Muscle Pharm Corporation (MSLPQ)

[CWS1987]

But if it's being held in true escrow, ANB wouldn't be able to sell the shares, so I wouldn't put too much faith in them having not dumped the position yet. That said, I don't think they would do that unless the company really skids in Q2 and cash flow gets so bad that they can't pay their producers.

I'll preference this by saying that I'm generally biased against non-GAAP measures. However, in the case of MSLP, I think that bias is very justified. The non-GAAP EBITDA figure is a particularly bad metric for analysis the stock's potential, because the company is actively diluting. In addition to the excessive, stock-based executive compensation, they paid for the Coco Protein production and clothing rights in part by issuing something like 300,000 new shares. For the company to then turn around and say, "But if we ignore that dilution, our losses are smaller than they look." is disingenuous and misleading.