Synergy CHC Corp.(US:SNYR)2025-11-13 13:06Financial Performance - For the three months ended September 30, 2025, the company reported revenue of $8,010,112, an increase from $7,126,333 for the same period in 2024, representing a growth of approximately 12.4%[164]. - Gross profit for the three months ended September 30, 2025, was $5,680,816, or 71% of revenue, compared to $4,790,432, or 67% of revenue in 2024, marking an increase of $890,384, or 19%[168]. - Net income for the three months ended September 30, 2025, was $125,327, a decrease from $783,593 in 2024, attributed to higher expenses and other income in 2024[173]. - For the nine months ended September 30, 2025, total revenue was $24,315,642, a decrease from $24,563,039 in 2024, with Nutraceuticals revenue declining due to a new product sell-in that did not repeat[175]. - EBITDA for the three months ended September 30, 2025, was $1,311,570, compared to $1,329,334 in 2024, reflecting a slight decrease[162]. - For the nine months ended September 30, 2025, net income was $2,474,827, an increase from $2,019,309 in 2024, primarily due to a gain on loan settlements[182]. Expenses and Cash Flow - Operating expenses for the three months ended September 30, 2025, included selling and marketing expenses of $2,729,767, up from $2,509,440 in 2024, indicating an immaterial increase[169]. - The cost of revenue for the three months ended September 30, 2025, was $2,329,296, slightly down from $2,335,901 in 2024, due to a favorable product mix[167]. - Interest expense for the three months ended September 30, 2025, was $1,164,402, an increase from $705,088 in 2024, primarily due to new loan advances[172]. - For the nine months ended September 30, 2025, net cash used in operating activities was $3,209,149, compared to $1,377,479 for the same period in 2024, indicating a significant increase in cash outflow[185][186]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $3,515,856, a substantial increase from $895,972 in 2024, primarily due to new loans[187]. - Proceeds from issuing common stock amounted to $3,880,462 for the nine months ended September 30, 2025, while there were no proceeds from common stock issuance in 2024[188]. Strategic Plans and Market Position - The company plans to grow its current product lines and expand into new markets, specifically focusing on increased distribution for the recently launched ready-to-drink beverage under the FOCUSfactor brand[189]. - The company intends to pursue additional strategic acquisitions to enhance its brand portfolio and is actively evaluating potential opportunities[189]. Other Financial Information - As of September 30, 2025, the company had cash on hand of $1,006,489 and restricted cash of $100,000 held for credit card collateral[183]. - There were no off-balance sheet arrangements during the nine months ended September 30, 2025, or the year ended December 31, 2024[190]. - The effect of inflation on operating results was not significant for the nine months ended September 30, 2025, or 2024[191]. - Critical accounting estimates include those related to revenue recognition and accounts receivable allowances, which are significant for understanding the company's financial results[192].