Replies to post #74368 on Muscle Pharm Corporation (MSLPQ)

[Odessa99]

While no company sets out to lose money, the cumulative losses (such as the losses incurred by Muscle Pharm) do create an accounting asset known as a tax loss carry-forward. The main feature of such an asset is that it can serve to reduce the future income tax burden by about 30%. That is because future earnings can be offset by the losses which have already occurred, reducing the taxable earnings base.

I'm not sure what the total losses incurred have been, but they have been more than $70 million for just the past four years (CYs 2011-2014).

The presence of a large tax loss carry-forward alone is sometimes enough motivation for another entity to target the tax loss carry-forward holder as a takeover candidate.

MSLP to date I believe has lost around 100m

As always, simply my opinion.

MSLP