Synergy CHC (SNYR) Registration Filing summary

Company overview and business model

• Operates in consumer health care, beauty, and lifestyle products, with two core brands: FOCUSfactor (brain health supplement) and Flat Tummy (women’s wellness and weight management).

• Products are distributed through major retailers (Costco, Amazon, Walmart, Walgreens, CVS, etc.) and direct-to-consumer channels.

• Asset-light model leveraging third-party manufacturers for scalable, efficient growth.

• International expansion underway, with presence in Canada and the UK, and plans for Taiwan, Mexico, Australia, and Asia by 2026.

• Growth strategy includes new product launches, expanded distribution, and targeted marketing, especially for FOCUSfactor RTD beverages.

Financial performance and metrics

• Net revenue for 2023 was $42.8 million, up 11% from 2022; Q1 2024 net revenue was $9.4 million, up 18.2% year-over-year.

• 2023 net income was $6.3 million, compared to a net loss of $32.6 million in 2022; Q1 2024 net income was $0.6 million, up 77% year-over-year.

• EBITDA for 2023 was $10.8 million, up from $(25.8) million in 2022; Q1 2024 EBITDA was $1.9 million, up 60% year-over-year.

• As of March 31, 2024, working capital deficit was $0.08 million; total assets were $12.1 million, and total liabilities were $38.7 million.

• Top three customers accounted for 78% of 2023 net revenue, indicating customer concentration risk.

Use of proceeds and capital allocation

• Net proceeds from the IPO will be used for general corporate purposes, including accelerating brand growth through advertising and new product development.

• Management has discretion over allocation of proceeds; funds may be invested in short-term, investment-grade instruments pending use.