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International Revenue in Q1 went from $3.8m in 2021 to just $700k in 2021.
Is there a pulse left?
Only lost -$6.3m in Q1. $13m in revenue so Ryan loses .50 cents for every $1 in revenue. No wonder the bold "going concern" warning. Only $500,000 in cash in coffer and another $8m of liabilities and debt was added just the past 90 days.
Q1 Financials due yesterday. Ho hum....must be one those logistic shortage supply chain issues that Biden can fix.
Bakery Barn, the manufacturer of the MSLP Combat Crunch bar, sues Ryan AGAIN for non payment. Same dog, same tricks. Remember the terrible customer feedback when Bakery Barn stopped producing the CC Bar and Ryan found a different supplier?
Remember when I posted the screenshots showing Ryan was delinquent on his personal property taxes?
Now look at this little line item that shows up in filing:
Wow......Financial metrics for 2021
Cost of Goods Sold 90%
leaving 10% for cash flow.
Sales and Admin 20%
Sales Cost 10%
Before any Financing costs (another ~18%), MSLP is losing .20 cents on every $1.00 of sales.
Sales are crashing at MSLP's largest retailer, Costco.
2020 Costco was ~$27m
2021 Costo was ~$18m
Costco sales down -$9m YOY -33%.
Wait until you see the huge Interest Cost explode even higher as the private placement in December begin accruing interest in Q1 and 2 of 2022.
When Sales have declined -40% YOY
it's just to difficult to file financials in the allotted 90 days. Shareholders are clearly way down the priority list.
Revenue?
COGS is 100% before any expenses. Commission structure on ED is outrageous and based on gross profit before any expenses. MSLP is paying 18% to 200% APR and is upside down over $30m just taking AR and subtracting APayable. The lawsuits never end and neither do the legal expenses and settlements. MSLP suppliers are owed millions in past due invoices and can cut off MSLP again at any time.
No game changers on the horizon by even the most optimistic imaginations.
but made the dumb decision to make the Arnold Series the cheapest and least quality product in the entire MSLP line.
It just goes to show how broke the coffers are. They just closed a "net" $6m LOC several weeks ago and not only is that money gone but another $3m is needed to fund the test market for the new Energy Drink in "select Costco's in Hawaii and SoCal". The question is do the two former Energy Drink execs get that astronomical gross commission on those potential sales?
I bet it hardly matter though, as the "special pricing" will likely be a dollar for dollar wash on COGS just like the protein powder at Costco. After the real business expenses, the losses just keep accumulating just like the lawsuits.
Sneak the bad news under the guise of darkness.
Q4 revenue has been informally reported as $9m
Now compare that to already anemic Q4 revenue for last year that was $15m.
That is a -40% decline in the last 12 months.
No wonder Amerop and White Winston are filing more lawsuits against Ryan when they offered the shareholders to purchase all the outstanding debt for $2.00 a share and Ryan converted it all for pennies AND is paying himself 18% interest on all the Costco invoices that are guaranteed to be paid. Literally no risk financing. Since Ryan couldn't even pay his personal home property tax on time, he is probably borrowing money from a family member or friend for a little less than 18% and arbitraging the margin.
Shareholders again are being screwed. Let's see what happens now that White Winston has filed suit in their hometown on the East Coast.
That is the most confused analysis I've ever read.
Firstly, MSLP "already" has an Amazon partnership (basically stocks Combat Crunch at Amazon distribution centers for drop shipment) so the recent PR is immaterial as Combat Crunch sales have declined to less than $4m annual through ALL SALES CHANNELS. These new liquid products will fail as well after the initial channel stuffing.
Secondly, Anheizer Busch went on a feeding frenzy of craft beer breweries. AB didn't acquire them because the small breweries HAD a significant distribution network but the exact opposite. To expand the small breweries distribution network and PROTECT current AB brands PRICING in a series of local markets. 95% of all beer on the grocery stores aisles are owned by just TWO companies and these companies acquire to simply protect price. This has nothing to do with MusclePharms product or markets or even business model.
As for the two former Rockstar employees, they were "let go" during the acquisition as they were non essential and brought nothing to the table.
With MSLP, they are on temporary independent contracts that I've shown will provide no value to shareholders as ANY and ALL sales they may be able to provide are subject to the onerous gross commission scale. Besides Ryan only pivoted to this in response to the complete fallout of capital raising and the fact his personal capital was depleted (see personal home property tax delinquent).
It's his Hail Mary and the amazing YOY decline in MSLP sales (now down over -70% since Ryan became CEO) is the exact OPPOSITE of what any acquirer would be looking for. Ryan's immense dilution and hence WW lawsuits have positioned those two parties to square off in bankruptcy court auction.
The Q3 Highlights
Total Revenue: $11.97m
Cost of Goods Sold: $11.94m
Before any operating expenses, MSLP is selling its product for the same price it pays from suppliers.
Considering Amazon channel is retail money, MSLP actually wholesales it's product to Costco and such at a LOSS before any actual expense except Cost of Goods from its suppliers (who are being stiffed for payment)
Total Revenue declined -25.5% most recent Q compared to Q3 last year.
Q3 2020 revs $16.1m
Q3 2021 revs $11.9m
Declines are accelerating.
Remember when CEO Brad posted $52m in rev in a SINGLE QUARTER? CEO Ryan is posting less than that number for the ENTIRE YEAR!! Easy math. CEO RYAN -75%.
Here are the headline metrics from Q2 to Q3
Balance sheet
Total Assets: Q2 $10.9m Q3 $11.3 So an increase of $400k but
Total Liabilities: Q2 $37.2m Q3 $41.1m
Liabilities exploded $4m the past 90 days despite Assets essentially flat.
MSLP suppliers were stiffed an additional $2m NET this Q over Q2. Mind you this $2m is in ADDITION to the stiffing suffered last Q by suppliers.
Additional net borrowings of nearly $2m from the shylocks at 25%-200% interest this Q as well.
MSLP lost -$4m the past 90 days on just $11.9m in Total Sales.
Metrics must be horrific
for MSLP to not file the required 10-Q for Q3.
I'm certain more suppliers were stiffed, more shylock debt taken on and the continuation of the fraud but Ryan can't figure out a way to massage it without not reporting until the Q4 "Senior Debt Offering" (haha) can obscure the facts that occurred in Q3. Simple Ponzi activity
Wow!! Just from the call as the 10q is not filed yet.
Cost of Goods Sold (COGS) before any expenses is 99.8% of Total Revenue. That is what happens when your suppliers cut you off for non-payment.
Another -$4m loss.
Total Revenues are down to $12m so MSLP is losing $.33 cents for every $1.00 in sales even AFTER slashing any bricks and mortar business location, distribution channel, massive payroll layoffs, selling every asset down to the paperclips.
HYPE the new product while not discussing they have given away 17.5% commissions each to TWO former Rockstar employees. That is 35% commission on the gross margin in addition to $20,000 a month salaries to each as well with no minimum sale requirements. I won't mention the 3m shares awarded to the two as that is just piling on.
Trust fund babies in business pretending in Hollywood.
Oh, I almost forgot....hiring TJ Dillashaw the Drug Cheat coming off a 2 year USADA suspension has been hired to the do the marketing for MSLP. That is even worse than MSLP hired Michael Vick the dog killer as in an endorsement deal right as that tragedy was occurring. What a train wreck.
Yeah......
Ryan had to decide where to the allocate few funds available due to stiffing all the suppliers (who have now cut him off). Either a haircut for himself or renewing the $20 Godaddy URL.
Since he will be looking for a new job soon, the haircut was probably the most pragmatic decision.
Conversion price is fixed (for 5 years) regardless of all the yada yada yada you are attempting to assess to this specific financing vehicle. Do the math and you get a ~400% APR on this 180 day deal. I didn't read all the terms nor did you as they have not been released. I don't need to as I know what these deals are and what they were designed to accomplish by the financier.
This entire Soprano's style street money deal shows you exactly desperate Ryan is as all his suppliers are cutting him off for non-payment. MSLP owes over $30m in overdue invoices and can't get inventory.
All the hard assets have been sold and all the Accounts Receivable have been sold via Crossroads and Prestige at their 25% shylock rate.
This "energy drink" thing is just a desperate "pivot" like a gambler who has lost everything at the table is borrowing street money for a "Hail Mary" even the though the vig is too exorbitant to ever recover.
When does Joe C sue for his unpaid 17.5% gross commission if any significant cans ever sell which they won't. Joe knows this and is why he was able to leverage Ryan's desperation into a $20k a month SALARY deal that has no minimum sales requirements on Joe's part.
MSLP's only viable sales channel is the Protein Powder tubs at Costco and that is why sales have fallen over -70% under his "grand plan" and lack of any funds/willing suppliers to take credit are prohibiting him from filling this channel.
Thanks for the correction on the term (I just gave it a cursory glance and now the APR is ~400% cost of the funds), but.....
the stock is FREE based on the strategy I posted previously. The warrants never need to be converted to profit on 14m shares of stock warrants using a short strategy and are protected against any short squeeze by triggering the conversion if that highly unlikely event occurs.
This financing arrangement is proof that a position has already taken place and there are a minimum of 14m shares to play with....all on the downside hence the recent -75% slide in equity price the preceeded this "Press Release".
Thanks for the correction on the term (I just gave it a cursory glance), but.....
the stock is FREE based on the strategy I posted previously. The warrants never need to be converted to profit on 14m shares of stock warrants using a short strategy and are protected against any short squeeze by triggering the conversion if that highly unlikely event occurs.
This financing arrangement is proof that a position has already taken place and there are a minimum of 14m shares to play with....all on the downside hence the recent -75% slide in equity price the preceeded this "Press Release".
and for the naive
The 14m warrants are the kiss of death in these instances, just like what proceeded GNC's bankruptcy.
GNC was still profitable but had expiring bonds that needed to either be rolled over by existing financiers or new bond issue before the expiration date on the old bonds. If I remember correctly the old bonds had an 8% interest rate (compared to MSLP's 29.9% interest rate).
The existing (convertible) bond holders refused to extend the maturity date and forced the company into bankruptcy despite $2B in revenue and bottom line profit.
Why did they do this? Defies logic, no?
Because bond holders near always protect their investment by shorting the stock in which they hold convertible bonds.
Do the math.
GNC was trading at $30 for instance when you become a convertible bond holder. Short it at $30 and any downward price is profit. If the stock skyrockets or experiences a short squeeze, you are completely protected by the conversion price, therefore you have the bonus equity supply to cover your short. BTW, that never happens. Nearly every instance of the equity goes to ZERO as these junk shylock financing arrangements are to allow the insiders and others to liquidate off the radar in dark pools or other arrangements.
Don't forget (as SLC recently posted), tomorrow is the day Ryan's convertible price is set on the ~$3m emergency injection required when MSLP ran out of cash when all the suppliers cut him off and sued him.
AND DON"T OVERLOOK the fact that in Ryan's latest 29.9% "financing" deal that is actually a ~200% cost, the financier required HALF of the 29.9% statutory interest payment UPFRONT even though it is only a 365 day term. Wow.
Can't get a credit card Ryan?
MSLP just "borrowed" $7m and has to pay a $1.15m placement "fee" for the borrowings AND 14% interest due in 365 days AND 17.3m free "shares". So essentially MSLP just borrowed 12 months worth of money for ~29% interest (intentionally structured as the statutory limit of the land) and additionally $13m worth of free stock to lender.
That is over 200% APR interest for just 365 days!!!!!!
Pure crazy. That is worse than any payday loan company would offer.
NutraBlend, who "was" MSLP's largest supplier officially cut Ryan off from any more purchases as he stiffed them again even after the pre trail settlement.
With the cost of funds to operate at over 200% interest before any "real" operating expenses or commissions, how does MSLP make a profit?
Now let's look at track record.
MSLP did $177m in annual rev under CEO Pyatt.
MSLP now does ~$50m world wide under CEO Ryan and domestic sales have fallen to $9m a Q or ~$36m annual run rate and still falling.
Every "great new deal" under Ryan has fallen through and failed.
Remember Combat Crunch and natural/organic line in every Krogers and Sprouts?
Thud.....
Remember the Natural/Organic Line period? That was supposed to be a $1B product by now.
Thud.....
There is nary a mention any more. I haven't heard a single peep anywhere of the MSLP organic plant based line that they hyped by hiring "rockstar" influencers and experts poached from successful corporations. Remember the Frito Lay exec?
Thud.....
Costco is basically the only sales channel that MSLP has and accounts for over 50% of sales and that is basically the big tub of protein powder which is the most saturated and margin sensitive product in the sector unless you are Optimum Nutrition who owns the entire supply chain including the whey.
Costco was Brad's baby that Ryan inherited and the only line Ryan hasn't run completely into the ground despite the huge sales declines at Costco too under Ryan.
Remember the entire GNC Wall Display that was going to drive the stock to $100 a share (these words are quotes from the same posters here that are now hyping the energy line)?
Thud......
Fitmiss?
Thud......
Energy Sport and Energy Sport Zero? They were going to be Gatorade killers remember?
Thud.....
And also.....
Joe C is not a salesman. He simply had connections with a few local independent beverage distributors.
This is no guarantee there will be any sales much less $30m on a product with no customers and targeting women in the supplement energy business.
I don't see too many women drinking Rock'star'. They are at 'Star'bucks tho!!!!
Joe made a few telephone calls and a local distributor in Denver agreed to carry a product when MSLP gets one but in no way guaranteed any sales.
This is the extent of the MSLP and Joe C joint venture that has guaranteed Joe a salary of over $500,000 (guaranteed $20,000 month salary already being paid) over the contract and 17.5% of the gross margin before any expenses other than cost of product from supplier.
All this for Joe to make a few phone calls to former associates of a handful of local specialized bev distributors.
Don't forget that Joe C was also awarded ~1m shares in a stock option grant too!
Sorry shareholders.
Who is going to manufacture the MSLP energy drink? Ryan can't even pay his current product suppliers and has re-stiffed his largest supplier even after the settlement pretrial.
MSLP is out of cash and sold every liquid asset they ever had on the books. They are now borrowing $1m every few weeks at 25% interest rate just to pay a few of the bills.
Ryan can't even afford to loan the company $1m as he is broke. He couldn't even pay his residential property tax on own house until well after the due date.
Now Ryan is forced to borrow $1m at 25% from the Shylocks.
Wouldn't a credit card even be a better deal for shareholders?
This is a joke.
Just assume there are any sales. Let's do some simple math.
$1m in sales and COGS is say .65 cents = $350,000 gross margin
Out of that $350k, Joe gets 17.5% or $61,250
That leaves $288K and the Shylocks get 25% interest on the whole $1m because Ryan has to pay Joe upfront and we still haven't calculated the business costs.
Interest expense is $250,000. That leaves.....
......$38K left on every $1m in sales. Now subtract Joe's $20k a month salary.
We are already in the red and haven't applied a single business expense yet.
We have calculated ZERO other expenses other than cost from manufacturer, Joe's cut off the top and the interest on the purchase order capital.
There is no scaling cost potential as the costs above are fixed to every dollar invested in the product.
But you forgot the kicker....
Ryan has already begun paying his Energy drink guy Joe C a salary of $20k a month right now AND Joe gets 17.5% off the gross margin before any expenses of every dollar of MSLP energy drink sold. Sounds like a great deal for Joe, but what about MSLP and its shareholders? Looks completely desperate as Joe doesn't have to sell a single can and makes over $500,000 in compensation for himself and then gets 17.5% of gross margin on every can sold.
Joe C knows the energy drink sector is completely saturated and he said the market he is targeting is for women.
Remember FitMiss?
That went over like a fart in church.
MSLP has been in the energy drink business since 2014. Has it overtaken Gatorade yet like many contributors here said would happen then?
How many Quarters of these declines before Revenues hit ZERO?
YOY Quarterly Revenue (sales) have fallen over -33%.
Quarterly Sales fell -$4.5m Year over Year ($13.5m crumbles to barely $9m in most recent Q)
With only $9m in Quarterly Sales generated in Q2 (and declines in freefall, you do the math. - another $4.5m and so on doesn't leave much from $9m.
The Sales decline percentage is exploding even using Ryan historical standards of -20% declines YOY since his appointment as CEO. Now sales are off -$33% and freefalling at nearly double the rate.
Now consider there is ZERO cash on hand and over $37m in Accounts Payable Due. Ryan is borrowing a million dollars every couple weeks on a 180 day term from prestige at an APR of ~25%. These new loans began in June and are occurring every few weeks and even disclosed continuing in August. Now several million has been borrowed that this 25% APR.
YES....you read that correctly. After you calculate the 15% interest and the accommodation fee of 1-2% and the stock grants to the shylock lender you get an APR of ~25% total cost of borrowing now additional millions of cash in $1m increments every few weeks from Prestige so the bank account is not overdrawn.
With Sales crashing and debt service exploding at now %25 APR recent cost of desperation funding, how much longer before the inevitable?
The White Winston case where the judge ordered Ryan to disclose in discovery certain MSLP financial documents and initially fined Ryan $1,500 for refusing, subsequently ordered a new deadline for disclosure and was not impressed by Ryan refusing to submit the financial documents again!
Is Ryan afraid of criminal liability? Fraud!!!
The judge this time ordered Ryan to pay White Winston's to date legal fees in just this one of the cases which amounts to ~$100,000 and that payment was required immediately.
Maybe Ryan can challenge his future cell mate in another rigged BJJ match like his past performance with Magny if things keep playing out they way they look like.
And don't look now...
Nutrablend who sued MSLP for Million$ of unpaid invoices and Ryan settled right before trial calling for 3 years of 6 figure a month payments and a minimum monthly purchase order has been stiffed again.
Personally I don't feel sorry for Nutrablend. Just look at what happened to Capstone when they were stiffed for over $10m!!!!!!
Nutrablend clearly never read the Scorpion and Turtle Folktale or if they did should have listened to Trump when he said if you owe the bank $3m they own you; if you owe the bank $3b you own them.
Q3 is off to a roaring success /s
How desperate is Ryan personally for money? Clearly Ryan is tapped out as a lucrative 15% annual interest ($75,000) and a 1% "accomodation fee" (another easy $10,000) and nearly 20,000 "free shares (another ~$40,000) is too rich for his blood for a 6 month loan. 180 days is too far out for Ryan remaining assets or lackthereof.
Ryan can't dig $1,000,000 out of his sofa to get back $1,125,000 in 180 days?
The tax assessor on Ryan's residence found out Ryan is not all that liquid any longer.
Direct quotes from the Q2 '21 10Q
Just like I said......
$8m in "shylock" borrowings this Q just to stay afloat and Assets declined by another -$3m. Prestige and Crossroads (the shylock lenders) now hold almost 100% of the value of the Asset side of the Accounting Balance Sheet!!!!!!!
There are now ZERO unattached Assets (hocked them all to the shylocks) left and over $30m of Accounts Payable still on the books!!!!!!!!!
No cash on hand. More fake accounting by not paying bills due before the Q2 cutoff in order to not show a negative balance. Stiffing more suppliers.
Want proof? Sales declined significantly and Accounts Payable went up significantly! Ponzi scheme 101
Revenue (Sales) continues to decline to new low despite Q1 and Q2 historically being the strongest Qs of the year.
Down another ~15% just this Q over last Q (not year over year but every 90 days declining!!!!!!)
The lawsuit against MSLP by White Winston is not going well for Ryan despite his fraudulent attempt to transfer 875K shares of treasury stock to a broker dealer for this fake window dressing trading unless he is using his own shares for this purpose to dupe unsophisticated fanboy investors.
At least Ryan was able to beg, borrow or steal enough capital to pay his severely delinquent property tax bill before they foreclosed on his personal residence. Ryan is continuing to use MSLP as his personal piggy bank at the expense of shareholders and suppliers.
Multimillion dollar annual salary and stock awards are surely earned by vitamin boy whose daddy's trust fund baby's only credit is "Pimp; A Story of My Life"
Not kidding....just look https://www.imdb.com/name/nm3573940/
SLC
You repeated exactly what I wrote earlier. There was no reason for the IRS to dismiss the charges against the company in order to maintain potential leverage the IRS could use to compel MSLP corporate to cooperate against the actual targets but since the targets are all in settlement negotiations including asset forfeiture, the IRS allowed the SOL to run out. It is akin to locking up a compelling witness until the actual targets or defendants are convicted.
But back to the real corporate fraud. MSLP has still not paid Millions$ of past due AP or legal judgements including nearly all of its suppliers, $1.7m+ to Thermolife, $1m+ to Manchester City FC, etc....and in the face of continuing revenue decline that will render satisfaction impossible. MSLP's own fraudulent financials show another YOY -20% decline in revs currently.
MSLP annual revs pre Drexler were $180m
MSLP current annual revs are ~$50m and have never declined LESS than -20% YOY since Drexler took over.
If you are not aware of what of just a fraction of the allegations were:
MSLP officers (mostly Brad Pyatt) secretly leased a private jet for personal use somewhere around $100k a month.
Brad and others jettisoned to 5 diamond resorts in Cabo San Lucas, Mexico and other locales booking suites costing $1,000s a night and playing golf with greens fees of $300 and $400 a round, countless spa treatments in addition to purchased things such as premium golf club sets, Louis Vuitton luggage sets, expensive jewelry, Cash ATM withdrawals for 10s of thousands of dollars at a time that the proceeds were never disclosed, etc....all for themselves personally yet paid with corporate funds in addition to the unreported and secret stock options.
There were private country club memberships that had 5 or 6 figure initiation fees in addition to the monthly dues.
That just scratched the surface of the personal piggy bank mentality that still exists at MSLP.
This is what initiated the IRS audit. The IRS is currently in active proceedings targeting Pyatt and et al and recent disclosures have stated all the targets are currently in settlement discussions thus MSLP release.
burp....
My view is simple....the former officers who received the undeclared benefits in the non compliance of the unreported stock options and perks are currently being prosecuted as individuals and that is why the IRS allowed the corporation to shed the liability under the statute of limitations. The penalty owed to the IRS did not expire, simply the target of the payer responsible has been defined and proceedings are currently underway.
Get a clue.
The only reason this stock bounced is due to the active hearing currently in front of the judge in the lawsuit brought by WW. WW offered $2 a share a couple years ago for the convertible debt that Ryan converted at a much lower price subsequent and that is not going over well in the case as shareholders would seem to have been screwed so Ryan transferred the ~750k corporate shares with a dealer and have been manipulating the share price as window dressing trying to deceptively show shareholder have not been hurt but this was temporary and any fools buying or even not selling into this fraud deserve what they get.
Also why another Accounting Firm ran away as penalties are stiff when they discover the fraud and continue to participate. The firms can only pretend they were dupes for so long before that excuse expires. Hence the revolving door continues.
Hilarious
Ryan is refusing to show the financials to the judge in the White Winston suit and has been fined $1,500 in Q1. What to hide? The bogus numbers and the revolving door of CFOs of which several have lost the CPA credentials for malfeasance.
Disaster strikes again.
Sales down another -25% and now at $13m per Q.
Decline is accelerating and MSLP total sales have now fallen BELOW $1m a week for the first time in 10 years.
Fun Fact: It now takes CEO Drexler 90 days to sell what CEO Brad sold in 21 days.
Cash on Hand down to $500K after burning $2m since last Q.
Just shylock Debt outstanding dwarfs total assets....not counting the lawsuit settlement payments and AR v AP deficit.
Outstanding Shares explodes to almost 45.5m after another 13m shares of dilution since last Q.
all non cash again. Another $1.7m non cash "profit" on losing two lawsuits in addition to a few other fake non cash balance sheet gyrations.
Real interesting number is borrowing from Prestige went up $5m in Q4 over Q3. MSLP borrowed another $5m to cover the real cash losses and cash on hand barely moved up and inventory is the same.
Why is MSLP borrowing an additional $5m in 90 days if it is so profitable? Almost $2m a month in additional borrowings at shylock interest rates and none of it hits cash on hand or inventory. These are real cash losses.
First of all you need a math refresher course. MSLP has posted $49m of revenue through Q3 2020.
Secondly, there is lots of volume at $.12 cents today.
MSLP CAN'T even post a profit with ZERO expense for brick and mortar, Research and Development and Marketing and Advertising.
MSLP's fake profit in Q3 was due to one time gains for selling all the physical assets when they closed the HQ and Distribution WH and playing Inventory Valuation games that are fake and taking a huge fake gain on losing a lawsuit for not paying a supplier millions owed.
I love how Ryan put his longtime Hollywood party buddy (Heller) on the board as chief of compensation committee after getting pushback from a long time independent board member on executive compensation and the hypers here think it is great news. Too funny.
Drexler and Heller
At this rate it is going take quite a while to sell off that ~790K shares of Treasury Stock that Ryan transferred to a broker who is commissioned to sucker mooches in as high as possible before the elevator down.