Financial Performance - For the three months ended June 30, 2019, the company reported revenue of $6,336,721, a decrease of 35.5% from $9,728,712 in the same period in 2018[148]. - For the six months ended June 30, 2019, the company reported revenue of $15,805,676, down 18.5% from $19,429,573 in the same period in 2018[157]. - The company's net income for the three months ended June 30, 2019, was $318,462, a turnaround from a net loss of $783,393 in the same period in 2018[155]. - The net income for the company was $1,785,748, resulting in an adjusted total of $1,776,352 after accounting for various adjustments[169]. Profitability Metrics - The company's gross profit for the three months ended June 30, 2019, was $4,729,434, representing a gross profit margin of 75%, compared to 72% in the same period in 2018[150]. - Adjusted EBITDA for the three months ended June 30, 2019, was $1,185,681, reflecting a significant increase in operational performance[146]. Expenses Management - Selling and marketing expenses for the three months ended June 30, 2019, were $2,647,379, down 48.6% from $5,148,656 in the same period in 2018[151]. - The company's cost of revenue for the three months ended June 30, 2019, was $1,607,587, a decrease of 41.4% from $2,744,760 in the same period in 2018[149]. - The company experienced a decrease in general and administrative expenses to $1,072,705 for the three months ended June 30, 2019, from $1,475,289 in the same period in 2018, due to better management of operating costs[152]. Cash Flow - Net cash provided by operating activities for the six months ended June 30, 2019, was $1,776,352, compared to $712,546 for the same period in 2018, indicating improved cash flow[168]. - Net cash used in investing activities for the six months ended June 30, 2019, was $0, a decrease from $194,300 in the same period of 2018[170]. - Net cash used in financing activities for the six months ended June 30, 2019, was $1,025,000, down from $1,712,500 in the same period of 2018[171]. Company Operations - As of June 30, 2019, the company had cash on hand of $1,064,301 and a working capital deficit of $46,078[167]. - The company plans for organic growth by developing and launching new products and expanding its online presence[172]. - The technology center in Halifax, Nova Scotia, is fully operational, providing marketing services to all brands[172]. Accounting and Compliance - The company employs critical accounting estimates related to revenue recognition and accounts receivable allowances[177]. - Recent accounting pronouncements are detailed in the unaudited condensed consolidated financial statements[178]. - As a smaller reporting company, the company is not required to provide detailed market risk disclosures[179]. - There were no contractual obligations or off-balance sheet arrangements reported[174][175]. - The effect of inflation on the company's operating results was not significant[176].
Synergy CHC Corp.(SNYR) - 2019 Q2 - Quarterly Report