Muscle Pharm Corporation (MSLPQ)

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This is not the usual boilerplate. MSLP has just released very specific disclosures regarding their financial dire straights. Note the very specific debt figures and the factors listed are very specific to current conditions. This type of disclosure is much different than your typical "going concern" boilerplate. MSLP has very serious going concern issues and has been cut off by their contract manufacturer for non payment. Inventory issues are apparent across several platforms.

Our cash flows and capital resources may be insufficient to make required payments on our indebtedness and future indebtedness.
As of December 31, 2014, we had a line of credit with a balance of $8.0 million. Additionally in February 2015, the Company entered a commercial loan agreement for $4.0 million. Currently, there is no additional borrowings available with either debt instrument.
Our indebtedness could have important consequences to the Company. For example, it could:

make it difficult for us to satisfy our debt obligations;

make us more vulnerable to general adverse economic and industry conditions;

limit our ability to obtain additional financing for working capital, capital expenditures, acquisitions and other general corporate requirements;

expose us to interest rate fluctuations because the interest rate on the debt under the line of credit facility is variable (prime +2%);

require us to dedicate a portion of our cash flow from operations to payments on our debt, thereby reducing the availability of our cash flow for operations and other purposes;

limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; and

place us at a competitive disadvantage compared to competitors that may have proportionately less debt and greater financial resources.
In addition, our ability to make scheduled payments or refinance our obligations depends on our successful financial and operating performance, cash flows and capital resources, which in turn depend upon prevailing economic conditions and certain financial, business and other factors, many of which are beyond our control. These factors include, among others:

economic and demand factors affecting our industry;

pricing pressures;

increased operating costs;

competitive conditions; and

other operating difficulties.
If our cash flows and capital resources are insufficient to fund our debt service obligations, we may be forced to reduce or delay capital expenditures, sell material assets or operations, seek to obtain additional capital, or restructure our debt. There is no assurance we will be able to access capital on terms that would be acceptable. In the event that we are required to dispose of material assets or operations to meet our debt service and other obligations, the value realized on such assets or operations will depend on market conditions and the availability of buyers. Accordingly, any such sale may not, among other things, be for a sufficient dollar amount. Our obligations pursuant to the loan documents are secured by a security interest in all of our operating company's inventories, receivables and proceeds from those items. The foregoing encumbrances may limit our ability to dispose of material assets or operations. We also may not be able to restructure our indebtedness on favorable economic terms, if at all.
We may incur additional indebtedness in the future. Our incurrence of additional indebtedness would intensify the risks described above.