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Synergy CHC Corp.(SNYR) - 2020 Q1 - Quarterly Report
SNYRSynergy CHC Corp.(SNYR)2020-06-29 18:18

Financial Performance - For the three months ended March 31, 2020, the company reported revenue of 6,117,286,adecreaseof336,117,286, 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,representingagrossmarginof764,619,507, 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,reflectingthecompanysfocusonevaluatingoperatingperformance[148]Thecompanyexperiencedanetincomeof847,193, 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 1,467,287inthesameperiodin2019[157]Thecompanyreportedadecreaseinoperatingexpenses,withsellingandmarketingexpensesat1,467,287 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 3,311,867in2019[153]Thecompanyhadnetcashusedinoperatingactivitiesof3,311,867 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 813,711in2019[163]FinancialPositionThecompanysworkingcapitaldeficitwas813,711 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]Thecompanyhadcashonhandof5,486,377[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]