Muscle Pharm Corporation (MSLPQ)

[crossroad]

Disappointing Q2 results. I thought they would sell at least $20 million considering the Q1 backlog and addition of Eurpak as a distributor. I am really concerned about the gross margin for Q2, which is only 16%. They are giving away a lot to increase revenue, which actually peaked in Q1 -12. Does anybody know whether this is a seasonal effect? No wonder why they had to raise funds at one cent a share. Further, there will be more dilution: 8.4% to two consultants. Another thing that caught my attention is their allowance for doubtful accounts receivable: $1.6 million. Did one of their distributors go under? Overall, it is not looking as promising as before. That's why they have been so quiet.