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Re: Madcowelixir post# 80849

Wednesday, 07/26/2023 10:18:33 AM

Wednesday, July 26, 2023 10:18:33 AM

Post# of 80867
Madcowelixir, you raise a good point regarding the uneven reporting of expenses as the DIP financing may highlight a situation where the regular GAAP of revenue recognition may not be consistently applied.

I also note that I was unaware of the South Korean e-commerce channel forming such a significant percentage of revenue - you have been following this company much longer than I have (including under the Goldberg Stein alias). Attached is a summary chart of MSLP's reported financials submitted to the court docket via monthly operating reports, showing topline, income excluding legal and their net income. I think it's fair when counsel for the corporation states that excluding the restructuring costs the company is profitable.


Perhaps you've noticed that Judge Cox struck down the order to enforced the Intercreditor and Subordination Agreement, and Drexler's counsel submitting multiple case law examples citing instances where dispute over a creditor's lien can often nullify the creditor's ability to use its lien as a credit bid. There are multiple Empery entities, but I'm sure you've seen enough 13-F filings to get a general sense of the AUM that Empery controls. If the credit bid is deemed null due to the litigation dispute, I'll tip my hat to Drexler's counsel, if this succeeds and the secondary request for more time is also provided the results of Hilco running an auction might not produce the expected result. My prior comments about this company being a black hole that sucks in everybody's money is yet to be disproved. Retail investors' holdings remain destroyed, either way, which I believe is the biggest tragedy in Musclepharm's history.

Lastly, for your entertainment, here is the list of questions that Drexler will be put to the challenge of answering under his own deposition. I'm sure questions 13 and 14, posted below, will result in some eye-rolling on your part:

INTERROGATORY NO. 13:
Describe the factual circumstance Concerning the turnover of principal accounting officers
of MusclePharm in the third quarter of 2017.
INTERROGATORY NO. 14:
Describe MusclePharm’s process for recognizing revenue on inventory which has been
temporarily stored off-site in trailers rather than being shipped to MusclePharm’s customers prior
to year-end.