Muscle Pharm Corporation (MSLPQ)

[Odessa99]

I don't think we'll see any derivative expense relating to the Arnold S product line deal. Derivative expense arises from convertible deriv instruments such as convertible debt or convertible preferred shares. It seemed the Arnold deal was a straight shares-for-services agreement. Additionally, I believe we will see only a relatively small portion of the share $ value being expensed in the 3rd qtr, because expenses are booked over the period for which the benefit is derived (in this case, at least the 3 years of the initial contract period). As always, simply my opinion.

Right now it looks like they are just diluting to pay themselves big bonuses and sign Arnold. Total O/S at the end of the year should be about 11 million. Q-3 is going to suck with the 10 million in derivative expenses in SGA from Arnold. That could effect up listing. :(

MSLP