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Just look at these metrics which were as of Dec 31, 2019. Things are much worse now if you can believe it. Easy see why MSLP stock is worth less than nothing and why an acquisition chance is nil.
Only MSLP assets on the balance sheet:
Inventory $4.7m. HUGE PROBLEM. MSLP has borrowed $4m against the Inventory at 16% interest from Crossroads Financial who has first lien on the Inventory in bankruptcy. Essentially there is ZERO ASSET or LIQUIDATION VALUE to MSLP.
Accounts Receivable $4.8M MSLP has sold $4.4M of these AR to Prestige Financial. Again....there is ZERO ASSET or LIQUIDATION VALUE to MSLP.
HUGE PROBLEM?!!!!!!!!
MSLP owes $31m in past due Accounts Payable to the suppliers of the their products and are being sued for non-payment. Where is MSLP going to find $31m to pay the suppliers for products MSLP already sold and collected revenue and yet still has ZERO cash on hand?
MSLP has no cash.
The company is so upside down with revenue falling off a cliff. MSLP largest retailer has renegotiated wholesale price terms down dramatically and that is why COGS has exploded to 89% from 66% previously. Just the cost of goods form MSLP suppliers is .89 cents for every $1.00 in MSLP retail sales before any other expenses. That is crazy.
Ponzi Scheme is over Ryan.
With all due respect , if you’re so smart why are you here covering this company so closely calling fraud ?
Is it really worth the delicate genius to cover this penny stock worth with a 5 million market cap ?
Are you a philanthropist giving back bg trying to save us all from this company or do you have an ulterior motive ?
As long as Winston is here with his 3 million shares, hes going to keep pushing for receiver. 80m in 2019 revenues is worth more than what this company is trading for. You know it as well as I do. I don't see how you don't understand that this is a good thing.
On October 31, 2019, the court awarded MusclePharm $56,000 in fees and costs. The White Winston Plaintiffs have appealed that award.
The way I read it is, he has the option to convert at:
at a conversion price equal to the greater of
(i) the closing price per share of the Common Stock on the last business date immediately preceding the Maturity Date and
(ii) seventeen cents ($0.17), in each case rounded down to the nearest whole share. The Company may prepay the Refinanced Convertible Note by giving the Holder between 15 and 60 days’ notice depending upon the specific circumstances, subject to the Holder’s conversion right.
So this means if the PPS is 0.30 on the last business day, he will have to convert at 0.30. If the PPS is 0.15 he will have to convert at 0.17.
I am happy for you that you have been right so far with this one. But you did think they wouldn't do 50m in 2109 sales and they did 80m. It's ok, only off by 60%. I suppose math isn't your strong suit.
https://www.sec.gov/Archives/edgar/data/1415684/000165495420009569/mslp_8k.htm
turok...pay attention.....
It is the closing price 1 day prior to a conversion + .17 cents
Any proposed convertible is very insignificant compared to the $50M+ in debt currently on the books or in court.
The only debt that I know of that Ryan may hold is between $0-$3m exclusively for protein supply because MSLP has no cash to buy new ingredients much less pay off the past due invoices to suppliers that have sued again.
In addition the 3 biggest shareholders who hold 70% of the OS are all adversaries and suing each other. The likelihood of an acquisition is nil.
In addition the two shylocks hold first lien on the Accounts Receivable and the Inventory on Hand. The only assets left are the furniture, office supplies and basketball hoop. Cash on Hand is basically nothing. Less than 1 month of losses as of 8 months ago and the Revenues are declining at a rapid rate. Foreign sales dropped more than 30% YOY 2018 to 2019. Total Revs are declining more than 10% YOY according to the "new" financials.
Keep pumping. .30 cents of transactions today after all this "great" news according to you.
I believe he’s trying to package it up to sell it as well.
So with the terms of this refinance on the 8k that just came out , he would convert the note to equity at 0.17.
This would be good to clean up the books as it’s another 300k a year off expenses if he did convert .
IMO . Anything under 0.17 a buy.
8k out... drexler refinancing his debt with the company
Sounds like he plans on converting it to equity at 0.17 .
On the Maturity Date, the Holder may, upon written notice to the Company, convert the outstanding principal and accrued interest into shares of the Company’s common stock, $0.001 par value per share (the “Common Stock”), at a conversion price equal to the greater of (i) the closing price per share of the Common Stock on the last business date immediately preceding the Maturity Date and (ii) seventeen cents ($0.17), in each case rounded down to the nearest whole share. The Company may prepay the Refinanced Convertible Note by giving the Holder between 15 and 60 days’ notice depending upon the specific circumstances, subject to the Holder’s conversion right.
https://www.sec.gov/Archives/edgar/data/1415684/000165495420009569/mslp_8k.htm
So I continue to maintain that Drex either wants out, or he wants to take this private (although I suspect that his attention span is waning, making the former more likely than the latter). With either of those as background, I'm curious about both boosters' and hecklers' views on what the conversion of an open line of credit into a fixed convertible note with a November due date may mean...
A buy?
There is nothing about this stock that is a buy. You have been saying that and have been 100% wrong for years now.
And nobody shorts a zero volume 15 cent stock.
If you are so sure of this why don’t you short some more of the stock ?
As long as Wynnefield and Winston white are here , this stock is a buy.
80m in 2019 revenue and the market cap is 4.5m.
You don’t think these junkyard dogs see the value here ?
On a side note , what are with those strange share trades of 2-10 shares each and everyday . Is it a MM giving this thing a heart pulse ?
Wow....The financials are a disaster. Is that your 2 shares traded today turok?
Cost of Goods Sold alone now is 89% of Total Revenue. That has exploded!!!! That metric used to be in the 60s when Brad was CEO. That is before any SG&A expense. Just the cost of the protein bars for example. MSLP is supposed to be paying .90 cents to the maker of the bars that MSLP sells for $1. No wonder MSLP is not paying their suppliers again!
MSLP loses $1.5m cash a MONTH if you believe their rosy fake financials as I've said for years now. They admit to fraud in the 10-K. Think about that. MSLP loses $50,000 every day including Saturday and Sunday. These are real cash losses and not depreciation and other non-cash losses.
Now the biggest change is how the ASSET value has shrunk while the LIABILITY value has exploded.
MSLP only shows $1.5m cash and $4.7m in Inventory and 4.8m in Accounts Receivable. That's it folks. $11m in assets. And this was as of December 31, 2019 and things are way worse now as MSLP claims to be declining at -10% right now.
Accounts Payable alone is $31m and MSLP is being sued by their 2 biggest suppliers for non-payment of MILLION$$$$$.....AGAIN
Do the math. Everything liquid asset MSLP owns including Accounts Receivable is $11m and they owe their product suppliers $31m right now and owe the shylocks Million$ more.
MSLP is paying their shylock lenders 16% interest for hocking Inventory for cash to fund the power bill.
The other shylock has cut the available borrowings for selling Accounts Receivable from $12m to $3m as MSLP is drowning in Legal losses.
Look who else they owe!!!! How many more examples of this do we need to see again as MSLP has lost everyone of these lawsuits in the past.
80m in annual sales
MusclePharm brands are marketed across major global retail distribution channels – Specialty, International and Food, Drug, and Mass (“FDM”). Our largest customers, Costco Wholesale Corporation (“Costco”), Amazon.com, Inc. (“Amazon”), and iHerb, LLC (“iHerb”) accounted for approximately 33%, 13% and 17% of our 2019 net revenue, respectively. Costco, Amazon and iHerb accounted for approximately 29%, 13% and 13% of our 2018 net revenue, respectively.
New Officer....Secretary Added: Allen Sciarillo
Replacing Brian Casutto
Treasurer Added: Allen Sciarillo
Well we know that this stock is as liquid as a bag of rocks but today it looks possible
to buy.
I added 1000 shares today for $150.
You must not be buying much. Less than $4K traded so far.
2019 financials just released. They did 80 million in sales in 2019. I have to think 2020 is about to look great with the books cleaned up after Drexler converting all that debt to equity. The interest payments should drop dramatically in 2020. Still digesting it , but so far the revenue is a beat in my book. I'm impressed and buying today.
https://www.sec.gov/Archives/edgar/data/1415684/000165495420009485/mslp_10k.htm
Financials just released.
Looks like they just did 80 million in sales in 2019. Losses widened but I presume Free cash flow is looking better .
https://www.sec.gov/Archives/edgar/data/1415684/000165495420009485/mslp_10k.htm
Stock moves higher from here, IMO.
At some point?
Drex was appointed CEO in March 2016 and the stock was trading at $3.xx
MSLP has essentially gone straight down like a ski jump ramp since Drex came in the picture and is now "trading" (if there is no volume is it really trading?) at .15 cents
Accounting fraud has now made MSLP 10-Qs super secret that only Putin could get copies. Cash flow break even is pipe dream. Company is drowning in debt and has lost or settled as the losing party in over a dozen lawsuits.
ALL 3 insider parties are down over a verified -95%+ on their investment including Drexler who only converted after a lawsuit by Consac and WW in order to save his position as CEO.
This dog is dead and buried.
Even Amazon which is the probably the only significant sales channel besides Costco has only 8 customer reviews in the past 3 months. Very telling. I have doubts whether MusclePharm is doing over $50m in annual sales as the constant turnover would suggest in the COO office or numerous Accounting Companies refusing to certify financials
I sort of see your point . Trust fund Sexy Drexy is running a cash flow neutral (at worst ) company with Musclepharm.
He’s shown time&time again to continue to personally lend to keep the company a going concern.
I did check out their Instagram and website and it does seem revamped with a more direct-to-consumer approach. Perhaps that’s his plan to profitability?
At some point couldn’t one conclude that $MSLP is essentially a blank check company and pop on speculation value of whatever Drexler might be buying.
How much is a line of credit to access Drexler worth ?
$3m @ 12% from Drex for Whey
$12.5m @ 80% discount selling Accounts Receivable from a shylock lending facility always fully tapped back when MSLP filed 10-Qs
$6m @ 15% against inventory from another shylock lending facility
Annual $1m payments to Manchester City Footy due every July for breach damages in that MSLP disaster.
Thermolife just awarded $1.7m in final decision v MusclePharm in December 2019*
MSLP has lost several more lawsuits with damages awarded since the last 10-Q was filed
*https://www.prnewswire.com/news-releases/thermolife-awarded-nearly-1-7-million-dollars-in-lawsuit-against-musclepharm-300975881.html
Yeah so I looked it up. Drexler loaned the company 3m on Oct 4,2019. They also just got the PPP loan of 1m. So that’s 4m that’s been keeping them afloat .
At some point this thing may have low enough overhead but enough following / brand recognition that it could become profitable. I mean, that was the goal here all along , wasn’t it ?
——
On October 4, 2019, MusclePharm Corporation (the “Company”) entered into a secured revolving promissory note (the “Revolving Note”) with Ryan Drexler, the Chief Executive Officer, President and Chairman of the Board of Directors of the Company. Under the terms of the Revolving Note, the Company can borrow up to $3,000,000. The Revolving Note bears interest at the rate of 12% per annum.
The use of funds will be solely for the purchase of whey protein to be used in the manufacturing of MusclePharm products.
$MSLP
WHEY PROTEIN POWDER MARKET- INCREASING DEMAND WITH INDUSTRY PROFESSIONALS: GLANBIA, MUSCLEPHARM, IOVATE
This report first introduced the basics of the Whey Protein Powder market: definitions, classification, application and market overview; Specifications; Manufacture process; Cost structure, raw materials and so on. We then analyzed key global market conditions, including product prices, profits, capacity, production, supply, demand, and market growth and forecasts.
Top Companies in this report includes: Glanbia, MusclePharm, Iovate, Dymatize, Universal Nutrition, Labrada Bodybuilding Nutrition, Cytosport, Multipower UK, Abbott, General Nutrition Centers.
https://mykidshealth.co.uk/news/57737/whey-protein-powder-market-increasing-demand-with-industry-professionals-glanbia-musclepharm-iovate/
$MSLP
Turk - terms are present in his offer letter, which was disclosed in an 8k back in (I think) December. Unless termed for cause, he gets 1 month of salary for each month he worked up to 12 months, with a 6 month minimum. So actually, his 'chute is $175k
I'm guardedly optimistic about any loans to the company. But bear in mind, they are so far behind in their disclosure that it is entirely possible that if/when they catch up their financials, we may find something that wasn't previously 8k'd.
Now let’s get some filings and let this thing climb. $MSLP!
I didn’t see I didn’t see any details of his departure all I saw was that he left the company I didn’t see anything about a golden parachute that you have described personally I am pleasantly surprised with some of the revamping they have done it looks like they are going it direct to consumers approach by rebuilding their website. It really looks like they are focused on growth that’s profitable at this point and don’t really care about growing top line.
This approach combined with the brand recognition MusclePharm has Could be the right approach.
One big clue I think we all need to look at is that Drexler has not Had to loan the company more than $3 million since he converted all that debt to equity. In that filing they said the $3 million loan was for way protein purchase which makes me think that they are still focused on the Costco contract
Dude's walking out the door with $150k in severance for a position he held for seven months. I wouldn't exactly call that 'cost savings'
More cost cutting ... 8k out
On July 22, 2020, Troy Bolotnick, the Chief Operating Officer of MusclePharm Corporation (the “Company”), ceased to be an employee of the Company.
https://www.sec.gov/Archives/edgar/data/1415684/000165495420008074/mslp_8k.htm
At least they are finally done paying Casutto off. Sheesh! Last payment of $16k should have just processed. I wonder if the PPP loan will cover this.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Resignation of Officer and Director
The Agreement provides that the Company will pay Mr. Casutto an aggregate of $100,000, the equivalence of three months base salary, with payments of $16,666.66 made every two weeks, beginning on May 15, 2020 and ending on July 17, 2020. The Agreement includes standard provisions contained in agreements of this nature including, mutual non-disparagement and a general release of any and all claims.
$MSLP
Nice to hear from you , Goldbond . You must be very happy from your short from $14 . Nice work. But , even you , have to see value in this pink paper at these levels . Wynnefield just added 75,000 shares I hardly think anyone wants to throw good money after bad , so maybe he will be right this time. $mslp
turok
How about telling the most important aspect of the story.
Wynnefield is in their shares at a basis of over $5 a share (down -96% on their investment)
White Winston basis is ~$2 a share (down -91% on their investment)
Ryan basis is ~$1.50 a share. (down -85% on his investment)
Stock is trading at $.18 cents
All 3 are completely upside down. If you are inferring these insiders are smart money you are sadly mistaken and misleading.
Here is the latest share count:
2020-07-13 13D/A WYNNEFIELD PARTNERS SMALL CAP VALUE LP I 2,011,905
2019-11-08 13D/A White Winston Select Asset Fund Series Fund Mp-18, Llc 3,648,355
13D/A Drexler Ryan Charles19,653,779
Assuming 32m o/s this 6.8 million shares not held by institutional investors or the CEO
$MSLP
Not many shares left. 32 million o/s
Drexler owns 19.5M , Amerop/Winston white 3.5M and wynnefield 2M
Leaves 6 million shares not held by institutions or the CEO .. 1.5 million bucks worth .
Won’t take much pain pressure to get this pop
Of course he's putting pressure on - there's zero volume without current financials.
I don't believe the company is profitable now, or that it has a path to get there with its current leadership. Drex propped it up for years, and now there's the PPP $$. When that's gone, it either needs some sort of recapitalization, or a divestiture - I think Drex goes for the latter.
The two questions I have: 1)whether it'll be a break-even deal for Drex (not including salary and interest already paid) at $1.11, or if he'll hold out for more; and 2)whether it goes to someone like Wynnefield who tries to make a go of it as-is, or to another tangentially related company looking primarily for distribution channels.
Did you read the $MSLP filing ? Wynnefield is putting pressure on Drexler to release financials . You don’t think the stock pops once financials are released?
32 million shares @ .25 makes this an 8 million dollar market cap .
They likely did 100m in sales in 2018..
Are there any shares available ?
75k shares seems a little half assed if he’s trying to average down.
Nelson Obus was the buyer of the stock ! Wynnefield bought another 75k shares a few weeks ago:
The Wynnefield Reporting Persons have acquired shares of Common Stock during the last 60 days as follows:
Name Transaction Date Number of Shares Price Per Share
Wynnefield Partners I Purchase 6/23/2020 45,360 $0.19
Wynnefield Partners Purchase 6/23/2020 30,240 $0.19
https://www.sec.gov/Archives/edgar/data/1251565/000110465920083037/tm2024071-1_sc13da.htm
Looks like $MSLP Musclepharm is still building their relationship with selling on Amazon.
They’ve devoted a new site to it :
https://bestsellers.musclepharm.com/
The last time sales were disclosed, GNC was less than 5% of total sales. Costco and Amazon were nearly half of all sales.
Well shit.
Of course, we're assuming it's their biggest customer. Given the massive black hole in their disclosure, who knows?
(see how I'm both hopelessly pessimistic and tentatively optimistic in one oblique comment?)
Musclepharm's biggest customer, GNC, files for bankruptcy.
Jynxed it... haha just kidding. Go $MSLP!
I believe the payroll portion of PPP loan doesn’t count for employees earning north of 100k so it won’t even be considered for the 700k salary.
PPP mandates at least 80% of the funds have to go directly to employee paychecks (I guess that includes Ryan's $700K per year in salary) and 15% minimum must go to overhead expenses. 5% is flexible.
I laugh at the pump material being posted again. Quoting fake SEO sites that contributors here offer as expert facts is especially inane. ColeofDuty is not an expert in BCAA. These are sites that pay writers $20 or less to try and boost SEO rankings. Clearvoice is a legitimate company that does this but ColeofDuty (video game knockoff name) is not.
"Did they allow share buybacks with PPP money like the 2008 bailouts ? We know drexler got a million bucks .... just sayin’."
Based on past performance (you know, when they still made their financials public), they needed the PPP $$ to keep the lights on and employees paid.
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Post
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$MSLP
https://coleofduty.com/news/2020/06/23/bcaa-supplements-market-to-witness-astonishing-growth-with-key-players-vega-musclepharm-optimum-nutrition/
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