Muscle Pharm Corporation (MSLPQ)

[jeff_green]

easy Jimmy Jams. MSLP stopped paying Accounts Payable and used the incoming cash flow to continue to operate temporarily while selling off $20m of inventory they had in the warehouse but had not paid for.

The problem is one of their two suppliers cut them off and they are going to pay the price in the coming weeks.

You can only channel stuff and not pay for so long. Ask Bernie Madoff.

No new borrowings (due to mutltiple broken covenants on LOC and pledging all company's assets as collateral) and growing AP due to no pay using cash flow for operations is a sign of desperation.

MSLP has serious going concern issues. You will see the official announcement soon. Too late for common shareholders though.