Annual report pursuant to Section 13 and 15(d)

SYNERGY JAPAN LOSS

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SYNERGY JAPAN LOSS
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
SYNERGY JAPAN LOSS SYNERGY JAPAN LOSS
On February 17, 2023, we became aware that Synergy Worldwide Japan G.K., a Japan entity and wholly owned subsidiary of the Company (“Synergy Japan”), was the victim of a criminal scheme involving employee impersonation and fraudulent requests targeting Synergy Japan. The criminal scheme resulted in a series of fraudulently induced wire transfers between February 1, 2023, and February 17, 2023 totaling $4.8 million. We promptly launched an investigation, led by an independent third party, to determine the full extent of the fraud scheme and related potential exposure. We self-discovered this fraudulent activity and promptly initiated contact with our bank as well as appropriate law enforcement authorities in an effort to, among other things, recover the transferred funds. To date, we have not found any evidence of additional fraudulent activity and do not believe the incident resulted in any unauthorized access to confidential consumer information or other data maintained by the Company.
As a result of this matter, we incurred investigation and other professional fees of $0.9 million net of recoveries, which along with the initial $4.8 million loss, were recorded in Selling, General and Administrative expense for the year ended December 31, 2023. This incident did not otherwise have a material impact on our business.