Synergy CHC Corp.(SNYR) - 2024 Q3 - Quarterly Results

Financial Performance - Revenue for Q3 2024 was $7.1 million, down 34$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$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]