Muscle Pharm Corporation (MSLPQ)

[Madcowelixir]

December's numbers have been released....https://cases.stretto.com/public/x219/12044/PLEADINGS/1204402252380000000009.pdf

[turokman]

When you buying back in you turd ?

[SLC-JD]

Lots of action here. While I've long ago written off the few shares I didn't liquidate before the BK, it's still amusing to watch the battle between WW (who thinks there's maybe still some there there) and Empery (who clearly just wants to fire sale the remainder of the company)

https://cases.stretto.com/musclepharm/court-docket/#search

[turokman]

You still around JLTG ?

[turokman]

You still around JLTG ?

[Madcowelixir]

Ryan the deadbeat and Trust Fund Baby claims coming in:

The shipping logistics company and the packaging company.

[Madcowelixir]

Poof......

[Madcowelixir]

How long before Costco pulls the plug on MusclePharm?

Clearly vendors will likely slow roll delivery on any purchase orders after the MusclePharm Chapter 11.

As far as pre-bankruptcy purchase order deliveries:

If you delivered goods to a debtor in the 20 days before the debtor filed bankruptcy, and those goods were delivered in the ordinary course of business, then you can get administrative claim status of the amount of the goods delivered. See 11 U.S.C. § 503(b)(9). If your claim for administrative expenses is allowed, you jump ahead of all the other unsecured creditors, and in a Chapter 11 case, generally you get paid in full. (Note that the administrative claim is only for the value of the goods, and does not include add ones like taxes, shipping fees, or claims for surcharges. You can still make a claim for those amounts, but they will be an unsecured claim, and not entitled to administrative claim status.) Usually, there is a deadline set early in the case for filing a 503(b)(9) claim, so keep an eye out for notices concerning any “claim bar dates.”

With the limited MusclePharm inventory levels on hand due to cash on hand crunch, it is difficult to see how Costco who accounts for >50% of all Musclepharm revenues will be able to maintain any inventory.

[Madcowelixir]

More drama filed today that may be the blueprint for an attempted reorganization plan between Ryan and White Winston/Amerop. Empery successfully gained immediate relief in the courts to arrest this plan as they have collateralized essentially all the MSLP assets and likely demanded the accelerated payment on the notes.

Section 5(b) under the Notes provides that if any event of default occurs, the outstanding principal amount of the Notes, plus accrued but unpaid interest, liquidated damages and other amounts owing in respect thereof through the date of acceleration, shall become, at the holder’s election, immediately due and payable in cash at the Mandatory Default Amount (as defined in the Notes) and further that commencing five (5) days after the occurrence of any event of default and that results in the right or automatic acceleration of the Notes, the Notes shall accrue interest at an interest rate equal to the lesser of eighteen percent (18%) per annum or the maximum rate permitted under applicable law. The October Notes were amended pursuant to a Waiver and Amendment, dated June 3, 2022 (the “Waiver and Amendment”).

https://www.sec.gov/Archives/edgar/data/1415684/000119312522310165/d419219dsc13da.htm

[Madcowelixir]

More questions than answers.

If "Big E" is CEO why did Ryan sign as CEO in Nevada Bankruptcy Court on December 15th?

Was "Big E" a negotiating piece pre-bankruptcy and is now gone that bankruptcy has been filed?

Honestly "who cares". It's over and there is no coming back. All MSLP retail investors should now change their occupation to "artist" on their social media.

[SLC-JD]

Well I guess that answers it:

Talk about too little, too late.

[Slojab]

LOL Hardly.

[turokman]

Does that mean the US of A government will bail them out and the stock will go up?

[Slojab]

Are you not familiar with OTC Market's website?

https://www.otcmarkets.com/stock/MSLPQ/security

Or how things end up when a company goes into bankruptcy?

[turokman]

Looking for some cheapies. Anyone know the share structure ?

[Madcowelixir]

Looks like this initial filing was to stay the auction and tie Empery up. The fact Ryan estimates there will be funds available for unsecured creditors reeks of bankruptcy fraud. We all know the liabilities dwarf the assets and all the reasonable assets were secured often by as many as 3 priority class.

Class 1: Empery
Class 2: Prestige
Class 3: Ryan

I believe the company has 120 days to provide a reorg plan but there really isn't much to reorganize. MSLP doesn't have any burdensome leases or contracts that can alleviate the debt. This was a Ponzi Scheme that sold vendors wares and revenues were collected by Ryan to pay his enormous salary and note interest and then the vendors were stiffed or payed pennies or unreasonable installment agreements that were not adhered. Who wants to manufacture MSLP products without a retainer that is at least Payment in Full of a potential purchase order before any manufacturing?

COGS were nearly equal to Revs anyway and we all know how Revs have declined under Ryan and losing any scaling potential and besides the only real rev stream is Costco and they are pressuring vendor price cuts.

[Madcowelixir]

I didn't get a chance to listen to the auction yesterday but registered. Did anyone? It looks like the bankruptcy was filed right at the time of auction so perhaps the auction was stayed. Here is the bankruptcy case number and initial list of creditors

[Renee]

MSLP changed to MSLPQ, bankruptcy:

https://otce.finra.org/otce/dailyList?viewType=Symbol%2FName%20Changes

[codie]

But, just looking at the chart, from a technical standpoint, I think we are going to get a bounce.

Back up the truck.

LOL

[Madcowelixir]

When Gaspari Nutrition went kaput several years ago, Rich bought his old company back. Maybe Brad and Cory would be interested in part deux ;)

[Madcowelixir]

When a fake Leonardo like Salvator Mundi sells for $450m, maybe Ryan is hoping for a Hail Mary at auction. ;)

Maybe that's why Ryan describes himself as "artist" at present.

[BlueChip$]

Very strange indeed. I guess he failed to let their social media people know that the company is going out of business and that he may be going to jail!..lol

[SLC-JD]

Their CEO has left the proverbial building

The proverbial building (that is, their production facilities) is likewise gone, and their manufacturing relationships are (as best I can tell) all shot to hell

Their assets, including any inventory, are being auctioned off

Yet somehow, someone keeps posting workouts and promotional bullshit like they're a going concern.


I don't get it.

[Madcowelixir]

Thought this post under my old moniker was a proper way to end it.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=117659857

[codie]

Time to buy on the pullback. It's still way overvalued but I think we can get a bounce and then maybe gain traction.

LOL

[Madcowelixir]

Musclepharmcorp.com is gone

https://www.musclepharmcorp.com/

[User20221201]

Not Surprising

https://ibb.co/d5KfFxH

[Madcowelixir]

Ryan no longer lists himself as MusclePharm CEO on his Instagram. Now he lists himself as an "artist" ..... I think a better description would be "scam artist"

https://www.instagram.com/drexphotos/?hl=en

Equity wise you would need to sell 1m shares of MSLP at its current price to purchase a single $2 can of that hot selling MSLP Combat Energy drink that was promised to produce $30m in sales. At the most recent reported OS, the entire Market Cap would purchase a couple12 can cases. Turokman of course is still averaging down and in the black ;)

[PeonyVMW]

I've caught up on MadCow's posts, your own posts, GSB's posts from 2015-2016, etc. It's remarkable that the company has existed for this long.

The litigation, the bloated AP, the non-arm's length relationships at the Board level and the Spinal Tap CFOs - it's a compounding mess. Unfortunately the human cost rests in people's financial livelihoods being damaged. I don't refer to the speculative OTC stock purchaser, but the employees of suppliers trying to recoup losses who have been strung along.

But the ultimate default to Empery results in an acceleration of principal and interest, plus all IP that was pledged as collateral. Without the brand assets, what's left?

Depressing.

[SLC-JD]

Welcome to the gray sheets. "Expert market" time...unsolicited quotes only.



The funniest part is that they were announcing their plan to uplist to Nasdaq just a few months ago. This ain't how you do that, Drex.

MSLP on OTC Markets

[SLC-JD]

Welp, it's all over but the crying.

Not sure when the notice went up, but per OTC MSLP has "entered a 15 day grace period" before it gets moved to the gray sheets (and OTC stops providing quotes).

Hope everyone was able to dump their holdings...

[SLC-JD]

I was considering the publish date of the K in noting the 'over 6 month' timeframe (the OTC Markets rules specifically mention publish date for accurate financials), but you raise an interesting point: If the annual report cannot be relied upon, doesn't that mean by definition that some or all of the preceding quarterlies are not reliable as well? Yet they only note the annual and subsequent quarterlies in the 8k.

Drex's games with the books (and the Spinal Tap drummer cast of CFOs who have signed off on them, then balked & bailed when they've realized what they agreed to) are so baked into the equation at this point that, barring any new scam, they have become white noise at this point.

[Madcowelixir]

Look again.

The non reliance covers the entire 2021 10-K AND the 2022 Q1.

15 months of non reliance financials.

But as I have opined many times, the MSLP financials have been fraudulent since Ryan became CEO. He threw his former college roommate under the bus for fraudulent Q end stuffing previously.

Stiffed suppliers out of over $40m and actually reported almost half of that figure as profit when suppliers modified their outstanding invoices to collect anything. MSLP has been a fraud and Ponzi Scheme for a long time.

On August 22, 2022, the Board of Directors of the Company determined that the Company’s financial statements contained in its Annual Report on Form 10-K for the year ended December 31, 2021 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 should no longer be relied upon due to errors in such financial statements, and that a restatement of such financial statements is required.

[SLC-JD]

I'm surprised OTC Markets still has them at Pink Limited (Yield), given that the August non-reliance 8-k means it's been well over 6 months since they have posted current and accurate financials.

[Madcowelixir]

Yikes!! Empery Asset Mgmt. Only has $18m portfolio value and are on the hook for over $8m to MSLP who literally can't pay. Ask any of the suppliers.

https://www.sec.gov/ix?doc=/Archives/edgar/data/0001415684/000149315222026142/form8-k.htm

[Madcowelixir]

Only 2 verified sales on Amazon of the MSLP Energy drink in the past 45 days and NONE in the past 3 weeks. Stuff must be flying off the shelves somewhere else? That is about $40 in retail sales in the past 45 days.

[Madcowelixir]

Any news? It has been 90 days since the maturity date of the senior notes. Shouldn't take a CFO to reveal the status of the notes. They were only 180 day notes to begin with and yet 90 days after the extended maturity date, Ryan can't file an 8-K?

Senior Notes Payable



On October 13, 2021, the Company entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with certain institutional investors as purchasers (the “Investors”). Pursuant to the Securities Purchase Agreement, the Company sold, and the Investors purchased, $8.2 million (the “Purchase Price”) in principal amount of senior notes (the “Senior Notes”) and warrants (the “Warrants”).



The Senior Notes were issued with an original issue discount of 14%, bear no interest and mature after 6 months, on April 13, 2022. To secure its obligations thereunder and under the Securities Purchase Agreement, the Company has granted a security interest over substantially all of its assets to the collateral agent for the benefit of the Investors, pursuant to a pledge and security agreement.



The maturity date of the Senior Notes was extended to May 28, 2022, on April 12, 2022.

The maturity date of the Senior Notes also may be extended under other circumstances specified therein. Subsequent to the extension, interest accrued from April 13, 2022 at 18% per annum until the Senior Notes are paid in full.

The Company is undertaking various initiatives to improve gross margins to become cash flow positive prior to the maturity of the Senior Notes.

These initiatives include improving cost of goods sold on certain raw materials. There can be no assurance the Company will be able to successfully implement such initiatives on a timely basis or at all or that it otherwise will meet the conditions required to extend the Senior Notes.

If the Company is unable to extend the Senior Notes or elects not to do so, the Company will be required to repay the Senior Notes through equity issuances, additional borrowings, cash flows from operations and/or other sources of liquidity.

[Madcowelixir]

So we have Ryan admitting company has overstated revenue to the tune of $1m or more and that the past five 10-Qs and the 2021 10-K should be deeemed unreliable.

We have seen two CFOs walk out the door in past 30 days.

The Q2 is 9 days past due and counting.

Was Q1 2022 the final 10-Q we will see from this company?

One thing is for certain, more suppliers are getting screwed and the most likely news to come will be additional lawsuits against MSLP and Ryan.

[SLC-JD]

This just in: Spinal Tap has lost another drummer

On August 17, 2022, Eric Chin resigned as Chief Financial Officer, Chief Accounting Officer and Director of MusclePharm Corporation for personal reasons.

Seriously, how many CFOs is that now?

[Madcowelixir]

That was quick. Two CFOs in less than 30 days out the door.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.



On August 17, 2022, Eric Chin resigned as Chief Financial Officer, Chief Accounting Officer and Director of MusclePharm Corporation for personal reasons.

[Madcowelixir]

MSLP overstates $1m in revenue! What do you want to bet it is related to the energy drink?

https://www.sec.gov/ix?doc=/Archives/edgar/data/0001415684/000149315222023755/form8-k.htm

[Madcowelixir]

Even the notification of the 10-Q being late....was late by 2 days. Does Ryan even come in to the office any longer? Oh, that's right....there is no office.

[Madcowelixir]

Q2 Financials were due yesterday. The dog ate my homework.

[SLC-JD]

[BlueChip$]

I suspect that the previous rockstar execs. that were brought on are long gone also...no mention of either in quite some time.

[Madcowelixir]

Ryan has been desperately cashing out his last remaining "personal assets" the past year IMO. I personally believe the money his sister transferred to him (by my best guess around $20m) that he poured into the convertible to avoid it becoming part of her divorce settlement, is now lost. Her husband sued her and the Drexler family for fraud.

https://nypost.com/2016/09/14/trust-funder-wife-ripped-me-off-in-business-deal-agency-chief/

But Ryan just sold his remaining real estate property....the house in Bev Hills to former Pimco bond king Bill Gross' young daughter as they shared a driveway on the property. The sale was at a huge discount and went for $20m coincidently.

Doesn't take a rocket scientist to speculate his sister wanted her money back ASAP and Ryan couldn't find the funds to even pay his property taxes on his Malibu house that is torn down and is now "embezzling" $7k a month from the company and shareholders for a rental home. He "embezzled" over $50k for moving expenses too.

This is all my speculation and opinion of course but it is all makes perfect sense and Ryan is now likely broke as a joke and has squandered his entire trust fund that daddy Halbert gave him.

Wonder if Ryan has sold daddy's Silver Lambo yet?

Maybe Sabina instead of trolling me, actually did some research on the information I posted and found it credible and realized she is an idiot.

On July 6, 2022, Sabina Rizvi notified the Board of Directors (the “Board”) of MusclePharm Corporation (the “Company”) of her resignation as President and Chief Financial Officer of the Company, effective July 22, 2022.

I don't see where Sabina resigned from the BOD and Ryan has had his salary slashed to $200K per year for as long as the roughly $10m in notes is outstanding. Remember Ryan couldn't even pay the interest payment, much less any principal on the previous maturity date. It's possible the "mystery investor" has some relationship with Sabina and she is stepping away before the "foreclosure" proceedings.

Ryan listed the Bev Hills home in 2020 for $32m and sold it recently for $20m at a fire sale price. (desperately needed the cash to repay his sister?)

https://www.dirt.com/gallery/more-dirt/heirs-heiresses/jennifer-gross-house-beverly-hills-1203565794/

https://www.latimes.com/business/real-estate/story/2020-07-01/former-beverly-hills-home-of-developer-paul-trousdale-asks-32-million

[Madcowelixir]

I thought Ginger was getting awfully quiet, hence the new $400K a year bookkeeper I wrote made no sense a couple weeks ago.

[SLC-JD]

HAHAHAHAHAHAHAHAHAHAHA

https://ih.advfn.com/stock-market/USOTC/muscle-pharm-pk-MSLP/stock-news/88577754/current-report-filing-8-k

Took her long enough.

[Madcowelixir]

How fake is this? .

200K shares "reported" trading in one day the middle of the week at .25 cents in desperate pump and dump scheme.

Now Friday the "ask" drops to .18 cents and 100 shares trade all session. Where is that buyer from just a day or two earlier? Doesn't want a -30% discount on his portfolio?

Make any sense? It does in a pump and dump scam with press release touting a "maybe" NASDAQ uplisting.

This can be considered a Ponzi Scheme business (selling 3rd party wares and collecting money, not paying the supplier) and an attempted "pump and dump" fraud on the shares IMO.

[Madcowelixir]

This is so shady, but that's CEO Ryan like when he hires one of best friends (despite a mention in the 10-K that there is no relationship between any officers) to become an officer and chair of the compensation committee that grants Ryan a $1m a year raise while the stock is down -90% and Revenue is down -80%.

An all but bankrupt company that is stiffing nearly all its suppliers and borrowing money at up 200% interest gives away 22m share warrants for basically nothing which would dilute current OS by 66%.

Creates a "maybe" NASDAQ uplisting (IMO, fake as they don't even qualify) and put out a Press Release.

Fire off a bunch of fake round trip trades at the very close of trading session to garner attention from penny share retail mooches.

Weeks go by on this equity with literally ZERO share volume but now 200k shares are roundtripping consistently on the pink sheets where their is no retail order rules and MM can basically fill as they wish or just plain fake trades that never initiate nor clear.

https://www.sec.gov/tcr

https://www.sec.gov/oiea/Complaint.html