“Our first quarter results reflect continued execution and the growing momentum of our functional beverage business,” said
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
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
Income (loss) from operations for the first quarter of 2026 was
Net income (loss) in the first quarter of 2026 was
Earnings (loss) per share in the first quarter of 2026 was (
EBITDA (loss) (a non-GAAP financial measure) in the first quarter of 2026 was
Adjusted EBITDA (loss) (a non-GAAP financial measure) in the first quarter of 2026 was
Balance Sheet and Cash Flow
As of
As of
As of
Cash used in operating activities for the three months ended
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.
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
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
Investor Relations
949.574.3860
SNYR@gateway-grp.com
Condensed Consolidated Balance Sheets | ||||||||
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 | 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 | $ | 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, | 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: | (127,500 | ) | (127,500 | ) | ||||
| Total stockholders’ deficit | (25,405,250 | ) | (23,128,138 | ) | ||||
| Total Liabilities and Stockholders’ Deficit | $ | 6,461,591 | $ | 10,164,376 | ||||
Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income | ||||||||
| For the three months ended | For the three months ended | |||||||
2026 | 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 | |||
Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||
| For the three months ended | For the three months ended | |||||||
2026 | 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 | $ | - | ||||
