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 (nutrition and weight management for women).

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

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

• International expansion includes Canada, UK, with plans for Taiwan, Mexico, Australia, and Asia by 2026.

• Brand portfolio built through strategic acquisitions; focus on expanding SKUs and product lines.

Financial performance and metrics

• 2023 net revenue: $42.8M (up 11% from 2022); net income: $6.3M; EBITDA: $10.8M.

• 2022 net revenue: $38.4M; net loss: $32.6M; EBITDA: $(25.8)M, impacted by inventory write-off and one-time marketing costs.

• Six months ended June 30, 2024: net revenue $17.4M (down 7% YoY), net income $1.2M (down 50%), EBITDA $3.5M (down 18%).

• Working capital deficit: $2.2M at Dec 31, 2023; $3.8M at June 30, 2024.

• Top three customers accounted for 78% of 2023 net revenue.

Use of proceeds and capital allocation

• Proceeds from the IPO will be used for general corporate purposes, including working capital.

• No specific allocation plan; management has broad discretion over use of funds.

• Focus on accelerating growth of FOCUSfactor supplements and energy RTD products.