INVESTORS

Financials

v3.5.0.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2016
Dec. 31, 2015
Current assets:    
Cash $ 5,894 $ 7,081
Accounts receivable, net of allowance for doubtful accounts of $329 and $347 as of September 30, 2016 and December 31, 2015 15,872 22,003
Inventory 8,047 12,549
Prepaid giveaways 65 307
Prepaid stock compensation 0 1,641
Prepaid expenses and other current assets 3,021 3,698
Total current assets 32,899 47,279
Property and equipment, net 3,298 6,693
Investments, long-term   977
Intangible assets, net 1,718 8,652
Other assets 420 180
TOTAL ASSETS 38,335 63,781
Current liabilities:    
Accounts payable 36,093 39,652
Accrued liabilities 10,065 12,526
Accrued restructuring charges, current 1,728 9,140
Obligation under secured borrowing arrangement 0  
Convertible note with a related party, net of discount 5,988  
Line of credit   3,000
Term loan   2,949
Other debt obligations 11 21
Total current liabilities 53,885 67,288
Convertible note with a related party, net of discount   5,952
Accrued restructuring charges, long-term 787 279
Other long-term liabilities 103 330
Total liabilities 54,775 73,849
Commitments and contingencies (Note 10)  
Stockholders' deficit:    
Common stock, par value of $0.001 per share; 100,000,000 shares authorized as of September 30, 2016 and December 31, 2015; 14,803,315 and 14,664,161 shares issued as of September 30, 2016 and December 31, 2015, respectively; 13,927,694 and 13,788,540 shares outstanding as of September 30, 2016 and December 31, 2015, respectively 14 14
Additional paid-in capital 153,562 147,646
Treasury stock, at cost; 875,621 shares as of September 30, 2016 and December 31, 2015 (10,039) (10,039)
Accumulated other comprehensive loss (212) (172)
Accumulated deficit (159,765) (147,517)
TOTAL STOCKHOLDERS' DEFICIT (16,440) (10,068)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 38,335 $ 63,781
v3.5.0.2
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Income Statement [Abstract]        
Revenue, net $ 30,694 $ 33,982 $ 106,473 $ 125,780
Cost of revenue [1] 20,497 23,512 70,377 83,428
Gross profit 10,197 10,470 36,096 42,352
Operating expenses:        
Advertising and promotion 1,905 7,093 8,878 22,603
Salaries and benefits 2,291 5,681 15,203 20,505
Selling, general and administrative 3,937 4,647 12,604 14,730
Research and development 270 1,437 1,664 3,323
Professional fees 1,315 1,980 4,445 5,499
Restructuring and other charges 1,667 16,650 (2,579) 16,650
Impairment of assets 137 0 4,450 0
Total operating expenses 11,522 37,488 44,665 83,310
Loss from operations (1,325) (27,018) (8,569) (40,958)
Loss on sale of subsidiary 0 0 (2,115) 0
Other expense, net (122) (559) (1,426) (1,090)
Loss before provision for income taxes (1,447) (27,577) (12,110) (42,048)
Provision for income taxes 0 71 138 104
Net loss $ (1,447) $ (27,648) $ (12,248) $ (42,152)
Net loss per share, basic and diluted $ (0.10) $ (2.01) $ (0.88) $ (3.12)
Weighted average shares used to compute net loss per share, basic and diluted 13,978,833 13,723,213 13,886,496 13,504,455
[1] Cost of revenue for the three and nine months ended September 30, 2016 included restructuring charges of $0.1 million and $2.3 million, respectively, related to write-down of inventory for discontinued products. Cost of revenue for the three and nine months ended September 30, 2015 included restructuring charges of $1.3 million, respectively, related to write-down of inventory for discontinued products.
v3.5.0.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (12,248) $ (42,152)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Depreciation of property and equipment 1,162 1,330
Amortization of intangible assets 496 776
Provision for doubtful accounts 234 168
Loss on disposal of property and equipment 122 32
Loss on sale of subsidiary 2,115 0
Non-cash impairment charges 4,380 0
Non-cash restructuring and other charges (reversals) (4,133) 8,430
Inventory write down related to restructuring 2,285 1,262
Amortization of prepaid stock compensation 938 3,198
Amortization of prepaid sponsorship and endorsement fees 0 5,363
Amortization of debt discount and issuance costs 36 29
Stock-based compensation 4,981 8,690
Issuance of common stock warrants to third parties for services 6 62
Changes in operating assets and liabilities:    
Accounts receivable 5,069 890
Inventory 59 487
Prepaid giveaways 243 727
Prepaid sponsorship and endorsement fees 0 (6,492)
Prepaid expenses and other current assets 1,186 (1,822)
Other assets (320) (77)
Accounts payable and accrued liabilities (4,908) 18,831
Accrued restructuring charges (2,189) 7,977
Net cash (used in) provided by operating activities (486) 7,709
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of property and equipment (459) (1,251)
Proceeds from disposal of property and equipment 40 447
Proceeds from sale of subsidiary 5,942 0
Purchase of MusclePharm Apparel Rights 0 (850)
Trademark registrations (154) (262)
Investment in contract manufacturer 0 (977)
Net cash provided by (used in) investing activities 5,369 (2,893)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from line of credit 0 9,142
Payments on line of credit (3,000) (14,507)
Repayments of term loan (2,949) (731)
Proceeds from issuance of term loan 0 4,000
Issuance costs of term loan 0 (40)
Proceeds from secured borrowing arrangement, net of reserves 39,412 0
Payments on secured borrowing arrangement, net of fees (39,412) 0
Repayments of other debt obligations (10) (25)
Repayment of capital lease obligations (90) (113)
Net cash provided by financing activities (6,049) (2,274)
Effect of exchange rate changes on cash (21) (105)
NET INCREASE IN CASH (1,187) 2,437
CASH - BEGINNING OF PERIOD 7,081 1,020
CASH - END OF PERIOD 5,894 3,457
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Cash paid for interest 1,186 384
Cash paid for taxes 206 57
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Shares of common stock issued in conjunction with BioZone disposition 640 0
Shares of common stock issued in conjunction with MusclePharm Apparel rights acquisition 0 1,394
Property and equipment acquired in conjunction with capital leases 24 423
Purchase of property and equipment included in accounts payable and accrued liabilities 43 148
Trademark registration included in accounts payable and accrued liabilities 0 100
Bio Zone [Member]    
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Loss on sale of subsidiary 2,115  
Changes in operating assets and liabilities:    
Inventory (1,800)  
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Shares of common stock issued in conjunction with BioZone disposition $ 640  
Muscle Pharm Apparel [Member]    
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Shares of common stock issued in conjunction with MusclePharm Apparel rights acquisition   $ 1,394

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