Financial Performance - For the three months ended March 31, 2019, the company reported revenue of $9,468,955, a decrease of 2.4% from $9,700,861 in the same period of 2018[151]. - Gross profit for the same period was $6,928,505, representing a gross margin of 73%, up from 71% in 2018, indicating a slight improvement in product mix[154]. - Adjusted EBITDA for the three months ended March 31, 2019, was $2,273,420, reflecting the company's focus on core operating results[150]. - Net income for the three months ended March 31, 2019, was $1,467,287, a significant recovery from a net loss of $(55,493) in the same period of 2018[159]. Expenses Management - Selling and marketing expenses decreased to $3,311,867 in Q1 2019 from $4,252,703 in Q1 2018, primarily due to reduced personnel in advertising and marketing[155]. - General and administrative expenses were reduced to $1,487,107 in Q1 2019 from $1,760,856 in Q1 2018, attributed to better management of operating costs[156]. Strategic Focus - The company plans to focus on organic growth by developing and launching new products and expanding its online presence in 2019[166]. Cash Flow and Working Capital - As of March 31, 2019, the company had cash on hand of $688,836 and a working capital deficit of $155,476[161]. - Net cash provided by operating activities for Q1 2019 was $813,711, down from $944,647 in Q1 2018, mainly due to a decrease in accounts payable and accrued expenses[162]. - The company had no net cash used in investing activities for Q1 2019, compared to $136,725 in Q1 2018, indicating a shift in investment strategy[164].
Synergy CHC Corp.(SNYR) - 2019 Q1 - Quarterly Report