Synergy CHC Corp.(SNYR) - 2019 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2019, the company reported revenue of $7,364,546, a decrease of 20$9,190,377 in the same period of 2018[140]. - The gross profit for the three months ended September 30, 2019, was $4,874,102, representing a gross margin of 66$787,275, compared to $1,000,000 in the same period of 2018, indicating a decrease in operational performance[138]. - For the nine months ended September 30, 2019, the company reported revenue of$23,170,222, down 19% from $28,619,950 in the same period of 2018[149]. - The net income for the nine months ended September 30, 2019, was$1,893,613, a significant improvement compared to a net loss of $(493,296) for the same period in 2018[157]. Expenses and Costs - Selling and marketing expenses for the three months ended September 30, 2019, were$2,771,884, a decrease of 30% from $3,960,131 in the same period of 2018[143]. - The company's cost of revenue for the three months ended September 30, 2019, was$2,490,444, down from $2,945,389 in the same period of 2018, reflecting a decrease in product sales[141]. - The company experienced a decrease in depreciation and amortization expenses for the three months ended September 30, 2019, totaling$301,388, down from $455,579 in the same period of 2018[145]. Cash Flow and Working Capital - As of September 30, 2019, the company had cash on hand of$1,389,311 and a working capital deficit of $3,980,990, including a balloon payment on a loan of$4,500,000[158]. - Net cash provided by operating activities for the nine months ended September 30, 2019 was $2,529,885, an increase of 23.7$2,043,765 for the same period in 2018[160]. - The net income contributing to the cash flow was $1,893,613, with significant adjustments including a decrease in accounts receivable by$2,556,095 and a decrease in inventory by $437,155[161]. - Net cash used in investing activities was$0 for the nine months ended September 30, 2019, a decrease from $194,300 used in the same period in 2018[162]. - Net cash used in financing activities was$1,537,500, down 32.8% from $2,287,500 in the same period in 2018, primarily due to the payoff of a loan[163]. Strategic Plans - The company plans to grow both organically and through future acquisitions as part of its overall strategy[134]. - The company plans for organic growth by developing and launching new products and expanding its online presence[164]. - The company intends to grow further through additional acquisitions while also focusing on developing existing products[164]. Operational Updates - The technology center in Halifax, Nova Scotia is fully operational, providing marketing services to all brands[164]. - There were no significant contractual obligations or off-balance sheet arrangements reported[165][166]. - The effect of inflation on the company's operating results was not significant[167]. - Recent accounting pronouncements are detailed in the unaudited condensed consolidated financial statements[169].