I am no expert when it comes to wading through SEC filings, but I've started the process. There are certainly a few things I don't like.
- Consistent with posts from troll shortie*, the filing shows a loss from operations for Q1 of $721K, not a profit of $2.8M. This is presumably explained by different treatment of a roughly $3.5M charge which I BELIEVE is non-recurring, so I'm not overly concerned.
- Management has granted itself 1,550,000 shares of stock vesting (fully) on Dec 31, 2015. That's $17M based on Friday's closing price and roughly 17% of the company based on current fully-diluted share count. I believe they will be GIVEN these shares at no cost, regardless of stock performance. Which sucks. If our hopes are realized, and MSLP is trading at $40 or $50 in two and a half years, they will have given themselves between $60M and $70M. I'll obviously be very happy if MSLP reaches $40 or $50. But if this is intended as compensation for the MINOR pay cuts management seems to have taken, it seems a little excessive. And by "a little", I mean "a very lot".
- The two top guys own all 51 shares of a magical class of shares that - I BELIEVE - will ALWAYS have 51% of voting rights, regardless of how many common shares are outstanding. Thus they can choose to grant management shares of stock amounting to ANOTHER 17% (or 14%, or 35%, or 72%...) of the company. I don't know if they WILL do this, but the fact that they CAN is pretty frightening.
I'm all for company founders getting rich, even REAL rich, when their company hits it big. But usually management gets lots of shares when its future success is uncertain, NOT by giving itself 17% of the company once success seems assured.