Synergy CHC Corp. Stock Compensation Disclosure
Note 14 – Stock Options and Warrants
The following table summarizes the changes in options outstanding and the related prices for the shares of the Company’s common stock issued to employees and consultants under a stock option plan at December 31, 2025:
| Options Outstanding | Options Exercisable | |||||||||||||||||
| Exercise Price ($) | Number Outstanding | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price ($) | Number Exercisable | Weighted Average Exercise Price ($) | |||||||||||||
| $ | 2.38 | 1,200,000 | 4.71 | $ | 2.38 | $ | ||||||||||||
The stock option activity for the year ended December 31, 2025 and 2024 is as follows:
| Options Outstanding | Weighted Average Exercise Price | |||||||
| Outstanding at December 31, 2023 | 252,102 | $ | 6.15 | |||||
| Granted | 84,034 | 10.71 | ||||||
| Exercised | ||||||||
| Expired or canceled | (84,034 | ) | (10.71 | ) | ||||
| Outstanding at December 31, 2024 | 252,102 | 6.15 | ||||||
| Granted | 1,200,000 | 2.38 | ||||||
| Exercised | ||||||||
| Expired or canceled | (252,102 | ) | (6.15 | ) | ||||
| Outstanding at December 31, 2025 | 1,200,000 | $ | 2.38 | |||||
| Exercisable at December 31, 2025 | $ | |||||||
Stock-based compensation expense related to options was $136,248 and $0 during the years ended December 31, 2025 and 2024, respectively, and is recognized using the straight-line method. Stock options outstanding as of December 31, 2025 and 2024, as disclosed in the above table, have an intrinsic value of $0 and $119,748, respectively. As of December 31, 2025, unamortized stock-based compensation costs related to options was $1,259,437 and will be recognized over a period of 2.75 years.
The following table summarizes the changes in warrants at December 31, 2025:
| Warrants Outstanding | Warrants Exercisable | |||||||||||||||||||||
| Exercise Price ($) | Number Outstanding | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price ($) | Number Exercisable | Weighted Average Exercise Price ($) | |||||||||||||||||
| $ | 2.75-11.70 | 156,000 | 3.35 | $ | 8.69 | 103,500 | $ | 11.70 | ||||||||||||||
The warrant activity for the year ended December 31, 2025 is as follows:
| Warrants Outstanding | Weighted Average Exercise Price | |||||||
| Outstanding at December 31, 2023 | $ | |||||||
| Granted | 103,500 | 11.70 | ||||||
| Exercised | ||||||||
| Expired or canceled | ||||||||
| Outstanding at December 31, 2024 | 103,500 | 11.70 | ||||||
| Granted | 481,070 | 0.30 | ||||||
| Exercised | (428,570 | ) | (0.00001 | ) | ||||
| Expired or canceled | ||||||||
| Outstanding at December 31, 2025 | 156,000 | $ | 8.69 | |||||
| Exercisable at December 31, 2025 | 103,500 | $ | 11.70 | |||||
Stock warrants outstanding as of both December 31, 2025 and 2024, as disclosed in the above table, have an intrinsic value of $0.
During June 2025, the Company issued 428,570 warrants valued at $899,993 to settle a loan payable to a shareholder. The Company determined the value of the warrants using the Black-Scholes fair value option-pricing model with the following weighted average assumptions: estimated fair value of the Company’s common stock of $2.10, risk-free interest rate of 4.30%, volatility of 97%, expected term of 0.1 years and dividend yield of 0%.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 1, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.