Replies to post #31983 on Muscle Pharm Corporation (MSLPQ)

[dakotaben]

As to your questions:

I have 2 questions:
Is this 10% Net Profit factual? (u sure it's NOT 10% gross) So says the financials
When was contract entered? Also in the financials
Where/how can I find contract? THIS... we are not privy to. And where many of the questions lay. We would all love to see this.

As to your examples, I am not really understanding what point you are making. My point is that it is in the best interest of ANY company to minimize expenses for whatever is being done. Part of that is to reduce the amount you would have to pay in taxes or any other payment.... including the 10% they pay to Musclepharm.

As to it being an LLC... probably what is more important to the discussion here is that it is not a public company. As far as Musclepharm proper or anybody else... other than the owners... the books are hidden. It is just this magic box where a contract has been created... any sort of creative ownership, accounting, etc can take place in this unseeable magic box... and money is supposed to pop out. Except the terms that have been disclosed make it pretty easy for money to dissapear in the magic box. The ONLY thing we know is what was printed in the financials and that is

On May 5, 2011, the Company granted an exclusive indefinite term license to a third party for $250,000. The licensee may market, manufacture, design and sell the Company’s existing apparel line. The licensee will pay the Company a 10% net royalty based on its net income at the end of each fiscal year. To date, no royalty revenue has been earned.

ALL IMO

[Hamham1]

The contract is net profits.

There is a lot of latitude in the LLC structure and a nearly endless supply of expenses that Drew can run through the business.

Also, as an LLC the financials are not required to be audited. One thing I would like to see in the contract is how does MSLP deal with this...or do they just take Drew's word?