EX-99.1 2 ea029076501ex99-1.htm PRESS RELEASE, DATED MAY 14, 2026

Exhibit 99.1

 

 

Synergy CHC Corp. Reports First Quarter 2026 Financial Results

 

N. WINDHAM, Maine, May 14, 2026 – Synergy CHC Corp. (NASDAQ: SNYR) (“Synergy” or the “Company”), a consumer health and wellness company, is announcing its financial results for the three months ended March 31, 2026.

 

“Our first quarter results reflect continued execution and the growing momentum of our functional beverage business,” said Jack Ross, CEO of Synergy CHC Corp. “During the quarter, we generated over $650,000 in functional beverage revenue, exceeding our total beverage revenue for all of 2025. This performance reflects the success of our expanding retail and distribution partnerships across the U.S., supported by healthy sell-through that is already driving increased reorder activity. Reflecting this momentum, our beverage division is operating at an estimated annual run rate exceeding $4 million. With this foundation in place and continued expansion of our distribution footprint underway, we believe we are well-positioned to capture the significant growth opportunities emerging within the functional beverage sector. With solid early-year momentum and a clear strategic path, we expect 2026 to be a year of sustainable growth and value creation for our shareholders.”

 

First Quarter 2026 Financial Summary vs. Same Year-Ago Period

 

Revenue of $5.49 million vs. $8.17 million.

 

Gross margin of 72.3% vs. 75.4%.

 

Income (loss) from operations of ($0.57) million vs. $1.95 million.

 

Net income (loss) of ($2.57) million vs. $0.88 million.

 

Earnings (loss) per share of ($0.23) vs. $0.10.

 

EBITDA (loss), a non-GAAP financial measure, was ($0.54) million vs. $1.98 million.

 

Adjusted EBITDA (loss), a non-GAAP financial measure, was ($0.35) million vs. $1.98 million.

 

First Quarter 2026 Financial Results

 

Revenue in the first quarter of 2026 was $5.49 million compared to $8.17 million in the first quarter of 2025, due to license revenue of $1.5 million in 2025 that did not repeat in 2026 and out-of-stock dynamics for several key online items in our Flat Tummy brand, which impacted online sales. This was partially offset by strong performance in beverages, which delivered significantly higher revenue compared to the prior year period.

 

Gross margin in the first quarter of 2026 was 72.3% compared to 75.4% in the first quarter of 2025. Excluding license revenue from the first quarter of 2025, normalized gross margin for that period was 70.0%, a 2.3% improvement year-over-year.

 

Operating expenses in the first quarter of 2026 were $4.54 million compared to $4.22 million in the first quarter of 2025, reflecting higher overhead associated with the expansion of the beverage business.

 

Income (loss) from operations for the first quarter of 2026 was ($0.57) million compared to $1.95 million in the first quarter of 2025, which is largely due to the license revenue of $1.5 million in 2025 that did not repeat in 2026 and increased overhead costs.

 

 

 

Net income (loss) in the first quarter of 2026 was ($2.57) million compared to net income of $0.88 million in the first quarter of 2025.

 

Earnings (loss) per share in the first quarter of 2026 was ($0.23) compared to $0.10 in the first quarter of 2025.

 

EBITDA (loss) (a non-GAAP financial measure) in the first quarter of 2026 was ($0.54) million compared to $1.98 million in the first quarter of 2025.

 

Adjusted EBITDA (loss) (a non-GAAP financial measure) in the first quarter of 2026 was ($0.35) million compared to $1.98 million in the first quarter of 2025.

 

Balance Sheet and Cash Flow

 

As of March 31, 2026, Synergy had approximately $0.30 million in cash and cash equivalents, compared to $2.6 million in cash and cash equivalents as of December 31, 2025. Subsequent to quarter-end, Synergy raised approximately $2.7 million in gross proceeds through its at-the-market (ATM) equity offering program.

 

As of March 31, 2026, Synergy had a working capital deficit of $0.50 million, compared to a $1.78 million working capital surplus as of December 31, 2025.

 

As of March 31, 2026, Synergy had $3.4 million in inventory, compared to $3.7 million in inventory as of December 31, 2025.

 

Cash used in operating activities for the three months ended March 31, 2026 was $2.0 million compared to cash used in operating activities of $0.82 million for the three months ended March 31, 2025.

 

Non-GAAP Financial Measure Reconciliation: EBITDA and Adjusted EBITDA

 

To assist financial statement users in an assessment of our historical performance, the Company discloses non-GAAP financial measures in press releases and on investor conference calls and related events, as the Company believes that the non-GAAP information enhances investors’ overall understanding of our financial performance, and should be read in addition to, rather than instead of, the financial statements prepared in accordance with GAAP.

 

Management believes EBITDA and Adjusted EBITDA provide useful information to investors by excluding certain items that may not be indicative of the Company’s core operating results and that can vary significantly between periods. EBITDA is defined as net income plus interest expense, income tax expense, depreciation and amortization. Adjusted EBITDA is calculated as EBITDA plus or minus foreign exchange gains or losses, one-time expenses and non-cash expenses. Since Adjusted EBITDA is a non-GAAP financial performance measure, the Company’s calculation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP.

 

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The following table reconciles net income to EBITDA and Adjusted EBITDA (in millions of US dollars):

 

   3 Months ended March 31 
   2026   2025 
         
Net (loss) income for the period  $(2.57)  $0.88 
Adjusted for:          
Interest expense, net   2.01    1.08 
Amortization of intangible assets   0.03    0.03 
Tax benefit   (0.01)   (0.01)
EBITDA  $(0.54)  $1.98 
Foreign currency adjustment   (0.00)   0.00 
Stock based compensation   0.16    - 
Board expenses   0.03    - 
Adjusted EBITDA  $(0.35)  $1.98 

 

About Synergy CHC Corp.

 

Synergy CHC Corp. develops and markets consumer health and wellness products, led by its flagship brands FOCUSfactor® and Flat Tummy®. FOCUSfactor®, a clinically studied brain health supplement and functional beverage line with a 25-year legacy, enjoys established distribution in the U.S., Canada and Mexico, through major retailers including Costco, Walmart, Amazon, BJ’s, and Walgreens, among others. Flat Tummy® complements Synergy’s portfolio as a lifestyle brand focused on women’s wellness and weight management.

 

Forward Looking Statements

 

Certain statements contained in this press release constitute “forward-looking statements,” including statements regarding brand expansion and growth initiatives. These forward-looking statements represent Synergy’s expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, which are set forth in Synergy’s registration statement on Form S-1, as amended, many of which are outside of Synergy’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.

 

Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, Synergy does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Synergy to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Synergy’s filings with the SEC. The risk factors and other factors noted in Synergy’s filings could cause its actual results to differ materially from those contained in any forward-looking statement.

 

Investor Relations

 

Gateway Group

Cody Slach, Greg Robles

949.574.3860

[email protected]

 

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Synergy CHC Corp.

Condensed Consolidated Balance Sheets

 

   March 31,
2026
   December 31,
2025
 
   (unaudited)     
Assets        
Current Assets        
Cash and cash equivalents  $292,115   $2,622,313 
Restricted cash   100,000    100,000 
Accounts receivable, net   1,268,022    3,203,505 
Prepaid expenses (including related party amount of $652,270 and $110,803, respectively)   1,303,173    351,049 
Inventory, net   3,381,614    3,737,509 
Total Current Assets   6,344,924    10,014,376 
           
Intangible assets, net   116,667    150,000 
           
Total Assets  $6,461,591   $10,164,376 
           
Liabilities and Stockholders’ Deficit          
Current Liabilities:          
Accounts payable and accrued liabilities (including payable to shareholder of $193,641 and $197,512, respectively)  $4,031,994   $6,388,219 
Income taxes payable   85,811    88,108 
Contract liabilities   -    1,526 
Short term loans payable, net of debt discount, related party   -    100,000 
Current portion of notes payable, net of debt discount   2,730,981    1,658,215 
Total Current Liabilities   6,848,786    8,236,068 
           
Long-term Liabilities:          
Notes payable, net of debt discount   25,018,055    25,056,446 
Total long-term liabilities   25,018,055    25,056,446 
Total Liabilities   31,866,841    33,292,514 
           
Commitments and contingencies          
           
Stockholders’ Deficit:          
Common stock, $0.00001 par value; 300,000,000 shares authorized; 11,483,926 shares issued; 11,303,853 outstanding   114    114 
Additional paid in capital   33,710,857    33,594,550 
Common stock to be issued   153,400    - 
Accumulated other comprehensive loss   (132,201)   (154,281)
Accumulated deficit   (59,009,920)   (56,441,021)
Less: Treasury stock (180,073 shares) at cost   (127,500)   (127,500)
Total stockholders’ deficit   (25,405,250)   (23,128,138)
Total Liabilities and Stockholders’ Deficit  $6,461,591   $10,164,376 

 

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Synergy CHC Corp.

Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income

 

   For the three months ended   For the three months ended 
   March 31,
2026
   March 31,
2025
 
Revenue        
Product Sales  $5,492,705   $6,670,534 
License Revenue   -    1,500,000 
Total Revenue   5,492,705    8,170,534 
           
Cost of Sales   1,521,910    2,006,513 
           
Gross Profit   3,970,795    6,164,021 
           
Operating expenses          
Selling and marketing   2,455,732    2,876,271 
General and administrative   2,048,850    1,306,714 
Depreciation and amortization   33,333    33,333 
Total operating expenses   4,537,915    4,216,318 
           
(Loss) Income from operations   (567,120)   1,947,703 
           
Other (income) expenses          
Interest income   (340)   (13,882)
Interest expense   2,012,121    1,095,369 
Remeasurement loss on translation of foreign subsidiary   3,718    1,412 
           
Total other expenses   2,015,499    1,082,899 
           
Net (loss) income before income taxes   (2,582,619)   864,804 
Income tax benefit   13,720    11,460 
           
Net (loss) income after tax  $(2,568,899)  $876,264 
           
Net (loss) income per share – basic  $(0.23)  $0.10 
Net (loss) income per share – diluted  $(0.23)  $0.10 
           
Weighted average common shares outstanding          
Basic   11,303,853    8,560,636 
Diluted   11,303,853    8,577,620 
Comprehensive (loss) income:          
Net (loss) income  $(2,568,899)  $876,264 
Foreign currency translation adjustment   22,080    (1,935)
Comprehensive (loss) income  $(2,546,819)  $874,329 

 

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Synergy CHC Corp.

Unaudited Condensed Consolidated Statements of Cash Flows 

 

   For the three months ended   For the three months ended 
   March 31,
2026
   March 31,
2025
 
Cash Flows from Operating Activities        
Net (loss) income  $(2,568,899)  $876,264 
Adjustments to reconcile net (loss) income to net cash used in operating activities:          
Amortization of debt discount and debt issuance cost   951,942    406,841 
Depreciation and amortization   33,333    33,333 
Stock based compensation   116,307    - 
Foreign currency transaction loss (gain)   2,684    (3,137)
Remeasurement loss (gain) on translation of foreign subsidiary   3,718    (1,412)
Changes in operating assets and liabilities:          
Accounts receivable   1,935,483    940,519 
Other receivables   -    144,637 
Loan receivable, related party   -    (833)
Inventory   355,895    (629,935)
Prepaid expenses   (410,657)   (114,787)
Prepaid expense, related party   (541,467)   (195,913)
Income taxes payable   (2,297)   (165,413)
Contract liabilities   (1,526)   (24,216)
Accounts payable and accrued liabilities   (1,915,323)   (2,218,041)
Accounts payable, related party   (3,871)   129,312 
Net cash used in operating activities   (2,044,678)   (822,781)
           
Cash Flows from Investing Activities   -    - 
           
Cash Flows from Financing Activities          
Advances from related party   -    135,000 
Repayment of notes payable, related party   (100,000)   - 
Proceeds from notes payable   2,660,000    1,496,250 
Payment of loan financing fees   (55,000)   - 
Repayment of notes payable   (2,812,600)   (1,316,572)
Net cash (used in) provided by financing activities   (307,600)   314,678 
           
Effect of exchange rate on cash, cash equivalents and restricted cash   22,080    (1,935)
Net decrease in cash, cash equivalents and restricted cash   (2,330,198)   (510,038)
           
Cash and restricted cash, beginning of year   2,722,313    787,920 
Cash and restricted cash, end of period  $392,115   $277,882 
           
Supplemental Disclosure of Cash Flow Information:          
Cash paid during the period for:          
Interest  $392,846   $573,529 
Income taxes  $-   $- 
           
Supplemental Disclosure of Noncash Investing and Financing Activities:          
Issuance of common stock for accounts receivable advance financing  $-   $117,648 
Loan financing fees, accrued  $110,000   $- 
Capitalized interest on senior debt  $400,033   $- 
Common stock to be issued for accounts receivable advance financing  $153,400   $- 

 

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