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Synergy CHC Corp. (SNYR+4.77%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing reports total revenue of $34,834,243 for 2024, down from $42,777,633 in 2023. This decrease is attributed to a rebranding and packaging upgrade for the FOCUSfactor brand, which led customers to sell through existing inventory before restocking.
Cost of sales for 2024 was $11,191,224, compared to $10,697,323 in 2023. The increase was primarily due to a settlement with a supplier in 2023 that reduced cost of sales for that year.
Gross profit for 2024 was $23,643,019, or 68% of revenue, compared to $32,080,310, or 75% of revenue, in 2023. The decrease in gross profit margin is largely due to the decrease in net sales.
Selling and marketing expenses decreased to $12,991,431 in 2024 from $15,188,528 in 2023, while general and administrative expenses decreased to $4,717,006 from $6,051,703.
Net income for 2024 was $2,124,976, down from $6,338,750 in 2023. The decrease in net income is primarily due to the decrease in revenue.
Synergy CHC Corp. reported cash and cash equivalents of $687,920 as of December 31, 2024, with restricted cash of $100,000. The company had a working capital deficit of $1,124,601.
During 2024, Synergy CHC Corp. raised $8.4 million through an initial public offering and restructured its debt agreements, extending terms into 2026.
The company is focused on growing its current product lines by developing and launching new products and expanding into new markets, particularly for its FOCUSfactor brand.
Synergy CHC Corp. has identified material weaknesses in its internal control over financial reporting, specifically in segregation of duties and defined roles within finance and accounting functions.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Synergy CHC Corp. annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.