Business Context and Reporting Period
This Form 8-K Current Report is filed by Synergy CHC Corp. (SNYR) on August 11, 2026. The filing addresses a triggering event under Item 2.04 regarding a direct financial obligation under the Company's Term Loan Credit Agreement dated May 30, 2025.
Key Financial Metrics
- Outstanding Debt: Approximately $17.6 million principal amount remains outstanding under the Credit Agreement (exclusive of accrued interest, fees, and expenses).
- Forbearance Fee: A fee of $404,173.06 is asserted as due and payable following the termination of a forbearance period.
- Default Status: The Company is in an Event of Default due to a missed interest payment.
Material Changes and Events
On August 11, 2026, the Company received a Default Notice from ACP Agency, LLC (the administrative agent). The notice asserts an Event of Default occurred because the Company failed to make an interest payment due on August 3, 2026, after the cure period expired on August 6, 2026. Consequently, the Forbearance Agreement dated May 28, 2026, terminated on August 6, 2026.
Outlook, Risks, and Management Commentary
ACP has reserved all rights and remedies under the Credit Agreement. Potential consequences include:
- Acceleration of all outstanding obligations.
- Application of post-default interest rates.
- Exercise of other rights and remedies available under the loan documents.
The filing does not provide specific management commentary on remediation plans or future liquidity projections beyond the immediate default status.
Investor Verification Checklist
- Verify the current status of the $17.6 million principal debt and any accrued interest.
- Confirm whether the Company has cured the default or negotiated a new forbearance agreement since August 11, 2026.
- Assess the impact of potential debt acceleration on the Company's liquidity and solvency.
- Review the terms of the post-default interest rate to understand the increased cost of capital.