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Re: JimmyJams post# 73941

Thursday, 03/26/2015 2:57:52 PM

Thursday, March 26, 2015 2:57:52 PM

Post# of 80868
small companies are flexible to turn around as they don't have too rigid structures...I wouldn't worry too much that Musclepharm doesn't have what it takes to turn this around.

Losing $10 million in sales cost the company close to $5 million. So, if the company gets $10 million in higher sales this quarter, then it will have a loss of around $3 million....as it most likely cut costs by $2 million through reduced product development costs, reduced manufacturing costs, reduced labor costs and no year-end bonuses to pay.

The $2.5 million investment with Capstone Nutrition will probably fall later in the year, I have the feeling that Capstone is happy with that.


So, the loss may be equal to the cost of endorsements and sponsorships for the quarter...around $3 million.