 82.3% in Q4 2023; full year gross margin was 67.9%, down from 75.0% in 2023[7] - Net income for Q4 2024 was $105.7 thousand, a decrease from $2.6 million in Q4 2023; full year net income was $2.1 million, down from $6.3 million in 2023[10] - EBITDA for Q4 2024 was $1.7 million, down from $4.5 million in Q4 2023; full year EBITDA was $6.5 million, compared to $10.8 million in 2023[11] - Adjusted EBITDA for Q4 2024 was $2.8 million, up 1,033% from $(0.3) million in Q4 2023; full year Adjusted EBITDA was $7.4 million, an increase of 21% from $6.1 million in 2023[12] - Total revenue for the year ended December 31, 2024, was $34,834,243, a decrease of 18.6% compared to $42,777,633 in 2023[28] - Gross profit for 2024 was $23,643,019, down from $32,080,310 in 2023, reflecting a gross margin decline[28] - Net income after tax for 2024 was $2,124,976, a significant decrease of 66.5% from $6,338,750 in 2023[28] - Comprehensive income for 2024 was $2,179,666, down from $6,213,894 in 2023, reflecting the decline in net income[28] Operating Expenses - Operating expenses in Q4 2024 were $5.1 million, a decrease of 20% from $6.4 million in Q4 2023; full year operating expenses were $17.9 million, down 16% from $21.3 million in 2023[8] - Operating expenses for 2024 were $17,841,771, down from $21,273,564 in 2023, reflecting cost control measures[28] Cash and Liabilities - As of December 31, 2024, Synergy had approximately $687.9 thousand in cash and cash equivalents, an increase from $632.5 thousand as of December 31, 2023[13] - Total liabilities decreased to $33.0 million as of December 31, 2024, down from $39.5 million as of December 31, 2023, reflecting an improvement of $6.6 million[13] - Total current assets increased to $16,059,768 in 2024 from $11,822,849 in 2023, primarily driven by a rise in accounts receivable[26] - Total liabilities decreased to $32,974,444 in 2024 from $39,545,489 in 2023, indicating improved financial leverage[26] - Cash and cash equivalents at the end of 2024 were $687,920, an increase from $632,534 in 2023[26] - The company reported a net cash used in operating activities of $4,803,390 for 2024, compared to a net cash provided of $421,729 in 2023[30] Shareholder Information - The weighted average common shares outstanding increased to 7,588,095 in 2024 from 7,373,745 in 2023, impacting earnings per share[28] - The company completed its initial public offering of 1,150,000 shares at $9.00 on October 24, 2024[15] Partnerships and Expansion - Synergy expanded partnerships with BJ's Wholesale Clubs and Publix, offering FOCUSfactor products in all 267 BJ's locations and two products in all 1,200 Publix stores[15]

Core Insights - Synergy CHC Corp. reported its financial results for the year ending December 31, 2024, highlighting a continued profitability streak with eight consecutive profitable quarters despite challenges in the fourth quarter due to retailer de-inventorying related to the FOCUSfactor packaging transition [2][6]. Financial Performance - Fourth quarter revenue was $10.3 million, a decrease of 22% from $13.2 million in Q4 2023. Full year revenue was $34.8 million, down 19% from $42.8 million in 2023 [6]. - Gross margin for Q4 2024 was 63.3%, down from 82.3% in Q4 2023. For the full year, gross margin was 67.9%, a decline of 712 basis points from 75.0% in 2023 [7]. - Income from operations in Q4 2024 was $1.4 million compared to $4.4 million in Q4 2023. For the full year, it was $5.8 million, down from $10.8 million in 2023 [10]. - Net income for Q4 2024 was $105.7 thousand, a significant drop from $2.6 million in Q4 2023. Full year net income was $2.1 million compared to $6.3 million in 2023 [11]. - EBITDA for Q4 2024 was $1.7 million, down from $4.5 million in Q4 2023. For the full year, EBITDA was $6.5 million compared to $10.8 million in 2023 [12]. - Adjusted EBITDA for Q4 2024 was $2.8 million, a substantial increase of 1,033% from $(0.3) million in Q4 2023. For the full year, Adjusted EBITDA was $7.4 million, up 21% from $6.1 million in 2023 [13]. Business Developments - The company successfully rebranded FOCUSfactor and expanded its distribution with BJ's Wholesale Club and Publix, with FOCUSfactor products now available in all 267 BJ's locations and 1,200 Publix stores [6]. - In Q1 2025, Synergy launched seven new products under the Flat Tummy brand, targeting the growing interest in GLP-1 support products [2]. - The company completed its Initial Public Offering (IPO) in October 2024, issuing 1,150,000 shares at $9.00 per share, with trading commencing on the Nasdaq Global Market under the ticker symbol "SNYR" [6]. Balance Sheet and Cash Flow - As of December 31, 2024, Synergy had approximately $687.9 thousand in cash and cash equivalents, an increase from $632.5 thousand as of December 31, 2023. Total liabilities decreased to $33.0 million from $39.5 million [14]. - The company reduced outstanding debt by $4.5 million during the fourth quarter [6]. - Cash used in operating activities for the year ended December 31, 2024, was $4.8 million, a decline from cash provided by operating activities of $421.7 thousand in 2023 [15].

Core Viewpoint - Synergy CHC Corp. is set to release its financial results for Q4 and the full year of 2024 on March 31, 2025, before market trading begins [1]. Financial Results Announcement - The financial results will be discussed in a conference call at 9:00 a.m. ET / 6:00 a.m. PT, featuring CEO Jack Ross and CFO Jaime Fickett [2]. - A live webcast of the conference call will be available on the Investor Relations section of Synergy's website, with a replay accessible for a limited time [2]. Company Overview - Synergy CHC Corp. specializes in consumer health care and lifestyle products, with a brand portfolio that includes FOCUSfactor, a brain health supplement, and Flat Tummy, a wellness brand focused on nutritional products for weight management [3].

Company Overview - Synergy CHC Corp. is a provider of consumer health care and lifestyle products [2] - The company's brand portfolio includes FOCUSfactor, a clinically-tested brain health supplement, and Flat Tummy, a wellness brand focused on nutritional products for weight management [2] Upcoming Events - Synergy CHC Corp. will attend the 37th Annual ROTH Conference from March 16-18, 2025, in Dana Point, California [1] - Management will be available for one-on-one investor meetings during the conference [1]

Revenue Performance - For the three months ended September 30, 2024, the company reported revenue of $7,126,333, a decrease of 34.5% from $10,805,735 in the same period of 2023[223]. - For the nine months ended September 30, 2024, revenue was $24,563,036, down from $29,559,440 in 2023, a decrease of 16.8%[234]. Gross Profit - Gross profit for the three months ended September 30, 2024, was $4,790,432, representing 67% of revenue, down from $7,777,712 or 72% of revenue in 2023, a decrease of $2,987,280 or 38%[225]. - Gross profit for the nine months ended September 30, 2024, was $17,141,106, or 70% of revenue, compared to $21,207,795, or 72% of revenue in 2023, a decrease of $4,066,689 or 19%[236]. Net Income - Net income for the three months ended September 30, 2024, was $783,593, compared to $1,284,187 for the same period in 2023, reflecting lower revenue[231]. - Net income for the nine months ended September 30, 2024, was $2,019,309, down from $3,747,444 in 2023, attributed to lower revenue[243]. Expenses - Selling and marketing expenses for the three months ended September 30, 2024, were $2,509,440, a decrease from $4,302,034 in 2023, due to improved management of promotions[226]. - The company experienced a decrease in cost of revenue for the three months ended September 30, 2024, at $2,335,901, down from $3,028,023 in 2023, primarily due to decreased revenue[224]. EBITDA - EBITDA for the three months ended September 30, 2024, was $1,329,334, compared to $2,156,369 for the same period in 2023[220]. Cash Flow - For the nine months ended September 30, 2024, net cash used by operating activities decreased to $1,377,479 from $2,737,849 in the same period of 2023, a reduction of approximately 49.6%[245]. - Net cash provided by financing activities increased to $895,972 for the nine months ended September 30, 2024, compared to $553,490 in 2023, reflecting a growth of approximately 62%[249]. Related Party Transactions - Advances from related parties rose significantly to $3,395,587 in the nine months ended September 30, 2024, compared to $1,000,000 in the same period of 2023[250]. Strategic Plans - The company plans to grow its product lines and expand into new markets, specifically focusing on increased distribution for the recently launched ready-to-drink beverage under the FOCUSfactor brand[251]. - The company continues to evaluate strategic acquisition opportunities to enhance its brand portfolio[251]. Other Information - As of September 30, 2024, the company had $259,375 in cash on hand and $100,000 in restricted cash for credit card collateral[244]. - There were no off-balance sheet arrangements during the nine months ended September 30, 2024, or the year ended December 31, 2023[252]. - The impact of inflation on operating results was not significant for the nine months ended September 30, 2024, or 2023[253].

Financial Performance - Revenue for Q3 2024 was $7.1 million, down 34% from $10.8 million in Q3 2023[5] - Net income for Q3 2024 was $0.8 million, compared to $1.3 million in Q3 2023, reflecting a decline of 38%[10] - EBITDA for Q3 2024 was $1.3 million, down 38% from $2.2 million in Q3 2023[10] - Gross profit for the nine months ended September 30, 2024, was $17,141,106, compared to $21,207,795 for the same period last year, indicating a decrease of about 19.2%[22] - Net income after tax for the nine months ended September 30, 2024, was $2,019,309, down from $3,747,444 in the previous year, reflecting a decline of approximately 46.2%[22] - Net income per share – basic for the three months ended September 30, 2023, was $0.10, compared to $0.17 in the same period last year, a decline of approximately 41.2%[22] Margins and Expenses - Gross margin decreased to 67.2%, down 476 basis points from 72.0% in the same period last year[8] - Operating expenses for the three months ended September 30, 2023, totaled $3,739,557, compared to $5,628,898 in the same period last year, a reduction of about 33.5%[22] - Total operating expenses for the nine months ended September 30, 2024, were $12,698,310, down from $14,827,851 in the same period last year, a decrease of about 14.4%[22] - Interest expense, net for the three months ended September 30, 2023, was $704,707, compared to $885,548 in the same period last year, a decrease of about 20.4%[22] Cash and Debt Management - Cash and cash equivalents as of September 30, 2024, were approximately $259.4 thousand, down from $632.5 thousand at the end of 2023[11] - The company reduced outstanding debt by $1.1 million during Q3 2024 and an additional $3.1 million post-IPO[6] - Total liabilities decreased to $37.3 million as of September 30, 2024, from $39.5 million at the end of 2023[11] - Net cash used in operating activities for the nine months ended September 30, 2024, was $(1,377,479), an improvement from $(2,737,849) in the same period last year[25] - Cash and restricted cash at the end of the period was $359,375, compared to $337,827 at the end of the same period last year, showing a slight increase of approximately 6.5%[25] Strategic Initiatives - Synergy expanded partnerships with BJ's Wholesale Clubs and Publix, increasing distribution to 267 and 1,200 locations respectively[6] - The company aims to expand its brand distribution footprint and enter new geographical markets in 2025[3] - FOCUSfactor underwent its first re-branding since 2015, impacting sales due to retailer de-inventorying[7] Related Party Transactions - Advances from related party for the nine months ended September 30, 2024, amounted to $3,395,587, significantly higher than $1,000,000 in the previous year[25]

Financial Performance - For the three months ended March 31, 2020, the company reported revenue of $6,117,286, a decrease of 33% from $9,468,955 in the same period in 2019[150] - Gross profit for the same period was $4,619,507, representing a gross margin of 76%, compared to a gross profit of $6,928,505 and a margin of 73% in 2019[152] - Adjusted EBITDA for the three months ended March 31, 2020, was $847,193, reflecting the company's focus on evaluating operating performance[148] - The company experienced a net income of $262,303 for the three months ended March 31, 2020, down from $1,467,287 in the same period in 2019[157] - The company reported a decrease in operating expenses, with selling and marketing expenses at $2,253,956 compared to $3,311,867 in 2019[153] - The company had net cash used in operating activities of $(1,302,062) for the three months ended March 31, 2020, compared to net cash provided of $813,711 in 2019[163] Financial Position - The company's working capital deficit was $4,444,249 as of March 31, 2020, which includes loans payable to related parties of $5,486,377[166] - The company had cash on hand of $314,933 and restricted cash of $100,000 as of March 31, 2020[159] Future Plans and Strategies - The company plans to raise additional capital through a line of credit and/or loans for future mergers and acquisitions, which may be impacted by COVID-19[166] - The company intends to expand its online presence and develop new marketing campaigns for organic growth within its current product lines[171] Impact of COVID-19 - The COVID-19 pandemic has significantly impacted global economic activity, potentially disrupting the Company's operations and financial condition[172] - The Company may implement temporary precautionary measures, such as remote work for employees, which could negatively affect business operations[172] Other Considerations - The effect of inflation on the Company's operating results was not significant[176] - The preparation of financial statements requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, revenue, and expenses[177] - The Company is classified as a "smaller reporting company" and is not required to provide certain market risk disclosures[179]

Revenue Composition - FOCUSfactor represents 64% of the company's revenue, while the Flat Tummy brand accounts for 32%[15][16]. - The company relies heavily on Costco and Walmart, which together comprise 78% of net revenue from retail sales[23]. Sales Strategy - The company plans to diversify its sales network and expand online sales channels to enhance market penetration[19][27]. Research and Development - The company outsources research and development to manufacturers experienced in product development[20]. - FOCUSfactor is the only product in its category with both a patent and clinical study supporting its claims[29]. - The company has a patent (U.S. Patent 8,329,227) for FOCUSfactor's formulation, which enhances mental function[25]. Workforce and Growth - The company had 36 full-time employees as of April 2020 and plans to grow its workforce in response to business demands[34]. - The company intends to continue developing product extensions and expanding into new markets[14]. Risk Factors - The COVID-19 pandemic poses risks that could disrupt business operations and impact financial conditions[35]. - The company is focused on compliance with applicable laws and regulations, which may impact future operations[30][33].