Replies to post #80435 on Muscle Pharm Corporation (MSLPQ)

[turokman]

Yeah so I looked it up. Drexler loaned the company 3m on Oct 4,2019. They also just got the PPP loan of 1m. So that’s 4m that’s been keeping them afloat .

At some point this thing may have low enough overhead but enough following / brand recognition that it could become profitable. I mean, that was the goal here all along , wasn’t it ?

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On October 4, 2019, MusclePharm Corporation (the “Company”) entered into a secured revolving promissory note (the “Revolving Note”) with Ryan Drexler, the Chief Executive Officer, President and Chairman of the Board of Directors of the Company. Under the terms of the Revolving Note, the Company can borrow up to $3,000,000. The Revolving Note bears interest at the rate of 12% per annum.

The use of funds will be solely for the purchase of whey protein to be used in the manufacturing of MusclePharm products.

$MSLP

[turokman]

Outlook

As we continue to execute our growth strategy and focus on our core products, we believe that we can, over time, continue to improve our operating margins and expense structure. In addition, we have implemented plans focused on cost containment, customer profitability, product and pricing controls that we believe will improve our gross margin and reduce our losses.

We expect that our advertising and promotion expense will continue to decrease as we focus on reducing our
expenses and shifting our promotional costs, in part, from general branding and product awareness to acquiring
customers and driving sales from existing customers. We expect that our discounts and allowances will continue to decrease, both overall and as a percentage of revenue, as we further reduce certain discretionary promotional activity that does not result in a commensurate increase in revenues. In addition, we expect our gross margin to increase in future periods due to a decrease in protein prices which began in the fourth quarter of 2019, although protein prices will continue to fluctuate.

https://www.sec.gov/Archives/edgar/data/1415684/000165495420009485/mslp_10k.htm