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

Revenue Performance - For the three months ended September 30, 2024, the company reported revenue of $7,126,333, a decrease of 34.5$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$7,777,712 or 72% of revenue in 2023, a decrease of $2,987,280 or 38$17,141,106, or 70% of revenue, compared to $21,207,795, or 72$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].