Muscle Pharm Corporation (MSLPQ)

[Madcowelixir]

MSLP acquisition

Why buy a falling knife?

2014 Revenue: $177m

2015 Revenue: $167m (Brad Pyatt's final year as CEO)

2016 Revenue: $132m (Ryan Drexler becomes MSLP CEO Q1 of 2016)

2017 Revenue: $102m

2018 Revenue: $88m

2019 Revenue: $79m

2020 Revenue: $65m projected ($49m thru Q3 2020)

Ryan's tenure as CEO has taken annual revenues from $167m under Pyatt to $64m under Drexler in 5 years. Down -$103m and -62%. Quite a performance considering the admitted fraud accounting that inflated Drexler's numbers.

No wonder there has been zero acquisition interest. By the time a transaction would initiate and close, the deal would we severely over-valued.

Balance sheet is upside down -$40m and future $million$ in legal and IRS liabilities are pending. Suppliers have cut off MSLP due to invoice non-payment.

50% of the total MSLP revenues are associated with Costco and those revenues are falling. Combat Crunch Bar sales have cratered. Down to $6m annually and falling.

MSLP can't afford "rent" any longer nor "marketing and advertising" and has completely run out of cash and salable assets. MSLP has now only $1m in inventory on hand to churn at a time as revenue is clearly continuing to contract. Ryan is personally in financial crisis as his personal home is delinquent on property taxes.


Ironically.....Brad Pyatt started a new protein bar company and within 3 years sold his 50% share for a net $6m which is worth more than MSLP.