Synergy CHC Corp. Segments Disclosure
Note 15 – Segments
Segment identification and selection is consistent with the management structure used by the Company’s who is the Chief Operating Decision Maker (CODM) to evaluate performance and make decisions regarding resource allocation, as well as the materiality of financial results consistent with that structure. Based on the Company’s management structure and method of internal reporting, the Company has one operating and reportable segment. The Company derives its revenue from the sale of nutraceuticals. The accounting policies of the segment are the same as those described in the summary of significant accounting policies. The chief operating decision maker assesses performance for the segment and decides how to allocate resources based on net income that also is reported on the income statement as consolidated net income. The measure of segment assets is reported on the balance sheet as total consolidated assets. Significant segment expenses include retailer promotions, freight and fulfillment, marketing and salaries. The Company’s CODM reviews financial information presented and decides how to allocate resources based on net income. The Company does not have any intra-entity sales or transfers. The Company’s CODM does not review operating results on a disaggregated basis; rather, the chief operating decision maker reviews operating results on an aggregated basis.
Revenue attributed to customers in the United States and foreign countries for the years ended December 31, 2025 and 2024 were as follows:
| December 31, 2025 | December 31, 2024 | |||||||
| United States | $ | 27,318,377 | $ | 30,831,188 | ||||
| Canada | 2,418,056 | 3,926,370 | ||||||
| Mexico | 623,660 | 3,638 | ||||||
| Other | 20,716 | 73,047 | ||||||
| $ | 30,380,809 | $ | 34,834,243 | |||||
The Company’s revenue by product group for the years ended December 31, 2025 and 2024 were as follows:
| December 31, 2025 | December 31, 2024 | |||||||
| Nutraceuticals | $ | 29,731,664 | $ | 33,392,094 | ||||
| Beverages | 631,332 | 1,425,239 | ||||||
| Consumer Goods | 17,987 | 16,910 | ||||||
| $ | 30,380,809 | $ | 34,834,243 | |||||
The Company’s revenue by major sales channel for the years ended December 31, 2025 and 2024 were as follows:
| December 31, 2025 | December 31, 2024 | |||||||
| Online | $ | 8,131,385 | $ | 8,360,297 | ||||
| Retail | 22,249,424 | 26,473,946 | ||||||
| $ | 30,380,809 | $ | 34,834,243 | |||||
The Company’s significant expenses for the years ended December 31, 2025 and 2024 were as follows:
| December 31, 2025 | December 31, 2024 | |||||||
| Retailer promotions | $ | 5,145,915 | $ | 6,337,344 | ||||
| Freight and fulfillment | 2,401,984 | 2,026,259 | ||||||
| Online marketing | 3,391,220 | 2,884,752 | ||||||
| Salaries and benefits, marketing | 1,350,751 | 1,342,419 | ||||||
| Royalties and commissions | 770,312 | 342,141 | ||||||
| Media credits | 859,920 | |||||||
| TV advertising | 103,480 | |||||||
| Other selling and marketing | 199,821 | 447,686 | ||||||
| Gain on payables | (389,169 | ) | ||||||
| IT expenses | 648,610 | 557,686 | ||||||
| Salaries and benefits, non-marketing | 3,316,213 | 2,239,736 | ||||||
| Professional fees | 1,623,331 | 372,305 | ||||||
| Other general and administrative expenses | 1,592,577 | 1,547,278 | ||||||
| Stock based compensation | 438,448 | |||||||
| Board of Directors compensation | 125,000 | |||||||
| Reserve for bad debts | 6,660,650 | |||||||
| Amortization | 133,334 | 133,334 | ||||||
| $ | 28,761,566 | $ | 17,841,771 | |||||
Long-lived assets (net) attributable to operations in the United States and foreign countries as of December 31, 2025 and 2024 were as follows:
| December 31, 2025 | December 31, 2024 | |||||||
| United States | $ | 150,000 | $ | 283,333 | ||||
| Foreign countries | ||||||||
| $ | 150,000 | $ | 283,333 | |||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 1, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.