DENVER, July 12, 2012 /PRNewswire/ -- MusclePharm Corporation (OTCBB: MSLP), a nutritional supplement company focusing on active lifestyles, today announced that three of its senior executives have voluntarily agreed to return stock and cash bonuses received for 2011 and have relinquished 2012 bonus accruals associated with their existing employment agreements. The 2011 bonuses were based in part on revenue growth that the company determined recently had been incorrectly calculated.
In May 2012, MusclePharm, along with its auditors, revised the methodology for accruing revenues to more accurately portray the company's operations. Following the revision, gross revenues were restated downward for certain prior periods, including the year ended December 31, 2011. The three executives have volunteered to reduce both the cash and share amounts awarded for 2011 based on the restated revenue amounts, as well giving up such bonuses accrued for 2012. In total for 2011, the executives are returning 79,071,984 shares of MusclePharm common stock and giving back cash bonuses aggregating $90,000. No other executives received or were entitled to any such bonuses.
John Bluher, Chief Operating Officer of MusclePharm, said, "These prompt and voluntary actions demonstrate our officers' commitment to the company. We will be seating a reconstituted board very soon and will seek in the near term to enter into new compensation agreements with all of our executive officers, subject to review and approval by independent board members. The new contracts are expected to align executive compensation at the company with growth of our margins and net income."
ABOUT MUSCLEPHARM CORPORATION
MusclePharm is a healthy life-style company that develops and manufactures a full line of Informed Choice approved nutritional supplements that are free of banned substances. Utilizing years of research at the MusclePharm Sports Science Center, the products are created through a six-stage research protocol involving the expertise of top nutritional scientists and field tested using a pool of over one hundred elite professional athletes from various professional sports leagues including the National Football League, Mixed Martial Arts and Major League Baseball. The company's products address many categories of active lifestyles, including muscle building, weight loss and maintaining general fitness through a daily nutritional supplement regimen. MusclePharm products are sold to consumers in more than 120 countries and available in over 10,000 U.S. retail outlets, including Dick's Sporting Goods, GNC, Vitamin Shoppe, Vitamin World and Wal-Mart. MusclePharm products also are sold through more than 100 online stores globally, including bodybuilding.com, Amazon.com and Vitacost.com. For more information, please visit www.musclepharm.com.
FORWARD LOOKING STATEMENTS
Certain information contained herein includes forward-looking statements. These statements include, but are not limited to, executing new executive compensation agreements in the near future, along with other known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Undue reliance should not be placed on forward-looking statements, since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the company's control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. Readers are encouraged to read the company's reports filed with the SEC, including its Form 10-K/A for the year ended December 31, 2011, for a description of these uncertainties. MusclePharm assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
For more information, contact:
Roger Pondel/Robert Jaffe
SOURCE MusclePharm Corporation