Muscle Pharm Corporation (MSLPQ)

[SLC-JD]

My guess is that Drex is aggressively looking for a buyer, and will end up taking a massive loss if he succeeds.

While Madcow has been predicting imminent bankruptcy for years (including as some sort of scheme that Drex was supposedly engineering), the current financials and 'hidden' disclosures indicate that the company really is circling the drain. Positive revenues don't mean a thing when you're essentially ignoring (and subsequently writing off) COGS. Settlements likewise are meaningless if you never pay them. At present, given the A/R financing and multitude of settlements on the books, I'd guess that the Company would be operating a loss if it honored only those settlement agreements (to say nothing of its current/ongoing vendor obligations).

With Drex seemingly running low on cash as well, I'd wager that he's trying like hell to fire sale the whole shebang to a third party looking to capitalize on the only remaining value in the organization - the distribution relationships. This would be the most likely reason for him to actually move forward with publishing the past due Ks and Qs...well, that and the pending WW litigation.

Assuming that the asset hiding scheme alleged in Drex's sister's divorce is true, I wonder how she's feeling about his management of her portion of the family fortune.